Dreyfus Premier
Core Value Fund
ANNUAL REPORT December 31, 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 Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. 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 Fund Performance
8 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
17 Financial Highlights
23 Notes to Financial Statements
29 Independent Auditors' Report
30 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Premier Core Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Core Value
Fund, covering the 12-month period from January 1, 1999 through December 31,
1999. Inside, you'll find valuable information about how the fund was managed,
including a discussion with the fund's portfolio manager, Valerie J. Sill.
The past year has been both highly volatile and rewarding for many investors in
U.S. stocks. On December 31, the last trading day of 1999, most major stock
market indices hit new highs, including the Dow Jones Industrial Average, the S&
P 500 Index of large-cap stocks, the technology-heavy Nasdaq 100 and the Russell
2000 Index of small-capitalization stocks.
These simultaneous highs masked the remarkable narrowness of the stock market's
advance in 1999, however. Following the trend established over the past several
years, growth-oriented stocks handily outperformed value-oriented stocks.
Indeed, until a more broad-based rally in the fourth quarter, stellar
performance was generally limited to a handful of highly valued technology and
telecommunications companies. In our view, many fundamentally sound companies in
other market sectors may be selling at attractive valuations.
We appreciate your confidence over the past year, 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
January 14, 2000
DISCUSSION OF FUND PERFORMANCE
Valerie J. Sill, Portfolio Manager
How did Dreyfus Premier Core Value Fund perform relative to its benchmark?
For the 12-month period ended December 31, 1999, Dreyfus Premier Core Value Fund
produced a total return of 17.29% for its Class A shares, 16.37% for its Class B
shares, 16.41% for its Class C shares, 17.41% for its Institutional shares and
17.59% for its Class R shares.(1) In comparison, the Standard & Poor's
500((reg.tm) ) Composite Stock Price Index ("S&P 500 Index") produced a total
return of 21.03% and the Standard & Poor's 500/BARRA Value Index produced a
total return of 12.72% for the same period.(2
For the period from its August 16, 1999 inception through December 31, 1999, the
fund's Class T shares produced a total return of 4.10%.(1)
Generally speaking, the growth style of investing outperformed the value style
during 1999, and that is the primary reason why the fund underperformed the S&P
500 Index, which contains a high percentage of growth stocks. However, the fund
significantly outperformed the S& P 500/BARRA Value Index, a measure of value
stocks.
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, focusing 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.
What other factors influenced performance?
The stock market ended 1999 at record levels, having nearly quadrupled during
the decade. To be sure, the overall bull market for stocks was a major influence
on our results for the period. However, much
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
of the market's performance was dominated by the growth style of investing,
while the value style generally lagged.
Last spring, it appeared as if value investing would dominate in terms of
performance. As the global recovery took hold, value stocks, which had been
depressed, staged an impressive albeit short-lived rally. The value rally was
cut short when inflation fears resurfaced after years on the sidelines,
prompting the Federal Reserve Board (the "Fed") to shift towards a policy of
higher interest rates. In such an environment, value stocks, such as banks,
began to perform poorly as their profit margins were squeezed. And economically
cyclical stocks, another value category, began to retreat over concern that the
Fed's stance would slow the economy.
Investors turned their attention back to technology companies, particularly
Internet-related shares, whose growth was not dependent on the economy's
fortunes. Other strong groups included energy, which benefited from soaring oil
prices, and stock brokerage firms, which generated enormous trading volume from
the bull market.
Our quantitative screening process identified many economically cyclical stocks
at the beginning of 1999 that were attractively valued at the time. Examples
include: duPont (E.I.) de Nemours, which has benefited from improving chemical
prices, and Dow Chemical, which is expected to generate efficiencies after it
combines with Union Carbide.
We also have been investing in more typical value industries, such as energy,
which was a strong performer during 1999 as oil prices rebounded from $10 to
reach $25 per barrel. The portfolio's investment in Mobil benefited from Mobil's
merger with Exxon, a combination that is likely to generate tremendous cost
savings.
What is the fund's current strategy?
Our current strategy is to continue to search for value in all industries
- -- including such hot areas of the market as telecommunications and technology,
which are normally associated exclusively with growth investing. Two of the
fund's strongest performers during 1999 were Sun Microsystems and Nortel
Networks, both of which appeared undervalued when they were originally
purchased. Sun Microsystems is a company that is helping build the
infrastructure of the Internet. Nortel Networks is a leading manufacturer of
telecommunications equipment. In addition, we still see Hewlett-Packard as a
value stock because it is trading at a low price-earnings multiple compared to
other technology companies.
As of the end of the period, we saw significant value in the pharmaceutical
sector, where we believe investors overreacted to Congressional debate over the
expansion of Medicare to cover prescription drugs. The drug companies continue
to introduce an impressive array of new products while generating strong
earnings growth.
In short, we believe that the portfolio continues to hold stocks that are
undervalued -- and that these companies have catalysts in place that have the
potential to unlock strong performance.
January 14, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN
THE CASE OF CLASS A OR CLASS T SHARES, OR THE APPLICABLE CONTINGENT
DEFERRED SALES CHARGES 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((reg.tm)) 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 & POOR'S 500((reg.tm)) COMPOSITE PRICE INDEX THAT HAVE LOW
PRICE-TO-BOOK RATIOS.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Core
Value Fund Class A shares with the Standard & Poor's 500 Composite Stock Price
Index and the Standard & Poor's 500 Barra Value Index
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES OF DREYFUS
PREMIER CORE VALUE FUND ON 12/31/89 TO A $10,000 INVESTMENT MADE ON THAT DATE IN
THE STANDARD & POOR'S 500 BARRA VALUE INDEX AND THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX ("S&P 500""). ALL DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS B, CLASS C, CLASS R, CLASS T
AND INSTITUTIONAL SHARES WILL VARY FROM THE PERFORMANCE OF CLASS A SHARES SHOWN
ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM
INITIAL SALES CHARGE ON CLASS A SHARES AND ALL OTHER APPLICABLE FEES AND
EXPENSES. THIS IS THE FIRST YEAR IN WHICH COMPARATIVE PERFORMANCE IS BEING SHOWN
FOR THE STANDARD & POOR'S 500 BARRA VALUE INDEX, WHICH HAS BEEN SELECTED AS THE
PRIMARY INDEX FOR COMPARING THE FUND'S PERFORMANCE BASED ON THE FUND'S AND THE
INDEX'S VALUE ORIENTATION. THE STANDARD & POOR'S 500 BARRA VALUE INDEX IS A
CAPITALIZATION-WEIGHTED INDEX OF ALL THE STOCKS IN THE S&P 500 THAT HAVE LOW
PRICE-TO-BOOK RATIOS. THE S&P 500 IS A WIDELY ACCEPTED, UNMANAGED INDEX OF U.S.
STOCK MARKET PERFORMANCE. PERFORMANCE FOR THIS INDEX WILL NOT BE PROVIDED WITH
THE NEXT ANNUAL REPORT, BUT IS PROVIDED HEREWITH PURSUANT TO APPLICABLE
REGULATIONS.
NEITHER OF THE FOREGOING INDICES TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
Average Annual Total Returns AS OF 12/31/99
<TABLE>
Inception From
Date 1 Year 5 Years 10 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A SHARES
WITH SALES CHARGE (5.75%) 2/6/47 10.56% 19.52% 12.18% --
WITHOUT SALES CHARGE 2/6/47 17.29% 20.95% 12.84% --
CLASS B SHARES
WITH REDEMPTION* 1/16/98 12.37% -- -- 11.73%
WITHOUT REDEMPTION 1/16/98 16.37% -- -- 13.55%
CLASS C SHARES
WITH REDEMPTION** 1/16/98 15.41% -- -- 13.57%
WITHOUT REDEMPTION 1/16/98 16.41% -- -- 13.57%
CLASS R SHARES 8/4/94 17.59% 21.21% -- 18.94%
INSTITUTIONAL SHARES 2/1/93 17.41% 21.06% -- 17.17%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Actual Aggregate Total Returns AS OF 12/31/99
<TABLE>
Inception From
Date 1 Year 5 Years 10 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS T SHARES
WITH SALES CHARGE (4.5%) 8/16/99 -- -- -- (0.58)%
WITHOUT SALES CHARGE 8/16/99 -- -- -- 4.10%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%
AND IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES
CONVERT TO CLASS A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
December 31, 1999
COMMON STOCKS--96.4% Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE & DEFENSE--.5%
Boeing 83,600 3,474,625
British Aerospace 83 550
3,475,175
APPLIANCES--2.6%
Koninklijke (Royal) Philips Electronics, ADR 127,782 17,250,570
BANKING--2.0%
Bank of America 268,086 13,454,566
Barclays 20 576
Dexia 461 (a) 73,917
Dexia, Strips 461 (a) 9
Kookmin Bank, ADS 328 (b) 4,764
13,533,832
BASIC INDUSTRIES--5.9%
Dow Chemical 82,400 11,010,700
duPont(EI)deNemours 222,144 14,633,736
Georgia--Pacific 141,700 7,191,275
Union Carbide 89,900 6,000,825
38,836,536
BEVERAGES & TOBACCO--1.3%
Philip Morris Cos. 376,900 8,739,369
CAPITAL GOODS--6.5%
Caterpillar 70,000 3,294,375
Deere 79,000 3,426,625
Delphi Automotive Systems 351,100 5,529,825
Eaton 47,600 3,456,950
Ingersoll-Rand 65,700 3,617,606
Tyco International 90,200 3,506,525
United Technologies 225,300 14,644,500
Waste Management 330,112 5,673,800
43,150,206
CONSUMER DURABLES--1.0%
Ford Motor 125,000 6,679,688
CONSUMER NON-DURABLES--3.1%
Kimberly-Clark 157,200 10,257,300
NIKE, Cl. B 169,300 8,390,931
Tommy Hilfiger 67,200 (a) 1,566,600
20,214,831
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES--8.0%
Abercrombie & Fitch, Cl. A 2 (a) 53
Cendant 202,400 (a) 5,376,250
Disney (Walt) 488,100 14,276,925
Federated Department Stores 193,700 (a) 9,793,956
First Data 294,500 14,522,531
Kmart 201,900 (a) 2,031,619
TJX Cos. 108,100 2,209,294
Tricon Global Restaurants 130,400 (a) 5,036,700
53,247,328
ENERGY--10.8%
Coastal 93,900 3,327,581
Conoco, Cl. B 581,420 14,462,827
Exxon Mobil 252,516 20,343,328
Schlumberger 133,700 7,520,625
Texaco 234,250 12,722,703
Tosco 225,000 6,117,188
Total Fina, ADR 1,608 111,354
Transocean Sedco Forex 117,384 3,954,384
Unocal 94,000 3,154,875
71,714,865
FINANCIAL SERVICES--21.1%
Aetna 34,900 1,947,856
Allmerica Financial 52,900 2,942,563
Allstate 2,900 69,600
American General 64,100 4,863,587
American International Group 196,762 21,274,891
Astoria Financial 81,300 2,474,569
Beni Stabili 2,508 (a) 884
Chase Manhattan 189,900 14,752,856
Citigroup 429,700 23,875,206
Federal National Mortgage Association 147,800 9,228,263
FleetBoston Financial 402,747 14,020,630
Golden State Bancorp 326,500 (a) 5,632,125
Goldman Sachs Group 83,400 7,855,237
Marsh & McLennan 79,300 7,588,019
Morgan Stanley Dean Witter 83,300 11,891,075
Nichiei 80 1,738
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES (CONTINUED)
Washington Mutual 88,986 2,313,636
Wells Fargo 235,600 9,527,075
140,259,810
FOODS & RELATED PRODUCTS--.0%
Goodman Fielder 571 509
HEALTH CARE--8.1%
Abbott Laboratories 493,300 17,912,956
American Home Products 310,700 12,253,231
Columbia/HCA Healthcare 378,200 11,085,988
Medeva 229 643
Pharmacia & Upjohn 198,300 8,923,500
Wellpoint Health Networks 56,000 (a) 3,692,500
53,868,818
INSURANCE--.9%
CIGNA 70,200 5,655,487
Royal & Sun Alliance Insurance 268 2,041
5,657,528
MERCHANDISING--.4%
Toys R Us 187,200 (a) 2,679,300
METALS--.0%
China Steel, ADR 7 (b) 110
MULTI INDUSTRY--.0%
First Philippine Holdings 8,400 7,191
TECHNOLOGY--14.5%
Cabletron Systems 240,300 (a) 6,247,800
Computer Associates International 161,400 11,287,912
Computer Sciences 43,700 (a) 4,135,112
Compuware 151,400 (a) 5,639,650
Electronic Data Systems 158,200 10,589,513
Hewlett-Packard 118,800 13,535,775
International Business Machines 71,600 7,732,800
Motorola 93,800 13,812,050
Nortel Networks 101,300 10,231,300
Novell 153,300 (a) 6,122,419
Sun Microsystems 91,200 (a) 7,062,300
96,396,631
TELECOMMUNICATIONS--.0%
SK Telecom 3 10,753
SK Telecom, ADR 278 10,672
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS (CONTINUED)
Telefonos de Mexico, ADR 246 27,675
49,100
TRANSPORTATION--1.8%
British Airways 1 7
Southwest Airlines 175,900 2,847,381
Union Pacific 216,300 9,436,088
12,283,476
UTILITIES--7.9%
AT&T 1 51
Bell Atlantic 1,200 73,875
CMS Energy 76,500 2,385,844
Duke Energy 202,000 10,125,250
Edison International 160,700 4,208,331
GTE 149,400 10,542,038
MCI WorldCom 183,600 (a) 9,742,275
SBC Communications 183,900 8,965,125
ScottishPower, ADR 216,746 6,068,888
52,111,677
TOTAL COMMON STOCKS
(cost $544,134,081) 640,156,550
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PREFERRED STOCKS--2.0%
- ------------------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS;
News, ADR
(cost $6,332,904) 393,900 13,171,031
- ------------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--1.5% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER;
Associates Corporation of North America,
4%, 1/3/00
(cost $10,070,000) 10,070,000 10,070,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $560,536,985) 99.9% 663,397,581
CASH AND RECEIVABLES (NET) .1% 730,464
NET ASSETS 100.0% 664,128,045
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 INSTITITIONAL BUYERS. AT DECEMBER 31,
1999, THESE SECURITIES AMOUNTED TO $4,874.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 560,536,985 663,397,581
Cash 999,456
Dividends and interest receivable 797,507
Receivable for shares of Beneficial Interest subscribed 388,300
665,582,844
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 627,000
Due to Distributor 11,299
Payable for shares of Beneficial Interest redeemed 815,500
Loan commitment fees payable--Note 4 1,000
1,454,799
- --------------------------------------------------------------------------------
NET ASSETS ($) 664,128,045
- --------------------------------------------------------------------------------
COMPOSITON OF NET ASSETS ($):
Paid-in capital 546,650,944
Accumulated undistributed investment income-net 296,213
Accumulated net realized gain (loss) on investments
and foreign currency transactions 14,321,057
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 102,859,831
- --------------------------------------------------------------------------------
NET ASSETS ($) 664,128,045
NET ASSET VALUE PER SHARE
<TABLE>
Class A Class B Class C Class R Institutional Class T
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 590,129,160 6,792,001 1,192,215 884,863 65,111,476 18,330
Shares Outstanding 19,138,842 221,698 38,909 28,706 2,113,197 594.317
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 30.83 30.64 30.64 30.82 30.81 30.84
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $90,186 foreign taxes withheld at source) 9,435,374
Interest 696,375
TOTAL INCOME 10,131,749
EXPENSES:
Management fee--Note 2(a) 5,855,197
Distribution and service fees--Note 2(b) 1,589,977
Loan commitment fees--Note 4 5,365
TOTAL EXPENSES 7,450,539
INVESTMENT INCOME--NET 2,681,210
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 3 ($):
Net realized gain (loss) on investments and
foreign currency transactions 73,579,706
Net realized gain (loss) on forward currency
exchange contracts (10,047)
NET REALIZED GAIN (LOSS) 73,569,659
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions 25,962,579
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 99,532,238
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 102,213,448
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
------------------------------
1999(b) 1998(a)
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 2,681,210 4,095,836
Net realized gain (loss) on investments 73,569,659 48,836,827
Net unrealized appreciation (depreciation)
on investments 25,962,579 (8,172,759)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 102,213,448 44,759,904
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
From investment income--net:
Class A shares (2,263,666) (3,168,010)
Class B shares - (377)
Class C shares - (52)
Class R shares (5,230) (6,978)
Institutional shares (342,052) (528,055)
Class T shares (7) -
From net realized gain on investments:
Class A shares (57,683,237) (51,737,780)
Class B shares (578,477) (143,476)
Class C shares (101,695) (15,130)
Class R shares (83,515) (78,806)
Institutional shares (6,349,211) (6,909,155)
Class T shares (999) -
TOTAL DIVIDENDS (67,408,089) (62,587,819)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 125,569,592 95,520,325
Class B shares 5,359,943 2,307,043
Class C shares 1,594,686 235,931
Class R shares 318,525 276,835
Institutional shares 7,236,827 6,947,289
Class T shares 18,242 -
Year Ended December 31,
------------------------------
1999(b) 1998(a)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($) (CONTINUED):
Dividends reinvested:
Class A shares 51,250,587 45,635,415
Class B shares 461,361 113,872
Class C shares 60,348 10,479
Class R shares 88,719 85,711
Institutional shares 6,550,537 7,196,240
Class T shares 1,006 -
Cost of shares redeemed:
Class A shares (173,863,271) (155,282,068)
Class B shares (964,803) (236,332)
Class C shares (603,822) (34,016)
Class R shares (411,172) (363,657)
Institutional shares (26,333,926) (18,513,042)
Class T shares (462) -
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (3,667,083) (16,099,975)
TOTAL INCREASE (DECREASE) IN NET ASSETS 31,138,276 (33,927,890)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 632,989,769 666,917,659
END OF PERIOD 664,128,045 632,989,769
Undistributed investment income--net 296,213 225,958
(A) 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.
(B) FROM AUGUST 16, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO DECEMBER
31, 1999 FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (continued)
Year Ended December 31,
-----------------------------
1999(b) 1998(a)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 3,919,514 3,027,578
Shares issued for dividends reinvested 1,710,386 1,522,707
Shares redeemed (5,490,601) (4,997,829)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 139,299 (447,544)
- --------------------------------------------------------------------------------
CLASS B
Shares sold 167,221 73,785
Shares issued for dividends reinvested 15,532 3,915
Shares redeemed (30,690) (8,065)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 152,063 69,635
- --------------------------------------------------------------------------------
CLASS C
Shares sold 48,625 7,514
Shares issued for dividends reinvested 2,032 358
Shares redeemed (18,428) (1,192)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 32,229 6,680
- --------------------------------------------------------------------------------
CLASS R
Shares sold 10,421 9,127
Shares issued for dividends reinvested 2,960 2,869
Shares redeemed (13,453) (12,007)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (72) (11)
- --------------------------------------------------------------------------------
INSTITUTIONAL SHARES
Shares sold 223,113 232,611
Shares issued for dividends reinvested 218,558 240,213
Shares redeemed (861,568) (611,875)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (419,897) (139,051)
- --------------------------------------------------------------------------------
CLASS T
Shares sold 576 -
Shares issued for dividends reinvested 34 -
Shares redeemed (16) -
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 594 -
(A) 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.
(B) FROM AUGUST 16, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO DECEMBER
31, 1999 FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
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>
Year Ended December 31,
-------------------------------------------------------------------
CLASS A SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 29.26 30.11 30.40 30.13 24.56
Investment Operations:
Investment income-net .13(a) .19 .22 .31 .41
Net realized and unrealized gain (loss)
on investments 4.78 1.95 6.98 6.03 8.24
Total from Investment Operations 4.91 2.14 7.20 6.34 8.65
Distributions:
Dividends from investment income-net (.13) (.17) (.23) (.30) (.45)
Dividends in excess of
investment income--net -- -- (.01) -- --
Dividends from net realized
gain on investments (3.21) (2.82) (7.25) (5.77) (2.63)
Total Distributions (3.34) (2.99) (7.49) (6.07) (3.08)
Net asset value, end of period 30.83 29.26 30.11 30.40 30.13
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 17.29(b) 7.06(b) 25.21 21.44 35.56
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.15 1.15 1.14 1.13 1.13
Ratio of net investment income
to average net assets .41 .61 .64 .96 1.43
Decrease reflected in above expense ratios
due to undertakings
by The Dreyfus Corporation -- -- .01 .02 .02
Portfolio Turnover Rate 91.22 84.32 92.99 88.46 54.42
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 590,129 555,863 585,624 486,816 401,674
A BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
B EXCLUSIVE OF SALES CHARGE.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (continued)
Year Ended December 31,
-----------------------
CLASS B SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 29.19 29.04
Investment Operations:
Investment income-net
Investment (loss) (.10)(b) (.02)
Net realized and unrealized gain (loss)
on investments 4.76 3.00
Total from Investment Operations 4.66 2.98
Distributions:
Dividends from investment income-net - (.01)
Dividends from net realized gain on investments (3.21) (2.82)
Total Distributions (3.21) (2.83)
Net asset value, end of period 30.64 29.19
- -------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 16.37 10.24(d)
- -------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%)
Ratio of expenses to average net assets 1.90 1.82(d)
Ratio of net investment income (loss)
to average net assets (.33) (.14)(d)
Portfolio Turnover Rate 91.22 84.32
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 6,792 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.
Year Ended December 31,
------------------------
CLASS C SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 29.19 29.04
Investment Operations:
Investment (loss) (.11)(b) (.02)
Net realized and unrealized gain (loss)
on investments 4.77 3.00
Total from Investment Operations 4.66 2.98
Distributions:
Dividends from investment income-net - (.01)
Dividends from net realized gain on investments (3.21) (2.82)
Total Distributions (3.21) (2.83)
Net asset value, end of period 30.64 29.19
- -----------------------------------------------------------------------------
TOTAL RETURN (%)( C) 16.41 10.24(d)
- -----------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%)
Ratio of expenses to average net assets 1.90 1.82(d)
Ratio of net investment income (loss)
to average net assets (.35) (.13)(d)
Portfolio Turnover Rate 91.22 84.32
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1,192 195
(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
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
Year Ended December 31,
--------------------------------------------------------------------
CLASS R SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 29.25 30.11 30.46 30.18 24.56
Investment Operations:
Investment income-net .20(a) .26 .33(a) .36 .62
Net realized and unrealized gain (loss)
on investments 4.79 1.95 6.90 6.08 8.16
Total from Investment Operations 4.99 2.21 7.23 6.44 8.78
Distributions:
Dividends from investment income-net (.21) (.25) (.32) (.39) (.53)
Dividends in excess of investment income--net -- -- (.01) -- --
Dividends from net realized gain
on investments (3.21) (2.82) (7.25) (5.77) (2.63)
Total Distributions (3.42) (3.07) (7.58) (6.16) (3.16)
Net asset value, end of period 30.82 29.25 30.11 30.46 30.18
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 17.59 7.01 25.54 21.74 36.05
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .90 .90 .89 .88 .88
Ratio of net investment income
to average net assets .65 .82 .88 1.23 1.93
Decrease reflected in above expense ratios
due to undertakings
by The Dreyfus Corporation -- -- .01 .02 .02
Portfolio Turnover Rate 91.22 84.32 92.99 88.46 54.42
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 885 842 867 11,618 185
A BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended December 31,
-------------------------------------------------------------------
INSTITUTIONAL SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 29.24 30.10 30.38 30.12 24.56
Investment Operations:
Investment income-net .16(a) .22 .26 .36 .47
Net realized and unrealized gain (loss)
on investments 4.78 1.95 6.98 6.01 8.20
Total from Investment Operations 4.94 2.17 7.24 6.37 8.67
Distributions:
Dividends from investment income-net (.16) (.21) (.26) (.34) (.48)
Dividends in excess of
investment income--net -- -- (.01) -- --
Dividends from net realized
gain on investments (3.21) (2.82) (7.25) (5.77) (2.63)
Total Distributions (3.37) (3.03) (7.52) (6.11) (3.11)
Net asset value, end of period 30.81 29.24 30.10 30.38 30.12
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 17.41 7.17 25.34 21.57 35.60
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05 1.05 1.04 1.03 1.03
Ratio of net investment income
to average net assets .50 .71 .74 1.07 1.53
Decrease reflected in above expense ratios
due to undertakings
by The Dreyfus Corporation -- -- .01 .02 .02
Portfolio Turnover Rate 91.22 84.32 92.99 88.46 54.42
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 65,111 74,058 80,427 71,894 75,607
A BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (continued)
Year Ended
CLASS T SHARES December 31, 1999(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 32.45
Investment Operations:
Investment income-net .01(b)
Net realized and unrealized gain (loss)
on investments 1.23
Total from Investment Operations 1.24
Distributions:
Dividends from investment income-net (.02)
Dividends from net realized gain on investments (2.83)
Total Distributions (2.85)
Net asset value, end of period 30.84
- --------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 4.10(d)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .53(d)
Ratio of net investment income
to average net assets .05(d)
Portfolio Turnover Rate 91.22
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 18
(A) FROM AUGUST 16, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO DECEMBER 31,
1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - Significant Accounting Policies:
Dreyfus Premier Core Value Fund (the "fund") is a separate diversified series of
The Dreyfus/Laurel Funds Trust (the "trust" ) which is registered under the
Investment Company Act of 1940, as amended (the "Act" ), as an open-end
management investment company and operates as a series company currently
offering three series including the fund. The fund's investment objective is to
seek long-term growth of capital and current income. The Dreyfus Corporation
(the "Manager") serves as the fund's investment manager. The Manager is a direct
subsidiary of Mellon Bank, N.A. (" Mellon Bank" ), which is a wholly-owned
subsidiary of Mellon Financial Corporation.
On July 29, 1999, the Board of Trustees approved the addition of Class T shares,
which became effective August 16, 1999.
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, Class T and Institutional shares. Class A, Class B, Class C and
Class T shares are sold primarily to retail investors through financial
intermediaries and bear a distribution fee and/or service fee. Class A and Class
T shares are subject to a sales charge, while Class B and Class C shares are
subject to a contingent deferred sales charge ("CDSC"). Class B and Class C
shares bear 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. 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (continued)
Investment income, net of expenses (other than class specific expenses) and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued at the last sales
price on the securities exchange on which such securities are primarily traded
or at the last sales price on the national securities market. Securities not
listed on an exchange or the national securities market, or securities for which
there were no transactions, are valued at the average of the most recent bid and
asked prices. Bid price is used when no asked price is available. Securities for
which there are no such valuations are valued at fair value as determined in
good faith under the direction of the Board of Trustees. Investments denominated
in foreign currencies are translated to U.S. dollars at the prevailing rates of
exchange. Forward currency exchange contracts are valued at the forward rate.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.
(c) Foreign currency transactions: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in the market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency gains
or losses realized on securities transactions and the difference between the
amount of dividends, interest, and foreign withholding taxes recorded on the
fund' s books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities, resulting
from changes in exchange rates. Such gains and losses are included with net
realized and unrealized gain or loss on investments.
(d) Forward currency exchange contracts: The fund enters into forward currency
exchange contracts in order to hedge its exposure to changes in foreign currency
exchange rates on its foreign portfolio holdings and to settle foreign currency
transactions. When executing forward currency exchange contracts, the fund is
obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The fund realizes a gain if the value of the
contract increases between those dates. The fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract. At December 31, 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
The Fund
NOTES TO FINANCIAL STATEMENTS (continued)
" Code"). To the extent that net realized capital gain can be offset by capital
loss carryovers, if any, it is the policy of the fund not to distribute such
gain.
(f) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2 -Investment Management Fee and Other Transactions With Affiliates:
(a) Investment management fee: Pursuant to an Investment Management
agreement with the Manager, the Manager provides or arranges for one or more
third parties and/or affiliates to provide investment advisory, administrative,
custody, fund accounting and transfer agency services to the fund. The Manager
also directs the 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 fees). 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 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
$37,337 during the period ended December 31, 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% and .15%, 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, Class C and Class T
shares pay the Distributor for distributing their shares at an annual aggregate
rate of .75% of the value of the average daily net assets of Class B and Class C
shares and .25% of the value of average daily net assets of Class T shares. The
Distributor may pay one or more agents in respect of advertising, marketing and
other distribution services for Class T shares and determines the amounts, if
any, to be paid to agents and the basis on which such payments are made. Class
B, Class C and Class T shares are also subject to a Service Plan adopted
pursuant to Rule 12b-1, under which Class B, Class C and Class T shares pay
Dreyfus Service Corporation or the Distributor for providing certain services to
the holders of Class B, Class C and Class T shares a fee at the annual rate of
. 25% of the value of the average daily net assets of Class B, Class C and Class
T shares. During the period ended December 31, 1999, Class The Fun
NOTES TO FINANCIAL STATEMENTS (continued)
A, Class B, Class C, Class T and Institutional shares were charged $1,436,785,
$29,790, $6,060, $7 and $105,379, respectively, pursuant to the Plan. During the
period ended December 31, 1999, Class B, Class C and Class T shares were charged
$9,929, $2,020 and $7, respectively, pursuant to the Service Plan.
Under its terms, the Plan and Service Plan shall remain in effect from year to
year, provided such continuance is approved annually by a vote of majority of
those Trustees who are not "interested persons" of the trust and who have no
direct or indirect financial interest in the operation of 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 December 31, 1999, amounted to $580,960,575 and $657,051,631,
respectively.
At December 31, 1999, accumulated net unrealized appreciation on investments was
$102,860,596, consisting of $130,791,055 gross unrealized appreciation and
$27,930,459 gross unrealized depreciation.
At December 31, 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 $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
December 31, 1999, the fund did not borrow under the Facility.
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders The Dreyfus/Laurel Funds Trust:
We have audited the accompanying statement of assets and liabilities of Dreyfus
Premier Core Value Fund of The Dreyfus/Laurel Funds Trust, including the
statement of investments, as of December 31, 1999, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
as of December 31, 1999, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Core Value Fund of The Dreyfus/Laurel Funds Trust as of December
31, 1999, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended, in
conformity with generally accepted accounting principles.
New York, New York
February 9, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes the fund hereby designates $1.5090 per share as a
long-term capital gain distribution paid on December 22, 1999 and also
designates $.2820 per share as a long-term capital gain distribution paid on
March 31, 1999
The fund also designates 40.24% of the ordinary dividends paid during the fiscal
year ended December 31, 1999 as qualifying for the corporate dividends received
deduction.
NOTES
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) 2000 Dreyfus Service Corporation 312AR9912
================================================================================
Dreyfus Premier
Limited Term
High Income Fund
ANNUAL REPORT December 31, 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 Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. 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 Fund Performance
8 Statement of Investments
16 Statement of Assets and Liabilities
17 Statement of Operations
18 Statement of Changes in Net Assets
20 Financial Highlights
22 Notes to Financial Statements
27 Independent Auditors' Report
28 Important Tax Information
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Limited Term High Income Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Limited Term
High Income Fund covering the 12-month period from January 1, 1999, through
December 31, 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 member of the Dreyfus Taxable Fixed Income Team.
The past year was challenging for most fixed-income investors. Faster than
expected economic growth in the U.S. and overseas fueled concerns that
long-dormant inflationary pressures might re-emerge, potentially reducing the
future value of bonds' interest and principal payments. These concerns prompted
the Federal Reserve Board to raise key short-term interest rates three times
during the summer and fall of 1999 in an attempt to prevent a reacceleration of
inflation.
While U.S. Treasury and agency securities declined sharply in this environment
during 1999, prices of higher yielding securities -- such as corporate bonds and
mortgage-backed securities -- fell less severely. In an environment of robust
economic growth, investors appeared more comfortable owning bonds that are
influenced primarily by credit risk, and they avoided securities that are most
affected by interest-rate risk.
We appreciate your confidence over the past year, 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
January 14, 2000
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 12-month period ended December 31, 1999, the fund achieved a total
return of 1.99% for Class A shares, 1.48% for Class B shares, 1.23% for Class C
shares and 2.24% for Class R shares.(1) This compares to a total return of 2.51%
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 index, the Dreyfus Customized Limited Term
High Yield Index, which produced a total return of 5.23% 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 performance primarily to our continuing efforts to
restructure the portfolio in order to improve credit quality. A significant
portion of our holdings are rated B or below. However, the market's strength was
concentrated in higher quality credits within the high yield market, as
investors generally avoided credit risk.
What is the fund's investment approach?
The fund seeks high current income by investing primarily in high yield,
fixed-income securities. We attempt to reduce interest-rate risk by maintaining
an effective average portfolio maturity of four years or less and an effective
average portfolio duration of three-and-one-half 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.
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 the early stages of development or
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
may have highly leveraged balance sheets. To compensate buyers for taking
greater credit risk, these bonds must offer higher yields than those offered by
investment-grade bonds.
Our investment approach is based on careful credit analysis. We thoroughly
analyze the business, management and financial strength of the companies whose
bonds we buy, and then project each issuer's ability to repay its debt.
What other factors influenced the fund's performance?
As 1999 began, it quickly became apparent that fears of economic weakness in
overseas markets were largely unfounded. The troubled economies of Japan and
Southeast Asia strengthened while the U.S. economy barreled ahead. In this
environment, the high yield market recovered from the steep drop it experienced
in late 1998, outperforming most other fixed-income market segments over the
first three months of 1999. Such recovery, however, proved short-lived as lack
of investor demand brought negative returns back to the high yield market.
Investor sentiment quickly shifted away from concerns that the economy might
slow to fears that it might grow too quickly. Concerned that unsustainable
economic growth might reignite inflationary pressures, the Federal Reserve Board
increased short-term interest rates three times during the summer and fall. In
response to these rate hikes, the fixed-income market experienced a general
decline.
A major force driving the decline was concern over year-end liquidity issues
during the transition from 1999 to 2000. In anticipation of Y2K-related problems
that ultimately proved to be overblown, investors stepped up redemptions of high
yield mutual funds, and fund managers sold securities in order to have more cash
on hand in anticipation of potential further redemptions. At the same time, many
institutional investors stopped buying and selling high yield securities,
further reducing liquidity. This created a market in which a large supply of
high yield issues was met with weak demand. In such a market, prices inevitably
decline.
Other factors have continued to put pressure on the high yield market. The
threat of higher interest rates has had a negative influence on investor
psychology throughout the entire bond market. Default rates have risen, as some
bonds issued in 1997 and 1998 have not met interest payments. While it is
difficult to quantify, many investors who have traditionally participated in the
high yield market appear to have lost interest, finding other types of
investments that they consider more appealing.
What is the fund's current strategy?
We have continued our efforts to restructure the portfolio to take better
advantage of market strengths and protect the portfolio from a potential
recurrence of market instability. First, we shortened the fund's effective
maturity and duration to keep cash available. Second, our focus on bonds rated
double-B has improved the fund's credit quality. Third, we have continued to
focus on defensive sectors -- such as broadcasting and entertainment -- that
historically do well in all economic environments. These steps are designed to
help us seek to provide shareholders with high levels of current income while at
the same time limiting exposure to broader market risks.
January 14, 2000
(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 CHARGES
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: BLOOMBERG L.P. -- THE MERRILL LYNCH HIGH YIELD MASTER II INDEX IS
AN UNMANAGED PERFORMANCE BENCHMARK COMPOSED OF U.S. DOMESTIC AND YANKEE BONDS
RATED BELOW INVESTMENT GRADE WITH AT LEAST $100 MILLION PAR AMOUNTS OUTSTANDING
AND GREATER THAN OR EQUAL TO ONE YEAR TO MATURITY. ALL DIVIDENDS AND CAPITAL
GAINS ARE REINVESTED.
(3) SOURCE: BLOOMBERG L.P. -- THE DREYFUS CUSTOMIZED LIMITED TERM HIGH YIELD
INDEX IS COMPOSED OF FOUR SUB-INDICES OF THE MERRILL LYNCH HIGH YIELD MASTER II
INDEX. 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." ALL DIVIDENDS AND CAPITAL GAINS
ARE REINVESTED.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Limited
Term High Income Fund Class A shares, Class B shares, Class C shares and Class R
shares with the Merrill Lynch High Yield Master II Index and a Customized
Limited Term High Yield Index
((+)) SOURCE: BLOOMBERG L.P.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE CLASS A, CLASS
B, CLASS C AND CLASS R SHARES OF DREYFUS PREMIER LIMITED TERM HIGH INCOME FUND
ON 6/2/97 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE ON THAT DATE IN TWO
DIFFERENT INDICES: (1) THE MERRILL LYNCH HIGH YIELD MASTER II INDEX AND (2) THE
CUSTOMIZED LIMITED TERM HIGH YIELD INDEX WHICH HAS BEEN CONSTRUCTED BY THE
DREYFUS CORPORATION. FOR COMPARATIVE PURPOSES, THE VALUES OF THE INDICES ON
5/31/97 ARE USED AS THE BEGINNING VALUES ON 6/2/97. ALL DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS ARE REINVESTED. THE CUSTOMIZED LIMITED TERM HIGH YIELD INDEX
IS CALCULATED ON A YEAR-TO-YEAR BASIS.
THE FUND SEEKS TO ACHIEVE ITS OBJECTIVE BY INVESTING IN LOWER RATED FIXED-INCOME
SECURITIES AND BY MAINTAINING AN EFFECTIVE AVERAGE PORTFOLIO MATURITY OF 4 YEARS
OR LESS AND AN EFFECTIVE AVERAGE DURATION OF 3.5 YEARS OR LESS. THE FUND'S
PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM INITIAL SALES
CHARGE ON CLASS A SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES CHARGES ON CLASS
B AND CLASS C SHARES AND ALL OTHER APPLICABLE FEES AND EXPENSES ON ALL CLASSES.
THE MERRILL LYNCH HIGH YIELD MASTER II INDEX IS AN UNMANAGED PERFORMANCE
BENCHMARK COMPOSED OF U.S. DOMESTIC AND YANKEE BONDS RATED BELOW INVESTMENT
GRADE WITH AT LEAST $100 MILLION PAR AMOUNTS OUTSTANDING AND GREATER THAN OR
EQUAL TO ONE YEAR TO MATURITY. BOTH INTEREST AND PRICE CHANGES ARE CALCULATED
DAILY BASED ON AN ACCRUED SCHEDULE AND TRADER PRICING. THE CUSTOMIZED LIMITED
TERM HIGH YIELD INDEX IS COMPOSED OF FOUR SUB-INDICES OF THE MERRILL LYNCH HIGH
YIELD MASTER II INDEX. THE SUB-INDICES, BLENDED AND MARKET WEIGHTED, ARE (I)
BB-RATED 1-3 YEARS, (II) B-RATED 1-3 YEARS, (III) BB-RATED 3-5 YEARS, AND (IV)
B- RATED 3-5 YEARS. UNLIKE THE CUSTOMIZED LIMITED TERM HIGH YIELD INDEX, WHICH
IS COMPOSED OF BONDS RATED NO LOWER THAN "B", THE FUND CAN INVEST IN BONDS WITH
LOWER CREDIT RATINGS THAN "B" AND AS LOW AS "D."
NEITHER OF THE FOREGOING INDICES TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<TABLE>
Average Annual Total Returns AS OF 12/31/99
Inception From
Date 1 Year Inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A SHARES
WITH SALES CHARGE (4.5%) 6/2/97 (2.56)% 0.97%
WITHOUT SALES CHARGE 6/2/97 1.99% 2.79%
CLASS B SHARES
WITH REDEMPTION((+)) 6/2/97 (2.21)% 1.32%
WITHOUT REDEMPTION 6/2/97 1.48% 2.27%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 6/2/97 0.31% 2.01%
WITHOUT REDEMPTION 6/2/97 1.23% 2.01%
CLASS R SHARES 6/2/97 2.24% 3.01%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%
AND IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES
CONVERT TO CLASS A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS
1% FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
December 31, 1999
Principal
BONDS AND NOTES--94.7% Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AIRCRAFT & AEROSPACE--6.6%
AM General, Ser. B,
Sr. Notes, 12.875%, 2002 11,858,000 10,642,555
Aircraft Lease Portfolio Securitisation 96-1,
Pass-Through Trust, Ctfs.,
Cl. D, 12.75%, 2006 812,929 804,800
Airplanes Pass-Through Trust,
Pass-Through Ctfs.,
Ser. 1, Cl. D, 10.875%, 2019 22,000,000 19,043,420
American Pacific,
Sr. Notes, 9.25%, 2005 7,000,000 7,070,000
Atlantic Coast Airlines,
Gtd. Pass through Ctfs.,
Ser. 1977-1D, 7.97%, 2000 974,272 (a) 974,901
Burke Industries,
Sr. Notes, 9.881%, 2007 7,000,000 (b) 2,695,000
L-3 Communications, Ser. B,
Sr. Sub. Notes, 10.375%, 2007 9,750,000 10,115,625
Midway Airlines,
Pass-Through Ctfs.,
Ser. 1998-1, Cl. D, 8.86%, 2003 4,502,000 (a) 4,420,716
55,767,017
AUTOMOTIVE--3.3%
Aetna Industries,
Sr. Notes, 11.875%, 2006 12,000,000 11,715,000
Hayes Lemmerz International,
Sr. Sub. Notes, 11%, 2006 7,000,000 7,350,000
Penda, Ser. B,
Sr. Notes, 10.75%, 2004 8,913,000 8,556,480
27,621,480
BROADCASTING--2.9%
Capstar Broadcasting Partners,
Sr. Discount Notes, 0/12.75%, 2009 1,750,000 (c) 1,566,250
Lin Holdings,
Sr. Discount Notes, 0/10%, 2008 9,000,000 (c) 6,108,750
Paxson Communications,
Sr. Sub. Notes, 11.625%, 2002 14,000,000 14,630,000
Univision Network Holding,
Sub. Notes, 7%, 2002 2,550,575 1,815,000
24,120,000
BUSINESS SERVICES--1.1%
Pierce Leahy,
Sr. Sub. Notes, 11.125%, 2006 9,000,000 9,585,000
Principal
BONDS AND NOTES (continued) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
CABLE TELEVISION--9.7%
Adelphia Communications:
Ser. B, Sr. Notes, 9.5%, 2004 5,000,000 5,025,000
Sr. Discount Notes, 0%, 2003 5,500,000 3,960,000
Sr. Notes, 9.25%, 2002 4,000,000 4,000,000
Sr. Notes, 9.75%, 2002 1,700,000 1,717,000
Diamond Cable Communications,
Sr. Discount Notes, 0/11.75%, 2005 9,950,000 (c) 9,452,500
Galaxy Telecom,
Sr. Sub. Notes, 12.375%, 2005 9,400,000 10,011,000
NTL:
Ser. A, Sr. Discount Notes, 0/12.75%, 2005 5,500,000 (c) 5,500,000
Sr. Discount Notes, 0/11.2%, 2007 7,000,000 (c) 6,702,500
Pegasus Communications, Ser. A,
Sr. Sub. Notes, 12.5%, 2007 14,500,000 (a) 15,877,500
Pegasus Media & Communications, Ser. B,
Sr. Sub. Notes, 12.5%, 2005 13,540,000 14,690,900
Telewest Communications,
Sr. Discount Notes, 0/11%, 2007 5,000,000 (c) 4,687,500
81,623,900
CASINOS & GAMING--2.3%
Circus Circus Enterprises,
Sr. Sub. Notes, 6.75%, 2003 1,500,000 1,425,000
Players International,
Sr. Notes, 10.875%, 2005 17,040,000 17,977,200
19,402,200
CHEMICALS--2.2%
Arco Chemical,
Deb., 9.9%, 2000 2,600,000 2,630,750
ISP Holdings:
Ser. B, Sr. Notes, 9.75%, 2002 5,770,000 5,806,063
Ser. B, Sr. Notes, 9%, 2003 9,750,000 9,555,000
17,991,813
COMMERCIAL MORTGAGE
PASS-THROUGH CTFS.--1.2%
GS Mortgage Securities II,
Ser. 1999-FL2A, Cl. G, 8.549%, 2013 4,000,000 (a,b) 3,699,760
Nomura Depositor Trust:
Ser. 1998-STI, Cl. B2, 9.694%, 2003 5,000,000 (a,b) 4,550,781
Ser. 1998 STIA, Cl. B2A, 9.694%, 2003 2,000,000 (a,b) 1,820,313
10,070,854
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (continued) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION--1.6%
Aaf-Mcquay,
Sr. Notes, 8.875%, 2003 9,000,000 7,976,250
ICF Kaiser International,
Sr. Sub. Notes, 13%, 2003 11,050,000 (d) 5,552,625
13,528,875
CONSUMER--5.8%
BPC Holding, Ser. B,
Sr. Secured Notes, 13.25%, 2006 5,329,000 (b) 5,142,485
Coinmachine, Ser. D,
Sr. Notes, 11.75%, 2005 15,915,000 16,472,025
Graham Packaging/GPC Capital, Ser. B,
Floating Interest Rate Sub. Term Securities,
9.224%, 2008 1,500,000 (b) 1,402,500
Hosiery Corp. of America,
Sr. Sub. Notes, 13.75%, 2002 13,000,000 13,585,000
Sharp Do Brazil,
Medium-Term Notes, 9.625%, 2000 3,500,000 (d,e) 533,750
Sweetheart Cup,
Sr. Sub. Notes, 9.625%, 2000 11,500,000 11,442,500
48,578,260
ENERGY--2.1%
Clark USA, Ser. B,
Sr. Notes, 10.875%, 2005 5,386,000 2,181,330
Dual Drilling,
Sr. Sub. Notes, 9.875%, 2004 3,300,000 3,405,511
Louis Dreyfus Natural Gas,
Sr. Sub. Notes, 9.25%, 2004 4,000,000 4,004,948
Statia Terminals, Ser. B,
First Mortgage, 11.75%, 2003 8,000,000 8,190,000
17,781,789
ENTERTAINMENT--2.7%
American Skiing, Ser. B,
Sr. Sub. Notes, 12%, 2006 22,915,000 21,024,512
United Artists Theatres, Ser. B,
Floating Rate Sr. Sub. Notes, 10.553%, 2007 8,000,000 (d) 1,600,000
22,624,512
FINANCIAL--2.0%
Imperial Credit Capital Trust I, Ser. A,
Remarketed Par Securities, 10.25%, 2002 500,000 387,249
Loomis Fargo & Co.,
Sr. Notes, 10%, 2004 5,375,000 5,348,125
Principal
BONDS AND NOTES (continued) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL (CONTINUED)
Reliance Group Holdings:
Sr. Notes, 9%, 2000 6,500,000 5,768,750
Sr. Sub. Deb., 9.75%, 2003 4,700,000 3,677,750
Republic National Bank of New York,
Deb., 9.65%, 2003 2,000,000 (a) 1,359,702
16,541,576
FOOD & BEVERAGES--5.0%
Chiquita Brands International,
Conv. Sub. Notes, 7%, 2001 9,150,000 7,137,000
Envirodyne Industries,
Sr. Notes, 10.25%, 2001 14,000,000 8,400,000
Pilgrims Pride,
Sr. Sub. Notes, 10.875%, 2003 2,000,000 2,030,000
Sun World International, Ser. B,
First Mortgage, 11.25%, 2004 23,500,000 24,087,500
41,654,500
FOREST PRODUCTS--6.3%
Maxxam Group Holdings,
Sr. Secured Notes, 12%, 2003 45,115,000 42,182,525
Stone Container Finance,
Sr. Notes, 11.5%, 2006 10,000,000 (a) 10,650,000
52,832,525
HEALTH CARE--1.1%
Eye Care Centers of America,
Floating Interest Rate Sub. Term Securities,
10.114%, 2008 3,000,000 (b) 2,115,000
Tenet Healthcare,
Sr. Notes, 7.875%, 2003 7,500,000 7,303,125
9,418,125
INDUSTRIAL--3.2%
Anacomp, Ser. D,
Sr. Sub. Notes, 10.875%, 2004 5,000,000 5,000,000
Applied Extrusion Technology, Ser. B,
Sr. Notes, 11.5%, 2002 12,880,000 13,266,400
HCC Industries,
Sr. Sub. Notes, 10.75%, 2007 6,360,000 3,720,600
Hawk, Ser. B,
Sr. Notes, 10.25%, 2003 3,083,000 2,975,095
TEKNI-PLEX, Ser. B,
Sr. Notes, 11.25%, 2007 1,185,000 1,285,725
The Fund
Principal
BONDS AND NOTES (continued) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL (CONTINUED)
Vicap, S.A. de C.V.,
Gtd. Sr. Notes, 10.25%, 2002 500,000 485,000
26,732,820
METALS--2.2%
Northwestern Steel & Wire,
Sr. Notes, 9.5%, 2001 5,000,000 2,275,000
Renco Metals,
Sr. Notes, 11.5%, 2003 18,870,000 15,945,150
18,220,150
PUBLISHING--.7%
Day International Group, Ser. B,
Sr. Sub. Notes, 11.125%, 2005 5,200,000 5,356,000
REAL ESTATE--1.5%
Meditrust:
Conv. Notes, 7.5%, 2001 1,000,000 827,500
Medium-Term Notes, 7.77%, 2002 7,250,000 5,978,705
Rockefeller Center Properties,
Conv. Deb., 0%, 2000 7,255,000 6,094,200
12,900,405
RETAIL--2.2%
Cafeteria Operators
(Gtd. by Furrs/Bishops Specialty Group),
Sr. Secured Notes, 12%, 2001 7,481,650 7,444,242
Core-Mark International,
Sr. Notes, 11.375%, 2003 3,180,000 3,040,875
Petro Stopping Centers/Financial,
Sr. Notes, 10.5%, 2007 7,800,000 7,273,500
Woolworth,
Notes, 7%, 2000 1,000,000 991,413
18,750,030
SHIPPING--.6%
Gearbulk Holdings,
Sr. Notes, 11.25%, 2004 2,000,000 2,065,000
Stena AB,
Sr. Notes, 10.5%, 2005 3,500,000 3,202,500
5,267,500
SUPERMARKETS--1.0%
Pathmark Stores,
Notes, 10.75%, 2003 4,000,000 500,000
Principal
BONDS AND NOTES (continued) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
SUPERMARKETS (CONTINUED)
Shoppers Food Warehouse,
Sr. Notes, 9.75%, 2004 7,400,000 7,881,000
8,381,000
TECHNOLOGY--1.4%
Baan,
Conv. Sub. Notes, 4.5%, 2001 10,000,000 8,975,000
Viasystems,
Sr. Sub. Notes, 9.75%, 2007 5,750,000 3,076,250
12,051,250
TELECOMMUNICATIONS/CARRIERS--8.9%
GST USA,
Sr. Discount Notes, 0/13.875%, 2005 2,500,000 (c) 1,862,500
Hermes Europe Railtel,
Sr. Notes, 11.5%, 2007 14,750,000 15,266,250
Intermedia Communications,
Sr. Discount Notes, 0/12.5%, 2006 14,500,000 (c) 12,760,000
MJD Communications,
Floating Rate Notes, 10.321%, 2008 9,000,000 (b) 8,428,500
NEXTEL Communications,
Sr. Notes, 9.75%, 2004 9,500,000 9,832,500
Qwest Communications International, Ser. B,
Sr. Notes, 10.875%, 2007 15,000,000 16,875,000
WorldPort Communications,
Sr. Notes, 11.688%, 2000 10,000,000 (a,d) 10,000,000
75,024,750
TEXTILES--.7%
Sassco Fashions,
Sr. Notes, 12.75%, 2004 5,700,000 5,329,500
Texfi Industries,
Sr. Sub. Deb., 8.75%, 2000 5,100,000 (d) 204,000
5,533,500
TRANSPORTATION--3.6%
Eletson Holdings,
First Pfd. Ship Mortgage, 9.25%, 2003 1,750,000 1,618,750
MTL, Ser. B,
Floating Interest Rate Sub. Term Securities,
10.931%, 2006 5,000,000 (b) 4,468,750
US Airways,
Pass-Through Ctfs.:
Ser. 1993-A, Cl. A2, 9.625%, 2003 3,855,000 3,770,063
Ser. 1993-A, Cl. A3, 10.375%, 2013 11,000,000 10,734,867
The Fund
Principal
BONDS AND NOTES (CONTINUED) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (CONTINUED)
Union Pacific,
Sub. Deb, 5.5%, 2033 4,348,000 3,016,261
ValuJet,
Sr. Notes, 10.25%, 2001 7,675,000 6,667,656
30,276,347
UTILITIES--.5%
Hidroelectrica Piedra del Aguila:
Notes, 8%, 2009 3,500,000 (a) 2,135,000
Notes, 8.25%, 2009 3,500,000 (a) 2,170,000
4,305,000
WIRELESS COMMUNICATIONS--12.3%
Cencall Communications,
Sr. Notes, 10.125%, 2004 7,500,000 7,800,000
Clearnet Communications,
Sr. Discount Notes, 0/14.75%, 2005 19,600,000 (c) 19,330,500
Comunicacion Celular,
Sr. Discount Notes, 0/14.125%, 2005 13,250,000 (a,c) 6,360,000
Microcell Telecommunications, Ser. B,
Sr. Discount Notes, 0/14%, 2006 10,000,000 (c) 8,875,000
Occidente y Caribe Celular, Ser. B,
Sr. Discount Notes, 0/14%, 2004 11,000,000 (c) 4,950,000
Omnipoint Communications,
Floating Rate Notes, 9.254%, 2006 4,844,553 (a,b) 4,754,299
Orion Network Systems,
Sr. Discount Notes, 0/12.5%, 2007 32,045,000 (c) 14,900,925
Pagemart Nationwide,
Sr. Discount Notes, 0/15%, 2005 13,500,000 (c) 12,082,500
WinStar Communications,
Sr. Discount Notes, 0/14%, 2005 23,000,000 (c) 22,425,000
WinStar Equipment,
Sr. Notes, 12.5%, 2004 2,000,000 2,150,000
103,628,224
TOTAL BONDS AND NOTES
(cost $918,456,193) 795,569,402
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--.1% Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
BROADCASTING--.1%
Spanish Broadcasting System, Cl. A 21,400 (a,f) 522,160
UnitedGlobalCom, Cl. A 906 (f) 63,986
586,146
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT--.0%
Discovery Zone (warrants) 4,000 (a,f) 4
Discovery Zone, Cl. A (warrants) 37,400 (a,f) 37
Discovery Zone, Cl. B (warrants) 37,400 (a,f) 37
78
TELECOMMUNICATIONS/CARRIERS--.0%
Worldport Communications (warrants) 277,493 (a,f) 2,775
WIRELESS COMMUNICATIONS--.0%
Comunicacion Celular (warrants) 1,750 (a,f) 87,719
TOTAL COMMON STOCKS
(cost $558,359) 676,718
- ------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--.6%
- ------------------------------------------------------------------------------------------------------------------------------------
PUBLISHING
Newscorp Overseas,
Ser. A, Cum., $2.15625
(cost $5,454,716) 216,973 4,664,920
- ------------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--3.3% Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--1.2%
Halliburton,
7.25%, 2000 10,000,000 9,995,972
U.S. TREASURY BILLS--2.1%
4.96%, 3/30/2000 17,945,000 17,721,226
TOTAL SHORT-TERM INVESTMENTS
(cost $27,720,927) 27,717,198
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $952,190,195) 98.7% 828,628,238
CASH AND RECEIVABLES (NET) 1.3% 11,275,840
NET ASSETS 100.0% 839,904,078
A SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION,
NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT DECEMBER 31, 1999, THESE
SECURITIES AMOUNTED TO $69,385,704 OR 8.3% OF NET ASSETS.
B VARIABLE RATE SECURITY--INTEREST RATE SUBJECT TO PERIODIC CHANGE.
C ZERO COUPON UNTIL A SPECIFIED DATE AT WHICH TIME THE STATED COUPON RATE
BECOMES EFFECTIVE UNTIL MATURITY.
D NON-INCOME PRODUCING--SECURITY IN DEFAULT.
E REFLECTS DATE SECURITY CAN BE REDEEMED AT HOLDER'S OPTION; THE STATED
MATURITY IS 10/30/2005.
F NON-INCOME PRODUCING.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 952,190,195 828,628,238
Interest and dividends receivable 21,887,511
Receivable for shares of Beneficial Interest subscribed 1,823,441
852,339,190
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 926,968
Due to Distributor 124,952
Cash overdraft due to Custodian 4,488,430
Payable for shares of Beneficial Interest redeemed 6,894,762
12,435,112
- --------------------------------------------------------------------------------
NET ASSETS ($) 839,904,078
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 996,807,773
Accumulated undistributed investment income-net 2,504,477
Accumulated net realized gain (loss) on investments (35,846,215)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 (123,561,957)
NET ASSETS ($) 839,904,078
<TABLE>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 106,959,437 562,604,605 170,011,283 328,753
Shares Outstanding 10,235,192 53,843,701 16,262,197 31,483
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 10.45 10.45 10.45 10.44
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 99,624,971
Cash dividends 4,870,053
TOTAL INCOME 104,495,024
EXPENSES:
Management fee--Note 2(a) 6,557,372
Distribution and service fees--Note 2(b) 6,863,122
Interest expense--Note 4 68,831
TOTAL EXPENSES 13,489,325
INVESTMENT INCOME--NET 91,005,699
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 3 ($):
Net realized gain (loss) on investments (18,202,136)
Net unrealized appreciation (depreciation) on investments (58,693,550)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (76,895,686)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 14,110,013
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
---------------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 91,005,699 59,847,911
Net realized gain (loss) on investments (18,202,136) (17,497,235)
Net unrealized appreciation (depreciation)
on investments (58,693,550) (62,388,806)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 14,110,013 (20,038,130)
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (13,467,432) (10,382,991)
Class B shares (57,065,809) (35,300,767)
Class C shares (18,945,063) (13,155,121)
Class R shares (22,591) (12,480)
TOTAL DIVIDENDS (89,500,895) (58,851,359)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($)
Net proceeds from shares sold:
Class A shares 129,666,728 127,961,825
Class B shares 178,313,048 440,097,645
Class C shares 65,677,422 184,901,944
Class R shares 209,810 --
Dividends reinvested:
Class A shares 6,252,511 6,262,565
Class B shares 15,659,923 9,117,590
Class C shares 5,791,684 3,905,817
Class R shares 13,585 12,480
Cost of shares redeemed:
Class A shares (165,607,547) (40,179,581)
Class B shares (134,189,892) (48,434,992)
Class C shares (89,350,304) (33,282,236)
Class R shares (10) (10)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 12,436,958 650,363,047
TOTAL INCREASE (DECREASE) IN NET ASSETS (62,953,924) 571,473,558
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 902,858,002 331,384,444
END OF PERIOD 839,904,078 902,858,002
Undistributed investment income--net 2,504,477 999,673
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended December 31,
---------------------------------
1999 1998
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A (A)
Shares sold 11,720,706 10,556,558
Shares issued for dividends reinvested 570,644 523,771
Shares redeemed (15,044,058) (3,364,705)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,752,708) 7,715,624
- --------------------------------------------------------------------------------
CLASS B (A)
Shares sold 16,090,888 36,142,877
Shares issued for dividends reinvested 1,437,007 764,857
Shares redeemed (12,369,337) (4,116,604)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 5,158,558 32,791,130
- --------------------------------------------------------------------------------
CLASS C
Shares sold 5,912,749 15,092,226
Shares issued for dividends reinvested 530,024 327,575
Shares redeemed (8,200,482) (2,814,091)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,757,709) 12,605,710
- --------------------------------------------------------------------------------
CLASS R
Shares sold 18,989 --
Shares issued for dividends reinvested 1,248 1,035
Shares redeemed (1) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 20,236 1,035
(A) DURING THE PERIOD ENDED DECEMBER 31, 1999, 6,007 CLASS B SHARES
REPRESENTING $62,981 WERE AUTOMATICALLY CONVERTED TO 6,010 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
CLASS A SHARES CLASS B SHARES
---------------------- ----------------------------
Year Ended December 31, Year Ended December 31,
---------------------------- ----------------------------
1999 1998 1997(a) 1999 1998 1997(a)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 11.33 12.46 12.50 11.33 12.46 12.50
Investment Operations:
Investment income-net 1.12 1.15 .71 1.06 1.09 .66
Net realized and unrealized gain (loss)
on investments (.90) (1.14) (.04) (.89) (1.14) (.04)
Total from Investment Operations .22 .01 .67 .17 (.05) .62
Distributions:
Dividends from investment income-net (1.10) (1.14) (.71) (1.05) (1.08) (.66)
Net asset value, end of period 10.45 11.33 12.46 10.45 11.33 12.46
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) 1.99 (.10) 9.16(c) 1.48 (.61) 8.57(c)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets .95 .95 .95(c) 1.45 1.45 1.45(c)
Ratio of interest expense to
average net assets .01 .02 .08(c) .01 .02 .09(c)
Ratio of net investment income
to average net assets 10.19 9.55 9.34(c) 9.70 9.02 8.73(c)
Portfolio Turnover Rate 40.79 45.34 28.83(d) 40.79 45.34 28.83(d)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 106,959 147,131 65,705 562,605 551,415 198,057
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.
CLASS C SHARES CLASS R SHARES
---------------------- ----------------------------
Year Ended December 31, Year Ended December 31,
---------------------------- ----------------------------
1999 1998 1997(a) 1999 1998 1997(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.33 12.47 12.50 11.32 12.45 12.50
Investment Operations:
Investment income-net 1.04 1.06 .65 1.05 1.25 .81
Net realized and unrealized gain (loss)
on investments (.90) (1.15) (.03) (.80) (1.21) (.14)
Total from Investment Operations .14 (.09) .62 .25 .04 .67
Distributions:
Dividends from investment income-net (1.02) (1.05) (.65) (1.13) (1.17) (.72)
Net asset value, end of period 10.45 11.33 12.47 10.44 11.32 12.45
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) 1.23 (.93) 8.47(c) 2.24 .14 9.26(c)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 1.70 1.70 1.70(c) .70 .70 .75(c)
Ratio of interest expense to
average net assets .01 .02 .09(c) .01 .03 .05(c)
Ratio of net investment income
to average net assets 9.45 8.77 8.54(c) 10.65 10.41 10.08(c)
Portfolio Turnover Rate 40.79 45.34 28.83(d) 40.79 45.34 28.83(d)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 170,011 204,184 67,495 329 127 127
A FROM MAY 30, 1997 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1997.
B EXCLUSIVE OF SALES CHARGE.
C ANNUALIZED.
D NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Limited Term High Income Fund (the "fund") is a separate
diversified series of The Dreyfus/Laurel Funds Trust (the "Trust") which is
registered under the Investment Company Act of 1940, 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" ), which is a wholly-owned
subsidiary of Mellon Financial Corporation.
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").
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 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, if any, are normally declared and paid
annually, but the fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code 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 pro
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
visions 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 $35,475,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1999. If not
applied, $8,327,000 of the carryover expires in fiscal 2006 and $27,148,000
expires in fiscal 2007.
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 fees). Each Trustee
receives $40,000 per year, plus $5,000 for each joint Board meeting of The
Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free Municipal Funds, and The
Dreyfus/Laurel Funds Trust (the "Dreyfus/Laurel Funds") attended, $2,000 for
separate committee meetings attended which are not held in conjunction with a
regularly scheduled board meeting and $500 for Board meetings and separate
committee meetings attended that are conducted by telephone and is reimbursed
for travel and out-of-pocket expenses. The Chairman of the Board receives an
additional 25% of such compensation (with the exception of reimbursable
amounts). In the event that there is a joint committee meeting of the
Dreyfus/Laurel Funds and the Dreyfus High Yield Strategies Fund, the $2,000 fee
will be allocated between the Dreyfus/Laurel Funds and the Dreyfus High Yield
Strategies Fund. These fees and expenses are charged and allocated to each
series based on net assets. Amounts required to be paid by the Trust directly to
the non-interested Trustees, that would be applied to offset a portion of the
management fee payable to the Manager, are in fact paid directly by the Manager
to the non-interested Trustees.
(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 December 31, 1999, Class A, Class B and Class C shares were charged
$335,061, $2,994,350 and $1,527,402, respectively pursuant to the Plan and Class
B and Class C shares were charged $1,497,175 and $509,134 respectively, pursuant
to the Service Plan.
Under its terms, the Plan and Service Plan shall remain in effect from year to
year, provided such continuance is approved annually by a vote of majority of
those Trustees who are not "interested persons" of the Trust and who have no
direct or indirect financial interest in the operation of or in any agreement
related to the Plan or Service Plan.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended December 31, 1999, amounted to
$363,864,190 and $369,580,417, respectively.
At December 31, 1999, accumulated net unrealized depreciation on investments was
$123,561,957, consisting of $3,302,526 gross unrealized appreciation and
$126,864,483 gross unrealized depreciation.
At December 31, 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 $20 million for leveraging purposes under a short-term
unsecured line of credit and participates with other Dreyfus-managed funds in a
$100 million unsecured line of credit primarily to be utilized for temporary or
emergency purposes, including the financing of redemptions. Interest is charged
to the fund at rates which are related to the Federal Funds rate in effect at
the time of borrowings.
The average daily amount of borrowings outstanding during the period ended
December 31, 1999 was approximately $1,281,700 with a related weighted average
annualized interest rate of 5.37%.
NOTE 5--Subsequent Event:
In June 1999, Worldport Communications ("Worldport") a security in the fund's
portfolio was not redeemed at it's maturity date. Consequently, interest accrual
ceased at that point due to the financial status of Worldport. On January 19,
2000, the fund was able to redeem the security, and proceeds of $12.2 million
was received. This represented $10 million par amount, $1.2 million of original
interest accrued and an additional $1.0 million interest and penalties received
that had not been accrued for on the fund's books and records as of December 31,
1999.
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders
The Dreyfus/Laurel Funds Trust:
We have audited the accompanying statement of assets and liabilities of Dreyfus
Premier Limited Term High Income Fund of The Dreyfus/Laurel Funds Trust,
including the statement of investments, as of December 31, 1999, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods presented herein. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
as of December 31, 1999, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Limited Term High Income Fund of The Dreyfus/Laurel Funds Trust
as of December 31, 1999, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods presented herein, in
conformity with generally accepted accounting principles.
New York, New York
February 9, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
The fund designates 5.52% of the ordinary dividends paid during the fiscal year
ended December 31, 1999 as qualifying for the corporate dividends received
deduction.
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) 2000 Dreyfus Service Corporation 029AR9912
================================================================================
Dreyfus
Premier Managed
Income Fund
ANNUAL REPORT December 31, 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 Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. 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 Fund Performance
8 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
28 Independent Auditors' Report
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Managed Income Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Managed Income
Fund, covering the 12-month period from January 1, 1999 through December 31,
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, Arthur J. MacBride.
The past year was challenging for most fixed-income investors. Faster than
expected economic growth in the U.S. and overseas fueled concerns that
long-dormant inflationary pressures might re-emerge, potentially reducing the
future value of bonds' interest and principal payments. These concerns prompted
the Federal Reserve Board to raise key short-term interest rates three times
during the summer and fall of 1999 in an attempt to prevent a reacceleration of
inflation.
While U.S. Treasury and agency securities declined sharply in this environment
during 1999, prices of higher yielding securities -- such as corporate bonds and
mortgage-backed securities -- fell less severely. In an environment of robust
economic growth, investors appeared more comfortable owning bonds that are
influenced primarily by credit risk, and they avoided securities that are most
affected by interest-rate risk.
We appreciate your confidence over the past year, 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
January 14, 2000
DISCUSSION OF FUND PERFORMANCE
Arthur J. MacBride, Portfolio Manager
How did Dreyfus Premier Managed Income Fund perform relative to its benchmark?
For the 12-month period ended December 31, 1999, Dreyfus Premier Managed Income
Fund produced a total return of -1.75% for Class A shares, -2.48% for Class B
shares, -2.48% for Class C shares and -1.57% for Class R shares.(1) In
comparison, the Lehman Brothers Aggregate Bond Index returned -0.82% for the
same period.(2) As of December 31, 1999, the fund produced a distribution rate
of 6.07% for Class A shares, 5.58% for Class B shares, 5.58% for Class C shares
and 6.65% for Class R shares.(3)
The bond market in general produced weak total returns. In 1999, interest rates
rose steadily -- and when that happens, bond prices fall. Total return, which
equals changes in bond prices plus a bond's yield, is likely to be modest or
negative in a rising interest-rate environment.
What is the fund's investment approach?
The fund invests at least 65% of total assets in United States government debt
obligations, mortgage- and asset-backed securities 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 selecting individual securities which possess a
combination of superior fundamentals and attractive relative valuations.
What other factors influenced the fund's performance?
A modest percentage of the fund's assets were invested in high yield bonds,
which did not perform up to expectations. However, our continuing emphasis on
investment-grade corporate bonds and mortgage-backed securities was a positive
factor in the fund' s relative performance. Throughout 1999, global economies
recovered while the
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
U.S. economy continued to boom, providing a very strong credit platform for
corporate bonds. Meanwhile, mortgages also performed well because prepayment
risk diminished in the rising interest-rate environment. U.S. Treasuries, which
had benefited from a flight to quality in 1998, gave back those gains in 1999,
as investors sought higher yields offered elsewhere.
During the year, the non-Treasury bond market was impacted by Y2K fears.
Companies accelerated their new issue calendars to the late spring and summer to
avoid having to access the financial markets later in the year, when they feared
liquidity might be a problem. This excess supply caused bonds to slightly
underperform during the middle of the year, but the situation reversed itself in
the fall, as excess issuance was absorbed. In the end, the overall effect of Y2K
turned out to be minor.
Of much more concern was the impact that the direction of interest rates would
have on bond prices. Gross domestic product grew by more than 4% in 1999 --
normally considered too fast to avoid inflation. As a result, the Federal
Reserve Board raised short-term interest rates three times in an attempt to slow
the U.S. economy. Yet despite the U.S. economy's strength, significant inflation
had not materialized. Although 1999's Consumer Price Index rose faster than the
year before, inflation is still under 3%. This good news on inflation is due to
productivity improvements brought on by technology, price competition from free
international trade, global deregulation and other factors. As of December 31,
1999, the big question facing the bond market was whether interest rates would
have to rise further, given the economy's strength and productivity.
What is the fund's current strategy?
In an environment of strong economic growth and upward pressure on interest
rates, the fund's strategy is a continuing emphasis on corporate bonds. Examples
of our broadly diversified portfolio include such strong corporate performers as
Lehman Brothers Holdings, a brokerage firm profiting from the strong global
markets; United International Holding, a European cable company operating in
Europe's improving economy; and Nextel Communications, which is at the forefront
of the wireless communication industry. We also plan to maintain significant
weighting to mortgage securities, which provide higher yields than U.S. Treasury
bonds
January 14, 2000
(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: LEHMAN BROTHERS --THE LEHMAN BROTHERS AGGREGATE BOND INDEX IS
A WIDELY ACCEPTED, UNMANAGED TOTAL RETURN INDEX OF CORPORATE, U.S.
GOVERNMENT AND U.S. GOVERNMENT AGENCY DEBT INSTRUMENTS,
MORTGAGE-BACKED SECURITIES AND ASSET-BACKED SECURITIES WITH AN AVERAGE
MATURITY OF 1-10 YEARS. 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 DIVIDED BY THE NET ASSET
VALUE PER SHARE IN THE CASE OF CLASS A SHARES, OR 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
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Managed
Income Fund Class A shares and the Lehman Brothers Aggregate Bond Index
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES OF DREYFUS
PREMIER MANAGED INCOME FUND ON 12/31/89 TO A $10,000 INVESTMENT MADE IN THE
LEHMAN BROTHERS AGGREGATE BOND INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS B, CLASS C AND CLASS R
SHARES WILL VARY FROM THE PERFORMANCE OF CLASS A SHARES SHOWN ABOVE DUE TO
DIFFERENCES IN CHARGES AND EXPENSES.
DREYFUS PREMIER MANAGED INCOME FUND SEEKS HIGH CURRENT INCOME CONSISTENT WITH
WHAT IS BELIEVED TO BE PRUDENT RISK OF CAPITAL PRIMARILY THROUGH INVESTMENTS IN
INVESTMENT-GRADE CORPORATE AND U.S. GOVERNMENT OBLIGATIONS AND IN OBLIGATIONS
HAVING MATURITIES OF 10 YEARS OR LESS. THE FUND'S PERFORMANCE SHOWN IN THE LINE
GRAPH TAKES INTO ACCOUNT THE MAXIMUM INITIAL SALES CHARGE ON CLASS A SHARES AND
ALL OTHER APPLICABLE FEES AND EXPENSES. THE LEHMAN BROTHERS AGGREGATE BOND INDEX
IS A WIDELY ACCEPTED, UNMANAGED INDEX OF CORPORATE, U.S. GOVERNMENT AND U.S.
GOVERNMENT AGENCY DEBT INSTRUMENTS, MORTGAGE-BACKED SECURITIES AND ASSET-BACKED
SECURITIES. THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
Average Annual Total Returns AS OF 12/31/99
<TABLE>
Inception From
Date 1 Year 5 Years 10 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
WITH SALES CHARGE (4.5%) 8/1/79 (6.18)% 5.56% 6.59% --
WITHOUT SALES CHARGE 8/1/79 (1.75)% 6.54% 7.08% --
CLASS B SHARES
WITH REDEMPTION((+)) 12/19/94 (6.18)% 5.42% -- 5.44%
WITHOUT REDEMPTION 12/19/94 (2.48)% 5.74% -- 5.60%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 12/19/94 (3.40)% 5.74% -- 5.61%
WITHOUT REDEMPTION 12/19/94 (2.48)% 5.74% -- 5.61%
CLASS R SHARES 2/1/93 (1.57)% 6.79% -- 5.92%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4% AND
IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
December 31, 1999
Principal
BONDS AND NOTES--98.8% Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE AND AVIATION--.9%
Compass Aerospace,
Sr. Sub. Notes, 10.125%, 2005 635,000 (a) 352,425
United Technologies,
Deb., 7.5%, 2029 480,000 471,222
823,647
ASSET-BACKED SECURITIES--12.3%
Case Equipment Loan Trust,
Ser. 1998-C, Cl. A-4, 5.61%, 2005 251,000 (b) 244,054
Discover Card Master Trust I,
Ser. 1999-4, Cl. A, 5.65%, 2004 262,000 (b) 254,985
Distribution Financial Services Trust:
Ser. 1999-1, Cl. A-5, 5.97%, 2013 1,349,000 (b) 1,302,839
Ser. 1999-3, Cl. A-4, 6.65%, 2011 186,000 (b) 184,140
EQCC Home Equity Loan Trust:
Ser. 1999-1, Cl. A-3F, 5.9152%, 2024 197,000 (b) 190,538
Ser, 1999-3, Cl. A-3F, 7.067%, 2024 426,000 (b) 423,121
First Security Auto Owner Trust,
Ser. 1999-1, Cl. A-4, 5.74%, 2004 1,041,000 (b) 1,009,791
Green Tree Financial,
Ser. 1999-2, Cl. A-3, 6.08%, 2030 1,071,000 (b) 1,018,119
MBNA Master Credit Card Trust:
Ser. 1999-J, Cl. A, 7%, 2012 477,000 (b) 468,131
Ser. 1999-I, Cl. A, 6.4%, 2005 2,165,000 (b) 2,145,718
The Money Store Home Equity Trust:
Ser, 1994-B, Cl. A-5, 8.025%, 2024 310,000 (b) 313,681
Ser. 1996-C, Cl. A-6, 7.69%, 2024 637,000 (b) 631,643
Ser. 1997-C, Cl. AF-7, 6.945%, 2039 1,265,000 (b) 1,226,304
Newcourt Equipment Trust Securities,
Ser. 1999-1, Cl. A-4, 7.18%, 2005 607,000 (b) 609,229
Premier Auto Trust,
Ser. 1999-1, Cl. A-4, 5.82%, 2003 361,000 (b) 352,708
Sears Credit Account Master Trust,
Ser. 1996-3, Cl. A, 7%, 2008 627,000 (b) 625,802
11,000,803
AUTOMOTIVE--2.1%
DaimlerChrysler,
Notes, 7.2%, 2009 620,000 609,762
Ford Motor,
Notes, 7.45%, 2031 735,000 708,694
Navistar International,
Notes, 7%, 2003 550,000 529,375
1,847,831
Principal
BONDS AND NOTES (CONTINUED) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
BANKING--5.5%
BankBoston,
Sr. Notes, 6.125%, 2002 689,000 673,178
Chase Manhattan,
Sub. Notes, 7%, 2009 320,000 308,097
Citigroup,
Sr. Notes, 5.8%, 2004 625,000 594,729
First National Bank of Boston,
Sub. Notes, 7.375%, 2006 758,000 747,858
First Union,
Notes, 6.95%, 2004 480,000 471,971
National City,
Sub. Notes, 5.75%, 2009 355,000 311,701
National Westminster Bank,
Sub. Notes, 7.375%, 2009 675,000 660,265
U.S. Bank,
Sub. Notes, 5.7%, 2008 630,000 554,202
Wells Fargo,
Notes, 6.625%, 2004 624,000 610,912
4,932,913
BROADCASTING & MEDIA--4.4%
Adelphia Communications, Ser. B,
Sr. Notes, 8.125%, 2003 500,000 482,500
CSC Holdings,
Sr. Notes, 7.875%, 2004 205,000 202,950
Chancellor Media,
Sr. Sub. Notes, 9.375%, 2004 400,000 418,000
Charter Communications Holdings,
Sr. Notes, 8.25%, 2007 360,000 333,900
Comcast Cable Communications,
Sr. Notes, 6.2%, 2008 210,000 190,672
Mcleod USA,
Sr. Notes, 9.25%, 2007 635,000 637,381
Mediacom,
Sr. Notes, 7.875%, 2011 500,000 442,500
TCI Communications,
Deb., 7.875%, 2026 275,000 276,598
Time Warner,
Sr. Notes, 6.625%, 2009 485,000 413,982
United International Holdings, Ser. B,
Sr. Secured Discount Notes, 0%, 2003 910,000 (c) 586,950
3,985,433
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.3%
Dow Chemical,
Deb., 7.375%, 2029 165,000 158,327
duPont (E.I.) de Nemours,
Notes, 6.75%, 2004 218,000 215,281
Lyondell Chemicals,
Notes, 9.625%, 2007 405,000 416,138
Rohm & Haas,
Deb., 7.85%, 2029 400,000 403,163
1,192,909
COMMERCIAL MORTGAGE PASS-THROUGH CTFS.--4.7%
COMM,
Ser. 1999-1, Cl. A-2, 6.455%, 2008 1,455,000 (b) 1,351,353
CS First Boston Mortgage Securities:
Ser. 1998-C2, Cl. A-1, 5.96%, 2007 873,227 (b) 830,111
Ser. 1999-C1, Cl. A-2, 7.29%, 2009 402,000 (b) 394,943
First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust,
Ser. 1998-C2, Cl. A-2, 6.56%, 2008 387,000 (b) 366,138
First Union National Bank Commercial Mortgage,
Ser. 1999-C4, Cl. A-2, 7.39%, 2009 202,000 (b) 200,264
Morgan Stanley Capital I,
Ser. 1998-WFI, Cl. A-2, 6.55%, 2007 381,000 (b) 361,857
Nationslink Funding,
Ser. 1998-2, Cl. A-1, 6%, 2007 742,935 (b) 704,726
4,209,392
CONSUMER--2.1%
ICN Pharmaceuticals, Ser. B,
Sr. Notes, 9.25%, 2005 470,000 465,300
KinderCare Learning Centers,
Sr. Sub. Notes, 9.5%, 2009 325,000 318,500
Procter & Gamble,
Deb., 6.875%, 2009 215,000 210,608
Rayovac, Ser. B,
Sr. Sub. Notes, 10.25%, 2006 195,000 199,875
Royal Caribbean Cruises,
Sr. Notes, 7.5%, 2027 430,000 387,603
Standard Commercial,
Sr. Notes, 8.875%, 2005 380,000 299,250
1,881,136
Principal
BONDS AND NOTES (CONTINUED) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY--2.5%
Coastal,
Notes, 6.2%, 2004 985,000 940,188
Conoco,
Sr. Notes, 5.9%, 2004 606,000 578,343
Ocean Energy,
Notes, 8.875%, 2007 420,000 417,900
Williams,
Notes, 6.2%, 2002 280,000 273,205
2,209,636
ENVIRONMENTAL--.4%
Allied Waste North America,
Sr. Notes, 7.375%, 2004 378,000 350,595
FINANCIAL SERVICES--5.2%
Associates Corp. of North America,
Sr. Notes, 5.8%, 2004 860,000 815,371
Donaldson, Lufkin, Jenrette,
Sr. Notes, 5.875%, 2002 750,000 728,397
Ford Motor Credit,
Notes, 7.375%, 2009 398,000 393,710
GS Escrow,
Sr. Notes, 7%, 2003 425,000 393,522
Goldman Sachs Group,
Notes, 6.65%, 2009 465,000 433,923
Lehman Brothers Holdings,
Notes, 6.25%, 2003 685,000 661,305
Morgan Stanley Dean Witter,
Notes, 7.125%, 2003 550,000 549,699
Paine Webber Group,
Sr. Notes, 6.375%, 2004 715,000 680,606
4,656,533
FOOD & BEVERAGES--1.6%
Nabisco,
Notes, 6%, 2001 735,000 725,949
Tricon Global Restaurants,
Sr. Notes, 7.45%, 2005 685,000 659,331
1,385,280
HEALTHCARE--.5%
Triad Hospitals Holdings,
Notes, 11%, 2009 425,000 442,000
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--1.9%
Eagle-Picher Holdings,
Sr. Discount Notes, 0%, 2003 600,000 (c) 277,500
Packaging Corp of America,
Sr. Sub. Notes, 9.625%, 2009 155,000 159,069
SCG Holding & Semiconductor,
Sr. Sub. Notes, 12%, 2009 425,000 (a) 453,688
Textron,
Notes, 6.375%, 2004 860,000 830,345
1,720,602
METALS--.2%
U.S. Can, Ser. B,
Sr. Sub. Notes, 10.125%, 2006 175,000 179,375
REAL ESTATE INVESTMENT TRUSTS--.6%
AvalonBay Communities,
Sr. Notes, 6.5%, 2003 305,000 292,766
Spieker Properties Trust,
Notes, 6.8%, 2004 265,000 254,514
547,280
RETAIL--.8%
Federated Department Stores,
Sr. Notes, 8.125%, 2002 125,000 127,627
Wal-Mart Stores,
Sr. Notes, 6.875%, 2009 640,000 624,088
751,715
TECHNOLOGY--1.7%
DynCorp,
Sr. Sub. Notes, 9.5%, 2007 405,000 357,919
Electronic Data Systems,
Notes, 6.85%, 2004 370,000 365,495
Sun Microsystems,
Sr. Notes, 7.5%, 2006 375,000 377,013
Verio,
Sr. Notes, 11.25%, 2008 435,000 458,925
1,559,352
TELECOMMUNICATIONS--3.3%
Centennial Cellular,
Sr. Sub. Notes, 10.75%, 2008 210,000 225,750
Global Crossing Holdings,
Sr. Notes, 9.125%, 2006 450,000 (a) 447,188
Logix Communications Enterprises,
Sr. Notes, 12.25%, 2008 700,000 507,500
Principal
BONDS AND NOTES (CONTINUED) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS (CONTINUED)
MCI Worldcom,
Sr. Notes, 6.95%, 2028 310,000 283,586
NEXTLINK Communications,
Sr. Notes, 10.75%, 2009 465,000 480,113
Nextel Communications,
Sr. Notes, 9.375%, 2009 730,000 (a) 719,050
Time Warner Telecommunications,
Sr. Notes, 9.75%, 2008 305,000 315,675
2,978,862
TRANSPORTATION--.6%
Burlington North Santa Fe,
Deb., 6.75%, 2029 270,000 235,583
Union Pacific,
Notes, 7.25%, 2008 320,000 310,223
545,806
UTILITIES--2.8%
Avon Energy Partners Holdings,
Sr. Notes, 6.73%, 2002 950,000 (a) 933,486
CMS Panhandle Holdings,
Sr. Notes, 6.125%, 2004 599,000 567,297
National Rural Utilities,
Coll. Trust Ctfs, 5.7%, 2010 790,000 696,093
Niagara Mohawk Power,
First Mortgage Bonds, 8%, 2004 306,000 310,081
2,506,957
FOREIGN--4.3%
Abbey National,
Sub. Deb, 7.95%, 2029 378,000 378,705
Canadian National Railway,
Notes, 6.9%, 2028 370,000 330,197
Diageo Capital,
Notes, 6.625%, 2004 960,000 940,287
Korea Development Bank,
Bond, 7.375%, 2004 970,000 953,498
Province of Quebec:
Deb., 7.125%, 2024 165,000 154,557
Sr. Notes, 5.75%, 2009 795,000 712,034
Republic of Korea,
Note, 8.875%, 2008 325,000 341,971
3,811,249
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENTS--3.2%
U.S. Treasury Bonds,
7.25%, 8/15/2022 2,695,000 (b) 2,843,387
U.S. GOVERNMENT AGENCIES/MORTGAGE-BACKED--35.9%
Federal Home Loan Mortgage Corp.:
6.5%, 5/1/2029-7/1/2029 6,426,016 (b) 6,065,385
7%, 7/1/2029-9/1/2029 2,541,063 2,462,233
Federal National Mortgage Association:
5.75%, 2003 666,000 647,166
6.5% 12,653,946 (d) 11,930,267
7%, 7/1/2022-7/1/2023 587,597 573,580
7.5% 5,957,168 (d) 5,893,843
7.5%, 4/1/2005-10/1/2014 608,315 612,041
Government National Mortgage Association I:
6.5%, 1/15/2029-2/15/2029 1,923,862 1,807,219
8% 2,198,328 (d) 2,221,674
32,213,408
TOTAL BONDS AND NOTES
(cost ($91,707,376) 88,576,101
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--23.0%
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES
Associates Corp. of North America,
4%, 1/3/2000
(cost $20,597,000) 20,597,000 20,597,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $112,304,376) 121.8% 109,173,101
LIABILITIES, LESS CASH AND RECEIVABLES (21.8%) (19,547,123)
NET ASSETS 100.0% 89,625,978
A SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES
ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT
FROM REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT
DECEMBER 31,1999, THESE SECURITIES AMOUNTED TO $2,905,837 OR 3.2% OF
NET ASSETS.
B SECURITIES HELD IN WHOLE OR IN PART BY THE CUSTODIAN IN A SEGREGATED
ACCOUNT AS COLLATERAL FOR SECURITIES PURCHASED ON A FORWARD COMMITMENT
BASIS.
C ZERO COUPON UNTIL YEAR AT WHICH TIME A STATED COUPON BECOMES
EFFECTIVE.
D PURCHASED ON A FORWARD COMMITMENT BASIS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 112,304,376 109,173,101
Cash 216,215
Interest receivable 1,073,024
Receivable for shares of Beneficial Interest subscribed 9,033
110,471,373
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 79,537
Due to Distributor 4,614
Payable for investment securities purchased 20,356,858
Payable for shares of Beneficial Interest redeemed 404,386
20,845,395
- --------------------------------------------------------------------------------
NET ASSETS ($) 89,625,978
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 104,204,587
Accumulated undistributed investment income--net 11,282
Accumulated net realized gain (loss) on investments (11,458,616)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 (3,131,275
NET ASSETS ($) 89,625,978
NET ASSET VALUE PER SHARE
<TABLE>
Class A Class B Class C Class R
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 60,755,407 15,905,315 3,694,946 9,270,310
Shares Outstanding 6,082,423 1,592,546 369,606 928,857
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 9.99 9.99 10.00 9.98
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended December 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 6,989,176
EXPENSES:
Management fee--Note 2(a) 683,834
Distribution and service fees--Note 2(b) 381,025
Loan commitment fees--Note 4 839
TOTAL EXPENSES 1,065,698
INVESTMENT INCOME--NET 5,923,478
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 3 ($):
Net realized gain (loss) on investments (5,146,935)
Net unrealized appreciation (depreciation) on investments (2,712,897)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (7,859,832)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (1,936,354)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
---------------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 5,923,478 6,350,123
Net realized gain (loss) on investments (5,146,935) 1,022,323
Net unrealized appreciation (depreciation)
on investments (2,712,897) (2,710,587)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS (1,936,354) 4,661,859
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (4,065,094) (4,912,986)
Class B shares (890,296) (615,010)
Class C shares (262,662) (146,175)
Class R shares (622,919) (787,520)
TOTAL DIVIDENDS (5,840,971) (6,461,691)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 5,871,958 9,151,854
Class B shares 8,678,168 12,907,066
Class C shares 2,251,472 5,118,598
Class R shares 2,530,647 10,863,405
Dividends reinvested:
Class A shares 3,144,076 3,841,225
Class B shares 399,234 301,251
Class C shares 48,577 30,245
Class R shares 559,559 668,194
Cost of shares redeemed:
Class A shares (14,888,410) (12,634,036)
Class B shares (8,181,002) (3,590,805)
Class C shares (3,580,979) (732,720)
Class R shares (3,732,725) (11,633,078)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (6,899,425) 14,291,199
TOTAL INCREASE (DECREASE) IN NET ASSETS (14,676,750) 12,491,367
- --------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 104,302,728 91,811,361
END OF PERIOD 89,625,978 104,302,728
Undistributed investment income
(distributions in excess of
investment income)--net 11,282 (71,225)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended December 31,
---------------------------------
1999 1998
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A (A)
Shares sold 563,004 831,761
Shares issued for dividends reinvested 303,602 349,834
Shares redeemed (1,433,912) (1,150,108)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (567,306) 31,487
- --------------------------------------------------------------------------------
CLASS B (A)
Shares sold 832,744 1,184,201
Shares issued for dividends reinvested 38,617 27,508
Shares redeemed (788,447) (328,343)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 82,914 883,366
- --------------------------------------------------------------------------------
CLASS C
Shares sold 214,283 469,333
Shares issued for dividends reinvested 4,697 2,760
Shares redeemed (345,558) (67,335)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (126,578) 404,758
- --------------------------------------------------------------------------------
CLASS R
Shares sold 242,029 995,589
Shares issued for dividends reinvested 54,093 60,836
Shares redeemed (357,508) (1,068,058)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (61,386) (11,633)
A DURING THE PERIOD ENDED DECEMBER 31, 1999, 3,908 CLASS B SHARES REPRESENTING
$39,354 WERE AUTOMATICALLY CONVERTED TO 3,908 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover) reflects
financial results for a single fund share. Total return shows how much your
investment in the fund would have increased (or decreased) during each period ,
assuming you had reinvested all dividends and distributions. These figures have
been derived from the fund's financial statements.
<TABLE>
Year Ended December 31,
--------------------------------------------
CLASS A SHARES 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 10.81 11.01 10.73 11.08 10.12
Investment Operations:
Investment income--net .64 .73 .73 .69 .75
Net realized and unrealized gain (loss)
on investments (.82) (.19) .27 (.35) .96
Total from Investment Operations (.18) .54 1.00 .34 1.71
Distributions:
Dividends from investment income--net (.64) (.74) (.72) (.69) (.75)
Net asset value, end of period 9.99 10.81 11.01 10.73 11.08
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (1.75) 4.90 9.80 3.42 17.32
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .95 .95 .95 .95 .95
Ratio of net investment income
to average net assets 6.21 6.62 6.74 6.48 7.08
Portfolio Turnover Rate 309.42 238.95 244.44 251.66 236.10
- ---------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 60,755 71,902 72,878 77,305 80,782
A EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended December 31,
--------------------------------------------
CLASS B SHARES 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 10.81 11.01 10.73 11.08 10.12
Investment Operations:
Investment income--net .57 .64 .65 .61 .67
Net realized and unrealized gain (loss)
on investments (.83) (.19) .27 (.35) .96
Total from Investment Operations (.26) .45 .92 .26 1.63
Distributions:
Dividends from investment income--net (.56) (.65) (.64) (.61) (.67)
Net asset value, end of period 9.99 10.81 11.01 10.73 11.08
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (2.48) 4.10 8.97 2.54 16.55
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.70 1.70 1.70 1.70 1.69
Ratio of net investment income
to average net assets 5.44 5.81 5.98 5.77 6.41
Portfolio Turnover Rate 309.42 238.95 244.44 251.66 236.10
- ---------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 15,905 16,325 6,896 4,973 2,236
A EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended December 31,
--------------------------------------------
CLASS C SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 10.82 11.02 10.73 11.08 10.12
Investment Operations:
Investment income--net .57 .64 .64 .61 .67
Net realized and unrealized gain (loss)
on investments (.83) (.19) .29 (.35) .96
Total from Investment Operations (.26) .45 .93 .26 1.63
Distributions:
Dividends from investment income--net (.56) (.65) (.64) (.61) (.67)
Net asset value, end of period 10.00 10.82 11.02 10.73 11.08
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (2.48) 4.17 8.96 2.49 16.54
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.70 1.69 1.70 1.68 1.66
Ratio of net investment income
to average net assets 5.46 5.74 5.95 5.69 6.03
Portfolio Turnover Rate 309.42 238.95 244.44 251.66 236.10
- ----------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 3,695 5,369 1,007 420 67
A EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended December 31,
--------------------------------------------
CLASS R SHARES 1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 10.81 11.01 10.73 11.08 10.12
Investment Operations:
Investment income--net .67 .74 .76 .72 .78
Net realized and unrealized gain (loss)
on investments (.84) (.17) .27 (.35) .96
Total from Investment Operations (.17) .57 1.03 .37 1.74
Distributions:
Dividends from investment income--net (.66) (.77) (.75) (.72) (.78)
Net asset value, end of period 9.98 10.81 11.01 10.73 11.08
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (A) (1.57) 5.26 9.97 3.58 17.71
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .70 .70 .70 .70 .70
Ratio of net investment income
to average net assets 6.45 6.77 6.99 6.74 7.31
Portfolio Turnover Rate 309.42 238.95 244.44 251.66 236.10
- --------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 9,270 10,707 11,031 12,567 11,532
A EXCLUSIVE OF SALES CHARGE.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Managed Income Fund (the "fund") is a separate diversified
series of The Dreyfus/Laurel Funds Trust (the "Trust") which is registered under
the Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company and operates as a series company currently
offering three series, including the fund. The fund's investment objective is to
seek high current income consistent with what is believed to be prudent risk of
capital primarily through investments in investment-grade corporate and U.S.
Government obligations and in obligations having maturities of 10 years or less.
The Dreyfus Corporation (the "Manager") serves as the fund's investment manager.
The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon Bank"), which
is a wholly-owned subsidiary of Mellon Financial Corporation.
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").
Class B and Class C shares bear 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 (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 $10,733,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to December 31, 1999. If not
applied, $4,554,000 of the carryover expires in fiscal 2002, $539,000 expires in
fiscal 2003, $1,207,000 expires in fiscal 2004 and $4,433,000 expires in fiscal
2007.
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 fees). 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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
$1,125 during the period ended December 31, 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
December 31, 1999, Class A, Class B and Class C shares were charged $166,005,
$124,609 and $36,656 respectively, pursuant to the Plan and Class B and Class C
shares were charged $41,536 and $12,219, respectively, pursuant to the Service
Plan.
Under its terms, the Plan and Service Plan shall remain in effect from year to
year, provided such continuance is approved annually by a vote of majority of
those trustees who are not "interested persons" of the Trust and who have no
direct or indirect financial interest in the operation of or in any agreement
related to the Plan or Service Plan.
NOTE 3--Securities Transactions:
The aggregate amount of purchases and sales (including paydowns) of investment
securities, excluding short-term securities, during the period ended December
31, 1999, amounted to $299,555,436 and $305,938,872, respectively.
At December 31, 1999, accumulated net unrealized depreciation on investments was
$3,131,275, consisting of $136,930 gross unrealized appreciation and $3,268,205
gross unrealized depreciation.
At December 31, 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 $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
December 31, 1999, the fund did not borrow under the Facility.
The Fund
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders
The Dreyfus/Laurel Funds Trust:
We have audited the accompanying statement of assets and liabilities of Dreyfus
Premier Managed Income Fund of The Dreyfus/Laurel Funds Trust, including the
statement of investments, as of December 31, 1999, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
as of December 31, 1999, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Managed Income Fund of The Dreyfus/Laurel Funds Trust as of
December 31, 1999, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the period then
ended, in conformity with generally accepted accounting principles.
New York, New York
February 9, 2000
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) 2000 Dreyfus Service Corporation 349AR9912
================================================================================
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS PREMIER CORE VALUE FUND CLASS A SHARES WITH THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX AND THE
STANDARD & POOR'S 500 BARRA VALUE INDEX
EXHIBIT A:
DREYFUS STANDARD
PREMIER & POOR'S STANDARD
CORE 500 & POOR'S
VALUE COMPOSITE 500
PERIOD FUND STOCK BARRA
(CLASS A PRICE VALUE
SHARES) INDEX* INDEX*
12/31/89 9,424 10,000 10,000
12/31/90 8,158 9,689 9,315
12/31/91 10,024 12,634 11,416
12/31/92 10,428 13,596 12,619
12/31/93 12,149 14,964 14,966
12/31/94 12,191 15,160 14,872
12/31/95 16,527 20,849 20,374
12/31/96 20,070 25,634 24,855
12/31/97 25,129 34,183 32,308
12/31/98 26,901 43,959 37,051
12/31/99 31,551 53,205 41,763
*Source: Lipper Analytical Services, Inc.
================================================================================
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
PREMIER LIMITED TERM HIGH INCOME FUND CLASS A SHARES, CLASS B
SHARES, CLASS C SHARES AND CLASS R SHARES WITH THE MERRILL LYNCH
HIGH YIELD MASTER II INDEX AND A CUSTOMIZED LIMITED TERM HIGH YIELD INDEX
EXHIBIT A:
DREYFUS DREYFUS DREYFUS DREYFUS
PREMIER PREMIER PREMIER PREMIER
CUSTO- LIMITED LIMITED LIMITED LIMITED
MERRILL MIZED TERM TERM TERM TERM
LYNCH LIMITED HIGH HIGH HIGH HIGH
HIGH TERM INCOME INCOME INCOME INCOME
YIELD HIGH FUND FUND FUND FUND
PERIOD MASTER YIELD (CLASS A (CLASS B (CLASS C (CLASS R
II INDEX* INDEX * SHARES) SHARES) SHARES) SHARES)
6/2/97 10,000 10,000 9,549 10,000 10,000 10,000
12/31/97 10,856 10,632 10,063 10,504 10,497 10,544
12/31/98 11,176 11,128 10,053 10,441 10,399 10,559
12/31/99 11,457 11,711 10,253 10,344 10,527 10,795
*Source: Bloomberg L.P.
================================================================================
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER MANAGED INCOME FUND CLASS A SHARES
AND THE LEHMAN BROTHERS AGGREGATE BOND INDEX
EXHIBIT A:
DREYFUS PREMIER
MANAGED LEHMAN BROTHERS
PERIOD INCOME FUND AGGREGATE
(CLASS A SHARES) BOND INDEX*
12/31/89 9,553 10,000
12/31/90 9,973 10,896
12/31/91 11,672 12,639
12/31/92 12,695 13,575
12/31/93 14,540 14,898
12/31/94 13,793 14,463
12/31/95 16,183 17,135
12/31/96 16,736 17,757
12/31/97 18,375 19,470
12/31/98 19,275 21,162
12/31/99 18,938 20,991
*Source: Lipper Analytical Services, Inc.
================================================================================
