DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
CALIFORNIA TAX-FREE MONEY
MASSACHUSETTS TAX-FREE MONEY
NEW YORK TAX-FREE MONEY
DESCRIPTION OF ART WORK ON REPORT COVER
Small box above fund name showing a lions face.
DEAR SHAREHOLDER,
We are pleased to provide you with the Dreyfus/Laurel California, New York
and Massachusetts Tax-Free Money Funds' Annual Report for the year ended
June 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on each Fund's investment strategy and
detailed financial statements for the past year.
As you know, the Funds have been integrated into The Dreyfus Family of
Funds. We hope that you found the transition from The Laurel Funds to The
Dreyfus Family of Funds to be a smooth one. The extended family of funds
now offers you more investment alternatives in addition to expanded ser-
vices and privileges to better serve your investment needs.
We would like to extend our appreciation for your support of The Dreyfus
Family of Funds and hope that the Funds will continue to satisfy your in-
vestment needs. As always, we welcome your thoughts and suggestions.
Sincerely,
Marie E. Connolly
Marie E. Connolly
President
The Dreyfus/Laurel Tax-Free Municipal Funds --
Dreyfus/Laurel California Tax-Free Money Fund
Dreyfus/Laurel Massachusetts Tax-Free Money Fund
Dreyfus/Laurel New York Tax-Free Money Fund
August 18, 1995
TABLE OF CONTENTS
Shareholder Letter 1
Economic Review 3
Portfolio Overview 4
Portfolio of Investments 5
Statements of Assets and Liabilities 16
Statements of Operations 18
Statements of Changes in Net Assets 19
Financial Highlights 22
Notes to Financial Statements 33
Independent Auditors' Report 39
Tax Information 40
ECONOMIC REVIEW
ECONOMIC SLOWDOWN IS MARKED BUT NOT RECESSIONARY
The economic slowdown long hoped for by many analysts and strongly pursued
by the Federal Reserve Board (the "Fed") finally took hold over the past
six months. In fact, the economy slowed more than expected as evidenced by
the Fed's quarter point decrease in interest rates in early July. The so-
called leading indicators posted three consecutive monthly drops, with
economic activity contracting in the spring quarter for the first time in
four years. Employment weakness in April and May signified that the slow-
down had begun to erode the economy's income-generating capacity somewhat,
slowing down the advance in spendable income.
Nonetheless, we are confident that a recession is not underway. First of
all, the economy is not exhibiting the financial stresses and imbalances
that often mark the end of an expansion. For example, business balance
sheets are strong, even at smaller companies. Many firms have also built a
cushion into profit margins by reducing fixed labor costs like health care
benefits. Consumer financial positions are in excellent shape, allowing
leeway to survive a no-growth, low-inflation environment. Rallies in stock
and bond markets have boosted consumer net worth. Meanwhile, borrowing is
vigorous and we believe should remain so, further spurring consumer spend-
ing.
A second comforting factor is the unprecedented speed with which busi-
nesses have adjusted their production schedules to the new economic reali-
ties. By limiting the buildup of unwanted inventories, businesses have
lowered their operating rates considerably. Furthermore, business caution
is extending into the third quarter. While this low production may result
in sluggish overall growth during the summer, it should help keep a better
balance between supply and demand.
A BRIGHTER INFLATION OUTLOOK
Economic deceleration is exactly what the Fed wanted to cool rising infla-
tion expectations, and we believe it's working. The abrupt character of
the slowdown did shock some businesses who concluded they could not raise
prices and keep their customers. Auto incentives are proliferating, and
now steel makers have begun to cut prices to win market share. Even basic
materials producers are offering price cuts, as last year's speculative
inventory buildups now seem counterproductive.
In general, lower operating costs are opening a gap between supply and de-
mand that is alleviating price increase pressure. And while the dollar's
decline could be expected to generate higher import prices that would add
to domestic price pressures, import prices are actually not rising any
faster than domestically- produced finished goods. In other words, a se-
lective and value-conscious consumer has the upper hand with both domestic
and imported suppliers.
MONEY MARKET DEVELOPMENTS
During the six-month period ended June 30, 1995, money market yields were
firm and in a rising mode while the Fed remained in its money-tightening
stance. As the market's expectations began to change, so did the level of
money market yields. When the Federal Open Market Committee took its ac-
tion on July 6, yields of course declined to reflect the Fed's new think-
ing.
Now that the rate cut is in effect, we think that the policy of cautious
easing may well continue with some incremental rate decreases until the
Federal Reserve is convinced that recession is not a threat.
Forward-looking inflation indicators like the price diffusion index and
supplier delivery index, both published by the national purchasing manag-
ers, portend smaller inflation increases. These indicators will be partic-
ularly important to Fed policymakers seeking to keep the economic slowdown
from becoming more troublesome.
The Fed will want to retain market confidence that it is not abandoning
its anti-inflation stance. For this reason we anticipate that any further
steps to reduce interest rates would be in small, quarter-point incre-
ments, like the first one. This approach would allow the Fed to assist the
economy and still have the time to assess the ongoing stream of new eco-
nomic data to determine the effect of its new economic policy. And it
would finely balance the Fed's genuine uncertainty as to whether the pause
in economic growth will be short-lived.
PORTFOLIO OVERVIEW
During the last six months, U.S. economic activity declined gradually. As
might be expected, this eventually brought about a drop in interest rates.
Weaker than anticipated economic data during the second quarter of 1995
raised doubts about the Fed's ability to implement an ideal "soft land-
ing". Many market participants and economists felt that the Federal Re-
serve might have tightened too aggressively in 1994 and that the economy
might even enter a recession later this year.
The market, however, anticipated a change in Fed policy which in fact, did
occur in early July. Yields for both the one-year Treasury bill and the
one-year tax-exempt note plummeted during the second quarter. Demand for
tax-exempt cash instruments fluctuated primarily due to seasonal factors
such as Federal income tax outflows. However, as the half-year ended, de-
mand again outpaced available supply. Consequently. tax-exempt money mar-
ket rates are currently at favorable levels compared to taxable money mar-
ket rates.
In order to seek benefits for the Funds from the falling interest rate en-
vironment, we kept the average weighted maturity of each Fund relatively
long.
We would also like you to know that the Funds do not hold any derivatives.
PORTFOLIO OF INVESTMENTS
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND JUNE 30, 1995
<TABLE>
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.4%
CALIFORNIA -- 97.4%
$ 900,000 Anaheim, California, Multifamily Housing Reve-
nue,
4.050% due 08/01/20+ $ 900,000
California Educational Facilitiies Authority
Revenue,
200,000 8.625% due 01/01/16++ 208,165
1,200,000 9.125% due 02/01/16++ 1,256,184
100,000 California Housing Finance Authority Revenue,
3.950% due 07/15/13+ 100,000
California Health Facilities Authority Revenue:
400,000 (Granada Medical Project),
4.250% due 01/01/15+ 400,000
200,000 (Pooled Loan Program),
4.050% due 10/01/10+ 200,000
(Saint Joseph):
750,000 4.500% due 08/01/17++ 750,000
95,000 4.100% due 07/01/13+ 95,000
California Pollution Control Financing Author-
ity, Pollution Control Revenue:
1,150,000 (Champlin Petroleum),
4.550% due 06/01/03++ 1,150,000
(South Down, Inc.):
400,000 3.400% due 02/15/98++++ 400,000
300,000 3.400% due 04/15/98++++ 300,000
Series B:
200,000 (Shell Oil Co.),
4.050% due 10/01/11++++ 200,000
300,000 (Rocklin),
4.300% due 06/01/17+ 300,000
200,000 (Delano),
4.250% due 08/01/19+ 200,000
100,000 Series C, (Shell Oil Co.),
4.050% due 11/01/00+ 100,000
1,000,000 Series E, (Pacific Gas and Electricity),
4.200% due 07/13/95++++ 1,000,000
500,000 (Southern California Edison Inc.), Series D,
3.200% due 03/01/08++ 500,000
California Statewide, Community Development
Revenue:
200,000 3.850% due 08/01/19+ 200,000
675,000 3.850% due 06/01/04++ 675,000
100,000 Concord, California, Multifamily Housing Reve-
nue,
3.950% due 07/15/18+ 100,000
800,000 Contra Costa, California, Transportation Au-
thority,
3.900% due 03/01/09++ 800,000
700,000 East Bay, California, Municipal Utillity Dis-
trict,
7.000% due 03/01/08++ 729,461
490,000 Healdsburg, California, Community
Redevelopment Agency,
4.200% due 01/01/98+ 490,000
450,000 Huntington Park, California, Redevelopment
Agency,
5.100% due 08/01/15++ 449,195
300,000 Kern County, California, Certificates of Par-
ticipation, Series D,
3.900% due 08/01/06+ 300,000
1,000,000 Long Beach, California, Harbor Department Reve-
nue, Series A-2,
4.150% due 03/04/23++ 1,000,000
100,000 Los Angeles, California, Community Development
Agency, Multifamily Housing Revenue,
3.95% due 07/01/15++ 100,000
400,000 Los Angeles, California, Transportation Author-
ity, Regional Airports, Series E,
4.350% due 12/01/24+ 400,000
500,000 Los Angeles County, California, Local Tax
and Revenue Anticipation Notes,
4.500% due 07/01/96++ 503,350
1,350,000 Los Angeles, California, Local Transportation
Authority,
4.500% due 07/06/95 1,350,134
100,000 Los Angeles County, California, Multifamily
Housing Authority, (Poinsettia Project),
3.850% due 07/01/19+ 100,000
1,000,000 Metropolitan Water District,
5.000% due 04/25/96++ 1,005,956
400,000 Monterey Peninsula, California,
Water Managment District,
4.350% due 07/01/22+ 400,000
1,500,000 Northern California Power Agency,
9.750% due 07/01/08++ 1,530,001
400,000 Ontario, California, Multifamily Housing Au-
thority, (Vineyard Project),
4.050% due 12/01/05+ 400,000
400,000 Palm Springs, California, Community
Redevelopment Agency,
4.550% due 12/01/14++ 400,000
675,000 Rincon Del Diablo, California, Water District,
4.350% due 02/01/15++ 675,000
500,000 Sacramento County, California, Certificates of
Participation,
3.650% due 06/01/20+ 500,000
200,000 Sacramento County, California, Multifamily
Housing Revenue, Series A,
4.100% due 04/15/07+ 200,000
500,000 Sacramento County, California, Municipal Util-
ity District,
4.050% due 07/17/95 500,000
735,000 San Diego, California, Multifamily Housing Rev-
enue, (Market Street Square Project),
4.350% due 11/01/25+ 735,000
500,000 San Francisco, California,
Bay Area Rapid Transit Authority,
(737 Post Project), Series D
8.750% due 07/01/04++ 515,001
250,000 Santa Cruz County, California, Industrial De-
velopment Authority,
3.850% due 11/01/18+ 250,000
TOTAL INVESTMENTS
(Cost $22,367,447*) 97.4% 22,367,447
OTHER ASSETS AND LIABILITIES (NET) 2.6 600,130
NET ASSETS 100.0% $22,967,577
<FN>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand bonds payable upon not more than seven calendar
days' notice. The interest rate shown reflects the rate currently in
effect.
++ Put bonds and notes have demand features to mature within one year.
+++ Variable daily demand notes are payable upon not more than one busi-
ness day's notice. The interest rate shown reflects the rate cur-
rently in effect.
++++ Variable daily demand notes are payable upon not more than 30 calen-
dar days' notice. The interest rate shown reflects the rate currently
in effect.
</TABLE>
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND JUNE 30, 1995
<TABLE>
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 101.4%
MASSACHUSETTS -- 101.4%
$1,000,000 Attleboro, Massachusetts, Bond Anticipation
Notes,
4.500% due 07/07/95 $ 1,000,049
400,000 Auburn, Massachusetts, State Aid Anticipation
Notes,
3.850% due 08/25/95 400,000
1,700,000 Boston, Massachusetts, Water & Sewer Commission
Revenue,
4.050% due 11/01/24+ 1,700,000
3,000,000 Bristol, Massachusetts, Revenue Anticipation
Notes,
4.160% due 06/28/96 3,000,000
100,000 East Brookfield, Massachusetts, Revenue Antici-
pation Notes,
4.010% due 06/19/96 100,000
1,215,000 Edgartown, Massachusetts, Bond Anticipation
Notes,
3.210% due 08/18/95 1,215,000
260,000 Everett, Massachusetts, General Obligation
Bonds,
6.000% due 10/15/95 261,296
256,000 Farmington, Massachusetts, Bond Anticipation
Notes,
4.120% due 06/21/96 256,000
310,000 Franklin, Massachusetts, State Aid Anticipation
Notes,
3.960% due 08/31/95 310,000
1,000,000 Gloucester, Massachusetts, Bond Anticipation
Notes,
4.460% due 10/06/95 1,000,000
2,527,000 Gloucester, Massachusetts, State Aid Anticipa-
tion Notes,
4.460% due 10/06/95 2,527,000
200,000 Holyoke, Massachusetts, Pollution Control Reve-
nue,
3.950% due 11/01/13+ 200,000
Massachusetts Bay Transportation Authority:
2,500,000 3.800% due 07/12/95 2,500,000
Series A:
400,000 5.000% due 03/01/96 402,573
2,000,000 5.500% due 03/01/96 2,010,898
3,000,000 4.400% due 03/01/14++ 3,000,000
Massachusetts Health & Educational Facilities:
4,000,000 3.500% due 08/17/95 4,000,000
2,000,000 4.150% due 01/01/35+ 2,000,000
1,600,000 Project A,
4.000% due 01/01/01+ 1,600,000
1,000,000 Series A,
3.950% due 11/01/26+ 1,000,000
3,500,000 Series F,
3.950% due 07/01/24+ 3,500,000
1,150,000 (Boston University),
8.875% due 07/01/15++ 1,167,295
7,000,000 Series H,
3.550% due 12/01/15++ 7,000,000
1,000,000 (Capital Asset Program), Series B,
3.850% due 07/01/22+ 1,000,000
2,000,000 Series D,
3.900% due 08/01/14+ 2,000,000
1,070,000 (Harvard University),
3.550% due 08/01/17+ 1,070,000
300,000 Series I, 3.550% due 02/01/16+ 300,000
1,340,000 Series L, 3.000% due 01/01/24+ 1,340,000
300,000 (Massachusetts Institute of Technology),
Series G,
3.400% due 07/01/21+ 300,000
4,700,000 (Tufts University), Series E,
Commercial Paper,
3.100% due 08/01/03+ 4,700,000
Massachusetts Industrial Finance Agency:
750,000 4.100% due 03/15/04+ 750,000
2,500,000 5.250% due 09/01/11++ 2,500,000
(Berkshire Project), Refunding Revenue:
1,200,000 4.000% due 09/01/20+ 1,200,000
900,000 3.900% due 04/01/23+ 900,000
2,550,000 (Cabot Newburyport Ltd.),
4.000% due 01/01/99+ 2,550,000
1,715,000 (Chestnut Housing Apartments),
3.850% due 08/01/26+ 1,715,000
(Family YMCA Project):
2,030,000 4.000% due 06/01/09+ 2,030,000
1,700,000 4.000% due 06/01/19+ 1,700,000
900,000 (Holyoke Water Power),
3.950% due 05/01/22+ 900,000
3,985,000 (First Healthcare Corporation), Refunding Rev-
enue,
4.150% due 04/01/13+ 3,985,000
500,000 (General Signal Corporation), General
Obligation Bond,
3.900% due 07/01/04+ 500,000
1,100,000 (Manhasset Bay Cambridge),
3.7000% due 10/01/10+ 1,100,000
4,450,000 (New England Power Company), Pollution
Control Revenue,
4.200% due 10/01/22+ 4,450,000
2,200,000 (Odgen Haverhill Project),
3.900% due 12/01/06 + 2,200,000
(Quamco):
2,895,000 Series A,
3.600% due 09/01/01+ 2,895,000
1,300,000 Series B,
3.600% due 09/01/01+ 1,300,000
220,000 Refunding Revenue, Series A,
3.850% due 07/01/96+ 220,000
735,000 Series B,
3.850% due 07/01/08+ 735,000
5,000,000 Massachusetts Municipal Wholesale Electric
Company, Power Supply,
3.850% due 07/01/19+ 5,000,000
Massachusetts State, Updates:
800,000 Series B,
4.200% due 12/01/97+ 800,000
600,000 Series E,
4.200% due 12/01/97+ 600,000
5,000,000 Massachusetts Water Resource Authority,
3.050% due 08/07/95 5,000,000
1,109,500 Merrimack, Massachusetts, Bond
Anticipation Notes,
4.010% due 08/17/95 1,109,500
985,600 Mohawk Trail Regional School District, Bond An-
ticipation Notes,
4.510% due 05/17/96 985,600
1,135,000 North Andover, Massachusetts, Bond
Anticipation Notes,
5.500% due 01/11/96 1,136,429
222,000 North Brookfield, Massachusetts, Bond
Anticipation Notes,
4.970% due 09/01/95 222,000
125,000 North Middlesex, Massachusetts School
District, Bond Anticipation Notes,
4.150% due 06/13/96 125,000
Pepperell, Massachusetts, Bond
Anticipation Notes:
275,000 3.870% due 07/28/95 275,000
188,731 3.910% due 09/22/95 188,731
900,000 Spencer, Massachusetts, Revenue
Anticipation Notes,
4.300% due 11/03/95 900,000
200,000 Wayland, Massachusetts, State Aid
Anticipation Notes,
4.050% due 09/15/95 200,000
Worcester County, Massachusetts,
Bond Anticipation Notes:
2,000,000 4.010% due 08/31/95 2,000,000
1,600,000 4.950% due 01/25/96 1,600,000
TOTAL INVESTMENTS
(Cost $102,632,371*) 101.4% 102,632,371
OTHER ASSETS AND LIABILITIES (NET) (1.4) (1,401,331)
NET ASSETS 100.0% $101,231,040
<FN>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand bonds payable upon not more than seven calendar
days' notice. The interest rate shown reflects the rate currently in ef-
fect.
++ Put bonds and notes have demand features to mature within one year. The
interest rate shown reflects the rate currently in effect.
</TABLE>
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND JUNE 30, 1995
<TABLE>
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 100.1%
NEW YORK -- 91.1%
Babylon, New York, Industrial Development
Revenue:
$ 300,000 3.700% due 04/01/00+ $ 300,000
300,000 4.400% due 12/01/24+ 300,000
250,000 Broome County, New York, Industrial Development
Revenue,
4.000% due 12/15/03+ 250,000
500,000 Franklin County, New York, Industrial Develop-
ment Agency, Series A,
4.050% due 07/01/21+ 500,000
400,000 Hemstead Town, New York, Series A,
5.250% due 03/01/96 401,784
100,000 Jefferson County, New York, Industrial
Development Revenue,
4.060% due 12/01/12+++ 100,000
200,000 Metropolitan Transportation Authority,
New York,
3.750% due 07/01/21+ 200,000
300,000 Monroe County, New York, Industrial
Development Agency,
3.700% due 10/01/00+ 300,000
200,000 Montgomery, New York, Industrial Development
Agency, (Service Merchandise),
4.000% due 12/31/24+++ 200,000
700,000 New York City Municipal Water, Finance Author-
ity,
4.500% due 06/15/25+ 700,000
New York City, New York, General Obligation
Bonds:
100,000 Series A,
4.250% due 08/15/23+ 100,000
800,000 Series A-6,
4.000% due 08/01/18+ 800,000
500,000 Series A-9,
4.200% due 08/01/18+ 500,000
Series B:
200,000 4.550% due 08/15/21+ 200,000
200,000 4.500% due 10/01/21+ 200,000
200,000 Series F-3,
4.250% due 02/15/13+ 200,000
New York City, New York, Housing Development
Corporation:
500,000 3.850% due 07/01/05+ 500,000
300,000 4.000% due 02/01/07+ 300,000
500,000 3.900% due 12/15/24+ 500,000
600,000 3.8000% due 03/15/25+ 600,000
1,000,000 Special Obligation-96-A,
3.750% due 08/01/15+ 1,000,000
New York State Dormitory Authority Revenue:
1,200,000 3.900% due 07/01/15+ 1,200,000
300,000 8.750% due 07/01/15++ 306,072
New York State Energy Research & Development
Authority, Pollution Control Revenue:
700,000 3.800% due 10/01/14+++ 700,000
100,000 4.550% due 07/01/15+ 100,000
250,000 4.100% due 10/15/15++ 250,000
300,000 4.600% due 12/01/15++ 300,000
500,000 4.100% due 11/01/23+ 500,000
700,000 4.650% due 12/01/23++ 700,000
New York State Housing Finance Agency:
500,000 (Liberty),
4.000% due 11/01/05+ 500,000
500,000 (Sanai School),
4.000% due 11/01/14+ 500,000
100,000 Series PJ,
3.900% due 05/15/15+ 100,000
New York State Job Development Authority:
225,000 3.600% due 03/01/99+++ 225,000
400,000 3.650% due 03/01/00+++ 400,000
200,000 4.200% due 03/01/07+ 200,000
1,300,000 New York State Local Assistance Corporation,
Series B,
3.700% due 04/01/23+ 1,300,000
New York State Medical Care Facility:
1,050,000 Series C,
8.625% due 01/15/06++ 1,099,062
1,000,000 King Hospital Project,
8.500% due 01/15/22++ 1,046,061
New York State Power Authority, Utility Reve-
nue:
500,000 7.400% due 01/01/06++ 517,453
400,000 7.375% due 01/01/18++ 413,802
500,000 New York State, Series P, General Obligation,
4.100% due 07/18/95++ 500,000
Niagara County, New York:
400,000 General Obligation,
Series A,
4.200% due 11/15/24+ 400,000
500,000 Series 94B,
4.350% due 08/11/95 500,000
700,000 Niagara Falls, New York, Transportation Author-
ity,
4.000% due 10/01/19++ 700,000
300,000 Onondaga County, New York, Industrial
Development Agency,
Seymor Project,
3.300% due 06/15/97+++ 300,000
900,000 Saint Charles County, New York, Industrial De-
velopment Authority,
4.150% due 10/01/07+ 900,000
300,000 Saint Lawrence County, New York, Industrial De-
velopment Center,
4.000% due 05/01/25+ 300,000
700,000 Suffolk County, New York, Industrial Develop-
ment Center,
3.850% due 01/01/14+ 700,000
500,000 Suffolk County, New York, Tax Anticipation
Notes,
5.250% due 08/15/95 500,428
575,000 Tonawanda, New York,
4.210% due 12/21/95 575,369
Triborough Bridge & Tunnel Authority:
600,000 7.625% due 01/01/14++ 624,101
200,000 3.750% due 01/01/24+ 200,000
1,000,000 Wappingers, New York, Central School District,
4.125% due 06/14/96 1,004,370
306,000 West Genesee, New York, Central
School District,
4.700% due 06/01/96 307,766
600,000 Westchester County, New York,
5.000% due 12/14/95 601,321
490,000 White Plains, New York, City School District,
4.500% due 06/15/96 492,492
27,115,081
ALASKA -- 1.0%
300,000 Anchorage, Alaska, Higher Education for Pac
University,
4.500% due 07/01/17+ 300,000
PUERTO RICO -- 8.0%
Puerto Rico Commonwealth, Government
Development Bank:
600,000 3.800% due 12/01/15+ 600,000
Commercial Paper:
700,000 2.800% due 07/17/95++ 700,000
500,000 3.900% due 07/20/95++ 500,000
100,000 Puerto Rico Commonwealth, Highway and Transpor-
tation Authority,
3.800% due 07/01/99+ 100,000
200,000 Puerto Rico Commonwealth, Industrial Develop-
ment: Industrial Control,
4.050% due 12/01/15+ 200,000
300,000 Pollution Control,
4.350% due 12/01/13++ 300,262
2,400,262
TOTAL INVESTMENTS
(Cost $29,815,343*) 100.1% 29,815,343
OTHER ASSETS AND LIABILITIES (NET) (0.1) (25,877)
NET ASSETS 100.0% $29,789,466
<FN>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand bonds are payable upon not more than seven calen-
dar days' notice. The interest rate shown reflects the rate currently
in effect.
++ Put bonds and notes have demand features to mature within one year.
The interest rate shown reflects the rate currently in effect.
+++ Variable rate demand notes are payable upon not more than 30 calendar
days' notice. The interest rate shown reflects the rate currently in
effect.
</TABLE>
See Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS JUNE 30, 1995
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
ASSETS
Investments, at value
(Cost $22,367,447, $102,632,371 and
$29,815,343, respectively) (Note 1)
See accompanying schedules $22,367,447 $102,632,371 $ 29,815,343
Cash -- 13,488 177,364
Interest receivable 321,211 636,046 264,116
Receivable for Fund shares sold 1,042,363 1,559,769 89,796
TOTAL ASSETS 23,731,021 104,841,674 30,346,619
LIABILITIES
Payable for investment securities purchased 503,350 3,200,000 493,418
Dividends payable 9,772 94,261 20,038
Payable for Fund shares redeemed 216,722 212,589 22,682
Investment management fee payable (Note 2) 20,307 84,998 16,292
Due to custodian 9,353 -- --
Accrued Trustees' fees and expenses (Note 2) 758 3,381 758
Distribution fee payable (Note 3) 3,182 15,405 3,965
TOTAL LIABILITIES 763,444 3,610,634 557,153
NET ASSETS $22,967,577 $101,231,040 $ 29,789,466
NET ASSETS CONSIST OF:
ACCUMULATED NET REALIZED GAIN/
(LOSS) ON INVESTMENTS SOLD $ (233) $ (51,059) $ 339
PAID-IN CAPITAL 22,967,810 101,282,099 29,789,127
TOTAL NET ASSETS $22,967,577 $101,231,040 $ 29,789,466
</TABLE>
See Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS JUNE 30, 1995
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
NET ASSETS:
Investor Shares $ 15,537,878 $ 75,746,221 $ 21,739,314
Class R Shares $ 7,429,699 $ 25,484,819 $ 8,050,152
SHARES OUTSTANDING:
Investor Shares 15,537,767 75,797,831 21,739,067
Class R Shares 7,429,644 25,501,860 8,050,060
NET ASSET VALUE:
INVESTOR SHARES
Net asset value, offering and redemption price
per share of beneficial interest outstanding $ 1.00 $ 1.00 $ 1.00
CLASS R SHARES
Net asset value, offering and redemption price
per share of beneficial interest outstanding $ 1.00 $ 1.00 $ 1.00
</TABLE>
STATEMENTS OF OPERATIONS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
FOR THE YEAR ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 973,443 $ 4,113,322 $ 511,298
EXPENSES
Investment management fee (Note 2) 90,816 397,565 48,800
Distribution fee (Note 3) 38,346 222,784 20,798
Trustees' fees and expenses (Note 2) 2,069 9,343 1,308
Total expenses 131,231 629,692 70,906
NET INVESTMENT INCOME 842,212 3,483,630 440,392
NET REALIZED GAIN
ON INVESTMENTS (Note 1)
Net realized gain on investments sold during
the period 6 977 349
NET INCREASE IN NET ASSETS RESULTING FROM OPER-
ATIONS $ 842,218 $ 3,484,607 $ 440,741
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
FOR THE YEAR ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
Net investment income $ 842,212 $ 3,483,630 $ 440,392
Net realized gain on investments sold during
the year 6 977 349
Net increase in net assets resulting from oper-
ations 842,218 3,484,607 440,741
Distributions to shareholders from net invest-
ment income:
Investor shares (468,028) (2,605,776) (248,024)
Class R shares (374,184) (877,854) (192,368)
Net increase/(decrease) in net assets from Fund
share transactions (Note 4):
Investor shares (1,631,735) (10,764,289) 13,727,989
Class R shares (2,316,810) 5,659,254 2,591,101
Net increase/(decrease) in net assets (3,948,539) (5,104,058) 16,319,439
NET ASSETS:
Beginning of year 26,916,116 106,335,098 13,470,027
End of year $ 22,967,577 $ 101,231,040 $ 29,789,466
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
FOR THE YEAR OR PERIOD ENDED JUNE 30, 1994
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND* MONEY FUND MONEY FUND*
<S> <C> <C> <C>
Net investment income $ 346,378 $ 2,167,350 $ 204,215
Net realized loss on investments sold during
the year -- (1,311) --
Net increase in net assets result from opera-
tions 346,378 2,166,039 204,215
Distributions to shareholders from net invest-
ment income:
Investor Shares (198,324) (1,317,812) (124,785)
Trust Shares (118,164) (371,662) (78,946)
Institutional Shares (29,890) (477,876) (484)
Net increase/(decrease) in net assets from Fund
share transactions (Note 4):
Investor Shares (3,450,010) (21,462,072) (1,409,966)
Trust Shares 3,338,359 186,693 (2,241,040)
Net decrease in net assets (111,651) (21,276,690) (3,651,006)
NET ASSETS:
Beginning of year 27,027,767 127,611,788 17,121,033
End of year (including undistributed net in-
vestment income of $399 for the Dreyfus/Laurel
California Tax-Free Money Fund) $ 26,916,116 $ 106,335,098 $ 13,470,027
<FN>
* The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
</TABLE>
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
YEAR PERIOD
ENDED ENDED
6/30/95## 6/30/94+++
<S> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00
Income from investment operations:
Net investment income*** 0.031 0.012
Less distributions:
Distributions from net investment in-
come (0.031) (0.012)
Net Asset Value, end of period $ 1.00 $ 1.00
Total return++ 3.10% 1.25%
Ratios to average net assets/supplemen-
tal data:
Net assets, end of period (000's) $15,538 $17,170
Ratio of expenses to average net as-
sets+ 0.60% 0.47%**
Ratio of net investment income to aver-
age net assets 3.07% 2.11%**
<FN>
* The Fund commenced operations on March 2, 1988. On February 1, 1993
existing shares of the Fund were designated the Retail Class and the
Fund began offering the Institutional Class and Investment Class of
shares. Effective April 4, 1994 the Retail and Institutional Classes
were reclassified as a single class of shares known as Investor
shares. The Financial Highlights for the year ended June 30, 1995 are
based upon an Investor share outstanding. The amounts shown for the
period ended June 30, 1994 were calculated using the performance of a
Retail share outstanding from December 1, 1993 to April 3, 1994, and
the performance of an Investor share outstanding from April 4, 1994 to
June 30, 1994. The Financial Highlights for the year ended November
30, 1993 and prior periods are based upon a Retail share outstanding.
** Annualized.
*** Net investment income per share before voluntary waiver of fees and/or
reimbursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the period ended June 30, 1994, and for the
years ended November 30, 1993, 1992, 1991, 1990, 1989 and for the
period ended November 30, 1988 were $0.010, $0.016, $0.026, $0.041,
$0.050, $0.053 and $0.028, respectively.
+ Annualized expense ratios before voluntary waiver of fees and/or reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the period ended June 30, 1994, and for the
years ended November 30, 1993, 1992, 1991, 1990, 1989 and for the pe-
riod ended November 30, 1988 were 0.85%, 1.08%, 0.83%, 0.78%, 0.93%,
1.01% and 1.41%, respectively.
++ Total return represents aggregate total return for the periods
indicated.
+++ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
From April 4, 1994 through October 16, 1994, Mellon Bank, N.A., served
as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/93# 11/30/92 11/30/91 11/30/90 11/30/89 11/30/88*
<S> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
0.023 0.031 0.046 0.056 0.060 0.033
(0.023) (0.031) (0.046) (0.056) (0.060) (0.033)
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
2.41% 3.10% 4.65% 5.75% 6.18% 3.39%
$15,490 $26,987 $27,831 $27,493 $15,745 $ 9,112
0.32% 0.32% 0.32% 0.32% 0.32% 0.67%**
2.40% 3.03% 4.57% 5.58% 6.02% 4.55%**
<FN>
# The per share amounts have been calculated using the monthly average
shares method, which more appropriately presents per share data for
this period since use of the undistributed net investment income method
did not accord with results of operations.
## Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
YEAR PERIOD PERIOD
ENDED ENDED ENDED
6/30/95## 6/30/94+++ 11/30/93*#
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income*** 0.033 0.013 0.020
Less distributions:
Distributions from net investment in-
come (0.033) (0.013) (0.020)
Net Asset Value, end of period $ 1.00 $ 1.00 $ 1.00
Total return++ 3.35% 1.31% 1.98%
Ratios to average net assets/
supplemental data:
Net assets, end of period (000's) $ 7,430 $ 9,747 $ 6,408
Ratio of expenses to average net as-
sets+ 0.35% 0.29%** 0.28%**
Ratio of net investment income to aver-
age net assets 3.32% 2.29%** 2.13%**
<FN>
* The Fund commenced selling Investment Class shares on February 1,
1993. Effective April 4, 1994 the Investment Class was reclassified as
the Trust shares. Effective October 17, 1994 Trust shares were redes-
ignated Class R shares. The table above is based upon an Investment
Class share outstanding from February 1, 1993 to April 3, 1994 and a
Trust share outstanding from April 4, 1994 to October 16, 1994.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the periods ended June 30, 1994 and November 30,
1993 were $0.011 and $0.013, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the periods ended June 30, 1994 and November
30, 1993 were 0.67% and 1.03%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
+++ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
From April 4, 1994 through October 16, 1994, Mellon Bank, N.A., served
as the Fund's investment manager.
# The per share amounts have been calculated using the monthly average
shares method, which more appropriately presents per share data for
this period since use of the undistributed net investment income method
did not accord with results of operations.
## Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH YEAR*
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
6/30/95# 6/30/94## 6/30/93 6/30/92
<S> <C> <C> <C> <C>
Net Asset Value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment investment income*** 0.029 0.018 0.019 0.034
Less distributions:
Distributions from net income (0.029) (0.018) (0.019) (0.034)
Net Asset Value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total return++ 2.99% 1.83% 1.94% 3.36%
Ratios to average net assets/ supple-
mental data:
Net assets, end of year (000's) $75,746 $86,505 $68,952 $149,679
Ratio of expenses to average net as-
sets+ 0.60% 0.70% 0.68% 0.67%
Ratio of net investment income to aver-
age net assets 2.94% 1.80% 1.98% 3.38%
<FN>
* The Fund commenced operations on July 27, 1983. On February 1, 1993
existing shares of the Fund were designated the Retail Class and the
Fund began offering the Institutional Class and Investment Class of
shares. Effective April 4, 1994 the Retail and Institutional Classes
were reclassified as a single class of shares known as Investor
shares. The Financial Highlights for the year ended June 30, 1995 are
based upon an Investor share outstanding. The amounts shown for the
year ended June 30, 1994 were calculated using the performance of a
Retail share outstanding from December 1, 1993 to April 3, 1994, and
the performance of an Investor share outstanding from April 4, 1994 to
June 30, 1994. The Financial Highlights for the year ended June 30,
1993 and prior years are based upon a Retail share outstanding.
*** Net investment income per share before waiver of fees and/or reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the years ended June 30, 1994, 1993, 1989,
1987 and 1986 were $0.017, $0.019, $0.055, $0.038 and $0.044,
respectively.
+ Annualized expense ratios before voluntary waiver of fees and/or reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the years ended June 30, 1994, 1993, 1989,
1987 and 1986 were 0.78%, 0.69%, 0.70%, 0.64% and 0.79%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
# Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manager.
## Prior to April 4, 1994, The Boston Company Advisors, Inc. served as
the Fund's investment adviser. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A., served as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
6/30/91 6/30/90 6/30/89 6/30/88 6/30/87 6/30/86
<S> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
0.051 0.056 0.055 0.042 0.039 0.047
(0.051) (0.056) (0.055) (0.042) (0.039) (0.047)
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
4.93% 5.56% 5.62% 4.12% 3.97% 4.69%
$160,392 $159,551 $134,941 $146,592 $137,295 $111,095
0.64% 0.65% 0.67% 0.65% 0.47% 0.50%
5.07% 5.64% 5.45% 4.25% 3.92% 4.71%
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH YEAR*
<TABLE>
<CAPTION>
YEAR YEAR PERIOD
ENDED ENDED ENDED
6/30/95# 6/30/94## 6/30/93*
<S> <C> <C> <C>
Net Asset Value, beginning of year $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income*** 0.032 0.019 0.007
Less distributions:
Distributions from net investment in-
come (0.032) (0.019) (0.007)
Net Asset Value, end of year $ 1.00 $ 1.00 $ 1.00
Total return++ 3.25% 1.97% 0.73%
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's) $25,485 $19,830 $19,645
Ratio of expenses to average net as-
sets+ 0.35% 0.56% 0.57%**
Ratio of net investment income to aver-
age net assets 3.19% 1.94% 1.78%**
<FN>
* The Fund commenced selling Investment Class shares on February 1,
1993. Effective April 4, 1994 the Investment Class was reclassified as
the Trust shares. Effective October 17, 1994 Trust shares were redes-
ignated Class R shares. The table above is based upon an Investment
Class share outstanding from February 1, 1993 to April 3, 1994 and a
Trust share outstanding from April 4, 1994 to October 16, 1994.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the year ended June 30, 1994 and period ended June
30, 1993 were $0.019 and $0.007, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the periods ended June 30, 1994 and period
ended June 30, 1993 were 0.64% and 0.62%, respectively.
++ Total return represents aggregate total return for the period indi-
cated.
# Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manager.
## Prior to April 4, 1994, The Boston Company Advisors, Inc. served as
the Fund's investment adviser. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A., served as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
YEAR PERIOD
ENDED ENDED
6/30/95# 6/30/94+++
<S> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00
Income from investment operations:
Net investment income**** 0.029 0.012
Less distributions:
Distributions from net investment in-
come (0.029) (0.012)
Distribution from net realized capital
gains -- --
Net Asset Value, end of period $ 1.00 $ 1.00
Total return++ 2.95% 1.23%
Ratios to average net assets/supplemen-
tal data:
Net assets, end of period (000's) $21,739 $ 8,011
Ratio of expenses to average net as-
sets+ 0.60% 0.44%**
Ratio of net investment income to aver-
age net assets 2.97% 2.12%**
<FN>
* The Fund commenced operations on March 2, 1988. On February 1, 1993
existing shares of the Fund were designated the Retail Class and the
Fund began offering the Institutional Class and Investment Class of
shares. Effective April 4, 1994 the Retail and Institutional Classes
were reclassified as a single class of shares known as Investor
shares. The Financial Highlights for the year ended June 30, 1995 are
based upon an Investor share outstanding. The amounts shown for the
period ended June 30, 1994 were calculated using the performance of a
Retail share outstanding from December 1, 1993 to April 3, 1994, and
the performance of an Investor share outstanding from April 4, 1994
to June 30, 1994. The Financial Highlights for the year ended Novem-
ber 30, 1993 and prior periods are based upon a Retail Share out-
standing.
** Annualized.
*** Amount represents less than .001 per Investor share for the year
ended November 30, 1992.
**** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the period ended June 30, 1994 and for the years
ended November 30, 1993, 1992, 1991, 1990, 1989 and for the period
ended November 30, 1988 were $0.009, $0.008, $0.024, $0.040, $0.047,
$0.050 and $0.026, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the period ended June 30, 1994 and for the
years ended November 30, 1993, 1992, 1991, 1990, 1989 and for the pe-
riod ended November 30, 1988 were 0.97%, 1.29%, 1.03%, 0.93%, 1.03%,
1.10%, and 1.42%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
+++ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
From April 4, 1994 through October 16, 1994, Mellon Bank, N.A., served
as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/93 11/30/92 11/30/91 11/30/90 11/30/89 11/30/88*
<S> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
0.021 0.031 0.046 0.054 0.058 0.032
(0.021) (0.031) (0.046) (0.054) (0.058) (0.032)
-- -- *** -- -- -- --
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
2.15% 3.11% 4.65% 5.53% 5.90% 3.19%
$ 9,356 $11,183 $15,989 $16,870 $14,129 $ 8,929
0.31% 0.32% 0.32% 0.32% 0.32% 0.65%**
2.13% 3.08% 4.58% 5.38% 5.73% 4.33%**
<FN>
# Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
YEAR PERIOD PERIOD
ENDED ENDED ENDED
6/30/95# 6/30/94+++ 11/30/93*
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income*** 0.031 0.013 0.018
Less distributions:
Distributions from net investment in-
come (0.031) (0.013) (0.018)
Net Asset Value, end of period $ 1.00 $ 1.00 $ 1.00
Total return++ 3.21% 1.32% 1.76%
Ratios to average net assets/
supplemental data:
Net assets, end of period (000's) $ 8,050 $ 5,459 $ 7,700
Ratio of expenses to average net as-
sets+ 0.35% 0.28%** 0.26%**
Ratio of net investment income to aver-
age net assets 3.22% 2.27%** 2.12%**
<FN>
* The Fund commenced selling Investment Class shares on February 1,
1993. Effective April 4, 1994 the Investment Class was reclassified as
the Trust shares. Effective October 17, 1994 Trust shares were redes-
ignated as Class R shares. The table above is based upon an Investment
Class share outstanding from February 1, 1993 to April 3, 1994 and a
Trust share outstanding from April 4, 1994 to October 16, 1994.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the periods ended June 30, 1994 and November 30,
1993 were $0.010 and $0.007, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the periods ended June 30, 1994 and November
30, 1993 were 0.82% and 1.22%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
+++ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
From April 4, 1994 through October 16, 1994, Mellon Bank, N.A., served
as the Fund's investment manager.
# Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Tax-Free Municipal Funds (the "Trust"), The Dreyfu-
s/Laurel Funds, Inc., The Dreyfus/Laurel Funds Trust and The Dreyfus/Lau-
rel Investment Series (collectively, "The Dreyfus/Laurel Funds") are all
registered open-end investment companies that are part of The Dreyfus Fam-
ily of Funds. The Trust is an investment company which consists of seven
funds: the Dreyfus/Laurel California Tax-Free Money Fund, the Dreyfus/Lau-
rel Massachusetts Tax-Free Money Fund, the Dreyfus/Laurel New York Tax-
Free Money Fund (collectively, the "Money Funds") (individually, the
"Fund"), the Premier Limited Term California Municipal Fund, the Premier
Limited Term Massachusetts Municipal Fund, the Premier Limited Term New
York Municipal Fund and the Premier Limited Term Municipal Fund. This re-
port contains financial statements for the Money Funds. The Trust is a
Massachusetts business trust and is registered with the Securities and Ex-
change Commission under the Investment Company Act of 1940, as amended
(the "1940 Act"), as an open-end management investment company. The Money
Funds currently offer two classes of shares: Investor shares and Class R
shares (effective October 17, 1994, the Trust shares were redesignated
Class R shares). Investor shares are sold primarily to retail investors
and bear a distribution fee. Class R shares are sold primarily to bank
trust departments and other financial service providers (including Mellon
Bank, N.A. ("Mellon Bank") and its affiliates) acting on behalf of custom-
ers having a qualified trust or investment account or relationship at such
institution, and bear no distribution fee. Each class of shares has iden-
tical rights and privileges, except with respect to the distribution fees
and voting rights on matters affecting a single class. The following is a
summary of significant accounting policies consistently followed by each
Fund in the preparation of its financial statements in accordance with
generally accepted accounting principles.
(A) PORTFOLIO VALUATION:
Portfolio securities are valued on the basis of amortized cost in accor-
dance with Rule 2a-7 of the 1940 Act. Amortized cost valuation involves
valuing an instrument at its cost initially and thereafter assuming a con-
stant amortization to maturity of any discount or premium, regardless of
the effect of fluctuating interest rates on the market value of the in-
strument.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are recorded as of the trade date. Realized gains
and losses on investments sold are recorded on the identified cost basis.
Interest income is recorded on the accrual basis. Investment income and
realized and unrealized gains and losses are allocated based upon the rel-
ative average daily net assets of each class of shares.
(C) DISTRIBUTIONS TO SHAREHOLDERS:
Each Fund declares dividends from net investment income on a class level
on each day the Fund is open for business and pays such dividends no later
than the first business day of the next month. Each Fund may distribute
net realized capital gains on a Fund level, if any, annually or more fre-
quently to maintain its net asset value of $1.00 per share. Each Fund may
be subject to a 4.00% nondeductible excise tax for certain undistributed
amounts of net investment income and capital gain. Each Fund expects to
make additional distributions to avoid the application of the excise tax.
Income distributions and capital gain distributions on a Fund level are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily
due to differing treatments of income and gains on various investment se-
curities held by the Fund, timing differences and the differing character-
ization of distributions made by the Fund as a whole. Permanent differ-
ences on the Massachusetts Tax-Free Money Fund incurred during the year
ended June 30, 1995, which resulted from an expiration of capital loss
carryforward have been reclassified to paid-in capital at year end.
(D) EXPENSE ALLOCATION
Expenses of each Fund not directly attributable to the operations of any
class of shares are prorated between the classes based upon the relative
average daily net assets of each class. Distribution expense is directly
attributable to a particular class of shares and is charged only to that
class' operations.
(E) FEDERAL INCOME TAXES:
It is policy of each Fund to qualify as a regulated investment company, if
such qualification is in the best interests of its shareholders, by com-
plying with the requirements of the Internal Revenue Code applicable to
regulated investment companies and by distributing all of its earnings to
shareholders. Therefore, no Federal income tax provision is required.
2. INVESTMENT MANAGEMENT FEE, TRUSTEES' FEE AND OTHER PARTY TRANSACTIONS
Effective as of October 17, 1994, the Trust's investment management agree-
ment with Mellon Bank was transferred to The Dreyfus Corporation (the
"Manager"), a wholly-owned subsidiary of Mellon Bank. The Manager pro-
vides, or arranges for one or more third parties to provide, investment
advisory, administrative, custody, fund accounting and transfer agency
services to the Trust. The Manager also directs the investments of each
Fund in accordance with its investment objective, policies and limita-
tions. For these services, each Fund is contractually obligated to pay the
Manager a fee, calculated daily and paid monthly, at the annual rate of
0.35% of the value of that Fund's average daily net assets. Out of its
fee, the Manager pays all of the expenses of each Fund except brokerage
fees, taxes, interest, Rule 12b-1 distribution fees and expenses, fees and
expenses of non-interested Trustees (including counsel fees) and extraor-
dinary expenses. In addition, the Manager is required to reduce its fee in
an amount equal to each Fund's allocable portion of fees and expenses of
the non- interested Trustees (including counsel).
Prior to October 17, 1994, Mellon Bank served as the Trust's investment
manager pursuant to the investment management agreement described above.
Prior to September 23, 1994, Frank Russell Investment Management Company
(the "Administrator") served as each Fund's administrator and provided,
pursuant to an administration agreement, various administrative and corpo-
rate secretarial services to each Fund. Mellon Bank, as investment man-
ager, paid the Administrator's fee out of the management fee described
above.
Prior to October 17, 1994, Funds Distributor, Inc. served as distributor
of the Trust's shares. Effective as of October 17, 1994, Premier Mutual
Fund Services, Inc. ("Premier") serves as the Trust's distributor. Premier
also serves as the Trust's sub-administrator and, pursuant to a sub-
administration agreement with the Manager, provides various administrative
and corporate secretarial services to the Trust.
No officer or employee of Premier (or of any parent, subsidiary or affili-
ate thereof) receives any compensation from The Dreyfus/Laurel Funds for
serving as an officer or Director or Trustee of The Dreyfus/Laurel Funds.
In addition, no officer or employee of the Manager (or of any parent, sub-
sidiary or affiliate thereof) serves as an officer or Director or Trustee
of The Dreyfus/Laurel Funds. The Dreyfus/Laurel Funds pay each Director or
Trustee who is not an officer or employee of Premier (or any parent, sub-
sidiary or affiliate thereof), or of the Manager $27,000 per annum, $1,000
for each Board meeting attended and $750 for each Audit Committee meeting
attended, and reimburse each Director or Trustee for travel and out-of-
pocket expenses.
3. DISTRIBUTION PLAN
Each Fund has adopted a distribution plan (the "Plan") pursuant to Rule
12b-1 under the 1940 Act relating to its Investor shares. Under the Plan,
each Fund may pay annually up to 0.25% of the value of the average daily
net assets attributable to its Investor shares to compensate Premier and
Dreyfus Service Corporation, an affiliate of the Manager, for shareholder
servicing activities and Premier for activities and expenses primarily in-
tended to result in the sale of Investor shares. Class R shares bear no
distribution fee.
Under its terms, the Plan shall remain in effect from year to year, pro-
vided such continuance is approved annually by a vote of a majority of the
Trustees and a majority of those Trustees who are not "interested persons"
of the Trust and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan.
4. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of ben-
eficial interest of each class in each separate series, without par value.
The Trust offers two classes of shares of the Money Funds.
The tables below summarize transactions in Fund shares for the years or
periods indicated. Because each of the Money Funds has sold shares, issued
shares as reinvestments of dividends and redeemed shares only at a con-
stant net asset value of $1.00 per share, the number of shares represented
by such sales, reinvestments and redemptions is the same as the amounts
shown below for such transactions.
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
JUNE 30, 1995 JUNE 30, 1994*+#
<S> <C> <C>
INVESTOR SHARES:
Sold $ 32,912,720 $ 22,619,988
Issued as reinvestment of dividends and
distributions 462,650 225,575
Redeemed (35,007,105) (26,295,573)
Net decrease $ (1,631,735) $ (3,450,010)
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
JUNE 30, 1995## JUNE 30, 1994*
<S> <C> <C>
CLASS R SHARES:
Sold $ 32,480,825 $10,968,762
Issued as reinvestment of dividends and
distributions 265,428 65,613
Redeemed (35,063,063) (7,696,016)
Net increase/(decrease) $ (2,316,810) $ 3,338,359
<FN>
* The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
+ Amounts include $8,676,000 of subscriptions, $28,427 of reinvestments
and $8,004,712 of redemptions for the Institutional Class up to April
4, 1994.
# Effective April 4, 1994 the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor shares.
## On October 17, 1994, the Trust shares were redesignated Class R shares.
</TABLE>
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 1995 JUNE 30, 1994+#
<S> <C> <C>
INVESTOR SHARES:
Sold $ 130,450,064 $ 139,311,367
Issued as reinvestment of dividends and
distributions 1,980,170 1,217,369
Redeemed (143,194,523) (161,990,808)
Net decrease $ (10,764,289) $ (21,462,072)
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 1995## JUNE 30, 1994
<S> <C> <C>
CLASS R SHARES:
Sold $ 81,076,293 $ 66,966,216
Issued as reinvestment of dividends and
distributions 513,180 112,247
Redeemed (75,930,219) (66,891,770)
Net increase $ 5,659,254 $ 186,693
<FN>
+ Amounts include $50,504,187 of subscriptions, $63,928 of reinvestments
and $60,326,788 of redemptions for the Institutional Class up to April
4, 1994.
# Effective April 4, 1994 the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor shares.
## On October 17, 1994, the Trust Shares were redesignated Class R shares.
</TABLE>
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
JUNE 30, 1995 JUNE 30, 1994*+#
<S> <C> <C>
INVESTOR SHARES:
Sold $ 23,865,192 $ 4,170,313
Issued as reinvestment of dividends and
distributions 240,333 123,051
Redeemed (10,377,536) (5,703,330)
Net increase/(decrease) $ 13,727,989 $(1,409,966)
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
JUNE 30, 1995## JUNE 30, 1994*
<S> <C> <C>
CLASS R SHARES:
Sold $10,336,048 $ 3,604,985
Issued as reinvestment of dividends and
distributions 44,938 3,922
Redeemed (7,789,885) (5,849,947)
Net increase/(decrease) $ 2,591,101 $(2,241,040)
<FN>
* The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
+ Amounts include $11,467 of subscriptions, $468 of reinvestments and
$9,120 of redemptions for the Institutional Class up to April 4, 1994.
# Effective April 4, 1994 the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor shares.
## On October 17, 1994, the Trust shares were redesignated Class R shares.
</TABLE>
5. CAPITAL LOSS CARRYFORWARD
As of June 30, 1995, the California Tax-Free Money Fund had available for
Federal tax purposes unused capital loss carryforwards of $233 expiring in
the year 2000, the Massachusetts Tax-Free Money Fund had unused capital
loss carryforwards of $51,059 expiring in the year 2002.
6. CONCENTRATION OF CREDIT
Each Fund invests primarily in debt obligations issued by the Fund's re-
spective state (ie. California, Massachusetts, or New York) and its polit-
ical subdivisions, municipalities, agencies and public authorities who ob-
tain funds for various public purposes. Each Fund is more susceptible to
factors adversely affecting issuers of its respective state municipal se-
curities than is a municipal bond fund that is not concentrated in these
issuers to the same extent.
INDEPENDENT AUDITORS' REPORT
KPMG
The Board of Trustees and Shareholders
The Dreyfus/Laurel Tax-Free Municipal Funds:
We have audited the accompanying statements of assets and liabilities, in-
cluding the portfolio of investments, of the California Tax-Free Money
Fund, Massachusetts Tax-Free Money Fund and New York Tax-Free Money Fund
of The Dreyfus/Laurel Tax-Free Municipal Funds (formerly the Laurel Tax-
Free Municipal Funds) as of June 30, 1995, and the related statement of
operations for the year then ended and statement of changes in net assets
and financial highlights for Investor and Class R shares for each of the
years in the two-year period then ended for the Massachusetts Tax-Free
Money Fund and for the year ended June 30, 1995 and for the period from
December 1, 1993 to June 30, 1994 for the California Tax-Free Money Fund
and New York Tax-Free Money Fund. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsi-
bility is to express an opinion on these financial statements and finan-
cial highlights based on our audits. The financial highlights presented
for each of the years or periods ended June 30, 1993 or prior for the Mas-
sachusetts Tax-Free Money Fund and for each of the years or periods ended
November 30, 1993 or prior for the California Tax-Free Money Fund and New
York Tax-Free Money Fund were audited by other auditors whose reports
thereon, dated August 11, 1993 and January 18, 1994, expressed an unquali-
fied opinion on those financial highlights.
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 fi-
nancial highlights are free of material misstatement. An audit also in-
cludes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirma-
tion of securities owned as of June 30, 1995, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principals 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 the California Tax-Free Money Fund, Massachusetts Tax-Free Money Fund
and New York Tax-Free Money Fund of The Dreyfus/Laurel Tax-Free Municipal
Funds as of June 30, 1995, the results of their operations for the year
then ended and the change in their net assets and financial highlights for
each of the years or periods in the two-year period ended June 30, 1995 in
conformity with generally accepted accounting Principles.
KPMG Peat Marwick LLP
Boston, Massachusetts
August 18, 1995
TAX INFORMATION (UNAUDITED)
YEAR ENDED JUNE 30, 1995
Of the dividends paid by the Funds from net investment income for the fis-
cal year ended June 30, 1995, 100% is tax-exempt for regular Federal in-
come tax purposes.
DESCRIPTION OF ART WORK ON REPORT COVER
Small box above fund name showing a lions face.
DEAR SHAREHOLDER,
We are pleased to provide you with the Premier Limited Term Municipal
Fund's Annual Report for the year ended June 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on the Fund's investment strategy and de-
tailed financial statements for the past twelve months.
As you know, the Fund has been integrated into The Dreyfus Family of
Funds. We hope that you found the transition from The Laurel Funds to The
Dreyfus Family of Funds to be a smooth one. The extended family of funds
now offers you more investment alternatives in addition to expanded ser-
vices and privileges to better serve your investment needs.
We would like to extend our appreciation for your support of The
Dreyfus Family of Funds and hope that the Fund will continue to satisfy
your investment needs. As always, we welcome your thoughts and
suggestions.
Sincerely,
Marie E. Connolly
President
The Dreyfus/Laurel Tax-Free Municipal Funds --
Premier Limited Term Municipal Fund
August 18, 1995
TABLE OF CONTENTS
Shareholder Letter ....................................................... 1
Economic Review ......................................................... 3
Portfolio Overview ...................................................... 5
Performance Summary ...................................................... 6
Portfolio of Investments ................................................. 10
Statement of Assets and Liabilities ..................................... 18
Statement of Operations .................................................. 20
Statements of Changes in Net Assets ..................................... 21
Financial Highlights ..................................................... 22
Notes to Financial Statements ............................................ 27
Independent Auditors' Report ............................................ 33
Tax Information ......................................................... 34
ECONOMIC REVIEW
ECONOMIC SLOWDOWN IS MARKED BUT NOT RECESSIONARY
The economic slowdown long hoped for by many analysts and strongly pursued
by the Federal Reserve Board (the "Fed") finally took hold over the past
six months. In fact, the economy slowed more than expected, as evidenced
by the Fed's quarter point decrease in interest rates in early July. Em-
ployment weakness in April and May signified that the slowdown had begun
to erode the economy's income-generating capacity somewhat, slowing down
the advance in spendable income.
Nonetheless, we are confident that a recession is not underway. First of
all, the economy is not exhibiting the financial stresses and imbalances
that often mark the end of an expansion. For example, business balance
sheets are strong, even at smaller companies. Many firms have also built a
cushion into profit margins by reducing fixed labor costs like health care
benefits. Consumer financial positions are in excellent shape, allowing
leeway to survive a no-growth, low-inflation environment. Rallies in stock
and bond markets have boosted consumer net worth. Meanwhile, borrowing is
vigorous and we believe should remain so, further spurring consumer spend-
ing.
A second comforting factor is the unprecedented speed with which busi-
nesses have adjusted their production schedules to the new economic reali-
ties. By limiting the buildup of unwanted inventories, businesses have
lowered their operating rates considerably. Furthermore, business caution
is extending into the third quarter. While this low production may result
in sluggish overall growth during the summer, it should help keep a better
balance between supply and demand.
A BRIGHTER INFLATION OUTLOOK
Economic deceleration is exactly what the Fed wanted to cool rising infla-
tion expectations, and we believe it's working. The abrupt character of
the slowdown did shock some businesses who concluded they could not raise
prices and keep their customers. Auto incentives are proliferating, and
now steel makers have begun to cut prices to win market share. Even basic
materials producers are offering price cuts, as last year's speculative
inventory build-ups now seem counterproductive.
In general, lower operating costs are opening a gap between supply and de-
mand that is alleviating price increase pressure. And while the dollar's
decline could be expected to generate higher import prices that would add
to domestic price pressures, import prices are actually not rising any
faster than those of domestically produced finished goods. In other words,
a selective and value-conscious consumer has the upper hand with both do-
mestic and imported suppliers.
BOND MARKET GAINS CONTINUE
With inflation seemingly in check and the economy slowing down nicely,
bond market investors reaped benefits in the form of exceptional returns.
In fact, the second quarter of 1995 posted the market's largest quarterly
gain since 1989. The main benchmark index of corporate, government, and
mortgage-backed securities, the Lehman Brothers Aggregate Index, was up
over 6% for the quarter. Corporate bonds provided the best returns, fol-
lowed closely by Treasury securities. Mortgage-backed securities were up
but lagged the other two sectors largely based on speculation that low 30-
year mortgage rates may soon spur another round of homeowner refinancing.
By and large, the economy's unanticipated weakness drove the market's
rise. Fourth quarter 1994 GDP growth was 5%; first quarter GDP growth was
just 2.7%. Lots of data substantiated the deceleration, including slower
home sales, lower durable goods orders, lower industrial production num-
bers and in particular, weak employment statistics. Economic data for the
second quarter showed a further slowdown.
A FED EASE IS LIKELY
Against this backdrop, the Fed cautiously eased monetary policy in July.
Forward-looking inflation indicators like the Price Diffusion Index and
Supplier Delivery Index, both published by the national purchasing manag-
ers, portend smaller inflation increases. These indicators will be partic-
ularly important to Fed policy makers seeking to keep the economic slow-
down from turning recessionary.
The Fed will want to retain market confidence that it is not abandoning
its anti-inflation stance. For this reason, we anticipate any further eas-
ing of interest rates will be in small, quarter-point increments. This ap-
proach would also allow the Fed to assist the economy and still have the
time to assess the ongoing stream of new economic data to determine the
effect of its new monetary policy. And it would finally balance the Fed's
genuine uncertainty as to whether the pause in economic growth will be
short-lived.
SUPPLY/DEMAND AND QUALITY FACTORS
New supply of municipal bonds for the second quarter continued to lag be-
hind last year's levels for the same period. Total new issue supply has
amounted to $75 billion year-to- date compared to last year's total for
the same period of almost $95 billion. Despite the recent drop in interest
rates, we still do not anticipate a large increase in new issue volume in
the municipal bond market for the remainder of the year.
IMPACT OF TAX REFORM PROPOSALS
During the last three months, heightened attention to the possibility of
Federal tax reform hampered the performance of the tax-exempt bond market.
Consequently, municipal bonds significantly underperformed taxable securi-
ties, but still managed to produce positive total returns. At the begin-
ning of the second quarter, 10-year AAA-rated municipal bonds were yield-
ing approximately 73% of 10-year Treasury bonds. More recently, the rela-
tive yield level has been near 83%.
PORTFOLIO OVERVIEW
While the Federal Reserve was tightening credit last year and early this
year, the bond market experienced its worst performance in decades. We
managed the Fund in a cautious manner during that period, keeping maturi-
ties relatively short. For the period ended June 30, 1995,* the Class A,
Class B, Class C and Class R shares posted total returns of 6.37%*,
6.59%*, 6.59%* and 6.64%, respectively. This compares with a one year
total return of 6.80% for the Lipper Intermediate Municipal Debt Funds Av-
erage.**
During the Spring and early Summer, when we saw that the economy was slow-
ing down, we ventured to extend maturities, but slowly so as not to be
caught by a sudden market reversal.
This cautious policy held back performance; however, we think that from a
long-range standpoint, that was well justified.
The portfolio structure of the Fund continues to emphasize premium coupon
issues and high credit quality securities. The average weighted maturity
of the Fund was extended slightly to seek to capture additional returns
consistent with a declining interest rate environment.
* Total return figures for Class A and Class R shares are for the one
year period ended June 30, 1995 and for Class B and Class C shares for
the period since inception (12/28/94) through June 30, 1995. Total re-
turn represents the change during the period in a hypothetical account
with dividends reinvested, without taking into account the maximum
front-end sales load of 3.0% in the case of Class A shares and the ap-
plicable contingent deferred sales charges ("CDSC") in the case of
Class B and Class C shares. With the sales charge or CDSC, the total
return of the Class A, Class B and Class C shares for the same period
would have been 3.18%, 3.59% and 5.84%, respectively.
** Lipper Intermediate Municipal Debt Funds Average is the average cumula-
tive total reinvestment performance of funds which invest in municipal
debt issues with dollar- weighted average maturities of 5 to 10 years.
PERFORMANCE SUMMARY
PREMIER LIMITED TERM MUNICIPAL FUND
Change in Value of $10,000 Invested from October 5, 1985 -- June 30, 1995+
(unaudited)
PREMIER LIMITED TERM MUNICIPAL FUND
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS A)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term Municipal Fund Class A shares on October 5, 1985 through
June 30, 1995 as compared with the growth of a $10,000 investment in Leh-
man Brothers Municipal 10 Year Bond Index and the Lehman Brothers Munici-
pal 7 Year Bond Index. The plot points used to draw the line graph were as
follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS A MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
09/30/85 - $10,000 -
10/01/85 $9,700 - -
10/85 $9,894 $10,434 -
11/85 $10,182 $10,785 -
12/85 $10,487 $10,748 -
03/86 $11,462 $11,766 -
06/86 $11,318 $11,688 -
09/86 $11,873 $12,389 -
12/86 $12,363 $12,792 -
03/87 $12,662 $13,210 -
06/87 $12,276 $12,886 -
09/87 $11,953 $12,583 -
12/87 $12,657 $13,194 -
03/87 $12,973 $13,590 -
06/88 $13,284 $13,774 -
09/88 $13,680 $14,112 -
12/88 $14,108 $14,225 -
03/89 $14,081 $14,356 -
06/89 $15,049 $15,100 -
09/89 $14,973 $15,155 -
12/89 $15,505 $16,745 $15,984
03/90 $15,496 $15,788 $16,054
06/90 $15,811 $16,173 $16,421
09/90 $15,753 $16,165 $16,532
12/90 $16,453 $16,899 $17,166
03/91 $16,783 $17,316 $17,574
06/91 $17,071 $17,666 $17,877
09/91 $17,694 $18,369 $18,556
12/91 $18,362 $18,944 $19,168
03/92 $18,327 $18,927 $19,152
06/92 $19,109 $19,665 $19,830
09/92 $19,547 $20,237 $20,375
12/92 $19,872 $20,634 $20,708
03/93 $20,637 $21,431 $21,372
06/93 $21,201 $22,138 $21,963
09/93 $21,857 $22,931 $22,600
12/93 $22,106 $23,265 $22,873
03/94 $21,182 $22,031 $22,010
06/94 $21,404 $22,354 $22,241
09/94 $21,533 $22,511 $22,455
12/94 $21,316 $22,154 $22,238
03/95 $22,323 $23,687 $23,407
06/95 $22,769 $24,315 $24,073
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- CLASS A SHARES
(FORMERLY INVESTOR SHARES)
<TABLE>
<CAPTION>
WITHOUT SALES CHARGE WITH SALES CHARGE
<S> <C> <C>
Year Ended 06/30/95 6.37% 3.18%
Five Years Ended 06/30/95 7.57% 6.91%
Inception (10/05/85) through 06/30/95 9.15% 8.81%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class A shares (for-
merly Investor shares) at inception (October 5, 1985) assuming deduction
of a maximum 3.00% sales charge at the time of investment and reinvest-
ment of dividends and capital gains at net asset value through June 30,
1995.
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index which is comprised of
approximately 3,000 municipal bonds having characteristics similar to
the bonds in which the Fund invests, began in January 1990. The index
assumes a beginning value of $15,984 which is equal to the value of the
$10,000 investment in the Fund at the starting point of this index.
Index information is available at month-end only; therefore, the closest
month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income or
capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not guar-
antee future results. Investment return and principal value of an in-
vestment will fluctuate so that an investor's shares upon redemption may
be worth more or less than original cost.
PREMIER LIMITED TERM MUNICIPAL FUND
Change in Value of $10,000 Invested from December 28, 1994 -- June 30, 1995+
(unaudited)
PREMIER LIMITED TERM MUNICIPAL FUND
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS B)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term Municipal Fund Class B shares on December 29, 1994
through June 30, 1995 as compared with the growth of a $10,000 investment
in Lehman Brothers Municipal 10 Year Bond Index and the Lehman Brothers
Municipal 7 Year Bond Index. The plot points used to draw the line graph
were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS B MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
12/28/94 $10,000 - -
12/94 $10,004 $10,000 $10,000
01/95 $10,164 $10,259 $10,188
02/95 $10,347 $10,549 $10,417
03/95 $10,463 $10,692 $10,526
04/95 $10,480 $10,705 $10,554
05/95 $10,713 $11,044 $10,835
06/95 $10,359 $10,975 $10,825
</TABLE>
AGGREGATE ANNUAL TOTAL RETURN -- CLASS B SHARES
<TABLE>
<CAPTION>
WITHOUT WITH
CONTINGENT CONTINGENT
DEFERRED DEFERRED
SALES CHARGE SALES CHARGE
<S> <C> <C>
INCEPTION (12/28/94) THROUGH 06/30/95 6.59% 3.59%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class B Shares at in-
ception (December 28, 1994) assuming reinvestment of dividends and cap-
ital gains at net asset value through June 30, 1995.
++ Value assumes deduction of applicable contingent deferred sales charge
("CDSC") (assuming redemption on June 30, 1995).
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index which is comprised of
approximately 3,000 municipal bonds having characteristics similar to
the bonds in which the Fund invests, began in January 1990.
Index information is available at month-end only; therefore, the clos-
est month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as a representation of the dividend
income or capital gain or loss which may be realized from an investment
in the Fund today. No adjustment has been made for a shareholder's tax
liability on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not
guarantee future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares upon redemption
may be worth more or less than original cost.
PREMIER LIMITED TERM MUNICIPAL FUND
Change in Value of $10,000 Invested from December 28, 1994 -- June 30, 1995+
(unaudited)
PREMIER LIMITED TERM MUNICIPAL FUND
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS C)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term Municipal Fund Class C shares on December 28, 1994
through June 30, 1995 as compared with the growth of a $10,000 investment
in Lehman Brothers Municipal 10 Year Bond Index and the Lehman Brothers
Municipal 7 Year Bond Index. The plot points used to draw the line graph
were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS C MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES LOAD OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
12/28/95 - $10,000 -
12/94 $10,000 $10,004 $10,000
01/95 $10,164 $10,259 $10,188
02/95 $10,347 $10,549 $10,417
03/95 $10,463 $10,692 $10,526
04/95 $10,480 $10,705 $10,554
05/95 $10,713 $11,044 $10,835
06/95 $10,584 $10,975 $10,825
</TABLE>
AGGREGATE ANNUAL TOTAL RETURN - CLASS C
<TABLE>
<CAPTION>
WITHOUT WITH
CONTINGENT CONTINGENT
DEFERRED DEFERRED
SALES CHARGE SALES CHARGE
<S> <C> <C>
INCEPTION (12/28/94) THROUGH 06/30/95 6.59% 5.84%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class C Shares at in-
ception (December 28, 1994) assuming reinvestment of dividends and cap-
ital gains at net asset value through June 30, 1995.
++ Value assumes deduction of applicable CDSC (assuming redemption on June
30, 1995).
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index which is comprised of
approximately 3,000 municipal bonds having characteristics similar to
the bonds in which the Fund invests, began in January 1990.
Index information is available at month-end only; therefore, the clos-
est month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as a representation of the dividend
income or capital gain or loss which may be realized from an investment
in the Fund today. No adjustment has been made for a shareholder's tax
liability on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not
guarantee future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares upon redemption
may be worth more or less than original cost.
PREMIER LIMITED TERM MUNICIPAL FUND
Change in Value of $10,000 Invested from February 1, 1993 -- June 30, 1995+
(unaudited)
PREMIER LIMITED TERM MUNICIPAL FUND
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS R)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term Municipal Fund Class R shares on February 1, 1993
through June 30, 1995 as compared with the growth of a $10,000 investment
in Lehman Brothers Municipal 10 Year Bond Index and the Lehman Brothers
Municipal 7 Year Bond Index. The plot points used to draw the line graph
were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS R MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
01/30/93 - $10,000 $10,000
02/1/93 $10,000 - -
02/93 $10,399 $10,366 $10,307
03/93 $10,251 $10,215 $10,172
06/93 $10,536 $10,552 $10,454
09/93 $10,865 $10,930 $10,757
12/93 $10,991 $11,089 $10,886
03/94 $10,533 $10,501 $10,476
06/94 $10,650 $10,655 $10,586
09/94 $10,721 $10,729 $10,687
12/94 $10,619 $10,560 $10,585
03/95 $11,128 $11,290 $11,141
06/95 $11,357 $11,590 $11,458
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- CLASS R SHARES
(FORMERLY TRUST SHARES)
<TABLE>
<CAPTION>
<S> <C>
Year Ended 06/30/95 6.64%
Inception (02/1/93) through 06/30/95 5.41%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class R Shares (for-
merly Trust Shares) at inception (February 1, 1993) assuming reinvest-
ment of dividends and capital gains at net asset value through June 30,
1995.
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index which is comprised of
approximately 3,000 municipal bonds having characteristics similar to
the bonds in which the Fund invests, began in January 1990.
Index information is available at month-end only; therefore, the closest
month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as a representation of the dividend in-
come or capital gain or loss which may be realized from an investment in
the Fund today. No adjustment has been made for a shareholder's tax lia-
bility on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not guar-
antee future results. Investment return and principal value of an in-
vestment will fluctuate so that an investor's shares upon redemption may
be worth more or less than original cost.
PORTFOLIO OF INVESTMENTS
PREMIER LIMITED TERM MUNICIPAL FUND JUNE 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 97.7%
ALABAMA -- 1.6%
$ 100,000 Birmingham, Alabama, General Obligation
Bonds,
9.800% due 10/01/15, Prerefunded 10/01/95 $ 103,250
University of Alabama, University Revenue,
275,000 5.000% due 06/01/09 253,344
285,000 5.000% due 06/01/10 260,419
617,013
ALASKA -- 0.3%
100,000 State of Alaska, Certificates of Participa-
tion,
(Rent Spring Creek Correctional Center),
Series A,
9.700% due 10/01/07, Prerefunded 10/01/95 103,250
ARIZONA -- 6.0%
1,000,000 Arizona State Transportation Board, Excise
Revenue,
7.000% due 07/01/95 1,000,000
1,250,000 Phoenix, Arizona, Refunding Revenue, Series
A,
6.250% due 07/01/16 1,301,563
2,301,563
ARKANSAS -- 1.7%
100,000 Little Rock, Arkansas, Hotel & Restaurant
Gross Receipts Tax, Refunding Bonds,
(Little Rock Convention Center),
7.625% due 01/01/05, Prerefunded 01/01/96 104,750
500,000 North Little Rock, Arkansas, Electric Ser-
vices,
6.000% due 07/01/01 533,125
637,875
CALIFORNIA -- 5.7%
1,000,000 Los Angeles, California, Convention and
Exhibition Center,
7.375% due 08/15/18, Prerefunded 08/15/99 1,123,750
1,000,000 Los Angeles, California, Transportation Au-
thority,
8.000% due 07/01/97 1,066,250
2,190,000
COLORADO -- 2.0%
750,000 Platte River Power Authority, Electric Rev-
enue,
Series B,
5.625% due 06/01/03 779,063
CONNECTICUT -- 4.2%
1,000,000 Connecticut State, General Obligation, Se-
ries B,
5.950% due 11/15/00 1,056,250
500,000 Stamford, Connecticut, General Obligation,
6.600% due 01/15/07 560,625
1,616,875
FLORIDA -- 0.3%
100,000 Dade County, Florida, Public Improvement
Bonds, Series C,
7.125% due 10/01/16 103,625
GEORGIA -- 1.5%
500,000 Fulton County, Georgia, Fulton-De Kalb Hos-
pital Authority Revenue Certificates, Se-
ries A,
7.250% due 01/01/20, Prerefunded 01/01/00 561,250
ILLINOIS -- 9.0%
1,000,000 Chicago, Illinois, Metropolitan Water Au-
thority,
7.250% due 12/01/12 1,151,250
100,000 Chicago, Illinois, Refunding Bonds, Series
B,
7.250% due 01/01/10 103,875
300,000 Chicago, Illinois, School Financing Author-
ity,
Refunding Bonds, Series B,
7.750% due 06/01/09, Prerefunded 10/01/95 315,750
1,000,000 Illinois State, Revenue Bonds,
6.750% due 06/15/06, Prerefunded 06/15/97 1,065,000
390,000 Regional Transportation Authority, Illi-
nois, Series C,
7.750% due 06/01/12 468,000
300,000 Springfield, Sangamon County, Illinois,
School District #186,
7.700% due 06/01/01 338,250
3,442,125
INDIANA -- 0.4%
100,000 Indiana State Toll Finance Authority,
Toll Road Revenue Bonds,
9.500% due 07/01/10, Prerefunded 07/01/95 102,015
50,000 Indiana Transportation Finance Authority,
Highway Revenue Bonds,
7.875% due 12/01/11, Prerefunded 12/01/98 56,313
158,328
KENTUCKY -- 2.9%
1,000,000 Kentucky State Turnpike Authority,
6.500% due 07/01/07 1,100,000
MARYLAND -- 2.8%
1,000,000 Maryland State, General Obligation, Second
Series,
7.000% due 01/01/01, Prerefunded 01/01/98 1,075,000
MASSACHUSETTS -- 2.2%
750,000 Massachusetts Bay Transportation Authority,
Revenue Bonds,
5.300% due 03/01/04 750,938
100,000 Massachusetts Health & Educational
Facilities Authority, Revenue Bonds,
(Addison Gilbert Hospital), Series B,
8.700% due 07/01/97, Prerefunded 07/01/95 102,013
852,951
MICHIGAN -- 3.2%
1,030,000 Berkley, Michigan, City School District,
General Obligation,
7.000% due 01/01/09 1,161,325
50,000 Comstock Park, Michigan, Public Schools
Revenue Bonds,
6.000% due 05/01/16, Prerefunded 05/01/99 53,375
1,214,700
NEW JERSEY -- 2.9%
500,000 Cumberland County, New Jersey, Improvement
Authority, Solid Waste Disposal Revenue,
6.000% due 01/01/01 530,000
600,000 New Jersey State Transportation Authority,
Revenue Bonds, Series A,
4.750% due 06/15/03 580,500
1,110,500
NEW MEXICO -- 0.3%
100,000 Farmington, New Mexico, Utility Systems
Revenue Bonds,
9.750% due 05/15/13, Prerefunded 05/15/96 106,750
NEW YORK -- 7.6%
200,000 New York State Dormitory Authority Revenue
Bonds, Series A,
7.125% due 05/15/09 216,750
500,000 New York State, Environmental Pollution
Control Revenue Bonds,
Series A,
7.500% due 06/15/12 561,250
1,000,000 New York State Power Authority,
Revenue Bonds,
4.800% due 01/01/05 960,000
1,000,000 New York State, Refunding Revenue, Series
B,
6.250% due 08/15/04 1,073,750
100,000 Triborough Bridge & Tunnel Authority,
New York, General Purpose Revenue Bonds,
Series P,
7.000% due 01/01/11, Prerefunded 01/01/99 110,000
2,921,750
NORTH CAROLINA -- 4.0%
North Carolina Eastern Municipal Power
Agency, Power Systems Revenue Bonds:
1,420,000 7.500% due 01/01/15, Prerefunded 01/01/97 1,515,850
5,000 8.000% due 01/01/21, Prerefunded 01/01/98 5,525
1,521,375
OHIO -- 5.8%
575,000 Columbus, Ohio, General Obligation Bonds,
Series 1,
5.250% due 09/15/05 581,469
250,000 Cuyahoga County, Ohio, Hospital Revenue Re-
funding Bonds, (Sinai Medical Center),
Series A,
8.125% due 11/15/14 269,062
625,000 Gahanna -- Jefferson City, Ohio, City
School District,
5.100% due 12/01/01 631,250
750,000 Ohio State Building Authority, Correctional
Facilities,
4.500% due 10/01/02 719,063
2,200,844
OREGON -- 2.1%
500,000 Oregon State, Department of General Ser-
vices,
Certificate of Participation, Series E,
6.600% due 09/01/98 531,250
250,000 Tri-County Metroplitan Transportation Dis-
trict,
General Obligation, Series A,
5.600% due 07/01/03 256,563
787,813
PENNSYLVANIA -- 5.8%
1,000,000 Pennsylvania State, Intergovernment Author-
ity,
Special Tax Bond,
6.800% due 06/15/22, Prerefunded 06/15/02 1,120,000
1,000,000 Somerset County, Pennsylvania,
General Authority Revenue,
6.700% due 10/15/03, Prerefunded 10/15/01 1,107,500
2,227,500
PUERTO RICO -- 1.2%
350,000 Commonwealth of Puerto Rico,
General Obligation Bonds,
6.700% due 07/01/98 373,625
100,000 Commonwealth of Puerto Rico, Industrial,
Medical and Environmental Pollution Con-
trol Facilities Financing Authority, Rev-
enue Bonds, (Hospital Project), (FHA in-
sured)+++,
9.750% due 08/01/25, Prerefunded 08/01/95 102,375
476,000
RHODE ISLAND -- 0.3%
100,000 Rhode Island State, Health & Educational
Building Corporation, Revenue Bonds,
(Rhode Island Hospital),
9.750% due 07/01/13, Prerefunded 07/01/95 102,015
TENNESSEE -- 4.3%
1,500,000 Rutherford County, Tennessee, Series A,
General Obligation,
6.500% due 05/01/06 1,642,500
TEXAS -- 10.8%
Austin, Texas, Utility System Revenue
Bonds:
100,000 10.250% due 11/15/12, Prerefunded
11/15/95 104,125
200,000 Series A,
8.000% due 11/15/16, Prerefunded 05/15/01 232,500
200,000 Bridgeport, Texas, Independent School Dis-
trict,
Revenue Bonds,
6.000% due 08/15/01 210,250
875,000 Fort Bend, Texas, Independent School Dis-
trict,
Revenue Bonds,
6.600% due 02/15/04 961,405
Lewisville, Texas, Independent School Dis-
trict,
Revenue Bonds:
650,000 7.500% due 08/15/06 762,125
600,000 7.500% due 08/15/07 707,250
100,000 Lower Colorado River, Texas, Revenue Bonds,
9.500% due 01/01/13, Prerefunded 01/01/96 104,625
100,000 San Antonio, Texas, Independent School Dis-
trict, Revenue Bonds,
8.250% due 06/15/01, Prerefunded 06/15/96 103,875
1,000,000 Tarrant County, Texas, General Obligation
Bonds,
4.700% due 07/15/05 956,250
4,142,405
VIRGINIA -- 2.7%
1,000,000 Virginia Transportation Contract, Rt. 28,
Revenue Bonds,
6.000% due 04/01/05 1,038,750
WASHINGTON -- 6.1%
100,000 Grant County, Washington, Public Utility
District No. 2, Electric Revenue Bonds,
Series C,
7.200% due 01/01/07, Prerefunded 07/01/96 103,000
1,055,000 Snohomish County, Washington, Public Util-
ity
District No. 001, Electric Refunding
Revenue Bonds, (Generation System), Se-
ries 86 A,
8.000% due 01/01/15, Prerefunded 01/01/97 1,132,805
1,000,000 Washington State, Public Power Authority,
Revenue Bonds, Series A,
7.000% due 07/01/08 1,115,000
2,350,805
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $36,561,327) 37,382,625
SHORT-TERM MUNICIPAL BONDS
AND NOTES -- 4.1%
ALASKA -- 1.3%
500,000 Anchorage, Alaska, Revenue Bonds,
4.500% due 06/01/12+ 500,000
CALIFORNIA -- 1.8%
190,000 Bay Area, California, Revenue Bonds,
4.000% due 04/01/97+ 190,000
Los Angeles, California, Multifamily
Housing Revenue:
100,000 3.950% due 07/01/15+ 100,000
100,000 4.250% due 10/01/14+ 100,000
Los Angeles, California, Regional Apart-
ments:
200,000 Series B,
4.350% due 12/01/24++ 200,000
100,000 Series E,
4.350% due 12/01/24++ 100,000
690,000
MASSACHUSETTS -- 0.5%
200,000 Massachusetts State, Health Care Facili-
ties,
4.200% due 04/01/09++ 200,000
MISSOURI -- 0.5%
200,000 Perry County, Missouri, Pollution Control
Revenue,
4.150% due 03/01/02++ 200,000
TOTAL SHORT-TERM MUNICIPAL BONDS
AND NOTES
(Cost $1,590,000) 1,590,000
TOTAL INVESTMENTS
(Cost $38,151,327*) 101.8% 38,972,625
OTHER ASSETS AND LIABILITIES (NET) (1.8) (702,456)
NET ASSETS 100.0% $38,270,169
<FN>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand notes are payable upon not more than seven busi-
ness days' notice. The interest rate shown reflects the rate currently
in effect.
++ Variable rate demand notes are payable upon not more than one business
day's notice. The interest rate shown reflects the rate currently in
effect.
+++ FHA -- Federal Housing Administration.
</TABLE>
See Notes to Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
PREMIER LIMITED TERM MUNICIPAL FUND JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS
Investments, at value (Cost $38,151,327)
(Note 1)
See accompanying schedule $38,972,625
Cash 64,602
Interest receivable 718,041
Receivable for Fund shares sold 2,500
TOTAL ASSETS 39,757,768
LIABILITIES:
Payable for investment securities purchased $1,371,048
Dividends payable 61,971
Investment management fee payable (Note 2) 44,988
Distribution fee payable (Note 3) 4,486
Payable for Fund shares redeemed 3,804
Accrued Trustees' fees and expenses (Note
2) 1,269
Service fee payable (Note 3) 33
TOTAL LIABILITIES 1,487,599
NET ASSETS $38,270,169
NET ASSETS consist of:
Accumulated net realized loss on securities
sold and futures contracts $(166,011)
Unrealized appreciation of investments 821,298
Paid-in capital 37,614,882
TOTAL NET ASSETS $38,270,169
NET ASSET VALUE:
CLASS A SHARES:
Net asset value and redemption price per
share ($21,374,735 / 1,808,606 shares of
beneficial interest outstanding) $11.82
Maximum offering price per share ($11.82 /
0.97) (based on maximum sales charge of
3.0% of the offering price on June 30,
1995) $12.19
CLASS B SHARES:
Net asset value and offering price per
share+ ($84,585 / 7,157 shares of benefi-
cial interest outstanding) $11.82
CLASS C SHARES:
Net asset value and offering price per
share+ ($84,158 / 7,121 shares of beneficial in-
terest outstanding) $11.82
CLASS R SHARES:
Net asset value and redemption price per
share ($16,726,691 / 1,415,419 shares of
beneficial interest outstanding) $11.82
<FN>
+ Redemption price per share is equal to net asset value less any applica-
ble contingent deferred sales charge.
</TABLE>
STATEMENT of OPERATIONS
PREMIER LIMITED TERM MUNICIPAL FUND
FOR THE YEAR ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest $1,956,769
EXPENSES:
Investment management fee (Note 2) $179,992
Distribution fee (Note 3) 56,153
Trustees' fees and expenses (Note 2) 3,035
Service fee (Note 3) 118
TOTAL EXPENSES 239,298
NET INVESTMENT INCOME 1,717,471
REALIZED AND UNREALIZED GAIN/(LOSS) ON IN-
VESTMENTS (Notes 1 and 4):
Net realized gain/(loss) on:
Securities transactions (203,385)
Futures contracts 37,373
Net realized loss on investments during the
year (166,012)
Net unrealized appreciation of investments
during the year 737,035
NET REALIZED AND UNREALIZED GAIN ON INVEST-
MENTS 571,023
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $2,288,494
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
PREMIER LIMITED TERM MUNICIPAL FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
6/30/95 6/30/94
<S> <C> <C>
Net investment income $1,717,471 $1,637,818
Net realized gain/(loss) on securities and
futures contracts during the year (166,012) 411,488
Net unrealized appreciation/(depreciation)
of securities and futures contracts dur-
ing the year 737,035 (1,792,658)
Net increase in net assets resulting from
operations 2,288,494 256,648
Distributions to shareholders from net in-
vestment income:
Class A (1,028,941) (1,114,200)
Class B (1,466) --
Class C (402) --
Class R (686,662) (523,618)
Distribution to shareholders from net real-
ized capital gains:
Class A (50,842) (1,093,772)
Class R (31,702) (436,684)
Net increase/(decrease) in net assets from
Fund shares transactions (Note 5):
Class A (2,612,911) 1,377,089
Class B 81,625 --
Class C 84,072 --
Class R 3,933,212 4,541,935
Net increase in net assets 1,974,477 3,007,398
NET ASSETS:
Beginning of year 36,295,692 33,288,294
End of year (including distributions in ex-
cess of net investment income of $23,994
at June 30, 1994.) $38,270,169 $36,295,692
</TABLE>
See Notes to Financial Statements
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM MUNICIPAL FUND
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
6/30/95# 6/30/94# 6/30/93 6/30/92
<S> <C> <C> <C> <C>
Net asset value, beginning of year $11.66 $12.61 $12.21 $11.58
Income from investment opera-
tions:
Net investment income** 0.53 0.54 0.60 0.70
Net realized and unrealized
gain/(loss) on investments 0.19 (0.41) 0.68 0.65
Total income from investment
operations 0.72 0.13 1.28 1.35
Less distributions:
Distributions from net invest-
ment income (0.53) (0.54) (0.60) (0.70)
Distributions from net real-
ized capital gains (0.03) (0.54) (0.28) (0.02)
Total distributions (0.56) (1.08) (0.88) (0.72)
Net asset value, end of year $11.82 $11.66 $12.61 $12.21
Total Return+++ 6.37% 0.96% 10.95% 11.94%
Ratios to average net assets/
supplemental data:
Net assets, end of year (in
000's) $21,375 $23,715 $18,251 $26,192
Ratio of operating expenses to
average net assets++ 0.75% 0.76% 1.03% 0.97%
Ratio of net investment income
to average net assets 4.59% 4.43% 4.91% 5.82%
Portfolio turnover rate 61% 57% 103% 30%
<FN>
* The Fund commenced operations on October 5, 1985. On February 1, 1993
existing shares of the Fund were designated the Retail Class and the
Fund began offering the Institutional Class and Investment Class of
shares. Effective April 4, 1994 the Retail and Institutional Classes
were reclassified as a single class of shares known as the Investor
Shares. Effective October 17, 1994, the Investor Shares were redesig-
nated Class A Shares. The Financial Highlights for the year ended June
30, 1995 are based upon a Class A (formerly Investor) Share outstand-
ing. The amounts shown for the year ended June 30, 1994 were calcu-
lated using the performance of a Retail Shares outstanding from July
1, 1993 to April 3, 1994, and the performance of an Investor Share
outstanding from April 4, 1994 to June 30, 1994. The Financial High-
lights for the year ended June 30, 1993 and prior years are based upon
a Retail Share outstanding.
** Net investment income before waiver of fees and/or reimbursement of
expenses by the investment adviser and/or custodian and/or transfer
agent for the years ended June 30, 1994, 1993, 1992, 1991, 1990,
1989, 1988, 1987 and for the period ended June 30, 1986 were $0.49,
$0.59, $0.68, $0.68, $0.70, $0.68, $0.70, $0.71 and $0.54, respec-
tively.
</TABLE>
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
6/30/91 6/30/90 6/30/89 6/30/88 6/30/87 6/30/86*
<S> <C> <C> <C> <C> <C>
$ 11.44 $11.95 $11.36 $11.23 $11.06 $10.00
0.74 0.76 0.78 0.76 0.76 0.59
0.14 (0.18) 0.67 0.13 0.17 1.06
0.88 0.58 1.45 0.89 0.93 1.65
(0.74) (0.77) (0.79) (0.74) (0.76) (0.59)
-- (0.32) (0.07) (0.02) -- --
(0.74) (1.09) (0.86) (0.76) (0.76) (0.59)
$ 11.58 $11.44 $11.95 $11.36 $11.23 $11.06
7.97% 5.06% 13.29% 8.21% 8.47% 16.68%
$18,042 $15,209 $13,304 $10,150 $9,225 $6,286
0.81% 0.82% 0.79% 0.79% 0.78% 0.75%+
6.43% 6.45% 6.82% 6.73% 6.58% 7.25%+
54% 76% 101% 81% 241% 5%
<FN>
+ Annualized.
++ Annualized expense ratios before voluntary waiver of fees and/or reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the years ended June 30, 1994, 1993, 1992,
1991, 1990, 1989, 1988, 1987 and for the period ended June 30, 1986
were 1.09%, 1.11%, 1.12%, 1.31%, 1.32%, 1.65%, 1.29%, 1.21% and 1.41%,
respectively.
+++ Total return represents aggregate total return for the periods indi-
cated and does not reflect the deduction of any applicable sales
charge.
# Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manger. From April 4,1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager. Prior
to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment adviser.
</TABLE>
See Notes to Financial Statements
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM MUNICIPAL FUND
FOR A CLASS B SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
6/30/95*
<S> <C>
Net asset value, beginning of period $ 11.32
Income from investment operations:
Net investment income 0.24
Net realized and unrealized gain on investments 0.50
Total income from investment operations 0.74
Less distributions:
Distributions from net investment income (0.24)
Net asset value, end of period $ 11.82
Total Return++ 6.59%
Ratios to average net assets/supplemental data:
Net assets end of period (in 000's) $ 85
Ratio of operating expenses to average net assets++ 1.25%+
Ratio of net investment income to average net assets 4.09%+
Portfolio turnover rate 61%
<FN>
* The Fund commenced selling Class B shares on December 28, 1994.
+ Annualized.
++ Total return represents aggregate total return for the period indicated
and does not reflect any applicable sales charge.
</TABLE>
See Notes to Financial Statements
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM MUNICIPAL FUND
FOR A CLASS C SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
6/30/95*
<S> <C>
Net asset value, beginning of period $ 11.32
Income from investment operations:
Net investment income 0.25
Net realized and unrealized gain on investments 0.49
Total income from investment operations 0.74
Less distributions:
Distributions from net investment income (0.24)
Net asset value, end of period $ 11.82
Total Return++ 6.59%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 84
Ratio of operating expenses to average net assets++ 1.25%+
Ratio of net investment income to average net assets 4.09%+
Portfolio turnover rate 61%
<FN>
* The Fund commenced selling Class C shares on December 28, 1994.
+ Annualized.
++ Total return represents aggregate total return for the period indicated
and does not reflect any applicable sales charge.
</TABLE>
See Notes to Financial Statements
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM MUNICIPAL FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<TABLE>
<CAPTION>
YEAR YEAR PERIOD
ENDED ENDED ENDED
6/30/95# 6/30/94# 6/30/93
<S> <C> <C> <C>
Net asset value, beginning of
year $11.66 $12.61 $12.21
Income from investment opera-
tions:
Net investment income** 0.56 0.58 0.25
Net realized and unrealized
gain/(loss) on investments 0.19 (0.43) 0.40
Total from investment operations 0.75 0.15 0.65
Less distributions:
Distributions from net invest-
ment income (0.56) (0.56) (0.25)
Distributions from net realized
capital gains (0.03) (0.54)
Total distributions (0.59) (1.10) (0.25)
Net asset value, end of year $11.82 $11.66 $12.61
Total Return+++ 6.64% 1.08% 5.36%
Ratios to average net assets/
supplemental data:
Net assets, end of year (in
000's) $16,727 $12,581 $8,974
Ratio of operating expenses to
average net assets++ 0.50% 0.50% 0.68%+
Ratio of net investment income
to average net assets 4.84% 4.69% 4.82%+
Portfolio turnover rate 61% 57% 103%
<FN>
* The Fund commenced selling Investment Class shares on February 1,
1993. Effective April 4, 1994 the Investment Class was redesignated
the Trust Shares. Effective October 17, 1994, the Trust Shares were
redesignated Class R Shares. The table above is based upon an Invest-
ment share outstanding from February 1, 1993 to April 3, 1994 and a
Trust share outstanding from April 4, 1994 to October 16, 1994.
** Net investment income before waiver of fees and/or reimbursement of
expenses by the investment adviser and/or custodian and/or transfer
agent for the year ended June 30, 1994 and for the period ended June
30, 1993 were $0.54 and $0.24, respectively.
+ Annualized.
++ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the year ended June 30, 1994 and for the pe-
riod ended June 30, 1993 were 0.83% and 0.93%, respectively.
+++ Total return represents aggregate total return for the periods indi-
cated.
# Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manger. From April 4,1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager. Prior
to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment adviser.
</TABLE>
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENT
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Tax-Free Municipal Funds (the "Trust"), The Dreyfu-
s/Laurel Funds, Inc., The Dreyfus/Laurel Funds Trust and The Dreyfus/Lau-
rel Investment Series are all registered open-end investment companies
that are now part of the Dreyfus Family of Funds. The Trust is an invest-
ment company which consists of seven funds: the Dreyfus/Laurel California
Tax- Free Money Fund, the Dreyfus/Laurel Massachusetts Tax-Free Money
Fund, the Dreyfus/Laurel New York Tax-Free Money Fund, the Premier
Limited-Term California Municipal Fund, the Premier Limited-Term Massachu-
setts Municipal Fund, the Premier Limited-Term New York Municipal Fund and
the Premier Limited-Term Municipal Fund. These financial statements report
on the Premier Limited-Term Municipal Fund (the "Fund"). The Trust is a
Massachusetts business trust and is registered with the Securities and Ex-
change Commission under the Investment Company Act of 1940, as amended
(the "1940 Act"), as an open-end management investment company. The Fund
currently offers four classes of shares: Class A, Class B, Class C and
Class R shares (effective October 17, 1994, the Investor shares were rede-
signated Class A shares and the Trust Shares were redesignated Class R
shares). Class A, Class B and Class C shares are sold primarily to retail
investors through financial intermediaries and bear a distribution fee.
Class A shares are generally sold with a front-end sales charge or may be
subject to a contingent deferred sales charge ("CDSC") and are subject to
distribution fees. Class B and Class C shares are subject to a CDSC and
distribution and service fees. Class R shares are sold primarily to bank
trust departments and other financial service providers (including Mellon
Bank N.A. ("Mellon Bank") and its affiliates) acting on behalf of custom-
ers having a qualified trust or investment account or relationship at such
institution and bear no distribution fee. Each class of shares has identi-
cal rights and privileges except with respect to the distribution and ser-
vice fees and voting rights on matters affecting a single class. The
following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements in ac-
cordance with generally accepted accounting principals.
(A) PORTFOLIO VALUATION
The portfolio securities of the Fund, except as otherwise noted, listed or
traded on a national securities exchange, are valued at the latest sale
price. If no sale is reported, the mean of the latest bid and asked prices
is used. Securities traded over-the-counter are priced at the mean of the
latest bid and asked prices but will be valued at the last sale price if
required by regulations of the SEC. When market quotations are not readily
available, securities and other assets are valued at fair value as deter-
mined in good faith in accordance with procedures established by the Board
of Trustees. Debt securities with maturities of 60 days or less from the
valuation day are valued on the basis of amortized cost. Bonds are valued
through valuations obtained from a commercial pricing service or at the
most recent mean of the bid and asked prices provided by investment deal-
ers in accordance with procedures established by the Board of Trustees.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Interest income
is recorded on the accrual basis. Realized gains and losses from securi-
ties transactions are recorded on the identified cost basis. Investment
income and realized and unrealized gains and losses are allocated based
upon the relative average daily net assets of each class of shares.
(C) FUTURES CONTRACTS ACCOUNTING PRINCIPLES
The Fund may enter into futures contracts to hedge against fluctuations in
the value of its portfolio. Upon entering into a futures contract, the
Fund is required to deposit with the broker an amount of cash or cash
equivalents equal to a certain percentage of the contract amount. This is
known as the initial margin. Subsequent payments ("variation margin") are
made or received by the Fund each day, depending on the daily fluctuation
of the value of the contract. The daily changes in the contract are re-
corded as unrealized gains or losses. The Fund recognizes a realized gain
or loss when the contract is closed.
The use of futures contracts as a hedging device involves several risks.
The change in value of futures contracts primarily corresponds with the
value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, the Fund may not
be able to enter into a closing transaction because of an illiquid second-
ary market.
(D) EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any
class of shares are prorated among the classes based upon the relative av-
erage daily net assets of each class. Distribution expense is directly at-
tributable to a particular class of shares and is charged only to that
class' operations.
(E) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income, if any, are determined on a
class level on each day the Fund is open for business and are paid no
later than the first business day of the next month. Distributions from
net realized capital gains, if any, are determined on a Fund level and are
declared and paid annually. The Fund is subject to a 4% nondeductible ex-
cise tax measured with respect to certain undistributed amounts of net in-
vestment income and capital gain. The Fund expects to make such additional
distributions as are necessary to avoid the application of this tax. In-
come distributions and capital gain distributions on a Fund level are de-
termined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily
due to differing treatments of income and gains on various investment se-
curities held by the Fund, timing differences and differing characteriza-
tion of distributions made by the Fund as a whole.
(F) FEDERAL INCOME TAXES
The Fund intends to qualify as a regulated investment company by complying
with the requirements of the Internal Revenue Code applicable to regulated
investment companies and by distributing substantially all of its taxable
income to shareholders. Therefore, no Federal income tax provision is re-
quired.
2. INVESTMENT MANAGEMENT FEE, TRUSTEES' FEES AND
OTHER PARTY TRANSACTIONS
Effective as of October 17, 1994 the Trust's investment management agree-
ment with Mellon Bank was transferred to The Dreyfus Corporation (the
"Manager"), a wholly-owned subsidiary of Mellon Bank. The Manager pro-
vides, or arranges for one or more third parties to provide, investment
advisory, administrative, custody, fund accounting and transfer agency
services to the Trust. The Manager also directs the investments of the
Fund in accordance with its investment objectives, policies and limita-
tions. For these services, the Fund is contractually obligated to pay the
Manager a fee, calculated daily and paid monthly, at the annual rate of
0.50% 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, Rule 12b-1 distribution fees and expenses, fees and ex-
penses of the non-interested trustees (including counsel fees) and ex-
traordinary expenses. In addition, the Manager is required to reduce its
fee in an amount equal to the Fund's allocable portion of fees and ex-
penses of non-interested Trustees (including counsel).
Prior to October 17, 1994, Mellon Bank served as the Fund's investment
manager pursuant to the investment management agreement described above.
Prior to September 23, 1994, Frank Russell Investment Management Company
(the "Administrator") served as the Fund's administrator and provided pur-
suant to an administration agreement various administrative and corporate
secretarial services to the Fund. Mellon Bank, as investment manager, paid
the Administrator's fee out of the management fee described above.
Prior to October 17, 1994, Funds Distributor, Inc. served as distributor
of the Trust's shares. Effective as of October 17, 1994, Premier Mutual
Fund Services, Inc. ("Premier") serves as the Trust's distributor. Premier
also serves as the Trust's sub-administrator and, pursuant to a sub-
administration agreement with the Manager, provides various administrative
and corporate secretarial services to the Trust.
For the year ended June 30, 1995, Premier received commissions (sales
charges) of $14,093 from investors on sales of Class A shares.
A CDSC is generally payable by a shareholder in connection with the re-
demption of certain Class A, Class B and Class C shares. In circumstances
in which the CDSC is imposed, the amount of the charge will vary depending
on the number of years since the date of purchase.
No officer or employee of Premier (or of any parent, subsidiary or affili-
ate thereof) receives any compensation from The Dreyfus/Laurel Funds,
Inc., The Dreyfus/Laurel Funds Trust, the Trust or The Dreyfus/Laurel In-
vestment Series (collectively, "The Dreyfus/Laurel Funds") for serving as
an officer, Director or Trustee of The Dreyfus/Laurel Funds. In addition,
no officer or employee of the Manager (or of any parent, subsidiary or af-
filiate thereof) serves as an officer, Director or Trustee of The Dreyfu-
s/Laurel Funds. The Dreyfus/Laurel Funds pay each Director or Trustee who
is not an officer or employee of Premier (or any parent, subsidiary or af-
filiate thereof), or of the Manager, $27,000 per annum, $1,000 for each
Board meeting attended and $750 for each Audit Committee meeting attended,
and reimburse each Director or Trustee for travel and out-of-pocket ex-
penses.
3. DISTRIBUTION PLAN
Class A shares are subject to a distribution plan (the "Plan") adopted
pursuant to Rule 12b-1 of the 1940 Act. Under the Plan, the Fund may pay
annually up to 0.25% of its average daily net assets attributable to Class
A shares to compensate Premier and Dreyfus Service Corporation, an affili-
ate of the Manager, for shareholder servicing activities and Premier for
activities and expenses primarily intended to result in the sale of Class
A shares. Class B and Class C shares are subject to a separate distribu-
tion plan adopted pursuant to Rule 12b-1, pursuant to which the Fund pays
Premier for distributing the Fund's Class B and C shares, at an aggregate
annual rate of 0.50% of the value of the average daily net assets of Class
B and C. Class B and Class C shares are also subject to a service plan
adopted pursuant to Rule 12b-1, pursuant to which the Fund pays Dreyfus
Service Corporation or Premier for providing certain services to the hold-
ers of Class B and C shares a fee at the annual rate of 0.25% of the value
of the average daily net assets of Class B and Class C shares. For the
year ended June 30, 1995, the distribution fees for Class A, Class B, and
Class C were $55,917, $179 and $57, respectively. For the year ended June
30, 1995, the service fees for Class B and Class C were $89 and $29, re-
spectively. Class R shares bear no distribution or service fee.
Under its terms, the Plan shall remain in effect from year to year, pro-
vided such continuance is approved annually by a vote of a majority of
those Trustees who are not "interested persons" of the Trust and who have
no direct or indirect financial interest in the operation of the plan or
in any agreement related to the plans.
4. SECURITIES TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of securities, ex-
cluding short- term investments, aggregated $27,302,300 and $20,772,207,
respectively, for the year ended June 30, 1995.
At June 30, 1995, aggregate gross unrealized appreciation for all securi-
ties in which there is an excess of value over tax cost was $1,060,830 and
aggregate gross unrealized depreciation for all securities in which there
is an excess of tax cost over value was $239,532.
5. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of ben-
eficial interest of each class in each separate series, without par value.
The Trust offers four classes of shares of the Fund. The tables below sum-
marize transactions in Fund shares for the years or period indicated.
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 1995** JUNE 30, 1994#
<S> <C> <C> <C> <C>
SHARES AMOUNT SHARES+ AMOUNT++
CLASS A SHARES:
Sold 517,296 $5,989,210 1,263,188 $15,623,897
Issued as rein-
vestment of
dividends and
distributions 80,218 929,728 157,941 1,924,481
Redeemed (823,489) (9,531,849) (1,314,307) (16,171,289)
Net increase/(de-
crease) (225,975) $(2,612,911) 106,822 $1,377,089
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1995*
<S> <C> <C>
SHARES AMOUNT
CLASS B SHARES:
Sold 7,145 $81,474
Issued as rein-
vestment of
dividends and
distributions 13 161
Redeemed <F1> <F10>
Net increase 7,157 $81,625
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1995**
<S> <C> <C>
SHARES AMOUNT
CLASS C SHARES:
Sold 7,116 $84,008
Issued as rein-
vestment of
dividends and
distributions 5 64
Net increase 7,121 $84,072
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 1995** JUNE 30, 1994#
<S> <C> <C> <C> <C>
SHARES AMOUNT SHARES AMOUNT
CLASS R SHARES:
Sold 689,685 $7,987,960 796,221 9,781,827
Issued as rein-
vestment of
dividends and
distributions 13,891 161,104 17,601 213,170
Redeemed (367,505) (4,215,852) (445,983) (5,453,062)
Net increase 336,071 $3,933,212 367,839 $4,541,935
<FN>
* The Fund commenced selling Class B and Class C Shares on December 28,
1994.
** On October 17, 1994, the Investor and Trust Shares were redesignated
Class A and Class R shares, respectively.
+ Shares include 784,364 of subscriptions, 39,536 of reinvestments and
763,362 of redemptions for Class A Shares (formerly the Institutional
Class) up to April 4, 1994.
++ Amounts include $9,755,119 of subscriptions, $484,346 of reinvestments
and $9,483,248 of redemptions for Class A Shares (formerly the Institu-
tional Class) up to April 4, 1994.
# Effective April 4, 1994, the Retail and Institutional Classes of Shares
were reclassified as a single class of shares known as Investor Shares.
</TABLE>
6. CAPITAL LOSS CARRYFORWARD
As of June 30, 1995, the Fund has available for Federal tax purposes an
unused capital loss carryforward of $79,855, expiring in 2003.
INDEPENDENT AUDITORS' REPORT
[LOGO]
The Board of Trustees and Shareholders
The Dreyfus/Laurel Tax-Free Municipal Funds
We have audited the accompanying statements of assets and liabilities, in-
cluding the portfolio of investments, of the Premier Limited Term Munici-
pal Fund (formerly the Laurel Tax-Free Bond Fund) of The Dreyfus/Laurel
Tax-Free Municipal Funds (formerly the Laurel Tax-Free Municipal Funds) as
of June 30, 1995, and the related statement of operations for the year
then ended, statement of changes in net assets for each of the years in
the two-year period then ended and financial highlights for each of the
years or periods in the two-year period ended June 30, 1995. These finan-
cial 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. The fi-
nancial highlights presented for each of the years or periods ended June
30, 1993 or prior were audited by other auditors whose report thereon,
dated August 11, 1993, expressed an unqualified opinion on those financial
highlights.
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 fi-
nancial highlights are free of material misstatement. An audit also in-
cludes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirma-
tion of securities owned as of June 30, 1995, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of the Premier Limited Term Municipal Fund of The Dreyfus/Laurel Tax-Free
Municipal Funds as of June 30, 1995, the results of its operations for the
year then ended, the changes in its net assets for each of the years in
the two-year period then ended and the financial highlights for each of
the years or periods in the two-year period then ended in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Boston, Massachusetts
August 18, 1995
TAX INFORMATION (UNAUDITED)
PREMIER LIMITED TERM MUNICIPAL FUND
YEAR ENDED JUNE 30, 1995
Of the dividends paid by the Fund from net investment income for the fis-
cal year ended June 30, 1995, 100% is tax-exempt for regular Federal in-
come tax purposes.
In accordance with tax law, the Fund has elected to defer the recognition
of losses occurring between October 31, 1994 and June 30, 1995 until the
first day of the following fiscal year. The amount of such deferral is
$86,157 of capital losses. These losses for tax purposes will be deemed to
occur on July 1, 1995.
During the fiscal year ended June 30, 1995, the Fund paid $18,544 of Long
Term Capital Gains to its shareholders.
The above figures may differ from those cited elsewhere in this report due
to differences in the calculation of income and capital gains for Securi-
ties and Exchange Commission (book) purposes and Internal Revenue Service
(tax) purposes.
DESCRIPTION OF ART WORK ON REPORT COVER
Small box above fund name showing a lions face.
DEAR SHAREHOLDER,
We are pleased to provide you with the Premier Limited Term California,
Massachusetts and New York Municipal Funds' Annual Report for the year
ended June 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on each Fund's investment strategy and
detailed financial statements for the past twelve months.
As you know, the Funds have been integrated into The Dreyfus Family of
Funds. We hope that you found the transition from The Laurel Funds to The
Dreyfus Family of Funds to be a smooth one. The extended family of funds
now offers you more investment alternatives in addition to expanded ser-
vices and privileges to better serve your investment needs.
We would like to extend our appreciation for your support of the Dreyfus
Family of Funds and hope that you will find that the Funds will continue
to satisfy your investment needs. As always, we welcome your thoughts and
suggestions.
Sincerely,
Marie E. Connolly
President
The Dreyfus/Laurel Tax-Free Municipal Funds --
Premier Limited Term California Municipal Fund
Premier Limited Term Massachusetts Municipal Fund
Premier Limited Term New York Municipal Fund
August 18, 1995
TABLE OF CONTENTS
Shareholder Letter 1
Economic Review 3
Portfolio Overview 5
Performance Summary 7
Portfolio of Investments 17
Statements of Assets and Liabilities 29
Statements of Operations 31
Statements of Changes in Net Assets 32
Financial Highlights 34
Notes to Financial Statements 48
Independent Auditors' Report 59
Tax Information 60
ECONOMIC REVIEW
ECONOMIC SLOWDOWN IS MARKED BUT NOT RECESSIONARY
The economic slowdown long hoped for by many analysts and strongly pursued
by the Federal Reserve Board ("Fed") finally took hold over the past six
months. In fact, the economy slowed more than expected, as evidenced by
the Fed's quarter point decrease in interest rates in early July. Employ-
ment weakness in April and May signified that the slowdown had begun to
erode the economy's income-generating capacity somewhat, slowing down the
advance in spendable income.
Nonetheless, we are confident that a recession is not underway. First of
all, the economy is not exhibiting the financial stresses and imbalances
that often mark the end of an expansion. For example, business balance
sheets are strong, even at smaller companies. Many firms have also built a
cushion into profit margins by reducing fixed labor costs like health care
benefits. Consumer financial positions are in excellent shape, allowing
leeway to survive a no-growth, low-inflation environment. Rallies in stock
and bond markets have boosted consumer net worth. Meanwhile, borrowing is
vigorous and we believe should remain so, further spurring consumer spend-
ing.
A second comforting factor is the unprecedented speed with which busi-
nesses have adjusted their production schedules to the new economic reali-
ties. By limiting the buildup of unwanted inventories, businesses have
lowered their operating rates considerably. Furthermore, business caution
is extending into the third quarter. While this low production may result
in sluggish overall growth during the summer, it should help keep a better
balance between supply and demand.
A BRIGHTER INFLATION OUTLOOK
Economic deceleration is exactly what the Fed wanted to cool rising infla-
tion expectations, and we believe it's working. The abrupt character of
the slowdown did shock some businesses who concluded they could not raise
prices and keep their customers. Auto incentives are proliferating, and
now steel makers have begun to cut prices to win market share. Even basic
materials producers are offering price cuts, as last year's speculative
inventory build-ups now seem counterproductive.
In general, lower operating costs are opening a gap between supply and de-
mand that is alleviating price increase pressure. And while the dollar's
decline could be expected to generate higher import prices that would add
to domestic price pressures, import prices are actually not rising any
faster than those of domestically produced finished goods. In other words,
a selective and value-conscious consumer has the upper hand with both do-
mestic and imported suppliers.
BOND MARKET GAINS CONTINUE
With inflation seemingly in check and the economy slowing down nicely,
bond market investors reaped benefits in the form of exceptional returns.
In fact, the second quarter of 1995 posted the market's largest quarterly
gain since 1989. The main benchmark index of corporate, government, and
mortgage-backed securities, the Lehman Brothers Aggregate Index, was up
over 6% for the quarter. Corporate bonds provided the best returns, fol-
lowed closely by Treasury securities. Mortgage-backed securities were up
but lagged the other two sectors largely based on speculation that low 30-
year mortgage rates may soon spur another round of homeowner refinancing.
By and large, the economy's unanticipated weakness drove the market's
rise. Fourth quarter 1994 Gross Domestic Product ("GDP") growth was 5%;
first quarter GDP growth was just 2.7%. Lots of data substantiated the de-
celeration, including slower home sales, lower durable goods orders, lower
industrial production numbers and in particular, weak employment statis-
tics. Economic data for the second quarter showed a further slowdown.
A FED EASE IS LIKELY
Against this backdrop, the Fed cautiously eased monetary policy in July.
Forward-looking inflation indicators like the Price Diffusion Index and
Supplier Delivery Index, both published by the national purchasing manag-
ers, portend smaller inflation increases. These indicators will be partic-
ularly important to Fed policy makers seeking to keep the economic slow-
down from turning recessionary.
The Fed will want to retain market confidence that it is not abandoning
its anti-inflation stance. For this reason, we anticipate any further eas-
ing of interest rates will be in small, quarter-point increments. This ap-
proach would also allow the Fed to assist the economy and still have the
time to assess the ongoing stream of new economic data to determine the
effect of its new monetary policy. And it would finely balance the Fed's
genuine uncertainty as to whether the pause in economic growth will be
short-lived.
SUPPLY/DEMAND AND QUALITY FACTORS
New supply of municipal bonds for the second quarter continued to lag be-
hind last year's levels for the same period. Total new issue supply has
amounted to $75 billion year-to- date compared to last year's total for
the same period of almost $95 billion. Despite the recent drop in interest
rates, we still do not anticipate a large increase in new issue volume in
the municipal bond market for the remainder of the year.
IMPACT OF TAX REFORM PROPOSALS
During the last three months, heightened attention to the possibility of
Federal tax reform hampered the performance of the tax-exempt bond market.
Consequently, municipal bonds significantly underperformed taxable securi-
ties, but still managed to produce positive total returns. At the begin-
ning of the second quarter, 10-year AAA-rated municipal bonds were yield-
ing approximately 73% of 10-year Treasury bonds. More recently, the rela-
tive yield level has been near 83%.
PORTFOLIO OVERVIEW
While the Federal Reserve was tightening credit last year and early this
year, the bond market experienced its worst performance in decades. We
managed each Fund in a cautious manner during that period, keeping maturi-
ties relatively short. For the period ended June 30, 1995*, the Class A,
Class B, Class C and Class R shares posted total returns of 6.48%*,
6.51%*, 6.51%* and 6.75%, respectively for the Premier Limited Term Cali-
fornia Municipal Fund, and the Class A, Class C and Class R shares posted
total returns of 6.60%*, 6.24%* and 6.87%, respectively for the Premier
Limited Term Massachusetts Municipal Fund and the Class A, Class C and
Class R shares posted total returns of 6.39%*, 6.39%* and 6.65%, respec-
tively for the Premier Limited Term New York Municipal Fund. This compares
with a one year total return of 6.80% for the Lipper Intermediate Munici-
pal Debt Funds Average.**
During the Spring and early Summer, when we saw that the economy was slow-
ing down, we ventured to extend maturities, but slowly so as not to be
caught by a sudden market reversal.
This cautious policy held back performance; however, we think that from a
long-range standpoint, given our objective of preserving capital and pro-
viding reasonable returns, that was well justified.
* Total return figures for Class A and Class R shares are for the one
year period ended June 30, 1995 and for Class B and Class C shares for
the period from inception (12/28/94) through June 30, 1995. Total re-
turn represents the change during the period in a hypothetical account
with dividends reinvested. Without taking into account the maximum
front-end sales load of 3.0% in the case of Class A shares and the ap-
plicable contingent deferred sales charges ("CDSC") in the case of
Class B and Class C shares. With the sales charge or CDSC, the total
return for the same period would have been 3.29%, 3.51% and 5.76%, for
the Class A, Class B and Class C shares, respectively for the Premier
Limited Term California Municipal Fund, 3.40% and 5.49% for the Class A
and Class C shares of the Premier Limited Term Massachusetts Municipal
Fund, respectively and 3.20% and 5.64% for the Class A and Class C
shares of the Premier Limited Term New York Municipal Fund, respec-
tively.
** Lipper Intermediate Municipal Debt Funds Average is the average cumula-
tive total reinvestment performance of funds which invest in municipal
debt issues with dollar-weighted average maturities of 5 to 10 years.
The portfolio structure of the Funds continue to emphasize premium coupon
issues and high credit quality securities. The average weighted maturity
of each Fund was extended slightly to seek to capture additional returns
consistent with a declining interest rate environment.
NO ORANGE COUNTY EXPOSURE
During the period, the Premier Limited Term California Municipal Fund had
no exposure to securities of Orange County. Investments were well distrib-
uted throughout the State.
NEW YORK PORTFOLIO RATINGS
As of June 30, 1995, almost 80% of the Premier Limited Term New York Mu-
nicipal Fund's portfolio was in AAA-rated bonds and less than 7% of the
portfolio was below the AA rating. We generally do not invest in New York
City general obligation bonds.
PERFORMANCE SUMMARY
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM MARCH 7, 1988 -- JUNE 30, 1995+
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS A)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term California Municipal Fund Class A shares on March 7,
1988 through June 30, 1995 as compared with the growth of a $10,000 in-
vestment in Lehman Brothers Municipal 10 Year Bond Index and the Lehman
Brothers Municipal 7 Year Bond Index. The plot points used to draw the
line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS A MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
02/28/88 -- $10,000 --
03/07/88 $ 9,700 -- --
03/88 $ 9,667 $ 9,898 --
06/88 $ 9,834 $10,032 --
09/88 $ 9,897 $10,278 --
12/88 $10,051 $10,360 --
03/89 $10,114 $10,455 --
06/89 $10,653 $10,997 --
09/89 $10,678 $11,038 --
12/89 $10,993 $11,467 $11,333
03/90 $11,055 $11,499 $11,383
06/90 $11,244 $11,779 $11,643
09/90 $11,322 $11,773 $11,722
12/90 $11,803 $12,307 $12,171
03/91 $12,082 $12,612 $12,461
06/91 $12,248 $12,866 $12,675
09/91 $12,569 $13,378 $13,157
12/91 $12,985 $13,797 $13,590
03/92 $13,031 $13,785 $13,579
06/92 $13,492 $14,322 $14,060
09/92 $13,780 $14,739 $14,446
12/92 $14,017 $15,028 $14,682
03/93 $14,501 $15,608 $15,153
06/93 $14,932 $16,123 $15,573
09/93 $15,401 $16,701 $16,024
12/93 $15,617 $16,944 $16,217
03/94 $15,034 $16,045 $15,606
06/94 $15,201 $16,281 $15,770
09/94 $15,326 $16,395 $15,921
12/94 $15,152 $16,135 $15,768
03/95 $15,896 $17,251 $16,596
06/95 $16,187 $17,709 $17,068
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- CLASS A SHARES
(FORMERLY INVESTOR SHARES)
<TABLE>
<CAPTION>
WITH SALES CHARGE WITHOUT SALES CHARGE
<S> <C> <C>
One Year Ended 6/30/95 3.29% 6.48%
Five Years Ended 6/30/95 6.91% 7.56%
Inception (3/7/88) through 6/30/95 6.81% 7.25%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class A shares (for-
merly Investor shares) at inception (March 7, 1988) assuming deduction
of the maximum 3.00% sales charge at the time of investment and rein-
vestment of dividends and capital gains at net asset value through
June 30, 1995.
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index which is comprised of
approximately 3,000 municipal bonds having characteristics similar to
the bonds in which the Fund invests, began in January 1990. The index
assumes a beginning value of $11,333 which is equal to the value of the
$10,000 investment in the Fund at the starting point of this index.
Index information is available at month-end only; therefore, the closest
month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income or
capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not guar-
antee future results. Investment return and principal value of an in-
vestment will fluctuate so that an investor's shares upon redemption may
be worth more or less than original cost.
PERFORMANCE SUMMARY (CONTINUED)
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM DECEMBER 28, 1994 -- JUNE 30,
1995+
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS B)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term California Municipal Fund Class B shares on December 28,
1994 through June 30, 1995 as compared with the growth of a $10,000 in-
vestment in Lehman Brothers Municipal 10 Year Bond Index and the Lehman
Brothers Municipal 7 Year Bond Index. The plot points used to draw the
line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS B MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
12/28/94 $10,000 -- --
12/94 $ 9,995 $10,000 $10,000
03/95 $10,473 $10,692 $10,526
06/95 $10,351 $10,975 $10,825
</TABLE>
AGGREGATE TOTAL RETURN -- CLASS B SHARES
<TABLE>
<CAPTION>
WITH CONTINGENT WITHOUT CONTINGENT
DEFERRED SALES CHARGE DEFERRED SALES CHARGE
<S> <C> <C>
Inception (12/28/94) through 6/30/95 3.51% 6.51%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class B shares at in-
ception (December 28, 1994) assuming reinvestment of dividends and cap-
ital gains at net asset value through June 30, 1995.
++ Value assumes deduction of applicable contingent deferred sales charge
(CDSC) (assuming redemption on June 30, 1995).
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index is comprised of approx-
imately 3,000 municipal bonds having characteristics similar to the
bonds in which the Fund invests.
Index information is available at month-end only; therefore, the clos-
est month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income
or capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not
guarantee future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares upon redemption
may be worth more or less than original cost.
PERFORMANCE SUMMARY (CONTINUED)
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM DECEMBER 28, 1994 -- JUNE 30,
1995+
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS C)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term California Municipal Fund Class C shares on December 28,
1994 through June 30, 1995 as compared with the growth of a $10,000 in-
vestment in Lehman Brothers Municipal 10 Year Bond Index and the Lehman
Brothers Municipal 7 Year Bond Index. The plot points used to draw the
line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS C MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
12/28/94 $10,000 -- --
12/94 $ 9,995 $10,000 $10,000
03/95 $10,473 $10,692 $10,526
06/95 $10,576 $10,975 $10,825
</TABLE>
AGGREGATE TOTAL RETURN -- CLASS C SHARES
<TABLE>
<CAPTION>
WITH CONTINGENT WITHOUT CONTINGENT
DEFERRED SALES CHARGE DEFERRED SALES CHARGE
<S> <C> <C>
Inception (12/28/94) through 6/30/95 5.76% 6.51%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class C shares at in-
ception (December 28, 1994) assuming reinvestment of dividends and
capital gains at net asset value through June 30, 1995.
++ Value assumes deduction of applicable CDSC (assuming redemption on June
30, 1995).
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index is comprised of approx-
imately 3,000 municipal bonds having characteristics similar to the
bonds in which the Fund invests.
Index information is available at month-end only; therefore, the clos-
est month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income
or capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not
guarantee future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares upon redemption
may be worth more or less than original cost.
PERFORMANCE SUMMARY (CONTINUED)
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM FEBRUARY 1, 1993 -- JUNE 30,
1995+
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS R)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term California Municipal Fund Class R shares on February 1,
1993 through June 30, 1995 as compared with the growth of a $10,000 in-
vestment in Lehman Brothers Municipal 10 Year Bond Index and the Lehman
Brothers Municipal 7 Year Bond Index. The plot points used to draw the
line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS R MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
1/31/93 -- $10,000 $10,000
2/1/93 $10,000 -- --
2/93 $10,342 $10,366 $10,307
3/93 $10,232 $10,215 $10,172
6/93 $10,537 $10,552 $10,454
9/93 $10,869 $10,930 $10,757
12/93 $11,023 $11,089 $10,886
3/94 $10,613 $10,501 $10,476
6/94 $10,738 $10,655 $10,586
9/94 $10,832 $10,729 $10,687
12/94 $10,717 $10,560 $10,585
3/95 $11,249 $11,290 $11,141
6/95 $11,462 $11,590 $11,458
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- CLASS R SHARES
(FORMERLY TRUST SHARES)
<TABLE>
<S> <C>
One Year Ended 6/30/95 6.75%
Inception (2/1/93) through 6/30/95 5.82%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class R shares (for-
merly Trust shares) at inception (February 1, 1993) assuming reinvest-
ment of dividends and capital gains at net asset value through June 30,
1995.
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index is comprised of approxi-
mately 3,000 municipal bonds having characteristics similar to the bonds
in which the Fund invests.
Index information is available at month-end only; therefore, the closest
month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income or
capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not guar-
antee future results. Investment return and principal value of an in-
vestment will fluctuate so that an investor's shares upon redemption may
be worth more or less than original cost.
PERFORMANCE SUMMARY (CONTINUED)
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM SEPTEMBER 24, 1985 -- JUNE 30,
1995+
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS A)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term Massachusetts Municipal Fund Class A shares on September
24, 1985 through June 30, 1995 as compared with the growth of a $10,000
investment in Lehman Brothers Municipal 10 Year Bond Index and the Lehman
Brothers Municipal 7 Year Bond Index. The plot points used to draw the
line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS A MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
08/31/85 -- -- --
09/24/85 $ 9,700 -- --
09/85 $ 9,712 $10,000 --
12/85 $10,383 $10,748 --
03/86 $11,349 $11,766 --
06/86 $11,033 $11,688 --
09/86 $11,695 $12,389 --
12/86 $12,085 $12,792 --
03/87 $12,324 $13,210 --
06/87 $11,725 $12,886 --
09/87 $11,513 $12,583 --
12/87 $11,978 $13,194 --
03/88 $12,465 $13,590 --
06/88 $12,706 $13,774 --
09/88 $13,060 $14,112 --
12/88 $13,259 $14,225 --
03/89 $13,374 $14,356 --
06/89 $14,032 $15,100 --
09/89 $14,052 $15,155 --
12/89 $14,427 $15,745 $14,873
03/90 $14,449 $15,788 $14,938
06/90 $14,753 $16,173 $15,279
09/90 $14,666 $16,165 $15,383
12/90 $15,282 $16,899 $15,973
03/91 $15,612 $17,316 $16,353
06/91 $15,952 $17,666 $16,635
09/91 $16,574 $18,369 $17,266
12/91 $17,175 $18,944 $17,836
03/92 $17,226 $18,927 $17,821
06/92 $17,900 $19,665 $18,452
09/92 $18,298 $20,237 $18,958
12/92 $18,650 $20,634 $19,269
03/93 $19,279 $21,431 $19,886
06/93 $19,738 $22,138 $20,437
09/93 $20,353 $22,931 $21,029
12/93 $20,609 $23,265 $21,283
03/94 $19,806 $22,031 $20,480
06/94 $20,011 $22,354 $20,695
09/94 $20,169 $22,511 $20,894
12/94 $20,019 $22,154 $20,693
03/95 $20,891 $23,687 $21,780
06/95 $21,332 $24,315 $22,400
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- CLASS A SHARES
(FORMERLY INVESTOR SHARES)
<TABLE>
<CAPTION>
WITH SALES CHARGE WITHOUT SALES CHARGE
<S> <C> <C>
One Year Ended 6/30/95 3.40% 6.60%
Five Years Ended 6/30/95 7.00% 7.65%
Inception (9/24/85) through 6/30/95 8.07% 8.40%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class A shares (for-
merly Investor shares) at inception (September 24, 1985) assuming deduc-
tion of the maximum 3.00% sales charge at the time of investment and re-
investment of dividends and capital gains at net asset value through
June 30, 1995.
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index which is comprised of
approximately 3,000 municipal bonds having characteristics similar to
the bonds in which the Fund invests, began in January 1990. The index
assumes a beginning value of $14,873 which is equal to the value of the
$10,000 investment in the Fund at the starting point of this index.
Index information is available at month-end only; therefore, the closest
month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income or
capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not guar-
antee future results. Investment return and principal value of an in-
vestment will fluctuate so that an investor's shares upon redemption may
be worth more or less than original cost.
PERFORMANCE SUMMARY (CONTINUED)
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM DECEMBER 28, 1994 -- JUNE 30,
1995+
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS C)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term Massachusetts Municipal Fund Class C shares on December
28, 1994 through June 30, 1995 as compared with the growth of a $10,000
investment in Lehman Brothers Municipal 10 Year Bond Index and the Lehman
Brothers Municipal 7 Year Bond Index. The plot points used to draw the
line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS C MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
12/28/94 $10,000 -- --
12/94 $ 9,995 $10,000 $10,000
03/95 $10,417 $10,692 $10,526
06/95 $10,549 $10,975 $10,825
</TABLE>
AGGREGATE TOTAL RETURN -- CLASS C SHARES
<TABLE>
<CAPTION>
WITH CONTINGENT WITHOUT CONTINGENT
DEFERRED SALES CHARGE DEFERRED SALES CHARGE
<S> <C> <C>
Inception (12/28/94) through 6/30/95 5.49% 6.24%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class C shares at in-
ception (December 28, 1994) assuming reinvestment of dividends and
capital gains at net asset value through June 30, 1995.
++ Value assumes deduction of applicable CDSC (assuming redemption on June
30, 1995).
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index is comprised of approx-
imately 3,000 municipal bonds having characteristics similar to the
bonds in which the Fund invests.
Index information is available at month-end only; therefore, the clos-
est month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income
or capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not
guarantee future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares upon redemption
may be worth more or less than original cost.
PERFORMANCE SUMMARY (CONTINUED)
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM FEBRUARY 1, 1993 -- JUNE 30,
1995+
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS R)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term Massachusetts Municipal Fund Class R shares on February
1, 1993 through June 30, 1995 as compared with the growth of a $10,000 in-
vestment in Lehman Brothers Municipal 10 Year Bond Index and the Lehman
Brothers Municipal 7 Year Bond Index. The plot points used to draw the
line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS R MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
1/31/93 -- $10,000 $10,000
2/1/93 $10,000 -- --
2/93 $10,343 $10,366 $10,307
3/93 $10,204 $10,215 $10,172
6/93 $10,453 $10,552 $10,454
9/93 $10,782 $10,930 $10,757
12/93 $10,921 $11,089 $10,886
3/94 $10,498 $10,501 $10,476
6/94 $10,613 $10,655 $10,586
9/94 $10,704 $10,729 $10,687
12/94 $10,631 $10,560 $10,585
3/95 $11,101 $11,290 $11,141
6/95 $11,342 $11,590 $11,458
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- CLASS R SHARES
(FORMERLY TRUST SHARES)
<TABLE>
<S> <C>
One Year Ended 6/30/95 6.87%
Inception (2/1/93) through 6/30/95 5.36%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class R shares (for-
merly Trust shares) at inception (February 1, 1993) assuming reinvest-
ment of dividends and capital gains at net asset value through June 30,
1995.
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index is comprised of approxi-
mately 3,000 municipal bonds having characteristics similar to the bonds
in which the Fund invests.
Index information is available at month-end only; therefore, the closest
month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income or
capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not guar-
antee future results. Investment return and principal value of an in-
vestment will fluctuate so that an investor's shares upon redemption may
be worth more or less than original cost.
PERFORMANCE SUMMARY (CONTINUED)
PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM MARCH 7, 1988 -- JUNE 30, 1995+
PREMIER LIMITED TERM NEW YORK MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS A)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term New York Municipal Fund Class A shares on March 7, 1988
through June 30, 1995 as compared with the growth of a $10,000 investment
in Lehman Brothers Municipal 10 Year Bond Index and the Lehman Brothers
Municipal 7 Year Bond Index. The plot points used to draw the line graph
were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS A MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
02/28/88 -- $10,000 --
03/07/88 $ 9,700 -- --
03/88 $ 9,591 $ 9,898 --
06/88 $ 9,717 $10,032 --
09/88 $ 9,834 $10,278 --
12/88 $ 9,984 $10,360 --
03/89 $10,037 $10,455 --
06/89 $10,404 $10,997 --
09/89 $10,453 $11,038 --
12/89 $10,731 $11,467 $11,063
03/90 $10,820 $11,499 $11,111
06/90 $11,009 $11,779 $11,365
09/90 $11,097 $11,773 $11,443
12/90 $11,461 $12,307 $11,881
03/91 $11,733 $12,612 $12,164
06/91 $11,922 $12,866 $12,373
09/91 $12,263 $13,378 $12,843
12/91 $12,627 $13,797 $13,267
03/92 $12,663 $13,785 $13,256
06/92 $13,070 $14,322 $13,725
09/92 $13,359 $14,739 $14,102
12/92 $13,639 $15,028 $14,333
03/93 $14,021 $15,608 $14,792
06/93 $14,409 $16,123 $15,202
09/93 $14,766 $16,701 $15,642
12/93 $14,934 $16,944 $15,831
03/94 $14,428 $16,045 $15,234
06/94 $14,591 $16,281 $15,394
09/94 $14,672 $16,395 $15,541
12/94 $14,549 $16,135 $15,392
03/95 $15,169 $17,251 $16,201
06/95 $15,524 $17,709 $16,662
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- CLASS A SHARES
(FORMERLY INVESTOR SHARES)
<TABLE>
<CAPTION>
WITH SALES CHARGE WITHOUT SALES CHARGE
<S> <C> <C>
One Year Ended 6/30/95 3.20% 6.39%
Five Years Ended 6/30/95 6.46% 7.11%
Inception (3/7/88) through 6/30/95 6.20% 6.64%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class A shares (for-
merly Investor shares) at inception (March 7, 1988) assuming deduction
of the maximum 3.00% sales charge at the time of investment and rein-
vestment of dividends and capital gains at net asset value through June
30, 1995.
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index which is comprised of
approximately 3,000 municipal bonds having characteristics similar to
the bonds in which the Fund invests, began in January 1990. The index
assumes a beginning value of $11,063 which is equal to the value of the
$10,000 investment in the Fund at the starting point of this index.
Index information available at month-end only; therefore, the closest
month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income or
capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not guar-
antee future results. Investment return and principal value of an in-
vestment will fluctuate so that an investor's shares upon redemption may
be worth more or less than original cost.
PERFORMANCE SUMMARY (CONTINUED)
PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM DECEMBER 28, 1994 -- JUNE 30,
1995+
PREMIER LIMITED TERM NEW YORK MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS C)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term New York Municipal Fund Class C shares on December 28,
1994 through June 30, 1995 as compared with the growth of a $10,000 in-
vestment in Lehman Brothers Municipal 10 Year Bond Index and the Lehman
Brothers Municipal 7 Year Bond Index. The plot points used to draw the
line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS C MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
12/28/94 $10,000 -- --
12/94 $ 9,995 $10,000 $10,000
03/95 $10,409 $10,692 $10,526
06/95 $10,564 $10,975 $10,825
</TABLE>
AGGREGATE TOTAL RETURN -- CLASS C SHARES
<TABLE>
<CAPTION>
WITH CONTINGENT WITHOUT CONTINGENT
DEFERRED SALES CHARGE DEFERRED SALES CHARGE
<S> <C> <C>
Inception (12/28/94) through 6/30/95 5.64% 6.39%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class C shares at in-
ception (December 28, 1994) assuming reinvestment of dividends and
capital gains at net asset value through June 30, 1995.
++ Value assumes deduction of applicable CDSC (assuming redemption on June
30, 1995).
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index is comprised of approx-
imately 3,000 municipal bonds having characteristics similar to the
bonds in which the Fund invests.
Index information is available at month-end only; therefore, the clos-
est month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income
or capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not
guarantee future results. Investment return and principal value of an
investment will fluctuate so that an investor's shares upon redemption
may be worth more or less than original cost.
PERFORMANCE SUMMARY (CONTINUED)
PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND (UNAUDITED)
CHANGE IN VALUE OF $10,000 INVESTED FROM FEBRUARY 1, 1993 -- JUNE 30,
1995+
PREMIER LIMITED TERM NEW YORK MUNICIPAL
DESCRIPTION OF MOUNTAIN CHART IN COVERS (CLASS R)
A line graph depicting the total growth (including reinvestment of divi-
dends and capital gains) of a hypothetical investment of $10,000 in Pre-
mier Limited Term New York Municipal Fund Class R shares on February 1,
1993 through June 30, 1995 as compared with the growth of a $10,000 in-
vestment in Lehman Brothers Municipal 10 Year Bond Index and the Lehman
Brothers Municipal 7 Year Bond Index. The plot points used to draw the
line graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000 GROWTH OF $10,000
INVESTMENT IN THE INVESTMENT IN THE
GROWTH OF $10,000 LEHMAN BROTHERS LEHMAN BROTHERS
MONTH INVESTED IN CLASS R MUNICIPAL 10 YEAR MUNICIPAL 7 YEAR
ENDED SHARES OF THE FUND BOND INDEX BOND INDEX
<S> <C> <C> <C>
1/31/93 -- $10,000 $10,000
2/1/93 $10,000 -- --
2/93 $10,291 $10,366 $10,307
3/93 $10,182 $10,215 $10,172
6/93 $10,469 $10,552 $10,454
9/93 $10,734 $10,930 $10,757
12/93 $10,862 $11,089 $10,886
3/94 $10,497 $10,501 $10,476
6/94 $10,623 $10,655 $10,586
9/94 $10,688 $10,729 $10,687
12/94 $10,605 $10,560 $10,585
3/95 $11,064 $11,290 $11,141
6/95 $11,329 $11,590 $11,458
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- CLASS R SHARES
(FORMERLY TRUST SHARES)
<TABLE>
<S> <C>
One Year Ended 6/30/95 6.65%
Inception (2/1/93) through 6/30/95 5.31%
</TABLE>
+ Hypothetical illustration of $10,000 invested in Class R shares (for-
merly Trust shares) at inception (February 1, 1993) assuming reinvest-
ment of dividends and capital gains at net asset value through June 30,
1995.
The Lehman Brothers Municipal 10 Year Bond Index which began in January
1980 is comprised of approximately 3,000 municipal bonds.
The Lehman Brothers Municipal 7 Year Bond Index is comprised of approxi-
mately 3,000 municipal bonds having characteristics similar to the bonds
in which the Fund invests.
Index information is available at month-end only; therefore, the closest
month-end to inception date of the class has been used.
This period was one in which municipal bond prices fluctuated and the
results should not be considered as representative of dividend income or
capital gain or loss which may be realized from an investment in the
Fund today. No adjustment has been made for a shareholder's tax liabil-
ity on dividends or capital gains.
Further information relating to Fund performance, including fee waivers
and/or expense reimbursements, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
NOTE: All figures cited here represent past performance and do not guar-
antee future results. Investment return and principal value of an in-
vestment will fluctuate so that an investor's shares upon redemption may
be worth more or less than original cost.
PORTFOLIO OF INVESTMENTS
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND JUNE 30, 1995
<TABLE>
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 100.3%
CALIFORNIA -- 86.5%
$ 150,000 Anaheim, California, Electric Revenue,
6.800% due 10/01/99 $ 153,750
150,000 California Health Facilities Authority,
(Unihealth America), Series A,
7.100% due 10/01/99, Prerefunded 10/01/98 165,375
100,000 California Pollution Control Financing Author-
ity, Pollution Control Revenue, (Union Oil
Company), Project A,
7.375% due 05/15/98, Prerefunded 12/01/95 101,625
125,000 California State, Department of Water Re-
sources, Series A,
7.200% due 12/01/01 128,594
California State Public Works, Board Lease Rev-
enue:
200,000 (Corcoran Prison),
7.000% due 09/01/98 207,750
150,000 High Technology, (Berkeley Campus),
7.200% due 03/01/01 163,875
375,000 Franklin-McKinley, California, Unified Free
School District,
5.200% due 07/01/04 372,656
100,000 Long Beach, California, Redevelopment Agency,
Project A,
7.125% due 11/01/99, Prerefunded 11/01/98 110,500
125,000 Los Angeles, California, Water and Power De-
partment, Electric Revenue,
7.000% due 05/01/00 134,688
Los Angeles, California, Wastewater Systems
Revenue:
150,000 7.100% due 11/01/98 161,250
1,000,000 6.800% due 08/01/19, Prerefunded 08/01/98 1,091,250
400,000 Series B,
6.600% due 06/01/98 420,500
250,000 Series D,
6.000% due 12/01/98 262,812
200,000 Los Angeles County, California, Certificates of
Participation,
6.900% due 03/01/01 211,250
500,000 Los Angeles County, California, General Obliga-
tion Bonds, Series B,
8.000% due 07/01/00 570,625
150,000 Los Angeles County, California, Health Facili-
ties Authority, (Oliveview Medical Center),
6.800% due 03/01/98 159,750
100,000 Los Angeles County, California, (Multifamily
Housing Project), Series A
7.625% due 12/01/29 104,625
150,000 Los Angeles County, California, Transportation
Sales Tax Revenue, Series A,
6.800% due 07/01/99 161,063
835,000 Metropolitan Water District, California,
6.375% due 07/01/02 898,669
Northern California Power Agency:
1,000,000 (Geothermal Project 3-A),
9.500% due 07/01/00, Prerefunded 07/01/95 1,020,000
360,000 (Transmission Project 1-A),
6.250% due 08/15/00 380,250
520,000 Riverside County, California, Transporation Au-
thority, Series A,
6.500% due 06/01/01 567,450
Sacramento, California, Municipal Utilities
District, Electric Revenue Bonds:
500,000 6.300% due 09/01/01 537,500
100,000 Series Z,
5.850% due 07/01/00 105,000
500,000 Sacramento County, California, Sanitation Dis-
trict,
4.800% due 12/01/04 482,500
440,000 San Bernardino County, California Transporation
Authority, Series A,
6.000% due 03/01/02 464,200
600,000 San Diego, California, Redevelopment Agency,
(Center Project),
5.500% due 09/01/01 619,500
750,000 San Diego, California, Regional Transportation
Authority,
6.000% due 4/01/04 790,312
300,000 San Diego, California, Water Authority, Series
A,
6.000% due 05/01/01 313,875
500,000 San Francisco, California, Bay Area Rapid Tran-
sit, Sales Tax Revenue,
6.700% due 07/01/00 538,125
San Francisco, California, City and County, Se-
ries A:
750,000 6.000% due 11/01/03 800,625
500,000 6.375% due 11/01/06 536,250
100,000 San Mateo County, California, Sales Tax Reve-
nue, Series A,
6.200% due 06/01/99 107,125
Santa Rosa, California, Water Revenue,
Series A:
480,000 6.600% due 09/01/00, Prerefunded 09/01/99 527,400
350,000 6.200% due 09/01/03 376,250
150,000 Santa Rosa, California, Wastewater Services,
7.400% due 07/02/97 159,562
420,000 Southern California, Public Power Authority,
(South Transmission Project),
6.300% due 10/01/02 454,125
620,000 West and Central Basin Financing Authority,
6.000% due 08/01/05 645,575
15,006,231
PUERTO RICO -- 13.8%
750,000 Commonwealth of Puerto Rico, General
Obligation Bonds,
6.250% due 07/1/11 798,750
750,000 Puerto Rico, Public Buildings Revenue, Series
A,
6.250%, due 07/1/10 799,688
750,000 University of Puerto Rico, University Revenue
Bonds, Series N,
6.250% due 06/01/08 799,688
2,398,126
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $16,753,726) 17,404,357
SHORT-TERM INVESTMENTS -- 2.9%
CALIFORNIA -- 2.9%
100,000 Concord California, Multifamilly Mortgage,
3.950% due 7/15/18 ++ 100,000
200,000 Los Angeles, California, Regional Airports,
Series E,
3.950% due 12/01/24 ++ 200,000
200,000 San Francisco, California, Housing,
Series 737-D,
5.250% due 12/01/07 ++ 200,000
TOTAL SHORT-TERM INVESTMENTS
(Cost $500,000) 500,000
TOTAL INVESTMENTS
(Cost $17,253,726*) 103.2% 17,904,357
OTHER ASSETS AND LIABILITIES (NET) (3.2) (551,488)
NET ASSETS 100.0% $17,352,869
</TABLE>
* Aggregate cost for Federal tax purposes.
++ Variable rate demand bonds and notes that are payable upon not more
than seven business days' notice. The interest rate shown represents
the rate currently in effect.
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND JUNE 30, 1995
<TABLE>
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 99.7%
MASSACHUSETTS -- 84.0%
$ 200,000 Amherst, Massachusetts, General Obligation
Bonds,
6.000% due 01/15/03 $ 211,250
Boston, Massachusetts, Water and Sewer Commis-
sion, Revenue Bonds:
100,000 9.250% due 01/01/11 135,625
Series A:
160,000 7.875% due 11/01/13, Prerefunded 11/01/96 170,600
290,000 Principal Only,
7.875% due 11/01/13 307,762
675,000 Cambridge, Massachusetts, General Obligation
Bonds,
6.600% due 06/15/00 732,375
Cohasset, Massachusetts, General Obligation
Bonds:
160,000 6.700% due 11/01/98 170,600
150,000 6.900% due 11/01/00 163,875
500,000 Dedham-Westwood, Massachusets, Water and Sewer
Commission, Revenue Bonds, Series A,
6.400% due 12/01/05, Prerefunded 12/01/96 525,000
105,000 Easton, Massachusetts, General Obligation
Bonds,
6.000% due 09/15/06 109,593
550,000 Massachusetts Bay Transporation Authority,
Revenue Bonds,
5.900% due 03/01/04 579,562
Massachusetts Consolidated Loan:
Series A:
115,000 7.375% due 12/01/08, Prerefunded 12/01/98 127,938
400,000 7.625% due 06/01/08, Prerefunded 06/01/01 466,000
1,000,000 7.875% due 06/01/97 1,066,250
500,000 Series B,
7.000% due 07/01/06 560,625
135,000 Series C,
7.375% due 12/01/08, Prerefunded 12/01/98 150,187
Massachusetts Health and Educational Facilities
Authority:
750,000 8.150%, due 7/1/14, Prerefunded 07/01/99 860,625
1,490,000 Series A,
7.625%, due 7/1/18, Prerefunded 07/01/98 1,653,900
500,000 (Bay State Medical Center), Revenue Bonds, Se-
ries D,
4.750% due 07/01/03 486,250
500,000 (Beth Israel Hospital), Revenue Bonds,
7.800% due 07/01/14 539,375
100,000 (Beverly Hospital), Revenue Bonds,
9.500% due 07/01/04, Prerefunded 07/01/95 102,015
150,000 (Brandeis University), Revenue Bonds, Series
F,
(FGIC Insured),
9.000% due 10/01/15, Prerefunded 10/01/95 153,938
400,000 (Dana Farber Cancer Institute), Series F,
5.550% due 12/01/03 412,500
1,000,000 (Harvard University), Series M,
6.200% due 12/01/01 1,075,000
35,000 (Malden Hospital), Revenue Bonds, (FHA In-
sured),
9.500% due 08/01/08 35,131
500,000 (Massachusetts General Hospital), Series G,
4.750% due 07/01/03 486,875
(Massachusetts Institute of Technology), Se-
ries H:
575,000 4.800% due 07/01/05 551,281
460,000 4.900% due 07/01/06 438,150
1,000,000 (Northeastern University), Series C,
6.800% due 10/01/99 1,078,750
(South Shore Hospital), Revenue Bonds, Series
C:
350,000 7.500% due 07/01/10, Prerefunded 07/01/00 400,313
500,000 7.500% due 07/01/20, Prerefunded 07/01/00 571,875
(Wentworth Institute of Technology), Series A:
225,000 7.150% due 04/01/00 249,188
220,000 7.400% due 04/01/10, Prerefunded 04/01/00 249,425
500,000 (Williams College), Series D,
4.600% due 07/01/02 482,500
1,000,000 (Winchester Hospital), Series D,
3.750% due 07/01/95 1,000,000
170,000 (Youville Hospital), Revenue Bonds, (FHA In-
sured)+++,
9.100% due 08/01/15, Prerefunded 02/01/96 178,075
700,000 Series P,
6.500% due 11/01/04 767,375
Massachusetts Housing Finance Agency, Revenue
Bonds, Single Family:
155,000 7.900% due 12/01/01 158,488
30,000 9.500% due 12/01/16 31,050
Massachusetts Industrial Finance Agency, Reve-
nue Bonds:
(Brooks School):
260,000 5.700% due 07/01/06 259,675
275,000 5.750% due 07/01/07 273,281
290,000 5.800% due 07/01/08 286,738
305,000 5.850% due 07/01/09 303,094
1,100,000 First Mortgage,
7.800% due 10/01/09, Prerefunded 10/01/99 1,266,375
300,000 (Milton Academy),
4.900% due 09/01/04 292,500
(Museum of Science):
435,000 4.700% due 11/01/04 413,250
700,000 4.800% due 11/01/05 662,375
500,000 Massachusetts Municipal Wholesale Electric
Power Authority,
6.300% due 07/01/00 526,250
1,000,000 Massachusetts Port Authority, Revenue Bonds,
Series A,
7.000% due 07/01/00 1,090,000
500,000 Massachusetts State, Refunding Bonds, Series B,
6.500% due 8/1/08 546,875
880,000 Massachusetts State, Special Obligation Revenue
Bonds, Series A,
5.800% due 06/01/00 914,100
Massachusetts Water Pollution Authority,
(Abatement Program):
625,000 6.125% due 06/15/02 661,719
600,000 4.850% due 08/01/03 589,500
Massachusetts Water Resource Authority:
725,000 6.900% due 04/01/97 757,625
500,000 5.875% due 11/01/04 520,625
100,000 Plymouth-Carver, Massachusetts, Regional School
District, Revenue Bonds,
8.750% due 10/01/05, Prerefunded 10/01/95 104,125
1,000,000 Rockport, Massachusetts, General Obligation
Bonds,
6.900% due 12/15/07 1,090,000
1,250,000 South Eastern Massachusetts, Revenue Bonds,
Series A,
5.750% due 05/01/16 1,209,364
600,000 Springfield, Massachusetts, School Project
Loan,
Series B,
6.100% due 09/01/02 630,000
Whitman, Massachusetts, General Obligation
Bonds,
180,000 7.750% due 06/01/07, Prerefunded 06/01/98 200,700
250,000 7.750% due 06/01/08, Prerefunded 06/01/98 278,750
100,000 Yarmouth, Massachusetts, General Obligation
Bonds,
8.600% due 10/01/00 117,125
30,433,367
PUERTO RICO -- 13.5%
Commonwealth of Puerto Rico, General
Obligation Bonds:
400,000 6.700% due 07/01/98 427,000
550,000 6.500% due 7/01/03 606,375
1,050,000 6.250% due 7/01/11 1,118,250
1,000,000 Puerto Rico, Building Authority, Series A,
6.750% due 07/01/05 1,127,500
150,000 Puerto Rico, Electric Power Authority,
Revenue Bonds,
9.125% due 07/01/15, Prerefunded 07/01/95 154,521
655,000 Puerto Rico, Public Education and Health Facil-
ities Authority, Series M,
5.200% due 07/01/02 651,725
750,000 University of Puerto Rico, University Revenue
Bonds, Series N,
6.250% due 06/01/05 808,125
4,893,496
GUAM -- 2.2%
750,000 Guam, Government, Limited Obligation Highway
Bonds, Series A,
6.000% due 05/01/03 797,812
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $35,272,909) 36,124,675
SHORT-TERM INVESTMENTS -- 4.2%
MASSACHUSETTS -- 4.2%
300,000 Holyoke, Massachusetts, Pollution Control Reve-
nue, Refunding Bonds, (Water Power Project),
3.950% due 11/01/13 + 300,000
Massachusetts Health and Educational Facilities
Authority:
100,000 (Harvard University), Series I,
3.550% due 02/01/16 ++ 100,000
100,000 (Massachuestts Institute of Technology), Se-
ries G,
3.400% due 07/01/21 ++ 100,000
100,000 (Wellesley College), Series B,
3.850% due 07/01/22 ++ 100,000
100,000 Massachusetts State, Industrial Finance Agency,
4.100% due 3/15/04 + 100,000
800,000 Massachusetts State, Updates, Series C,
4.200% due 12/1/97 + 800,000
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,500,000) 1,500,000
TOTAL INVESTMENTS
(Cost $36,772,909*) 103.9% 37,624,675
OTHER ASSETS AND LIABILITIES (NET) (3.9) (1,405,959)
NET ASSETS 100.0% $36,218,716
</TABLE>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand bonds and notes that are payable upon not more
than one business day's notice. The interest rate shown represents the
rate currently in effect.
++ Variable rate demand bonds and notes that are payable upon not more
than seven business days' notice. The interest rate shown represents
the rate currently in effect.
+++ FHA -- Federal Housing Administration.
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS
PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND JUNE 30, 1995
<TABLE>
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 95.9%
NEW YORK -- 82.1%
$ 125,000 Albany County, New York, General Obligation
Bonds,
7.000% due 10/01/00, Prerefunded 10/01/99 $ 140,469
150,000 Amherst, New York, General Obligation Bonds,
6.200% due 04/01/02 161,438
Erie County, New York, Water Authority,
Revenue Bonds:
200,000 Series A,
7.000% due 12/01/00, Escrowed 223,750
250,000 Series B,
6.650% due 12/01/99, Escrowed 272,187
150,000 Hempstead Town, New York, General Obligation
Bonds, Series B,
6.300% due 01/01/02 161,625
100,000 Metropolitan Transportation Facilities, New
York, Series K,
7.000% due 07/01/98 107,000
100,000 Municipal Assistance Corporation, New York,
Series 68,
7.100% due 07/01/00 110,250
100,000 Nassau County, New York, Bond Anticipation
Notes, Series G,
7.000% due 07/01/02, Prerefunded 07/01/00 111,875
New York State, Dormitory Authority Revenue:
250,000 7.1250% due 05/15/17, Prerefunded 05/15/99 278,125
250,000 (Columbia University),
4.500% due 07/01/05 233,125
100,000 (Cornell University), Series A,
6.600% due 07/01/99 107,375
155,000 New York State, Housing Finance Agency,
(City University), Series A,
7.150% due 11/01/97 165,269
New York State, Medical Care Facilities Finance
Authority:
210,000 7.750% due 08/15/10, Prerefunded 02/15/00 241,500
100,000 Improvement Revenue, (Mental Health),
6.600% due 08/15/96 101,875
45,000 New York State, Mortgage Agency, Revenue Bonds,
Series AA,
7.500% due 10/01/98 47,138
100,000 New York State, Power Authority, Revenue Bonds,
4.800% due 01/01/05 96,000
200,000 New York State, Refunding Bonds, Series B,
6.250% due 08/15/04 214,750
180,000 Oyster Bay, New York, General Obligation Bonds,
7.125% due 04/15/00, Escrowed 200,025
125,000 Port Washington, New York, Unified Free
School District,
6.000% due 08/01/01 131,406
Suffolk County, New York, General Obligation
Bonds, Series B:
125,000 6.875% due 07/15/99, Prerefunded 07/15/97 134,062
150,000 7.000% due 04/01/02, Prerefunded 04/01/00 168,188
Triborough, New York, Bridge and Tunnel Author-
ity, Revenue Bonds:
200,000 7.400% due 01/01/03, Prerefunded 01/01/99 222,500
250,000 5.000% due 01/01/07 238,437
150,000 Series P,
7.000% due 01/01/11, Prerefunded 01/01/99 165,000
250,000 Westchester County, New York, General
Obligation Bonds,
6.625% due 11/01/04 281,250
4,314,619
PUERTO RICO -- 13.8%
180,000 Commonwealth of Puerto Rico, Electric Power Au-
thority, Series N,
6.400% due 07/01/99 191,925
200,000 Commonwealth of Puerto Rico, General
Obligation Bonds,
6.250% due 07/01/11 213,000
100,000 Commonwealth of Puerto Rico, Public
Improvement Bonds,
6.600% due 07/01/97 104,625
200,000 University of Puerto Rico, University Revenue
Bonds, Series N,
6.250% due 6/01/06 215,000
724,550
TOTAL MUNICIPAL BONDS AND NOTES
(Cost $4,806,898) 5,039,169
SHORT-TERM INVESTMENTS -- 1.9% (Cost $100,000)
NEW YORK -- 1.9%
100,000 New York City, New York, Municipal Water Fi-
nance Agency, Series G,
6.150% due 06/15/24+ 100,000
TOTAL INVESTMENTS
(Cost $4,906,898*) 97.8% 5,139,169
OTHER ASSETS AND LIABILITIES (NET) 2.2 113,037
NET ASSETS 100.0% $5,252,206
</TABLE>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand bonds and notes that are payable upon not more than
one business day's notice. The interest rate shown represents the rate
currently in effect.
See Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
JUNE 30, 1995
<TABLE>
<CAPTION>
PREMIER PREMIER PREMIER
LIMITED TERM LIMITED TERM LIMITED TERM
CALIFORNIA MASSACHUSETTS NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
FUND FUND FUND
<S> <C> <C> <C>
ASSETS
Investments, at value ( Cost $17,253,726,
$36,772,909, and
$4,906,898, respectively) (Note 1)
See accompanying schedules $ 17,904,357 $37,624,675 $ 5,139,169
Cash 5,101 35,758 8,886
Interest receivable 318,974 624,698 99,047
Receivable for Fund shares sold -- 10,060 32,000
TOTAL ASSETS 18,228,432 38,295,191 5,279,102
LIABILITIES
Payable for investment securities purchased 813,634 1,969,590 --
Dividends payable 27,511 58,528 13,126
Investment management fee payable (Note 2) 21,260 43,408 6,706
Payable for Fund shares redeemed 10,753 316 6,335
Accrued Trustees' fees and expenses (Note 2) 592 1,216 186
Distribution fee payable (Note 3) 1,806 3,413 529
Service fee payable (Note 3) 7 4 14
TOTAL LIABILITIES 875,563 2,076,475 26,896
NET ASSETS $ 17,352,869 $36,218,716 $ 5,252,206
NET ASSETS consist of:
Distributions in excess of net investment in-
come $ (150) $ -- $ --
Accumulated net realized gain/(loss) on securi-
ties and futures contracts (14,211) 26,767 (5,985)
Unrealized appreciation of investments 650,631 851,766 232,271
Paid-in capital 16,716,599 35,340,183 5,025,920
TOTAL NET ASSETS $ 17,352,869 $36,218,716 $5,252,206
</TABLE>
See Notes to Financial Statements.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
JUNE 30, 1995
<TABLE>
<CAPTION>
PREMIER PREMIER PREMIER
LIMITED TERM LIMITED TERM LIMITED TERM
CALIFORNIA MASSACHUSETTS NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
FUND FUND FUND
<S> <C> <C> <C>
NET ASSETS:
Class A Shares $8,505,653 $ 16,500,502 $ 2,340,315
Class B Shares $ 8,912 $ 15.83 $ 15.86
Class C Shares $ 25,108 $ 18,262 $ 67,772
Class R Shares $ 8,813,196 $19,699,936 $2,844,103
SHARES OUTSTANDING:
Class A Shares 664,261 1,385,121 184,183
Class B Shares 696 1.329 1.248
Class C Shares 1,961 1,533 5,334
Class R Shares 688,279 1,653,684 223,833
NET ASSET VALUE:
Class A Shares
Net asset value and redemption price per share
of beneficial interest outstanding $ 12.80 $ 11.91 $ 12.71
Maximum offering price per share (based on
sales charge of 3%
of the offering price on
June 30, 1995) $ 13.20 $ 12.28 $ 13.10
Class B Shares
Net asset value and offering price per share of
beneficial interest outstanding+ $ 12.80 $ 11.91 $ 12.71
Class C Shares
Net asset value and offering price per share of
beneficial interest outstanding+ $ 12.80 $ 11.91 $ 12.71
Class R Shares
Net asset value, offering and redemption price
per share of beneficial interest outstanding $ 12.80 $ 11.91 $ 12.71
</TABLE>
+ Redemption price per share is equal to net asset value less any applica-
ble contingent deferred sales charge.
See Notes to Financial Statements.
STATEMENTS OF OPERATIONS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
FOR THE YEAR ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
PREMIER PREMIER PREMIER
LIMITED TERM LIMITED TERM LIMITED TERM
CALIFORNIA MASSACHUSETTS NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
FUND FUND FUND
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 1,075,238 $ 1,889,786 $ 308,757
EXPENSES
Investment management fee (Note 2) 96,807 172,146 27,290
Distribution fee (Note 3) 25,104 46,138 6,710
Service fee (Note 3) 14 10 36
Trustees' fees and expenses (Note 2) 1,540 2,827 326
Total expenses 123,465 221,121 34,362
NET INVESTMENT INCOME 951,773 1,668,665 274,395
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON IN-
VESTMENTS (Notes 1 and 4):
Net realized gain/(loss) on:
Securities transactions (28,294) (8,535) (2,168)
Futures contracts 14,083 37,267 7,278
Net realized gain/(loss) on investments sold
during the year (14,211) 28,732 5,110
Net unrealized appreciation of investments dur-
ing the year 241,097 610,550 74,362
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 226,886 639,282 79,472
NET INCREASE IN NET ASSETS RESULTING FROM OPER-
ATIONS $ 1,178,659 $2,307,947 $353,867
</TABLE>
See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
FOR THE YEAR ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
PREMIER PREMIER PREMIER
LIMITED TERM LIMITED TERM LIMITED TERM
CALIFORNIA MASSACHUSETTS NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
FUND FUND FUND
<S> <C> <C> <C>
Net investment income $ 951,773 $ 1,668,665 $ 274,395
Net realized gain/(loss) on securities sold and
futures contracts during the year (14,211) 28,732 5,110
Net unrealized appreciation of investments dur-
ing the year 241,097 610,550 74,362
Net increase in net assets resulting from oper-
ations 1,178,659 2,307,947 353,867
Distributions to shareholders from net invest-
ment income:
Class A shares (474,831) (856,242) (128,592)
Class B shares (107) -- --
Class C shares (132) (149) (571)
Class R shares (476,652) (812,274) (145,224)
Distributions to shareholders from net realized
capital gains:
Class A shares (7,864) (54,707) (7,144)
Class R shares (7,048) (49,756) (6,625)
Distributions to shareholders in excess of net
realized capital gains:
Class A shares -- -- (3,114)
Class R shares -- -- (2,887)
Net increase/(decrease) in net assets from Fund
share transactions (Note 5):
Class A shares (1,766,656) (4,968,658) (602,555)
Class B shares 8,863 15 15
Class C shares 25,153 18,166 67,293
Class R shares (3,504,539) 3,677,498 417,403
Net decrease in net assets (5,025,154) (738,160) (58,134)
NET ASSETS:
Beginning of year 22,378,023 36,956,876 5,310,340
End of year (including distributions in excess
of net investment income of $150 for the Pre-
mier Limited Term California Municipal Fund.) $17,352,869 $36,218,716 $5,252,206
</TABLE>
See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
FOR THE YEAR OR PERIOD ENDED JUNE 30, 1994
<TABLE>
<CAPTION>
PREMIER PREMIER PREMIER
LIMITED TERM LIMITED TERM LIMITED TERM
CALIFORNIA MASSACHUSETTS NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
FUND* FUND FUND*
<S> <C> <C> <C>
Net investment income $ 582,685 $ 1,615,135 $ 189,458
Net realized gain on investments sold during
the period 14,912 152,764 8,675
Net unrealized depreciation of investments dur-
ing the period (827,931) (1,343,936) (252,695)
Net increase/(decrease) in net assets resulting
from operations (230,334) 423,963 (54,562)
Distributions to shareholders from net invest-
ment income:
Investor Shares (277,045) (989,756) (82,208)
Trust Shares (289,738) (540,681) (73,607)
Institutional Class (14,494) (84,698) (33,423)
Distributions to shareholders from net realized
capital gains:
Investor Shares (677) (565,152) --
Trust Shares (696) (249,144) --
Institutional Class (35) -- --
Net increase/(decrease) in net assets from Fund
share transactions (Note 5):
Investor Shares (1,238,421) 246,341 (1,055,142)
Trust Shares 4,363,934 6,980,604 (56,058)
Net increase/(decrease) in net assets 2,312,494 5,221,477 (1,355,000)
NET ASSETS:
Beginning of period 20,065,529 31,735,399 6,665,340
End of period (including undistributed net in-
vestment income/(distributions in excess of
net investment income) of $(201), $1,555, and
$0, respectively.) $ 22,378,023 $ 36,956,876 $ 5,310,340
</TABLE>
* The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<TABLE>
<CAPTION>
PERIOD
YEAR ENDED
ENDED 6/30/94@ ##
6/30/95##
<S> <C> <C>
Net Asset Value, beginning of year $12.61 $ 13.07
Income from investment operations:
Net investment income*** 0.59 0.34
Net realized and unrealized gain/(loss) on in-
vestments 0.21 (0.46)
Total from investment operations 0.80 (0.12)
Less distributions:
Distributions from net investment income (0.60) (0.34)
Distributions from net realized capital gains (0.01) (0.00)****
Total distributions (0.61) (0.34)
Net Asset Value, end of year $12.80 $ 12.61
Total return+++ 6.48% (0.95)%
Ratios to average net assets/supplemental data:
Net assets, end of year (000's) $8,506 $10,143
Ratio of expenses to average net assets+ 0.75% 0.58%**
Ratio of net investment income to average net
assets 4.71% 4.51%**
Portfolio turnover rate 49% 5%
</TABLE>
* The Fund commenced operations on March 7, 1988. On February 1, 1993
existing shares of the Fund were designated the Retail Class and the
Fund began offering the Institutional Class and Investment Class of
shares. Effective April 4, 1994 the Retail and Institutional Classes
were reclassified as a single class of shares known as the Investor
shares. Effective October 17, 1994, the Investor Class was redesig-
nated Class A. The Financial Highlights for the year ended June 30,
1995 are based upon a Class A share (formerly Investor shares) out-
standing. The amounts shown for the period ended June 30, 1994 were
calculated using the performance of a Retail share outstanding from
December 1, 1993 to April 3, 1994 and the performance of an Investor
share outstanding from April 4, 1994 to June 30, 1994. The Financial
Highlights for the year ended November 30, 1993 and prior years are
based upon a Retail share outstanding.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the period ended June 30, 1994, for the years
ended November 30, 1993, 1992, 1991, 1990, 1989 and for the period
ended November 30, 1988 were $0.31, $0.67, $ 0.64, $0.66, $0.66,
$0.59, and $0.33, respectively.
**** Amount represents less than $0.01 per share.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/93 11/30/92 11/30/91 11/30/90 11/30/89 11/30/88*
<S> <C> <C> <C> <C> <C>
$ 12.81 $ 12.53 $ 12.29 $ 12.16 $11.84 $12.00
0.67 0.70 0.73 0.73 0.76 0.47
0.66 0.44 0.24 0.20 0.32 (0.16)
1.33 1.14 0.97 0.93 1.08 0.31
(0.67) (0.70) (0.73) (0.73) (0.76) (0.47)
(0.40) (0.16) -- (0.07) -- --
(1.07) (0.86) (0.73) (0.80) (0.76) (0.47)
$ 13.07 $ 12.81 $ 12.53 $ 12.29 $12.16 $11.84
10.58% 9.27% 8.07% 7.96% 9.38% 2.61%
$10,971 $21,831 $16,203 $12,481 $5,132 $3,202
0.45%++ 0.45% 0.45% 0.45% 0.45% 0.68%**
5.09% 5.38% 5.84% 6.07% 6.28% 5.43%**
38% 41% 27% 75% 59% --
</TABLE>
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the period ended June 30, 1994, for the
years ended November 30, 1993, 1992, 1991, 1990, 1989 and for the pe-
riod ended November 30, 1988 were 0.95%, 1.10%, 0.93%, 1.03%, 1.03%,
1.85% and 2.33%, respectively.
++ The operating expense ratio excludes interest expense. The operating
expense ratio including interest expense was 0.46% for the year ended
November 30, 1993.
+++ Total return represents aggregate total return for the periods indi-
cated and does not reflect the deduction of any applicable sales
charge.
@ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
## Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manger. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager.
Prior to April 4, 1994, The Boston Company Advisors, Inc. served as
the Fund's investment adviser.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND
FOR A CLASS B SHARE OUTSTANDING THROUGHOUT THE PERIOD.*
<TABLE>
<CAPTION>
PERIOD
ENDED
6/30/95*
<S> <C>
Net Asset Value, beginning of period $12.28
Income from investment operations:
Net investment income 0.27
Net realized and unrealized gain on investments 0.53
Total from investment operations 0.80
Less distributions:
Distributions from net investment income (0.28)
Net Asset Value, end of period $12.80
Total return+++ 6.51%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's) $ 9
Ratio of expenses to average net assets 1.25%**
Ratio of net investment income to average net
assets 4.20%**
Portfolio turnover rate 49%
</TABLE>
* The Fund commenced selling Class B shares on December 28, 1994.
** Annualized.
+++ Total return represents aggregate total return for the period indi-
cated and does not reflect deduction of the applicable sales charge.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND
FOR A CLASS C SHARE OUTSTANDING THROUGHOUT THE PERIOD.*
<TABLE>
<CAPTION>
PERIOD
ENDED
6/30/95*
<S> <C>
Net Asset Value, beginning of period $12.28
Income from investment operations:
Net investment income 0.28
Net realized and unrealized gain on investments 0.52
Total from investment operations 0.80
Less distributions:
Distributions from net investment income (0.28)
Net Asset Value, end of period $12.80
Total return+++ 6.51%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's) $ 25
Ratio of expenses to average net assets 1.25%**
Ratio of net investment income to average net
assets 4.22%**
Portfolio turnover rate 49%
</TABLE>
* The Fund commenced selling Class C shares on December 28, 1994.
** Annualized.
+++ Total return represents aggregate total return for the period indi-
cated and does not reflect deduction of the applicable sales charge.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<TABLE>
<CAPTION>
PERIOD PERIOD
YEAR ENDED ENDED
ENDED 6/30/94@ ## 11/30/93*
6/30/95##
<S> <C> <C> <C>
Net Asset Value, beginning of period $12.61 $ 13.07 $12.96
Income from investment operations:
Net investment income*** 0.63 0.35 0.55
Net realized and unrealized gain/(loss) on in-
vestments 0.20 (0.46) 0.52
Total from investment operations 0.83 (0.11) 1.07
Less distributions:
Distributions from net investment income (0.63) (0.35) (0.56)
Distributions from net realized capital gains (0.01) (0.00)**** (0.40)
Total distributions (0.64) (0.35) (0.96)
Net Asset Value, end of period $12.80 $ 12.61 $13.07
Total return+++ 6.75% (0.87)% 8.32%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's) $8,813 $12,235 $8,291
Ratio of expenses to average net assets+ 0.50% 0.42%** 0.40%**++
Ratio of net investment income to average net
assets 4.96% 4.68%** 5.04%**
Portfolio turnover rate 49% 5% 38%
</TABLE>
* The Fund commenced selling Investment shares on February 1, 1993. Ef-
fective April 4, 1994 the Investment Class was reclassified as the
Trust shares. Effective October 17, 1994 Trust shares were redesig-
nated Class R shares. The table above is based upon an Investment
share outstanding from February 1, 1993 to April 3, 1994 and a Trust
share outstanding from April 4, 1994 to October 16, 1994.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the periods ended June 30, 1994 and November 30,
1993 were $0.32 and $0.49, respectively.
**** Amount represents less than $0.01 per share.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the periods ended June 30, 1994 and Novem-
ber 30, 1993 were 0.79% and 1.06%, respectively.
++ The operating expense ratio excludes interest expense. The operation
expense ratio including interest expense was 0.41% for the period
ended November 30, 1993.
+++ Total return represents aggregate total return for the periods indi-
cated.
@ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
## Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manager. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager.
Prior to April 4, 1994, The Boston Company Advisors, Inc. served as
the Fund's investment adviser.
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<TABLE>
<CAPTION>
YEAR YEAR YEAR
ENDED ENDED ENDED
6/30/95## 6/30/94## 6/30/93
<S> <C> <C> <C>
Net Asset Value, beginning of year $ 11.74 $ 12.38 $ 11.83
Income from investment operations:
Net investment income*** 0.55 0.54 0.64
Net realized and unrealized gain/(loss) on in-
vestments 0.20 (0.36) 0.55
Total from investment operations 0.75 0.18 1.19
Less distributions:
Distributions from net investment income (0.54) (0.54) (0.64)
Distributions from net realized capital gains (0.04) (0.28) --
Total distributions (0.58) (0.82) (0.64)
Net Asset Value, end of year $ 11.91 $ 11.74 $ 12.38
Total return++ 6.60% 1.38% 10.27%
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's) $16,501 $21,276 $20,106
Ratio of expenses to average net assets+ 0.75% 0.76% 0.75%
Ratio of net investment income to average net
assets 4.65% 4.40% 5.30%
Portfolio turnover rate 25% 19% 60%
</TABLE>
* The Fund commenced operations on September 24, 1985. On February 1,
1993 existing shares of the Fund were designated the Retail Class and
the Fund began offering the Institutional Class and Investment Class
of shares. Effective April 4, 1994 the Retail and Institutional
Classes were reclassified as a single class of shares known as the In-
vestor shares. Effective October 17, 1994 the Investor shares were re-
designated Class A. The Financial Highlights for the year ended June
30, 1995 are based upon a Class A share (formerly Investor shares)
outstanding. The amounts shown for the year ended June 30, 1994 were
calculated using the performance of a Retail share outstanding from
July 1, 1993 to April 3, 1994, and the performance of an Investor
share outstanding from April 4, 1994 to June 30, 1994. The Financial
Highlights for the year ended June 30, 1993 and prior years are based
upon a Retail share outstanding.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by investment adviser and/or custodian and/or trans-
fer agent for the years ended June 30, 1994, 1993, 1987 and for the
period ended June 30, 1986 were $0.53, $0.62, $0.70 and $0.55, respec-
tively.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
6/30/92 6/30/91 6/30/90 6/30/89 6/30/88 6/30/87 6/30/86*
<S> <C> <C> <C> <C> <C> <C>
$ 11.23 $ 11.09 $ 11.25 $ 10.89 $ 10.74 $ 10.78 $10.00
0.73 0.73 0.72 0.74 0.72 0.72 0.58
0.60 0.14 (0.16) 0.36 0.15 (0.04) 0.78
1.33 0.87 0.56 1.10 0.87 0.68 1.36
(0.73) (0.73) (0.72) (0.74) (0.72) (0.72) (0.58)
-- -- -- -- -- -- --
(0.73) (0.73) (0.72) (0.74) (0.72) (0.72) (0.58)
$ 11.83 $ 11.23 $ 11.09 $ 11.25 $ 10.89 $ 10.74 $10.78
12.21% 8.13% 5.13% 10.44% 8.37% 6.27% 13.75%
$20,513 $16,337 $16,093 $14,957 $14,702 $15,355 $7,708
0.76% 0.88% 0.92% 0.96% 0.96% 0.79% 0.75%**
6.34% 6.59% 6.45% 6.70% 6.69% 6.45% 7.00%**
23% 41% 99% 93% 104% 127% 33%
</TABLE>
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the years ended June 30, 1994, 1993 and 1987
and the period ended June 30, 1986 were 0.89%, 0.92%, 0.95% and 1.15%,
respectively.
++ Total return represents aggregate total return for the period indi-
cated and does not reflect the deduction of any applicable sales
charge.
## Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manger. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager. Prior
to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment adviser.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
FOR A CLASS C SHARE OUTSTANDING THROUGHOUT THE PERIOD.*
<TABLE>
<CAPTION>
PERIOD
ENDED
6/30/95*
<S> <C>
Net Asset Value, beginning of period $11.45
Income from investment operations:
Net investment income 0.26
Net realized and unrealized gain on investments 0.45
Total from investment operations 0.71
Less distributions:
Distributions from net investment income (0.25)
Net Asset Value, end of period $11.91
Total return+++ 6.24%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's) $ 18
Ratio of expenses to average net assets 1.25%**
Ratio of net investment income to average net
assets 4.15%**
Portfolio turnover rate 25%
</TABLE>
* The Fund commenced selling Class C shares on December 28, 1994.
** Annualized.
+++ Total return represents aggregate total return for the period indi-
cated and does not reflect deduction of the applicable sales charge.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<TABLE>
<CAPTION>
YEAR YEAR PERIOD
ENDED ENDED ENDED
6/30/95## 6/30/94## 6/30/93*
<S> <C> <C> <C>
Net Asset Value, beginning of year $ 11.74 $ 12.38 $12.08
Income from investment operations:
Net investment income*** 0.57 0.55 0.25
Net realized and unrealized gain/(loss) on in-
vestments 0.21 (0.35) 0.29
Total from investment operations 0.78 0.20 0.54
Less distributions:
Distributions from net investment income (0.57) (0.56) (0.24)
Distributions from net realized capital gains (0.04) (0.28) --
Total distributions (0.61) (0.84) (0.24)
Net Asset Value, end of year $ 11.91 $ 11.74 $12.38
Total return++ 6.87% 1.53% 4.53%
Ratios to average net assets/
supplemental data:
Net assets, end of year (000's) $19,700 $15,681 $9,411
Ratio of expenses to average net assets+ 0.50%** 0.62% 0.65%**
Ratio of net investment income to average net
assets 4.90%** 4.54% 4.84%**
Portfolio turnover rate 25% 19% 60%
</TABLE>
* The Fund commenced selling Investment shares on February 1, 1993. Ef-
fective April 4, 1994 the Investment Class was reclassified as the
Trust shares. Effective October 17, 1994 Trust shares were redesig-
nated Class R shares. The table above is based upon an Investment
share outstanding from February 1, 1993 to April 3, 1994 and a Trust
share outstanding from April 4, 1994 to October 16, 1994.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the year ended June 30, 1994 and for the period
ended June 30, 1993 were $0.54 and $0.24, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the year ended June 30, 1994 and for the pe-
riod ended June 30, 1993 were 0.75% and 0.87%, respectively.
++ Total return represents aggregate total return for the period indi-
cated.
## Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manger. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager. Prior
to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment adviser.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
FOR A CLASS A SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
<TABLE>
<CAPTION>
YEAR PERIOD
ENDED ENDED
6/30/95## 6/30/94@ ##
<S> <C> <C>
Net Asset Value, beginning of year $12.59 $13.04
Income from investment operations:
Net investment income*** 0.60 0.35
Net realized and unrealized gain/(loss) on in-
vestments 0.17 (0.45)
Total from investment operations 0.77 (0.10)
Less distributions:
Distributions from net investment income (0.60) (0.35)
Distributions from net realized capital gains (0.04) --
Distributions in excess of net realized capital
gains (0.01) --
Total distributions (0.65) (0.35)
Net Asset Value, end of year $12.71 $12.59
Total return++ 6.39% (0.80)%
Ratios to average net assets/supplemental data:
Net assets, end of year (000's) $2,340 $2,922
Ratio of expenses to average net assets+ 0.75% 0.57%**
Ratio of net investment income to average net
assets 4.83% 4.66%**
Portfolio turnover rate 32% 13%
</TABLE>
* The Fund commenced operations on March 7, 1988. On February 1, 1993
existing shares of the Fund were designated the Retail Class and the
Fund began offering the Institutional Class and Investment Class of
shares. Effective April 4, 1994 the Retail and Institutional Classes
were reclassified as a single class of shares known as the Investor
shares. Effective October 17, 1994, the Investor Class was redesig-
nated Class A shares. The Financial Highlights for the year ended June
30, 1995 are based upon a Class A share (formerly Investor shares)
outstanding. The amounts shown for the period ended June 30, 1994 were
calculated using the performance of a Retail share outstanding from
December 1, 1993 to April 3, 1994 and the performance of an Investor
share outstanding from April 4, 1994 to June 30, 1994. The Financial
Highlights for the year ended November 30, 1993 and prior years are
based upon a Retail share outstanding.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the period ended June 30, 1994, for the years ended
November 30, 1993, 1992, 1991, 1990, 1989 and for the period ended No-
vember 30, 1988 were $0.28, $0.42, $0.52, $0.52, $0.59, $0.45, and
$0.31, respectively.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/93 11/30/92 11/30/91 11/30/90 11/30/89 11/30/88*
<S> <C> <C> <C> <C> <C>
$12.70 $12.34 $12.02 $11.90 $11.75 $12.00
0.66 0.68 0.70 0.73 0.72 0.47
0.46 0.36 0.32 0.11 0.15 (0.24)
1.12 1.04 1.02 0.84 0.87 0.23
(0.66) (0.68) (0.70) (0.72) (0.72) (0.48)
(0.12) -- -- -- -- --
-- -- -- -- -- --
(0.78) (0.68) (0.70) (0.72) (0.72) (0.48)
$13.04 $12.70 $12.34 $12.02 $11.90 $11.75
9.00% 8.65% 8.71% 7.35% 7.60% 1.95%
$2,100 $5,308 $5,202 $3,959 $3,535 $2,315
0.46% 0.45% 0.45% 0.45% 0.44% 0.70%**
5.11% 5.43% 5.74% 6.14% 6.30% 5.54%**
32% 0% 0% 45% 7% 74%
</TABLE>
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the period ended June 30, 1994, for the
years ended November 30, 1993, 1992, 1991, 1990, 1989 and for the pe-
riod ended November 30, 1988 were 1.51%, 2.32%, 1.70%, 1.88%, 1.61%,
2.67% and 2.61%, respectively.
++ Total return represents aggregate total return for the period indi-
cated and does not reflect the deduction of any applicable sales
charge.
@ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
## Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manger. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager. Prior
to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment adviser.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
FOR A CLASS C SHARE OUTSTANDING THROUGHOUT THE PERIOD.*
<TABLE>
<CAPTION>
PERIOD
ENDED
6/30/95*
<S> <C>
Net Asset Value, beginning of period $12.21
Income from investment operations:
Net investment income 0.28
Net realized and unrealized gain on investments 0.49
Total from investment operations 0.77
Less distributions:
Distributions from net investment income (0.27)
Net Asset Value, end of period $12.71
Total return+++ 6.39%
Ratios to average net assets/supplemental data:
Net assets, end of period (000's) $ 68
Ratio of expenses to average net assets 1.25%**
Ratio of net investment income to average net
assets 4.34%**
Portfolio turnover rate 32%
</TABLE>
* The Fund commenced selling Class C shares on December 28, 1994.
** Annualized.
+++ Total return represents aggregate total return for the period indi-
cated and does not reflect deduction of the applicable sales charge.
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<TABLE>
<CAPTION>
PERIOD PERIOD
YEAR ENDED ENDED
ENDED 6/30/94@ ## 11/30/93*
6/30/95##
<S> <C> <C> <C>
Net Asset Value, beginning of period $12.59 $13.04 $12.85
Income from investment operations:
Net investment income*** 0.64 0.37 0.57
Net realized and unrealized gain/(loss) on in-
vestments 0.17 (0.45) 0.31
Total from investment operations 0.81 (0.08) 0.88
Less distributions:
Distributions from net investment income (0.64) (0.37) (0.57)
Distributions from net realized capital gains (0.04) -- (0.12)
Distributions in excess of net realized capital
gains (0.01) -- --
Total distributions (0.69) (0.37) (0.69)
Net Asset Value, end of period $12.71 $12.59 $13.04
Total return++ 6.65% (0.67)% 6.95%
Ratios to average net assets/
supplemental data:
Net assets, end of period (000's) $2,844 $2,388 $2,542
Ratio of expenses to average net assets+ 0.50% 0.29%** 0.25%**
Ratio of net investment income to average net
assets 5.08% 4.94%** 5.20%**
Portfolio turnover rate 32% 13% 32%
</TABLE>
* The Fund commenced selling Investment Class shares on February 1,
1993. Effective April 4, 1994 the Investment Class was reclassified as
the Trust shares. Effective October 17, 1994 Trust shares were redes-
ignated Class R shares. The table above is based upon a Retail share
outstanding from February 1, 1993 to April 3, 1994 and a Trust share
outstanding from April 4, 1994 to October 16, 1994.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the periods ended June 30, 1994 and November 30,
1993 were $0.30 and $0.36, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the periods ended June 30, 1994 and November
30, 1993 were 1.23% and 2.22%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
@ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
## Effective October 17, 1994, The Dreyfus Corporation began serving as
the Fund's investment manger. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A. served as the Fund's investment manager. Prior
to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment adviser.
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Tax-Free Municipal Funds (the "Trust"), The Dreyfu-
s/Laurel Funds, Inc., The Dreyfus/Laurel Funds Trust and The Dreyfus/Lau-
rel Investment Series (collectively, "The Dreyfus/Laurel Funds") are all
registered open-end investment companies that are now part of the Dreyfus
Family of Funds. The Trust is an investment company which consists of
seven funds: the Dreyfus/Laurel California Tax-Free Money Fund, the Drey-
fus/Laurel Massachusetts Tax-Free Money Fund, the Dreyfus/Laurel New York
Tax-Free Money Fund, the Premier Limited Term California Municipal Fund,
the Premier Limited Term Massachusetts Municipal Fund, the Premier Limited
Term New York Municipal Fund and the Premier Limited Term Municipal Fund.
These financial statements report on the Premier Limited Term California
Municipal Fund, the Premier Limited Term Massachusetts Municipal Fund and
the Premier Limited Term New York Municipal Fund (collectively the
"Funds"). The Trust is a Massachusetts business trust and is registered
with the Securities and Exchange Commission ("SEC") under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end manage-
ment investment company. In 1994, the Board of Trustees approved a change
in the Funds' fiscal year end from November 30 to June 30 for the Premier
Limited Term California Municipal Fund and the Premier Limited Term New
York Municipal Fund. This change was effective for financial reporting and
Federal income tax purposes. The Funds currently offer four classes of
shares: Class A, Class B, Class C and Class R shares (effective October
17, 1994, the Investor shares were redesignated Class A shares and the
Trust shares were redesignated Class R shares). Class A shares are de-
signed for the retail investor and generally bear a front end sales charge
or may be subject to a contingent deferred sales charge ("CDSC") and are
subject to a distribution fee. Class B shares are designed for the retail
investor and are subject to a CDSC and service and distribution fees.
Class C shares are designed for the retail investor and bear a CDSC and
service and distribution fees. Class R shares are sold primarily to bank
trust departments and other financial service providers (including Mellon
Bank, N.A. ("Mellon Bank") and its affiliates) acting on behalf of custom-
ers having a qualified trust or investment account or relationship at such
institution, and bear no distribution fee. Each class of shares has iden-
tical rights and privileges except with respect to the distribution and
service fees and voting rights on matters affecting a single class. The
following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of its financial statements in
accordance with generally accepted accounting principals
(A) PORTFOLIO VALUATION
The portfolio securities of each Fund, except as otherwise noted, listed
or traded on a stock exchange, are valued at the latest sale price. If no
sale is reported, the mean of the latest bid and asked prices is used. Se-
curities traded over-the-counter are priced at the mean of the latest bid
and asked prices but will be valued at the last sale price if required by
regulations of the SEC. When market quotations are not readily available,
securities and other assets are valued at fair value as determined in good
faith in accordance with procedures established by the Board of Trustees.
Bonds are valued through valuations obtained from a commercial pricing
service or at the most recent mean of the bid and asked prices provided by
investment dealers in accordance with procedures established by the Board
of Trustees.
Pursuant to a determination by the Funds' Board of Trustees that such
value represents fair value, debt securities with maturities of 60 days or
less held by the Funds are valued at amortized cost. When a security is
valued at amortized cost, it is valued at its cost when purchased, and
thereafter by assuming a constant amortization to maturity of any discount
or premium, regardless of the impact of fluctuating interest rates on the
market value of the instrument.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Interest income
is recorded on the accrual basis. Realized gains and losses from securi-
ties transactions are recorded on the identified cost basis. Investment
income and realized and unrealized gains and losses are allocated based
upon the relative average daily net assets of each class of shares.
(C) FUTURES CONTRACTS
The Fund may enter into futures contracts. The Fund's futures transactions
will be entered into for hedging purposes to protect against a decline in
the price of securities that the Fund owns, or to protect the Fund against
an increase in the price of securities it is committed to purchase.
Upon entering into a futures contract, the Fund is required to deposit
with the broker an amount of cash or cash equivalents equal to a certain
percentage of the contract amount. This is known as the "initial margin."
Subsequent payments ("variation margin") are made or received by the Fund
each day, depending on the daily fluctuation of the value of the contract.
For financial statement purposes, an amount equal to the settlement amount
of the contract is included in its Statement of Assets and Liabilities as
an asset and as an equivalent liability. For long futures positions, the
liability is marked-to-market daily. The daily changes in the contract are
recorded as unrealized gains or losses. The Fund recognizes a realized
gain or loss when the contract is closed.
There are several risks in connection with the use of futures contracts as
a hedging device. The change in value of futures contracts primarily cor-
responds with the value of their underlying instruments, which may not
correlate with the change in value of the hedged instruments. In addition,
there is the risk the Fund may not be able to enter into a closing trans-
action because of an illiquid secondary market.
(D) EXPENSE ALLOCATION
Expenses of each Fund not directly attributable to the operations of any
class of shares are pro rated among the classes based upon the relative
average daily net assets of each class. Distribution expense is directly
attributable to a particular class of shares and is charged only to that
class' operations.
(E) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income, if any, are determined on a class
level on each day a Fund is open for business and paid no later than the
first business day of the next month. Distributions from net realized cap-
ital gains, if any, are determined on a Fund level and are declared and
paid annually. Each Fund is subject to a 4.00% nondeductible excise tax
measured with respect to certain undistributed amounts of net investment
income and capital gain. Each Fund expects to make such additional distri-
butions as are necessary to avoid the application of this tax. Income dis-
tributions and capital gain distributions on a Fund level are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities
held by the Fund, timing differences and differing characterization of
distributions made by the Fund as a whole.
(F) FEDERAL INCOME TAXES
Each Fund intends to qualify as regulated investment company by complying
with the requirements of the Internal Revenue Code applicable to regulated
investment companies and by distributing substantially all of its taxable
income to shareholders. Therefore, no Federal income tax provision is re-
quired.
2. INVESTMENT MANAGEMENT FEE, TRUSTEES' FEES AND OTHER PARTY TRANSACTIONS
Effective as of October 17, 1994 the Trust's investment management agree-
ment with Mellon Bank was transferred to The Dreyfus Corporation (the
"Manager"), a wholly-owned subsidiary of Mellon Bank. The Manager pro-
vides, or arranges for one or more third parties to provide, investment
advisory, administrative, custody, fund accounting and transfer agency
services to the Trust. The Manager also directs the investments of the
Funds in accordance with their investment objectives, policies and limita-
tions. For these services, the Funds pay a fee to the Manager, calculated
daily and paid monthly, at the annual rate of 0.50% of the value of each
Fund's average daily net assets. Out of its fee, the Manager pays all of
the expenses of the Funds except brokerage, taxes, interest, Rule 12b-1
distribution fees and expenses, fees and expenses of the non-interested
trustees (including counsel fees) and extraordinary expenses. In addition,
the Manager is required to reduce its fee in an amount equal to each
Fund's allocable portion of fees and expenses of the non-interested Trust-
ees (including counsel).
Prior to October 17, 1994, Mellon Bank served as the Trust's investment
manager pursuant to the investment management agreement described above.
From April 4, 1994 to September 23, 1994, Frank Russell Investment Manage-
ment Company (the "Administrator") served as each Fund's administrator and
provided, pursuant to an administration agreement, various administrative
and corporate secretarial services to each Fund. Mellon Bank, as invest-
ment manager, paid the Administrator's fee out of the management fee de-
scribed above.
Prior to October 17, 1994, the Funds Distributor, Inc. served as distribu-
tor of the Trust's shares. Effective as of October 17, 1994, Premier Mu-
tual Fund Services, Inc. ("Premier") serves as the Trust's distributor.
Premier also serves as the Trust's sub- administrator and, pursuant to a
sub-administration agreement with the Manager, provides various adminis-
trative and corporate secretarial services to the Trust.
For the year ended June 30, 1995, Premier received commissions (sales
charges) from investors on sales of Class A shares as follows:
<TABLE>
<S> <C>
Premier Limited Term California Municipal Fund $1,348
Premier Limited Term New York Municipal Fund 3,418
</TABLE>
No officer or employee of Premier (or of any parent, subsidiary or affili-
ate thereof) receives any compensation from The Dreyfus/Laurel Funds for
serving as an officer, Director or Trustee of The Dreyfus/Laurel Funds. In
addition, no officer or employee of the Manager (or of any parent, subsid-
iary or affiliate thereof) serves as an officer, Director or Trustee of
The Dreyfus/Laurel Funds. The Dreyfus/Laurel Funds pay each
Director or Trustee who is not an officer or employee of Premier (or any
parent, subsidiary or affiliate thereof), $27,000 per annum, $1,000 for
each Board meeting attended and $750 for each Audit Committee meeting at-
tended, and reimburse each Director or Trustee for travel and out-of-
pocket expenses.
3. DISTRIBUTION PLAN
Class A shares of each Fund are subject to a distribution plan adopted
pursuant to Rule 12b-1 of the 1940 Act. Under this distribution plan, each
Fund may pay annually up to 0.25% of its average daily net assets attrib-
utable to Class A shares to compensate Premier and Dreyfus Service Corpo-
ration, an affiliate of the Manager, for shareholder servicing activities
and Premier for activities and expenses primarily intended to result in
the sale of Class A shares. Class B and Class C shares of each Fund are
subject to a separate distribution plan adopted pursuant to Rule 12b-1,
pursuant to which each Fund pays Premier for distributing the Fund's Class
B and C shares, at an aggregate annual rate of 0.50% of the value of the
average daily net assets of Class B and C. Class B and Class C shares of
each Fund are also subject to a service plan adopted pursuant to Rule 12b-
1, pursuant to which each Fund pays Dreyfus Service Corporation or Premier
for providing certain services to the holders of Class B and C shares a
fee at the annual rate of 0.25% of the value of the average daily net as-
sets of Class B and C shares. For the year ended June 30, 1995, the dis-
tribution and service fees were as follows:
<TABLE>
<CAPTION>
DISTRIBUTION FEE: CLASS A CLASS B CLASS C
<S> <C> <C> <C>
Premier Limited Term California Municipal Fund $25,076 $13 $15
Premier Limited Term Massachusetts Municipal
Fund 46,118 -- 20
Premier Limited Term New York Municipal Fund 6,639 -- 71
</TABLE>
<TABLE>
<CAPTION>
SERVICE FEE: CLASS B CLASS C
<S> <C> <C>
Premier Limited Term California Municipal Fund $6 $ 8
Premier Limited Term Massachusetts Municipal
Fund -- 10
Premier Limited Term New York Municipal Fund -- 36
</TABLE>
Class R shares bear no service or distribution fee.
Under their terms, the plans shall remain in effect from year to year,
provided such continuance is approved annually by a vote of a majority of
the Trustees and a majority of those Trustees who are not "interested per-
sons" of the Trust and who have no direct or indirect financial interest
in the operation of the plans.
4. SECURITIES TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of securities, ex-
cluding short- term investments, for the year ended June 30, 1995, were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
<S> <C> <C>
Premier Limited Term California Municipal Fund $ 9,018,658 $10,223,690
Premier Limited Term Massachusetts Municipal
Fund 13,889,782 8,014,968
Premier Limited Term New York Municipal Fund 1,634,161 1,608,486
</TABLE>
At June 30, 1995, aggregate gross unrealized appreciation for all securi-
ties in which there is an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there is an ex-
cess of tax cost over value were as follows:
<TABLE>
<CAPTION>
APPRECIATION DEPRECIATION
<S> <C> <C>
Premier Limited Term California Municipal Fund $ 704,284 $ 53,653
Premier Limited Term Massachusetts Municipal
Fund 1,085,351 233,585
Premier Limited Term New York Municipal Fund 265,648 33,377
</TABLE>
5. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of ben-
eficial interest of each class in each separate series, without par value.
The Trust offers four classes of shares for each Fund. The tables below
summarize transactions in Fund shares.
PREMIER LIMITED TERM CALIFORNIA MUNICIPAL FUND
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
JUNE 30, 1995# JUNE 30, 1994*@
SHARES AMOUNT SHARES+ AMOUNT++
<S> <C> <C> <C> <C>
CLASS A SHARES:
Sold 174,483 $ 2,197,261 192,085 $ 2,488,385
Issued as reinvestment of dividends and distri-
butions 26,315 330,931 15,522 200,024
Redeemed (340,612) (4,294,848) (304,156) (3,926,830)
Net decrease (139,814) $(1,766,656) (96,549) $(1,238,421)
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1995#
SHARES AMOUNT
<S> <C> <C>
CLASS B SHARES:
Sold 688 $8,761
Issued as reinvestment of dividends and distri-
butions 8 102
Net increase 696 $8,863
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1995#
SHARES AMOUNT
<S> <C> <C>
CLASS C SHARES:
Sold 1,950 $25,015
Issued as reinvestment of dividends and distri-
butions 11 138
Net increase 1,961 $25,153
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
JUNE 30, 1995# JUNE 30, 1994*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
CLASS R SHARES:
Sold 223,405 $ 2,806,491 530,046 $ 6,881,437
Issued as reinvestment of dividends and distri-
butions 18,939 238,156 12,922 166,413
Redeemed (523,959) (6,549,186) (207,227) (2,683,916)
Net increase/(decrease) (281,615) $(3,504,539) 335,741 $ 4,363,934
</TABLE>
* The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
@ Effective April 4, 1994, the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor shares.
# On October 17, 1994, Investor shares and Trust shares were redesignated
Class A shares and Class R shares, respectively. The Fund commenced
selling Class B and C shares on December 28, 1994.
+ Shares include 54,145 of subscriptions, 535 of reinvestments and 20,536
of redemptions for the Institutional Class up to April 4, 1994.
++ Amounts include $710,630 of subscriptions, $6,978 of reinvestments and
$267,644 of redemptions for the Institutional Class up to April 4,
1994.
PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
JUNE 30, 1995# JUNE 30, 1994*
SHARES AMOUNT SHARES+ AMOUNT++
<S> <C> <C> <C> <C>
CLASS A SHARES:
Sold 316,736 $ 3,717,270 741,861 $ 9,177,419
Issued as reinvestment of dividends and distri-
butions 61,078 714,238 110,036 1,343,636
Redeemed (804,575) (9,400,166) (842,762) (10,274,714)
Net increase/(decrease) (426,761) $(4,968,658) 9,135 $ 246,341
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1995#
SHARES AMOUNT
<S> <C> <C>
CLASS C SHARES:
Sold 1,521 $18,015
Issued as reinvestment of dividends and distri-
butions 12 151
Net increase 1,533 $18,166
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED PERIOD ENDED
JUNE 30, 1995# JUNE 30, 1994*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
CLASS R SHARES:
Sold 725,392 $ 8,491,325 814,611 $ 9,886,034
Issued as reinvestment of dividends and distri-
butions 27,778 324,993 18,592 226,333
Redeemed (434,867) (5,138,820) (257,763) (3,131,763)
Net increase 318,303 $ 3,677,498 575,440 $ 6,980,604
</TABLE>
** Effective April 4, 1994, the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor shares.
# On October 17, 1994, Investor shares and Trust shares were redesignated
Class A shares and Class R shares, respectively. The Fund commenced
selling Class B and C shares on December 28, 1994.
+ Shares include 206,372 of subscriptions, 7,694 of reinvestments and
215,011 of redemptions for the Institutional Class up to April 4, 1994.
++ Amounts include $2,546,364 of subscriptions, $94,534 of reinvestments
and $2,664,797 of redemptions for the Institutional Class up to April
4, 1994.
As of June 30, 1995, the Fund had issued 1.329 Class B shares in the
amount of $15.83.
PREMIER LIMITED TERM NEW YORK MUNICIPAL FUND
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
JUNE 30, 1995# JUNE 30, 1994*@
SHARES AMOUNT SHARES+ AMOUNT++
<S> <C> <C> <C> <C>
CLASS A SHARES:
Sold 216,459 $ 2,659,825 66,553 $ 859,370
Issued as reinvestment of dividends and distri-
butions 7,633 95,205 4,263 54,718
Redeemed (272,051) (3,357,585) (154,814) (1,969,230)
Net decrease (47,959) $ (602,555) (83,998) $(1,055,142)
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1995#
SHARES AMOUNT
<S> <C> <C>
CLASS C SHARES:
Sold 5,292 $66,765
Issued as reinvestment of dividends and distri-
butions 42 528
Net increase 5,334 $67,293
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
JUNE 30, 1995# JUNE 30, 1994*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
CLASS R SHARES:
Sold 224,379 $ 2,784,534 80,154 $ 1,033,826
Issued as reinvestment of dividends and distri-
butions 756 9,422 617 8,058
Redeemed (191,061) (2,376,553) (85,972) (1,097,942)
Net increase/(decrease) 34,074 $ 417,403 (5,201) $ (56,058)
</TABLE>
* The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
@ Effective April 4, 1994, the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor shares.
# On October 17, 1994, Investor shares and Trust shares were redesignated
Class A shares and Class R shares, respectively. The Fund commenced
selling Class B and C shares on December 28, 1994.
+ Shares include 13,454 of subscriptions, 684 of reinvestments and 15,519
of redemptions for the Institutional Class up to April 4, 1994.
++ Amounts include $174,735 of subscriptions, $8,903 of reinvestments and
$204,424 of redemptions for the Institutional Class up to April 4,
1994.
As of June 30, 1995, the Fund had issued 1.248 Class B shares in the
amount of $15.86.
6. CONCENTRATION OF CREDIT
Each Fund invests primarily in debt obligations issued by the Fund's re-
spective state (i.e., California, Massachusetts, or New York) and such
state's political subdivisions, municipalities and public authorities who
obtain funds for various public purposes. Each Fund is more susceptible to
factors adversely affecting issuers of its respective state municipal se-
curities than is a municipal bond fund that is not concentrated in these
issuers to the same extent.
7. CAPITAL LOSS CARRYFORWARD
The Premier Limited Term California Municipal Fund has available for Fed-
eral tax purposes an unused capital loss carryforward of $2,612, expiring
in 2003.
In accordance with tax law, the Premier Limited Term California Municipal
Fund has elected to defer the recognition of losses occurring between Oc-
tober 31, 1994 and June 30, 1995 until the first day of the following fis-
cal year. The amount of such deferral is $11,599 of capital losses. These
losses for tax purposes will be deemed to occur on July 1, 1995. In accor-
dance with tax law, the Premier Limited Term New York Municipal Fund has
elected to defer the recognition of losses occurring between October 31,
1994 and June 30, 1995 until the first day of the following fiscal year.
The amount of such deferral is $5,985 of capital losses. These losses for
tax purposes will be deemed to occur on July 1, 1995.
INDEPENDENT AUDITORS' REPORT
KPMG
The Board of Trustees and Shareholders
The Dreyfus/Laurel Tax-Free Municipal Funds:
We have audited the accompanying statements of assets and liabilities, in-
cluding the portfolio of investments, of the Premier Limited Term Califor-
nia Municipal Fund, Premier Limited Term Massachusetts Municipal Fund and
Premier Limited Term New York Municipal Fund (formerly the California Tax-
Free Bond Fund, Massachusetts Tax-Free Bond Fund and New York Tax-Free
Bond Fund, respectively) of The Dreyfus/Laurel Tax-Free Municipal Funds
(formerly the Laurel Tax-Free Municipal Funds) as of June 30, 1995, and
the related statement of operations for the year then ended and statement
of changes in net assets and financial highlights for Class A, Class B,
Class C and Class R shares for each of the years in the two-year period
then ended for the Premier Limited Term Massachusetts Municipal Fund and
for the year ended June 30, 1995 and for the period from December 1, 1993
to June 30, 1994 for the Premier Limited Term California Municipal Fund
and Premier Limited Term New York Municipal Fund. These financial state-
ments and financial highlights are the responsibility of the Funds' man-
agement. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights presented for each of the years or periods ended June 30, 1993
or prior for the Premier Limited Term Massachusetts Municipal Fund and for
each of the years or periods ended November 30, 1993 or prior for the Pre-
mier Limited Term California Municipal Fund and Premier Limited Term New
York Municipal Fund were audited by other auditors whose reports thereon,
dated August 11, 1993 and January 18, 1994, expressed an unqualified opin-
ion on those financial highlights.
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 fi-
nancial highlights are free of material misstatement. An audit also in-
cludes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirma-
tion of securities owned as of June 30, 1995, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of the Premier Limited Term California Municipal Fund, Premier Limited
Term Massachusetts Municipal Fund and Premier Limited Term New York Munic-
ipal Fund of The Dreyfus/Laurel Tax-Free Municipal Funds as of June 30,
1995, the results of their operations for the year then ended and the
changes in their net assets and financial highlights for each of the years
or periods in the two-year period ended June 30, l995, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Boston, Massachusetts
August 18, 1995
TAX INFORMATION (UNAUDITED)
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
YEAR ENDED JUNE 30, 1995
Of the dividends paid by each Fund from net investment income for the year
ended June 30, 1995, 100% are tax-exempt for regular Federal income tax
purposes.
During the fiscal year ended June 30, 1995, the Premier Limited Term Cali-
fornia Municipal Fund paid $14,912 of long term capital gains to its
shareholders. During the fiscal year ended June 30, 1995, the Premier Lim-
ited Term Massachusetts Municipal Fund paid $10,667 of long term capital
gains to its shareholders. During the fiscal year ended June 30, 1995, the
Premier Limited Term New York Municipal Fund paid $19,770 of long term
capital gains to its shareholders.
The above figures may differ from those cited elsewhere in this report due
to differences in the calculation of income and capital gains for Securi-
ties and Exchange Commission (book) purposes and Internal Revenue Service
(tax) purposes.
