Dreyfus
Dreyfus Premier
Core Bond Fund
SEMIANNUAL REPORT April 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
6 Statement of Investments
14 Statement of Financial Futures
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
19 Financial Highlights
21 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Core Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Core Bond
Fund, covering the six-month period from November 1, 1999 through April 30,
2000. Inside, you' ll find valuable information about how the fund was managed
during the reporting period, including a discussion with Michael Hoeh, portfolio
manager and a member of the Dreyfus Taxable Fixed Income Team that manages the
fund.
Tighter monetary policy adversely affected most -- but not all -- sectors of the
bond market over the past six months. This was primarily a result of efforts by
the Federal Reserve Board (the "Fed") to forestall a potential reemergence of
inflationary pressures. The Fed raised short-term interest rates three times
during the reporting period, following two interest rate hikes implemented in
the months before the reporting period began. Since June 1999, the Federal
Reserve Board has raised short-term interest rates a total of 1.25 percentage
points.
Higher interest rates led to some additional erosion of bond prices, especially
during the last two months of 1999. During the first four months of 2000,
however, some bonds began to rally, led higher by long-term U.S. Treasury
securities which rose primarily because of reduced supply amid robust demand
from domestic and foreign investors.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Core Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Michael Hoeh, Portfolio Manager Dreyfus Taxable Fixed Income Team
How did Dreyfus Premier Core Bond Fund perform relative to its benchmark?
For the six-month period ended April 30, 2000, the fund's Class A shares
produced a 3.01% total return.(1) This performance compares to the 1.52% return
provided by the fund's benchmark, the Merrill Lynch Domestic Master Index.(2)
The public offering of the fund's Class B, C and R shares commenced on March 1,
2000. From March 1, 2000 through April 30, 2000, the fund's Class B shares
produced a 1.76% total return, Class C shares produced a 1.57% total return and
Class R shares produced a 1.75% total return.(1)
We attribute the fund's strong performance to our sector allocation and duration
management strategies, which enabled us to avoid the brunt of the declines
caused by rising interest rates.
What is the fund's investment approach?
The fund seeks a high total return, which includes both capital appreciation and
current income. At least 65% of the fund must be invested in investment-grade
fixed-income securities, which include U.S. Treasury securities, U.S. government
agency securities, corporate bonds, mortgage- and asset-backed securities,
convertible securities and preferred stocks. The remaining 35% may be invested
in bonds of below investment-grade credit quality, also known as "high yield"
securities.
Our investment approach emphasizes:
* FUNDAMENTAL ECONOMIC ANALYSIS. Our review of U.S. economic conditions helps
us establish the portfolio' s average duration, which is a measure of
sensitivity to interest-rate changes. If interest rates appear to be rising,
we will generally reduce the fund's average duration to keep cash available
for the purchase of higher yield The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
ing securities as they become available. If interest rates appear to be
declining, we may increase the fund's average duration to lock in prevailing
yields.
* SECTOR ALLOCATION. We allocate assets among the various sectors of the
fixed-income marketplace according to their relative attractiveness under
prevailing and expected economic conditions.
* SECURITY SELECTION. We choose individual securities according to factors
that include their yields, prices, liquidity and the financial health of the
issuers.
What other factors influenced the fund's performance?
The fund was influenced by inflation fears, rising interest rates and unusual
conditions in the U.S. Treasury securities marketplace. When the reporting
period began on November 1, 1999, investors had become concerned that robust
economic growth might rekindle long-dormant inflationary pressures, especially
rising wages in a tight job market. In an attempt to ease these pressures and
forestall a reacceleration of inflation, the Federal Reserve Board raised
short-term interest rates three times during the reporting period, causing most
bond prices to fall. These interest-rate hikes followed two previous increases
implemented before the current reporting period began, for a total increase of
125 basis points since mid-1999.
Thirty-year U.S. Treasury securities represented one of the few market sectors
to provide attractive returns during the reporting period. That's because the
Treasury Department announced its intention to use a portion of the federal
budget surplus to buy back higher yielding, long-term bonds. With a reduced
supply of U.S. Treasury bonds and strong demand from domestic and foreign
investors, the prices of 30-year U.S. Treasury bonds rose sharply. The fund
benefited from this rally through its holdings of 30-year U.S. Treasury bonds,
before reducing that position toward the end of the reporting period.
What is the fund's current strategy?
As we have done during most of the six-month reporting period, we continue to
maintain the fund's AVERAGE DURATION -- a measure of sensi
tivity to changing interest rates -- at a level that is approximately 5% to 7%
shorter than the duration of the fund's benchmark. This duration management
strategy is designed to help us take advantage of the greater flexibility that
shorter durations typically provide, potentially enabling us to capture higher
yields more quickly as they became available, as compared with the benchmark
index.
From a sector allocation standpoint, we recently took profits in our holdings of
long-term U.S. Treasury securities after receiving strong relative returns
during the first quarter of 2000. We have also reduced our exposure to
commercial mortgage-backed securities after they provided good performance
during a rally caused primarily by rising real estate values and slowing supply.
Finally, we have continued to reduce our holdings of corporate securities,
including high yield bonds, in an effort to improve the portfolio's liquidity
and credit quality.
Many of the proceeds from recent sales have been invested in U.S. government
agency securities -- primarily those issued by "Fannie Mae" and "Freddie Mac."
We believe that these agencies' securities are currently undervalued because of
political pressures from the U.S. Senate and the Treasury Department. Although
some government officials have questioned the agencies' investment policies, we
believe any adverse changes in the mortgage-backed securities markets are
unlikely, and we expect U.S. Government agency securities' prices to rebound as
the situation is resolved.
May 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGE
IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE
CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. ON MARCH 1, 2000, THE
FUND IMPLEMENTED A MULTICLASS STRUCTURE. EXISTING FUND SHARES WERE DESIGNATED AS
CLASS A SHARES, AND SHAREHOLDERS ON MARCH 1, 2000 ARE PERMITTED TO PURCHASE
ADDITIONAL CLASS A SHARES IN OPEN ACCOUNTS ON SUCH DATE WITHOUT PAYING THE
INITIAL SALES CHARGE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE
PRICE, YIELD AND INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND
SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
(2) SOURCE: BLOOMBERG L.P. -- REFLECTS THE REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MERRILL LYNCH DOMESTIC MASTER INDEX
IS AN UNMANAGED PERFORMANCE BENCHMARK COMPOSED OF U.S. TREASURY AND AGENCY, AND
MORTGAGE AND INVESTMENT-GRADE CORPORATE SECURITIES WITH MATURITIES GREATER THAN
OR EQUAL TO ONE YEAR.
The Fund
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
STATEMENT OF INVESTMENTS
April 30, 2000 (Unaudited)
Principal
BONDS AND NOTES--103.4% Amount(a) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.6%
Lockheed Martin,
<S> <C> <C>
Notes, 8.2%, 2009 5,200,000 5,098,569
AIRLINES--3.2%
Air 2 US, Ser. A,
Enhanced Equipment Notes, 8.027%, 2019 1,999,932 (b) 1,969,783
America West Airlines Pass-Through Trust,
Pass-Through Ctfs.,
Ser. 1997-1, Cl. C, 7.53%, 2004 6,511,626 6,376,412
Pegasus Aviation Lease Securitization,
Ser. 2000-1, Cl. A1, 6.77%, 2015 2,000,000 (b,c) 2,000,000
10,346,195
ASSET-BACKED CTFS.--3.2%
Conseco Finance Securitizations,
Ser. 2000-1, Cl. A3, 7.3%, 2031 2,500,000 2,470,962
Fidelity Equipment Lease Trust,
Ser. 1999-2, Cl. A3, 6.96%, 2004 6,100,000 (b) 6,008,500
Inner Harbor CBO,
Ser. 1999-1, Cl. B2, 13.667%, 2012 2,000,000 (b) 1,920,000
10,399,462
ASSET-BACKED CTFS./AUTOMOBILE RECEIVABLES--2.5%
Flagship Auto Receivables Owner Trust,
Ser. 1999-2, Cl. A3, 6.835%, 2004 3,000,000 2,953,125
Provident Auto Lease ABS Trust,
Ser. 1999-1, Cl. A2, 7.025%, 2005 5,000,000 (b) 5,006,675
7,959,800
ASSET-BACKED CTFS./HOME EQUITY LOANS--.5%
GE Capital Mortgage Services:
Ser. 1996-HE4, Cl. B3, 9.314%, 2026 1,079,238 (b,c) 751,925
Ser. 1999-21, Cl. B3, 6.75%, 2014 683,627 (b) 532,268
Ser. 1999-21, Cl. B4, 6.75%, 2014 255,745 (b) 167,593
1,451,786
BANKING--1.0%
Fleet Boston,
Sub. Notes, 7.375%, 2009 3,355,000 3,234,488
BUILDING MATERIALS--.7%
ICF Kaiser International,
Sr. Sub. Notes, 13%, 2003 4,750,000 (d) 2,333,437
CABLE TELEVISION--1.0%
CSC Holdings,
Deb., 8.125%, 2009 3,516,000 3,326,044
Principal
BONDS AND NOTES (CONTINUED) Amount(a) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGE PASS-THROUGH CTFS.--5.1%
Chase Manhattan Bank-First Union National,
Ser. 1999-1, Cl. A2, 7.439%, 2009 1,000,000 979,219
First Union National Bank Commercial Mortgage,
Ser. 2000-C1, Cl. A1, 7.739%, 2009 6,000,000 6,029,880
Structured Asset Securities, REMIC,
Ser. 1996-CFL, Cl. H, 7.75%, 2028 4,750,000 (b) 3,364,174
TrizecHahn Office Properties Trust,
Ser. 1999-TOP, Cl. D, 7.33%, 2007 6,000,000 (b,c) 6,000,000
16,373,273
COMPUTERS--.9%
IBM,
Deb., 7.125%, 2096 3,100,000 2,809,384
CONSUMER--1.6%
Corning,
Notes, 6.25%, 2010 EUR 5,810,000 (b) 5,253,709
ELECTRIC POWER--1.2%
PSEG Energy Holdings,
Notes, 9.125%, 2004 4,000,000 (b) 3,956,456
ENERGY--1.8%
Conoco:
Sr. Notes, 6.35%, 2009 2,800,000 2,564,716
Sr. Notes, 6.95%, 2029 3,600,000 3,241,188
5,805,904
FINANCIAL--4.6%
DLJ,
Medium-Term Notes, .4%, 2000 7,550,000 (b) 7,702,729
Ford Motor Credit,
Notes, 7.375%, 2009 4,000,000 3,886,040
Lehman Brothers Holdings,
Notes, 6.625%, 2008 3,700,000 3,315,607
14,904,376
FOREIGN--1.8%
Korea Development Bank,
Notes, 6.625%, 2003 6,000,000 5,715,360
FOREIGN/GOVERNMENTAL--1.3%
Federative Republic of Brazil,
Bonds, 12.25%, 2030 2,000,000 1,833,000
Republic of Argentina,
Deb., 11.25%, 2004 794,400 797,180
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount(a) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FOREIGN/GOVERNMENTAL (CONTINUED)
Republic of Philippines,
Notes, 9.875%, 2010 1,750,000 1,664,687
4,294,867
INSURANCE--1.3%
Everest Reinsurance Holdings:
Sr. Notes, 8.5%, 2005 3,000,000 2,979,918
Sr. Notes, 8.75%, 2010 1,200,000 1,186,762
4,166,680
MEDIA/ENTERTAINMENT--1.9%
Clear Channel Communications,
Conv. Sub. Deb., 2.625%, 2003 4,780,000 6,118,400
OIL & GAS--2.2%
Petroleos Mexicanos, Ser. P,
Sr. Notes, 9.5%, 2006 3,000,000 (e) 3,037,500
Yosemite Securities Trust I,
Deb., 8.25%, 2004 4,200,000 (b) 4,149,839
7,187,339
REAL ESTATE--3.9%
Crescent Real Estate Equities,
Notes, 7%, 2002 9,950,000 9,082,350
Spieker Properties,
Deb., 7.35%, 2017 4,200,000 3,642,101
12,724,451
RESIDENTIAL MORTGAGE PASS-THROUGH CTFS.--8.2%
Bank of America Mortgage Securities:
Ser. 1999-6, Cl. B4, 6.25%, 2014 580,236 (b) 449,335
Ser. 1999-6, Cl. B6, 6.25%, 2014 435,159 (b) 117,493
Ser. 1999-10, Cl. B4, 6.5%, 2014 292,865 (b) 229,799
Ser. 1999-10, Cl. B5, 6.5%, 2014 146,919 (b) 100,071
Bear Stearns Mortgage Securities,
REMIC, Ser. 1995-1, Cl. 2B4, 7.4%, 2010 199,166 (b) 177,755
Chase Mortgage Finance Trust, REMIC:
Ser. 1994-E, Cl. B5, 6.25%, 2010 137,611 (b) 115,768
Ser. 1999-S3, Cl. B4, 6.25%, 2014 164,165 (b) 111,267
Ser. 1999-S6, Cl. B3, 6.25%, 2014 647,272 (b) 502,238
Ser. 1999-S6, Cl. B4, 6.25%, 2014 323,636 (b) 218,362
Ser. 1999-S7, Cl. B3, 6.25%, 2014 361,085 (b) 279,487
Ser. 1999-S13, Cl. B2, 6.5%, 2014 586,192 522,159
Ser. 2000-S2, Cl. B3, 7.5%, 2030 449,618 (b) 332,858
Principal
BONDS AND NOTES (CONTINUED) Amount(a) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE PASS-THROUGH CTFS. (CONTINUED)
GE Capital Mortgage Services, REMIC:
Ser. 1993-11, Cl. B4, 6%, 2008 117,646 (b) 104,476
Ser. 1993-15, Cl. B3, 6%, 2008 350,612 (b) 310,088
Ser. 1994-21, Cl. B4, 6.5%, 2009 229,770 (b) 196,665
Ser. 1994-22, Cl. B2, 6%, 2009 146,362 136,261
Ser. 1996-10, Cl. B3, 6.75%, 2011 462,341 (b) 401,606
Ser. 1996-12, Cl. B2, 7.25%, 2011 723,296 (b) 692,066
Ser. 1996-12, Cl. B3, 7.25%, 2011 309,628 (b) 274,600
Ser. 1996-14, Cl. 2B3, 7.25%, 2011 232,057 (b) 205,356
Ser. 1997-13, Cl. B2, 6.75%, 2012 903,767 833,844
Ser. 1998-1, Cl. B2, 6.75%, 2013 453,636 418,279
Ser. 1998-10, Cl. 2B4, 6.5%, 2013 208,669 (b) 146,821
Ser. 2000-5, Cl. B5, 7.25%, 2015 190,882 (b) 53,447
MORSERV:
Ser. 1996-1, Cl. B2, 7%, 2011 692,858 666,654
Ser. 1996-1, Cl. B3, 7%, 2011 346,429 (b) 314,355
Norwest Asset Securities:
Ser. 1997-11, Cl. B3, 7%, 2027 732,139 (b) 552,765
Ser. 1997-15, Cl. B3, 6.75%, 2012 454,348 (b) 380,441
Ser. 1998-2, Cl. B3, 6.5%, 2028 488,921 376,893
Ser. 1998-9, Cl. B4, 6.5%, 2028 807,480 (b) 620,685
Ser. 1998-11, Cl. B3, 6.5%, 2013 687,770 625,608
Ser. 1998-11, Cl. B4, 6.5%, 2013 825,141 (b) 661,541
Ser. 1998-13, Cl. B4, 6.25%, 2028 735,178 (b) 531,433
Ser. 1998-18, Cl. B4, 6.25%, 2028 859,360 (b) 619,206
Ser. 1999-19, Cl. B4, 6.25%, 2014 482,797 (b) 374,022
Ser. 2000-1, Cl. B4, 7.25%, 2030 600,746 (b) 435,823
Ocwen Residential MBS,
Ser. 1998-R1, Cl. B1, 7%, 2040 2,901,878 (b) 2,584,032
PNC Mortgage Securities, REMIC:
Ser. 1998-2, Cl. III-B4, 6.75%, 2013 444,784 (b) 367,026
Ser. 1998-2, Cl. III-B5, 6.75%, 2013 355,827 (b) 262,342
Ser. 1998-2, Cl. IV-B4, 6.75%, 2027 259,180 (b) 208,505
Ser. 1998-2, Cl. IV-B5, 6.75%, 2027 259,180 (b) 164,607
Prudential Home Mortgage Securities, REMIC:
Ser. 1996-7, Cl. B2, 6.75%, 2011 630,468 592,164
Ser. 1996-7, Cl. B3, 6.75%, 2011 1,639,871 (b) 1,424,299
Ser. 1996-7, Cl. B4, 6.75%, 2011 756,235 (b) 609,453
Residential Accredit Loans,
Ser. 1997-QS6, Cl. B1, 7.5%, 2012 328,689 285,470
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount(a) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
RESIDENTIAL MORTGAGE PASS-THROUGH CTFS. (CONTINUED)
Residential Funding Mortgage Securities I, REMIC:
Ser. 1995-J1, Cl. 2, 7.505%, 2023 1,590,055 (b,c) 1,266,081
Ser. 1997-S19, Cl. B1, 6.5%, 2012 727,317 (b) 598,598
Ser. 1997-S19, Cl. B2, 6.5%, 2012 311,681 (b) 217,982
Ser. 1997-S21, Cl. B1, 6.5%, 2012 419,778 (b) 345,667
Ser. 1998-S14, Cl. B1, 6.5%, 2013 633,465 (b) 506,138
Ser. 1998-S30, Cl. M3, 6.5%, 2028 1,070,937 897,579
Ser. 1999-S23, Cl. B2, 7.25%, 2029 683,553 (b) 357,518
Ser. 1999-S23, Cl. B3, 7.25%, 2029 683,275 (b) 177,652
Structured Asset Securities, REMIC,
Ser. Greenpoint 1996-A:
Cl. B1, 8.344%, 2027 1,711,505 (c) 1,664,974
Cl. B2, 8.344%, 2027 684,226 (c) 723,142
Cl. B4, 8.344%, 2027 410,724 (b,c) 391,342
26,734,098
RESTAURANTS--1.7%
Tricon Global Restaurants,
Sr. Notes, 7.45%, 2005 6,150,000 5,647,957
RETAIL--2.4%
Fred Meyer,
Bonds, 7.375%, 2005 5,000,000 4,792,620
Saks,
Notes, 7.25%, 2004 3,350,000 2,959,243
7,751,863
TELECOMMUNICATION--.6%
Winstar Communications,
Sr. Notes, 12.75%, 2010 EUR 2,000,000 (b) 1,791,518
TELECOMMUNICATION/CARRIERS--.8%
Qwest Communications International, Ser. B,
Sr. Discount Notes, 0/8.29%, 2008 3,540,000 (f) 2,718,631
U.S. GOVERNMENT--16.2%
U.S. Treasury Bonds:
5.25%, 2/15/2029 3,295,000 2,900,786
6.125%, 8/15/2029 2,825,000 2,830,424
6.25%, 5/15/2030 4,800,000 4,993,344
8.125%, 8/15/2021 3,826,000 4,653,258
U.S. Treasury Inflation Protection Securities:
3.625%, 11/15/2008 5,000,000 (g) 5,118,335
3.875%, 4/15/2029 4,750,000 (g) 4,915,588
Principal
BONDS AND NOTES (CONTINUED) Amount(a) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT (CONTINUED)
U.S. Treasury Notes,
6.5%, 2/15/2010 26,500,000 27,034,770
52,446,505
U.S. GOVERNMENT AGENCY--1.2%
Federal National Mortgage Association,
Notes, 7.25%, 1/15/2010 4,000,000 3,989,784
U.S. GOVERNMENT AGENCY/MORTGAGE BACKED--27.1%
Federal Home Loan Mortgage:
7.5% 16,100,000 (h) 15,778,000
8% 8,750,000 (h) 8,747,266
REMIC, Multiclass Mortgage Participation Ctfs.
(Interest Only Obligation),
Ser. 2048, Cl. PJ, 7%, 4/15/2028 2,732,514 (i) 1,119,456
Federal National Mortgage Association:
7.5% 6,760,000 (h) 6,616,350
REMIC Trust, Gtd. Pass-Through Ctfs.
(Collateralized by FNMA
Pass-Through Ctfs.)
(Interest Only Obligation):
Ser. 1996-70, Cl. PL, 7%, 2/25/2026 12,099,352 (i) 2,941,655
Ser. 1997-56, Cl. PM, 7%, 6/18/2026 3,084,529 (i) 726,407
Ser. 1997-74, Cl. PK, 7%,11/18/2027 4,593,642 (i) 1,740,677
Government National Mortgage Association I:
6.5% 1,460,000 (h) 1,368,283
7.5%, 1/15/2002-7/15/2002 123,804 124,151
Construction Loan:
6.8%, 7/15/2001 12,224,540 11,991,418
6.8% 458,560 (h) 412,847
Project Loan:
6.495%, 7/15/2030 10,054,461 9,432,291
6.5%, 9/15/2033 6,382,731 5,915,076
6.54%, 7/15/2033 14,966,689 14,274,479
Government National Mortgage Association II,
Adjustable Rate Mortgage:
5.5%, 4/20/2030 5,000,200 4,839,243
7.5% 1,940,000 (h) 1,899,978
87,927,577
UTILITIES-TELEPHONE--2.9%
AT&T Canada,
Notes, 7.65%, 2006 2,700,000 2,672,635
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount(a) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES-TELEPHONE (CONTINUED)
Bellsouth Capital Funding,
Notes, 7.75%, 2010 6,760,000 6,779,861
9,452,496
YANKEE--1.0%
Pemex Finance,
Ser. 2000-1, Cl. A2, Notes, 7.8%, 2013 3,400,000 (b) 3,379,600
TOTAL BONDS AND NOTES
(cost $340,060,914) 335,300,009
------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--.8% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
BROADCASTING--.8%
Spanish Broadcasting System, Cl. A 133,750 (b,j) 2,499,453
TELECOMMUNICATIONS--.0%
Comunicacion Celular (warrants) 2,500 (b,j) 62,812
TRANSPORTATION--.0%
Golden Ocean Group (warrants) 5,270 (j) 5,929
TOTAL COMMON STOCKS
(cost $862,013) 2,568,194
------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--2.6%
------------------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT;
Paxson Communications,
Cum., $132.50
(cost $8,259,763) 8,320 8,486,400
Principal
SHORT-TERM INVESTMENTS--4.0% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--3.6%
UBS Finance,
6.04%, 5/1/2000 11,860,000 11,860,000
U.S TREASURY BILLS--.4%
5.1%, 5/4/2000 195,000 194,916
5.62%, 7/13/2000 325,000 (k) 321,302
5.635%, 7/20/2000 325,000 (k) 320,947
5.635%, 7/27/2000 375,000 (k) 369,889
1,207,054
TOTAL SHORT-TERM INVESTMENTS
(cost $13,067,021) 13,067,054
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $362,249,711) 110.8% 359,421,657
LIABILITIES, LESS CASH AND RECEIVABLES (10.8%) (35,138,082)
NET ASSETS 100.0% 324,283,575
</TABLE>
A PRINCIPAL AMOUNT STATED IN U.S. DOLLARS UNLESS OTHERWISE NOTED.
EUR -- EUROS.
B SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION,
NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT APRIL 30, 2000, THESE SECURITIES
AMOUNTED TO $75,508,105 OR 23.3% OF NET ASSETS.
C VARIABLE RATE SECURITY -- INTEREST RATE SUBJECT TO PERIODIC CHANGE.
D NON-INCOME PRODUCING -- SECURITY IN DEFAULT.
E REFLECTS DATE SECURITY CAN BE REDEEMED AT HOLDER'S OPTION; THE STATED MATURITY
IS 9/15/2027.
F ZERO COUPON UNTIL A SPECIFIED DATE AT WHICH TIME THE STATED COUPON RATE
BECOMES EFFECTIVE UNTIL MATURITY.
G PRINCIPAL AMOUNT FOR ACCRUAL PURPOSES IS PERIODICALLY ADJUSTED BASED ON
CHANGES TO THE CONSUMER PRICE INDEX.
(H) PURCHASED ON A FORWARD COMMITMENT BASIS.
(I) NOTIONAL FACE AMOUNT SHOWN.
(J) NON-INCOME PRODUCING SECURITY.
(K) HELD BY THE CUSTODIAN IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN
FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES
April 30, 2000 (Unaudited)
Unrealized
Market Value Appreciation
Covered (Depreciation)
Contracts by Contracts ($) Expiration at 4/30/2000 ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL FUTURES LONG
U.S. Government Agency
<S> <C> <C> <C> <C>
10 Year Notes 110 10,016,875 June 2000 (184,000)
FINANCIAL FUTURES SHORT
U.S. Treasury 30 Year Bonds 183 17,670,938 June 2000 (53,719)
U.S. Treasury 10 Year Notes 243 23,559,609 June 2000 373,141
135,422
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 362,249,711 359,421,657
Cash 341,499
Receivable for investment securities sold 63,307,986
Dividends and interest receivable 4,375,810
Paydowns receivable 266,680
Receivable for shares of Beneficial Interest subscribed 137,816
Prepaid expenses and other assets 70,259
427,921,707
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 266,259
Payable for investment securities purchased 100,897,392
Payable for shares of Beneficial Interest redeemed 2,337,667
Payable for futures variation margin 78,969
Accrued expenses 57,845
103,638,132
--------------------------------------------------------------------------------
NET ASSETS ($) 324,283,575
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 333,193,668
Accumulated undistributed investment income--net 146,432
Accumulated net realized gain (loss) on investments and financial futures
(6,359,680)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (including
$135,422 net unrealized appreciation on financial futures) (2,696,845)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSETS ($) 324,283,575
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 323,599,982 650,495 32,081 1,017
Shares Outstanding 22,738,019 45,656 2,255 71.487
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 14.23 14.25 14.23 14.23
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 10,702,653
Cash dividends 1,064,700
TOTAL INCOME 11,767,353
EXPENSES:
Management fee--Note 3(a) 906,887
Shareholder servicing costs--Note 3(c) 515,427
Interest expense--Note 2 27,191
Prospectus and shareholders' reports 14,818
Registration fees 14,746
Custodian fees--Note 3(c) 14,187
Trustees' fees and expenses--Note 3(d) 11,863
Professional fees 3,841
Distribution fees--Note 3(b) 228
Miscellaneous 6,612
TOTAL EXPENSES 1,515,800
INVESTMENT INCOME--NET 10,251,553
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 2,088,075
Net realized gain (loss) on financial futures (484,333)
NET REALIZED GAIN (LOSS) 1,603,742
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (including $158,985
net unrealized appreciation on financial futures) (2,929,885)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (1,326,143)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 8,925,410
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 10,251,553 18,782,368
Net realized gain (loss) on investments 1,603,742 (6,918,018)
Net unrealized appreciation (depreciation)
on investments (2,929,885) 5,353,806
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 8,925,410 17,218,156
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (10,693,134) (18,877,503)
Class B shares (2,151) --
Class C shares (158) --
Class R shares (11) --
TOTAL DIVIDENDS (10,695,454) (18,877,503)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 92,592,461 66,224,793
Class B shares 654,323 --
Class C shares 32,182 --
Class R shares 1,000 --
Dividends reinvested:
Class A shares 7,453,362 13,963,988
Class B shares 1,751 --
Class C shares 158 --
Class R shares 11 --
Cost of shares redeemed:
Class A shares (49,796,084) (86,749,648)
Class B shares (1,456) --
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 50,937,708 (6,560,867)
TOTAL INCREASE (DECREASE) IN NET ASSETS 49,167,664 (8,220,214)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 275,115,911 283,336,125
END OF PERIOD 324,283,575 275,115,911
Undistributed investment income--net 146,432 590,333
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000,
FOR CLASS B, CLASS C, AND CLASS R SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
CLASS A
Shares sold 6,475,921 4,617,771
Shares issued for dividends reinvested 523,319 971,101
Shares redeemed (3,489,385) (6,036,959)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 3,509,855 (448,087)
--------------------------------------------------------------------------------
CLASS B
Shares sold 45,630 --
Shares issued for dividends reinvested 123 --
Shares redeemed (97) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 45,656 --
--------------------------------------------------------------------------------
CLASS C
Shares sold 2,244 --
Shares issued for dividends reinvested 11 --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,255 --
--------------------------------------------------------------------------------
CLASS R
Shares sold 71 --
Shares issued for dividends reinvested 1 --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 72 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000,
FOR CLASS B, CLASS C AND
CLASS R SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Six Months Ended
April 30, 2000 Year Ended October 31,
----------------------------------------------------------------
CLASS A SHARES (Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period 14.31 14.40 14.86 14.24 14.22 12.95
Investment Operations:
Investment income--net .48 .98 1.01 1.05 .98 .93
Net realized and unrealized
gain (loss) on investments (.06) (.09) (.45) .59 .02 1.27
Total from Investment Operations .42 .89 .56 1.64 1.00 2.20
Distributions:
Dividends from investment
income--net (.50) (.98) (1.02) (1.02) (.98) (.93)
Net asset value, end of period 14.23 14.31 14.40 14.86 14.24 14.22
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 6.04(a,b) 6.38 3.74 11.94 7.27 17.57(b)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets .98(a) 1.04 1.02 1.03 1.04 1.04
Ratio of interest expense to
average net assets .02(a) .14 .03 .06 .02 --
Ratio of net investment income
to average net assets 6.76(a) 6.80 6.76 7.25 6.89 6.87
Portfolio Turnover Rate 253.70(c) 284.63 313.40 347.68 214.55 176.59
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 323,600 275,116 283,336 275,518 294,911 320,345
(A) ANNUALIZED.
(B) EXCLUSIVE OF SALES CHARGE.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Period Ended April 30, 2000 (Unaudited)(a)
-----------------------------------------------
CLASS B CLASS C CLASS R
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.14 14.14 14.14
Investment Operations:
Investment income--net .14 .13 .15
Net realized and unrealized gain (loss) on investments .11 .09 .10
Total from Investment Operations .25 .22 .25
Distributions:
Dividends from investment income--net (.14) (.13) (.16)
Net asset value, end of period 14.25 14.23 14.23
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 10.53(c) 9.39(c) 10.47
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets(b) 1.42 1.78 1.60
Ratio of net investment income to average net assets(b) 5.04 5.28 6.19
Portfolio Turnover Rate(d) 253.70 253.70 253.70
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 650 32 1
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000.
(B) ANNUALIZED.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Core Bond Fund (the "fund") is a separate diversified series of
Dreyfus Debt and Equity Funds (the "Company") 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 six series, including the fund. The fund's investment objective is to
maximize total return, consisting of capital appreciation and current income.
The Dreyfus Corporation (the "Manager") serves as the fund's investment adviser.
The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon"), which is a
wholly-owned subsidiary of Mellon Financial Corporation.
On February 9, 2000, the Company's Board of Trustees approved, effective March
1, 2000, a change of the fund's name from "Dreyfus Core Bond Fund" to "Dreyfus
Premier Core Bond Fund," coinciding with the fund implementing a multiple class
structure. Shareholders, on March 1, 2000, were reclassified as Class A
shareholders and the fund added Class B, Class C and Class R shares.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue an unlimited number of $.001 par value shares in the
following classes of shares: Class A, Class B, Class C and Class R shares. Class
A shares are subject to a sales charge imposed at the time of purchase, Class B
shares are subject to a contingent deferred sales charge ("CDSC") imposed on
Class B share redemptions made within six years of purchase, Class C shares are
subject to a CDSC imposed on Class C shares redeemed within one year of purchase
and Class R shares are sold at net asset value per share only to institutional
investors. Other differences between the classes include the services offered to
and the expenses borne by each class and certain voting rights.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
charged to that series' operations; expenses which are applicable to all series
are allocated among them on a pro rata basis.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding short-term
investments, other than U.S. Treasury Bills, and financial futures) are valued
each business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily available
and are representative of the bid side of the market in the judgment of the
Service are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by the
Service based upon its evaluation of the market for such securities). Other
investments (which constitute a majority of the portfolio securities) are
carried at fair value as determined by the Service, based on methods which
include consideration of: yields or prices of securities of comparable quality,
coupon, maturity and type; indications as to values from dealers; and general
market conditions. Securities for which there are no such valuations are valued
at fair value as determined in good faith under the direction of the Board of
Trustees. Short-term investments, excluding U.S. Treasury Bills, are carried at
amortized cost, which approximates value. Financial futures 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 denominated in foreign currencies are translated
to U.S. dollars at the prevailing rates of exchange.
(b) Foreign currency transactions: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in the market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss on investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amount of
dividends, interest and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities at fiscal year end,
resulting from changes in exchange rates. Such gains and losses are included
with net realized and unrealized gain or loss on investments.
(c) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund receives net
earnings credits based on available cash balances left on deposit.
(d) Dividends to shareholders: It is the policy of the fund to declare dividends
daily from investment income-net. Such dividends are paid monthly. Dividends
from net realized capital gain are normally declared and paid annually, but the
fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code of 1986, as amended (the
" Code" ). To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
The fund has an unused capital loss carryover of approximately $7,932,000
available for Federal income tax purposes to be applied The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
against future net securities profits, if any, realized subsequent to October
31, 1999. If not applied, $1,064,000 of the carryover expires in fiscal 2003 and
$6,868,000 expires in fiscal 2007.
During the period ended April 30, 2000, the fund increased accumulated
undistributed investment income-net by $303,687 and decreased accumulated net
realized gain (loss) on investments by $303,687. Net assets were not effected by
this reclassification.
NOTE 2--Bank Lines of Credit:
The fund may borrow up to $20 million for leveraging purposes under a short-term
unsecured line of credit and participates with other Dreyfus-managed funds in a
$100 million unsecured line of credit primarily to be utilized for temporary or
emergency purposes, including the financing of redemptions. Interest is charged
to the fund at rates which are related to the Federal Funds rate in effect at
the time of borrowings.
The average daily amount of borrowings outstanding under the leveraging
arrangement during the period ended April 30, 2000 was approximately $932,400,
with a related weighted average annualized interest rate of 5.85%.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .60 of 1% of the value of the fund's average
daily net assets and is payable monthly.
DSC retained $3,301 during the period ended April 30, 2000 from commissions
earned on sales of the fund's shares.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the distributor for distributing
their shares at an annual rate of .50 of 1% of the value of the average daily
net assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended April 30, 2000, Class B and
Class C shares were charged
$207 and $21, respectively, pursuant to the Plan, of which $188 and $20 for
Class B and Class C shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the distributor at an annual rate of .25 of 1% of the value of their average
daily net assets for the provision of certain services. The services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The distributor determines the amounts to be paid to Service
Agents. During the period ended April 30, 2000, Class A, Class B and Class C
shares were charged $377,759, $103 and $7, respectively, pursuant to the
Shareholder Services Plan, of which $87,835, $94 and $7 for Class A, Class B and
Class C shares, respectively, were paid to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2000, the fund was charged $96,732 pursuant to the transfer
agency agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended April 30, 2000, the fund was
charged $14,187 pursuant to the custody agreement.
(d) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales (including paydowns) of
investment securities, excluding short-term securities, financial The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
futures and forward currency exchange contracts, during the period ended April
30, 2000, amounted to $884,182,547 and $849,301,387, respectively.
The fund may enter into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings. When executing forward currency exchange contracts, the fund
is obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The fund realizes a gain if the value of the
contract increases between those dates. The fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract. At April 30, 2000, there were no open forward currency exchange
contracts.
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 market value of the contracts at the close
of each day' s trading. Accordingly, 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. Contracts open at April 30, 2000,
are set forth in the Statement of Financial Futures.
(b) At April 30, 2000, accumulated net unrealized depreciation on investments
and financial futures was $2,692,632, consisting of $6,227,158 gross unrealized
appreciation and $8,919,790 gross unrealized depreciation.
At April 30, 2000, 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).
The Fund
NOTES
For More Information
Dreyfus Premier Core Bond Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 031SA004
