- ---------------------------------------------------------------------------
PROSPECTUS OCTOBER 31, 1995
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
- ---------------------------------------------------------------------------
THE DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND, DREYFUS/LAUREL
MASSACHUSETTS TAX-FREE MONEY FUND AND DREYFUS/LAUREL NEW YORK TAX-FREE MONEY
FUND (EACH A "FUND" AND COLLECTIVELY THE "FUNDS") ARE SEPARATE PORTFOLIOS OF T
HE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS (FORMERLY THE LAUREL TAX-FREE
MUNICIPAL FUNDS AND PREVIOUSLY THE BOSTON COMPANY TAX-FREE MUNICIPAL FUNDS),
A NON-DIVERSIFIED MANAGEMENT INVESTMENT COMPANY KNOWN AS A MUTUAL FUND. THE
FUNDS SEEK TO PROVIDE A HIGH LEVEL OF CURRENT INCOME EXEMPT FROM FEDERAL
INCOME TAXES AND STATE PERSONAL INCOME TAXES FOR RESIDENT SHAREHOLDERS OF THE
NAMED STATE TO THE EXTENT CONSISTENT WITH THE PRESERVATION OF CAPITAL AND THE
MAINTENANCE OF LIQUIDITY BY INVESTING IN HIGH QUALITY, SHORT-TERM MUNICIPAL
SECURITIES.
THIS PROSPECTUS DESCRIBES TWO CLASSES OF SHARES-INVESTOR AND CLASS R
SHARES FOR THE FUNDS (COLLECTIVELY, THE "SHARES").
SHARES OF THE FUNDS ARE SOLD WITHOUT A SALES LOAD. INVESTOR SHARES OF
THE FUNDS ARE SUBJECT TO DISTRIBUTION AND SHAREHOLDER SERVICING FEES.
YOU CAN PURCHASE OR REDEEM SHARES BY TELEPHONE USING THE DREYFUS TELET
RANSFER PRIVILEGE.
THE DREYFUS CORPORATION SERVES AS THE FUNDS' INVESTMENT MANAGER. THE
DREYFUS CORPORATION IS REFERRED TO AS "DREYFUS."
AN INVESTMENT IN THE FUNDS IS NEITHER INSURED NOR GUARANTEED BY THE
U.S. GOVERNMENT. THERE CAN BE NO ASSURANCE THAT THE FUNDS WILL BE ABLE TO
MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
THIS PROSPECTUS SETS FORTH CONCISELY INFORMATION ABOUT THE FUNDS THAT
YOU SHOULD KNOW BEFORE INVESTING. IT SHOULD BE READ CAREFULLY BEFORE YOU
INVEST AND RETAINED FOR FUTURE REFERENCE.
THE STATEMENT OF ADDITIONAL INFORMATION ("SAI") DATED OCTOBER 31,
1995, WHICH MAY BE REVISED FROM TIME TO TIME, PROVIDES A FURTHER DISCUSSION
OF CERTAIN AREAS IN THIS PROSPECTUS AND OTHER MATTERS WHICH MAY BE OF
INTEREST TO SOME INVESTORS. IT HAS BEEN FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION ("SEC") AND IS INCORPORATED HEREIN BY REFERENCE. FOR A
FREE COPY, WRITE TO THE FUNDS AT 144 GLENNCURTISS BOULEVARD, UNIONDALE, NEW
YORK 11556-0144, OR CALL 1-800-645-6561. WHEN TELEPHONING, ASK FOR OPERATOR
144.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
OR ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
ALL MONEY MARKET FUNDS INVOLVE CERTAIN INVESTMENT RISKS, INCLUDING THE
POSSIBLE LOSS OF PRINCIPAL.
THE FEES TO WHICH EACH FUND IS SUBJECT ARE SUMMARIZED IN THE "EXPENSE
SUMMARY" SECTION OF THE FUNDS' PROSPECTUS. THE FUNDS PAY AN AFFILIATE OF
MELLON BANK, N.A. ("MELLON BANK") TO BE ITS INVESTMENT MANAGER. MELLON BANK
OR AN AFFILIATE MAY BE PAID FOR PERFORMING OTHER SERVICES FOR THE FUNDS, SUCH
AS CUSTODIAN, TRANSFER AGENT OR FUND ACCOUNTANT SERVICES. THE FUNDS ARE
DISTRIBUTED BY PREMIER MUTUAL FUND SERVICES, INC.
- ---------------------------------------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
- ---------------------------------------------------------------------------
(Continued from Page 1)
BY THIS PROSPECTUS, THE FUNDS ARE OFFERING INVESTOR SHARES AND CLASS
R SHARES. (CLASS R SHARES OF THE FUND WERE FORMERLY CALLED TRUST SHARES.)
INVESTOR SHARES AND CLASS R SHARES ARE IDENTICAL, EXCEPT AS TO THE SERVICES
OFFERED TO AND THE EXPENSES BORNE BY EACH CLASS. CLASS R SHARES ARE SOLD
PRIMARILY TO BANK TRUST DEPARTMENTS AND OTHER FINANCIAL SERVICE PROVIDERS
(INCLUDING MELLON BANK AND ITS AFFILIATES) ("BANKS") ACTING ON BEHALF OF
CUSTOMERS HAVING A QUALIFIED TRUST OR INVESTMENT ACCOUNT OR RELATIONSHIP AT
SUCH INSTITUTION, OR TO CUSTOMERS WHO HAVE RECEIVED AND HOLD SHARES OF A FUND
DISTRIBUTED TO THEM BY VIRTUE OF SUCH AN ACCOUNT OR RELATIONSHIP. INVESTOR
SHARES ARE SOLD PRIMARILY TO RETAIL INVESTORS BY THE FUNDS' DISTRIBUTOR AND
BY BANKS, SECURITIES BROKERS OR DEALERS AND OTHER FINANCIAL INSTITUTIONS
(INCLUDING DREYFUS AND ITS AFFILIATES) (COLLECTIVELY "AGENTS") THAT HAVE
ENTERED INTO A SELLING AGREEMENT WITH THE FUNDS' DISTRIBUTOR.
TABLE OF CONTENTS
EXPENSE SUMMARY................................. 4
FINANCIAL HIGHLIGHTS............................ 5
DESCRIPTION OF THE FUNDS........................ 10
MANAGEMENT OF THE FUNDS......................... 17
HOW TO BUY FUND SHARES.......................... 19
SHAREHOLDER SERVICES............................ 20
HOW TO REDEEM FUND SHARES....................... 23
DISTRIBUTION PLAN (INVESTOR SHARES ONLY)........ 25
PERFORMANCE INFORMATION......................... 26
DIVIDENDS, OTHER DISTRIBUTIONS AND TAXES........ 27
GENERAL INFORMATION............................. 28
Page 2
<TABLE>
<CAPTION>
EXPENSE SUMMARY
INVESTOR SHARES CLASS R SHARES
---------------- ----------------
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES:
Maximum Sales Load Imposed on Purchases................. none none
Maximum Sales Load Imposed on Reinvestments............. none none
Deferred Sales Load..................................... none none
Redemption Fee.......................................... none none
Exchange Fee............................................ none none
ESTIMATED ANNUAL FUND OPERATING EXPENSES:
(as a percentage of net assets)
Management Fee.......................................... .35% .35%
12b-1 Fee*.............................................. .25% none
Other Expenses**........................................ .00% .00%
______ _____
Total Fund Operating Expenses........................... .60% .35%
EXAMPLE:
You would pay the following expenses
on a $1,000 investment, assuming (1) a 5% annual
return and (2) redemption at the end of each
time period: INVESTOR SHARES CLASS R SHARES
---------------- ----------------
1 Year $ 6 $ 4
3 Years $19 $ 11
5 Years $33 $ 20
10 Years $75 $ 44
* See "Distribution Plan (Investor Shares Only)" for a description of a
Fund's Distribution Plan for the Investor shares.
** Does not include fees and expenses of the non-interested Trustees
(including counsel). The investment manager is contractually required to
reduce its Management Fee in an amount equal to each Fund's allocable
portion of such fees and expenses, which are estimated to be 0.02% of
each Fund's net assets. (See "Management of the Funds.")
</TABLE>
The purpose of the foregoing table is to assist you in understanding
the various costs and expenses that investors will bear, directly or
indirectly, the payment of which will reduce investors' return on an annual
basis. Long-term investors in Investor shares could pay more in 12b-1 fees
than the economic equivalent of paying the maximum front-end sales charges
applicable to mutual funds sold by members of the National Association of
Securities Dealers, Inc. The information in the table does not reflect any
fee waivers or expense reimbursement arrangements that may be in effect.
Certain Agents may charge their clients direct fees for effecting
transactions in Fund shares; such fees are not reflected in the foregoing
table. See "Management of The Funds," "How to Buy Fund Shares" and
"Distribution Plan (Investor Shares Only)." Certain proposals have been
submitted to each Fund's shareholders that, if approved, would result in
increases in the Fund's Management fee, the imposition of certain shareholder
transaction charges and other changes. See "Description of the Funds_Recent
Development."
- ----------------------------------------------------------------------------
THE AMOUNTS LISTED IN THE EXAMPLE SHOULD NOT BE CONSIDERED AS
REPRESENTATIVE OF PAST OR FUTURE EXPENSES AND ACTUAL EXPENSES MAY BE GREATER
OR LESS THAN THOSE INDICATED. MOREOVER, WHILE THE EXAMPLE ASSUMES A 5% ANNUAL
RETURN, THE FUND'S ACTUAL PERFORMANCE WILL VARY AND MAY RESULT IN AN ACTUAL
RETURN GREATER OR LESS THAN 5%.
- ----------------------------------------------------------------------------
The Funds understand that Agents may charge fees to their clients who
are owners of a Fund's Investor shares for various services provided in
connection with a client's account. These fees would be in addition to any
amounts received by an Agent under its Selling Agreement ("Agreement") with
Premier Mutual Fund Services, Inc. ("Premier"). The Agreement requires each
Agent to disclose to its clients any compensation payable to such Agent by
Premier and any other compensation payable by the clients for various
services provided in connection with their accounts.
Page 4
FINANCIAL HIGHLIGHTS
The following tables are based upon a single Investor or Class R
share outstanding through each fiscal year (period) and should be read in
conjunction with the financial statements and related notes that appear in
each Fund's Annual Report dated June 30, 1995, which is incorporated by
reference into the SAI. The financial statements and related notes, as well
as the information in the tables below insofar as it relates to the fiscal
period ended June 30, 1994 and June 30, 1995, have been audited by KPMG Peat
Marwick LLP, independent auditors, whose report thereon appears in the Funds'
Annual Reports. Further information about the performance of each Fund is
also included in each Fund's Annual Report, which may be obtained without
charge by writing to the address or calling the telephone number set forth on
the cover page of this Prospectus. The information in the tables below for
the fiscal years (periods) prior to the fiscal period ended June 30, 1994,
has been audited by other independent auditors.
<TABLE>
<CAPTION>
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH YEAR OR PERIOD.*
PERIOD ENDED YEAR ENDED
YEAR OR PERIOD ENDED NOVEMBER 30, JUNE 30, JUNE 30
--------------------------------------------- ------------ -----------
1988 1989 1990 1991 1992 1993# 1994## 1995###
-------- ----- ------ ------ ------ ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period..................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
INCOME FROM INVESTMENT OPERATIONS:
Net investment income***.......... 0.033 0.060 0.056 0.046 0.031 0.023 0.012 0.031
LESS DISTRIBUTIONS:
Distributions from net
investment income................. (0.033) (0.060) (0.056) (0.046) (0.031) (0.023) (0.012) (0.031)
----- ----- ----- ----- ----- ----- ----- -----
Net asset value, end of period...... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ===== ===== ======
TOTAL RETURN++............. 3.39% 6.18% 5.75% 4.65% 3.10% 2.41% 1.25% 3.10%
----- ----- ----- ----- ----- ----- ----- -----
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period
(in 000's)....... $9,112 $15,745 $27,493 $27,831 $26,98 $15,490 $17,170 $15,538
Ratio of expenses to
average net assets+.......... 0.67%** 0.32% 0.32% 0.32% 0.32% 0.32% 0.47%** 0.60%
Ratio of net investment income to
average net assets.......... 4.55%** 6.02% 5.58% 4.57% 3.03% 2.40% 2.11%** 3.07%
- -------------------
* 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 of
Shares were reclassified as a single class known as the 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 waiver of fees and/or
reimbursement of expenses by the investment manager 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 $0.010, $0.016, $0.026, $0.041,
$0.050, $0.053, and $0.028, respectively.
# 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.
## 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 manager.
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.
+ Annualized expense ratios before voluntary waiver of fees and/or
reimbursement of expenses by the investment manager 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 0.85%, 1.08%, 0.83%, 0.78%, 0.93%, 1.01%,
and 1.41%, respectively.
++ Total return represents aggregate total return for the periods indicated.
</TABLE>
Page 5
<TABLE>
<CAPTION>
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
PERIOD YEAR
PERIOD ENDED ENDED ENDED
NOVEMBER 30, JUNE 30, JUNE 30,
1993# 1994## 1995###
------------- ------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period...................... $1.00 $1.00 $1.00
----- ----- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income***.......................... 0.020 0.013 0.033
LESS DISTRIBUTIONS:
Distributions from net investment income.......... (0.020) (0.013) (0.033)
----- ----- ------
Net asset value, end of period............................ $1.00 $1.00 $1.00
===== ====== ======
TOTAL RETURN++.............................................. 1.98% 1.31% 3.35%
----- ----- ------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net Assets, end of period (in 000's).............. $6,408 $9,747 $7,430
Ratio of expenses to average net assets+........... 0.28%** 0.29%** 0.35%
Ratio of net investment income to average net assets..... 2.13%** 2.29%** 3.32%
- -----------
* The Fund commenced selling Investment Class shares on February 1, 1993.
Effective April 4, 1994, the Investment Class shares were reclassified
as the Trust shares. Effective October 17, 1994, the Trust shares were
redesignated 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
reimbursement of expenses by the investment manager 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.
# 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.
## 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 manager. 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.
+ Annualized expense ratios before voluntary waiver of fees and
reimbursement of expenses by the investment manager 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 indicated.
</TABLE>
Page 6
<TABLE>
<CAPTION>
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH YEAR.*
YEAR ENDED JUNE 30,
1986 1987 1988 1989 1990 1991 1992 1993 1994# 1995##
------ ---- ---- ----- ---- ----- ---- ----- ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
Beginning of year........ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income***..... 0.047 0.039 0.042 0.055 0.056 0.051 0.034 0.019 0.018 0.029
LESS DISTRIBUTIONS:
Distributions from
net investment income......... (0.047) (0.039) (0.042) (0.055) (0.056) (0.051) (0.034) (0.019) (0.018) (0.029)
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Net Asset Value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ====== ===== ====== ===== ===== ====== =====
TOTAL RETURN++.................. 4.69% 3.97% 4.12% 5.62% 5.56% 4.93% 3.36% 1.94% 1.83% 2.99%
----- ----- ----- ----- ----- ----- ----- ----- ----- -----
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets,end of year
(in 000's)................ $111,095 $137,295 $146,592 $134,941 $159,551 $160,392 $149,679 $68,952 $86,505 $75,746
Ratios of operating expenses
to average net assets +..... 0.50% 0.47% 0.65% 0.67% 0.65% 0.64% 0.67% 0.68% 0.70% 0.60%
Ratios of net
investment income
to average net assets..... 4.71% 3.92% 4.25% 5.45% 5.64% 5.07% 3.38% 1.98% 1.80% 2.94%
- -------------------------
* 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, 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.
# Prior to April 4, 1994, The Boston Company Advisors, Inc.
served 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.
## Effective October 17, 1994, The Dreyfus Corporation began serving
as the Fund's investment manager.
*** Net investment income per share before waiver of fees and/or
reimbursement of expenses by the investment manager and/or custodian
and/or transfer agent for the years ended June 30, 1994, 1993, 1989, 1987
and1986 were $0.017, $0.019, $0.055, $0.038 and $0.049, respectively.
+ Annualized expense ratios before voluntary waiver of
fees and/or reimbursement of expenses by investment manager and/or
custodian and/or transfer agent for the years ended June 30, 1994, 1993,
1989, 1987 and1986 would have been 0.78%, 0.69%, 0.70%, 0.64% and 0.79%,
respectively.
++ Total return represents aggregate total return for the periods indicated.
</TABLE>
Page 7
<TABLE>
<CAPTION>
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH YEAR OR PERIOD.*
PERIOD YEAR YEAR
ENDED ENDED ENDED
6/30/93 6/30/94# 6/30/95##
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period............................... $1.00 $1.00 $1.00
----- ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income***....................................... 0.007 0.019 0.032
LESS DISTRIBUTIONS:
Distributions from net investment income....................... (0.007) (0.019) (0.032)
----- ------ ------
Net Asset Value, end of period..................................... $1.00 $1.00 $1.00
===== ====== =====
TOTAL RETURN++....................................................... 0.73% 1.97% 3.25%
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net Assets, end of period (in 000's)............................... $19,645 $19,830 $25,485
Ratios of expenses to average net assets+........................... 0.57%** 0.56% 0.35%
Ratios of net investment income to average net assets.............. 1.78%** 1.94% 3.19%
- -------------------
* 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 redesignated
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
reimbursement of expenses by the investment manager and/or custodian
and/or transfer agent for the year ended June 30, 1994 and for the period
ended June 30, 1993 were $0.019 and $0.007, respectively.
+ Annualized expense ratios before voluntary waiver of fees and/or
reimbursement of expenses by the investment manager and/or custodian
and/or transfer agent for the year ended June 30, 1994 and for the period
ended June 30, 1993 would have been 0.64% and 0.62%, respectively.
++ Total return represents aggregate total return for the periods indicated.
# Prior to April 4, 1994, The Boston Company Advisors, Inc.
served as the Fund's investment manager. From April 4, 1994 through
October 16, 1994, Mellon Bank, N.A. served as the investment manager for
the Fund beginning April 4, 1994.
## Effective October 17, 1994, The Dreyfus Corporation began serving
as the Fund's investment manager.
</TABLE>
Page 8
<TABLE>
<CAPTION>
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH YEAR OR PERIOD.*
PERIOD YEAR
YEAR OR PERIOD ENDED NOVEMBER 30, ENDED ENDED
-------------------------------------------------- JUNE 30 JUNE 30,
1988 1989 1990 1991 1992 1993 1994# 1995##
---- ----- ----- ----- ----- ----- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
Income from investment operations:
Net Investment Income***..... 0.032 0.058 0.054 0.046 0.031 0.021 0.012 0.029
LESS DISTRIBUTIONS:
Dividends from net investment income... (0.032) (0.058) (0.054) (0.046) (0.031) (0.021) (0.012) (0.029)
Net asset value, end of period.... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== ===== ===== =====
TOTAL RETURN++............... 3.19% 5.90% 5.53% 4.65% 3.11% 2.15% 1.23% 2.95%
----- ----- ----- ----- ----- ----- ----- -----
RATIO TO AVERAGE NET ASSETS
SUPPLEMENTAL DATA:
Net assets, end of period (in 000's).. $8,929 $14,129 $16,870 $15,989 $11,183 $9,356 $8,011 $21,739
Ratio of expenses to average net assets... 0.65%** 0.32% 0.32% 0.32% 0.32% 0.31% 0.44%** 0.60%
Ratio of net investment income
to average net assets...... 4.33%** 5.73% 5.38% 4.58% 3.08% 2.13% 2.12%** 2.97%
- -----------
* 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 waiver of fees and reimbursement
of expenses by the investment manager 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
reimbursement of expenses by the investment manager 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 0.97%, 1.29%, 1.03%, 0.93%, 1.03%, 1.10%,
and 1.42%, 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 manager.
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 Corporations began serving
as the Fund's investment manager.
</TABLE>
Page 9
<TABLE>
<CAPTION>
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
PERIOD YEAR
PERIOD ENDED ENDED ENDED
NOVEMBER 30, JUNE 30, JUNE 30,
1993 1994# 1995##
------------ ------ ______
<S> <C> <C> <C>
Net asset value, beginning of period...................... $1.00 $1.00 $1.00
------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income***.......................... 0.018 0.013 0.031
LESS DISTRIBUTIONS:
Distributions from net investment income.................. (0.018) (0.013) (0.031)
------ ------ ------
Net asset value, end of period............................ $1.00 $1.00 $1.00
====== ===== =====
TOTAL RETURN++.............................................. 1.76% 1.32% 3.21%
------ ------ ------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's).............. $7,700 $5,459 $8,050
Ratio of expenses to average net assets+........... 0.26%** 0.28%** 0.35%
Ratio of net investment income to average net assets 2.12%** 2.27%** 3.22%
- -------------
* 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 redesignated
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
reimbursement of expenses by the investment manager 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
reimbursement of expenses by the investment manager 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 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 manager. 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>
DESCRIPTION OF THE FUNDS
RECENT DEVELOPMENTS
At a meeting of the Board of Trustees held on July 26, 1995, the
Board approved a new Investment Management Agreement (the "New Agreement")
between The Dreyfus/Laurel Tax-Free Municipal Funds, on behalf of
Dreyfus/Laurel California Tax-Free Money Fund and Dreyfus/Laurel New York
Tax-Free Money Fund and Dreyfus providing for a fee payable to Dreyfus at the
annual rate of .45 of 1% of each such Fund's average daily net assets. The
fee payable to Dreyfus under the New Agreement would represent an increase
of .10% from the fee currently paid to Dreyfus under the existing Investment
Management Agreement, although Dreyfus has agreed that it would limit its fee
to .35 of 1% of average daily net assets for one year following the change in
the management fee. In addition, under the New Agreement, certain transaction
charges would be payable to the transfer agent for the Dreyfus/Laurel
California Tax-Free Money Fund and Dreyfus/Laurel New York Tax-Free Money
Fund out of shareholder accounts in connection with shareholders utilizing
certain services. These transaction costs would include a $5 charge for
exchanges out of the Dreyfus/Laurel California Tax-Free Money Fund and
Dreyfus/Laurel New York Tax-Free Money Fund, wire redemptions, Dreyfus
TELETRANSFER redemptions, and closeouts of shareholder accounts and a $2
charge for redemption checks ("Shareholder Transaction Costs"). Dreyfus would
continue to be responsible for arranging and paying for administrative,
custody, fund accounting, and certain transfer agency services out of its
fee under the New Agreement. Shareholders of Dreyfus/Laurel California
Tax-Free Money Fund and Dreyfus/Laurel New York Tax-Free
Page 10
Money Fund, and of each Class of each such Fund, will be asked to approve the
New Agreement at meetings to be held on or about November 15, 1995 and, if
approved, the New Agreement would become effective on or about November 20,
1995 (the "California/New York Effective Date"). Shareholders of
Dreyfus/Laurel California Tax-Free Money Fund and Dreyfus/Laurel New York
Tax-Free Money Fund prior to the Effective Date would not be subject to the
Shareholder Transaction Costs.
The Board also approved certain other changes for Dreyfus/Laurel
California Tax-Free Money Fund and Dreyfus/Laurel New York Tax-Free Money
Fund which would allow these Funds to join Dreyfus' "BASIC" Family of Money
Funds, as described below, and which are contingent upon shareholders'
approval of the New Agreement. If shareholders approve the New Agreement,
these additional changes would become effective on the California/New York
Effective Date.
The Board approved eliminating the Distribution Plan for Investor
shares and converting each such Fund into a single class fund, as well as
eliminating the availability of certain shareholder service features,
including the Dreyfus Auto-Exchange Privilege, Dreyfus-AUTOMATIC Asset
Builder, Dreyfus Dividend Options, Dreyfus Government Direct Deposit
Privilege, Dreyfus Payroll Savings Plan and the Automatic Withdrawal Plan.
The Board also approved increasing Dreyfus/Laurel California Tax-Free Money
Fund and Dreyfus/Laurel New York Tax-Free Money Fund's minimum initial and
subsequent investment requirements from $2,500 to $25,000 and from $100 to
$1,000, respectively, and the minimum balance below which accounts may be
involuntarily redeemed by these Funds from $500 to $10,000. Shareholders of
Dreyfus/Laurel California Tax-Free Money Fund and Dreyfus/Laurel New York
Tax-Free Money Fund prior to the California/New York Effective Date would not
be subject to the increased minimums.
Finally, the Board approved changing the name of Dreyfus/Laurel
California Tax-Free Money Fund to "Dreyfus BASIC California Municipal Money
Market Fund" and Dreyfus/Laurel New York Tax-Free Money Fund to "Dreyfus
BASIC New York Municipal Money Market Fund," as of the California/New York
Effective Date.
At a meeting of the Board of Trustees of the Trust held on October
25, 1995, the Board approved an Agreement and Plan of Reorganization (the
"Plan") between the Trust, on behalf of Dreyfus/Laurel Massachusetts Tax-Free
Money Fund (the "Massachusetts Tax-Free Money Fund"), and Dreyfus
Massachusetts Municipal Money Market Fund (the "Acquiring Fund"), a fund with
an investment objective substantially similar to that of the Massachusetts
Tax-Free Money Fund, whereby (a) a portion of the Massachusetts Tax-Free
Money Fund's assets equal in value to the aggregate net asset value of the
interest in such Fund held by such Fund's Investor shareholders would be
transferred to the Acquiring Fund and the Massachusetts Tax-Free Money Fund's
Investor class would be terminated, and (b) Investor class shareholders of
the Massachusetts Tax-Free Money Fund would become shareholders of the
Acquiring Fund receiving in exchange for their Investor shares, shares of the
Acquiring Fund having an aggregate net asset value equal to the aggregate
value of the assets transferred to the Acquiring Fund. The Dreyfus
Corporation ("Dreyfus") has agreed to reduce its fee or reimburse the
Acquiring Fund to ensure that its total operating expenses for one year
following the closing of the reorganization contemplated by the Plan (the
"Reorganization") do not exceed .60 of 1% of average daily net assets.
Shareholders of the Massachusetts Tax-Free Money Fund, and of each Class of
such Fund, will be asked to approve the Plan at a meeting to be held on or
about February 15, 1996, and, if approved, the Reorganization will become
effective on or about February 22, 1996 the ("Massachusetts Effective Date").
Consummation of the Reorganization is not dependent upon approval by Class R
shareholders of the proposed New Investment Management Agreement, discussed
below.
At the October 25, 1995 Board meeting, the Board of Trustees of the
Trust also approved a new Massachusetts Agreement (a "Massachusetts
Agreement") between the Trust, on behalf of Massachusetts Tax-Free Money
Fund, and Dreyfus providing for a fee payable to Dreyfus at the annual rate
of .45 of 1% of such Fund's average daily net assets. The fee payable to
Dreyfus under the New
Page 11
Agreement would represent an increase of .10 of 1% from the fee currently
paid to Dreyfus under the existing Investment Management Agreement, although
Dreyfus has agreed that it would limit its fee to .35 of 1% of average daily
net assets for one year following the change in the management fee. In
addition, under the New Massachusetts Agreement certain transaction charges
would be payable to the Massachusetts Tax-Free Money Fund's transfer agent
out of shareholder accounts in connection with shareholders utilizing certain
services. These transaction costs would include a $5 charge for exchanges out
of the Massachusetts Tax-Free Money Fund, wire redemptions, Dreyfus
TELETRANSFER redemptions, and closeouts of shareholder accounts and a $2
charge for redemption checks ("Massachusetts Shareholder Transaction Costs").
Dreyfus would continue to be responsible for arranging and paying for
administrative, custody, fund accounting, and certain transfer agency services
out of its fee under the New Massachusetts Agreement. The proposed New
Massachusetts Agreement will be conditioned upon consummation of the
Reorganization, and thus would not affect Investor class
shareholders. Class R shareholders of the Massachusetts Tax-Free Money Fund
will be asked to approve the New Massachusetts Agreement at a meeting to be
held on or about February 15, 1996 and, if approved, the New Massachusetts
Agreement would become effective on the Massachusetts Effective Date. Class R
shareholders of the Massachusetts Tax-Free Money Fund prior to the Effective
Date would not be subject to the Massachusetts Shareholder Transaction Costs.
The Board also approved certain other changes for the Massachusetts
Tax-Free Money Fund which would allow the Fund to join Dreyfus' "BASIC"
Family of Money Funds, as described below and which are contingent upon
approval of Class R shareholders of the New Massachusetts Agreement. If Class
R shareholders approve the New Massachusetts Agreement, these additional
changes would become effective on the Massachusetts Effective Date.
The Board approved eliminating the availability of certain of the
Massachusetts Tax-Free Money Fund's shareholder service features, including
the Dreyfus Auto-Exchange Privilege, Dreyfus-AUTOMATIC Asset Builder, Dreyfus
Dividend Options, Dreyfus Government Direct Deposit Privilege, Dreyfus
Payroll Savings Plan and the Automatic Withdrawal Plan. The Board also
approved increasing the Massachusetts Tax-Free Money Fund's minimum initial
and subsequent investment requirements from $2,500 to $25,000 and from $100
to $1,000, respectively, the minimum balance below which accounts may be
involuntarily redeemed by the Fund from $500 to $10,000. Shareholders of the
Massachusetts Tax-Free Money Fund prior to the Massachusetts Effective Date
would not be subject to the increased minimums.
Finally, the Board approved changing the Massachusetts Tax-Free Money
Fund's name from Dreyfus/Laurel Massachusetts Tax-Free Money Fund to "Dreyfus
BASIC Massachusetts Municipal Money Market Fund", as of the Massachusetts
Effective Date.
A Proxy Statement/Prospectus, which will describe the above
proposals, as well as the Massachusetts Tax-Free Money Fund and other
matters, will be mailed to Massachusetts Tax-Free Money Fund shareholders
prior to the meeting currently scheduled for February 15, 1996.
GENERAL
By this Prospectus, each Fund is offering Investor shares and Class R
shares. (Class R shares of the Funds were formerly called Trust Shares.)
Investor shares and Class R shares are identical, except as to the services
offered to and the expenses borne by each Class. Class R shares are sold
primarily to Banks acting on behalf of customers having a qualified trust or
investment account or relationship at such institution, or to customers who
have received and hold shares of a Fund distributed to them by virtue of such
an account or relationship. Investor shares are sold primarily to retail
investors by the Distributor and by Agents that have entered into a Selling
Agreement with the Distributor. If shares of a Fund are held in an account at
a Bank or with an Agent, such Bank or Agent may require you to place all Fund
purchase, exchange and redemption orders through them. All Banks and Agents
have agreed to transmit transaction requests to each Fund's transfer agent or
to the Distributor. Distribution and shareholder
Page 12
servicing fees attributable to Investor shares will cause Investor shares to
have a higher expense ratio and pay lower dividends than Class R.
INVESTMENT OBJECTIVE AND POLICIES
Each Fund seeks to provide a higher level of current income exempt
from Federal income taxes and state personal income taxes for resident
shareholders of the named state to the extent consistent with the
preservation of capital and the maintenance of liquidity. Each Fund seeks to
achieve its objective by investing in debt obligations issued by the Fund's
respective state (e.g., California, Massachusetts or New York), and such
state's political subdivisions, municipalities, public authorities and in
municipal obligations issued by other governmental entities if, in the
opinion of counsel to the respective issuers, the interest from such
obligations is excluded from gross income for Federal income tax purposes and
is exempt from state personal income taxes for resident shareholders of the
named state ("Municipal Obligations").
Under normal market conditions, each Fund attempts to invest 100%,
and will invest a minimum of 80%, of its total assets in Municipal
Obligations of such Fund's named state. When, in the opinion of Dreyfus,
adverse market conditions exist for Municipal Obligations, and a "defensive"
investment posture is warranted, each Fund may temporarily invest more than
20% of its total assets in money market instruments having maturity and
quality characteristics comparable to those (discussed below) for Municipal
Obligations, but which produce income exempt from Federal but not the state
personal income taxes for resident shareholders of a Fund's named state, or
more than 20% of its total assets in taxable obligations (including
obligations the interest on which is included in the calculation of
alternative minimum tax for individuals). Periods when a defensive posture is
warranted include those periods when a Fund's monies available for investment
exceed the relevant state's Municipal Obligations available for purchase to
meet such Fund's rating, maturity and other investment criteria. Each Fund
does not anticipate that it will find it necessary to make any investments in
securities the interest from which is not exempt from Federal income and the
respective state personal income taxes. Each Fund's policy of investing a
minimum of 80% of its total assets in Municipal Obligations of such Fund's
named state is a fundamental policy of the Fund.
Each Fund seeks a high level of current income exempt from Federal
income taxes and from the state personal income taxes for resident
shareholders of the named state, to the extent consistent with the
preservation of capital and maintenance of liquidity. A Fund pursues these
objectives by investing in a varied portfolio of high quality, short-term
Municipal Obligations of such Fund's named state.
The Municipal Obligations purchased by the Funds consist of: (1)
municipal bonds; (2) municipal notes; and (3) municipal commercial paper. The
Funds will limit their portfolio investments to securities that, at the time
of acquisition, (i) are rated in the two highest categories by at least two
nationally recognized statistical rating organizations (or by one
organization if only one organization has rated the security), (ii) if not
rated, are obligations of an issuer whose other outstanding short-term debt
obligations are so rated, or (iii) if not rated, are of comparable quality,
as determined by Dreyfus in accordance with procedures established by the
Board of Trustees. The Funds will limit their investments to securities that
present minimal credit risk, as determined by Dreyfus under procedures
established by the Board of Trustees.
The Funds invest only in securities that have remaining maturities of
thirteen months or less at the date of purchase. Floating rate or variable
rate obligations (described below) which are payable on demand under
conditions established by the SEC, may have a stated maturity in excess of
thirteen months; these securities will be deemed to have remaining maturities
of thirteen months or less. Each Fund maintains a dollar-weighted average
portfolio maturity of 90 days or less and seeks to maintain a constant net ass
et value of $1.00 per share, although there is no assurance it can do so on a
continuing basis.
OTHER INVESTMENT POLICIES AND RISK FACTORS.
FLOATING RATE AND VARIABLE RATE OBLIGATIONS. The Funds may purchase
floating rate and variable rate obligations. These obligations bear interest
at rates that are not fixed, but vary with changes in speci-
Page 13
fied market rates or indices. Some of these obligations may carry a demand
feature that permits the Funds to receive the par value upon demand prior to
maturity. The Funds may invest in floating rate and variable rate obligations
carrying stated maturities in excess of thirteen months at the date of
purchase if these obligations carry demand features that comply with
conditions established by the SEC. The Funds will limit their purchases of
floating rate and variable rate Municipal Obligations to those meeting the
quality standards applicable to such Fund. Frequently, such obligations are
secured by letters of credit or other credit support arrangements provided by
banks. The quality of the underlying creditor or the bank, as determined by
Dreyfus under the supervision of the Trustees must also be equivalent to the
quality standards applicable to the Funds. In addition, Dreyfus monitors the
earning power, cash flow and other liquidity ratios of the issuers of such
obligations, as well as the creditworthiness of the institution responsible
for paying the principal amount of the obligations under the demand feature.
The Funds may invest in participation interests purchased from banks
in floating or variable rate Municipal Obligations owned by banks.
Participation interests carry a demand feature permitting the Funds to tender
them back to the bank. Each participation is backed by an irrevocable letter
of credit or guarantee of a bank which Dreyfus under the supervision of the
Trustees has determined meets the prescribed quality standards for the Funds.
Other types of tax-exempt instruments that may become available in
the future may be purchased by the Funds as long as Dreyfus believes the
quality of these instruments meets the Funds' quality standards.
OTHER INVESTMENT COMPANIES. Each Fund may invest in securities issued
by other investment companies to the extent that such investments are
consistent with its investment objective and policies and permissible under
the Investment Company Act of 1940 (the "1940 Act"), as amended. As a
shareholder of another investment company, the Fund would bear, along with
other shareholders, its pro rata portion of the other investment company's
expenses, including advisory fees. These expenses would be in addition to the
advisory and other expenses that the Fund bears directly in connection with
its own operations.
TENDER OPTION BONDS. Each Fund may invest up to 10% of the value of
its assets in tender option bonds. A tender option bond is a Municipal
Obligation (generally held pursuant to a custodial arrangement) having a
relatively long maturity and bearing interest at a fixed-rate substantially
higher than prevailing short-term tax-exempt rates, that has been coupled
with the agreement of a third party, such as a bank, broker-dealer or other
financial institution, pursuant to which such institution grants the security
holders the option, at periodic intervals, to tender their securities to the
institution and receive the face value thereof. As consideration for
providing the option, the financial institution receives periodic fees equal
to the difference between the Municipal Obligation's fixed coupon rate and
the rate, as determined by a remarketing or similar agent at or near the
commencement of such period, that would cause the securities, coupled with
the tender option, to trade at par on the date of such determination. Thus,
after payment of this fee, the security holder effectively holds a demand
obligation that bears interest at the prevailing short-term tax-exempt rate.
Dreyfus, on behalf of the Funds, will consider on an ongoing basis the
creditworthiness of the issuer of the underlying Municipal Obligation, of any
custodian and the third-party provider of the tender option. In certain
instances and for certain tender option bonds, the option may be terminable
in the event of a default in payment of principal or interest on the
underlying Municipal Obligations and for other reasons. Each Fund will not
invest more than 10% of the value of such Fund's net assets in illiquid
securities, which would include tender option bonds for which the required
notice to exercise the tender feature is more than seven days if there is no
secondary market available for these obligations.
WHEN-ISSUED SECURITIES. The Funds may purchase Municipal Obligations
on a "when-issued" basis (i.e., delivery of and payment for the Municipal
Obligations normally take place within 45 days after the date of the purchase
commitment). The payment obligation and the interest rate on such securities
are fixed at the time of the purchase commitment. Although the Funds
generally will purchase Municipal Obligations on a when-issued basis with the
intention of acquiring the securities, the Funds may sell such securities
Page 14
before the settlement date. Municipal Obligations purchased on a when-issued
basis, like other investments made by the Funds, may decline or appreciate in
value prior to their actual delivery to the Funds.
CERTAIN RISK CONSIDERATIONS REGARDING THE STATE OF CALIFORNIA. You
should consider carefully the special risks inherent in the Fund's investment
in California Municipal Obligations. These risks result from certain
amendments to the California Constitution and other statutes that limit the
taxing and spending authority of California governmental entities, as well as
from the general financial condition of the State of California. From mid-
1990 to late 1993, the State suffered a recession with the worst economic,
fiscal and budget conditions since the 1930s. As a result, the State has
experienced recurring budget deficits for four of the five fiscal years ended
1991-92. The State had an operating surplus of approximately $109 million in
1992-93 and $836 million in 1993-94. However, at June 1994, according to
California's Department of Finance, the State's Special Fund for Economic
Uncertainties has an accumulated deficit, on a budget basis, of approximately
$1.8 billion. A further consequence of the large budget imbalances has been
that the State depleted its available cash resources and has had to use a
series of external borrowings to meet its cash needs. To meet its cash flow
needs in the 1994-95 fiscal year, the State issued, in July and August 1994,
$4.0 billion of revenue anticipation warrants and $3.0 billion of revenue
anticipation notes. As a result of the deterioration in the State's budget
and cash situation between October 1991 and July 1994, the rating on the
State's general obligation bonds was reduced by S&P from AAA to A, by Moody's
from Aaa to A1 and by Fitch from AAA to A. These and other factors may have
the effect of impairing the ability of the issuers of California Municipal
Obligations to pay interest on, or repay principal of, such Municipal
Obligations. You should obtain and review a copy of the Statement of
Additional Information which more fully sets forth these and other risk
factors. Other considerations relating to a Fund's investments in California
Municipal Obligations are summarized in the SAI.
CERTAIN RISK CONSIDERATIONS REGARDING THE COMMONWEALTH OF
MASSACHUSETTS. You should consider carefully the special risks inherent in
the Fund's investment in Massachusetts Municipal Obligations. Massachusetts'
economic difficulties and fiscal problems in the late 1980s and early 1990s
caused several rating agencies to lower their ratings of Massachusetts
Municipal Obligations. A return of persistent serious financial difficulties
could adversely affect the market values and marketability of, or result in
default in payment on, outstanding Massachusetts Municipal Obligations.
Massachusetts' expenditures for State programs and services in each of the
fiscal years 1987 through 1991 exceeded each year's current revenues. The
budgeted operating funds of Massachusetts ended fiscal years 1992, 1993 and
1994, however, with an excess of revenues and other sources over expenditures
and other uses of $312.3 million, $13.1 million and $26.8 million,
respectively. Fiscal 1994 ended with positive budgeted operating fund
balances of $589.3 million. You should obtain and review a copy of the
Statement of Additional Information which more fully sets forth these and
other risk factors. Other considerations relating to the Fund's investment in
Massachusetts Municipal Obligations are summarized in the SAI.
CERTAIN RISK CONSIDERATIONS REGARDING THE STATE OF NEW YORK AND NEW
YORK CITY. You should consider carefully the special risks inherent in
investing in New York Municipal Obligations. These risks result from the
financial condition of New York State, certain of its public bodies and
municipalities, and New York City. Beginning in early 1975, New York State,
New York City and other State entities faced serious financial difficulties
which jeopardized the credit standing and impaired the borrowing abilities of
such entities and contributed to high interest rates on, and lower market
prices for, debt obligations issued by them. A recurrence of such financial
difficulties or a failure of certain financial recovery programs could result
in defaults or declines in the market values of various New York Municipal
Obligations in which each Fund may invest. If there should be a default or
other financial crisis relating to New York State, New York City, a State or
City agency, or a State municipality, the market value and marketability of
outstanding New York Municipal Obligations in a Fund's portfolio and the
interest income to the Fund could be adversely affected. Moreover, the
national recession
Page 15
and the significant slowdown in the New York and regional economies in the
early 1990s added substantial uncertainty to estimates of the State's tax
revenues, which, in part, caused the State to incur cash-basis operating
deficits in the General Fund and issue deficit notes during the fiscal
periods 1989 through 1992. The State's financial operations have improved,
however, during recent fiscal years. After reflecting a 1993 year-end deposit
to the refund reserve account of $671 million, reported 1993
General Fund receipts were $45 million higher than originally projected in
April 1992. The State completed the 1994 and 1995 fiscal years with operating
surpluses of $914 million and $158 million, respectively. There can be no
assurance that new York will not face substantial potential budget gaps in
future years. In January 1992, Moody's lowered from A to Baa1 the ratings on
certain appropriation-backed debt of New York State and its agencies. The
State's general obligation, state guaranteed and New York State Local
Government Assistance Corporation bonds continued to be rated A by Moody's.
In January 1992, S&P lowered from A to A- its ratings of New York State
general obligation bonds and stated that it continued to assess the ratings
outlook as negative. The ratings of various agency debt, state moral
obligations, contractual obligations, lease purchase obligations and state
guarantees also were lowered. In February 1991, Moody's lowered its rating on
new York City's general obligation bonds from A to Baa1 and in July 1995, S&P
lowered its rating on such bonds from A- to BBB+. The rating changes reflect
the rating agencies' concern about the financial condition of New York State
and City, the heavy debt load of the State and City, and economic
uncertainties in the region. You should obtain and review a copy of the
Statement of Additional Information which more fully sets forth these and
other risk factors. Other considerations relating to the Fund's investments
in New York Municipal Obligations are summarized in the SAI.
LIMITING INVESTMENT RISKS AND CERTAIN RISK CONSIDERATIONS. The Funds
are subject to a number of investment limitations. Certain limitations are
matters of fundamental policy and may not be changed without the affirmative
vote of the holders of a majority of a Fund's outstanding shares. The SAI
describes all of the Funds' fundamental and non-fundamental restrictions.
The investment objective, policies, restrictions, practices and
procedures of a Fund, unless otherwise specified, may be changed without
shareholder approval. If a Fund's investment objective, policies,
restrictions, practices or procedures change, shareholders should consider
whether such Fund remains an appropriate investment in light of their then
current position and needs.
In order to permit the sale of the Funds' shares in certain states,
the Funds may make commitments more restrictive than the investment policies
and restrictions described in this Prospectus and the SAI. Should a Fund
determine that any such commitment is no longer in the best interests of such
Fund, it may consider terminating sales of its shares in the states involved.
Each Fund is classified as a "non-diversified" investment company, as
defined under the 1940 Act, and therefore, each Fund could invest all of its
assets in the obligations of a single issuer or relatively few issuers.
However, the Funds intend to conduct their operations so that each Fund will
qualify under the Internal Revenue Code of 1986 (the "Code") as a "regulated
investment company". To continue to qualify, among other requirements, each
Fund will be required to limit its investments so that, at the close of each
quarter of the taxable year, with respect to at least 50% of its total
assets, not more than 5% of such assets will be invested in the securities of
a single issuer. In addition, not more than 25% of the value of each Fund's
total assets may be invested in the securities of a single issuer at the
close of each quarter of the taxable year. The provisions of the Code place
limits on the extent to which a Fund's portfolio may be non-diversified.
The ability of the Funds to meet their investment objectives is
subject to the ability of municipal issuers to meet their payment
obligations. In addition, the portfolio of each Fund will be affected by
general changes in interest rates which may result in increases or decreases
in the value of Fund hold-
Page 16
ings. Investors should recognize that, in periods of declining interest rates,
the yield of each Fund will tend to be somewhat higher than prevailing market
rates, and in periods of rising interest rates, the yield of each Fund will
tend to be somewhat lower. Also, when interest rates are falling, the influx
of new money to each Fund will likely be invested in portfolio instruments
producing lower yields than the balance of that Fund's portfolio, thereby
reducing the current yield of the Fund. In periods of rising interest rates,
the opposite can be expected to occur.
The Funds may invest without limit in Municipal Obligations which are
repayable out of revenue streams generated from economically related projects
or facilities or whose issuers are located in the same state. Sizable
investments in these obligations could increase risk to the Funds should any
of the related projects or facilities experience financial difficulties. To
the extent the Funds may invest in private activity bonds, each Fund may
invest only up to 5% of its total assets in bonds where payment of principal
and interest are the responsibility of a company with less than three years
operating history. Each Fund is authorized to borrow up to 10% of its total
assets for temporary or emergency purposes and to pledge its assets to the
same extent in connection with such borrowings.
MASTER/FEEDER OPTION. The Dreyfus/Laurel Tax-Free Municipal Funds may
in the future seek to achieve a Fund's investment objectives by investing all
of the Fund's assets in another investment company having the same investment
objectives and substantially the same investment policies and restrictions as
those applicable to such Fund. Shareholders of a Fund will be given at least
30 days' prior notice of any such investment. Such investment would be made
only if the Trustees determine it to be in the best interest of a Fund and
its shareholders. In making that determination, the Trustees will consider,
among other things, the benefits to shareholders and/or the opportunity to
reduce costs and achieve operational efficiencies. Although the Funds believe
that the Trustees will not approve an arrangement that is likely to result in
higher costs, no assurance is given that costs will be materially reduced if
this option is implemented.
MANAGEMENT OF THE FUNDS
INVESTMENT MANAGER. Dreyfus, located at 200 Park Avenue, New York,
New York 10166, was formed in 1947. Dreyfus is a wholly-owned subsidiary of
Mellon Bank, which is a wholly-owned subsidiary of Mellon Bank Corporation
("Mellon"). As of August 31, 1995, Dreyfus managed or administered
approximately $80 billion in assets for more than 1.8 million investor
accounts nationwide.
Dreyfus serves as the Funds' investment manager. Dreyfus supervises
and assists in the overall management of the Funds' affairs under an
Investment Management Agreement with the Funds, subject to the overall
authority of the Board of Trustees of The Dreyfus/Laurel Tax-Free Municipal
Funds in accordance with Massachusetts law. Pursuant to the Investment
Management Agreement, Dreyfus provides, or arranges for one or more third
parties to provide investment advisory, administrative, custody, fund
accounting and transfer agency services to the Funds. As the Funds'
investment manager, Dreyfus manages the Funds by making investment decisions
based on the Funds' investment objective, policies and restrictions.
Mellon is a publicly owned multibank holding company incorporated
under Pennsylvania law in 1971 and registered under the Bank Holding Company
Act of 1956, as amended. Mellon provides a comprehensive range of financial
products and services in domestic and selected international markets. Mellon
is among the twenty-five largest bank holding companies in the United States
based on total assets. Mellon's principal wholly-owned subsidiaries are
Mellon Bank, Mellon Bank (DE) National Association, Mellon Bank (MD), The
Boston Company, Inc., AFCO Credit Corporation and a number of companies known
as Mellon Financial Services Corporations. Through its subsidiaries,
including Dreyfus, Mellon managed approximately $203 billion in assets as of
June 30, 1995, including $73 bil-
Page 17
lion in mutual fund assets. As of June 30, 1995, Mellon, through various
subsidiaries, provided non-investment services, such as custodial or
administration services, for approximately $707 billion in assets, including
approximately $71 billion in mutual fund assets.
Under the Investment Management Agreement, each Fund pays a fee,
computed daily and paid monthly, at the annual rate of .35% of such Fund's
average daily net assets less certain expenses described below. Dreyfus pays
all of the expenses of a Fund except brokerage fees, taxes, interest, fees
and expenses of the non-interested Trustees (including counsel fees), Rule
12b-1 fees (if applicable) and extraordinary expenses. Although Dreyfus does
not pay for the fees and expenses of the non-interested Trustees (including
counsel fees), Dreyfus is contractually required to reduce its investment
management fee in an amount equal to a Fund's allocable share of such
expenses. In order to compensate Dreyfus for paying virtually all of a Fund's
expenses, each Fund's investment management fee is higher than the investment
advisory fees paid by most investment companies. Most, if not all, such
companies also pay for additional non-investment advisory expenses that are
not paid by such companies' investment adviser. From time to time, Dreyfus
may waive (either voluntarily or pursuant to applicable state limitations)
additional investment management fees payable by the Fund. From April 4, 1994
to October 17, 1994, the Funds were advised by Mellon Bank under the
Investment Management Agreement.
For the fiscal year ended June 30, 1995, each Fund paid Mellon Bank
or Dreyfus .35% of is average daily net assets in investment management fees,
less fees and expenses of the non-interested Trustees (including counsel
fees).
For the fiscal year ended June 30, 1995, total operating expenses
(excluding Rule 12b-1 fees) of each class of each Fund were 0.35% of the
Fund's average daily net assets.
In addition, Investor shares may be subject to certain distribution
and service fees. See "Distribution Plan (Investor Shares Only)."
Dreyfus may pay the Distributor for shareholder services from
Dreyfus' own assets, including past profits but not including the management
fee paid by the Funds. The Distributor may use part or all of such payments
to pay Agents in respect of these services.
Dreyfus is authorized to allocate purchase and sale orders for
portfolio securities to certain financial institutions, including, in the
case of agency transactions, financial institutions that are affiliated with
Dreyfus or Mellon Bank or that have sold shares of the Funds, if Dreyfus
believes that the quality of the transaction and the commission are
comparable to what they would be with other qualified brokerage firms. From
time to time, to the extent consistent with its investment objective, policies
and restrictions, the Funds may invest in securities of companies with which
Mellon Bank has a lending relationship.
The Funds' distributor is Premier Mutual Fund Services, Inc. (the
"Distributor"). The Distributor is located at One Exchange Place, Boston,
Massachusetts 02109. The Distributor is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holding Inc., the
parent company of which is Boston Institutional Group, Inc.
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT, AND
SUB-ADMINISTRATOR _ Mellon Bank (One Mellon Bank Center, Pittsburgh,
Pennsylvania 15258) is the Funds' custodian. The Funds' Transfer and Dividend
Disbursing Agent is The Shareholder Services Group, Inc. (the "Transfer
Agent"), a subsidiary of First Data Corporation, One American Express Plaza,
Providence, Rhode Island 02903. Premier Mutual Fund Services, Inc. is the
Funds' sub-administrator and, pursuant to a Sub-Administration Agreement with
Dreyfus, provides various administrative and corporate secretarial services
to the Funds.
Page 18
HOW TO BUY FUND SHARES
GENERAL_ Investor shares are offered to any investor and may be
purchased through the Distributor or Agents that have entered into Selling
Agreements with the Distributor.
Class R shares are sold primarily to Banks acting on behalf of
customers having a qualified trust or investment account or relationship at
such institution, or to customers who have received and hold shares of a Fund
distributed to them by virtue of such an account or relationship.
Stock certificates are issued only upon your written request. No
certificates are issued for fractional shares. The Funds reserve the right to
reject any purchase order.
The minimum initial investment is $2,500, or $1,000 if you are a
client of an Agent which has made an aggregate minimum initial purchase for
its customers of $2,500. Subsequent investments must be at least $100. The
initial investment must be accompanied by the Funds' Account Application. For
full-time or part-time employees of Dreyfus or any of its affiliates or
subsidiaries, directors of Dreyfus, board members of a fund advised by
Dreyfus including members of The Dreyfus/Laurel Tax-Free Municipal Funds'
board, or the spouse or minor child of any of the foregoing, the minimum
initial investment in $1,000. For full-time or part-time employees of Dreyfus
or any of its affiliates or subsidiaries who elect to have a portion of their
pay directly deposited into their Fund account, the minimum initial
investment is $50. The Funds reserve the right to vary further the initial
and subsequent investment minimum requirements at any time.
You may purchase shares of a Fund by check or wire, or through the
Dreyfus TELETRANSFER Privilege described below. Checks should be made payable
to "The Dreyfus Family of Funds." Payments to open new accounts which are
mailed should be sent to The Dreyfus Family of Funds, P.O. Box 9387,
Providence, Rhode Island 02940-9387, together with your Account Application
indicating which Class of shares is being purchased. For subsequent
investments, your Fund account number should appear on the check and an
investment slip should be enclosed and sent to The Dreyfus Family of Funds,
P.O. Box 105, Newark, New Jersey 07101-0105. Neither initial nor subsequent
investments should be made by third party check. Purchase orders may be
delivered in person only to a Dreyfus Financial Center. THESE ORDERS WILL BE
FORWARDED TO THE FUND AND WILL BE PROCESSED ONLY UPON RECEIPT THEREBY. For
the location of the nearest Dreyfus Financial Center, please call the
telephone number listed under "General Information."
Wire payments may be made if your bank account is in a commercial
bank that is a member of the Federal Reserve System or any other bank having
a correspondent bank in New York City. Immediately available funds may be
transmitted by wire to Boston Safe Deposit & Trust Co., together with the
applicable Class' DDA # as shown below, for purchase of Fund shares in your
name:
DDA# 043818 Dreyfus/Laurel California Tax-Free Money Fund/Investor
shares;
DDA# 043796 Dreyfus/Laurel California Tax-Free Money Fund/Class R
shares;
DDA# 043397 Dreyfus/Laurel Massachusetts Tax-Free Money Fund/Investor
shares;
DDA# 043389 Dreyfus/Laurel Massachusetts Tax-Free Money Fund/Class R
shares;
DDA# 043419 Dreyfus/Laurel New York Tax-Free Money Fund/Investor
shares;
DDA# 043400 Dreyfus/Laurel New York Tax-Free Money Fund/Class R
shares.
The wire must include your Fund account number (for new accounts, your
Taxpayer Identification Number ("TIN") should be included instead), account
registration and dealer number, if applicable. If your initial purchase of
Fund shares is by wire, you should call 1-800-645-6561 after completing your
wire payment in order to obtain your Fund account number. Please include your
Fund account number on the Funds' Account Application and promptly mail the
Account Application to the Fund, as no redemptions will be permitted until
the Account Application is received. You may obtain further information about
remitting funds in this manner from your bank. All payments should be made in
U.S. dollars and, to avoid fees and delays, should be drawn only on U.S.
banks. A charge will be imposed if any
Page 19
check used for investment in your account does not clear. The Funds make
available to certain large institutions the ability to issue purchase
instructions through compatible computer facilities.
Subsequent investments also may be made by electronic transfer of
funds from an account maintained in a bank or other domestic financial
institution that is an Automated Clearing House ("ACH") member. You must
direct the institution to transmit immediately available funds through the
ACH System to Boston Safe Deposit & Trust Co. with instructions to credit
your Fund account. The instructions must specify your Fund account
registration and Fund account number PRECEDED BY THE DIGITS
"4540" for Dreyfus/Laurel California Tax-Free Money Fund/Investor
shares;
"4530" for Dreyfus/Laurel California Tax-Free Money Fund/Class R
shares;
"4760" for Dreyfus/Laurel Massachusetts Tax-Free Money Fund/Investor
shares;
"4750" for Dreyfus/Laurel Massachusetts Tax-Free Money Fund/Class R
shares;
"4780" for Dreyfus/Laurel New York Tax-Free Money Fund/Investor
shares;
"4770" for Dreyfus/Laurel New York Tax-Free Money Fund/Class R
shares.
Federal regulations require that you provide a certified TIN upon
opening or reopening an account. See "Dividends, Other Distributions and
Taxes" and the Funds' Account Application for further information concerning
this requirement. Failure to furnish a certified TIN to the Funds could
subject you to a $50 penalty imposed by the Internal Revenue Service (the
"IRS").
An investment portfolio's net asset value ("NAV") refers to the worth
of one share. The NAV for Investor and Class R shares of a Fund is calculated
on the basis of amortized cost, which involves initially valuing a portfolio
instrument at its cost and thereafter 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. Each Fund intends to
maintain a constant NAV of $1.00, although there is no assurance that this
can be done on a continuing basis.
The offering price of shares of the Funds is their NAV. Investments
and requests to exchange or redeem shares received by a Fund before 4 p.m.,
Eastern time, on each day that the New York Stock Exchange is open (a
"business day") are effective on, and will receive the price next determined,
that business day. The NAV of a Fund is calculated two times each business
day, at 12 noon and 4 p.m., Eastern time. Investment, exchange or redemption
requests received after 4 p.m., Eastern time are effective on, and receive
the first share price determined, the next business day.
DREYFUS TELETRANSFER PRIVILEGE _ You may purchase shares of a Fund
(minimum $500 and maximum $150,000 per day) by telephone if you have checked
the appropriate box and supplied the necessary information on the Fund's
Account Application or have filed a Shareholder Services Form with the
Transfer Agent. The proceeds will be transferred between the bank account
designated in one of these documents and your Fund account. Only a bank
account maintained in a domestic financial institution which is an ACH member
may be so designated. A Fund may modify or terminate this Privilege at any
time or charge a service fee upon notice to shareholders. No such fee
currently is contemplated.
If you have selected the Dreyfus TELETRANSFER Privilege, you may
request a Dreyfus TELETRANSFER purchase of Fund shares by telephoning
1-800-221-4060 or, if calling from overseas, 1-401-455-3306.
SHAREHOLDER SERVICES
The services and privileges described under this heading may not be
available to clients of certain Agents and some Agents may impose certain
conditions on their clients which are different from those described in this
Prospectus. You should consult your Agent in this regard.
FUND EXCHANGES
You may purchase, in exchange for shares of a Class, shares of the
same class of certain other funds managed or administered by Dreyfus, to the
extent such shares are offered for sale in your state of residence. These
funds have different investment objectives which may be of interest to you.
If you
Page 20
desire to use this service, please call 1-800-645-6561 to determine if
it is available and whether any conditions are imposed on its use.
To request an exchange, you or your Agent acting on your behalf must
give exchange instructions to the Transfer Agent in writing or by telephone.
Before any exchange, you must obtain and should review a copy of the current
prospectus of the fund into which the exchange is being made. Prospectuses
may be obtained by calling 1-800-645-6561. The shares being exchanged must
have a current value of at least $500; furthermore, when establishing a new
account by exchange, the shares being exchanged must have a value of at least
the minimum initial investment required for the fund into which the exchange
is being made. The ability to issue exchange instructions by telephone is
given to all Fund shareholders automatically, unless you check the relevant
"No" box on the Account Application, indicating that you specifically refuse
this Privilege. The Telephone Exchange Privilege may be established for an
existing account by written request, signed by all shareholders on the
account, or by a separate Shareholder Services Form, also available by
calling 1-800-645-6561. If you previously have established the Telephone
Exchange Privilege, you may telephone exchange instructions by calling
1-800-221-4060 or, if calling from overseas, 1-401-455-3306. See "How to
Redeem Fund Shares_Procedures." Upon an exchange, the following shareholder
services and privileges, as applicable and where available, will be
automatically carried over to the fund into which the exchange is made:
Telephone Exchange Privilege, Check Redemption Privilege, Wire Redemption
Privilege, Telephone Redemption Privilege, Dreyfus TELETRANSFER Privilege and
the dividends and distributions payment option (except for Dividend Sweep)
selected by the investor.
Shares will be exchanged at the next determined NAV; however, a sales
load may be charged with respect to exchanges of Investor shares into funds
sold with a sales load. If you are exchanging Investor shares into a fund
that charges a sales load, you may qualify for share prices which do not
include the sales load or which reflect a reduced sales load, if the shares
of the fund from which you are exchanging were: (a) purchased with a sales
load, (b) acquired by a previous exchange from shares purchased with a sales
load, or (c) acquired through reinvestment of dividends or other
distributions paid with respect to the foregoing categories of shares. To
qualify, at the time of the exchange you must notify the Transfer Agent or
your Agent must notify the Distributor. Any such qualification is subject to
confirmation of your holdings through a check of appropriate records. See
"Shareholder Services" in the SAI. No fees currently are charged shareholders
directly in connection with exchanges, although the Fund reserves the right,
upon not less than 60 days' written notice, to charge shareholders a nominal
fee in accordance with rules promulgated by the SEC. The Funds reserve the
right to reject any exchange request in whole or in part. The availability of
fund exchanges may be modified or terminated at any time upon notice to
shareholders.
The exchange of shares of one fund for shares of another is treated
for Federal income tax purposes as a sale of the shares given in exchange by
the shareholder and, therefore, an exchanging shareholder may realize a
taxable gain or loss.
DREYFUS AUTO-EXCHANGE PRIVILEGE
Dreyfus Auto-Exchange Privilege enables you to invest regularly (on a
semi-monthly, monthly, quarterly or annual basis), in exchange for shares of
a Fund, in shares of the same class of certain other funds in the Dreyfus
Family of Funds of which you are currently an investor. The amount you
designate, which can be expressed either in terms of a specific dollar or
share amount ($100 minimum), will be exchanged automatically on the first
and/or fifteenth day of the month according to the schedule you have
selected. Shares will be exchanged at the then-current NAV; however a sales
load may be charged with respect to exchanges of Investor shares into funds
sold with a sales load. The right to exercise this Privilege may be modified
or canceled by the Funds or the Transfer Agent. You may modify or cancel your
exercise of this Privilege at any time by mailing written notification to The
Dreyfus Family of Funds, P.O. Box 9671, Providence, Rhode Island 02940-9671.
The Funds may charge a service fee for the use of this Privilege.
Page 21
No such fee currently is contemplated. The exchange of shares of one fund for
shares of another is treated for Federal income tax purposes as a sale of the
shares given in exchange by the shareholder and, therefore, an exchanging
shareholder may realize a taxable gain or loss. For more information
concerning this Privilege and the funds in the Dreyfus Family of Funds
eligible to participate in this Privilege, or to obtain a Dreyfus
Auto-Exchange Authorization Form, please call toll free 1-800-645-6561.
DREYFUS-AUTOMATIC ASSET BUILDER Registration Mark
Dreyfus-AUTOMATIC Asset Builder permits you to purchase shares of a
Fund (minimum of $100 and maximum of $150,000 per transaction) at regular
intervals selected by you. Shares of a Fund are purchased by transferring
funds from the bank account designated by you. At your option, the bank
account designated by you will be debited in the specified amount, and Fund
shares will be purchased, once a month, on either the first or fifteenth day,
or twice a month, on both days. Only an account maintained at a domestic
financial institution which is an ACH member may be so designated. To
establish a Dreyfus-AUTOMATIC Asset Builder account, you must file an
authorization form with the Transfer Agent. You may obtain the necessary
authorization form by calling 1-800-645-6561 from the Distributor. You may
cancel your participation in this Privilege or change the amount of purchase
at any time by mailing written notification to The Dreyfus Family of Funds,
P.O. Box 9671, Providence, Rhode Island 02940-9671 and the notification will
be effective three business days following receipt. The Funds may modify or
terminate this Privilege at any time or charge a service fee. No such fee
currently is contemplated.
DREYFUS DIVIDEND OPTIONS
Dreyfus Dividend Sweep enables you to invest automatically dividends
or dividends and capital gain distributions, if any, paid by a Fund in shares
of the same class of certain other funds in the Dreyfus Family of Funds of
which you are an investor. Shares of the other fund will be purchased at the
then-current NAV; however, a sales load may be charged with respect to
investments in shares of a fund sold with a sales load. If you are investing
in a fund that charges a sales load, you may qualify for share prices which
do not include the sales load or which reflect a reduced sales load. See
"Shareholder Services" in the SAI. Dreyfus Dividend ACH permits you to
transfer electronically on the payment date dividends or dividends and
capital gain distributions, if any, from a Fund to a designated bank account.
Only an account maintained at a domestic financial institution which is an
ACH member may be so designated. Banks may charge a fee for this service.
For more information concerning these privileges, or to request a
Dreyfus Dividend Options Form, please call toll free 1-800-645-6561. You may
cancel these privileges by mailing written notification to The Dreyfus Family
of Funds, P.O. Box 9671, Providence, Rhode Island 02940-9671. Enrollment in
or cancellation of these Privileges is effective three business days
following receipt. These Privileges are available only for existing accounts
and may not be used to open new accounts. Minimum subsequent investments do
not apply for Dreyfus Dividend Sweep. The Funds may modify or terminate these
Privileges at any time or charge a service fee. No such fee currently is
contemplated.
DREYFUS GOVERNMENT DIRECT DEPOSIT PRIVILEGE
Dreyfus Government Direct Deposit Privilege enables you to purchase
shares of a Fund (minimum of $100 and maximum of $50,000 per transaction) by
having Federal salary, Social Security, or certain veterans', military or
other payments from the Federal government automatically deposited into your
Fund account. You may deposit as much of such payments as you elect. To
enroll in Dreyfus Government Direct Deposit, you must file with the Transfer
Agent a completed Direct Deposit Sign-Up Form for each type of payment that
you desire to include in this Privilege. The appropriate form may be obtained
by calling 1-800-645-6561. Death or legal incapacity will terminate your
participation in this Privilege. You may elect at any time to terminate your
participation by notifying in writing the appropriate Federal agency.
Further, the Funds may terminate your participation upon 30 days' notice to
you.
Page 22
DREYFUS PAYROLL SAVINGS PLAN
Dreyfus Payroll Savings Plan permits you to purchase shares of a Fund
(minimum of $100 per transaction) automatically on a regular basis. Depending
upon the direct deposit program of your employer, you may have part or all of
your paycheck transferred to your existing Dreyfus account electronically
through the ACH system at each pay period. To establish a Dreyfus Payroll
Savings Plan account, you must file an authorization form with your
employer's payroll department. Your employer must complete the reverse side
of the form and return it to The Dreyfus Family of Funds, P.O. Box 9671,
Providence, Rhode Island 02940-9671. You may obtain the necessary
authorization form by calling 1-800-645-6561. You may change the amount of
purchase or cancel the authorization only by written notification to your
employer. It is the sole responsibility of your employer, not the
Distributor, Dreyfus, the Funds, the Transfer Agent nor any other person, to
arrange for transactions under the Dreyfus Payroll Savings Plan. The Funds
may modify or terminate this Privilege at any time or charge a service fee.
No such fee currently is contemplated.
AUTOMATIC WITHDRAWAL PLAN
The Automatic Withdrawal Plan permits you to request withdrawal of a
specified dollar amount (minimum of $50) on either a monthly or quarterly
basis if you have a $5,000 minimum account.
An application for the Automatic Withdrawal Plan can be obtained by
calling 1-800-645-6561. The Automatic Withdrawal Plan may be ended at any
time by the shareholder, the Fund or the Transfer Agent. Shares for which
certificates have been issued may not be redeemed through the Automatic
Withdrawal Plan.
HOW TO REDEEM FUND SHARES
GENERAL_You may request redemption of your shares at any time. Redemption
requests should be transmitted to the Transfer Agent as described below. When
a request is received in proper form, the Funds will redeem the shares at the
next determined NAV as described below. If you hold Fund shares of more than
one Class, any request for redemption must specify the Class of shares being
redeemed. If you fail to specify the Class of shares to be redeemed or if you
own fewer shares of the Class than specified to be redeemed, the redemption
request may be delayed until the Transfer Agent receives further instructions
from you or your Agent.
The Funds impose no charges when shares are redeemed directly through
the Distributor. Agents or other institutions may charge their clients a
nominal fee for effecting redemptions of Fund shares. Any certificates
representing Fund shares being redeemed must be submitted with the redemption
request. The value of the shares redeemed may be more or less than their
original cost, depending upon the Funds' then-current NAV.
The Funds ordinarily will make payment for all shares redeemed within
seven days after receipt by the Transfer Agent of a redemption request in
proper form, except as provided by the rules of the SEC. HOWEVER, IF YOU HAVE
PURCHASED FUND SHARES BY CHECK, BY THE DREYFUS TELETRANSFER PRIVILEGE OR
THROUGH DREYFUS-AUTOMATIC ASSET BUILDER AND SUBSEQUENTLY SUBMIT A WRITTEN
REDEMPTION REQUEST TO THE DREYFUS TRANSFER AGENT, THE REDEMPTION PROCEEDS
WILL BE TRANSMITTED TO YOU PROMPTLY UPON BANK CLEARANCE OF YOUR PURCHASE
CHECK, DREYFUS TELETRANSFER PURCHASE OR DREYFUS-AUTOMATIC ASSET BUILDER
ORDER, WHICH MAY TAKE UP TO EIGHT BUSINESS DAYS OR MORE. IN ADDITION, THE
FUNDS WILL NOT HONOR REDEMPTION CHECKS UNDER THE CHECK REDEMPTION PRIVILEGE,
AND WILL REJECT REQUESTS TO REDEEM SHARES BY WIRE OR TELEPHONE OR PURSUANT TO
THE DREYFUS TELETRANSFER PRIVILEGE FOR A PERIOD OF EIGHT BUSINESS DAYS AFTER
RECEIPT BY THE TRANSFER AGENT OF THE PURCHASE CHECK, THE DREYFUS TELETRANSFER
PURCHASE OR THE DREYFUS-AUTOMATIC ASSET BUILDER ORDER AGAINST WHICH SUCH
REDEMPTION IS REQUESTED. THESE PROCEDURES WILL NOT APPLY IF YOUR SHARES WERE
PURCHASED BY WIRE PAYMENT, OR IF YOU OTHERWISE HAVE A SUFFICIENT COLLECTED
BALANCE IN YOUR ACCOUNT TO COVER THE REDEMPTION REQUEST. PRIOR TO THE
Page 23
TIME ANY REDEMPTION IS EFFECTIVE, DIVIDENDS ON SUCH SHARES WILL ACCRUE AND BE
PAYABLE, AND YOU WILL BE ENTITLED TO EXERCISE ALL OTHER RIGHTS OF BENEFICIAL
OWNERSHIP. Fund shares will not be redeemed until the Transfer Agent has
received your Account Application.
Each Fund reserves the right to redeem your account at its option
upon not less than 45 days' written notice if the net asset value of your
account is $500 or less and remains so during the notice period.
PROCEDURES_You may redeem shares of a Fund by using the regular
redemption procedure through the Transfer Agent, the Check Redemption
Privilege, the Wire Redemption Privilege, the Telephone Redemption Privilege
or through the Dreyfus TELETRANSFER Privilege. Other redemption procedures
may be in effect for clients of certain Agents and institutions. The Funds
make available to certain large institutions the ability to issue redemption
instructions through compatible computer facilities.
You may redeem shares of a Fund by telephone if you have checked the
appropriate box on the Funds' Account Application or have filed a Shareholder
Services Form with the Transfer Agent. If you select a telephone redemption
privilege or Telephone Exchange Privilege (which is granted automatically
unless you refuse it), you authorize the Transfer Agent to act on telephone
instructions from any person representing himself or herself to be you, or a
representative of your Agent, and reasonably believed by the Transfer Agent
to be genuine. The Funds will require the Transfer Agent to employ reasonable
procedures, such as requiring a form of personal identification, to confirm
that instructions are genuine and, if it does not follow such procedures, the
Funds or the Transfer Agent may be liable for any losses due to unauthorized
or fraudulent instructions. Neither the Funds nor the Transfer Agent will be
liable for following telephone instructions reasonably believed to be
genuine.
During times of drastic economic or market conditions, you may
experience difficulty in contacting the Transfer Agent by telephone to
request a redemption or an exchange of Fund shares. In such cases, you should
consider using the other redemption procedures described herein. Use of these
other redemption procedures may result in your redemption request being
processed at a later time than it would have been if telephone redemption had
been used.
REGULAR REDEMPTION. Under the regular redemption procedure, you may
redeem your shares by written request mailed to The Dreyfus Family of Funds,
P.O. Box 9671, Providence, Rhode Island 02940-9671. Redemption requests may
be delivered in person only to a Dreyfus Financial Center. THESE REQUESTS
WILL BE FORWARDED TO THE FUND AND WILL BE PROCESSED ONLY UPON RECEIPT
THEREBY. For the location of the nearest financial center, please call the
telephone number listed under "General Information." Redemption requests must
be signed by each shareholder, including each owner of a joint account, and
each signature must be guaranteed. The Transfer Agent has adopted standards
and procedures pursuant to which signature-guarantees in proper form
generally will be accepted from domestic banks, brokers, dealers, credit
unions, national securities exchanges, registered securities associations,
clearing agencies and savings associations, as well as from participants in
the New York Stock Exchange Medallion Signature Program, the Securities
Transfer Agents Medallion Program ("STAMP"), and the Stock Exchanges
Medallion Program. For more information with respect to signature-guarantees,
please call the telephone number listed under "General Information."
Redemption proceeds of at least $1,000 will be wired to any member
bank of the Federal Reserve System in accordance with a written
signature-guaranteed request.
CHECK REDEMPTION PRIVILEGE _ You may request on the Account
Application, Shareholder Services Form or by later written request that a
Fund provide Redemption Checks drawn on the Fund's account. Redemption Checks
may be made payable to the order of any person in the amount of $500 or more.
Redemption Checks should not be used to close your account. Redemption
Checks are free, but the Transfer Agent will impose a fee for stopping
payment of a Redemption Check upon your request or if the Transfer Agent
cannot honor the Redemption Check due to insufficient funds or other valid
reason. You should date your Redemption Checks with the current date when you
write them. Please do not
Page 24
postdate your Redemption Checks. If you do, the Transfer Agent will honor,
upon presentment, even if presented before the date of the check, all
postdated Redemption Checks which are dated within six months of presentment
for payment, if they are otherwise in good order. Shares for which
certificates have been issued may not be redeemed by Redemption Check. This
Privilege may be modified or terminated at any time by the Funds or the
Transfer Agent upon notice to shareholders.
WIRE REDEMPTION PRIVILEGE. You may request by wire or telephone that
redemption proceeds (minimum $1,000) be wired to your account at a bank which
is a member of the Federal Reserve System, or a correspondent bank if your
bank is not a member. To establish the Wire Redemption Privilege, you must
check the appropriate box and supply the necessary information on the Funds'
Account Application or file a Shareholder Services Form with the Transfer
Agent. You may direct that redemption proceeds be paid by check (maximum
$150,000 per day) made out to the owners of record and mailed to your
address. Redemption proceeds of less than $1,000 will be paid automatically
by check. Holders of jointly registered Fund or bank accounts may have
redemption proceeds of only up to $250,000 wired within any 30-day period.
You may telephone redemption requests by calling 1-800-221-4060 or, if
calling from overseas, 1-401-455-3306. The Funds reserve the right to refuse
any redemption request, including requests made shortly after a change of
address, and may limit the amount involved or the number of such requests.
This Privilege may be modified or terminated at any time by the Transfer
Agent or the Funds. The Funds' SAI sets forth instructions for transmitting
redemption requests by wire. Shares for which certificates have been issued
are not eligible for this Privilege.
TELEPHONE REDEMPTION PRIVILEGE. You may redeem shares of a Fund
(maximum $150,000 per day) by telephone if you checked the appropriate box on
the Funds' Account Application or have filed a Shareholder Services Form with
the Transfer Agent. The redemption proceeds will be paid by check and mailed
to your address. You may telephone redemption instructions by calling
1-800-221-4060 or, if calling from overseas, 1-401-455-3306. The Funds
reserve the right to refuse any request made by telephone, including requests
made shortly after a change of address, and may limit the amount involved or
the number of such requests. This Privilege may be modified or terminated at
any time by the Transfer Agent or the Funds. Shares for which certificates
have been issued are not eligible for this Privilege.
DREYFUS TELETRANSFER PRIVILEGE. You may redeem shares of a Fund
(minimum $500 per day) by telephone if you have checked the appropriate box
and supplied the necessary information on the Funds' Account Application or
have filed a Shareholder Services Form with the Transfer Agent. The proceeds
will be transferred between your Fund account and the bank account designated
in one of these documents. Only such an account maintained in a domestic
financial institution which is an ACH member may be so designated. Redemption
proceeds will be on deposit in your account at an ACH member bank ordinarily
two days after receipt of the redemption request or, at your request, paid by
check (maximum $150,000 per day) and mailed to your address. Holders of
jointly registered Fund or bank accounts may redeem through the Dreyfus
TELETRANSFER Privilege for transfer to their bank account only up to $250,000
within any 30-day period. The Funds reserve the right to refuse any request
made by telephone, including requests made shortly after a change of address,
and may limit the amount involved or the number of such requests. The Funds
may modify or terminate this Privilege at any time or charge a service fee
upon notice to shareholders.
If you have selected the Dreyfus TELETRANSFER Privilege, you may
request a Dreyfus TELETRANSFER redemption of Fund shares by telephoning
1-800-221-4060 or, if calling from overseas, 1-401-455-3306. Shares
issued in certificate form are not eligible for this Privilege.
DISTRIBUTION PLAN (INVESTOR SHARES ONLY)
DISTRIBUTION PLAN_INVESTOR CLASS_Investor shares are subject to a
Distribution Plan adopted pursuant to Rule 12b-1 under the 1940 Act ("Rule
12b-1"). The Investor shares of each Fund bear
Page 25
some of the cost of selling these Shares under the Distribution Plan (the
"Plan"). The Plan allows a Fund to spend annually up to 0.25% of its average
daily net assets attributable to Investor shares to compensate Dreyfus Service
Corporation, an affiliate of Dreyfus, for shareholder servicing activities
and Premier for shareholder servicing activities and for activities or
expenses primarily intended to result in the sale of Investor shares of a
Fund. The Plan allows Premier to make payments from the Rule 12b-1 fees it
collects from a Fund to compensate Agents that have entered into Selling
Agreements ("Agreements") with Premier. Under the Agreements, the Agents are
obligated to provide distribution related services with regard to a Fund
and/or shareholder services to the Agent's clients that own Investor shares
of a Fund.
Potential investors should read this Prospectus in light of the terms
governing Agreements with their Agents. An Agent entitled to receive
compensation for selling and servicing a Fund's shares may receive different
compensation with respect to one class of shares over another.
The Funds and Premier may suspend or reduce payments under the Plan
at any time, and payments are subject to the continuation of the Funds' Plan
and the Agreements described above. From time to time, the Agents, Premier
and the Funds may agree to voluntarily reduce the maximum fees payable under
the Plan. See the SAI for more details on the Plan.
PERFORMANCE INFORMATION
From time to time, a Fund may advertise the yield and tax-equivalent
yield on a class of shares. YIELD AND TAX-EQUIVALENT YIELD FIGURES ARE BASED
ON HISTORICAL EARNINGS AND ARE NOT INTENDED TO INDICATE FUTURE PERFORMANCE.
The "yield" of a class of shares of a Fund refers to the income
generated by an investment in such class over a seven-day period identified
in the advertisement. This income is then "annualized." That is, the amount
of income generated by the investment during that week is assumed to be
generated each week over a 52-week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly, but, when
annualized, the income earned by an investment in a class of shares in a Fund
is assumed to be reinvested. The "effective yield" will be slightly higher
than the "yield" because of the compounding effect of this assumed
reinvestment. Since yields fluctuate, yield data cannot necessarily be used
to compare an investment in a class of shares with bank deposits, savings
accounts, and similar investment alternatives which often provide an
agreed-upon or guaranteed fixed yield for a stated period of time. The
tax-equivalent yield of a Fund shows the level of taxable yield needed to
produce an after-tax equivalent to such Fund's tax-free yield. This is done
by increasing a class' yield by the amount necessary to reflect the payment
of federal income tax (and state income tax, if applicable) at a stated tax
rate.
Yield quotations will be computed separately for each class of a
Fund's shares. Because of the difference in the fees and expenses borne by
Class R shares of a Fund and Investor shares of a Fund, the yield on Class R
shares will generally be higher than the yield on Investor shares. Any fees
charged by a Bank or Agent directly to its customers' account in connection
with investments in a Fund will not be included in calculations of total
return or yield.
A Fund may compare the performance of its Investor and Class R shares
with various industry standards of performance including Lipper Analytical
Services, Inc. ratings. Performance rankings as reported in CHANGING TIMES,
BUSINESS WEEK, INSTITUTIONAL INVESTOR, THE WALL STREET JOURNAL,
IBC/DONOGHUE'S MONEY FUND REPORT, MUTUAL FUND FORECASTER, NO LOAD INVESTOR,
MONEY MAGAZINE, MORNINGSTAR MUTUAL FUND VALUES, U.S. NEWS AND WORLD REPORT,
FORBES, FORTUNE, BARRON'S and similar publications may also be used in
comparing a Fund's performance. Furthermore, a Fund may quote its Investor
and Class R shares' yields in advertisements or in shareholder reports.
Page 26
DIVIDENDS, OTHER DISTRIBUTIONS AND TAXES
Each Fund declares daily and pays monthly (on the first business day
of the following month) dividends from its net investment income, if any, and
distributes any net long-term capital gains on an annual basis. The Board of
Trustees may elect not to distribute capital gains in whole or in part to
take advantage of capital loss carryovers.
Unless you choose to receive dividend and/or capital gain
distributions in cash, your distributions will be automatically reinvested in
additional Shares of the distributing Fund at the NAV. You may change the
method of receiving distributions at any time by writing to the Funds. Checks
which are sent to shareholders who have requested distributions to be paid in
cash and which are subsequently returned by the United States Postal Service
as not deliverable or which remain uncashed for six months or more will be
reinvested in additional Fund shares in the shareholder's account at the then
current NAV. Subsequent Fund distributions will be automatically reinvested
in additional Fund shares in the shareholder's account.
Distributions paid by a Fund with respect to one class of shares may
be greater or less per share than those paid with respect to another class of
shares due to the different expenses of the different classes.
Shares purchased on a day on which a Fund calculates its NAV will not
begin to accrue dividends until the following business day. Except as
provided below, redemption orders effected on any particular day will receive
all dividends declared through the day of redemption. However, if immediately
available funds are received by the Transfer Agent prior to 12:00 noon,
Eastern time, you may receive the dividend declared on the day of purchase.
You will not receive the dividends declared on the day of redemption if the
redemption order is placed prior to 12:00 noon, Eastern time.
Each Fund intends to qualify for treatment as a regulated investment
company under the Code so that it will be relieved of Federal income tax on
that part of its investment company taxable income (consisting generally of
taxable net investment income and net short-term capital gain) and net
capital gain (the excess of net long-term capital gain over net short-term
capital loss) that is distributed to its shareholders. In addition, each Fund
intends to continue to qualify to pay "exempt-interest" dividends, which
requires, among other things, that at the close of each quarter of its
taxable year at least 50% of the value of its total assets must consist of
municipal securities.
Dividends from a Fund's investment company taxable income are taxable
to you as ordinary income, to the extent of the Fund's earnings and profits.
Distributions by each Fund that are designated by it as "exempt-interest
dividends" generally may be excluded by you from your gross income.
Distributions by a Fund of net capital gain, when designated as such, are
taxable to you as long-term capital gains, regardless of the length of time
you have owned your shares.
Interest on indebtedness incurred or continued to purchase or carry
shares of a Fund will not be deductible for Federal income tax purposes to
the extent that a Fund's distributions (other than capital gains
distributions) consist of exempt-interest dividends. A Fund may invest in
"private activity bonds," the interest on which is treated as a tax
preference item for shareholders in determining their liability for the
alternative minimum tax. Proposals may be introduced before Congress for the
purpose of restricting or eliminating the Federal income tax exemption for
interest on municipal securities. If such a proposal were enacted, the
availability of such securities for investment by a Fund and the value of its
portfolio would be affected. In such event, each Fund would reevaluate its
investment objective and policies.
Dividends and other distributions are taxable to you regardless of
whether they are received in cash or reinvested in additional Fund shares,
even if the value of your shares is below your cost. If you purchase shares
shortly before a taxable distribution (i.e., any distribution other than an
exempt-interest dividend paid by a Fund), you must pay income taxes on the
distribution, even though the value of your investment (plus cash received,
if any) remains the same. In addition, the share price at the time you
Page 27
purchase shares may include unrealized gains in the securities held in a
Fund. If these portfolio securities are subsequently sold and the gains are
realized, they will, to the extent not offset by capital losses, be paid to
you as a capital gain distribution and will be taxable to you.
In January of each year, the Funds will send you a Form 1099-DIV
notifying you of the status for Federal income tax purposes of your
distributions for the preceding year. The Funds also will advise shareholders
of the percentage, if any, of the dividends paid by a Fund that are exempt
from Federal income tax and the portion, if any, of those dividends that is a
tax preference item for purposes of the alternative minimum tax.
You must furnish the Funds with your taxpayer identification number
("TIN") and state whether you are subject to withholding for prior
under-reporting, certified under penalties of perjury as prescribed by the
Code and the regulations thereunder. Unless previously furnished, investments
received without such a certification will be returned. Each Fund is required
to withhold a portion of all dividends, capital gain distributions and redempt
ion proceeds payable to any individuals and certain other non-corporate
shareholders who do not provide the Fund with a correct TIN; withholding from
dividends and capital gain distributions also is required for such
shareholders who otherwise are subject to backup withholding.
In addition, in order to avoid the application of a 4% nondeductible
excise tax on certain undistributed amounts of ordinary income and capital
gains, each Fund may make an additional distribution shortly before December
31 in each year of any undistributed ordinary (taxable) income or capital
gains and expects to pay any other dividends and distributions necessary to
avoid the application of this tax.
The foregoing is only a summary of some of the important tax
considerations generally affecting each Fund and its shareholders; see the
SAI for a further discussion. There may be other federal, state or local tax
considerations applicable to a particular investor; for example, each Fund's
dividends may be wholly or partly taxable under state and/or local laws. You
therefore are urged to consult your own tax adviser.
GENERAL INFORMATION
The Dreyfus/Laurel Tax-Free Municipal Funds offers shares of
beneficial interest of separate investment portfolios without par value (each
a "fund"). The Boston Company Tax-Free Municipal Funds was organized as a
Massachusetts business trust under the laws of The Commonwealth of
Massachusetts on March 28, 1983, changed its name to the Laurel Tax-Free
Municipal Funds, and changed its name again to The Dreyfus/Laurel Tax-Free
Municipal Funds on October 17, 1994. The Dreyfus/Laurel Tax-Free Municipal
Funds is registered with the SEC as an open-end management investment
company, commonly known as a mutual fund. The Trustees have authorized shares
of each Fund to be issued in two Classes_Investor and Class R.
Each share (regardless of class) has one vote. All shares of all
funds (and classes thereof) vote together as a single class, except as to any
matter for which a separate vote of any fund or class is required by the 1940
Act, and except as to any matter which affects the interests of one or more
particular funds or classes, in which case only the shareholders of the
affected funds or classes are entitled to vote, each as a separate class.
Only holders of Investor shares will be entitled to vote on matters submitted
to shareholders pertaining to the Distribution Plan relating to that Class.
Unless otherwise required by the 1940 Act, ordinarily it will not be
necessary for the Funds to hold annual meetings of shareholders. As a result,
Fund shareholders may not consider each year the election of Trustees or the
appointment of auditors. However, pursuant to the Funds' By-Laws, the holders
of at least 10% of the shares outstanding and entitled to vote may require
the Funds to hold a special meeting of shareholders for purposes of removing
a Trustee from office and for any other purpose. Fund shareholders may remove
a Trustee by the affirmative vote of two-thirds of the Dreyfus/Laurel
Tax-Free Municipal Funds' outstanding voting shares. In addition, the Board
of Trustees will call a meeting of shareholders for
Page 28
the purpose of electing Trustees if, at any time, less than a majority of the
Trustees then holding office have been elected by shareholders.
The Transfer Agent maintains a record of your ownership and will send
you confirmations and statements of account.
Shareholder inquiries may be made by writing to the Funds at 144 Glenn
Curtiss Boulevard, Uniondale, New York 11556-0144, or by calling toll free
1-800-645-6561.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND IN THE
FUNDS' OFFICIAL SALES LITERATURE IN CONNECTION WITH THE OFFER OF THE FUNDS'
SHARES, AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST
NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUNDS. THIS PROSPECTUS
DOES NOT CONSTITUTE AN OFFER IN ANY STATE IN WHICH, OR TO ANY PERSON TO WHOM,
SUCH OFFERING MAY NOT LAWFULLY BE MADE.
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DREYFUS
Dreyfus/Laurel California Tax-Free Money Fund
Dreyfus/Laurel Massachusetts Tax-Free Money Fund
Dreyfus/Laurel New York Tax-Free Money Fund
Prospectus
(LION LOGO)
Copy Rights 1995 Dreyfus Service Corporation
LSTTFMp2103195
Registration Mark
