YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of the Dreyfus Premier Limited Term
Massachusetts Municipal Fund for its semi-annual reporting period ended December
31, 1998, as shown in the following table:
Annualized
Approximate Distribution Rate
Total Return* Income Dividends** Per Share***
___________ _____________________ _________________
<S> <C> <C> <C>
Class A 3.37% $0.258 3.97%
Class B 3.10% $0.226 3.58%
Class C 3.18% $0.226 3.58%
Class R 3.50% $0.273 4.34%
</TABLE>
The Economy
During the last six months of 1998, the main regions of the world had very
different economic fundamentals. The U.S. continued to enjoy a strong economy
near full employment, with unemployment only slightly above 4%. World economic
weakness generated powerful enough disinflationary forces that the Federal
Reserve Board (the "Fed") acted instead to ease credit beginning in September.
After many years of subpar economic growth, continental Europe moved into a
sustained economic expansion. The overall European economy benefited as interest
rates in peripheral countries such as Spain and Italy fell, approaching the
lower levels established by Germany, on the eve of currency unification. Unlike
the U.S., Europe has substantial excess capacity of productive plant and labor.
In Asia, weak economies were pervasive as a result of a financial crisis. The
Latin American economies weakened in turn as the financial stresses spread
throughout that region. On balance, there was a substantial weakening of the
world economy over the period moderated mainly by the American consumer's role
as "spender of last resort."
A main influence on the U.S. economy was the foreign financial crisis and
consequent cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The fall
in inflation left more of the growth in consumer income with which to buy goods
and services. Thus, consumers benefited from a combination of good growth in
income after inflation, a strong labor market, and increases in the prices of
assets they owned, including bonds, stocks and real estate. In a sense, 1998 was
a year of disinflationary boom in the U.S., as above-trend economic growth
coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long-Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis from Japan, emerging
market countries and overextended financial institutions. Excess capacity
persists in many worldwide industries after years of high capital spending
followed by the onset of a worldwide weakening in demand. Fortunately, the U.S.
has led the world in making the transition away from the old manufacturing
industries to the new growth industries, such as biotechnology, software,
computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relax.
Market Environment/Portfolio Activity
As Treasury prices escalated in the face of global financial turmoil,
municipal bond prices lagged the advances in Treasury securities during the
second half of 1998. The total return on the 10-year Treasury was 8.26% compared
to 4.10% for the Lehman Brothers 10-year Municipal Bond Index. The impact of
this underperformance was most evident in the 20- to 30-year sector where the
relative yield ratio between AAA-rated municipal bonds and Treasury securities
reached 98% in October. Historically, municipal bonds yielding 80% to 85% of the
yields of Treasury securities indicated attractive relative value. By the end of
the reporting period, this ratio was at 95%.
There was a heavy volume of newly issued securities in the municipal
marketplace. A total of $284 billion in bonds was issued in 1998, just $8
billion less than in the record-breaking year of 1993, and far outpacing the
$230 billion issued in 1997. The sizeable new issue calendar, combined with
global events, made for occasional volatile trading sessions.
We believe that the environment for municipal bonds still appears to be
positive. The dollar value of new issues in 1999 will likely be less than in
1998; early estimates indicate levels of new supply at $225 billion. A
continuation of the favorable comparison of municipal yields vis-a-vis Treasury
yields, combined with the built-in tax advantages of municipal bonds, should
continue to command buyers' attention.
In the Commonwealth of Massachusetts, good economic growth and sound
financial management led to credit-rating upgrades by both Standard & Poor's and
Fitch IBCA (from A+ to AA-). Job growth continued to outpace that of the nation,
unemployment was low, and wealth and income levels remained high. For the
seventh consecutive year, fiscal 1998 ended with a surplus, this time more than
$800 million. Fiscal 1998 tax collections were 9% above the 1997 level.
Liquidity has improved and the combined general fund and stabilization reserve
fund balances total $1.2 billion or 6% of revenues. The Commonwealth did not use
short-term borrowing for operations in either fiscal 1997 or 1998. Contributing
further to the enhanced credit environment was a 1998 court ruling against a
petition to eliminate tolls on the Massachusetts Turnpike.
Some fiscal issues may bring adverse pressure on the Commonwealth's credit
condition. Reductions in income and investment taxes, while positive from a
competitive standpoint, will cost about $492 million annually. Additionally,
there is uncertainty concerning the amount of Federal funding for the $10.8
billion Central Artery/Tunnel Project. Furthermore, the Commonwealth has
estimated that it will issue $5 billion in general obligation bonds over the
next five years, which will push its already high debt to levels at or near the
highest in the nation. Nevertheless, we believe that economic and fiscal
fundamentals remain strong for continued stability.
The Fund maintained a bias towards a declining interest rate environment.
Correspondingly, the Fund' s weighted-average maturity was opportunistically
extended from 7.5 years to 8.0 years at the end of the reporting period. The
Fund continues to emphasize premium coupon issues and high credit quality
securities.
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope they are informative. Please know
that we appreciate greatly your continued confidence in the Fund and in The
Dreyfus Corporation.
Very truly yours,
[Kristin Lindquist signature]
Kristin Lindquist
Portfolio Manager
January 15, 1999
New York, N. Y.
*Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
**Income dividends per share were exempt from Federal and Commonwealth of
Massachusetts personal income taxes. Some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders.
*** Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized) , divided by the maximum
offering price per share at the end of the period in the case of Class A shares,
or the net asset value per share in the case of Class B, Class C and Class R
shares, adjusted for capital gain distributions.
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--96.2% Amount Value
- ------------------------------------------------------- ____________ ___________
Massachusetts--89.4%
<S> <C> <C>
Amherst 6%, 1/15/2003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 $ 216,374
Amherst-Pelham Regional School District 5.50%, 5/15/2003 (Insured; AMBAC). . . . . . . . . 1,000,000 1,073,660
Andover 6%, 1/15/2003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 788,655
Belmont 5.50%, 1/15/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585,000 635,053
Boston:
5.25%, 10/1/2004 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,142,000
5%, 11/1/2005 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,062,170
Boston Water and Sewer Commission, Revenue 9.25%, 1/1/2011 . . . . . . . . . . . . . . . . 100,000 142,816
Burlington:
5.25%, 2/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 215,402
5.25%, 2/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 268,147
Cambridge:
6.60%, 6/15/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675,000 706,853
Municipal Purpose Loan 5.60%, 11/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . 500,000 528,410
Cohasset, Municipal Purpose Loan, 6.90%, 11/1/2000 (Insured; MBIA) . . . . . . . . . . . . 150,000 159,526
Easton, Municipal Purpose Loan 6%, 9/15/2006 . . . . . . . . . . . . . . . . . . . . . . . 105,000 113,673
Franklin 6.25%, 11/15/2005 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 430,000 487,555
Frontier Regional School District 5.50%, 6/15/2014 (Insured; AMBAC). . . . . . . . . . . . 1,000,000 1,071,680
Haverhill 6%, 6/15/2005 (Insured; FGIC). . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 834,855
Martha's Vineyard, Land Bank Revenue 5.50%, 5/1/2011 . . . . . . . . . . . . . . . . . . . 1,030,000 1,129,787
Mashpee, Municipal Purpose Loan 6.25%, 2/1/2006 (Insured; MBIA). . . . . . . . . . . . . . 1,000,000 1,134,460
Massachusetts:
Consolidated Loan:
7%, 7/1/2006 (Insured; MBIA, Prerefunded 7/1/2000) (a) . . . . . . . . . . . . . . . . 500,000 536,190
5.25%, 8/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850,000 888,190
Refunding 6.50%, 8/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 706,890
Massachusetts Bay Transportation Authority, Massachusetts General Transportation
System:
5.25%, 3/1/2011 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,077,880
5%, 3/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 975,200
Refunding 5.90%, 3/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550,000 600,506
Massachusetts Education Loan Authority, Education Loan Revenue
6.20%, 7/1/2013 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,098,560
Massachusetts Federal Highway Grant, Anticipation Notes 5.25%, 6/15/2013 . . . . . . . . . 1,000,000 1,055,330
Massachusetts Health and Educational Facilities Authority, Revenue:
(Brandeis University) 5.25%, 10/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . 1,000,000 1,051,960
(Brigham & Womens Hospital)
6.75%, 7/1/2024 (Insured; MBIA, Prerefunded 7/1/2001) (a) . . . . . . . . . . . . . . 2,000,000 2,186,680
(Harvard University):
6.20%, 12/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,069,030
Refunding 6.50%, 11/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 796,362
(Institute of Technology) 5.20%, 1/1/2028 . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,056,600
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ ___________
Massachusetts (continued)
Massachusetts Health and Educational Facilities Authority, Revenue (continued):
(Jordan Hospital) 5%, 10/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 $ 507,650
(Northeastern University) 5.50%, 10/1/2009 (Insured; MBIA) . . . . . . . . . . . . . . . 420,000 464,440
(Partners Healthcare Systems) 5.25%, 7/1/2004 (Insured; FSA) . . . . . . . . . . . . . . 1,000,000 1,062,440
Refunding:
(Boston College) 5%, 6/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 502,035
(Dana-Farber Cancer Institute) 5.55%, 12/1/2003 (Insured; FGIC) . . . . . . . . . . . 400,000 428,832
(Jordan Hospital) 6.875%, 10/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,078,130
(Salem Hospital) 8.15%, 7/1/2014 (Prerefunded 7/1/1999) (a) . . . . . . . . . . . . . . 750,000 783,705
(South Shore Hospital):
7.50%, 7/1/2010 (Insured; MBIA, Prerefunded 7/1/2000) (a) . . . . . . . . . . . . . . 350,000 377,709
7.50%, 7/1/2020 (Insured; MBIA, Prerefunded 7/1/2000) (a) . . . . . . . . . . . . . . 500,000 539,585
(Wentworth Institute of Technology):
7.15%, 4/1/2000 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,000 235,645
7.40%, 4/1/2010 (Insured; AMBAC, Prerefunded 4/1/2000) (a) . . . . . . . . . . . . . . 220,000 235,292
Massachusetts Housing Finance Agency, SFHR:
6%, 6/1/2014 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000 1,279,908
5.75%, 12/1/2029 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465,000 483,619
Massachusetts Industrial Finance Agency:
Electric Revenue (Nantucket Electric Co. Project) 6.75%, 7/1/2006 (Insured; AMBAC) . . . 1,400,000 1,618,400
Museum Revenue, Refunding (Museum of Fine Arts of Boston)
5.375%, 1/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,084,440
Revenue:
(Babson College) 5.75%, 10/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . 555,000 619,990
(Brooks School):
5.70%, 7/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,000 279,542
5.75%, 7/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,000 297,052
5.80%, 7/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,000 313,844
5.85%, 7/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,000 330,040
(Concord Academy) 5.50%, 9/1/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,268,550
Refunding:
(College of The Holy Cross):
5.50%, 3/1/2005 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,081,880
5.50%, 3/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,145,000 1,252,905
(Worcester Polytechnic) 5.35%, 9/1/2006 . . . . . . . . . . . . . . . . . . . . . . 850,000 920,525
(St. John's School, Inc.) 5.70%, 6/1/2018 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,045,640
(Tufts University):
5.50%, 2/15/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 820,418
5.50%, 2/15/2008 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,595,000 1,751,087
5.50%, 2/15/2009 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 665,000 732,425
(Wentworth Institute of Technology) 5.55%, 10/1/2013 . . . . . . . . . . . . . . . . . 500,000 514,975
Massachusetts Port Authority, Revenue 7%, 7/1/2000 (Insured; FGIC) . . . . . . . . . . . . 1,000,000 1,051,840
Massachusetts Special Obligation, Revenue:
(Highway Improvement Loan) 5.80%, 6/1/2000 . . . . . . . . . . . . . . . . . . . . . . . 880,000 910,280
Refunded (Consolidated Loan) 5.25%, 6/1/2010 . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,080,370
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ ___________
Massachusetts (continued)
Massachusetts Water Pollution Abatement Trust:
(Pool Loan Program) 6.125%, 2/1/2007 (Insured; FSA) . . . . . . . . . . . . . . . . . . $ 1,000,000 $ 1,135,000
Water Pollution Abatement Revenue:
(New Bedford Loan Program):
6%, 2/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,094,650
Refunding 5.25%, 8/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 534,405
(Seso Loan Program) 5.25%, 8/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . 1,050,000 1,123,574
Massachusetts Water Resource Authority:
5.30%, 11/1/2010 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,070,330
7.125%, 4/1/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 522,845
Refunding:
5.875%, 11/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 541,720
5.50%, 8/1/2008 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 550,620
Mendon Upton Regional School District, 6%, 6/1/2007 (Insured; FGIC). . . . . . . . . . . . 600,000 678,924
Milford 5.375%, 8/15/2011 (Insured; MBIA). . . . . . . . . . . . . . . . . . . . . . . . . 500,000 537,435
Nantucket, Refunding:
5%, 7/15/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 875,000 918,199
5%, 7/15/2017 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,006,500
North Attleborough 5.50%, 3/1/2006 (Insured; AMBAC). . . . . . . . . . . . . . . . . . . . 1,000,000 1,088,190
Northampton, School Project Loan 6.40%, 5/15/2004 (Insured; MBIA). . . . . . . . . . . . . 750,000 839,505
Quabbin Regional School District, Refunding 6%, 6/15/2008 (Insured; AMBAC) . . . . . . . . 780,000 887,640
Rockport 6.90%, 12/15/2007 (Prerefunded 12/15/1999) (a). . . . . . . . . . . . . . . . . . 1,000,000 1,065,380
Somerville 6%, 2/15/2007 (Insured; FSA). . . . . . . . . . . . . . . . . . . . . . . . . . 775,000 875,983
Southeastern University Building Authority, Project Revenue, Refunding
5.90%, 5/1/2010 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 556,355
Springfield:
(Municipal Purpose Loan) 5.25%, 11/15/2012 (Insured; FSA) . . . . . . . . . . . . . . . 2,000,000 2,110,960
(School Project Loan) 6.10%, 9/1/2002 (Insured; AMBAC) . . . . . . . . . . . . . . . . . 600,000 648,594
Uxbridge, Municipal Purpose Loan, Refunding
6.125%, 11/15/2005 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 563,680
6.125%, 11/15/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 525,000 600,983
Worchester, Municipal Purpose Loan:
5.25%, 7/1/2004 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650,000 691,906
5.25%, 7/1/2005 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650,000 695,143
5.25%, 11/1/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,076,790
Refunding 6.25%, 7/1/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . 755,000 887,472
Yarmouth 8.60%, 10/1/2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 108,664
U.S. Related--6.8%
Puerto Rico Commonwealth, Refunding
6.25%, 7/1/2011 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,050,000 1,246,392
Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue
6.25%, 7/1/2009 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,182,890
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- ____________ ___________
U.S. Related (continued)
Puerto Rico Electric Power Authority, Power Revenue
6.50%, 7/1/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 $ 1,158,860
Puerto Rico Public Buildings Authority, Revenue 6.75%, 7/1/2005 (Insured; AMBAC) . . . . . 1,000,000 1,161,310
University of Puerto Rico, University Revenue 6.25%, 6/1/2005. . . . . . . . . . . . . . . 750,000 848,580
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $75,427,318) . . . . . . . . . . . . . . . . . $78,773,126
_____________
Short-Term Municipal Investments--2.4%
- -------------------------------------------------------
Massachusetts:
Massachusetts Health and Educational Facilities Authority, Revenue, VRDN:
(Amherst College) 3.90% (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 $ 100,000
(Capital Asset Program):
3.20% (Insured; MBIA) (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 300,000
3.20% (Insured; MBIA) (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000
3.20% (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 600,000
(Newton Wellesley Hospital) 3.80% (Insured; MBIA) (b) . . . . . . . . . . . . . . . . . 200,000 200,000
Massachusetts Housing Finance Agency, Refunding, VRDN
(Multi-Family Housing Project) 3.80% (Collateralized; FNMA) (b) . . . . . . . . . . . . 100,000 100,000
Massachusetts Industrial Finance Agency, Revenue, Refunding, VRDN
(Showa Womans Institute, Inc.) 3.25% (b) . . . . . . . . . . . . . . . . . . . . . . . . 600,000 600,000
_____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $2,000,000) . . . . . . . . . . . . . . . . . $ 2,000,000
_____________
TOTAL INVESTMENTS (cost $77,427,318) . . . . . . . . . . . . . . . . . . . . . . . . . . . 98.6% $80,773,126
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4% $ 1,142,237
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $81,915,363
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FNMA Federal National Mortgage Association SFHR Single Family Housing Revenue
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ _______ ________________ _________________
<S> <C> <C> <C>
AAA Aaa AAA 75.3%
AA Aa AA 13.6
A A A 3.1
BBB Baa BBB 5.5
F1+, F-1 MIG1, VMIG1 & P1 SP1, A1 2.5
_______
100.0%
_______
</TABLE>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a)Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and interest
on the municipal issue and to retire the bonds in full at the earliest
refunding date.
(b)Securities payable on demand. Variable interest rate--subject to periodic
change.
(c) At December 31, 1998, 36.5% of the Fund's net assets are insured by MBIA.
(d)At December 31, 1998, the Fund had $22,452,204 (27.4% of net assets)
invested in securities whose payment of principal and interest is dependent
upon revenues generated from education projects.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998 (UNAUDITED)
Cost Value
____________ ____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $77,427,318 $80,773,126
Interest receivable . . . . . . . . . . . . . . . . . . . 1,296,494
____________
82,069,620
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 37,759
Due to Distributor . . . . . . . . . . . . . . . . . . . 1,146
Cash overdraft due to Custodian . . . . . . . . . . . . . 16,569
Payable for shares of Beneficial Interest redeemed . . . 98,783
____________
154,257
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $81,915,363
____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $78,566,807
Accumulated net realized gain (loss) on investments . . . 2,748
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 . . . . . . . . . . . . . . . . 3,345,808
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $81,915,363
____________
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
--------------------
Class A Class B Class C Class R
____________ _____________ ____________ _____________
<S> <C> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . . $17,037,186 $1,107,172 $314,162 $63,456,843
Shares Outstanding . . . . . . . . . . . . . . . . . . 1,363,846 88,426 25,060 5,079,143
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . $12.49 $12.52 $12.54 $12.49
_______ _______ _______ _______
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED DECEMBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $1,858,687
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . $ 191,255
Distribution and service fees--Note 2(b) . . . . . . . . 25,603
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 216,858
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,641,829
___________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments . . . . . . . . . $ 54,227
Net realized gain (loss) on financial futures . . . . . . (50,863)
___________
Net Realized Gain (Loss) . . . . . . . . . . . . . . . 3,364
Net unrealized appreciation (depreciation) on investments . . 935,870
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 939,234
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $2,581,063
___________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
__________________ _____________
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,641,829 $ 2,602,611
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 3,364 34,608
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 935,870 991,497
____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 2,581,063 3,628,716
____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (351,213) (693,581)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,903) (20,716)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,201) (3,463)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,270,512) (1,884,851)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,442) (62,410)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (444) (2,165)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (124) (207)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26,730) (148,583)
____________ ____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,676,569) (2,815,976)
____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916,977 2,367,545
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509,998 187,900
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,131 280,514
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,306,051 26,924,745
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,935 559,919
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,256 8,878
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,319 3,253
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524,341 749,754
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (689,248) (2,913,411)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,429) (31,308)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (10,008)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,019,230) (10,459,243)
____________ ____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . 12,778,101 17,668,538
____________ ____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . 13,682,595 18,481,278
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,232,768 49,751,490
____________ ____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $81,915,363 $68,232,768
____________ ____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
__________________________________
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
__________________ _____________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,824 192,071
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 19,797 45,454
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55,223) (236,197)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 38,398 1,328
__________ __________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,628 15,210
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 420 718
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,092) (2,513)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 36,956 13,415
__________ __________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,994 22,762
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 266 263
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (809)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 2,260 22,216
__________ __________
Class R
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,230,280 2,186,687
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 42,015 60,853
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (322,581) (848,374)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 949,714 1,399,166
__________ __________
__________ __________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class A Shares
______________________________________________
__________________
Six Months Ended
December 31, 1998 Year Ended June 30,
_____________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995(1,2) 1994(1,2)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $12.34 $12.15 $11.97 $11.91 $11.74 $12.38
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .26 .53 .54 .54 .55 .54(3)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . .16 .24 .20 .08 .20 (.36)
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . .42 .77 .74 .62 .75 .18
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.26) (.53) (.54) (.54) (.54) (.54)
Dividends from net realized gain on investments . . (.01) (.05) (.02) (.02) (.04) (.28)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.27) (.58) (.56) (.56) (.58) (.82)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $12.49 $12.34 $12.15 $11.97 $11.91 $11.74
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(4) . . . . . . . . . . . . . 6.69%(6) 6.41% 6.36% 5.22% 6.60% 1.38%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . .75%(6) .75% .75% .75% .75% .76%(5)
Ratio of net investment income
to average net assets . . . . . . . . . . . . 4.11%(6) 4.30% 4.47% 4.44% 4.65% 4.40%
Portfolio Turnover Rate . . . . . . . . . . . . . 3.50%(7) 6.63% 22.57% 39.16% 25.00% 19.00%
Net Assets, end of period (000's Omitted) . . . . $17,037 $16,355 $16,093 $15,689 $16,501 $21,276
</TABLE>
- ------------------------
(1)Effective April 4, 1994, the Retail and Institutional Classes were
reclassified as a single class of shares known as the Investor shares. Effective
October 17, 1994, the Investor shares were redesignated Class A. The Financial
Highlights for the year ended June 30, 1995 and subsequent years are based upon
a Class A share (formerly Investor shares) outstanding. The amounts shown for
the year ended June 30, 1994 were calculated using the performance of a Retail
share outstanding from July 1, 1993 to April 3, 1994, and the performance of an
Investor Share outstanding from April 4, 1994 to June 30, 1994.
(2)Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund' s investment manager. From April 4, 1994 through October 16, 1994, Mellon
Bank, N.A. served as the Fund's investment manager. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment manager.
(3)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 was $.53.
(4) Exclusive of sales load.
(5)Annualized expense ratio before voluntary 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 was .89%.
(6) Annualized.
(7) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class B Shares
_______________________________________________
Six Months Ended
December 31, 1998 Year Ended June 30,
__________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
__________ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . $12.37 $12.18 $11.99 $11.91
_______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . .23 .47 .48 .48
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . . . . . . .16 .24 .21 .10
_______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . .39 .71 .69 .58
_______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . (.23) (.47) (.48) (.48)
Dividends from net realized gain on investments . . . . . . . . . . (.01) (.05) (.02) (.02)
_______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . (.24) (.52) (.50) (.50)
_______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . $12.52 $12.37 $12.18 $11.99
_______ _______ _______ _______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . . . 6.15%(3) 5.87% 5.90% 4.87%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . 1.25%(3) 1.25% 1.25% 1.25%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . . . . . . 3.54%(3) 3.78% 3.96% 3.67%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . 3.50%(4) 6.63% 22.57% 39.16%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . $1,107 $637 $464 $452
</TABLE>
- -----------------------------
(1) The Fund commenced selling Class B shares on December 28, 1994.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class C Shares
______________________________________________________________
Six Months Ended Period Ended
December 31, 1998 Year Ended June 30, June 30,
__________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995(1)
__________ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $12.38 $12.15 $11.97 $11.91 $11.45
_______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .23 .46 .49 .48 .26
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . .17 .28 .20 .08 .45
_______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . .40 .74 .69 .56 .71
_______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.23) (.46) (.49) (.48) (.25)
Dividends from net realized gain on investments . . (.01) (.05) (.02) (.02) --
_______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.24) (.51) (.51) (.50) (.25)
_______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $12.54 $12.38 $12.15 $11.97 $11.91
_______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . 6.31%(3) 6.19% 5.87% 4.68% 6.24%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . 1.25%(3) 1.23% 1.25% 1.25% 1.25%(3)
Ratio of net investment income
to average net assets . . . . . . . . . . . . 3.60%(3) 3.64% 4.05% 3.93% 4.15%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . 3.50%(4) 6.63% 22.57% 39.16% 25.00%
Net Assets, end of period (000's Omitted) . . . . $314 $282 $7 $16 $18
</TABLE>
- -----------------------------
(1) The Fund commenced selling Class C shares on December 28, 1994.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class R Shares
__________________________________________________________________
Six Months Ended
December 31, 1998 Year Ended June 30,
_____________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995(1,2) 1994(1,2)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $12.34 $12.16 $11.97 $11.91 $11.74 $12.38
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .27 .56 .57 .57 .57 .55(3)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . .16 .23 .21 .08 .21 (.35)
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . .43 .79 .78 .65 .78 .20
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.27) (.56) (.57) (.57) (.57) (.56)
Dividends from net realized gain on investments . . (.01) (.05) (.02) (.02) (.04) (.28)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.28) (.61) (.59) (.59) (.61) (.84)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $12.49 $12.34 $12.16 $11.97 $11.91 $11.74
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(4) . . . . . . . . . . . . . 6.94%(6) 6.58% 6.70% 5.46% 6.87% 1.53%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . .50%(6) .50% .50% .50% .50% .62%(5)
Ratio of net investment income
to average net assets . . . . . . . . . . . . 4.36%(6) 4.54% 4.73% 4.68% 4.90% 4.54%
Portfolio Turnover Rate . . . . . . . . . . . . . 3.50%(7) 6.63% 22.57% 39.16% 25.00% 19.00%
Net Assets, end of period (000's Omitted) . . . . $63,457 $50,959 $33,188 $25,981 $19,700 $15,681
- ------------------------
</TABLE>
(1)Effective April 4, 1994 the Investment share was redesignated as the Trust
shares. Effective October 17, 1994 Trust shares were redesignated Class R
shares. The Financial Highlights above are based upon an Investment share
outstanding from February 1, 1993 to April 3, 1994 and a Trust share outstanding
from April 4, 1994 to October 16, 1994.
(2)Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund' s investment manager. From April 4, 1994 through October 16, 1994, Mellon
Bank, N.A. served as the Fund's investment manager. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's invesment manager.
(3)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 was $.54.
(4) Exclusive of sales load.
(5)Annualized expense ratio before voluntary 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 was .75%.
(6) Annualized.
(7) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Limited Term Massachusetts Municipal Fund (the "Fund") is a
separate non-diversified series of the Dreyfus/Laurel Tax-Free Municipal Funds
(the "Trust" ) which is registered under the Investment Company Act of 1940, as
amended (the "Act") as an open-end management investment company and operates as
a series company currently offering seven series including the Fund. The Fund's
investment objective is to maximize current income exempt from Federal income
taxes and state personal income taxes for resident shareholders of Massachusetts
consistent with the prudent risk of capital by investing in municipal
obligations of the named state which are of investment-grade quality and
intermediate maturities. The Dreyfus Corporation (the "Manager") serves as the
Fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. ("Mellon Bank").
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of
the Fund's shares. The Fund is authorized to issue an unlimited number of shares
of Beneficial Interest in the following classes of shares: Class A, Class B,
Class C and Class R shares. Class A, Class B and Class C shares are sold
primarily to retail investors through financial intermediaries and bear a
distribution fee and/or service fee. Class A shares are sold with a front-end
sales charge, while Class B and Class C shares are subject to a contingent
deferred sales charge ("CDSC") and distribution and service fees. Class R shares
are sold primarily to bank trust departments and other financial service
providers (including Mellon Bank and its affiliates) acting on behalf of
customers having a qualified trust or investment account or relationship at such
institution, and bear no distribution fee or service fee. Class R shares are
offered without a front-end sales load or CDSC. Each class of shares has
identical rights and privileges, except with respect to distribution fees and
voting rights on matters affecting a single class.
Investment income, net of expenses (other than class specific expenses) and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.
(c) Financial futures: The Fund may invest in trading financial futures
contracts in order to gain exposure to or protect against changes in the market.
The Fund is exposed to market risk as a result of changes in the value of the
underlying financial instruments. Investments in financial futures require the
Fund to "mark to market" on a daily basis, which reflects the change in the
market value of the contract at the close of each day's trading. Typically,
variation margin payments are received or made to reflect daily unrealized gains
or losses. When the contracts are closed, the Fund recognizes a realized gain or
loss. These investments require initial margin deposits with a custodian, which
consist of cash or cash equivalents, up to approximately 10% of the contract
amount. The amount of these deposits is determined by the exchange or Board of
Trade on which the contract is traded and is subject to change. At December 31,
1998, there were no financial futures contracts outstanding.
(d) Concentration of risk: The Fund follows an investment policy of investing
primarily in municipal obligations of one state. Economic changes affecting the
state and certain of its public bodies and municipalities may affect the ability
of issuers within the state to pay interest on, or repay principal of, municipal
obligations held by the Fund.
(e) Distributions to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
(f) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Investment management fee: Pursuant to an Investment Management agreement
with the Manager, the Manager provides or arranges for one or more third parties
and/or affiliates to provide investment advisory, administrative, custody, fund
accounting and transfer agency services to the Fund. The Manager also directs
the investments of the Fund in accordance with its investment objective,
policies and limitations. For these services, the Fund is contractually
obligated to pay the Manager a fee, calculated daily and paid monthly, at the
annual rate of .50% of the value of the Fund's average daily net assets. Out of
its fee, the Manager pays all of the expenses of the Fund except brokerage fees,
taxes, interest, commitment fees, Rule 12b-1 distribution fees and expenses,
fees and expenses of non-interested Trustees (including counsel fees) and
extraordinary expenses. In addition, the Manager is required to reduce its fee
in an amount equal to the Fund's allocable portion of fees and expenses of the
non-interested Trustees (including counsel) . Effective July 1, 1998, each
trustee receives
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
$40,000 per year, plus $5,000 for each joint Board meeting of The Dreyfus/Laurel
Funds, Inc., The Dreyfus/Laurel Tax-Free Municipal Funds, and The Dreyfus/Laurel
Funds Trust (the "Dreyfus/Laurel Funds") attended, $2,000 for separate committee
meetings attended which are not held in conjunction with a regularly scheduled
board meeting and $500 for Board meetings and separate committee meetings
attended that are conducted by telephone and is reimbursed for travel and
out-of-pocket expenses. The Chairman of the Board receives an additional 25% of
such compensation (with the exception of reimbursable amounts). In the event
that there is a joint committee meeting of the Dreyfus/Laurel Funds and the
Dreyfus High Yield Strategies Fund, the $2,000 fee will be allocated between the
Dreyfus/Laurel Funds and the Dreyfus High Yield Strategies Fund. These fees and
expenses are allocated to each series based on net assets. Amounts required to
be paid by the Trust directly to non-interested Trustees, that would be applied
to offset a portion of the management fee payable to the Manager, are in fact
paid directly by the Manager to the non-interested Trustees.
Prior to July 1, 1998 each trustee received $27,000 per year, $1,000 for each
Board meeting attended and $750 for each Audit Committee meeting attended and
was reimbursed for travel and out-of-pocket expenses. The Chairman of the Board
received an additional annual fee of $25,000 per year. These fees pertained to
the Dreyfus/Laurel Funds. (The $1,000 attendance fee and reimbursement of
meeting expenses were also borne pro rata by Dreyfus High Yield Strategies Fund)
. These fees and expenses were charged and allocated to each series based on net
assets. Amounts required to be paid by the Trust directly to the non-interested
Trustees, that would be applied to offset a portion of the management fee
payable to the Manager, were in fact paid directly by the Manager to the
non-interested Trustees.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $3,355 during the period ended December 31, 1998, from commissions
earned on sales of the Fund's shares.
(b) Distribution and service plan: Under the Distribution Plan (the "Plan")
adopted pursuant to Rule 12b-1 under the Act, Class A shares may pay annually up
to .25% of the value of its average daily net assets to compensate the
Distributor and Dreyfus Service Corporation, an affiliate of the Manager, for
shareholder servicing activities and the Distributor for activities and expenses
primarily intended to result in the sale of Class A shares. Under the Plan,
Class B and Class C shares may pay the Distributor for distributing shares at an
aggregate annual rate of .50% of the value of the average daily net assets of
Class B and Class C shares. Class B and Class C shares are also subject to a
service plan adopted pursuant to Rule 12b-1, under which the Fund pays Dreyfus
Service Corporation or the Distributor for providing certain services to the
holders of Class B and Class C shares a fee at the annual rate of .25% of the
value of the average daily net assets of Class B and Class C shares. Class R
shares bear no distribution or service fee. During the period ended December 31,
1998, Class A, Class B and Class C shares were charged $21,360, $2,106 and $723,
respectively, pursuant to the Plan. During the period ended December 31, 1998,
Class B and Class C shares were charged $1,053 and $361, respectively, pursuant
to the service plan.
Under its terms, the Plan and service plan shall remain in effect from year
to year, provided such continuance is approved annually by a vote of majority of
those Trustees who are not "interested persons" of the Trust and who have no
direct or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan.
DREYFUS PREMIER LIMITED TERM MASSACHUSETTS MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures, during the period ended
December 31, 1998, amounted to $14,024,865 and $2,572,606, respectively.
At December 31, 1998, accumulated net unrealized appreciation on investments
was $3,345,808, consisting of $3,369,919 gross unrealized appreciation and
$24,111 gross unrealized depreciation.
At December 31, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 4--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (" Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates which are related to the
Federal Funds rate in effect at the time of borrowings. During the period ended
December 31, 1998, the Fund did not borrow under the Facility.
[This Page Intentionally Left Blank]
DREYFUS PREMIER LIMITED TERM
MASSACHUSETTS MUNICIPAL FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 346/646SA9812
SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
LIMITED TERM
MASSACHUSETTS
MUNICIPAL FUND
- -------------------------------------------------------------------------------
DECEMBER 31, 1998
[reg.tm logo]
[lion logo]
YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of the Dreyfus Premier Limited Term
Municipal Fund for its semi-annual reporting period ended December 31, 1998, as
shown in the following table:
Annualized
Approximate Distribution Rate
Total Return* Income Dividends** Per Share***
___________ _____________________ _________________
<S> <C> <C> <C>
Class A 3.36% $0.250 3.86%
Class B 3.18% $0.218 3.46%
Class C 3.25% $0.218 3.45%
Class R 3.57% $0.266 4.22%
</TABLE>
THE ECONOMY
During the last six months of 1998, the main regions of the world had very
different economic fundamentals. The U.S. continued to enjoy a strong economy
near full employment, with unemployment only slightly above 4%. World economic
weakness generated powerful enough disinflationary forces that the Federal
Reserve Board (the "Fed") acted instead to ease credit beginning in September.
After many years of subpar economic growth, continental Europe moved into a
sustained economic expansion. The overall European economy benefited as interest
rates in peripheral countries such as Spain and Italy fell, approaching the
lower levels established by Germany, on the eve of currency unification. Unlike
the U.S., Europe has substantial excess capacity of productive plant and labor.
In Asia, weak economies were pervasive as a result of a financial crisis. The
Latin American economies weakened in turn as the financial stresses spread
throughout that region. On balance, there was a substantial weakening of the
world economy over the period, moderated mainly by the American consumer's role
as "spender of last resort."
A main influence on the U.S. economy was the foreign financial crisis and
consequent cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The fall
in inflation left more of the growth in consumer income with which to buy goods
and services. Thus, consumers benefited from a combination of good growth in
income after inflation, a strong labor market, and increases in the prices of
assets they owned, including bonds, stocks and real estate. In a sense, 1998 was
a year of disinflationary boom in the U.S., as above-trend economic growth
coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long-Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis from Japan, emerging
market countries and overextended financial institutions. Excess capacity
persists in many worldwide industries after years of high capital spending
followed by the onset of a worldwide weakening in demand. Fortunately, the U.S.
has led the world in making the transition away from the old manufacturing
industries to the new growth industries, such as biotechnology, software,
computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relaxed.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
As Treasury prices escalated in the face of global financial turmoil,
municipal bond prices lagged the advances in Treasury securities during the
second half of 1998. The total return on the 10-year Treasury was 8.26%,
compared to 4.10% for the Lehman Brothers 10-year Municipal Bond Index. The
impact of this underperformance was most evident in the twenty- to thirty-year
sector where the relative yield ratio between AAA-rated municipal bonds and
Treasury securities reached 98% in October. Historically, municipal bonds
yielding 80% to 85% of the yields of Treasury securities indicate attractive
relative value. By the end of the reporting period, this ratio was at 95%.
There was a heavy volume of newly issued securities in the municipal
marketplace. A total of $284 billion in bonds was issued in 1998, just $8
billion less than in the record-breaking year of 1993, and far outpacing the
$230 billion issued in 1997. The sizeable new issue calendar, combined with
global events, made for occasional volatile trading sessions.
We believe that the environment for municipal bonds still appears to be
positive. The dollar value of new issues in 1999 will likely be less than in
1998; early estimates indicate levels of new supply at $225 billion. A
continuation of the favorable comparison of municipal yields vis-a-vis Treasury
yields, combined with the built-in tax advantages of municipal bonds, should
continue to command buyers' attention.
The Fund maintained a bias towards a declining interest rate environment.
Correspondingly, the Fund' s weighted-average maturity was opportunistically
extended from 7.5 years to 8.0 years at the end of the reporting period. The
Fund continues to emphasize premium coupon issues and high credit quality
securities.
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope they are informative. Please know
that we appreciate greatly your continued confidence in the Fund and in The
Dreyfus Corporation.
Very truly yours,
[John Flahive signature]
John Flahive
Portfolio Manager
January 15, 1999
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
**Income dividends per share were exempt from Federal personal income taxes.
Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
*** Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized) , divided by the maximum
offering price per share at the end of the period in the case of Class A shares,
or the net asset value per share in the case of Class B, Class C and Class R
shares, adjusted for capital gains distributions.
<TABLE>
<CAPTION>
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--97.8% Amount Value
- ------------------------------------------------------- _____________ _____________
Alaska--1.2%
Anchorage Port and Term Facilities, Revenue, Refunding
<S> <C> <C>
6%, 2/1/2003 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,110,000 $ 1,202,441
Arizona--2.5%
Maricopa County Unified School District Number 69 (Paradise Valley)
6.35%, 7/1/2010 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550,000 648,714
Mesa, Refunding 5.90%, 7/1/2000 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . 500,000 518,675
Phoenix, Refunding 6.25%, 7/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,476,088
Arkansas--.5%
North Little Rock, Electric Revenue, Refunding 6%, 7/1/2001 (Insured; MBIA). . . . . . . . 500,000 529,120
California--19.4%
State of California:
6.80%, 10/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 815,157
6.60%, 10/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510,000 610,404
Burbank Unified School District, 4.70%, 8/1/2007 (Insured; FGIC) . . . . . . . . . . . . . 400,000 418,176
California Educational Facilities Authority, College and University Revenue,
Refunding (Los Angeles College Chiropractic) 5.75%, 11/1/2006 . . . . . . . . . . . . . 780,000 845,965
California Health Facilities Finance Authority, LR, Refunding
(Presbyterian Hospital) 5.50%, 5/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . 500,000 545,570
California Housing Finance Agency, Home Mortgage Revenue
5.65%, 8/1/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 655,000 696,468
5.65%, 8/1/2017 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 419,136
California Public Works Board, LR, Refunding
(California State University) 5.50%, 10/1/2007 . . . . . . . . . . . . . . . . . . . . . 500,000 549,070
California Rural Home Mortgage Finance Authority, SFMR
5.75%, 8/1/2009 (Guaranteed; FNMA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,000 236,723
Franklin-McKinley School District, Refunding 5.20%, 7/1/2004 (Insured; MBIA) . . . . . . . 375,000 399,934
Kern High School District, Refunding 6.40%, 2/1/2012 (Insured; MBIA) . . . . . . . . . . . 750,000 885,900
Los Angeles Public Works Financing Authority, Revenue
(Regional Park and Open Space District) 5.375%, 10/1/2007 . . . . . . . . . . . . . . . 1,100,000 1,202,179
Los Angeles Unified School District, 5.375%, 7/1/2012. . . . . . . . . . . . . . . . . . . 1,000,000 1,076,810
Metropolitan Water District of Southern California, Waterworks Revenue 6.375%, 7/1/2002. . 835,000 905,725
Modesto, Wastewater Treatment Facilities Revenue 6%, 11/1/2009 (Insured; MBIA) . . . . . . 500,000 579,405
Northern California, Transmission Revenue, Refunding:
(California-Oregon Transmission) 5.25%, 5/1/2008 (Insured; MBIA) . . . . . . . . . . . . 1,000,000 1,086,600
Redding JT Powers Financing Authority, Electrical Systems Revenue
5.25%, 6/1/2015 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 670,000 698,321
Rio Linda Unified School District, Refunding
6%, 8/1/2007 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 454,604
Riverside County Transportation Commission, Sales Tax Revenue :
6.50%, 6/1/2001 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520,000 556,728
Refunding, 6%, 6/1/2009 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . 500,000 577,155
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
California (continued)
Sacramento Municipal Utilities District, Electrical Revenue
6.30%, 9/1/2001 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 $ 536,390
San Diego County Regional Transportation Commission, Sales Tax Revenue
6%, 4/1/2004 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 828,563
San Francisco City and County Airport Commission, International Airport Revenue
5.625%, 5/1/2006 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 546,450
San Francisco City and County Public Utilities Commission, Water Revenue,
Refunding:
6%, 11/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 824,820
6.375%, 11/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 556,050
San Jose Redevelopment Agency, Tax Allocation
(Merged Area Redevelopment Project) 6%, 8/1/2009 (Insured; MBIA) . . . . . . . . . . . . 625,000 722,563
Santa Margarita-Dana Point Authority, Revenue, Refunding
7.25%, 8/1/2007 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 611,470
Santa Rosa, Wastewater Revenue
6.20%, 9/1/2003 (Prerefunded 9/1/2002) (Insured; FGIC) (a) . . . . . . . . . . . . . . . 350,000 386,029
Simi Valley Unified School District, Refunding 6.25%, 8/1/2004 (Insured; FGIC) . . . . . . 700,000 784,889
Southern California Public Power Authority, Power Project Revenue, Refunding
(Hydroelectric-Hoover Uprating Project) 6.30%, 10/1/2002 . . . . . . . . . . . . . . . . 420,000 457,036
Westside Unified School District, Refunding 6%, 8/1/2014 (Insured; AMBAC). . . . . . . . . 385,000 446,065
Colorado--1.5%
Denver City and County
5.90%, 8/1/2003 (Prerefunded 8/1/2000) (a) . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,049,130
Larimer County School District No. R1 Poudre, Refunding
5.50%, 12/15/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 533,345
Connecticut--.6%
Stamford 6.60%, 1/15/2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 589,510
Florida--3.8%
Dade County:
Sales Tax Revenue, Refunding 6%, 10/1/2002 (Insured; AMBAC) . . . . . . . . . . . . . . 1,000,000 1,080,690
Water and Sewer System Revenue 6.25%, 10/1/2008 (Insured; FGIC) . . . . . . . . . . . . 535,000 621,734
Florida Board of Education, Capital Outlay
5.25%, 1/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,155,000 1,210,394
Miami Health Facilities Authority, Health Facilities Revenue (Mercy Hospital
Project)
6.75%, 8/1/2020 (Insured; AMBAC) (Prerefunded 8/1/2001) (a) . . . . . . . . . . . . . . 1,000,000 1,096,420
Georgia--4.8%
Georgia, 5.25%, 10/1/2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,660,000 3,990,022
Georgia Municipal Electric Authority, Power Revenue, Refunding 6%, 1/1/2006. . . . . . . . 900,000 993,069
Hawaii--1.0%
Hawaii, 4.75%, 11/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,016,690
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Idaho--1.6%
Idaho Health Facilities Authority, Health System Revenue
(Holy Cross Health System Corp.) 5%, 12/1/2018 (Insured; MBIA) . . . . . . . . . . . . . $ 1,725,000 $ 1,717,600
Illinois--5.9%
Chicago Metropolitan Water Reclamation District (Chicago Capital Improvement)
7.25%, 12/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,283,410
Illinois 5.60%, 6/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 802,463
Illinois Development Finance Authority, PCR, Refunding
(Central Illinois Public Service Company) 5.70%, 8/15/2026 . . . . . . . . . . . . . . . 750,000 774,975
McHenry County Community Unit School District No.012:
5.50%, 12/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,065,000 1,145,514
5.50%, 12/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,215,000 1,296,855
Regional Transportation Authority 7.75%, 6/1/2012 (Insured; FGIC). . . . . . . . . . . . . 390,000 515,018
Sangamon County School District Number 186 (Springfield)
7.70%, 6/1/2001 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 327,759
Indiana--.5%
Indianapolis Airport Authority, Special Facilities Revenue
(Federal Express Corp. Project) 7.10%, 1/15/2017 . . . . . . . . . . . . . . . . . . . . 500,000 560,170
Iowa--1.0%
Iowa Student Loan Liquidity Corp., Student Loan Revenue, Refunding
5.65%, 12/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,065,680
Kentucky--1.6%
Kenton County Airport Board, Special Facilities Airport Revenue
(Delta Airlines Project) 7.125%, 12/1/2021 . . . . . . . . . . . . . . . . . . . . . . . 500,000 540,215
Kentucky Turnpike Authority, Economic Development Road Revenue, Refunding
(Revitalization Projects) 6.50%, 7/1/2007 (Insured; AMBAC) . . . . . . . . . . . . . . . 1,000,000 1,169,610
Maryland--1.5%
Maryland, State and Local Facilities Loan 5.25%, 6/15/2006 . . . . . . . . . . . . . . . . 1,400,000 1,516,144
Massachusetts--3.8%
Massachusetts, Special Obligation Revenue 7%, 6/1/2002 . . . . . . . . . . . . . . . . . . 1,000,000 1,102,330
Massachusetts Bay Transportation Authority General Transit System
5%, 3/1/2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 975,200
Worcester, Refunding:
(Municipal Purpose Loan) 5.75%, 10/1/2014 (Insured; MBIA) . . . . . . . . . . . . . . . 1,000,000 1,086,620
Refunding 6.25%, 7/1/2009 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . 720,000 843,617
Michigan--4.6%
Berkley City School District (Qualified School Board Loan Fund)
7%, 1/1/2009 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,030,000 1,256,456
Comstock Park Public Schools 6%, 5/01/2016 (Prerefunded 5/1/1999) (a). . . . . . . . . . . 50,000 51,464
Flowerville Community School District
6.50%, 5/1/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555,000 637,379
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Michigan (continued)
Lanse Creuse Public Schools, Refunding 5%, 5/1/2004 (Insured; AMBAC) . . . . . . . . . . . $ 1,140,000 $ 1,202,495
Redford Unified School District Number 1, Refunding
5%, 5/1/2013 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,045,010
Saint John's Public Schools (Qualified School Board Loan Fund)
6.50%, 5/1/2006 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525,000 603,283
Mississippi--.5%
Mississippi Higher Education Assistance Corporation, Student Loan Revenue
6.05%, 9/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485,000 507,994
Nebraska--1.0%
Omaha, Refunding 4.70%, 5/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,039,450
New Jersey--2.5%
Cumberland County Improvement Authority, SWDR
6%, 1/1/2001 (Insured; FGIC) (Prerefunded 2/5/1999) (a) . . . . . . . . . . . . . . . . 500,000 511,350
Ocean County Utilities Authority, Wastewater Revenue, Refunding
5%, 1/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,052,550
New Jersey Transportation Corporation, Capital Grant Anticipation Notes
5.50%, 9/1/2003 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,062,590
New York--14.5%
Amherst, Public Improvement 6.20%, 4/1/2002 (Insured; FGIC). . . . . . . . . . . . . . . . 150,000 161,408
Erie County Water Authority, Water Revenue, Refunding
7%, 12/1/2000 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 213,596
Greece Central School District 6%, 6/15/2010 . . . . . . . . . . . . . . . . . . . . . . . 225,000 259,749
Town of Hempstead 6.30%, 1/1/2002 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . 150,000 161,072
Metropolitan Transportation Authority:
Commuter Facilities Revenue (Grand Central Terminal)
5.70%, 7/1/2024 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 212,870
Transportation Facilities Revenue 6.30%, 7/1/2007 (Insured; MBIA). . . . . . . . . . . . . 250,000 287,803
Monroe County, Public Improvement 7%, 6/1/2003 (Insured; FGIC) . . . . . . . . . . . . . . 200,000 225,512
Municipal Assistance Corporation for New York City:
7.10%, 7/1/2000 (Prerefunded 7/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . . . 100,000 103,980
6%, 7/1/2005 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 111,258
Nassau County:
7%, 7/1/2002 (Insured; AMBAC) (Prerefunded 7/1/2000) (a) . . . . . . . . . . . . . . . . 100,000 106,362
6.30%, 11/1/2003 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 221,606
New York City:
5%, 8/1/2006 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,056,320
5.75%, 8/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545,000 595,091
Refunding:
7%, 8/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 354,549
6.20%, 8/1/2007 (Prerefunded 8/1/2004) (a) . . . . . . . . . . . . . . . . . . . . . . 55,000 61,905
6.20%, 8/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 945,000 1,048,345
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New York (continued)
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue 5.50%, 6/15/2027 (Insured; MBIA) . . . . . . . . . . . . $ 250,000 $ 262,685
New York State, Refunding 6.25%, 8/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,116,120
New York State Dormitory Authority, Revenue:
(Consolidated City University) 5.75%, 7/1/2018 (Insured; FSA) . . . . . . . . . . . . . 200,000 223,074
(FIT Student Housing) 5.75%, 7/1/2006 (Insured; AMBAC) . . . . . . . . . . . . . . . . . 130,000 143,685
(State University Educational) 7.125%, 5/15/2009
(Insured; FGIC) (Prerefunded 5/15/1999) (a) . . . . . . . . . . . . . . . . . . . . . 200,000 206,834
Refunding:
(Mental Health Services Facilities) 6%, 8/15/2005 . . . . . . . . . . . . . . . . . . 1,000,000 1,110,570
(Vassar College) 6%, 7/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 279,660
(Rochester Institute of Technology) 5.50%, 7/1/2006 (Insured; MBIA) . . . . . . . . . 200,000 218,258
New York State Environmental Facilities Corporation, PCR
(State Water Revolving Fund) 7.50%, 6/15/2012 . . . . . . . . . . . . . . . . . . . . . 500,000 537,590
New York State Local Government Assistance Corporation 6.375%, 4/1/2000. . . . . . . . . . 200,000 207,546
New York State Power Authority, General Purpose Revenue
7%, 1/1/2018 (Prerefunded 1/1/2010) (a) . . . . . . . . . . . . . . . . . . . . . . . . 300,000 372,042
New York State Thruway Authority (Highway and Bridge Trust Fund)
5.50%, 4/1/2007 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,092,700
New York State Urban Development Corporation, Revenue:
(Higher Education Technology Grants) 5.75%, 4/1/2015 (Insured; MBIA) . . . . . . . . . . 500,000 538,780
Refunding (Corporation Purpose) 5.50%, 7/1/2005 . . . . . . . . . . . . . . . . . . . . 200,000 217,082
Orange County:
5.10%, 11/15/2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,000 136,577
Refunding 5.50%, 11/15/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 275,760
Oyster Bay 7.125%, 4/15/2000 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . 180,000 188,811
Port Washington Union Free School District 6%, 8/1/2001. . . . . . . . . . . . . . . . . . 125,000 132,413
Putman County, Public Improvement, Refunding 5.25%, 4/15/2011. . . . . . . . . . . . . . . 150,000 162,617
St. Lawrence County Industrial Development Agency, Civic Facility Revenue
(Lawrence University Project) 5.50%, 7/1/2013 (Insured; MBIA) . . . . . . . . . . . . . 250,000 270,385
Suffolk County, Public Improvement
7%, 4/1/2002 (Insured; MBIA) (Prerefunded 4/1/2001) (a) . . . . . . . . . . . . . . . . 150,000 159,813
Triborough Bridge and Tunnel Authority, Refunding:
General Purpose Revenue:
5.75%, 1/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 273,623
5.90%, 1/1/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 111,976
7%, 1/1/2011 (Prerefunded 1/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . . . 100,000 101,500
Special Oligation 5.25%, 1/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,052,210
Westchester County 6.625%, 11/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 286,033
Western Nassau County Water Authority,
Water Systems Revenue 5.50%, 5/1/2004 (Insured; AMBAC) . . . . . . . . . . . . . . . . . 250,000 269,803
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
North Carolina--2.5%
Charlotte, Refunding 5.50%, 7/1/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,405,000 $ 1,494,667
Dare County, Utility System Revenue
5.25%, 6/1/2014 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,085,000 1,144,187
Ohio--2.2%
Clermont County, Hospital Facilities Revenue, Refunding
(Mercy Health System) 5.25%, 9/1/2003 (Insured; AMBAC) . . . . . . . . . . . . . . . . . 685,000 722,935
Hamilton County, Sales Tax (Hamilton County Football Project)
5.50%, 12/1/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,612,725
Oregon--.3%
Tri County Metropolitan Transportation District (Light Rail Extension)
5.60%, 7/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 267,533
Pennsylvania--3.4%
Pennsylvania Intergovernmental Coop Authority, Special Tax Revenue
(City of Philadelphia Funding Program) 6.80%, 6/15/2022 (Prerefunded 6/15/2002) (a) . . 1,000,000 1,099,910
Somerset County General Authority, Commonwealth LR
6.70%, 10/15/2003 (Insured; FGIC) (Prerefunded 10/15/2001) (a) . . . . . . . . . . . . . 1,000,000 1,081,900
State Public School Building Authority, College Revenue, Refunding
(Community College Project) 5.25%, 10/15/2011 (Insured; MBIA) . . . . . . . . . . . . . 1,300,000 1,384,422
Texas--5.9%
Austin, Utility System Revenue
8%, 11/15/2016 (Prerefunded 5/15/2001) (a) . . . . . . . . . . . . . . . . . . . . . . . 200,000 219,896
Fort Bend Independent School District, Refunding (Permanent School Fund
Guaranteed)
6.60%, 2/15/2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 875,000 981,575
Lewisville Independent School District (Building Bonds):
(Permanent School Fund Guaranteed):
7.50%, 8/15/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650,000 789,009
7.50%, 8/15/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 739,650
Socorro Independent School District (Permanent School Fund Guaranteed) 6%, 8/15/2014 . . . 2,085,000 2,330,238
Texas Public Financing Authority, Refunding 5%, 10/1/2005 . . . . . . . . . . . . . . . . 1,000,000 1,059,800
Utah--.5%
Intermountain Power Agency, Power Supply Revenue, Refunding
6.25%, 7/1/2009 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 580,770
Virginia--1.6%
Richmond Metropolitan Authority, Expressway Revenue, Refunding
5.25%, 7/15/2011 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525,000 567,121
Virginia Transportation Board, Transportation Contract Revenue, Refunding
(Route 28 Project) 6%, 4/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,081,090
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Washington--1.7%
Washington Public Power Supply System, Revenue, Refunding
(Nuclear Project No. 1):
6%, 7/1/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 $ 555,865
7%, 7/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,193,670
Wisconsin--1.8%
Kenosha, Waterworks Revenue, Refunding 5%, 12/1/2012 (Insured; FGIC) . . . . . . . . . . . 750,000 774,195
Wisconsin, Refunding 5.40%, 11/1/2023. . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 510,283
Wisconsin, Health and Educational Facilities Revenue
(Aurora Medical Group Inc.) 5.75%, 11/15/2007 (Insured; FSA) . . . . . . . . . . . . . . 500,000 552,513
U. S. Related--3.6%
Puerto Rico Commonwealth, Refunding 6.25%, 7/1/2011 (Insured; MBIA). . . . . . . . . . . . 950,000 1,127,686
Puerto Rico Commonwealth Highway and Transporation Authority,
Highway Revenue 6.25%, 7/1/2009 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . 150,000 177,432
Puerto Rico Electric Power Authority, Power Revenue, Refunding
6.50%, 7/1/2006 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625,000 724,286
Puerto Rico Public Buildings Authority, Government Guaranteed Facilities
6.25%, 7/1/2010 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 887,593
University of Puerto Rico, University Revenue, Refunding
6.25%, 6/1/2008 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 875,331
_____________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $97,070,493) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $102,175,453
_____________
Short-Term Municipal Investments--.8%
- -------------------------------------------------------
Alaska--.1%
Anchorage Higher Education, Revenue, Refunding, VRDN
(Alaska Pacific University) 4% (LOC; Seattle First National Bank) (b) . . . . . . . . . $ 100,000 $ 100,000
Louisana--.2%
East Baton Rouge Parish, PCR, Refunding, VRDN
(Rhone Poulenc Inc. Project) 4.10% (LOC; Banque Nationale De Paris) (b) . . . . . . . . 230,000 230,000
Illinois--.1%
Illinois Development Finance Authority, Revenue, VRDN
(Uhlich Childrens Home Project) 3.80% (LOC; American National Bank and
Trust Company) (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000
Massachusetts--.1%
Massachusetts Health and Educational Facilities Authority, Revenue, VRDN
(Capital Asset Program) 4% (LOC; First Chicago Corporation) (b) . . . . . . . . . . . . 100,000 100,000
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Short-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New York--.3%
Long Island Power Authority, Electric System Revenue, VRDN
4.05% (LOC; ABN Amro Bank N.V., Morgan Guaranty and Trust Company) (b) . . . . . . . . . $ 100,000 $ 100,000
New York State Job Development Authority, VRDN 4.10% (b) . . . . . . . . . . . . . . . . . 200,000 200,000
_____________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $830,000) . . . . . . . . . . . . . . . . . . $ 830,000
_____________
TOTAL INVESTMENTS--(cost $97,900,493). . . . . . . . . . . . . . . . . . . . . . . . . . . 98.6% $103,005,453
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4% $ 1,473,395
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $104,478,848
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
LOC Letter of Credit SWDR Solid Waste Disposal Revenue
LR Lease Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
______ _______ ________________ _________________
<S> <C> <C> <C>
AAA Aaa AAA 70.8%
AA Aa AA 20.3
A A A 6.4
BBB Baa BBB 1.9
F1 MIG1/P1 SP1/A1 .6
_______
100.0%
_______
</TABLE>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a)Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and interest
on the municipal issue and to retire the bonds in full at the earliest
refunding date.
(b)Securities payable on demand. Variable interest rate-subject to periodic
change.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $ 97,900,493 $103,005,453
Interest receivable . . . . . . . . . . . . . . . . . . . 1,690,217
Receivable for shares of Beneficial Interest subscribed . . 21,553
_____________
104,717,223
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 50,061
Due to Distributor . . . . . . . . . . . . . . . . . . . 2,436
Cash overdraft due to Custodian . . . . . . . . . . . . . 114,695
Payable for shares of Beneficial Interest redeemed . . . 3
Accrued other liabilities . . . . . . . . . . . . . . . . 71,180
_____________
238,375
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $104,478,848
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $ 99,374,374
Accumulated net realized gain (loss) on investments . . . (486)
Accumulated gross unrealized appreciation on investments . 5,104,960
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $104,478,848
_____________
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
--------------------
Class A Class B Class C Class R
____________ _____________ ____________ _____________
<S> <C> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . . $34,421,156 $3,097,897 $973,634 $65,986,161
Shares Outstanding . . . . . . . . . . . . . . . . . . 2,761,040 248,526 77,858 5,293,667
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . $12.47 $12.47 $12.51 $12.47
_______ _______ _______ _______
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED DECEMBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $1,806,737
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . $ 186,731
Distribution and service fees--Note 2(b) . . . . . . . . 37,252
Merger expense--Note 5 . . . . . . . . . . . . . . . . . 32,243
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 256,226
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,550,511
___________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments . . . . . . . . . 99,314
Net realized gain (loss) on financial futures . . . . . . (50,862)
___________
Net Realized Gain (Loss) . . . . . . . . . . . . . . . 48,452
Net unrealized appreciation (depreciation) on investments . . 2,746,502
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 2,794,954
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $4,345,465
___________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
__________________ _____________
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,550,511 $ 2,305,341
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 48,452 39,537
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 2,746,502 951,247
_____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . 4,345,465 3,296,125
_____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (456,676) (749,279)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,709) (39,058)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,542) (5,176)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,053,584) (1,511,828)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26,111) (80,051)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,389) (4,823)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (790) (650)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58,521) (142,207)
_____________ ____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,638,322) (2,533,072)
_____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,195,240 1,928,337
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,229,528 866,854
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543,822 169,572
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,535,124 20,684,158
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377,910 627,594
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,435 30,430
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,958 5,778
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446,618 559,128
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,689,605) (2,732,478)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (338,832) (219,487)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (126,297) (42,680)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,404,885) (4,439,994)
Net assets received in connection with reorganization of Dreyfus Premier Limited
Term California Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . 21,310,517 ---
Net assets received in connection with reorganization of Dreyfus Premier Limited
Term New York Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . . 7,777,417 ---
_____________ ____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . 39,881,950 17,437,212
_____________ ____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . 42,589,093 18,200,265
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,889,755 43,689,490
_____________ ____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $104,478,848 $61,889,755
_____________ ____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
__________________ _____________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725,405 156,992
Shares issued in connection with reorganization of Dreyfus Premier Limited Term
California Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . . . 570,050 ---
Shares issued in connection with reorganization of Dreyfus Premier Limited Term
New York Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . . . . 156,647 ---
Shares issued in connection with reorganization of Premier Limited Term
New York--Note 1
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 30,331 51,084
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (136,045) (222,938)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 1,346,388 (14,862)
__________ __________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,571 70,552
Shares issued in connection with reorganization of Dreyfus Premier Limited Term
California Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . . . 52,551 ---
Shares issued in connection with reorganization of Dreyfus Premier Limited Term
New York Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . . . . 21,313 ---
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 1,560 2,478
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,195) (17,814)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 147,800 55,216
__________ __________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,057 13,837
Shares issued in connection with reorganization of Dreyfus Premier Limited Term
California Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . . . 11,009 ---
Shares issued in connection with reorganization of Dreyfus Premier Limited Term
New York Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . . . . 15,617 ---
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 476 469
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,236) (3,467)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 60,923 10,839
__________ __________
Class R
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685,388 1,685,584
Shares issued in connection with reorganization of Dreyfus Premier Limited Term
California Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . . . 1,082,177 ---
Shares issued in connection with reorganization of Dreyfus Premier Limited Term
New York Municipal Fund--Note 1 . . . . . . . . . . . . . . . . . . . . . . . . 432,574 ---
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . 35,844 45,521
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (435,501) (362,249)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . 1,800,482 1,368,856
__________ __________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class A Shares
__________________________________________________________________
Six Months Ended
December 31, 1998 Year Ended June 30,
_____________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995(1,2) 1994(1,2)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $12.32 $12.12 $11.89 $11.82 $11.66 $12.61
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .25 .52 .54 .54 .53 .54(3)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . .16 .26 .26 .08 .19 (.41)
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . .41 .78 .80 .62 .72 .13
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.25) (.52) (.54) (.55) (.53) (.54)
Dividends from net realized gain on investments . . (.01) (.06) (.03) -- (.03) (.54)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.26) (.58) (.57) (.55) (.56) (1.08)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $12.47 $12.32 $12.12 $11.89 $11.82 $11.66
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(4) . . . . . . . . . . . . . 6.67%(6) 6.52% 6.92% 5.25% 6.37% .96%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . .84%(6) .77% .75% .75% .75% .76%(5)
Ratio of net investment income
to average net assets . . . . . . . . . . . . 4.00%(6) 4.24% 4.52% 4.53% 4.59% 4.43%
Portfolio Turnover Rate . . . . . . . . . . . . . 6.38%(7) 14.62% 30.50% 55.07% 61.00% 57.00%
Net Assets, end of period (000's Omitted) . . . . $34,421 $17,423 $17,323 $18,751 $21,375 $23,715
- ------------------------
</TABLE>
(1)Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund's investment manager. From April 4, 1994 through October 16, 1994, Mellon
Bank, N.A. served as the Fund's investment manager. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
(2)Effective April 4, 1994 the Retail and Institutional Classes were
reclassified as a single class of shares known as the Investor shares. Effective
October 17, 1994, the Investor shares were redesignated Class A shares. The
Financial Highlights for the year ended June 30, 1995 are based upon a Class A
(formerly Investor) share outstanding. The amounts shown for the year ended June
30, 1994 were calculated using the performance of a Retail shares outstanding
from July 1, 1993 to April 3, 1994, and the performance of an Investor share
outstanding from April 4, 1994 to June 30, 1994.
(3)Net investment income before waiver of fees and/or reimbursement of
expenses by the investment adviser and/or custodian and/or transfer agent for
the years ended June 30, 1994 were $.49.
(4) Exclusive of sales load.
(5)Annualized expense ratios before voluntary waiver of fees and/or
reimbursement of expenses by the investment adviser and/or custodian and/or
transfer agent for the years ended June 30, 1994 were 1.09%.
(6) Annualized.
(7) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class B Shares
______________________________________________________________
Six Months Ended Period Ended
December 31, 1998 Year Ended June 30, June 30,
__________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995(1)
__________ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $12.31 $12.12 $11.89 $11.82 $11.32
_______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .22 .46 .48 .48 .24
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . .17 .25 .26 .07 .50
_______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . .39 .71 .74 .55 .74
_______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.22) (.46) (.48) (.48) (.24)
Dividends from net realized gain on investments . . (.01) (.06) (.03) -- --
_______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.23) (.52) (.51) (.48) (.24)
_______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $12.47 $12.31 $12.12 $11.89 $11.82
_______ ______ ______ ______ ______
_______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . 6.31%(3) 5.89% 6.38% 4.71% 6.59%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . 1.32%(3) 1.27% 1.25% 1.25% 1.25%(3)
Ratio of net investment income
to average net assets . . . . . . . . . . . . 3.46%(3) 3.68% 4.01% 3.98% 4.09%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . 6.38%(4) 14.62% 30.50% 55.07% 61.00%
Net Assets, end of period (000's Omitted) . . . . $3,098 $1,240 $551 $500 $85
</TABLE>
- -----------------------------
(1) The Fund commenced selling Class B shares on December 28, 1994.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class C Shares
______________________________________________________________
Six Months Ended Period Ended
December 31, 1998 Year Ended June 30, June 30,
__________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995(1)
__________ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $12.34 $12.14 $11.90 $11.82 $11.32
_______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .22 .46 .49 .48 .24
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . .18 .26 .27 .08 .50
_______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . .40 .72 .76 .56 .74
_______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.22) (.46) (.49) (.48) (.24)
Dividends from net realized gain on investments . . (.01) (.06) (.03) -- --
_______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.23) (.52) (.52) (.48) (.24)
_______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $12.51 $12.34 $12.14 $11.90 $11.82
_______ ______ ______ ______ ______
_______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . 6.45%(3) 6.02% 6.50%(3) 4.81% 6.59%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . 1.30%(3) 1.27% 1.27%(3) 1.24% 1.25%(3)
Ratio of net investment income
to average net assets . . . . . . . . . . . . 3.46%(3) 3.71% 4.17%(3) 4.00% 4.09%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . 6.38%(4) 14.62% 30.50%(4 55.07% 61.00%
Net Assets, end of period (000's Omitted) . . . . $974 $209 $74 $150 $84
- -----------------------------
</TABLE>
(1) The Fund commenced selling Class C shares on December 28, 1994.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class R Shares
__________________________________________________________________
Six Months Ended
December 31, 1998 Year Ended June 30,
_____________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995(1,2) 1994(1,2)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $12.31 $12.12 $11.89 $11.82 $11.66 $12.61
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .27 .55 .57 .57 .56 .58(3)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . .17 .25 .26 .08 .19 (.43)
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . .44 .80 .83 .65 .75 .15
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.27) (.55) (.57) (.58) (.56) (.56)
Dividends from net realized gain on investments . . (.01) (.06) (.03) -- (.03) (.54)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.28) (.61) (.60) (.58) (.59) (1.10)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $12.47 $12.31 $12.12 $11.89 $11.82 $11.66
______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(4) . . . . . . . . . . . . . 7.08%(5) 6.69% 7.17% 5.51% 6.64% 1.08%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . .59%(5) .52% .50% .50% .50% .50%(7)
Ratio of net investment income
to average net assets . . . . . . . . . . . . 4.25%(5) 4.47% 4.77% 4.77% 4.84% 4.69%
Portfolio Turnover Rate . . . . . . . . . . . . . 6.38%(6) 14.62% 30.50% 55.07% 61.00% 57.00%
Net Assets, end of period (000's Omitted) . . . . $65,986 $43,018 $25,741 $17,870 $16,727 $12,581
- ------------------------
</TABLE>
(1)Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund' s investment manager. From April 4, 1994 through October 16, 1994, Mellon
Bank, N.A. served as the Fund's investment manager. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
(2)Effective April 4, 1994 the Investment Class was redesignated the Trust
shares. Effective October 17, 1994 Trust shares were redesignated Class R
shares. The table above is based upon an Investment share outstanding from
February 1, 1993 to April 3, 1994 and a Trust share outstanding from April 4,
1994 to October 16, 1994.
(3)Net investment income before waiver of fees and/or reimbursement of
expenses by the investment adviser and/or custodian and/or transfer agent for
the year ended June 30, 1994 were $.54.
(4) Exclusive of sales load.
(5) Annualized.
(6) Not annualized.
(7) Annualized expense ratios before voluntary waiver of fees and reimbursement
of expenses by the investment adviser and/or custodian and/or transfer agent for
the year ended June 30, 1994 were .83%.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Limited Term Municipal Fund (the "Fund") is a separate
non-diversified series of The Dreyfus/Laurel Tax-Free Municipal Funds (the
" Trust" ) which is registered under the Investment Company Act of 1940, as
amended (the "Act") as an open-end management investment company and operates as
a series company currently offering five series including the Fund. The Fund's
investment objective is to maximize current income exempt from Federal income
taxes consistent with the prudent risk of capital by investing in municipal
securities which are of investment-grade quality and intermediate maturities.
The Dreyfus Corporation (the "Manager") serves as the Fund's investment adviser.
The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon Bank").
On September 15, 1998, the Board Members of the Trust approved, subject to
approval by the shareholders of the Dreyfus Premier Limited Term Municipal Fund,
an Agreement and Plan of Reorganization providing for the transfer of all or
substantially all of the Dreyfus Premier Limited Term California Municipal Funds
assets and liabilities to the Fund in a tax free exchange for shares of
beneficial interest of the Fund, and the assumption by the Fund of stated
liabilities (the "Exchange"). The Exchange was approved by the shareholders of
Premier Limited Term California Municipal Fund on November 12, 1998, and was
consummated after the close of business on November 12, 1998, at which time
531,135 Class A shares valued at $13.33 per share, 48,964 Class B shares valued
at $13.33 per share, 10,268 Class C shares valued at $13.36 per share and
1,009,057 Class R shares valued at $13.32 per share, representing combined net
assets of $21,310,517, (including $1,460,492 net unrealized appreciation on
investments) were exchanged by Dreyfus Premier Limited Term California Municipal
Fund for the respective number of Class A, Class B, Class C shares and Class R
shares of the Fund
On September 15, 1998, the Board Members of the Trust approved, subject to
approval by the shareholders of the Dreyfus Premier Limited Term Municipal Fund,
an Agreement and Plan of Reorganization providing for the transfer of all or
substantially all of the Dreyfus Premier Limited Term New York Municipal Funds
assets and liabilities to the Fund in a tax free exchange for shares of
beneficial interest of the Fund, and the assumption by the Fund of stated
liabilities (the "Exchange"). The Exchange was approved by the shareholders of
Premier Limited Term New York Municipal Fund on November 12, 1998, and was
consummated after the close of business on November 12, 1998, at which time
150,236 Class A shares valued at $12.95 per share, 20,425 Class B shares valued
at $12.96 per share, 14,991 Class C shares valued at $12.98 per share and
414,870 Class R shares valued at $12.95 per share, representing combined net
assets of $7,777,417, (including $390,164 net unrealized appreciation on
investments) were exchanged by Dreyfus Premier Limited Term New York Municipal
Fund for the respective number of Class A, Class B, Class C shares and Class R
shares of the Fund.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of
the Fund's shares. The Fund is authorized to issue an unlimited number of shares
of Beneficial Interest in the following classes of shares: Class A, Class B,
Class C and Class R. Class A, Class B and Class C shares are sold primarily to
retail investors through financial intermediaries and bear a distribution fee
and/or service fee. Class A shares are sold with a front-end sales charge, while
Class B and Class C shares are subject to a contingent deferred sales charge
(" CDSC") and distribution and service fee. Class R shares are sold primarily to
bank trust departments and other financial service providers (including Mellon
Bank and its affiliates) acting on behalf of customers having a qualified trust
or investment account or relationship at such institution, and bear no
distribution or service fees. Class R shares are offered without a front-end
sales load or CDSC. Each class of shares has identical rights and privileges,
except with respect to distribution and service fees and voting rights on
matters affecting a single class.
Investment income, net of expenses (other than class specific expenses) and
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management estimates.
Actual results may differ from estimates.
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(A) PORTFOLIO VALUATION: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.
(C) FINANCIAL FUTURES: The Fund may invest in financial futures contracts in
order to gain exposure to or protect against changes in the market. The Fund is
exposed to market risk as a result of changes in the value of the underlying
financial instruments. Investments in financial futures require the Fund to
"mark to market" on a daily basis, which reflects the change in the market value
of the contract at the close of each day's trading. Typically, variation margin
payments are received or made to reflect daily unrealized gains or losses. When
the contracts are closed, the Fund recognizes a realized gain or loss. These
investments require initial margin deposits with a custodian, which consist of
cash or cash equivalents, up to approximately 10% of the contract amount. The
amount of these deposits is determined by the exchange or Board of Trade on
which the contract is traded and is subject to change. At December 31, 1998,
there were no financial futures contracts outstanding.
(D) DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) INVESTMENT MANAGEMENT FEE: Pursuant to an Investment Management agreement
with the Manager, the Manager provides or arranges for one or more third parties
and/or affiliates to provide investment advisory, administrative, custody, fund
accounting and transfer agency services to the Fund. The Manager also directs
the investments of the Fund in accordance with its investment objective,
policies and limitations. For these services, the Fund is contractually
obligated to pay the Manager a fee, calculated daily and paid monthly, at the
annual rate of .50% of the value of the Fund's average daily net assets. Out of
its fee, the Manager pays all of the expenses of the Fund except brokerage fees,
taxes, interest, commitment fees, Rule 12b-1 distribution fees and expenses,
fees and expenses of non-interested Directors (including counsel fees) and
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
extraordinary expenses. In addition, the Manager is required to reduce its fee
in an amount equal to the Fund's allocable portion of fees and expenses of the
non-interested Directors (including counsel) . Effective July 1, 1998, each
director receives $40,000 per year, plus $5,000 for each joint Board meeting of
The Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free Municipal Funds, and
The Dreyfus/Laurel Funds Trust (the "Dreyfus/Laurel Funds") attended, $2,000 for
separate committee meetings attended which are not held in conjunction with a
regularly scheduled board meeting and $500 for Board meetings and separate
committee meetings attended that are conducted by telephone and is reimbursed
for travel and out-of-pocket expenses. The Chairman of the Board receives an
additional 25% of such compensation (with the exception of reimbursable amounts)
. In the event that there is a joint committee meeting of the Dreyfus/Laurel
Funds and the Dreyfus High Yield Strategies Fund, the $2,000 fee will be
allocated between the Dreyfus/Laurel Funds and the Dreyfus High Yield Strategies
Fund. These fees and expenses are charged and allocated to each series based on
net assets. Amounts required to be paid by the Company directly to the
non-interested Directors, that would be applied to offset a portion of the
management fee payable to the Manager, are in fact paid directly by the Manager
to the non-interested Directors.
Prior to July 1, 1998 each director received $27,000 per year, $1,000 for
each Board meeting attended and $750 for each Audit Committee meeting attended
and was reimbursed for travel and out-of-pocket expenses. The Chairman of the
Board received an additional annual fee of $25,000 per year. These fees
pertained to the Dreyfus/Laurel Funds. (The $1,000 attendance fee and
reimbursement of meeting expenses were also borne pro rata by Dreyfus High Yield
Strategies Fund) . These fees and expenses were charged and allocated to each
series based on net assets. Amounts required to be paid by the Company directly
to the non-interested Directors, that would be applied to offset a portion of
the management fee payable to the Manager, were in fact paid directly by the
Manager to the non-interested Directors.
(B) DISTRIBUTION AND SERVICE PLAN: Under the Distribution Plan (the "Plan")
adopted pursuant to Rule 12b-1 under the Act, the Fund may pay annually up to
. 25% of the value of its average daily net assets attributable to its Class A
shares to compensate the Distributor and Dreyfus Service Corporation, an
affiliate of the Manager, for shareholder servicing activities and the
Distributor for activities and expenses primarily intended to result in the sale
of Class A shares. Under the Plan, Class B and Class C may pay the Distributor
for distributing their shares at an aggregate annual rate of .50% of the value
of the average daily net assets of Class B and Class C shares. Class B shares
and Class C shares are also subject to a service plan adopted pursuant to Rule
12b-1, under which the Class B shares and Class C shares pay Dreyfus Service
Corporation or the Distributor for providing certain services to the holders of
Class B and Class C shares a fee at the annual rate of .25% of the value of the
average daily net assets of Class B and Class C shares. Class R shares bear no
distribution or service fee. During the period ended December 31, 1998, Class A,
Class B and Class C shares were charged $28,526, $4,584 and $1,233,
respectively, pursuant to the Plan and Class B and Class C were charged $2,292
and $617, respectively, pursuant to the service plan.
Under its terms, the Plan shall remain in effect from year to year, provided
such continuance is approved annually by a vote of majority of those Trustees
who are not "interested persons" of the Company and who have no direct or
indirect financial interest in the operation of the Plan or in any agreement
related to the Plan.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures, during the period ended
December 31, 1998, amounted to $44,769,637 and $4,626,685, respectively.
At December 31, 1998, accumulated net unrealized appreciation on investments
was $5,104,960, consisting of $5,121,339 gross unrealized appreciation and
$16,379 gross unrealized depreciation.
At December 31, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
DREYFUS PREMIER LIMITED TERM MUNICIPAL FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 4--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (" Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
December 31, 1998, the Fund did not borrow under the Facility.
DREYFUS PREMIER LIMITED TERM
MUNICIPAL FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 347/647SA9812
SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
LIMITED TERM
MUNICIPAL FUND
- -------------------------------------------------------------------------------
DECEMBER 31, 1998
[reg.tm logo]
[Dreyfus lion/2hres logo]
YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of the Dreyfus BASIC Massachusetts
Municipal Money Market Fund for the six-month period ended December 31, 1998.
Your Fund produced an annualized yield of 2.87% and, after taking into account
the effect of compounding, the annualized effective yield was 2.91%.*
THE ECONOMY
During the last six months of 1998, the main regions of the world had very
different economic fundamentals. The U.S. continued to enjoy a strong economy
near full employment, with unemployment only slightly above 4%. World economic
weakness generated powerful enough disinflationary forces that the Fed acted
instead to ease credit beginning in September. After many years of subpar
economic growth, continental Europe moved into a sustained economic expansion.
The overall European economy benefited as interest rates in peripheral countries
such as Spain and Italy fell, approaching the lower levels established by
Germany, on the eve of currency unification. Unlike the U.S., Europe has
substantial excess capacity of productive plant and labor. In Asia, weak
economies were pervasive as a result of a financial crisis. The Latin American
economies weakened in turn as the financial stresses spread throughout that
region. On balance, there was a substantial weakening of the world economy over
the period moderated mainly by the American consumer's role as "spender of last
resort."
A main influence on the U.S. economy was the foreign financial crisis and
consequent cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The fall
in inflation left more of the growth in consumer income with which to buy goods
and services. Thus, consumers benefited from a combination of good growth in
income after inflation, a strong labor market, and increases in the prices of
assets they owned, including bonds, stocks and real estate. In a sense, 1998 was
a year of disinflationary boom in the U.S., as above-trend economic growth
coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis from Japan, emerging
market countries and overextended financial institutions. Excess capacity
persists in many worldwide industries after years of high capital spending
followed by the onset of a worldwide weakening in demand. Fortunately, the U.S.
has led the world in making the transition away from the old manufacturing
industries to the new growth industries, such as biotechnology, software,
computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relaxed.
MARKET ENVIRONMENT/PORTFOLIO FOCUS
During the second half of 1998, international economic instability,
highlighted by the Russian government defaulting on their debt and worsening
conditions in Asia and South America, resulted in strong demand for United
States Treasury securities. As a result of this turmoil and subdued inflation in
the United States, the Federal Reserve lowered the Federal Funds rate three
times in the last four months of 1998, from 5.50% to 4.75%. (The Federal Funds
rate is the rate of interest that banks charge each other for overnight loans).
Accordingly, interest rates in general declined.
During the period, the yield on one-year tax-exempt securities ranged from a
high of 3.45% to a low of 2.75%, declining overall by 60 basis points by the end
of the reporting period to 2.85%. The yield on the one-year Treasury Note ended
the reporting period at 4.62% compared to 5.38% as of June 30. Heavy investor
demand was directly attributable to the high volatility in the financial
markets. Assets in tax-exempt money funds rose by approximately $18 billion over
the reporting period. Over the same period, new-issue supply in the tax-exempt
note market declined because of the improved fiscal positions of most
municipalities. Total issuance of new tax-exempt notes for 1998 was only $34
billion compared to $46 billion the previous year.
In the Commonwealth of Massachusetts, good economic growth and sound financial
management led to credit rating upgrades by both Standard & Poor's and Fitch
(from A+ to AA-) . Job growth continued to outpace that of the nation,
unemployment was low, and wealth and income levels remained high. For the
seventh consecutive year, fiscal 1998 ended with a surplus, this time more than
$800 million. Fiscal 1998 tax collections were 9% above the 1997 level.
Liquidity has improved, and the combined general fund and stabilization reserve
fund balances currently total $1.2 billion, or 6% of revenues. Contributing
further to the enhanced credit environment was a 1998 court ruling against a
petition to eliminate tolls on the Massachusetts Turnpike.
Some fiscal issues may bring adverse pressure on the Commonwealth's credit
condition. Reductions in income and investment taxes, while positive from a
competitive standpoint, will cost about $492 million annually. Additionally,
there is uncertainty concerning the amount of federal funding for the $10.8
billion Central Artery/Tunnel Project. Furthermore, the Commonwealth has
estimated that it will issue $5 billion in general obligation bonds over the
next five years, which will push its already high debt to levels at or near the
highest in the nation. Nevertheless, we believe that economic and fiscal
fundamentals remain strong for continued stability.
The average portfolio maturity of the Fund was extended slightly over the
reporting period to help protect the Fund from declining yields. The
weighted-average maturity of the Fund was 51 days at year-end compared to 46
days as of June 30.
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope that you find them informative.
Please know that we greatly appreciate your continued confidence in the Fund and
in The Dreyfus Corporation.
Very truly yours,
[John Flahive signature]
John Flahive
Portfolio Manager
January 15, 1999
New York, NY
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments--99.9% Amount Value
- ------------------------------------------------------- _____________ ____________
<S> <C> <C>
Amherst-Pelham Regional School District 5%, 5/15/99 (Insured; AMBAC) . . . . . . . . . . . $ 1,107,000 $ 1,111,938
City of Boston, Revenue 5.25%, Series A, 10/1/99 (Insured; MBIA) . . . . . . . . . . . . . 100,000 101,488
Boston Water and Sewer Commission, Revenue, VRDN
3.70%, Series A (LOC; State Street Bank and Trust Co.) (a) . . . . . . . . . . . . . . . 4,580,000 4,580,000
Town of Brookline, BAN 4%, 6/4/99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,001,219
Town of Cambridge 4.30%, 8/1/99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,004,240
Town of Gloucester, BAN 4%, 8/5/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,001,993
Town of Holyoke, Refunding, PCR, VRDN
(Holyoke Water Power Project) 3.70% (LOC; Union Bank of Switzerland) (a) . . . . . . . . 1,360,000 1,360,000
Town of Hopkinton, Revenue 6%, 9/1/99 (Insured; FGIC). . . . . . . . . . . . . . . . . . . 725,000 735,798
Town of Malden, Revenue 4%, 10/1/99 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . 1,565,000 1,575,837
Town of Marlborough, Revenue 5.50% 1/15/99 (Insured; FSA). . . . . . . . . . . . . . . . . 790,000 790,530
Massachusetts Bay Transportation Authority, CP:
3%, Series C, 2/11/99 (LOC; Westdeutsche Landesbank) . . . . . . . . . . . . . . . . . . 4,000,000 4,000,000
3.05%, Series C, 1/20/99 (LOC; Westdeutsche Landesbank) . . . . . . . . . . . . . . . . 2,300,000 2,300,000
3.20%, Series C, 1/28/99 (LOC; Westdeutsche Landesbank) . . . . . . . . . . . . . . . . 900,000 900,000
Commonwealth of Massachusetts:
Refunding:
5.50%, Series A, 7/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 604,907
VRDN:
3.90%, Series A (LOC; Commerzbank) (a) . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
3.90%, Series B (LOC; Toronto-Dominion Bank) (a) . . . . . . . . . . . . . . . . . 1,500,000 1,500,000
4%, Series B (LOC; Landesbank Hessen) (a) . . . . . . . . . . . . . . . . . . . . . 4,200,000 4,200,000
(Consolated Loan):
Prerefunded:
7%, Series A, 2/1/99 (Escrowed in; U.S. Government Securities and
Guaranteed by; Commonwealth of Massachusetts) . . . . . . . . . . . . . . . . . . 1,250,000 1,253,503
7%, Series C, 6/1/99 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . 1,750,000 1,813,147
Revenue:
3.60%, Series A, 1/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
7%, Series A, 3/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,005,455
Massachusetts Health and Educational Facilities Authority, Revenue:
CP:
(Boston University) 3%, Series H, 8/25/99 (LOC; Landesbank Hessen) . . . . . . . . . . 5,000,000 5,000,000
(Harvard University):
3.05%, Series L, 1/22/99 (Guaranteed by; Harvard University) . . . . . . . . . . . 2,690,000 2,690,000
2.95%, Series L, 2/8/99 (Guaranteed by; Harvard University) . . . . . . . . . . . . 1,300,000 1,300,000
Revenue:
(Harvard Pilgrim Health) 4.25%, Series A, 7/1/99 (Insured; FSA) . . . . . . . . . . . 1,000,000 1,003,125
VRDN:
(Amherst College):
3.90%, Series F (Guaranteed by; Amherst College) (a) . . . . . . . . . . . . . . . 1,800,000 1,800,000
4.08%, Series C (Guaranteed by; Amherst College and LOC; Merrill Lynch and Co.) (a) . . 1,460,000 1,460,000
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
Massachusetts Health and Educational Facilities Authority, Revenue (continued):
(Capital Asset Program):
3.60%, Series A (LOC; First National Bank of Chicago) (a) . . . . . . . . . . . . . $ 1,000,000 $ 1,000,000
4.60%, Series C (Insured; MBIA and SBPA; Credit Suisse) (a) . . . . . . . . . . . . 1,100,000 1,100,000
5%, Series E (LOC; First Chicago Corp.) (a) . . . . . . . . . . . . . . . . . . . . 2,300,000 2,300,000
5%, Series D (Insured; MBIA and SBPA; Credit Suisse) (a) . . . . . . . . . . . . . 2,400,000 2,400,000
(Falmouth Assistance For Living) 3.85%, Series A (LOC; Bank of Boston) (a) . . . . . . 4,900,000 4,900,000
(Hallmark Health Systems) 3.85%, Series B (Insured; FSA and LOC; Fleet Bank) (a) . . . 3,000,000 3,000,000
(Harvard University):
3.95%, Series Q (Guaranteed by; Harvard University) (a) . . . . . . . . . . . . . . 100,000 100,000
3.95%, Series I (Guaranteed by; Harvard University) (a) . . . . . . . . . . . . . . 3,485,000 3,485,000
3.95%, Series I (Guaranteed by; Harvard University) (a) . . . . . . . . . . . . . . 1,850,000 1,850,000
(Partners Healthcare Systems) 4%, Series P-2 (Insured; FSA and SBPA;
Bayerische landesbank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400 3,400,000
(Wellesley College) 3.85%, Series B (Guaranteed by; Wellesley College) (a) . . . . . . 4,015,000 4,015,000
(Williams College) 3.70%, Series E (Guaranteed by; Williams College) (a) . . . . . . . 2,995,000 2,995,000
Massachusetts Finance Agency, Housing Revenue, VRDN:
4.11% (Insured; AMBAC and LOC; Merrill Lynch and Co.) (a) . . . . . . . . . . . . . . . 1,415,000 1,415,000
Refunding:
3.80%, Series A (LOC; Federal National Management Association) (a) . . . . . . . . . . 3,000 3,000,000
(Harbor Point) 3.80%, Series A (Insured; GNMA and SBPA; Republic National Bank) (a) . 4,800 4,800,000
Massachusetts Industrial Finance Agency:
Industrial Revenue, VRDN, Refunding
(Quamco Inc.) 3.90%, Series A (LOC; Bank of Nova Scotia) (a) . . . . . . . . . . . . . 1,840,000 1,840,000
PCR, VRDN (Holyoke Water Power Co.):
3.75% (LOC; Union Bank of Switzerland) (a) . . . . . . . . . . . . . . . . . . . . . . 4,600,000 4,600,000
Refunding 3.70%, Series A (LOC; Canadian Imperial Bank of Commerce) (a) . . . . . . . 2,007,000 2,007,000
Prerefunded (College of Holy Cross)
7%, 7/1/99 (Escrowed in; U.S. Government Securities) . . . . . . . . . . . . . . . . . 2,000,000 2,058,814
Revenue:
(Springfield College Project) 7.80%, 10/1/99 (Escrowed in; U.S. Government Securities) . . 1,100,000 1,168,049
(Tufts University) 3.80%, Series H, 2/15/99 . . . . . . . . . . . . . . . . . . . . . 500,000 499,978
VRDN:
(Eastern Nazarene College) 3.90% (LOC; State Street Bank and Trust Co.) (a) . . . . 1,000,000 1,000,000
(Goddard House) 3.85% (LOC; Fleet Bank) (a) . . . . . . . . . . . . . . . . . . . . 1,765,000 1,765,000
(Gordon College) 3.90% (LOC; State Street Bank and Trust Co.) (a) . . . . . . . . 2,000,000 2,000,000
(Heritage At Dartmouth) 3.95% (LOC; Bank of Boston) (a) . . . . . . . . . . . . . . 1,500,000 1,500,000
(Milton Academy) 3.80% (Liquidity; Fleet Bank and Insured; MBIA) (a) . . . . . . . 1,100,000 1,100,000
(Mount IDA College) 3.90% (LOC; Credit Local de France) (a) . . . . . . . . . . . . 1,900,000 1,900,000
Refunding (Showa Womens Institute) 5% (LOC; Lloyds Bank) (a) . . . . . . . . . . . 6,430,000 6,430,000
(Society for the Prevention of Cruelty) 3.65% (LOC; Fleet Bank) (a) . . . . . . . . 1,000,000 1,000,000
Massachusetts Municipal Wholesale Electric Company, Power Supply Systems
Revenue, VRDN
3.90%, Series C (BPA; Credit Suisse and Insured; MBIA) (a) . . . . . . . . . . . . . . . 2,000,000 2,000,000
Massachusetts Port Authority, Revenue:
4.50%, Series A, 7/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,618
CP, 3.20%, Series B, 1/13/99 (LOC; Westdeutsche Landesbank) . . . . . . . . . . . . . . 1,000,000 1,000,000
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- _____________ ____________
Massachusetts Turnpike Authority, Revenue
5%, Series A, 6/1/99 (LOC; Massachusetts State) . . . . . . . . . . . . . . . . . . . . $ 2,205,000 $ 2,222,993
Massachusetts Water Resource Authority:
CP:
3.10%, 2/19/99 (LOC; Morgan Guaranty Trust Co.) . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
3.05%, 1/20/99 (LOC; Morgan Guaranty Trust Co.) . . . . . . . . . . . . . . . . . . . 500,000 500,000
3.10%, 2/16/99 (LOC; Morgan Guaranty Trust Co.) . . . . . . . . . . . . . . . . . . . 6,500,000 6,500,000
VRDN 3.65%, Series A (Insured; AMBAC and SBPA; Bank of Nova Scotia) (a) . . . . . . . . 1,000,000 1,000,000
Town of Newton, Revenue 4.50%, 3/15/99 . . . . . . . . . . . . . . . . . . . . . . . . . . 350,000 350,613
Town of North Attleborough, Revenue 4.25%, 3/1/99 (Insured; AMBAC) . . . . . . . . . . . . 1,010,000 1,010,905
Town of Norton, Revenue 4.10, 10/1/998 (Insured; FGIC) . . . . . . . . . . . . . . . . . . 1,295,000 1,301,606
Town of Stoughton, Revenue 5.85%, 2/15/99 (Insured; MBIA). . . . . . . . . . . . . . . . . 1,215,000 1,218,281
Town of Somerville, Revenue 4%, 6/15/99 (Insured; MBIA). . . . . . . . . . . . . . . . . . 250,000 250,270
Town of Springfield, Revenue 4.25%, 11/15/99 (Insured; FSA). . . . . . . . . . . . . . . . 1,810,000 1,827,698
Town of Webster, Revenue 5.90%, 9/1/99 (Insured; AMBAC). . . . . . . . . . . . . . . . . . 250,000 254,371
Town of Weymouth, Revenue 5%, 11/1/99 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . 1,137 1,155,514
_____________
TOTAL INVESTMENTS (cost $140,414,772). . . . . . . . . . . . . . . . . . . . . . . . . . . 99.9% $140,414,890
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1% $ 189,663
_______ _____________
NET ASSETS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $140,604,553
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
BAN Bond Anticipation Notes MBIA Municipal Bond Investors Assurance
BPA Bond Purchase Agreement Insurance Corporation
CP Commercial Paper PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company SBPA Standby Bond Purchase Agreement
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
GNMA Government National Mortgage Association
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
_______ ________ _________________ ___________________
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 83.0%
AAA/AA (b) Aaa/Aa (b) AAA/AA (b) 17.0%
_______
100.0%
_______
</TABLE>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a)Securities payable on demand. Variable interest rate-subject to periodic
change.
(b)Notes which are not F, MIG or SP rated are represented by bond ratings of
the issuers.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $140,414,772 $140,414,890
Interest receivable . . . . . . . . . . . . . . . . . . . 814,749
_____________
141,229,639
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 38,278
Cash overdraft due to Custodian . . . . . . . . . . . . . 586,121
Interest payable--Note 3 . . . . . . . . . . . . . . . . 687
_____________
625,086
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,604,553
_____________
REPRESENTED BY:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . $140,608,662
Accumulated net realized gain (loss) on investments . . . (4,227)
Accumulated net unrealized appreciation (depreciation)
of investments . . . . . . . . . . . . . . . . . . . . 118
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,604,553
_____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . . . . . . . . . 140,613,610
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
_______
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED DECEMBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $2,096,953
EXPENSES: Management Fee--Note 2(a) . . . . . . . . . . . . . . . . $ 284,095
Interest expenses--Note 3 . . . . . . . . . . . . . . . . 2,793
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 286,888
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,810,065
NET UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . . . . 90
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $1,810,155
___________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS SIX MONTHS ENDED DECEMBER 31, 1998
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
_________________ _________________
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,810,065 $ 3,714,092
Net unrealized appreciation (depreciation) of investments . . . . . . . . . . . . . 90 28
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . 1,810,155 3,714,120
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,810,065) (3,714,092)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . 155,050,966 288,336,710
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 743,425 1,359,573
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (126,583,732) (268,566,912)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . . . 29,210,659 21,129,371
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . 29,210,749 21,129,399
NET ASSETS
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,393,804 90,264,405
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,604,553 $111,393,804
_____________ _____________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Six Months Ended
December 31, 1998 Year Ended June 30,
_____________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996(1) 1995(2) 1994(3,4)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .015 .031 .031 .033 .032 .019(5)
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.015) (.031) (.031) (.033) (.032) (.019)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . 2.90%(6) 3.17% 3.12% 3.31% 3.25% 1.97%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . .45%(6) .47% .37% .35% .35% .56%(7)
Ratio of net investment income
to average net assets . . . . . . . . . . . . 2.87%(6) 3.15% 3.09% 3.24% 3.19% 1.94%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . -- -- .09% .02% -- --
Net Assets, end of period (000's Omitted) . . . . $140,605 $111,394 $90,264 $52,317 $25,485 $19,830
</TABLE>
- ------------------------
(1)Effective May 8, 1996, the Fund's Investor class shares became shares of
Dreyfus Massachusetts Municipal Money Market Fund, the Funds Class R
designation was eliminated and the Fund became a single class Fund.
(2)Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund's investment manager.
(3) Effective April 4, 1994, the Investment Class was reclassified as the Trust
Shares. Effective October 17, 1994 Trust shares were redesignated as Class R
shares. The above is based upon an Investment Class share outstanding from July
1, 1993 to April 3, 1994 and a Trust share outstanding from April 4, 1994 to
October 16, 1994.
(4)Prior to April 4, 1994, The Boston Company Advisors, Inc. served as the
Fund's investment Adviser. From April 4, 1994 through
October 16, 1994, Mellon Bank, N.A. served as the Fund's investment Manager.
(5)Net investment income per share before waiver of fees and/or reimbursement
of expenses by the investment adviser and/or custodian and/or transfer agent for
the year ended June 30, 1994 was $.019.
(6) Annualized.
(7)Annualized expense ratios before voluntary waiver of fees and/or
reimbursement of expenses by the investment adviser and/or custodian and/or
transfer agent for the year ended June 30, 1994 was .64%.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC Massachusetts Municipal Money Market Fund (the "Fund") is a
separate non-diversified series of The Dreyfus/Laurel Tax-Free Municipal Funds
(the "Trust" ) which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company currently offering five series including the Fund. The
Fund' s investment objective is to provide a high level of current income exempt
from Federal income taxes and Massachusetts personal income taxes to the extent
consistent with the preservation of capital and the maintenance of liquidity by
investing in high quality, short-term municipal securities. The Dreyfus
Corporation (the "Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A. ("Mellon Bank"). Premier Mutual Fund
Services, Inc. acts as the distributor of the Fund's shares.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost in
accordance with Rule 2a-7 of the Act, which has been determined by the Fund's
Board of Trustees to represent the fair value of the Fund's investments.
It is the Fund's policy to maintain a continuous net asset value per share of
$1.00 for the Fund; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value per share of $1.00.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Interest income, adjusted for amortization
of premiums and original issue discounts on investments, is earned from
settlement date and recognized on the accrual basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Cost of
investments represents amortized cost. Under the terms of the custody agreement,
the Fund received net earnings of credits $4,163 during the period ended
December 31, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
(C) CONCENTRATION OF RISK: The Fund follows an investment policy of investing
primarily in municipal obligations of one state. Economic changes affecting the
commonwealth and certain of its public bodies and municipalities may affect the
ability of issuers within the state to pay interest on, or repay principal of,
municipal obligations held by the Fund.
(D) DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, it is
the policy of the Fund not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $4,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to June 30, 1998. If not
applied, $1,000 of the carryover expires in fiscal 1999, $2,000 expires in
fiscal 2000 and $1,000 expires in fiscal 2002. As a result of the expiration of
a prior year capital loss carryover $7,000 was reclassified from accumulated net
realized loss to additional paid in capital.
At December 31, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
DREYFUS BASIC MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2--INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) INVESTMENT MANAGEMENT FEE: Pursuant to an Investment Management Agreement
with the Manager, the Manager provides or arranges for one or more third parties
and/or affiliates to provide investment advisory, administrative, custody, fund
accounting and transfer agency services to the Fund. The Manager also directs
the investments of the Fund in accordance with its investment objective,
policies and limitations. For these services, the Fund is contractually
obligated to pay the Manager a fee, calculated daily and paid monthly, at the
annual rate of .45% of the value of the Fund's average daily net assets. Out of
its fee, the Manager pays all of the expenses of the Fund except brokerage fees,
taxes, interest, fees and expenses of non-interested Trustees (including counsel
fees) and extraordinary expenses. In addition, the Manager is required to reduce
its fee in an amount equal to the Fund's allocable portion of fees and expenses
of the non-interested Trustees (including counsel). Effective July 1, 1998, each
trustee receives $40,000 per year, plus $5,000 for each joint Board meeting of
The Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free Municipal Funds and
The Dreyfus/Laurel Funds Trust (the "Dreyfus/Laurel Funds") attended, $2,000 for
separate committee meetings attended which are not held in conjunction with a
regularly scheduled board meeting and $500 for Board meetings and separate
committee meetings attended that are conducted by telephone and is reimbursed
for travel and out-of-pocket expenses. The Chairman of the Board receives an
additional 25% of such compensation (with the exception of reimbursable amounts)
. In the event that there is a joint committee meeting of the Dreyfus/Laurels
Funds and the Dreyfus High Yield Strategies Fund, the $2,000 fee will be
allocated between the Dreyfus/Laurel Funds and the Dreyfus High Yield Strategies
Fund. These fees and expenses are charged and allocated to each series based on
net assets. Amounts required to be paid by the Trust directly to the
non-interested Trustees, that would be applied to offset a portion of the
management fee payable to the Manager, are in fact paid directly by the Manager
to the non-interested Trustees.
Prior to July 1, 1998, each director received $27,000 per year, $1,000 for
each Board meeting attended and $750 for each Audit Committee meeting attended
and was reimbursed for travel and out-of-pocket expenses. The Chairman of the
Board received and additional $25,000 per year. These fees pertained to the
Dreyfus/Laurel Funds. (The $1,000 attendance fee and reimbursement of meeting
expenses were also borne pro rata by Dreyfus High Yield Strategies Fund). These
fees and expenses were charged and allocated to each series based on net assets.
Amounts required to be paid by the Company directly to the non-interested
Trustees, that would be applied to offset a portion of the management fee
payable to the Manager, were in fact paid directly by the Manager to the
non-interested Trustees.
NOTE 3--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $100 million line
of credit primarily to be utilized for temporary or emergency purposes,
including the financing of redemptions. Interest is charged to the Fund at rates
which are related to the Federal Funds rate in effect at the time of borrowings.
The average daily amount of borrowings outstanding during the period ended
December 31, 1998 was approximately $93,478 with a related weighted average
annualized interest rate of 5.93%.
[This page intentionally left blank]
[reg.tm logo]
(reg.tm)
DREYFUS BASIC MASSACHUSETTS
MUNICIPAL MONEY MARKET FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 715SA9812
BASIC Massachusetts
Municipal
Money Market Fund
Semi-Annual Report
December 31, 1998
YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of the Dreyfus BASIC New York
Municipal Money Market Fund for the six-month period ended December 31, 1998.
Your Fund produced an annualized yield of 2.78% and, after taking into account
the effect of compounding, the annualized effective yield was 2.81%.*
THE ECONOMY
During the last six months of 1998, the main regions of the world had very
different economic fundamentals. The U.S. continued to enjoy a strong economy
near full employment, with unemployment only slightly above 4%. World economic
weakness generated powerful enough disinflationary forces that the Fed acted
instead to ease credit beginning in September. After many years of subpar
economic growth, continental Europe moved into a sustained economic expansion.
The overall European economy benefited as interest rates in peripheral countries
such as Spain and Italy fell, approaching the lower levels established by
Germany, on the eve of currency unification. Unlike the U.S., Europe has
substantial excess capacity of productive plant and labor. In Asia, weak
economies were pervasive as a result of a financial crisis. The Latin American
economies weakened in turn as the financial stresses spread throughout that
region. On balance, there was a substantial weakening of the world economy over
the period, moderated mainly by the American consumer's role as "spender of last
resort."
A main influence on the U.S. economy was the foreign financial crisis and
consequent cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The fall
in inflation left more of the growth in consumer income with which to buy goods
and services. Thus, consumers benefited from a combination of good growth in
income after inflation, a strong labor market, and increases in the prices of
assets they owned, including bonds, stocks and real estate. In a sense, 1998 was
a year of disinflationary boom in the U.S., as above-trend economic growth
coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis from Japan, emerging
market countries and overextended financial institutions. Excess capacity
persists in many worldwide industries after years of high capital spending
followed by the onset of a worldwide weakening in demand. Fortunately, the U.S.
has led the world in making the transition away from the old manufacturing
industries to the new growth industries, such as biotechnology, software,
computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relaxed.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
During the second half of 1998, international economic instability highlighted
by the Russian government defaulting on their debt and worsening conditions in
Asia and South America resulted in strong demand for United States Treasury
securities. As a result of this turmoil and subdued inflation in the United
States, the Federal Reserve lowered the Federal Funds rate three times in the
last four months of 1998, from 5.50% to 4.75%. (The Federal Funds rate is the
rate of interest that banks charge each other for overnight loans.) Accordingly,
interest rates in general declined.
During the period, the yield on one-year tax-exempt securities ranged from a
high of 3.45% to a low of 2.75%, declining overall by 60 basis points by the end
of the reporting period to 2.85%. The yield on the one-year Treasury Note ended
the reporting period at 4.62% compared to 5.38% as of June 30. Heavy investor
demand was directly attributable to the high volatility in the financial
markets. Assets in tax-exempt money funds rose by approximately $18 billion over
the reporting period. Over the same period, new-issue supply in the tax-exempt
note market declined because of the improved fiscal positions of most
municipalities. Total issuance of new tax-exempt notes for 1998 was only $34
billion compared to $46 billion the previous year.
New York' s credit quality continued stable and was rated "A" by Moody's and
Standard & Poor' s. While the state's economic recovery has been steady, it has
lagged the nation in many respects. Employment growth has improved but was a
tepid 1.9% . Due to increased retention efforts by the Pataki administration,
many large employers who had been considering leaving the state remained.
However, the job picture for non-FIRE (finance, insurance, real estate) firms is
not overwhelming. So-called "FIRE jobs" continue to grow strongly, however. This
employment sector represents 17% of state income, well above national averages.
Unemployment rates are in the range of 5.8% versus 4.3% for the nation. Personal
income growth, having lagged the nation in 1990-96, exceeded it in 1997 and
should be at about the national average for 1998. Per capita income remained
very high, at about 120% of the national average.
There has been measurable balance sheet improvement for the state. Over the
fiscal years 1996-98, the state recorded a cumulative surplus of $3.7 billion
which eliminated the accumulated deficit. For fiscal 1999, General Fund spending
is expected to rise 7%, well above increases in recent years. This new spending
will be directed toward education, health and welfare, and state employee salary
increases. We expect continued stability in New York's credit condition based on
its steady economy and acceptable financial performance, despite the increased
level of future spending.
The average portfolio maturity of the Fund was extended slightly over the
reporting period to help protect the Fund from declining yields. The
weighted-average maturity of the Fund was 40 days at year-end compared to 38
days as of June 30.
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope that you find them informative.
Please know that we greatly appreciate your continued confidence in the Fund and
in The Dreyfus Corporation.
Very truly yours,
[John Flahive signature]
John Flahive
Portfolio Manager
January 15, 1999
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments--99.2% Amount Value
- ------------------------------------------------------- _____________ _____________
New York--98.9%
Albany Industrial Development Agency, IDR, VRDN (Newkirk Products Inc., Project
<S> <C> <C>
4%, Series A (LOC; Fleet Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,620,000 $ 1,620,000
Broome County Industrial Development Agency, IDR, Refunding, VRDN
(Bing Realty Co. Project) 3.95% (LOC; Meridian Bank Corp.) (a) . . . . . . . . . . . . . 1,600,000 1,600,000
Chemung County Industrial Development Agency, Civic Facility Revenue, VRDN
(Arnot Ogden Medical Center) 3.80% (LOC; Chase Manhattan Bank) (a) . . . . . . . . . . . 2,530,000 2,530,000
Erie County Water Authority, Water Revenue, VRDN
3.80%, Series A (Insured; AMBAC and SBPA; Union Bank of Switzerland) (a) . . . . . . . . 2,000,000 2,000,000
Great Neck North Water Authority, Water System Revenue, Refunding, VRDN
4% Series A (Insured; FGIC and SBPA; FGIC) (a) . . . . . . . . . . . . . . . . . . . . . 8,600,000 8,600,000
Jefferson County Industrial Development Agency, IDR, VRDN (Watertown-Carthage
IV)
3.15% (LOC; First National Bank of Chicago) (a) . . . . . . . . . . . . . . . . . . . . 100,000 100,000
Long Island Power Authority, Electric System Revenue:
CP 2.95%, Sub-Series 4, 2/11/99 (LOC: Bayerische Landesbank and
Westdeutsche Landesbank) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 7,000,000
VRDN 4.85%, Sub-Series 6 (LOC: ABN-Amro Bank and Morgan Guaranty Trust Co.) (a) . . . . 300,000 300,000
Metropolitan Transportation Authority, Transport Facility Revenue, CP
3.10%, Sub-Series B, 1/15/99 (LOC; ABN-Amro Bank) . . . . . . . . . . . . . . . . . . . 9,000,000 9,000,000
Monroe County, Public Improvement:
4.20%, 6/1/99 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,450,000 1,457,104
Refunding 4.35%, 6/1/99 (Insured; MBIA). . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,011,020
Montgomery Industrial Development Agency, IDR, VRDN (Service Merchandise Co.)
3.50% (LOC; Canadian Imperial Bank of Commerce) (a) . . . . . . . . . . . . . . . . . . 200,000 200,000
Municipal Assistance Corporation:
Refunding 5.50%, Series J, 7/1/99 (LOC; Municipal Assistance Corp.) . . . . . . . . . . 3,000,000 3,029,829
VRDN:
3.80%, Series K-1 (LOC: Municipal Assistance Corp and Westdeutsche Landesbank) (a) . . 13,600,000 13,600,000
4%, Series F, (Insured; AMBAC and LOC: Bank of Nova Scotia and
National Westminster Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
Nassau County, General Improvement 4%, Series Y, 3/1/99 (Insured; FGIC). . . . . . . . . . 9,153,000 9,159,313
New York City:
CP:
3.05%, Series B-9, 1/7/99 (LOC; Chase Manhattan Bank) . . . . . . . . . . . . . . . . 1,000,000 1,000,000
3.10%, Series J-2, 1/7/99 (LOC; Commerz Bank) . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
3.20%, Series H-4, 1/11/99 (Insured; AMBAC and Liquidity Facility; Krediet Bank) . . . 8,500,000 8,500,000
3.10%, Series B-9, 2/10/99 (LOC; Chase Manhattan Bank) . . . . . . . . . . . . . . . . 3,000,000 3,000,000
3.10%, Series J-3, 2/10/99 LOC; Morgan Guaranty Trust Co.) . . . . . . . . . . . . . . 3,500,000 3,500,000
2.90%, Series J-2, 2/11/99 (LOC; Commerz Bank) . . . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
Refunding 2.90%, Series H-3, 2/11/99 (LOC; FSA and
SBPA; State Street Bank and Trust Co.) . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
VRDN:
4%, Sub-Series A-6 (LOC; Landesbank Hessen) (a) . . . . . . . . . . . . . . . . . . . 2,530,000 2,530,000
4.05%, Sub-Series F-2 (LOC; Toronto-Dominion Bank) (a) . . . . . . . . . . . . . . . . 8,900,000 8,900,000
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New York (continued)
New York City Health and Hospital Corporation, Revenue, VRDN (Health Systems):
3.90%, Series A (LOC; Morgan Guaranty Trust Co.) (a) . . . . . . . . . . . . . . . . . . $ 14,700,000 $ 14,700,000
3.80%, Series D (LOC; Bank of Nova Scotia) (a) . . . . . . . . . . . . . . . . . . . . . 12,000,000 12,000,000
3.95%, Series B (LOC; Canadian Imperial Bank of Commerce) (a) . . . . . . . . . . . . . 4,900,000 4,900,000
New York City Housing Development Corporation, VRDN:
Mortgage Revenue (Columbus Apartments) 3.65%, Series A (LOC; FNMA) (a) . . . . . . . . . 200,000 200,000
MFMR:
(Columbus) 4%, Series A (LOC; Citibank) (a) . . . . . . . . . . . . . . . . . . . . . 900,000 900,000
(West 89th Street) 3.75%, Series A (LOC; Midland Bank) (a) . . . . . . . . . . . . . . 12,500,000 12,500,000
Multi-Family Rental Housing Revenue:
(Carnegie Park) 3.75%, Series A (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . 2,200,000 2,200,000
(Columbus Green) 3.75%, Series A (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . 1,375,000 1,375,000
(Monterey) 3.80%, Series A (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . . . . 12,700,000 12,700,000
New York City Municipal Water Finance Authority:
CP:
3.25% Series 5-A, 1/21/99 (LOC: Bayerische Landesbank, Landesbank Hessen and
Westdeutsche Landesbank) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 7,000,000
3%, Series 3, 2/26/99 (LOC: Bank of Nova Scotia, Commerez Bank and
Toronto-Dominion Bank) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 9,000,000
Water and Sewer Systems Revenue, VRDN:
5.10%, Series A (Insured; FGIC and SBPA; FGIC) (a) . . . . . . . . . . . . . . . . . . 100,000 100,000
5.20%, Series C (Insured; FGIC and SBPA; FGIC) (a) . . . . . . . . . . . . . . . . . . 2,900,000 2,900,000
New York City Trust, Cultural Resource Revenue, VRDN:
(Museum of Broadcasting)
4% (LOC; Krediet Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 300,000
Refunding (American Museum of National History)
3.80%, Series A (Insured; MBIA and SBPA; Credit Suisse) (a) . . . . . . . . . . . . . 3,800,000 3,800,000
New York State Dormitory Authority, Revenues:
CP (Memorial Sloan Kettering)
3.05%, Series D, 2/16/99 (LOC; Chase Manhattan Bank) . . . . . . . . . . . . . . . . . 4,395,000 4,395,000
Refunding (Montefiore Medical Center)
4.50%, 2/1/99 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,160,000 3,162,391
VRDN:
(Metropolitan Museum of Art):
3.85%, Series A (Guaranty; Metropolitan Museum of Art) (a) . . . . . . . . . . . . 3,100,000 3,100,000
3.85%, Series B (Guaranty; Metropolitan Museum of Art) (a) . . . . . . . . . . . . 1,760,000 1,760,000
(New York Public Library)
3.80%, Series B (LOC; Canadian Imperial Bank of Commerce) (a) . . . . . . . . . . . 3,800,000 3,800,000
New York State Energy Research and Development Authority:
PCR:
(LILCO Project)
3.58%, Series A, 3/1/99 (LOC; Deutsche Bank) . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
(New York State Electric and Gas):
3.58%, Series A, 3/15/99 (LOC; Morgan Guaranty Trust Co.) . . . . . . . . . . . . . 2,000,000 2,000,000
3.20%, Series B, 10/15/99 (LOC; Union Bank of Switzerland) . . . . . . . . . . . . 3,250,000 3,250,000
3%, Series D, 12/1/99 (LOC; Union Bank of Switzerland) . . . . . . . . . . . . . . 7,000,000 7,000,000
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New York (continued)
New York State Energy Research and Development Authority (continued):
VRDN:
Gas Facilities Revenue (Brooklyn Union Gas Project):
3.80%, Series A-2 (Insured; MBIA and SBPA; United Bank of Switzerland) (a) . . . . $ 4,700,000 $ 4,700,000
4%, Series A-1 (Insured; MBIA and SBPA; United Bank of Switzerland) (a) . . . . . . 4,900,000 4,900,000
PCR (Central Hudson Gas and Electric)
4%, Series B (LOC; Deutsche Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . 5,700,000 5,700,000
New York State Environmental Facilities Corporation, SWDR, CP
(General Electric Co. Project):
3%, Series A, 1/12/99 (LOC; General Electric Co.) . . . . . . . . . . . . . . . . . . 8,000,000 8,000,000
3%, Series A, 1/14/99 (LOC; General Electric Co.) . . . . . . . . . . . . . . . . . . 8,150,000 8,150,000
3.05%, Series A, 1/14/99 (LOC; General Electric Co.) . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
New York State Environmental Quality:
3%, Series G, 12/8/99 (LOC; Westdeutsche Landesbank). . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
CP 3.20%, Series A, 1/13/99 (LOC: Bayerische Landesbank, Landesbank Hessen and
Morgan Guaranty Trust Co.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,000,000
New York State Housing Finance Agency, VRDN:
HR (East 84th Street) 3.85%, Series A (LOC; Hypovereins Bank) (a) . . . . . . . . . . . 4,600,000 4,600,000
Revenue:
(250 West 50th Street) 3.75%, Series A (LOC; Fleet Bank) (a) . . . . . . . . . . . . . 5,000,000 5,000,000
(Normandie Court I Project) 4.10% (LOC; Landesbank Hessen) (a). . . . . . . . . . . . 800,000 800,000
(Service Contract Obligation) 3.90%, Series A (LOC; Commerz Bank) (a) . . . . . . . . 6,000,000 6,000,000
New York State Job Development Authority, VRDN
4%, Series A-1 Thru A-13 (Guaranty; New York State and SBPA: Bayerische
Landesbank
and Morgan Guaranty Trust Co.) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
New York State Local Governmental Assistance Corporation, VRDN:
3.80%, Series F (LOC; Toronto-Dominion Bank) (a) . . . . . . . . . . . . . . . . . . . . 4,500,000 4,500,000
3.85%, Series B (LOC; Krediet Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . . 7,800,000 7,800,000
3.95%, Series E (LOC; Canadian Imperial Bank of Commerce) (a) . . . . . . . . . . . . . 1,900,000 1,900,000
New York State Medical Care Facilities Finance Agency, Revenue:
Prerefunded (Mental Health Improvement Services)
7.29%, Services C, 8/15/99 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . 1,100,000 1,150,508
VRDN:
(Lenox Hill Hospital)
3.80%, Series A (LOC; Chase Manhattan Bank) (a) . . . . . . . . . . . . . . . . . . 500,000 500,000
(Pooled Equipment Loan Program II)
3.90%, Series A (LOC; Chase Manhattan Bank) (a) . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
Niagara Falls Bridge Commission, Toll Revenue, VRDN
3.25%, Series A (Insured; FGIC and SBPA; Credit Locale de France) (a) . . . . . . . . . 6,000,000 6,000,000
Onondaga County Industrial Development Agency, IDR, VRDN
(First Republic Corp. American)
3.80% (LOC; Chase Manhattan Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 300,000
Patchogue-Medford Union Free School District 4%, 6/26/99 . . . . . . . . . . . . . . . . . 3,200,000 3,206,357
Rensselaer County Industrial Development Agency, Civic Facility, Revenue, VRDN
(Polytech Institute Project) 3.85%, Series A (LOC; Rennselaer Polytech Institute) (a) . 4,400,000 4,400,000
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
New York (continued)
Rochester, BAN:
4%, Series I, 3/9/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,000,000 $ 8,006,376
3.10%, Series II, 10/28/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,004,772
Saint Lawrence Industrial Development Agency, Environment Improvement Revenue,
VRDN
(Reynolds Metals Co. Project) 3.85% (LOC; Royal Bank of Canada) (a) . . . . . . . . . . 1,200,000 1,200,000
Schenectady Industrial Development Agency, VRDN (Union College Project)
3.85%, Series A (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,506,000 4,506,000
South Huntington Union Free School District, TAN 3.90%, 6/30/99. . . . . . . . . . . . . . 2,000,000 2,002,855
Triborough Bridge and Tunnel Authority, Revenue, Refunding, Prerefunded
General Purpose:
7%, Series P, 1/1/99 (Escrowed in; U.S. Government Securities) . . . . . . . . . . . . 1,000,000 1,015,000
7.50%, Series O, 1/1/99 (Escrowed in; U.S. Government Securities) . . . . . . . . . . 1,485,000 1,514,700
7.70%, Series O, 1/1/99 (Escrowed in; U.S. Government Securities) . . . . . . . . . . 2,500,000 2,537,500
Yonkers Industrial Development Agency, Civil Facility Revenue, VRDN
(Consumers Union Facility)
4% (Insured; AMBAC and SBPA; Credit Locale de France) (a) . . . . . . . . . . . . . . . 3,500,000 3,500,000
U.S. Related--.3%
Commonwealth of Puerto Rico Highway and Transportation Authority, Transportation
Revenue
VRDN 3.50%, Series A (Insured; AMBAC and SBPA; Bank of Nova Scotia) (a) . . . . . . . . 900,000 900,000
_____________
TOTAL INVESTMENTS (cost $337,473,725). . . . . . . . . . . . . . . . . . . . . . . . . . . 99.2% $337,473,725
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8% $ 2,891,611
_______ _____________
NET ASSETS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $340,365,336
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
BAN Bond Anticipation Notes Insurance Corporation
CP Commercial Paper MFMR Multi Family Mortgage Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FNMA Federal National Mortgage Association SBPA Standby Bond Purchase Agreement
FSA Financial Security Assurance SWDR Solid Waste Disposal Revenue
HR Hospital Revenue TAN Tan Anticipation Notes
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ _________________ ___________________
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 89.3%
AAA/AA ( b) Aaa/Aa (b) AAA/AA ( b) 7.5
Not Rated (c) Not Rated (c) Not Rated (c) 3.2
_______
100.0%
_______
</TABLE>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a)Securities payable on demand. Variable interest rate--subject to periodic
change.
(b)Notes which are not F, MIG or SP rated are represented by bond ratings of
the issuers.
(c)Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those rated
securities in which the Fund may invest.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $337,473,725 $337,473,725
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 1,136,808
Interest receivable . . . . . . . . . . . . . . . . . . . 1,887,365
_____________
340,497,898
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 131,799
Interest payable--Note 3 . . . . . . . . . . . . . . . . 763
_____________
132,562
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $340,365,336
_____________
REPRESENTED BY:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . $340,365,346
Accumulated net realized gain (loss) on investments . . . (10)
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $340,365,336
_____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . . . . . . . . . 340,365,346
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
______
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED DECEMBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $5,620,500
EXPENSES: Management fee--Note 2 . . . . . . . . . . . . . . . . . $ 783,439
Interest expense--Note 3 . . . . . . . . . . . . . . . . 5,096
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 788,535
___________
INVESTMENT INCOME--NET, representing net increase in net assets
resulting from operations . . . . . . . . . . . . . . . . $4,831,965
___________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
__________________ __________________
OPERATIONS:
Investment income-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,831,965 $ 9,857,281
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,831,965) (9,857,281)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . . --- (1,034)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,831,965) (9,858,315)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,251,954 376,447,696
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,431,136 9,002,552
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (150,806,226) (323,504,736)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . . . 5,876,864 61,945,512
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . 5,876,864 61,944,478
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334,488,472 272,543,994
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $340,365,336 $334,488,472
_____________ _____________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Six Months Ended Period Ended Period Ended
December 31, 1998 Year Ended June 30 June 30, November 30,
__________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996(1) 1995(2) 1994(2)(4) 1993(2)
__________ ______ ______ ______ ______ ______ ______
Net asset value, beginning
<S> <C> <C> <C> <C> <C> <C> <C>
of period . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . .014 .031 .031 .031 .029 .012 .021
______ ______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment
income--net . . . . . . . . . (.014) (.031) (.031) (.031) (.029) (.012) (.021)
______ ______ ______ ______ ______ ______ ______
Net asset value, end of period . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . 2.80%(5) 3.14% 3.11% 3.14% 2.95% 1.23% 2.15%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses
to average net assets . . . . .45%(5) .45% .41% .43% .60% .44%(5) .31%
Ratio of net investment income
to average net assets . . . . 2.78%(5) 3.09% 3.08% 3.43% 2.97% 2.12%(5) 2.13%
Decrease reflected in above
expense ratios due to
undertakings by the Manager . -- -- .04% .09% -- .53%(5) .98%
Net Assets, end of period
(000's Omitted) . . . . . . . $340,365 $334,488 $272,544 $156,491 $21,739 $8,011 $9,356
</TABLE>
- ------------------------
(1) Effective December 8, 1995, the Fund's Investor shares and Class R shares
were eliminated and the Fund became a single class Fund without a class
designation. The Financial Highlights for the fiscal year ended June 30, 1996
were calculated using the performance of an Investor share outstanding from July
1, 1995 to December 7, 1995, and the performance of a Fund share outstanding
from December 8, 1995 to June 30, 1996.
(2) On February 1, 1993 exiting 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 and the
Investment Class shares were reclassified as Trust Shares. Effective October 17,
1994 the Trust shares were reclassified as Class R 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 period ended
November 30, 1993 are basd upon a Retail shares outstanding.
(3)Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund's investment manager.
(4)The Fund changed its fiscal year end to June 30. Prior to this, the Fund's
fiscal year was November 30. Prior to April 4, 1994, The Boston Company
Advisors, Inc. served as the Fund' s investment adviser. From April 4, 1994
through October 16, 1994, Mellon Bank, N.A. served as the Fund's investment
manager.
(5)Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC New York Municipal Money Market Fund (the "Fund") is a separate
non-diversified series of The Dreyfus/Laurel Tax-Free Municipal Funds (the
" Trust" ) which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company currently offering five series including the Fund. The
Fund' s investment objective is to provide a high level of current income exempt
from Federal income taxes and New York State and New York City personal income
taxes to the extent consistent with the preservation of capital and the
maintenance of liquidity by investing in high quality, short-term municipal
securities. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual
Fund Services, Inc. is the distributor of the Fund's shares.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities are valued at amortized
cost in accordance with Rule 2a-7 of the Act, which has been determined by the
Fund's Board of Trustees to represent the fair value of the Fund's investments.
It is the Fund's policy to maintain a continuous net asset value per share of
$1.00 for the Fund; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value per share of $1.00.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Interest income, adjusted for amortization
of premiums and original issue discounts on investments, is earned from
settlement date and recognized on the accrual basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Cost of
investments represents amortized cost. Under the terms of the custody agreement,
the Fund received net earnings credits of $1,057 during the period ended
December 31, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
(C) CONCENTRATION OF RISK: The Fund follows an investment policy of investing
primarily in municipal obligations of one state. Economic changes affecting the
state and certain of its public bodies and municipalities may affect the ability
of issuers within the state to pay interest on, or repay principal of, municipal
obligations held by the Fund.
(D) DISTRIBUTIONS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986, as
amended, (the "Code" ). To the extent that net realized capital gain can be
offset by capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
At December 31, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 2--INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
INVESTMENT MANAGEMENT FEE: Pursuant to an Investment Management Agreement
with the Manager, the Manager provides or arranges for one or more third parties
and/or affiliates to provide investment advisory, administrative, custody, fund
accounting and transfer agency services to the Fund. The Manager also directs
the investments of the Fund in DREYFUS BASIC NEW YORK MUNICIPAL MONEY MARKET
FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
accordance with its investment objective, policies and limitations. For these
services, the Fund is contractually obligated to pay the Manager a fee,
calculated daily and paid monthly, at the annual rate of .45% of the value of
the Fund's average daily net assets. Out of its fee, the Manager pays all of the
expenses of the Fund except brokerage fees, taxes, interest, fees and expenses
of non-interested Trustees (including counsel fees) and extraordinary expenses.
In addition, the Manager is required to reduce its fee in an amount equal to the
Fund' s allocable portion of fees and expenses of the non-interested Trustees
(including counsel) . Effective July 1, 1998, each Trustee receives $40,000 per
year, plus $5,000 for each joint Board meeting of The Dreyfus/Laurel Funds,
Inc., The Dreyfus/Laurel Tax-Free Municipal Funds, and The Dreyfus/Laurel Funds
Trust (the "Dreyfus/Laurel Funds" ) attended, $2,000 for separate committee
meetings attended which are not held in conjunction with a regularly scheduled
board meeting and $500 for Board meetings and separate committee meetings
attended that are conducted by telephone and is reimbursed for travel and
out-of-pocket expenses. The Chairman of the Board receives an additional 25% of
such compensation (with the exception of reimbursable amounts). In the event
that there is a joint committee meeting of the Dreyfus/Laurel Funds and the
Dreyfus High Yield Strategies Fund, the $2,000 fee will be allocated between the
Dreyfus/Laurel Funds and the Dreyfus High Yield Strategies Fund. These fees and
expenses are charged and allocated to each series based on net assets. Amounts
required to be paid by the Trust directly to the non-interested Trustees, that
would be applied to offset a portion of the management fee payable to the
Manager, are in fact paid directly by the Manager to the non-interested
Trustees.
Prior to July 1, 1998, each trustee received $27,000 per year, $1,000 for
each Board meeting attended and $750 for each Audit Committee meeting attended
and was reimbursed for travel and out-of-pocket expenses. The Chairman of the
Board received an additional annual fee of $25,000 per year. These fees
pertained to the following funds: The Dreyfus/Laurel Funds, Inc., The
Dreyfus/Laurel Tax-Free Municipal Funds and The Dreyfus/Laurel Funds Trust. (The
$1,000 attendance fee and reimbursement of meeting expenses were also borne pro
rata by Dreyfus High Yield Strategies Fund) . These fees and expenses were
charged and allocated to each series based on net assets. Amounts required to be
paid by the Trust directly to the non-interested Trustees, that would be applied
to offset a portion of the management fee payable to the Manager were in fact
paid directly by the Manager to the non-interested Trustees.
NOTE 3--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $100 million line
of credit primarily to be utilized for temporary or emergency purposes,
including the financing of redemptions. Interest is charged to the Fund at rates
which are related to the Federal Funds rate in effect at the time of borrowings
The average daily amount of borrowings outstanding during the period ended
December 31, 1998 was approximately $176,600 with a related weighted average
annualized interest rate of 5.72%.
[reg.tm logo]
(reg.tm)
DREYFUS BASIC NEW YORK
MUNICIPAL MONEY MARKET FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 316SA9812
BASIC New York
Municipal
Money Market Fund
Semi-Annual Report
December 31, 1998
YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of the Dreyfus BASIC California
Municipal Money Market Fund for the six-month period ended December 31, 1998.
Your Fund produced an annualized yield of 2.66% and, after taking into account
the effect of compounding, the annualized effective yield was 2.70%.*
THE ECONOMY
During the last six months of 1998, the main regions of the world had very
different economic fundamentals. The U.S. continued to enjoy a strong economy
near full employment, with unemployment only slightly above 4%. World economic
weakness generated powerful enough disinflationary forces that the Fed acted
instead to ease credit beginning in September. After many years of subpar
economic growth, continental Europe moved into a sustained economic expansion.
The overall European economy benefited as interest rates in peripheral countries
such as Spain and Italy fell, approaching the lower levels established by
Germany, on the eve of currency unification. Unlike the U.S., Europe has
substantial excess capacity of productive plant and labor. In Asia, weak
economies were pervasive as a result of a financial crisis. The Latin American
economies weakened in turn as the financial stresses spread throughout that
region. On balance, there was a substantial weakening of the world economy over
the period moderated mainly by the American consumer's role as "spender of last
resort."
A main influence on the U.S. economy was the foreign financial crisis and
consequent cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The fall
in inflation left more of the growth in consumer income with which to buy goods
and services. Thus, consumers benefited from a combination of good growth in
income after inflation, a strong labor market, and increases in the prices of
assets they owned, including bonds, stocks and real estate. In a sense, 1998 was
a year of disinflationary boom in the U.S., as above-trend economic growth
coincided with negligible inflation.
The negative effect of Asian weakness was felt in the industrial sector more
than in the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports.
Evidence of a weaker world economy accumulated during 1998 as the financial
stresses continued. A worsened financial crisis occurred between the Russian
default in mid-August and the fallout from the Long Term Capital Management
hedge fund crisis through early October. However, energetic steps were taken to
stabilize the Japanese banks, design a support package for Brazil, ease monetary
policy, and help overinvested financial institutions rebuild their cash
reserves. Indications of a calming of financial fears were evident in the final
months of the year. In any case, there appears to have been a shift in the
priorities of key policymakers from fighting potential inflation to
restimulating future world economic growth.
The global economy survived a triple financial crisis from Japan, emerging
market countries and overextended financial institutions. Excess capacity
persists in many worldwide industries after years of high capital spending
followed by the onset of a worldwide weakening in demand. Fortunately, the U.S.
has led the world in making the transition away from the old manufacturing
industries to the new growth industries, such as biotechnology, software,
computer hardware and the Internet. This contributed to the favorable
combination of low unemployment and low inflation in the U.S., and may yet lead
toward more efficient allocation of capital elsewhere in the world.
As 1998 ended, interest rates set by central banks remained in a downtrend in
most parts of the world including Europe and the U.S. A similar trend had even
begun in many emerging countries, as the stresses of financial crisis relaxed.
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
During the second half of 1998, international economic instability,
highlighted by the Russian government defaulting on their debt and worsening
conditions in Asia and South America, resulted in strong demand for United
States Treasury securities. As a result of this turmoil and subdued inflation in
the United States, the Federal Reserve lowered the Federal Funds rate three
times in the last four months of 1998, from 5.50% to 4.75%. (The Federal Funds
rate is the rate of interest that banks charge each other for overnight loans.)
Accordingly, interest rates in general declined.
During the period, the yield on one-year tax-exempt securities ranged from a
high of 3.45% to a low of 2.75%, declining overall by 60 basis points by the end
of the reporting period to 2.85%. The yield on the one-year Treasury Note ended
the reporting period at 4.62% compared to 5.38% as of June 30. Heavy investor
demand was directly attributable to the high volatility in the financial
markets. Assets in tax-exempt money funds rose by approximately $18 billion over
the reporting period. Over the same period, new-issue supply in the tax-exempt
note market declined because of the improved fiscal positions of most
municipalities. Total issuance of new tax-exempt notes for 1998 was only $34
billion compared to $46 billion the previous year.
California' s robust economic recovery has erased many financial problems
created by the recession in the early 1990s. Economic growth continued to
outpace the national average. This expansion is diversified and broad: virtually
all industries and geographic regions participated. This has resulted in a much
firmer financial position for the state. Yet, while 1998 saw the first positive
fund balances in many years, the state still suffers from a structural imbalance
of mandated expenses that exceed its limited taxing powers. This imbalance could
curtail the current positive budgetary trends. Although rating agencies upgraded
the credit quality of the state in 1998, future upgrades are unlikely due to the
structural imbalance.
The average portfolio maturity of the Fund was extended slightly over the
reporting period to help protect the Fund from declining yields. The weighted
average maturity of the Fund was 45 days at year-end compared to 38 days as of
June 30.
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope that you find them informative.
Please know that we greatly appreciate your continued confidence in the Fund and
in The Dreyfus Corporation.
Very truly yours,
[John Flahive signature]
John Flahive
Portfolio Manager
January 15, 1999
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
<CAPTION>
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments--99.9% Amount Value
- ------------------------------------------------------- ______________ ______________
California--95.6%
Alameda-Contra Costa School Finance Authority, COP, VRDN
(Capital Improvements Financing Project):
<S> <C> <C>
3.70%, Series A (LOC; Canadian Imperial Bank of Commerce) (a) . . . . . . . . . . . . $ 900,000 $ 900,000
3.70%, Series C (LOC; National Westminister Bank) (a) . . . . . . . . . . . . . . . . 1,200,000 1,200,000
Alameda County, MFMR, Refunding, VRDN (Quail)
3.55%, Series A (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 200,000
Alameda County Industrial Development Authority, Revenue, VRDN:
(Dicon Fiberoptics Inc. Project) 4.10%, Series A (LOC; Wells Fargo Bank) (a). . . . . . 525,000 525,000
(Ply Properties Project) 4.10%, Series A (LOC; Wells Fargo Bank) (a) . . . . . . . . . . 5,150,000 5,150,000
(Tool Family Partnership) 3.80%, Series A (LOC; Wells Fargo Bank) (a) . . . . . . . . . 400,000 400,000
Alameda County Union School District, TRAN 4%, 6/30/99 . . . . . . . . . . . . . . . . . . 2,500,000 2,503,560
Anaheim Public Financing Authority, Revenue, (Anaheim Electric Utility Project)
4%, 10/1/99 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000 1,319,970
Azusa, MFHR, Refunding, VRDN (Pacific Glen Apartment Project)
3.80%, (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,700,000 2,700,000
California Economic Development Finance Authority, IDR, VRDN:
(Lion Enterprise Inc., Project) 3.70% (LOC; Bank of America) (a) . . . . . . . . . . . . 1,000,000 1,000,000
(Volk Enterprises Inc., Project) 3.65% (LOC; Harris Trust and Savings Bank) (a) . . . . 500,000 500,000
California Health Facilities Finance Authority, Revenue, Refunding, VRDN:
(Catholic Health Care):
3.60%, Series B (Insured; MBIA and SBPA; Morgan Guaranty Trust Co.) (a) . . . . . . . 300,000 300,000
3.60%, Series C (Insured: MBIA and Liquidity: Rabobank Nederland) (a) . . . . . . . . 2,200,000 2,200,000
(Pooled Loan Program)
3.60%, Series B (Insured; FGIC) (a) . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 200,000
(Scripps Hospital)
3.80%, Series B (Insured; MBIA and LOC; Credit Locale de France) (a) . . . . . . . . . 500,000 500,000
(Sutter / CHS)
5.10%, Series C (Insured: FSA and SBPA; Rabobank Nederland) (a) . . . . . . . . . . . 3,800,000 3,800,000
California Housing Finance Agency, Multi-Family, Revenue, Refunding, VRDN
(Hidden Hills)
3.55%, Series C (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000 450,000
California Pollution Control Financing Authority PCR:
(Chervon USA Inc., Project):
3.06%, 11/15/99 (LOC; Chevron USA Inc.) . . . . . . . . . . . . . . . . . . . . . . . 1,185,000 1,187,526
3.60%, 5/17/99 (LOC; Chevron USA Inc.) . . . . . . . . . . . . . . . . . . . . . . . . 700,000 700,000
3.65%, 6/15/99 (LOC; Chevron USA Inc.) . . . . . . . . . . . . . . . . . . . . . . . . 1,100,000 1,100,239
VRDN, Refunding (Pacific Gas and Electric)
5%, Series C (LOC; Bank of America) (a) . . . . . . . . . . . . . . . . . . . . . . . 500,000 500,000
California Statewide Communities Development Authority, Revenue, COP, VRDN:
(Citrus Valley Health)
4.80%, Series B (Insured: MBIA and SBPA, LOC; Bank of America) (a). . . . . . . . . . 1,500,000 1,500,000
(John Muir/ Mt. Diablo Health)
4.80%, (Insured; AMBAC and Liquidity Facility; Rabobank Nederland) (a) . . . . . . . . 3,000,000 300,000
MFHR (Sunrise of Moraga)
4%, Series G (LOC; Commerzbank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . 755,000 755,000
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- ______________ ______________
California (continued)
California Statewide Communities Development Authority, Revenue, COP, VRDN
(continued):
(North California Retire Officers)
5.05%, Series B (LOC; Dresdner Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . $ 3,100,000 $ 3,100,000
California Statewide Communities Development Corporation, Revenue, VRDN
(Johanson Project)
3.90%, Series E (LOC; California State Teacher Retirement System) (a) . . . . . . . . . 650,000 650,000
State of California:
CP:
2.85%, 2/23/99, Series B (LOC: Credit Suisse, Bayerische Bank,
Landesbank, Morgan Guaranty Trust Co.) . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
2.85%, 1/15/99, Series B (LOC: Credit Suisse, Bayerische Bank,
Landesbank, Morgan Guaranty Trust Co.) . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
(Veterans) 4.07%, Series BJ, 6/1/99. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,001,489
Contra Costa County Water District, CP
3%, Series A, 3/11/99 (LOC; Westdeutsche Landesbank) . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
Contra Costa MFHR Authority, VRDN (Lakeshore)
3.60%, Series A (LOC; Bank of America) (a) . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
Eastern Municipal Water District, Water and Sewer Revenue, Refunding, COP, VRDN
3.60%, Series B (Insured; FGIC and SBPA; Rabobank) (a) . . . . . . . . . . . . . . . . . 100,000 100,000
Foothill / Eastern Transportation Corridor Agency, VRDN:
3.60%, Series C (LOC; Credit Suisse) (a) . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
3.75%, Series B (LOC; Morgan Guaranty Trust Co.) (a) . . . . . . . . . . . . . . . . . . 200,000 200,000
Fremont, MFHR, VRDN
3.70%, Series E (LOC: Bayerische Bank and Landesbank ) (a) . . . . . . . . . . . . . . . 3,140,000 3,140,000
Glendale, Revenue Reliance Development, VRDN (Public Parking)
3.40% (LOC; Barclays Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,900,000 1,900,000
Guam Power Authority, Revenue, CP
2.85%, 2/9/99 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600,000 2,600,000
Imperial County, COP, VRDN (Capital Projects)
3.80% (LOC; Canadian Imperial Bank of Commerce) (a) . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
Irvine Improvement Act of 1915 Assessment District, VRDN (Oak Creek)
5.10%, (LOC; Canadian Imperial Bank of Commerce) (a) . . . . . . . . . . . . . . . . . . 2,400,000 2,400,000
Kern County, COP, VRDN (Kern Public Facilities Project):
3.60%, Series D (LOC; Union Bank of Switzerland) (a) . . . . . . . . . . . . . . . . . . 300,000 300,000
3.60%, Series A (LOC; Union Bank of Switzerland) (a). . . . . . . . . . . . . . . . . . 200,000 200,000
Los Angeles, MFHR, VRDN (Masselin Manor)
3.65% (LOC; Bank of America) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 800,000
Los Angeles County, Pension Obligation, Refunding, VRDN
3.70%, Series A (Insured; AMBAC and SBPA; National Westimister Bank) (a) . . . . . . . . 2,100,000 2,100,000
Los Angeles Metropolitan Transportation Authority, Revenue, CP
2.90%, 1/15/99 (LOC: Bayerische Bank, Canadian Imperial Bank
of Commerce and National Westminster Bank) . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
Metropolitan Water District, CP
2.75%, Series B, 3/9/99 (LOC; Westdeutsche Landesbank) . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- ______________ ______________
California (continued)
Modesto, MFHR, Refunding, VRDN (Shadowbrook)
3.60%, Series A (LOC; Bank of America) (a) . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 $ 1,000,000
Monterey County Financing Authority, Revenue, VRDN (Reclamation and District
Project)
3.70%, (LOC; Credit Local De France) (a) . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
Moorpark, Multi-Family Revenue, Refunding, VRDN (LeClub Apartments Project)
3.65%, Series A (LOC; Citibank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,500,000
Oakland, EDR, VRDN (Allen Temple Family Life)
3.90%, Series A (Wells Fargo Bank) (a). . . . . . . . . . . . . . . . . . . . . . . . . 1,100,000 1,100,000
Oakland Joint Powers Financing Authority, LR, VRDN
3.90%, Series A-1 (Insured; FSA and LOC; Commerzbank) (a) . . . . . . . . . . . . . . . 2,900,000 2,900,000
Orange County, VRDN:
Apartment Development Revenue, Refunding (Pointe Niguel Project)
4%, Series C (LOC; Wells Fargo Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
COP (Florence Crittendoc Services)
3.80% (LOC; Union Bank of Switzerland) (a) . . . . . . . . . . . . . . . . . . . . . . 700,000 700,000
Otay Water District, COP, VRDN (Capital Project)
3.90% (LOC; Landesbank Hessen) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 700,000
Oxnard School District, TRAN 3.90%, 8/19/99. . . . . . . . . . . . . . . . . . . . . . . . 3,500,000 3,510,217
Pomona Public Finance Authority, Revenue, Refunding (Pomona Redevelopment
Project)
4.41%, Series S, 2/1/99 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . 305,000 305,224
Riverside County Refunding Community Facility District 3.50%, 9/1/99 . . . . . . . . . . . 2,500,000 2,500,000
Rancho Water District Finance Authority, VRDN
3.75%, Series A (Insured; FGIC) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
Sacramento County, MFHR, VRDN (Smoketree)
3.55% Series A (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 100,000
Sacramento Municipal Utility District, Electric Revenue, CP
2.85%, 2/18/99 (LOC: Bayerische and Landesbank).. . . . . . . . . . . . . . . . . . . . 1,400,000 1,400,000
San Diego County, MFHR, VRDN (Country Hills)
3.55%, Series A (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 800,000
San Diego County Regional Transit Commission, TRAN
6.20%, Series A, 4/1/99 (Escrowed In; U.S Government Securities) . . . . . . . . . . . . 900,000 906,974
San Francisco City and County Housing Authority, MFHR, VRDN (737 Post Project)
3.70%, Series D (LOC; Banque Nationale de Paris) (a) . . . . . . . . . . . . . . . . . . 200,000 200,000
San Jose, MFHR, VRDN (Foxchase)
3.60%, Series B (Insured; FGIC and Liquidity Facility; FGIC) (a) . . . . . . . . . . . . 200,000 200,000
Santa Clara Local Government Finance Authority, Revenue, Refunding
7.10%, 2/1/99 (Escrowed In; U.S. Government Securities) . . . . . . . . . . . . . . . . 250,000 255,741
Santa Clara County Housing Authority, MFHR, VRDN ( Foxchase Apartment)
3.60% Series E (Insured; FGIC) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600,000 2,600,000
Santa Clara County, TRAN 4.50%, 10/01/99 . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 505,446
San Marcos Public Facility Authority, Revenue (Civic Center / Mission)
7.40%, 9/2/99 (Escrowed In; U.S. Government Securities) . . . . . . . . . . . . . . . . 1,500,000 1,572,047
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- ______________ ______________
California (continued)
Stockton, MFHR, VRDN (Mariners Pointe Association)
3.80%, Series A (LOC; Lasalle National Bank) (a) . . . . . . . . . . . . . . . . . . . . $ 2,700,000 $ 2,700,000
Tustin Improvement Act of 1915 Reassessment District, VRDN
5.10% (LOC; Kredietbank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,183,000 1,183,000
Upland, Apartment Development Revenue, Refunding, VRDN (Mountain Springs)
3.80%, Series A (LOC; FNMA) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
Vallecitos Water District, Water Revenue, COP, VRDN (Twin Oaks Reservoir
Project)
3.60% (LOC; Credit Locale de France) (a) . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,500,000
Yucaipa-Calimesa Joint Union School District, TRAN 4%, 6/30/99 . . . . . . . . . . . . . . 1,000,000 1,001,904
U.S. Related--4.3%
Commonwealth of Puerto Rico Highway and Transportation Authority,
Transportation Revenue, VRDN
3.50%, Series A (Insured; AMBAC and SBPA; Bank of Nova Scotia).(a) . . . . . . . . . . . 4,700,000 4,700,000
_____________
TOTAL INVESTMENTS (cost $108,223,337). . . . . . . . . . . . . . . . . . . . . . . . . . . 99.9% $108,223,337
______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1% $ 73,516
______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% $108,296,853
______ _____________
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Insurance Association
CP Commercial Paper Insurance Corporation
EDR Economical Development Revenue MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Corporation MFMR Multi-Family Mortgage Revenue
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance SBPA Standby Bond Purchase Agreement
IDR Industrial Development Revenue TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Moody's or Standard & Poor's Percentage of Value
________ _________________ ___________________
<S> <C> <C>
VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 97.1%
Aaa/Aa (b) AAA/AA (b) 2.9%
_______
100.0%
_______
</TABLE>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a)Securities payable on demand. Variable interest rate--subject to periodic
change.
(b)Notes which are not F, MIG or SP rated are represented by bond ratings of
the issuers.
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $108,223,337 $108,223,337
Interest receivable . . . . . . . . . . . . . . . . . . . 529,366
_____________
108,752,703
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 35,871
Cash overdraft due to Custodian . . . . . . . . . . . . . 419,922
Interest payable--Note 3 . . . . . . . . . . . . . . . . 57
_____________
455,850
_____________
NET ASSETS at value, represented by paid-in capital. . . . . . . . . . . . . . . . . . . . $108,296,853
_____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF SHARES OF BENEFICIAL INTEREST AUTHORIZED) . . . . . . . . . . . . . . 108,296,853
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
______
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED DECEMBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $1,661,270
EXPENSES: Management fee--Note 2 . . . . . . . . . . . . . . . . . $ 240,191
Interest expense--Note 3 . . . . . . . . . . . . . . . . 3,256
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 243,447
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,417,823
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . . . . . 137
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $1,417,960
___________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
December 31, 1998 Year Ended
(Unaudited) June 30, 1998
_________________ ______________
OPERATIONS
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,417,823 $ 2,750,679
Net realized gain (loss) from investments . . . . . . . . . . . . . . . . . . . . 137 51,000
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . 1,417,960 2,801,679
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,417,823) (2,750,679)
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . (8,137) (6,603)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,425,960) (2,757,282)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 146,930,447 190,718,170
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 884,454 2,010,317
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (139,771,862) (173,091,554)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . . 8,043,039 19,636,933
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . 8,035,039 19,681,330
_____________ _____________
NET ASSETS
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,261,814 80,580,484
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $108,296,853 $100,261,814
_____________ _____________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Six Months Ended Period Ended Year Ended
December 31, 1998 Year Ended June 30 June 30, November 30,
__________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996(1) 1995(2) 1994(3)(4) 1993(3)(5)
__________ ______ ______ ______ ______ ______ ______
Net asset value, beginning
<S> <C> <C> <C> <C> <C> <C> <C>
of period . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . .013 .031 .031 .031 .031 .012 .023
______ ______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net (.013) (.031) (.031) (.031) (.031) (.012) (.023)
______ ______ ______ ______ ______ ______ ______
Net asset value, end of period . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . 2.68%(6) 3.13% 3.11% 3.19% 3.10% 1.25% 2.41%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .46%(6) .46% .42% .44% .60% .47%(6) .32%
Ratio of net investment income
to average net assets . . . . . . 2.66%(6) 3.08% 3.09% 3.36% 3.07% 2.11%(6) 2.40%
Decrease reflected in above expense ratios
due to undertakings by the Manager -- -- .03% .07% -- .38%(6) .76%
Net Assets, end of period
(000's Omitted) . . . . . . . $108,297 $100,262 $80,580 $36,728 $15,538 $17,170 $15,490
- ------------------------
</TABLE>
(1)Effective November 21, 1995, the Fund converted to a single Class Fund,
with the existing Class R shares converted into Investor shares. The Financial
Highlights for the fiscal year ended June 30, 1996 were calculated using the
performance of an Investor share outstanding from July 1, 1995 to November 19,
1995, and the performance of a Fund share outstanding from November 20, 1995 to
June 30, 1996.
(2)Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund's investment manager.
(3) On February 1, 1993 existing shares of the Fund were designated the Retail
Class and the Fund began offering the Institutional Class and Investment Class
of shares. Effective April 4, 1994 the Retail and Institutional Classes were
reclassified as a single class of shares known as the Investor shares and
Investment Class shares were redesignated as Trust shares. Effective October 17,
1994, the Trust shares were reclassified as Class R 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.
(4)The Fund changed its fiscal year end to June 30. Prior to this, the Fund's
fiscal year end was November 30. Prior to April 4, 1994, The Boston Company
Advisors, Inc. served as the Fund' s investment adviser. From April 4, 1994
through October 16, 1994, Mellon Bank, N.A., served as the Fund's investment
manager.
(5)The per share amount has been calculated using the monthly average shares
method, which more appropriately presents per share data for the period since
use of the undistributed net investment income method did not accord with
results of operations.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC California Municipal Money Market Fund (the "Fund") is a
separate non-diversified series of the Dreyfus/Laurel Tax-Free Municipal Funds
(the "Trust" ) which is registered under the Investment Company Act of 1940, as
amended (the "Act") as an open-end management investment company and operates as
a series company currently offering five series including the Fund. The Fund's
investment objective is to provide a high level of current income exempt from
Federal and State of California personal income taxes to the extent consistent
with the preservation of capital and the maintenance of liquidity by investing
in high quality, short-term municipal securities. The Dreyfus Corporation (the
" Manager" ) serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. is the
distributor of the Fund's shares.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities are valued at amortized
cost in accordance with Rule 2a-7 of the Act, which has been determined by the
Fund's Board of Trustees to represent the fair value of the Fund's investments.
It is the Fund's policy to maintain a continuous net asset value per share of
$1.00 for the Fund; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value per share of $1.00.
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Interest income, adjusted for amortization
of premiums and original issue discounts on investments, is earned from
settlement date and recognized on the accrual basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Cost of
investments represents amortized cost. Under the terms of the custody agreement
the Fund received net earnings credits of $5,341 during the period ended
December 31, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
(c) Concentration of risk: The Fund follows an investment policy of investing
primarily in municipal obligations of one state. Economic changes affecting the
state and certain of its public bodies and municipalities may affect the ability
of issuers within the state to pay interest on, or repay principal of, municipal
obligations held by the Fund.
(d) Distributions to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
(e) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
At December 31, 1998, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 2--INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
Investment management fee: Pursuant to an Investment Management agreement
with the Manager, the Manager provides or arranges for one or more third parties
and/or affiliates to provide investment advisory, administrative, custody, fund
accounting and transfer agency services to the Fund. The Manager also directs
the investments of the Fund in accordance with its investment objective,
policies and limitations. For these services, the Fund is contractually
obligated to DREYFUS BASIC CALIFORNIA MUNICIPAL MONEY MARKET FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
pay the Manager a fee, calculated daily and paid monthly, at the annual rate of
. 45% of the value of the Fund's average daily net assets. Out of its fee, the
Manager pays all of the expenses of the Fund except brokerage fees, taxes,
interest, fees and expenses of non-interested Trustees (including counsel fees)
and extraordinary expenses. In addition, the Manager is required to reduce its
fee in an amount equal to the Fund's allocable portion of fees and expenses of
the non-interested Trustees (including counsel). Effective July 1, 1998, each
Trustee receives $40,000 per year, plus $5,000 for each joint Board meeting of
The Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free Municipal Funds, and
The Dreyfus/Laurel Funds Trust (the "Dreyfus/Laurel Funds") attended, $2,000 for
separate committee meetings attended which are not held in conjunction with a
regularly scheduled board meeting and $500 for Board meetings and separate
committee meetings attended that are conducted by telephone and is reimbursed
for travel and out-of-pocket expenses. The Chairman of the Board receives an
additional 25% of such compensation (with the exception of reimbursable amounts)
. In the event that there is a joint committee meeting of the Dreyfus/Laurel
Funds and the Dreyfus High Yield Strategies Fund, the $2,000 fee will be
allocated between the Dreyfus/Laurel Funds and the Dreyfus High Yield Strategies
Fund. These fees and expenses are charged and allocated to each series based on
net assets. Amounts required to be paid by the Trust directly to the
non-interested Trustees, that would be applied to offset a portion of the
management fee payable to the Manager, are in fact paid directly by the Manager
to the non-interested Trustees.
Prior to July 1, 1998 each director received $27,000 per year, $1,000 for
each Board meeting attended and $750 for each Audit Committee meeting attended
and was reimbursed for travel and out-of-pocket expenses. The Chairman of the
Board received an additional annual fee of $25,000 per year. These fees
pertained to the Dreyfus/Laurel Funds. (The $1,000 attendance fee and
reimbursement of meeting expenses were also borne pro rata by Dreyfus High Yield
Strategies Fund) . These fees and expenses were charged and allocated to each
series based on net assets. Amounts required to be paid by the Trust directly to
the non-interested Trustees, that would be applied to offset a portion of the
management fee payable to the Manager, were in fact paid directly by the Manager
to the non-interested Trustees.
NOTE 3--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings.
The average daily amount of borrowings outstanding during the period ended
December 31, 1998 was approximately $110,000, with a related weighted average
annualized interest rate of 5.85%.
[This page left intentionally blank.]
[reg.tm logo]
(reg.tm)
DREYFUS
BASIC CALIFORNIA
MUNICIPAL MONEY MARKET FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 307SA9812
BASIC California
Municipal Money
Market Fund
Semi-Annual Report
December 31, 1998
