DEAR SHAREHOLDER,
We are pleased to provide you with the Dreyfus European Fund's Semi-Annual
Report for the six months ended April 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on your Fund's investment management
strategy and detailed financial statements for the past six months.
As you know, the Fund has been integrated into The Dreyfus Family of
Funds. We hope that you found the transition from The Laurel Funds to The
Dreyfus Family of Funds to be a smooth one. The extended family of funds
now offers you more investment alternatives in addition to expanded ser-
vices and privileges to better serve your investment needs.
We would like to extend our appreciation for your support of The Dreyfus
Family of Funds and hope that the Fund will continue to satisfy your in-
vestment needs. As always, we welcome your thoughts and suggestions.
Sincerely,
Marie E. Connolly
President
The Dreyfus/Laurel Funds, Inc. --
Dreyfus European Fund
June 20, 1995
TABLE OF CONTENTS
Shareholder Letter 1
International Economic Review 3
Portfolio Overview 4
Portfolio of Investments 5
Statement of Assets and Liabilities 15
Statement of Operations 17
Statement of Changes in Net Assets 18
Financial Highlights 19
Notes to Financial Statements 22
INTERNATIONAL ECONOMIC REVIEW
EUROPEAN STOCK MARKETS: THE ROLE OF THE DOLLAR
During the six-month period ended April 30, 1995, European economies nar-
rowed the gap with the U.S. with strong recoveries of their GDP's. At
first glance, this growth can be viewed as being fully discounted in Euro-
pean stock prices, as they have risen by 4.7% as measured against the Mor-
gan Stanley Capital International (MSCI Europe 14) Index (in USD). How-
ever, this return leads to two observations. First, the positive perfor-
mance is attributable to the appreciation of European currencies versus
the U.S. dollar. The second is that the recovery and expected growth of
European economies was not fully discounted in stock prices when measured
in European currencies, as the average local price return was 0.3% over
the last 6 months.
On average, European countries have experienced an appreciation of their
currency versus the U.S. dollar by 5%, with the exception of Italy which
encountered political instability over the period. This in turn led to a
drop in the value of the Italian lira versus the U.S. dollar of -8.2%. The
weakness of the U.S. dollar was not directly attributable to the strength
of European monetary policies, but was a result of events such as the Mex-
ican peso crisis. Therefore, it is our belief that this trend will not
persist over the next 6 months, particularly in view of the possibility of
an increase in U.S. interest rates and a decrease in major European inter-
est rates.
EXPECTATIONS OF GROWTH
The average increase of 0.83% in local stock prices between October 1994
and April 1995 (MSCI Local European indices without dividends) was un-
evenly distributed. The countries that fared favorably were Sweden
(+5.3%), Belgium (+4.3%), Italy (+8.7%) and Ireland (+8.6%) while Finland
(-7.5%), Austria (-6.5%), Spain (-4.2%), Germany (-3.3%) and Denmark
(-2.1%) performed below expectations. Unresolved political issues in some
European countries in recent months heightened economic uncertainties
(i.e., in Norway, Sweden and Finland the referendum over EEC membership.
Germany and France's presidential elections, etc.) and resulted in a "wait
and see" investment policy among European stock fund managers. These mat-
ters have now been resolved (except in Italy and Spain), and stock markets
have remained strong on fundamentals and expectations that European in-
vestments will be rewarding in the long run.
PORTFOLIO OVERVIEW
The Dreyfus European Fund (the "Fund") seeks to approximate in the short-
term, and outperform in the long run, the Morgan Stanley Capital Interna-
tional Europe Index (the "benchmark") by allocating the Fund's assets
across countries and among stocks of companies located in Austria, Bel-
gium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands,
Norway, Spain, Sweden, Switzerland and the United Kingdom. The Fund's man-
agement relies at first on a Country Allocation Model to predict country
weightings with a limited relative risk of 3.5% to that of the MSCI Europe
14 Index. Secondly, a Stock Selection Model, combined with a Stock Risk
Analyzer, is utilized to construct local portfolios aimed at outperforming
local MSCI Indices, again with a controlled tracking error. Over a period
of several years, the Fund's overperformance is expected to come from
country and equity over- or underweightings.
For the six month period ended April 30, 1995, the Dreyfus European Fund's
Investor shares and Class R shares posted total returns of 2.82%* and
2.85%*, respectively, while the benchmark posted a total return of 3.97%
for the same time period.
The overweightings of Spain, Ireland and Italy and the underweightings of
Switzerland and Sweden negatively affected the Fund's relative performance
while other countries' performances were in line with expectations. De-
spite underperforming the benchmark, the Fund's management will continue
to maintain current positions until signs of major shifts in European
country fundamentals are observed.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DREYFUS EUROPEAN FUND APRIL 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<S> <C> <C>
COMMON STOCKS -- 98.6%
UNITED KINGDOM -- 26.7%
12,000 Allied Irish Banks $ 55,802
401 Argyll Group PLC 1,852
9,000 Associated British Foods PLC 94,129
12,156 B.A.T. Industries PLC 92,126
17,100 Bank of Ireland PLC 92,450
13,452 Barclays Bank PLC 138,528
6,000 BBA Group 19,984
9,000 Beazer Homes PLC 20,129
13,871 Boots Company PLC 114,943
5,000 British Gas PLC 24,216
10,579 British Petroleum Company PLC 76,600
34,970 British Telecommunications PLC 219,447
7,498 BTR PLC 39,331
18,393 General Electric Company PLC 90,561
18,691 Glaxo Holdings PLC 221,651
7,820 Great Universal Stores PLC 74,490
15,600 Guinness PLC 118,729
48,981 Hanson PLC 186,786
6,000 Hillsdown Holdings PLC 17,764
6,200 Imperial Chemical Industries PLC 75,020
4,000 Laing (John) PLC 13,001
17,357 Lasmo PLC 47,164
6,234 Lloyds Bank PLC 64,097
25,000 Meggit 29,566
5,000 Meyer International 27,112
9,500 National Power PLC 69,398
1,600 Norcros 2,317
5,918 Pearson PLC 54,658
18,000 Pilkington PLC 51,554
7,000 Ratners Group 1,690
12,400 Reuters PLC 94,274
19,344 Royal Bank of Scotland Group PLC 130,416
5,919 Sainsbury PLC 41,715
11,000 Sedgwick Group PLC 27,788
16,000 Simon Engineering 17,764
177 Smithkline Beecham PLC 1,349
8,000 Smurfit Group 47,370
17,000 Southern Water PLC 160,567
2,766 Thames Water PLC 21,630
35 Thorn-EMI PLC 638
3,000 Vickers PLC 9,027
25,000 Waterford Glass 21,923
3,714 Williams Holding PLC 19,601
8,000 Willis Corroon PLC 19,936
4,000 Wilson Holdings PLC 10,105
8,000 Wimpey (George) PLC 17,249
10,000 Woodchester Investment 22,205
4,200 Zeneca Group PLC 61,025
2,859,677
FRANCE -- 19.7%
45 Air Liquide (L') 7,229
2,035 AXA Company 107,264
4,500 Cap Gemini Sogeti 164,718
120 Carrefour 60,153
700 Cerus (Cie Europenne Reunis) 12,029
1,100 Cie Financiale (Paribas) 67,107
1,500 Clarins 144,006
1,600 Club Mediterranee 161,383
1,026 Compagnie de St. Gobain 132,697
375 Compagnie Financiere de Suez 19,515
15 Damart 14,550
660 Danone (EX BSN) 109,116
1,500 Dassault Electron 104,260
500 DMC (Dollfus-Mieg & Cie) 25,114
1,140 Eaux (Cie Generale Des) 120,085
200 Esso Francaise 23,996
50 Eurafrance 15,709
1,000 Finextel 14,032
30 Fromageries 26,977
300 Groupe Andre 26,233
1,477 GTM-Entrepose 123,747
539 LVMH Moet Hennessey 102,484
763 Lyonnaise des Eaux Dumez 75,842
60 Salomon SA 23,671
200 Sat sa de Telecom 82,603
30 Skis Rosignols 7,900
962 Societe Generale 105,639
2,837 Societe National Elf Aquitaine 226,556
2,104,615
GERMANY -- 13.1%
130 Agriv 41,453
150 Allianz Holdings AG 274,754
30 Bayer AG 7,380
218 Bayerische Motoren Werke AG 111,662
300 Commerzbank AG 72,287
70 Daimler Benz Group AG 32,057
125 Deutsche Bank AG 61,303
150 Didier-Werke 11,471
45 Dresdner Bank AG 12,482
460 Gerresheimer Glas AG 74,004
100 Heidelberg (Portland-Zementwerke) 79,356
50 Krones AG 23,807
200 Linde AG 114,543
100 M.A.N. AG 24,781
250 Preussag AG 72,323
100 Schering Group AG 74,198
380 Siemens AG 184,497
50 Strabag Bau AG 15,258
310 Veba AG 115,399
1,403,015
SPAIN -- 7.0%
1,600 Argentaria 51,730
1,150 Autopista Cesa 10,557
1,494 Banco Bilbao Vizcaya 40,293
500 Centros Comersiales Pryca 8,855
2,800 Empresa Nacional de Elec (Endesa) 132,380
100 Fomento de Construcciones y Contratas SA 9,180
600 Gas Natural S.D.G. SA 59,951
6,500 Iberdrola SA 42,770
200 Portland Valderrivas 14,622
500 Prosegur Compania Securi SA 10,398
4,000 Repsol SA 127,376
11,300 Telefonica de Espana 138,152
1,000 Zordoya Otis 105,199
751,463
ITALY -- 6.1%
4,361 Assicurazioni Generali SPA 104,778
15,600 Banca Commerciale Italiana 34,976
22,000 Banco Ambrosiano Veneto 67,380
3,400 Benetton 33,363
8,000 Cementir SPA 5,999
4,000 Cir-Compagnie Industriale 3,414
7,000 Credito Italiano SPA 7,905
10,500 Fiat SPA 42,712
8,000 Fidis 18,555
2,000 Franco Tosi 17,068
9,500 Gilini 25,198
10,100 Italgas 26,549
10,000 Olivetti Group SPA 10,140
22,000 Pirelli SPA 30,354
9,000 Premafin Financeria 4,651
1,120 RAS 11,789
6,000 SIP Di Risp 12,489
1,700 Sirti SPA 12,203
2,400 SME (Meridionale Finanziaria) 5,716
28,000 Snia BPD 33,054
52,460 Telecom Italia SPA 139,613
647,906
SWITZERLAND -- 5.5%
70 Ciba Geigy AG 47,812
140 Credit Suisse Holdings 58,573
100 Nestle SA 97,738
5 Roche Holdings AG 52,843
225 Sandoz AG 147,196
60 Schweizerische Bankgesellschaft 55,236
170 Schweizerischer Bankverein 55,979
200 SMH AG Nuenberg 23,408
50 Zurich Versicherung 53,062
591,847
NETHERLANDS -- 5.2%
1,200 ABN Amro Holdings 46,142
800 Ahold (Kon) N.V. 27,515
300 Akzo Nobel N.V. 34,780
2,500 Elsevier N.V. 27,373
700 International Nederlanden Groep 36,880
1,400 Koninklijke PTT NED 48,783
1,000 Nutricia Verenigde Bedrijven 54,232
1,200 Philips Electronics N.V. 45,756
1,700 Royal Dutch Petroleum Company 209,681
350 Van Ommerren 9,693
200 Wolters Kluwer CVA 16,269
557,104
NORWAY -- 4.7%
3,300 Dyno Industrier 87,887
4,200 Hafslund Nycomed, Class B 91,305
1,100 Kvaerner, Class A 50,297
3,800 Norsk Hydro AS 154,853
1,500 Orkla Booregaard 64,375
1,700 Skogsindustries, Class A 58,094
506,811
DENMARK -- 3.3%
2,200 Carlsberg, Class B 111,587
1,700 International Service Systems AS, Class B 49,674
400 Novo Nordisk AS, Class B 41,239
1,230 Sophus Berenden, Class B 113,698
500 Superfos AS 37,306
353,504
FINLAND -- 3.2%
15,000 Kansallis-Osake-Pankki 15,054
2,000 Nokia AB 82,073
2,000 Nokia 81,604
3,200 Outokumpu, Class A 57,179
3,800 Pohjola, Class B, Free 51,237
1,100 Repola 22,106
600 Stockmann AB, Class B, Free 28,280
337,533
IRELAND -- 2.7%
11,000 CRH 68,672
13,000 Clondalkin 62,753
2,139 Greencore 15,212
22,500 Irish Life 72,226
7,680 Kerry Group 45,723
10,000 Woodchester Investment UTS 21,883
286,469
BELGIUM -- 1.4%
210 Generale de Banque 66,025
13 Glaverbal NPV VVPR 1,786
80 Petrofina 24,956
50 Solvay, Class A, NPV 26,858
80 Tractoebel 28,672
148,297
TOTAL COMMON STOCKS (Cost $9,213,246) 10,548,241
RIGHTS AND WARRANTS -- 0.1%
2,600 Banco Commerciale Italiana SPA Warrants, expire
12/31/1995** 1,368
160 RAS Warrants, expires 12/31/1997** 575
175 Schweiz Ruckversic, Class B, Warrants, expire
06/30/1995** 1,834
30 Skis Rossegnol Rights, expire 06/20/1995** 1,508
TOTAL RIGHTS AND WARRANTS (Cost $2,084) 5,285
FACE
VALUE
COMMERCIAL PAPER -- 1.4%
(Cost $153,000)
$153,000 General Electric Company,
5.900% due 05/01/1995 153,000
TOTAL INVESTMENTS (Cost $9,368,330*) 100.1% 10,706,526
OTHER ASSETS AND LIABILTIES (NET) (0.1) (7,937)
NET ASSETS 100.0% $10,698,589
<FN>
* Aggregate cost for Federal tax purposes.
** Non-income producing security.
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
PERCENTAGE OF VALUE
SECTOR DIVERSIFICATION NET ASSETS (NOTE 1)
<S> <C> <C>
COMMON STOCKS:
Financial Services 19.6% $ 2,092,192
Utilities 11.7 1,247,568
Food and Kindred Products 6.8 724,376
Manufacturing 5.6 602,210
Engineering and Construction 5.5 585,226
Oil and Gas 5.3 563,070
Basic Industries 5.0 536,820
Business Services 4.6 488,657
Health Care Services 4.5 485,633
Communication 4.4 466,355
Consumer Services 3.4 367,160
Non-Durable Goods 3.3 356,494
Durable Goods 2.9 313,161
Chemicals 2.8 300,439
Insurance 2.1 228,241
Retail 2.0 210,033
Technology 1.2 123,427
Transportation 1.0 106,797
Forestry Products and Paper 0.7 80,200
Printing and Publishing 0.7 70,928
Capital Goods 0.5 58,489
Automobiles 0.5 55,739
Other 4.5 485,026
TOTAL COMMON STOCKS 98.6% 10,548,241
RIGHTS & WARRANTS 0.1% 5,285
COMMERCIAL PAPER 1.4% 153,000
TOTAL INVESTMENTS 100.1% 10,706,526
OTHER ASSETS AND LIABILITIES (NET) (0.1)% (7,937)
NET ASSETS 100.0% $10,698,589
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
CONTRACT VALUE
VALUE DATE (NOTE 1)
<S> <C> <C>
Forward Foreign Exchange Contracts to Buy
175,000 Netherland Guilders 05/11/95 $ 112,768
320,000 Norwegian Krones 05/11/95 51,348
320,000 Netherland Guilders 05/11/95 206,204
245,000 Finnish Marks 05/11/95 57,460
500,000 French Francs 05/11/95 101,607
1,466,000 German Deutsche Marks 08/24/95 1,063,332
Total Forward Foreign Exchange Contracts to Buy
(Contract amount $1,530,235) $ 1,592,719
Forward Foreign Exchange Contracts to Sell
3,216,500 Belgian Francs 05/11/95 $ (112,555)
71,111 German Deutsche Marks 05/11/95 (51,326)
128,359 British Pounds 05/11/95 (206,547)
420,175 Swedish Krona 05/11/95 (57,779)
2,932,000 German Deutsche Marks 08/24/95 (2,126,664)
Total Forward Foreign Exchange Contracts to Sell
(Contract amount $2,432,245) $(2,554,871)
</TABLE>
See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES
DREYFUS EUROPEAN FUND APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS
Investments, at value (Cost $9,368,330) (Note 1) See
accompanying schedule $10,706,526
Cash and foreign currency (Cost $123,892) 130,972
Receivable for forward foreign exchange contracts to
sell 2,432,245
Receivable for investment securities sold 1,601,262
Receivable for foreign exchange contracts to buy, at
value (Contract cost $1,530,235) (Note 1)
See accompanying schedule 1,592,719
Dividends and interest receivable 50,325
TOTAL ASSETS 16,514,049
LIABILITIES:
Forward foreign exchange contracts to sell, at value
(Contract cost $2,432,245) (Note 1)
See accompanying schedule $2,554,871
Payable for investment securities purchased 1,675,984
Payable for forward foreign exchange contracts to
buy 1,530,235
Investment management fee payable (Note 2) 43,368
Accrued Directors' fees and expenses (Note 2) 2,315
Distribution fee payable (Note 3) 51
Accrued expenses and other payables 8,636
TOTAL LIABILITIES 5,815,460
NET ASSETS $10,698,589
NET ASSETS consist of:
Undistributed net investment income $ 18,112
Accumulated net realized gain on investments sold,
forward foreign exchange contracts, foreign cur-
rency transactions and net
other assets 476,158
Net unrealized appreciation of investments, forward
foreign exchange contracts, foreign currency
transactions and net other assets 1,285,134
Par value 964
Paid-in capital in excess of par value 8,918,221
TOTAL NET ASSETS $10,698,589
NET ASSET VALUE
INVESTOR SHARES
Net asset value, offering and redemption price per
share ($247,168 / 22,215 shares of capital stock
outstanding) $ 11.13
CLASS R SHARES
Net asset value, offering and redemption price per
share ($10,451,421 / 941,843 shares of capital
stock outstanding) $ 11.10
</TABLE>
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
DREYFUS EUROPEAN FUND
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes
of $15,940) $ 101,583
Interest 5,337
TOTAL INVESTMENT INCOME 106,920
EXPENSES:
Investment management fee (Note 2) $ 87,581
Directors' fees and expenses (Note 2) 1,012
Distribution fee (Note 3) 188
TOTAL EXPENSES 88,781
NET INVESTMENT INCOME 18,139
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 4):
Net realized gain/(loss) on:
Securities transactions 484,089
Forward foreign exchange contracts (4,173)
Foreign currencies (3,783)
Net realized gain on investments during the period 476,133
Net change in unrealized appreciation/
(depreciation) of:
Securities (153,432)
Forward foreign exchange contracts (60,142)
Currencies and net other assets 3,504
Net unrealized depreciation of investments during
the period (210,070)
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 266,063
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 284,202
</TABLE>
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS
DREYFUS EUROPEAN FUND
<TABLE>
<CAPTION>
SIX
MONTHS YEAR
ENDED ENDED
4/30/95 10/31/94
(UNAUDITED)
<S> <C> <C>
Net investment income $ 18,139 $ 101,261
Net realized gain on securities transactions, for-
ward foreign exchange contracts and foreign cur-
rencies during the period 476,133 1,315,398
Net unrealized depreciation on securities, forward
foreign exchange contracts, currencies and net
other assets during
the period (210,070) (834,355)
Net increase in net assets resulting from operations 284,202 582,304
Distributions to shareholders from net investment
income:
Investor shares (373) --
Class R shares (86,136) (95,131)
Distribution to shareholders from net realized gain
on investments:
Investor shares (7,780) --
Class R shares (1,268,308) (670,815)
Net increase in net assets from Fund share transac-
tions (Note 5):
Investor shares 175,397 47,089
Class R shares 756,446 500,854
Net increase/(decrease) in net assets (146,552) 364,301
NET ASSETS:
Beginning of period 10,845,141 10,480,840
End of period (including undistributed net invest-
ment income of $18,112 and $86,482, respectively) $ 10,698,589 $10,845,141
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS EUROPEAN FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX
MONTHS PERIOD
ENDED ENDED
4/30/95++ 10/31/94*++
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period $12.50 $11.78
Income from investment operations:
Net investment income 0.01 0.05
Net realized and unrealized gain on investments 0.20 0.67
Total from investment operations 0.21 0.72
Less distributions:
Distibutions from net investment income (0.07) --
Distributions from net realized capital gains (1.51) --
Total distributions (1.58) --
Net asset value, end of period $11.13 $12.50
Total return+ 2.82% 6.11%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 247 $ 48
Ratio of operating expenses to average net assets 2.00%** 2.00%**
Ratio of net investment income to average net assets 0.11%** 0.73%**
Portfolio turnover rate 40% 46%
<FN>
* The Fund commenced selling Investor shares on April 14, 1994. The Fund
has had the following investment advisers: CCF International Finance
Corporation (January 5, 1987 to October 31, 1993); Mellon Bank N.A.
(November 1, 1993 to October 16, 1994); and Dreyfus Corporation (Octo-
ber 17, 1994 to present).
** Annualized.
+ Total return represents aggregate total return for the period indi-
cated.
++ Per share amounts have been calculated using the monthly average share
method, which more appropriately presents the per share data for the
period since the use of the
undistributed net investment income method does not accord with the
results of operations.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS EUROPEAN FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX
MONTHS YEAR YEAR
ENDED ENDED ENDED
4/30/95(1) 10/31/94*(1) 10/31/93+
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period $ 12.50 $ 12.70 $ 10.96
Income from investment operations:
Net investment income/(loss) 0.02 0.12++ 0.11
Net realized and unrealized gain/(loss) on invest-
ments 0.19 0.63 1.73
Total from investment operations 0.21 0.75 1.84
Less distributions:
Distributions from net investment income (0.10) (0.12) (0.10)
Distributions from net realized capital gains (1.51) (0.83) --
Distributions from capital -- -- --
Total Distributions (1.61) (0.95) (0.10)
Net asset value, end of period $ 11.10 $ 12.50 $ 12.70
Total return+++ 2.85% 5.97% 16.88%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $10,451 $10,797 $10,481
Ratios of expenses to average net assets 1.75%** 1.75%# 1.83%#
Ratios of net investment income to average net as-
sets 0.36%** 0.98%# 0.59%#
Portfolio turnover rate 40% 46% 12%
<FN>
* The Fund commenced operations on January 5, 1987. On April 14, 1994,
the Fund commenced selling Investor shares. Those shares outstanding
prior to April 14, 1994 were designated as Trust shares. On October
17, 1994, the Fund's Trust shares were reclassified as Class R shares.
The Fund has had the following investment advisers: CCF International
Finance Corporation (January 5, 1987 to October 31, 1993); Mellon Bank
N.A. (November 1, 1993 to October 16, 1994); and The Dreyfus Corpora-
tion (October 17, 1994 to present).
** Annualized.
+ Audited by Tait, Weller & Baker, Certified Public Accountants.
++ Net investment income before expenses reimbursed by the investment ad-
viser was $0.09 for the year ended October 31, 1994.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/92+ 10/31/91+ 10/31/90+ 10/31/89+ 10/31/88+ 10/31/87*+
<S> <C> <C> <C> <C> <C>
$ 11.12 $ 11.01 $ 9.30 $ 9.22 $ 8.93 $ 10.00
0.12 (0.02) 0.21 (0.13) (0.58) (0.01)
(0.10) 0.57 1.53 0.21 1.10 (1.06)
0.02 0.55 1.74 0.08 0.52 (1.07)
-- (0.08) (0.03) -- -- --
(0.18) (0.36) -- -- -- --
-- -- -- -- (0.23) --
(0.18) (0.44) (0.03) -- (0.23) --
$ 10.96 $ 11.12 $ 11.01 $ 9.30 $ 9.22 $ 8.93
0.16% 5.12% 18.73% 0.87% 5.73%(2) (10.70)%(2)
$15,648 $17,204 $14,643 $12,174 $1,116 $ 1,768
1.57%# 1.67% 1.52% 4.75%# 7.27 %# 2.62%**#
0.92%# (0.16)% 1.96% (1.68)%# (4.67)%# (0.06)%**#
7% 5% 16% 69% 102% 99%
<FN>
+++ Total return represents aggregate total return for the periods indi-
cated.
# For the year ended October 31, 1994, the ratio of operating expenses to
average net assets before reimbursement of expenses by the investment
adviser was 2.02%. For
the years or period ended October 31, 1993, 1992, 1989, 1988 and 1987,
the ratio of
operating expenses and the ratio of net investment income to average
net assets on an annualized basis before reimbursement of expenses by
CCF International Finance Corp. and Capstone Asset Management Company
were 2.41% and 0.01%; 1.82% and 0.67%; 5.42% and (3.00)%; 8.27% and
(5.67)%; and 5.28% and (2.72)%, respectively.
(1) Per share amounts have been calculated using the monthly average
share method, which more appropriately presents the per share data
for the period since the use of the
undistributed net investment income method does not accord with the
results of operations.
(2) Unaudited.
</TABLE>
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Funds, Inc. (the "Investment Company"), The Dreyfu-
s/Laurel Funds Trust, The Dreyfus/Laurel Tax-Free Municipal Funds and The
Dreyfus/Laurel Investment Series are all registered open-end management
investment companies that are now part of The Dreyfus Family of Funds. The
Investment Company is a series mutual fund which consists of 19 separate
investment portfolios. These financial statements report on the Dreyfus
European Fund (the "Fund"). The Investment Company was incorporated on Au-
gust 6, 1987 as a Maryland corporation and is registered with the Securi-
ties and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"), as a diversified, open-end management investment
company. The Fund offers two classes of shares: Investor shares and Class
R shares. The Investor shares are sold primarily to retail investors and
bear a distribution fee. The 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. Each class of shares has identical rights and privi-
leges, except with respect to distribution fees and voting rights on mat-
ters affecting a single class. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation
of its financial statements.
(A) PORTFOLIO VALUATION
Investments in equity securities traded on a Western European securities
exchange are valued at the last reported sales price or, in the absence of
a recorded sale, at the last current bid price. A security which is listed
or traded on more than one exchange is valued at the quotation on the ex-
change determined to be the primary market for such security. Interna-
tional securities traded principally over-the-counter are valued on the
basis of the last sales price. When market quotations are not readily
available, securities are valued at fair value as determined in good faith
by the Board of Directors. Debt securities with maturities of 60 days or
less are valued at amortized cost.
(B) FORWARD FOREIGN CURRENCY CONTRACTS
The Fund engages in forward foreign currency contracts. Forward foreign
currency contracts are valued at the forward rate and are marked-to-market
daily. The change in market value is recorded by the Fund as an unrealized
gain or loss. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at
the time it was opened and the value at the time it was closed.
The use of forward foreign currency contracts does not eliminate fluctua-
tions in the underlying prices of the Fund's portfolio securities, but it
does establish a rate of exchange that can be achieved in the future. Al-
though forward foreign currency contracts limit the risk of loss due to a
decline in the value of the hedged currency, they also limit any potential
gain that might result should the value of the currency increase. In addi-
tion, the Fund could be exposed to risks if the counterparties to the con-
tracts are unable to meet the terms of their contracts.
(C) FOREIGN CURRENCY
The books and records of the Fund are maintained in United States (U.S.)
dollars. Any foreign currencies, investments and other assets and liabili-
ties are translated into U.S. dollars at the exchange rates prevailing at
the end of the period. Purchases and sales of investment securities and
income and expenses are translated on the respective dates of such trans-
actions. Unrealized gains and losses which result from changes in foreign
currency exchange rates have been included in the unrealized appreciation-
/(depreciation) of investments and net other assets. Net realized foreign
currency gains and losses resulting from changes in exchange rates include
foreign currency gains and losses between trade date and settlement date
on investment securities transactions, foreign currency transactions and
the difference between the amounts of interest and dividends recorded on
the books and the amount actually received. The portion of foreign cur-
rency gains and losses related to fluctuation in exchange rates between
the initial purchase trade date and subsequent sale trade date is included
in realized gains and losses on investment securities sold.
(D) SECURITY TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Dividend income
is recorded on the ex-dividend date. Interest income is recorded on the
accrual basis. Realized gains and losses from securities transactions are
recorded on the identified cost basis. Investment income and realized and
unrealized gains and losses are allocated based upon relative daily net
assets of each class.
(E) EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any
class of shares are prorated between its classes based upon the relative
average daily net assets of each class. Distribution expense is directly
attributable to a particular class of shares and is charged only to that
class' operations.
(F) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income, if any, are determined on a class
level and are declared and paid annually. Distributions from net realized
capital gains, if any, are determined on a Fund level and are declared and
paid annually. Additional distributions of net investment income and capi-
tal gains for the Fund may be made at the discretion of the Board of Di-
rectors in order to avoid the 4% nondeductible federal excise tax. Income
distributions and capital gain distributions on a Fund level are deter-
mined in accordance with income tax regulations which may differ from gen-
erally accepted accounting principles. These differences are primarily due
to differing treatments of income and gains on various investment securi-
ties held by the Fund, timing differences and differing characterization
of distributions made by the Fund as a whole.
(G) FEDERAL INCOME TAXES
The Fund intends to qualify as a regulated investment company by complying
with the requirements of the Internal Revenue Code applicable to regulated
investment companies and by distributing substantially all of its taxable
income to its shareholders. Therefore, no federal income tax provision is
required.
2. INVESTMENT MANAGEMENT FEE, DIRECTORS' FEES AND OTHER PARTY TRANSACTIONS
The Investment Company has entered into an investment management agreement
with The Dreyfus Corporation (the "Manager"), a wholly-owned subsidiary of
Mellon Bank, N.A. The Manager provides, or arranges for one or more third
parties to provide, investment advisory, administrative, custody, fund ac-
counting and transfer agency services to the Investment Company. The Man-
ager also directs the investments of the Fund in accordance with its in-
vestment objectives, policies and limitations. For these services, the
Fund pays the Manager a fee, calculated daily and paid monthly, at the an-
nual rate of 1.75% 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, taxes, interest, Rule 12b-1 distribution fees and expenses,
fees and expenses of non-interested directors (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 ex-
penses of the non-interested directors (including counsel).
S.A.M. Finance, S.A. ("Sub-Advisor"), a wholly-owned subsidiary of Credit
Commercial de France, serves as the Fund's Sub-Advisor pursuant to a sub-
advisory agreement among the Fund, the Sub-Advisor and the Manager. For
its services, the Sub-Advisor is paid an annual fee of 0.60% of the value
of the Fund's average daily net assets and is paid by the Manager out of
its fee.
Premier Mutual Fund Services, Inc. ("Premier") serves as the Investment
Company's distributor. Premier also serves as the Investment Company's
sub-administrator and, pursuant to a sub-administration agreement with the
Manager, provides various administrative and corporate secretarial ser-
vices to the Investment Company.
No officer or employee of Premier (or of any parent, subsidiary or affili-
ate thereof) receives any compensation from the Investment Company, The
Dreyfus/Laurel Funds Trust, The Dreyfus/Laurel Tax-Free Municipal Funds or
The Dreyfus/Laurel Investment Series (collectively, "The Dreyfus/Laurel
Funds") for serving as an officer, Director or Trustee of The Dreyfus/Lau-
rel Funds. In addition, no officer or employee of the Manager (or of any
parent, subsidiary or affiliate thereof) serves as an officer, Director or
Trustee of The Dreyfus/Laurel Funds. The Dreyfus/Laurel Funds pay each Di-
rector or Trustee who is not an officer or employee of Premier (or any
parent, subsidiary or affiliate thereof) or of the Manager, $27,000 per
annum, $1,000 for each Board meeting attended and $750 for each Audit Com-
mittee meeting attended, and reimburse each Director or Trustee for travel
and out-of-pocket expenses
3. DISTRIBUTION PLAN
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule
12b-1 of the 1940 Act relating to its Investor shares. Under the Plan, the
Fund may pay up to 0.25% of the value of the average daily net assets at-
tributable to its Investor shares to compensate Premier and Dreyfus Ser-
vice Corporation, an affiliate of the Manager, for shareholder servicing
activities and Premier for activities primarily intended to result in the
sale of Investor shares. The Class R shares bear no distribution fee.
Under its terms, the Plan shall remain in effect from year to year, pro-
vided such continuance is approved annually by a vote of a majority of
those Directors who are not "interested persons" of the Investment Company
and who have no direct or indirect financial interest in the operation of
the Plan or in any agreement related to the Plan.
4. SECURITIES TRANSACTIONS
The cost of purchases and proceeds from sales of securities, excluding
short-term investments and U.S. Government Securities, for the six months
ended April 30, 1995 were $4,050,430 and $4,332,336, respectively.
At April 30, 1995, aggregate gross unrealized appreciation for all securi-
ties in which there is an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there is an ex-
cess of tax cost over value were $1,593,100 and $254,904, respectively.
5. SHARES OF CAPITAL STOCK
The Investment Company has authority to issue 25 billion shares of capital
stock with a par value of $.001. The Fund has authority to issue two
classes of shares. The table below summarizes the transactions in Fund
shares for the periods indicated:
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1995 OCTOBER 31, 1994*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
INVESTOR SHARES:
Sold 461,472 $ 4,775,663 6,054 $ 73,438
Issued as reinvestment of dividends 486 4,976 -- --
Redeemed (443,586) (4,605,242) (2,211) (26,349)
Net increase 18,372 $ 175,397 3,843 $ 47,089
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
CLASS R SHARES:
Sold 8,629 $ 96,335 65,212 $ 811,065
Issued as reinvestment of dividends 129,393 1,321,099 60,719 752,008
Redeemed (60,000) (660,988) (87,074) (1,062,219)
Net increase 78,022 $ 756,446 38,857 $ 500,854
<FN>
* The Fund commenced selling Investor shares on April 14, 1994. Those
shares outstanding prior to April 4, 1994 were designated as Trust
shares. Effective October 17, 1994, the Fund's Trust shares were reclas-
sified as Class R shares.
</TABLE>
6. FOREIGN SECURITIES
The Fund may purchase securities of foreign issuers. Investing in securi-
ties of foreign companies and foreign governments involves special risks
and considerations not typically associated with investing in U.S. compa-
nies and the U.S. government. These risks include revaluation of curren-
cies and future adverse political and economic developments. Moreover, se-
curities of many foreign companies and foreign governments and their mar-
kets may be less liquid and their prices more volatile than those of
securities of comparable U.S. companies and the U.S. government.
<PAGE>
THE DREYFUS INTERNATIONAL
EQUITY ALLOCATION FUND
Small box above fund name
showing a lions face.
<PAGE>
DEAR SHAREHOLDER,
We are pleased to provide you with the Dreyfus International Equity Allocation
Fund's Semi-Annual Report for the six months ended April 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on your Fund's investment management strategy
and detailed financial statements for the past six months.
As you know, the Fund has been integrated into The Dreyfus Family of Funds. We
hope that you found the transition from The Laurel Funds to The Dreyfus Family
of Funds to be a smooth one. The extended family of funds now offers you more
investment alternatives in addition to expanded services and privileges to
better serve your investment needs.
We would like to extend our appreciation for your support of The Dreyfus
Family of Funds and hope that the Fund will continue to satisfy your
investment needs. As always, we welcome your thoughts and suggestions.
Sincerely,
Marie E. Connolly
President
The Dreyfus/Laurel Funds, Inc. --
Dreyfus International Equity Allocation Fund
June 20, 1995
1
.................................................................................
<PAGE>
TABLE of CONTENTS
.................................................................................
<TABLE>
<S> <C>
Shareholder Letter........................................ 1
Economic Review........................................... 3
Portfolio Overview........................................ 3
Portfolio of Investments.................................. 5
Statement of Assets and Liabilities....................... 12
Statement of Operations................................... 13
Statement of Changes in Net Assets........................ 14
Financial Highlights...................................... 15
Notes to Financial Statements............................. 17
</TABLE>
2
.................................................................................
<PAGE>
ECONOMIC REVIEW
.................................................................................
MARKET OUTLOOK
The global bond market rally is continuing; fueling, in turn, an equity rally
in most equity markets.
The Bank of Japan has lowered its rates to a historically low level in an
attempt to bolster the slow Japanese recovery and to limit the yen's rise. The
earnings reporting period is about to commence in Japan, with many brokerages
(and indeed the market itself) expecting some disappointments. However, based
on evidence to date, surprises either way are not expected by the Fund's
management, contrary to market consensus.
Significant improvements are evident in the Italian and French equity markets,
due in large measure to increased political stability in those countries. In
the case of the French market, there remains some uncertainty regarding
forthcoming policies of the new government. However, the Italian government
has taken definitive steps towards stabilizing the country's debt load and
limiting the liabilities of its pension system.
PORTFOLIO OVERVIEW
.................................................................................
For the six months ended April 30, 1995, the International Equity Allocation
Fund's Class R shares had a total return of -0.18%* and the Investor shares
had a total return of -0.22%.* This compares with a total return of 1.24% for
the Fund's benchmark, the Morgan Stanley Capital International -- Europe
Australia Far East Index.
Altogether, the portfolio was diversified across 20 countries and 237 stocks
as of the end of the semi-annual period. The stock issues are chosen using
proprietary selection models that examine relative valuation of markets. The
models target issues indicating fair valuation relative to peers and
above-average growth potential. In addition, the models also examine the
associated risk of each individual market.
The preferred markets at the moment continue to be Germany and Japan. Steps
have recently been initiated by the Fund to increase the overweighting of
Japan, at the marginal expense of Germany, which also remains overweighted.
Stocks in Germany have been refocused towards domestic issues in order to
reflect the shifting emphasis of the economic recovery out of exporting.
The Fund currently holds overweight positions in Australia, Finland, Germany,
Ireland, Italy, Japan, Malaysia and Norway. The underweighted countries are
Austria, France, the Netherlands, New Zealand, Singapore, Sweden, Switzerland
and the United Kingdom. The Fund's management currently expects to continue to
maintain these positions until the models dictate otherwise.
- ---------
* TOTAL RETURN REPRESENTS THE CHANGE DURING THE PERIOD IN A HYPOTHETICAL ACCOUNT
WITH DIVIDENDS REINVESTED.
3
.................................................................................
<PAGE>
PORTFOLIO OVERVIEW (continued)
.................................................................................
Although the portfolio currently holds no emerging market stocks, it will
gradually gain exposure (up to 20%) in these markets, depending upon growth
and diversification opportunities in each market.
At present, the Fund is hedged about 20% in U.S. dollars, which means that the
performance of the Fund relative to its benchmark may benefit from possible
rallies in the dollar.
Looking ahead to the remainder of 1995, the Fund's management believes that
Europe will continue to sustain its economic growth and that the Japanese
market will recover.
4
.................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited)
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
APRIL 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
COMMON STOCKS -- 101.5%
<C> <S> <C>
JAPAN -- 46.9%
2,000 Advantest $ 64,766
9,000 Ajinomoto Company 108,221
10,000 Aoki Corporation 54,170
26,000 Ashai Breweries 321,924
70,000 Ashai Chemical Industry 543,366
8,000 Bank of Tokyo 144,771
4,000 CSK 110,959
4,000 Dai-Ichi Kango Bank 81,910
4,000 Fuji Bank Ltd. 96,196
7,000 Fuji Photo Film Ltd. 171,677
17,000 Fujita 97,149
13,000 Furukawa Electric 79,707
12,000 Haseko Corporation 69,861
3,000 House Food Industrial Company 60,718
2,000 Industrial Bank of Japan 61,194
5,000 Kansai Electric Power 136,913
13,000 Komatsu Ltd. 103,387
8,000 Konami Company 158,105
45,000 Konica Corporation 373,951
22,000 Kubota Corporation 159,248
74,000 Marubeni Corporation 407,905
3,000 Marui Company 46,074
33,000 Mitsubishi Heavy Industries 239,657
27,000 Mitsubishi Material Corporation 135,008
17,000 New Oji Paper Company 190,249
15,000 Nichido Fire 124,650
38,000 Nippon Fire & Marine 248,824
10,000 Nomura Securities Company 202,393
26,000 Orient Corporation 142,389
8,000 Penta Ocean Construction 61,908
7,000 Sakura Bank 93,339
6,000 Sekisui House 79,290
4,000 Shimachu Company 116,674
5,000 Shimizu Corporation 53,694
6,000 Shin-Etsu Chemicals Company 116,436
8,000 Sumitomo Bank Ltd. 173,344
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 5
.................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited) (continued)
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
APRIL 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
COMMON STOCKS (continued)
<C> <S> <C>
JAPAN (CONTINUED)
6,000 Sumitomo Marine & Fire $ 50,503
3,000 Taisho Pharmaceutical Company 56,075
11,000 Toa Corporation 90,493
6,000 Tokai Bank 77,147
7,000 Tokio Marine & Fire Insurance Company 83,338
1,000 Tokyo Electric Power Company 32,026
11,000 Tokyo Tatemono Company 61,682
11,000 Tokyu Corporation 77,659
12,000 Toppan Printing 174,296
21,000 Toray Industries Inc. 146,759
38,000 Toshiba Corporation 252,896
7,000 Toto 116,674
5,000 Toyo Engineering Corporation 33,573
20,000 Toyo Kanetsu 111,673
16,000 Toyota Motor Company 325,734
15,400 Yamato Transport 176,561
42,000 Yasuda Trust and Banking Company Ltd. 340,020
------------
7,637,136
------------
GERMANY -- 14.1%
650 Agiv AG 207,265
100 Allianz Worldwide AG 183,169
1,800 BASF AG 399,957
50 Bilfinger & Berger Bau AG 23,302
100 Brau und Brunnen 8,822
100 Continental AG 14,861
7 Ckag Colonia AG 4,949
200 Dyckerhoff AG 93,785
100 Heidelberg Zement AG 79,356
1,800 Hoechst AG 383,855
900 Industrie-Werlke Karl Augsburg 194,784
600 Linde AG 344,299
30 Munchener Ruckversicherungs 59,842
27 Roche Holdings AG 162,368
50 Sap AG 51,582
</TABLE>
6 SEE NOTES TO FINANCIAL STATEMENTS.
.................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited) (continued)
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
APRIL 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
COMMON STOCKS (continued)
<C> <S> <C>
GERMANY (CONTINUED)
100 Schering AG $ 74,198
------------
2,286,394
------------
GREAT BRITAIN -- 10.4%
25,000 Allied Irish Banks 117,058
14,000 Barclays Bank 144,171
18,134 British Petroleum Company 131,303
21,000 British Telecommunications 131,781
20,460 Grand Metropolitan 131,685
33,434 Hanson Trust PLC 127,499
10,000 Kleinwort Benson Group 103,623
22,000 Marks & Spencer 149,030
12,000 Meyer International 65,070
3,000 Reed International 38,714
20,140 Smithkline Beecham Group, Series A 158,953
30,000 St. James Place Capital 55,030
30,000 Trafalger House 27,515
40,000 TSB Group 160,905
16,000 Williams Holdings 84,443
12,184 Wolseley 67,832
------------
1,694,612
------------
FRANCE -- 5.7%
100 Accor 11,469
1,100 Alcatel Alsthom Cie Generale d'Electricite 102,003
1,000 Banque Nationale de Paris 48,602
203 Cie Bancaire SA 22,416
600 Compagnie de Saint Gobain 77,600
1,300 Compagnie Financiere de Suez 79,309
400 Credit Foncier de France 54,093
3,000 C.S.F. 79,309
50 L'Oreal Group 13,157
800 Pechiney International 47,341
900 Peugeot SA 129,761
50 Pinault-Printemps Redoute 11,307
3,000 Rhone-Poulenc SA 73,086
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 7
.................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited) (continued)
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
APRIL 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
COMMON STOCKS (continued)
<C> <S> <C>
FRANCE (CONTINUED)
1,800 Societe National Elf Aquitaine $ 143,744
100 Saint Louis -- Bouchon 31,866
------------
925,063
------------
NETHERLANDS -- 3.7%
20,000 Elsevier NV 219,058
3,000 IHC Caland NV 81,953
1,000 Internationale Nederlanden Groep NV 52,703
1,000 Oce-Van Der Grinten NV 49,610
3,000 Philips Electronics NV 114,426
3,000 Stad Rotterdam CVA 77,121
------------
594,871
------------
SWITZERLAND -- 3.5%
200 Brown Boveri & Cie AG, Series A 197,572
100 Ciba -- Geigy AG 68,303
200 CS Holdings 83,675
200 Grand Magasin Jelmoli 105,686
90 Nestle SA 87,964
50 Sandoz Group AG 32,972
------------
576,172
------------
AUSTRALIA -- 2.7%
9,000 Ampolex Limited 25,988
9,000 Amcor Limited 66,247
2,735 Broken Hill Properties 39,866
15,000 Coca Cola Amatil 91,646
11,000 ICI Australia 80,809
30,912 Pacific Dunlop Ltd. 75,995
17,000 Westpac Banking Corporation 62,567
------------
443,118
------------
MALAYSIA -- 2.6%
7,000 Malayan Banking Berhad 47,866
35,000 Perusahaan Otomobil Nasional 118,956
23,000 Resorts World Berhad 120,979
</TABLE>
8 SEE NOTES TO FINANCIAL STATEMENTS.
.................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited) (continued)
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
APRIL 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
COMMON STOCKS (continued)
<C> <S> <C>
MALAYSIA (CONTINUED)
45,000 Tanjong $ 128,363
------------
416,164
------------
HONG KONG -- 2.5%
37,000 Cheung Kong (Holdings) 155,820
57,600 Hong Kong & China Gas 83,710
100,000 Shangri-La Asia 107,867
90,000 South China Morning Post Holdings 53,481
------------
400,878
------------
ITALY -- 2.0%
5,000 Aedes SpA 32,709
20,000 Fiat SpA 81,356
30,000 Italgas 78,858
17,000 Mediobanca SpA 127,892
------------
320,815
------------
SWEDEN -- 1.3%
2,000 Asea AB, Series B 167,879
4,000 Esselte AB, Series B 52,119
------------
219,998
------------
SPAIN -- 1.3%
3,000 Empresa Nacional De Electric 141,836
6,000 Telefonica Nacional d'Espana 73,355
------------
215,191
------------
BELGIUM -- 1.1%
600 Petrofina SA NPV 187,171
------------
DENMARK -- 1.0%
4,000 Danisco 159,515
------------
SINGAPORE -- 0.7%
14,000 Keppel Corporation 113,527
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 9
.................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited) (continued)
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
APRIL 30, 1995
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
COMMON STOCKS (continued)
<C> <S> <C>
NORWAY -- 0.7%
8,500 Aker AS $ 112,505
------------
FINLAND -- 0.6%
400 Lone Corporation, Series B 49,712
4,000 Pohjola Insurance Co., Series B 53,935
------------
103,647
------------
NEW ZEALAND -- 0.4%
23,000 Fisher & Paykel 65,703
------------
AUSTRIA -- 0.3%
300 Oesterreichische Landerbank 45,841
------------
TOTAL COMMON STOCKS (Cost $15,815,156) 16,518,321
------------
<CAPTION>
PRINCIPAL
AMOUNT
<C> <S> <C>
COMMERCIAL PAPER -- 1.0%
(Cost $159,000)
$159,000 General Electric Capital Corporation
5.900% due 5/1/95 159,000
------------
TOTAL INVESTMENTS
(Cost $15,974,156*) 102.5% 16,677,321
OTHER ASSETS AND LIABILITIES (NET) (2.5) (407,373)
------ ----------
NET ASSETS 100.0% $ 16,269,948
------ -----------
------ -----------
------------------------------------------------------------------------------------
<FN>
* AGGREGATE COST FOR FEDERAL TAX PURPOSES.
</TABLE>
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
CONTRACT VALUE
VALUE DATE (NOTE 1)
<S> <C> <C>
Forward Foreign Exchange Contracts
to Buy
112,000 French Franc 5/2/95 $ 22,776
1,901,900 German Deutsche Mark 8/22/95 1,379,372
123,240,000 Japanese Yen 8/22/95 1,490,382
-----------
(Contract Amount $2,623,022) $ 2,892,530
-----------
-----------
Forward Foreign Exchange Contracts
to Sell
3,803,800 German Deutsche Mark 8/22/95 $(2,758,744)
397,480,000 Japanese Yen 8/22/95 (4,806,857)
-----------
(Contract Amount $6,828,655) $(7,565,601)
-----------
-----------
</TABLE>
10 SEE NOTES TO FINANCIAL STATEMENTS.
.................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (unaudited) (continued)
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
AT APRIL 30, 1995, SECTOR DIVERSIFICATION OF THE FUND WAS AS FOLLOWS:
<TABLE>
<CAPTION>
% OF NET VALUE
ASSETS (NOTE 1)
<S> <C> <C>
COMMON STOCKS:
Financial Services 21.3% $ 3,458,943
Basic Industries 19.7 3,209,406
Capital Goods 10.6 1,730,094
Consumer Services 6.1 997,170
Consumer Non-Durables 4.4 722,668
Consumer Durables 4.3 694,080
Technology 4.2 678,623
Energy 4.1 666,148
Manufacturing 3.6 584,967
Utilities 3.5 568,738
Transportation 2.8 449,700
Building and Construction 2.4 389,177
Leisure 2.3 368,678
Healthcare 2.0 325,613
Retail 1.7 277,011
Real Estate 1.5 250,211
Automotive 1.5 248,717
Food and Beverage 1.4 232,132
Oil and Gas 1.3 215,013
Telecommunications 1.0 170,495
Pharmaceuticals 1.0 158,953
Chemicals 0.4 68,303
Broadcasting 0.4 53,481
------ -----------
TOTAL COMMON STOCKS 101.5 16,518,321
COMMERCIAL PAPER 1.0 159,000
------ -----------
TOTAL INVESTMENTS 102.5 16,677,321
OTHER ASSETS AND LIABILITIES
(Net) (2.5) (407,373)
------ -----------
NET ASSETS 100.0% $16,269,948
------ -----------
------ -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 11
.................................................................................
<PAGE>
STATEMENT of ASSETS and LIABILITIES
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS
Investments, at value (Cost
$15,974,156) (Note 1)
See accompanying schedule $16,677,321
Cash and foreign currency (Cost
$51,652) 50,170
Receivable for forward foreign
exchange contracts to sell 6,828,655
Forward foreign exchange contracts
to buy, at value
(Contract cost $2,623,022) (Note
1)
See accompanying schedule 2,892,530
Dividends and interest receivable 67,830
-----------
TOTAL ASSETS 26,516,506
-----------
LIABILITIES
Forward foreign exchange contracts
to sell, at value
(Contract cost $6,828,655) (Note
1)
See accompanying schedule $7,565,601
Payable for forward foreign
exchange contracts to buy 2,623,022
Investment management fee payable
(Note 2) 53,133
Payable for Fund shares redeemed 3,090
Accrued Directors' fees and
expenses (Note 2) 1,687
Distribution fee payable (Note 3) 25
----------
TOTAL LIABILITIES 10,246,558
-----------
NET ASSETS $16,269,948
-----------
-----------
NET ASSETS consist of:
Undistributed net investment income $ 6,284
Accumulated net realized loss on
investments (19,857)
Net unrealized appreciation of
investments, forward foreign
exchange contracts and foreign
currency 237,500
Par value 1,625
Paid-in capital in excess of par
value 16,044,396
-----------
TOTAL NET ASSETS $16,269,948
-----------
-----------
NET ASSET VALUE
INVESTOR SHARES
Net asset value, offering and
redemption price per share
($109,588 DIVIDED BY 10,948
shares of capital stock
outstanding) $10.01
------
------
CLASS R SHARES
Net asset value, offering and
redemption price per share
($16,160,360 DIVIDED BY
1,614,530 shares of capital
stock outstanding) $10.01
------
------
</TABLE>
12 SEE NOTES TO FINANCIAL STATEMENTS.
.................................................................................
<PAGE>
STATEMENT of OPERATIONS
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign
withholding taxes of
$12,044) $ 97,251
Interest 10,520
---------
TOTAL INVESTMENT INCOME 107,771
---------
EXPENSES
Investment management fee
(Note 2) $99,913
Directors' fees and expenses
(Note 2) 1,350
Distribution fee (Note 3) 136
-------
TOTAL EXPENSES 101,399
---------
NET INVESTMENT INCOME 6,372
---------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 4):
Net realized gain/(loss)
on:
Securities transactions (27,660)
Forward foreign exchange
contracts 13,763
Currencies and net other
assets (5,960)
---------
Net realized loss on
investments during the
period (19,857)
Net change in unrealized
appreciation/(depreciation)
of:
Securities 665,386
Forward foreign exchange
contracts (467,438)
Currencies and net other
assets 831
---------
Net unrealized appreciation of
investments during the
period 198,779
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 178,922
---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 185,294
---------
---------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 13
.................................................................................
<PAGE>
STATEMENT of CHANGES in NET ASSETS
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
4/30/95 ENDED
(UNAUDITED) 10/31/94*
<S> <C> <C>
Net investment income $ 6,372 $ 43,960
Net realized loss on investments, forward foreign exchange contracts and
currency transactions during the period (19,857) (16,876)
Net unrealized appreciation on investments, forward foreign exchange
contracts, foreign currency holdings and net other assets during the
period 198,779 38,721
------------- ------------
Net increase in net assets resulting from operations 185,294 65,805
Distributions to shareholders from net investment income:
Investor shares (180) --
Class R shares (26,992) --
Net increase in net assets from Fund share transactions (Note 5):
Investor shares 24,701 69,582
Class R shares 4,172,368 11,779,370
------------- ------------
Net increase in net assets 4,355,191 11,914,757
NET ASSETS:
Beginning of period 11,914,757 --
------------- ------------
End of period (including undistributed net investment income of $6,284 and
$27,084, respectively) $ 16,269,948 $ 11,914,757
------------- ------------
------------- ------------
------------------------------------------------------------------------------------
<FN>
* THE FUND COMMENCED OPERATIONS ON AUGUST 12, 1994.
</TABLE>
14 SEE NOTES TO FINANCIAL STATEMENTS.
.................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED PERIOD
4/30/95 ENDED
(UNAUDITED) 10/31/94*#
<S> <C> <C>
-----------------------------------------------------------------------
Net asset value, beginning of period $10.06 $10.00
--------- -------
Income from investment operations:
Net investment income/(loss) (0.01) 0.01
Net realized and unrealized gain/(loss) on
investments (0.02)+++ 0.05
--------- -------
Total from investment operations (0.03) 0.06
Less distributions:
Distributions from net investment income (0.02) --
--------- -------
Net asset value, end of period $10.01 $10.06
--------- -------
Total return++ (0.22)% 0.60%
--------- -------
--------- -------
Ratios to average net assets/ supplemental data:
Net assets, end of period (in 000's) $ 110 $ 71
Ratio of operating expenses to average net assets 1.75%+ 1.74%+
Ratio of net investment income to average net
assets (0.15)%+ 1.98%+
Portfolio turnover rate 23% 0%
-----------------------------------------------------------------------
<FN>
* THE FUND COMMENCED OPERATIONS ON AUGUST 12, 1994.
+ ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIOD INDICATED.
+++ THE AMOUNT SHOWN IN THIS CAPTION FOR EACH SHARE OUTSTANDING THROUGHOUT THE
PERIOD MAY NOT ACCORD WITH THE CHANGE IN THE AGGREGATE GAINS AND LOSSES IN
THE PORTFOLIO SECURITIES FOR THE PERIOD BECAUSE OF THE TIMING OF PURCHASES
AND WITHDRAWALS OF SHARES IN RELATION TO THE FLUCTUATING MARKET VALUES OF
THE PORTFOLIO.
# PRIOR TO OCTOBER 17, 1994, MELLON BANK, N.A. SERVED AS THE INVESTMENT
MANAGER. EFFECTIVE OCTOBER 17, 1994, THE DREYFUS CORPORATION SERVES AS THE
FUND'S INVESTMENT MANAGER.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 15
.................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
.................................................................................
- --------------------------------------------------------------------------------
DREYFUS INTERNATIONAL EQUITY ALLOCATION FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
4/30/95 ENDED
(UNAUDITED) 10/31/94*#
<S> <C> <C>
---------------------------------------------------------------------------
Net asset value, beginning of period $ 10.06 $ 10.00
----------- ---------
Income from investment operations:
Net investment income 0.00** 0.02
Net realized and unrealized gain/(loss) on
investments (0.03)+++ 0.04
----------- ---------
Total from investment operations (0.03) 0.06
Less distributions:
Distributions from net investment income (0.02) --
----------- ---------
Net asset value, end of period $ 10.01 $ 10.06
----------- ---------
Total return++ (0.18)% 0.60%
----------- ---------
----------- ---------
Ratios to average net assets/ supplemental data:
Net assets, end of period (in 000's) $16,160 $11,844
Ratio of operating expenses to average net assets 1.50%+ 1.50%+
Ratio of net investment income to average net
assets 0.10%+ 2.22%+
Portfolio turnover rate 23% 0%
---------------------------------------------------------------------------
<FN>
* THE FUND COMMENCED OPERATIONS ON AUGUST 12, 1994. EFFECTIVE OCTOBER 17, 1994,
THE FUND'S TRUST SHARES WERE REDESIGNATED AS CLASS R SHARES.
** AMOUNT REPRESENTS LESS THAN $0.01.
+ ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIOD INDICATED.
+++ THE AMOUNT SHOWN IN THIS CAPTION FOR EACH SHARE OUTSTANDING THROUGHOUT THE
PERIOD MAY NOT ACCORD WITH THE CHANGE IN THE AGGREGATE GAINS AND LOSSES IN
THE PORTFOLIO SECURITIES FOR THE PERIOD BECAUSE OF THE TIMING OF PURCHASES
AND WITHDRAWALS OF SHARES IN RELATION TO THE FLUCTUATING MARKET VALUES OF
THE PORTFOLIO.
# PRIOR TO OCTOBER 17, 1994, MELLON BANK, N.A. SERVED AS THE INVESTMENT
MANAGER. EFFECTIVE OCTOBER 17, 1994, THE DREYFUS CORPORATION SERVES AS THE
FUND'S INVESTMENT MANAGER.
</TABLE>
16 SEE NOTES TO FINANCIAL STATEMENTS.
.................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited)
.................................................................................
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Funds, Inc. (the "Investment Company"), The Dreyfus/Laurel
Funds Trust, The Dreyfus/Laurel Tax-Free Municipal Funds and The
Dreyfus/Laurel Investment Series are all registered open-end management
investment companies that are now part of The Dreyfus Family of Funds. The
Investment Company is a series mutual fund with 19 separate investment
portfolios. This report contains financial statements for the Dreyfus
International Equity Allocation Fund (the "Fund"). The Investment Company was
incorporated on August 6, 1987 as a Maryland corporation and is registered
with the Securities and Exchange Commission under the Investment Company Act
of 1940, as amended (the "1940 Act"), as a diversified, open-end management
investment company. The Fund is currently authorized to issue two classes of
shares: Investor shares and Class R shares. Investor shares are sold primarily
to retail investors through the Fund's distributor and financial
intermediaries and bear a distribution fee. Class R shares are sold primarily
to bank trust departments and other financial service providers (including
Mellon Bank and its affiliates) acting on behalf of customers having a
qualified trust or investment account or relationship at such institution and
bear no distribution fee. Each class of shares has identical rights and
privileges except with respect to the distribution fee and voting rights on
matters affecting a single class. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements in accordance with generally accepted accounting
principles.
(A) PORTFOLIO VALUATION
Investments in securities traded on a stock exchange are valued at the last
reported sales price or, in the absence of a recorded sale, at the last
current bid quotation. Over-the-counter securities are valued on the basis of
the last sale price. When market quotations are not readily available,
securities are valued at fair value as determined in good faith by the Board
of Directors. Debt securities with maturities of 60 days or less from the
valuation day are valued on the basis of amortized cost. Foreign securities
are generally valued at the proceeding closing values of such securities on
their respective exchanges, except that when an occurrence subsequent to the
time a value was so established is likely to have changed such value, then the
fair value of those securities will be determined by consideration of other
factors by or under the direction of the Board of Directors or its delegates.
(B) FORWARD FOREIGN CURRENCY TRANSACTIONS
The Fund may engage in forward foreign currency contracts. Forward foreign
currency contracts are valued at the forward rate and are marked-to-market
daily. The change in market value is recorded by the Fund as an unrealized
gain or loss. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time it
was opened and the value at the time it was closed.
17
.................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
.................................................................................
The use of forward foreign currency contracts does not eliminate fluctuations
in the underlying prices of the Fund's investment securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain that
might result should the value of the currency increase. In addition, the Fund
could be exposed to risks if the counterparties to the contracts are unable to
meet the terms of their contracts.
(C) FOREIGN CURRENCY
The books and records of the Fund are maintained in United States (U.S.)
dollars. Foreign currencies, investments and other assets and liabilities are
translated into U.S. dollars at the exchange rates prevailing at the end of
the period, and purchases and sales of investment securities, income and
expenses are translated on the respective dates of such transactions.
Unrealized gains and losses which result from changes in foreign currency
exchange rates have been included in the unrealized
appreciation/(depreciation) of investments and net other assets. Net realized
foreign currency gains and losses resulting from changes in exchange rates
include foreign currency gains and losses between trade date and settlement
date on investment securities transactions, foreign currency transactions and
the difference between the amounts of interest and dividends recorded on the
books of the Fund and the amount actually received. The portion of foreign
currency gains and losses related to fluctuation in exchange rates between the
initial purchase trade date and subsequent sale trade date is included in
realized gains and losses on investment securities sold.
(D) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Dividend income is
recorded on the ex-dividend date except in the case of certain dividends from
foreign securities which are recorded as soon as the Fund is informed of the
ex-dividend date. Interest income is recorded on the accrual basis. Realized
gains and losses from securities sold are recorded on the identified cost
basis. Investment income and realized and unrealized gains and losses are
allocated based upon relative average daily net assets of each class of
shares.
(E) EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any class
of shares are prorated between the classes based upon the relative average
daily net assets of each class. Distribution expense is directly attributable
to a particular class of shares and is charged only to that class's
operations.
(F) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income, if any, are determined on a class level
and are declared and paid annually. The Fund distributes any net realized
capital gains on a Fund level annually. Distributions to shareholders are
recorded on the ex-dividend date. Additional distributions of net investment
income and capital gains for the Fund may be
18
.................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
.................................................................................
made at the discretion of the Board of Directors in order to avoid the 4.00%
nondeductible federal excise tax. Income distributions and capital gain
distributions on a Fund level are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments of income and
gains on various investment securities held by the Fund, timing differences
and differing characterization of distributions made by the Fund as a whole.
(G) FEDERAL INCOME TAXES
It is the Fund's intention to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code applicable to
regulated investment companies and by distributing substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax provision
is required.
2. INVESTMENT MANAGEMENT FEE, DIRECTORS' FEES
AND OTHER PARTY TRANSACTIONS
The Investment Company has an investment management agreement with The Dreyfus
Corporation (the "Manager"), a wholly-owned subsidiary of Mellon Bank, N.A.
("Mellon Bank"). The Manager provides, or arranges for one or more third
parties to provide investment advisory, administrative, custody, fund
accounting and transfer agency services to the Investment Company. 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 1.50% of the value of the Fund's average daily
net assets. Out of its fee, the Manager pays all of the expenses of the Fund
except brokerage fees, taxes, interest, Rule 12b-1 distribution fees and
expenses, fees and expenses of non-interested Directors (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 Directors (including counsel).
S.A.M. Finance, S.A. (the "Sub-Advisor"), a wholly-owned subsidiary of Credit
Commercial de France, serves as the Fund's Sub-Advisor pursuant to a
sub-advisory agreement among the Fund, the Sub-Advisor and the Manager. For
its services, the Sub-Advisor is paid an annual fee of 0.25% of the value of
the Fund's average daily net assets and is paid by the Manager out of its fee.
Premier Mutual Fund Services, Inc. ("Premier") serves as the Investment
Company's distributor. Premier also serves as the Investment Company's
sub-administrator and, pursuant to a sub-administration agreement with the
Manager, provides various administrative and corporate secretarial services to
the Investment Company.
No officer or employee of Premier (or of any parent, subsidiary or affiliate
thereof) receives any compensation from the Investment Company, The
Dreyfus/Laurel Funds
19
.................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
.................................................................................
Trust, The Dreyfus/Laurel Tax-Free Municipal Funds or The Dreyfus/Laurel
Investment Series (collectively, "The Dreyfus/Laurel Funds") for serving as an
officer, Director or Trustee of The Dreyfus/Laurel Funds. In addition, no
officer or employee of the Manager (or of any parent, subsidiary or affiliate
thereof) serves as an officer, Director or Trustee of The Dreyfus/Laurel
Funds. The Dreyfus/Laurel Funds pay each Director or Trustee who is not an
officer or employee of Premier (or any parent, subsidiary or affiliate
thereof) or of the Manager, $27,000 per annum, $1,000 for each Board meeting
attended and $750 for each Audit Committee meeting attended, and reimburses
each Director or Trustee for travel and out-of-pocket expenses.
3. DISTRIBUTION PLAN
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1
under the 1940 Act relating to its Investor shares. Under the Plan, the Fund
may pay annually up to 0.25% of the value of the average daily net assets
attributable to its Investor shares to compensate Premier and Dreyfus Service
Corporation, an affiliate of the Manager, for shareholder servicing activities
and Premier for activities primarily intended to result in the sale of
Investor shares. Class R Shares bear no distribution fee.
Under its terms, the Plan shall remain in effect from year to year, provided
such continuance is approved annually by a vote of a majority of those
Directors who are not "interested persons" of the Investment Company and who
have no direct or indirect financial interest in the operation of the Plan or
in any agreement related to the Plan.
4. SECURITIES TRANSACTIONS
Purchases and proceeds from sales of securities, excluding short-term
investments and U.S. government securities, for the six months ended April 30,
1995 aggregated $7,051,929 and $3,072,789, respectively.
At April 30, 1995, aggregate gross unrealized appreciation for all securities
in which there was an excess of value over tax cost amounted to $1,102,329 and
aggregate gross unrealized depreciation for all securities in which there was
an excess of tax cost over value amounted to $399,164 for the Fund.
5. SHARES OF CAPITAL STOCK
The Investment Company has authority to issue 25 billion of capital stock with
a par value of $.001. The Fund has authority to issue two classes of shares.
The table below summarizes transactions in Fund shares for the periods
indicated:
20
.................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (unaudited) (continued)
.................................................................................
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1995 OCTOBER 31, 1994*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------
INVESTOR SHARES:
Sold 191,371 $ 1,813,988 7,045 $ 69,682
Issued as reinvestment of
dividends and distributions 7 70 -- --
Redeemed (187,465) (1,789,357) (10) (100)
--------- ------------ ---------- ------------
Net increase 3,913 $ 24,701 7,035 $ 69,582
--------- ------------ ---------- ------------
--------- ------------ ---------- ------------
----------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1995 OCTOBER 31, 1994*
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------
CLASS R SHARES:
Sold 443,005 $ 4,231,473 1,181,714 $ 11,819,150
Issued as reinvestment of
dividends and distributions 1,314 12,651 -- --
Redeemed (7,501) (71,756) (4,002) (39,780)
--------- ------------ ---------- ------------
Net increase 436,818 $ 4,172,368 1,177,712 $ 11,779,370
--------- ------------ ---------- ------------
--------- ------------ ---------- ------------
----------------------------------------------------------------------------------
<FN>
* THE FUND COMMENCED OPERATIONS ON AUGUST 12, 1994. EFFECTIVE AS OF OCTOBER 17,
1994, THE FUND'S TRUST SHARES WERE REDESIGNATED AS CLASS R SHARES.
</TABLE>
6. FOREIGN SECURITIES
The Fund purchases securities of foreign issuers. Investing in securities of
foreign companies and foreign governments involves special risks and
considerations not typically associated with investing in U.S. companies and
the U.S. government. These risks include revaluation of currencies and future
adverse political and economic developments. Moreover, securities of many
foreign companies and foreign governments and their markets may be less liquid
and their prices more volatile than those of securities of comparable U.S.
companies and the U.S. government.
21
.................................................................................
DEAR SHAREHOLDER,
We are pleased to provide you with the Dreyfus/Laurel Institutional Prime
Money Market, Institutional U.S. Treasury Money Market, Institutional U.S.
Treasury Only Money Market, Institutional Government Money Market and In-
stitutional Short-Term Bond Funds' Semi-Annual Report for the six months
ended April 30, 1995.
In the pages that follow, we have provided you with a description of the
market environment, a commentary on each Fund's investment management
strategy and detailed financial statements for the past six months.
As you know, the Funds have been integrated into The Dreyfus Family of
Funds. We hope that you found the transition from The Laurel Funds to The
Dreyfus Family of Funds to be a smooth one. The extended family of funds
now offers you more investment alternatives in addition to expanded ser-
vices and privileges to better serve your investment needs.
We would like to extend our appreciation for your support of The Dreyfus
Family of Funds and hope that the Funds will continue to satisfy your in-
vestment needs. As always, we welcome your thoughts and suggestions.
Sincerely,
Marie E. Connolly
President
The Dreyfus/Laurel Funds, Inc. --
Dreyfus/Laurel Institutional Prime Money Market Fund
Dreyfus/Laurel Institutional Government Money Market Fund
Dreyfus/Laurel Institutional U.S. Treasury Money Market Fund
Dreyfus/Laurel Institutional U.S. Treasury Only Money Market Fund
Dreyfus/Laurel Institutional Short-Term Bond Fund
June 20, 1995
TABLE OF CONTENTS
Shareholder Letter 1
Economic Review 3
Portfolio Overview 4
Portfolio of Investments 6
Statement of Assets and Liabilities 18
Statement of Operations 22
Statement of Changes in Net Assets 24
Financial Highlights 28
Notes to Financial Statements 40
ECONOMIC REVIEW
GROWTH SLOWS BUT STRENGTH REMAINS
Over the past six months, the U.S. economy appeared to come in for the
"soft landing" desired by the Federal Reserve Board and so many econo-
mists. Home sales and housing activity slipped almost 20% from their 1994
peaks, while demand for housing-related and other big-ticket consumer
items like cars and trucks was, in total, off 2%. The Mexican economic
downturn also cut into exports; total shipments dipped 6% from their De-
cember peak.
The Federal Reserve Board deserves at least partial credit for the slow-
down. Higher interest rates seem to have helped cool spending and to have
kept inflation in check. In fact, it was the economy's exuberance early on
that motivated the Fed to continue its anti-inflation policy by raising
short-term rates twice during the period, in November 1994 and again in
February 1995. By March, the economy appeared to be decelerating, allowing
the Fed to take no action at its mid-month meeting.
We expect that the dynamics of this demand slowdown will continue to de-
velop over the next several months as producers adapt their output to new
sales realities. Still, we believe the slowdown is temporary. Job and in-
come growth remain strong, and a rebound in consumer spending is probable.
In addition, businesses have initiated many new capital spending projects
that will stretch into next year or longer. Recent interest-rate declines
may boost housing activity. Many of our trading partners are in the capi-
tal spending phases of their economic expansions, which will support U.S.
capital goods exports. Finally, the bulk of the Mexican recession's de-
pressing effects on U.S. growth may be over by summer's end.
INFLATION MAY INCH UP
With a stabilizing economy and a vigilant Fed, we remain confident that
inflation will only inch higher in the coming months. Slowing in the in-
dustrial sector has already begun to alleviate commodity and intermediate
price pressures. Wage settlements remain modest, and benefits growth is
flattening. Nonetheless, inflation is rising a bit, and we expect a fur-
ther mild escalation once the economy picks up again.
MONEY MARKET RETURNS IMPROVE
Higher interest rates have been a boon for money market investors, who
have seen strong returns over the semi-annual period. At this point, many
securities issuers are tabling their financing needs as they await the
next interest rate move by the Federal Reserve Board. The effect of this
"wait and see" attitude has been a decline in the supply of money market
securities. At the same time, many investors have begun to scrutinize the
quality of their portfolios and of new securities offerings more closely
than ever before. This level of credit quality scrutiny is not new to the
Dreyfus money market funds, which focus on traditional money market in-
struments of the highest caliber. The market's new caution may translate
into stricter disclosure and credit quality requirements for issuers in
the months ahead.
BOND INVESTORS RECOUP
What a difference a new year can make. For much of 1994, fixed-income mar-
kets were turned upside down by the Federal Reserve Board's tighter U.S.
monetary policy and investor fears of inflation -- all brought about by
rapid economic growth. Then in the first quarter of 1995, a reprieve as
fixed-income markets began to rally. Several changes contributed to this
welcome turn of events. First, investors finally gained confidence in the
Fed's anti-inflation policy just as some economic weakness began to
emerge. Meanwhile the Mexican economic crisis appeared to moderate some-
what, and many international central banks stepped in to take advantage of
the weak dollar by buying Treasury securities. This had the effect of sup-
porting the dollar, which set off a rally in Treasuries that spread
throughout the fixed-income market. The outcome was a rally that enabled
many bond investors to totally recoup losses sustained during 1994.
CAUTIOUSLY OPTIMISTIC
Given the underlying strength in the economy, we believe that the present
slowdown is merely the "pause that refreshes." The economy's deceleration
has doused inflation fears for now, making the decline in the dollar so
far benign. Nonetheless, the dollar's skid has the potential to become
troublesome if it stimulates the economy in a way that makes global inves-
tors wary of buying U.S. securities while the dollar is falling. For now,
we must wait and watch for trends in the U.S. economy and in international
markets as well.
PORTFOLIO OVERVIEW
* The Dreyfus/Laurel Institutional Prime Money Market Fund invests in
high-grade money market securities issued by banks, the federal govern-
ment, and corporations. It also invests in repurchase agreements.
* The Dreyfus/Laurel Institutional Government Money Market Fund invests in
a mixture of U.S. Treasuries, U.S. Government agency securities, and re-
purchase agreements.
* The Dreyfus/Laurel Institutional U.S. Treasury Money Market Fund invests
exclusively in direct obligations of the U.S. Treasury and repurchase
agreements secured by such obligations.
* The Dreyfus/Laurel Institutional U.S. Treasury Only Money Market Fund
invests exclusively in U.S. Treasury securities.
During the recent semi-annual period, all of the above money market funds
once again delivered competitive current income while maintaining high
credit quality and stability of principal. The period was marked by a
strong, though moderating economy, rising short- term interest rates and
low inflation. In this favorable and relatively stable environment, we ex-
tended the average maturity of the portfolios slightly to between 35 and
45 days. This move positioned the Funds in a flexible, neutral stance, al-
lowing them to benefit
from additional interest-rate increases while protecting them from any de-
clines that might occur as the market adjusts to economic change. At the
same time, we maintained our focus on traditional, top quality money mar-
ket instruments, steering clear of the complex derivative investments that
caused some other money market funds so many difficulties last year.
The Institutional Short-Term Bond Fund seeks to provide higher income than
a money market fund for those investors willing to accept greater share
price volatility in exchange for the potential of higher rewards. The mar-
ket environment of low inflation, stable economic growth and slowing ris-
ing short-term interest rates proved favorable for this Fund which deliv-
ered competitive income along with relative share price stability. The
portfolio continued to hold a large position in high quality corporate se-
curities, which outperformed government securities during the period and
helped boost the Fund's income stream. We also extended the portfolio ma-
turity slightly to just under one year in order to help the Fund benefit
from additional interest rate increases while protecting it from any de-
clines that might occur. As a result of this strategy, the Fund posted a
total return of 2.95%* for the six months ended April 30, 1995.
Going forward, we intend to maintain the same flexible stance in all these
funds and to continue our emphasis on traditional, high quality invest-
ments. With the economy stabilizing and inflation low, we do not antici-
pate any interest-rate changes over the near term, although we will con-
tinue to monitor the economy and Federal Reserve Board policy closely.
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DREYFUS/LAUREL INSTITUTIONAL PRIME MONEY MARKET FUND APRIL 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
<S> <C> <C> <C> <C>
DOMESTIC COMMERCIAL PAPER -- 54.5%
FOOD & BEVERAGES -- 14.7%
$ 7,175,000 Brown Forman Inc. 6.050% 05/19/95 $ 7,153,296
10,350,000 Brown Forman Inc. 6.080 05/15/95 10,325,528
5,250,000 Brown Forman Inc. 6.100 05/12/95 5,240,215
20,000,000 Cargill Inc. 5.950 05/30/95 19,904,139
15,000,000 Cargill Inc. 6.090 06/19/95 14,875,663
34,900,000 Hershey Foods Corporation 6.025 05/22/95 34,777,341
16,800,000 Nestle Capital Corporation 5.990 08/16/95 16,500,899
29,200,000 Sunkist Growers Inc. 5.980 05/12/95 29,146,645
137,923,726
FINANCIAL SERVICES -- 11.3%
27,000,000 Avco Financial Services Corporation 6.010 05/02/95 26,995,493
15,000,000 Ciesco LP 5.980 07/20/95 14,800,667
25,000,000 Ciesco LP 6.000 07/20/95 24,666,667
20,000,000 Corporate Asset Funding Company 5.980 07/28/95 19,707,645
20,000,000 Corporate Asset Funding Company 6.060 07/17/95 19,740,767
105,911,239
DRUGS & COSMETICS -- 6.6%
6,000,000 Allergan Inc. 6.000 07/18/95 5,922,000
25,000,000 Schering Corporation 6.020 09/19/95 24,410,542
11,600,000 Schering Corporation 6.100 05/16/95 11,570,517
20,000,000 SmithKline Beecham Corporation 5.970 05/08/95 19,976,783
61,879,842
ELECTRICAL EQUIPMENT -- 6.2%
25,000,000 Emerson Electric Company 6.000 05/09/95 24,966,667
32,972,000 Motorola Inc. 5.970 06/20/95 32,698,607
57,665,274
RETAIL -- 5.8%
25,000,000 Procter & Gamble Company 6.000 06/09/95 24,837,500
30,000,000 Winn Dixie Inc. 5.980 05/22/95 29,895,350
54,732,850
MEDICAL & MEDICAL EQUIPMENT -- 3.6%
34,000,000 Abbott Laboratories 5.950 05/04/95 33,983,142
CONGLOMERATE -- 2.7%
25,000,000 Minnesota Mining & Manufacturing Company 6.000 05/22/95 24,912,500
OIL & GAS -- 2.5%
17,000,000 Colonial Pipeline Company 6.000 05/16/95 16,957,500
7,000,000 Southern California Gas Company 6.210 08/16/95 6,870,797
23,828,297
BROADCASTING & PUBLISHING -- 1.1%
10,500,000 McGraw-Hill Inc. 6.080 07/05/95 10,384,733
TOTAL DOMESTIC COMMERCIAL PAPER (Cost
$511,221,603) 511,221,603
FOREIGN COMMERCIAL PAPER -- 25.6%
GOVERNMENT SPONSORED -- 5.8%
20,000,000 Kingdom of Sweden 6.020 09/18/95 19,531,778
20,000,000 Kingdom of Sweden 6.050 05/09/95 19,973,111
15,000,000 Province of Alberta 6.290 08/14/95 14,724,813
54,229,702
CONGLOMERATE -- 4.2%
25,000,000 Hanson Finance PLC 6.100 06/06/95 24,847,500
15,000,000 Sandoz Corporation 6.020 05/22/95 14,947,325
39,794,825
FOOD & BEVERAGES -- 3.7%
10,200,000 Bass Finance Limited 6.120 05/16/95 10,173,000
25,000,000 Cadbury Schwepps 6.020 06/15/95 24,811,875
34,985,865
DRUG & COSMETICS -- 2.7%
25,000,000 Glaxo Holdings PLC 6.000 06/02/95 24,866,667
FINANCIAL SERVICE -- 2.6%
25,000,000 New South Wales Treasury Corporation 6.140 10/02/95 24,343,361
TELECOMMUNICATIONS -- 2.1%
20,000,000 Caissedes Depots et Consignat 6.030 06/28/95 19,805,700
BUILDING MATERIALS -- 1.8%
5,000,000 CSR America Inc. 6.100 06/07/95 4,968,653
12,000,000 CSR America Inc. 6.200 10/02/95 11,681,733
16,650,386
AUTOMOTIVE -- 1.4%
13,000,000 Daimler Benz NA Corporation 6.050 05/08/95 12,984,707
OIL & GAS -- 1.3%
12,000,000 Repsol International Finance Corporation 6.240 07/13/95 11,848,160
TOTAL FOREIGN COMMERCIAL PAPER (Cost
$239,509,373) 239,509,373
U.S. GOVERNMENT AGENCIES -- 4.2%
25,000,000 Federal Home Loan Bank Agency Discount Note 5.920 05/23/95 24,909,555
15,000,000 Federal National Mortgage Association Dis-
count Note 6.450 05/18/95 14,954,312
TOTAL U.S. GOVERNMENT AGENCIES (Cost
$39,863,867) 39,863,867
ANNUALIZED
YIELD AT
DATE OF
PURCHASE
U.S. TREASURY OBLIGATIONS -- 1.1%
(Cost $9,915,188)
10,000,000 U.S. Treasury Bills 5.175 06/29/95 9,915,188
REPURCHASE AGREEMENTS -- 15.1%
90,000,000 Agreement with Donaldson Lufkin Jenrette Securities Corporation
dated 04/28/95 bearing 5.920% to be repurchased at $90,044,400 on
05/01/95 collateralized by: $71,072,000 U.S. Treasury Note, 6.375%
due 08/15/02; $732,000 U.S. Treasury Note, 5.375% due 05/31/98;
$21,656,000 U.S. Treasury Note, 3.875% due 09/30/95 90,000,000
51,697,580 Agreement with Goldman Sachs & Company dated
04/28/95 bearing 5.920% to be repurchased at $51,723,084
on 05/01/95 collateralized by: $49,729,000 U.S. Treasury
Note, 8.000% due 08/15/99 51,697,580
TOTAL REPURCHASE AGREEMENTS
(Cost $141,697,580) 141,697,580
TOTAL INVESTMENTS
(Cost $942,207,611*) 100.5% 942,207,611
OTHER ASSETS AND LIABILITIES (NET) (0.5) (4,842,168)
$937,365,443
NET ASSETS 100.0%
<FN>
* Aggregate cost for Federal tax purposes.
</TABLE>
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DREYFUS/LAUREL INSTITUTIONAL GOVERNMENT MONEY MARKET FUND APRIL 30, 1995
<TABLE>
<CAPTION>
ANNUALIZED
YIELD AT
PRINCIPAL DATE OF MATURITY VALUE
AMOUNT PURCHASE DATE (NOTE 1)
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCIES -- 60.0%
$10,000,000 Federal Farm Credit Bank Discount Note 6.200% 05/01/95 $10,000,000
7,000,000 Federal Farm Credit Bank Discount Note 6.150 06/01/95 6,996,909
25,000,000 Federal Home Loan Bank Discount Note 5.920 05/23/95 24,909,556
20,000,000 Federal Home Loan Bank Discount Note 5.930 05/23/95 19,927,522
10,000,000 Federal Home Loan Bank Discount Note 6.140 09/14/95 9,768,045
6,000,000 Federal Home Loan Bank Discount Note 5.800 09/26/95 5,992,139
15,000,000 Federal Home Loan Bank Discount Note 5.930 10/30/95 14,550,308
15,900,000 Federal National Mortgage Association Dis-
count Note 5.940 05/11/95 15,873,765
15,000,000 Federal National Mortgage Association Dis-
count Note 5.930 05/31/95 14,925,875
15,000,000 Federal National Mortgage Association Dis-
count Note 5.830 06/01/95 14,923,146
20,000,000 Federal National Mortgage Association Dis-
count Note 6.060 06/16/95 19,845,133
15,000,000 Federal National Mortgage Association Dis-
count Note 5.920 07/03/95 14,844,600
21,000,000 Federal National Mortgage Association Dis-
count Note 6.100 08/17/95 20,615,700
5,000,000 Federal National Mortgage Association Dis-
count Note 4.480 10/02/95 4,965,698
20,000,000 Federal National Mortgage Association Dis-
count Note 5.930 10/30/95 19,400,411
20,000,000 Student Loan Marketing Association Discount
Note 5.970 06/08/95 19,999,665
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $237,538,472) 237,538,472
U.S. TREASURY OBLIGATIONS -- 3.8%
10,000,000 U.S. Treasury Bills 5.425 05/04/95 9,995,712
5,000,000 U.S. Treasury Bills 5.180 06/29/95 4,957,553
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $14,953,265) 14,953,265
REPURCHASE AGREEMENTS -- 36.5%
80,000,000 Agreement with Donaldson Lufkin Jenrette dated 04/28/95 bearing
5.920% to be repurchased at $80,039,467 on
05/01/95 collateralized by: $54,985,000 U.S. Treasury Note, 6.750%
due 05/31/97; $9,135,000 U.S. Treasury Note, 7.875% due 07/31/96;
$15,576,000 U.S. Treasury Note, 3.875% due 09/30/95 80,000,000
64,474,961 Agreement with Goldman Sachs & Company dated 04/28/95 bearing 5.920%
to be repurchased at $64,506,769 on
05/01/95 collateralized by: $5,605,000 U.S. Treasury Note, 8.500%
due 05/15/97; $58,349,000 U.S. Treasury Note, 8.000% due 10/15/96 64,474,961
TOTAL REPURCHASE AGREEMENTS
(Cost $144,474,961) 144,474,961
TOTAL INVESTMENTS
(Cost $396,966,698*) 100.3% 396,966,698
OTHER ASSETS AND LIABILITIES (NET) (0.3) (1,093,428)
$395,873,270
NET ASSETS 100.0%
<FN>
* Aggregate cost for Federal tax purposes.
</TABLE>
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DREYFUS/LAUREL INSTITUTIONAL U.S. TREASURY MONEY MARKET FUNDAPRIL 30, 1995
<TABLE>
<CAPTION>
ANNUALIZED
YIELD AT
PRINCIPAL DATE OF MATURITY VALUE
AMOUNT PURCHASE DATE (NOTE 1)
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 62.9%
$ 20,000,000 U.S. Treasury Bills 5.436% 05/04/95 $ 19,991,408
25,000,000 U.S. Treasury Bills 5.800 05/04/95 24,987,917
25,000,000 U.S. Treasury Bills 5.850 05/11/95 24,959,375
10,000,000 U.S. Treasury Bills 5.780 05/18/95 9,972,706
25,000,000 U.S. Treasury Bills 5.880 05/18/95 24,930,583
25,000,000 U.S. Treasury Bills 5.820 05/25/95 24,903,000
25,000,000 U.S. Treasury Bills 5.890 05/25/95 24,901,833
25,000,000 U.S. Treasury Bills 5.950 06/01/95 24,871,910
25,000,000 U.S. Treasury Bills 5.980 06/08/95 24,842,194
20,000,000 U.S. Treasury Bills 5.960 06/15/95 19,851,000
25,000,000 U.S. Treasury Bills 5.755 06/22/95 24,792,181
30,000,000 U.S. Treasury Bills 5.810 07/06/95 29,680,450
25,000,000 U.S. Treasury Bills 5.800 07/13/95 24,705,972
25,000,000 U.S. Treasury Bills 5.888 07/20/95 24,682,778
25,000,000 U.S. Treasury Bills 5.978 07/27/95 24,651,094
25,000,000 U.S. Treasury Bills 5.725 10/05/95 24,375,816
25,000,000 U.S. Treasury Bills 6.181 01/11/96 23,958,750
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $401,058,967) 401,058,967
REPURCHASE AGREEMENTS -- 37.6%
110,000,000 Agreement with Donaldson Lufken & Jenrette 04/28/95
bearing 5.920% to be repurchased at $110,054,267 on 05/01/95 collateralized by:
$25,326,000 U.S. Treasury Note, 5.375% due 05/31/98; $83,943,000 U.S. Treasury
Note, 7.500% due 12/31/96 110,000,000
130,064,801 Agreement with Goldman Sachs & Company dated 04/28/95 bearing 5.920% to be re-
purchased at $130,128,966 on 05/01/95 collateralized by: $36,590,000 U.S. Trea-
sury Note, 8.000% due 05/15/01; $52,414,000 U.S. Treasury Note, 8.500% due
11/15/00; $16,266,000 U.S. Treasury Note, 8.000% due 10/15/96; $10,863,000 U.S.
Treasury Note, 3.875% due 04/30/95; $6,366,000 U.S. Treasury Bond, 7.625% due
02/15/25 130,064,801
TOTAL REPURCHASE AGREEMENTS
(Cost $240,064,801) 240,064,801
TOTAL INVESTMENTS
(Cost $641,123,768*) 100.5% 641,123,768
OTHER ASSETS AND LIABILITIES (NET) (0.5) (3,236,230)
NET ASSETS 100.0% $637,887,538
<FN>
* Aggregate cost for Federal tax purposes.
</TABLE>
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DREYFUS/LAUREL INSTITUTIONAL U.S. TREASURY ONLY MONEY MARKET FUND
APRIL 30, 1995
<TABLE>
<CAPTION>
ANNUALIZED
YIELD AT
PRINCIPAL DATE OF MATURITY VALUE
AMOUNT PURCHASE DATE (NOTE 1)
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 100.5%
$2,000,000 U.S. Treasury Bills 5.110% 05/04/95 $ 1,999,148
7,607,000 U.S. Treasury Bills 5.620 05/04/95 7,603,437
160,000 U.S. Treasury Bills 5.930 05/04/95 159,921
790,000 U.S. Treasury Bills 5.650 05/18/95 787,892
350,000 U.S. Treasury Bills 5.670 05/18/95 349,063
1,863,000 U.S. Treasury Bills 5.730 05/18/95 1,857,959
1,428,000 U.S. Treasury Bills 5.770 05/18/95 1,424,109
8,147,000 U.S. Treasury Bills 5.582 06/01/95 8,108,625
798,000 U.S. Treasury Bills 5.670 06/08/95 793,224
8,331,000 U.S. Treasury Bills 5.590 06/15/95 8,272,787
4,685,000 U.S. Treasury Bills 5.750 06/22/95 4,646,089
338,000 U.S. Treasury Bills 5.150 06/29/95 335,147
503,000 U.S. Treasury Bills 5.655 06/29/95 498,338
65,000 U.S. Treasury Bills 5.710 06/29/95 64,392
670,000 U.S. Treasury Bills 5.760 06/29/95 663,675
805,000 U.S. Treasury Bills 6.255 06/29/95 796,748
53,000 U.S. Treasury Bills 5.540 07/06/95 52,462
562,000 U.S. Treasury Bills 5.280 07/27/95 554,829
17,000 U.S. Treasury Bills 5.650 07/27/95 16,768
570,000 U.S. Treasury Bills 6.200 07/27/95 561,460
5,210,000 U.S. Treasury Bills 6.120 08/03/95 5,126,744
3,703,000 U.S. Treasury Bills 5.765 09/07/95 3,626,504
2,000,000 U.S. Treasury Bills 5.840 12/14/95 1,926,351
150,000 U.S. Treasury Bills 5.910 01/11/96 143,721
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $50,369,393) 50,369,393
TOTAL INVESTMENTS
(Cost $50,369,393*) 100.5% 50,369,393
OTHER ASSETS AND LIABILITIES (NET) (0.5) (226,593)
NET ASSETS 100.0% $50,142,800
<FN>
* Aggregate cost for Federal tax purposes.
</TABLE>
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS (UNAUDITED)
DREYFUS/LAUREL INSTITUTIONAL SHORT-TERM BOND FUND APRIL 30, 1995
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
CORPORATE BONDS AND NOTES -- 58.9%
<S> <C> <C> <C> <C>
FINANCIAL SERVICES -- 18.7%
$ 75,000 C.I.T. Group Holdings, Inc. 5.500% 11/01/95 $ 74,719
100,000 Ford Motor Credit Corporation 8.250 02/15/96 101,500
100,000 Household Financial Corporation 9.375 02/15/96 101,875
50,000 International Lease Finance Corporation 6.625 06/01/96 49,938
100,000 U.S. West Capital Funding Corporation 8.000 10/15/96 101,500
429,532
BANKING -- 17.4%
100,000 First Union Corporation 8.125 12/15/96 101,500
110,000 NationsBank Corporation 5.375 12/01/95 109,450
90,000 Republic National Bank of
New York 4.750 10/15/95 89,437
100,000 World Bank 8.125 12/15/95 101,000
401,387
AEROSPACE -- 5.7%
130,000 Martin Marietta Corporation 8.500 03/01/96 131,625
MACHINERY -- 4.4%
100,000 Ingersoll Rand Company 8.250 11/01/96 101,875
OIL & GAS -- 4.3%
100,000 Shell Oil Company 6.000 01/15/97 98,625
FARM EQUIPMENT -- 4.2%
100,000 John Deere Corporation 4.625 09/02/96 97,250
RETAIL -- 4.2%
100,000 Wal-Mart Stores Inc. 5.500 03/01/98 96,125
TOTAL CORPORATE BONDS
AND NOTES
(Cost $1,360,060) 1,356,419
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 17.3%
200,000 Federal Farm Credit Bank Discount Note 5.860 05/10/95 199,674
200,000 Federal Home Loan Bank Discount Note 5.375 11/27/95 198,986
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $398,715) 398,660
U.S. TREASURY OBLIGATIONS -- 11.2%
(Cost $255,823)
250,000 U.S. Treasury Notes 7.875 01/15/98 257,120
COMMERCIAL PAPER -- 4.3% (Cost $98,650)
100,000 Anheuser Busch Companies 6.000 07/21/95 98,586
REPURCHASE AGREEMENT -- 4.1%
(Cost $94,076)
94,076 Agreement with Goldman Sachs & Company dated 04/28/95 bearing 5.920% to be re-
purchased at $94,122 on 05/01/95 collateralized by $92,000 U.S. Treasury Bond,
7.625% due 02/15/25 94,076
TOTAL INVESTMENTS
(Cost $2,207,324*) 95.8% 2,204,861
OTHER ASSETS AND LIABILITIES (NET) 4.2 95,572
NET ASSETS 100.0% $2,300,433
<FN>
* Aggregate cost for Federal tax purposes.
</TABLE>
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
STATEMENT OF ASSETS AND LIABILITIES
DREYFUS/LAUREL FUNDS, INC. APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
DREYFUS/LAUREL
DREYFUS/LAUREL INSTITUTIONAL
INSTITUTIONAL GOVERNMENT
PRIME MONEY MONEY MARKET
MARKET FUND FUND
<S> <C> <C>
ASSETS
Investments, at value ( Cost $942,207,611,
$396,966,698, $641,123,768, $50,369,393 and
$2,207,324, respectively) (Note 1) See accompany-
ing schedules
Securities $ 800,510,031 $ 252,491,737
Repurchase agreements 141,697,580 144,474,961
Total Investments 942,207,611 396,966,698
Cash -- --
Interest receivable 74,733 927,143
Receivable from investment adviser 110,253 41,400
Receivable for Fund shares sold 172,379 9,377
TOTAL ASSETS 942,564,976 397,944,618
LIABILITIES
Dividends payable 4,730,236 1,856,474
Payable for Fund shares redeemed 1,094 --
Investment management fee payable (Note 2) 212,657 86,412
Shareholder service fee payable (Note 3) 110,715 48,296
Accrued Directors' fees and expenses (Note 2) 144,831 80,166
TOTAL LIABILITIES 5,199,533 2,071,348
NET ASSETS $ 937,365,443 $ 395,873,270
NET ASSETS consist of:
Distributions in excess of net investment income --$ --$
Accumulated net realized gain/ (loss) on investments
sold 2,472 --
Unrealized depreciation of investments -- --
Par value 937,363 395,873
Paid-in capital in excess of par value 936,425,608 395,477,397
TOTAL NET ASSETS $ 937,365,443 $ 395,873,270
</TABLE>
See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
<TABLE>
<CAPTION>
DREYFUS/LAUREL DREYFUS/LAUREL
INSTITUTIONAL INSTITUTIONAL DREYFUS/LAUREL
U.S. TREASURY U.S. TREASURY INSTITUTIONAL
MONEY MARKET ONLY MONEY SHORT-TERM
FUND MARKET FUND BOND FUND
<S> <C> <C>
$ 401,058,967 $ 50,369,393 $ 2,110,785
240,064,801 -- 94,076
641,123,768 50,369,393 2,204,861
-- 102 --
118,433 -- 36,134
46,298 35,320 63,176
-- -- --
641,288,499 50,404,815 2,304,171
3,077,773 239,229 562
-- -- --
141,670 11,136 950
81,502 1,151 406
100,016 10,499 1,820
3,400,961 262,015 3,738
$ 637,887,538 $ 50,142,800 $ 2,300,433
$ -- $ (1,827) $ --
-- 1,134 (168,516)
-- -- (2,463)
637,888 50,143 232
637,249,650 50,093,350 2,471,180
$ 637,887,538 $ 50,142,800 $ 2,300,433
</TABLE>
See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DREYFUS/LAUREL FUNDS, INC. APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
DREYFUS/LAUREL
DREYFUS/LAUREL INSTITUTIONAL
INSTITUTIONAL GOVERNMENT
PRIME MONEY MONEY MARKET
MARKET FUND FUND
<S> <C> <C>
NET ASSETS:
Class I shares $ 833,377,617 $ 395,873,270
Class II shares $ 103,987,826 $ --
Class III shares $ -- $ --
SHARES OUTSTANDING:
Class I shares 833,375,516 395,873,270
Class II shares 103,987,455 --
Class III shares -- --
CLASS I SHARES
Net asset value, offering and redemption price per
share $ 1.00 $ 1.00
CLASS II SHARES
Net asset value, offering and redemption price per
share $ 1.00 $ --
CLASS III SHARES
Net asset value, offering and redemption price per
share $ -- $ --
</TABLE>
See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
<TABLE>
<CAPTION>
DREYFUS/LAUREL DREYFUS/LAUREL
INSTITUTIONAL INSTITUTIONAL DREYFUS/LAUREL
U.S. TREASURY U.S. TREASURY INSTITUTIONAL
MONEY MARKET ONLY MONEY SHORT-TERM
FUND MARKET FUND BOND FUND
<S> <C> <C>
$ 637,887,538 $ 101,721 $ 2,300,433
$ -- $ 26,541,078 $ --
$ -- $ 23,500,001 $ --
637,887,538 101,720 232,266
-- 26,541,212 --
-- 23,500,000 --
$ 1.00 $ 1.00 $ 9.90
$ -- $ 1.00 $ --
$ -- $ 1.00 $ --
</TABLE>
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
DREYFUS/LAUREL FUNDS, INC.
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
DREYFUS/LAUREL
DREYFUS/LAUREL INSTITUTIONAL
INSTITUTIONAL GOVERNMENT
PRIME MONEY MONEY MARKET
MARKET FUND FUND
<S> <C> <C>
INVESTMENT INCOME
Interest $ 26,561,303 $ 12,899,626
EXPENSES
Investment management fee (Note 2) 585,134 290,689
Shareholder service fee
(Note 3) 613,949 335,411
Directors' fees and expenses (Note 2) 90,021 44,721
TOTAL EXPENSES 1,289,104 670,821
NET INVESTMENT INCOME 25,272,199 12,228,805
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 4):
Net realized gain/(loss) on investments sold during
the period 2,472 --
Net unrealized appreciation of investments during
the period -- --
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 2,472 --
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 25,274,671 $ 12,228,805
</TABLE>
See Notes to Financial Statements.
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
DREYFUS/LAUREL DREYFUS/LAUREL
INSTITUTIONAL INSTITUTIONAL DREYFUS/LAUREL
U.S. TREASURY U.S. TREASURY INSTITUTIONAL
MONEY MARKET ONLY MONEY SHORT-TERM
FUND MARKET FUND BOND FUND
<S> <C> <C>
$ 17,251,382 $ 1,369,167 $ 104,686
399,037 33,109 3,268
460,427 6,429 2,723
61,390 5,094 363
920,854 44,632 6,354
16,330,528 1,324,535 98,332
-- 1,134 (9,873)
-- -- 14,749
-- 1,134 4,876
$ 16,330,528 $ 1,325,669 $ 103,208
</TABLE>
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS
DREYFUS/LAUREL FUNDS, INC.
FOR THE SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
DREYFUS/LAUREL
DREYFUS/LAUREL INSTITUTIONAL
INSTITUTIONAL GOVERNMENT
PRIME MONEY MONEY MARKET
MARKET FUND FUND
<S> <C> <C>
Net investment income $ 25,272,199 $ 12,228,805
Net realized gain/(loss) on investments sold during
the period 2,472 --
Net unrealized appreciation of investments during
the period -- --
Net increase in net assets resulting from operations 25,274,671 12,228,805
Distributions to shareholders from net investment
income:
Class I shares (21,767,775) (12,228,805)
Class II shares (3,504,424) --
Class III shares -- --
Net increase/(decrease) in net assets from Fund
share transactions (Note 5):
Class I shares 151,594,984 (74,133,600)
Class II shares 103,987,455 --
Class III shares -- --
Net increase/(decrease) in net assets 255,584,911 (74,133,600)
NET ASSETS:
Beginning of period 681,780,532 470,006,870
End of period (including distributions in excess of
net investment income of $1,827 at April 30, 1995
for the Dreyfus/Laurel Institutional U.S. Treasury
Only Money Market Fund) $ 937,365,443 $ 395,873,270
</TABLE>
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
DREYFUS/LAUREL DREYFUS/LAUREL
INSTITUTIONAL INSTITUTIONAL DREYFUS/LAUREL
U.S. TREASURY U.S. TREASURY INSTITUTIONAL
MONEY MARKET ONLY MONEY SHORT-TERM
FUND MARKET FUND BOND FUND
$ 16,330,528 $ 1,324,535 $ 98,332
<S> <C> <C>
-- 1,134 (9,873)
-- -- 14,749
16,330,528 1,325,669 103,208
(16,330,528) (5,061) (98,332)
-- (652,811) --
-- (666,663) --
51,109,253 101,720 (2,803,897)
-- (3,760,188) --
-- (7,200,000) --
51,109,253 (10,857,334) (2,799,021)
586,778,285 61,000,134 5,099,454
$ 637,887,538 $ 50,142,800 $ 2,300,433
</TABLE>
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
DREYFUS/LAUREL FUNDS, INC.
FOR THE YEAR OR PERIOD ENDED OCTOBER 31, 1994
<TABLE>
<CAPTION>
DREYFUS/LAUREL
DREYFUS/LAUREL INSTITUTIONAL
INSTITUTIONAL GOVERNMENT
PRIME MONEY MONEY MARKET
MARKET FUND FUND
<S> <C> <C>
Net investment income $ 28,636,890 $ 16,679,194
Net realized loss on investments sold during the pe-
riod -- --
Net unrealized depreciation of investments during
the period -- --
Net increase in net assets resulting from operations 28,636,890 16,679,194
Distributions to shareholders from net investment
income:
Class I shares (28,636,890) (16,679,194)
Class II shares -- --
Class III shares -- --
Net increase/(decrease) in net assets from Fund
share transactions (Note 5):
Class I shares (142,299,818) 63,317,245
Class II shares -- --
Class III shares -- --
Net increase/(decrease) in net assets (142,299,818) 63,317,245
NET ASSETS:
Beginning of period 824,080,350 406,689,625
End of period (including distributions in excess of
net investment income of $1,827 at October 31,
1994 for the Dreyfus/Laurel Institutional U.S.
Treasury Only Money Market Fund) $ 681,780,532 $ 470,006,870
<FN>
* Dreyfus/Laurel Institutional Short-Term Bond Fund commenced operations
on November 5, 1993.
</TABLE>
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
DREYFUS/LAUREL DREYFUS/LAUREL
INSTITUTIONAL INSTITUTIONAL DREYFUS/LAUREL
U.S. TREASURY U.S. TREASURY INSTITUTIONAL
MONEY MARKET ONLY MONEY SHORT-TERM
FUND MARKET FUND BOND FUND*
<S> <C> <C>
$ 17,666,894 $ 2,309,923 $ 586,659
-- -- (158,643)
-- -- (17,212)
17,666,894 2,309,923 410,804
(17,666,894) -- (586,659)
-- (1,777,705) --
-- (533,484) --
86,124,993 -- 5,275,309
-- (34,620,667) --
-- 30,700,000 --
86,124,993 (3,921,933) 5,099,454
500,653,292 64,922,067 --
$ 586,778,285 $ 61,000,134 $ 5,099,454
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL INSTITUTIONAL PRIME MONEY MARKET FUND
FOR A CLASS I SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX
MONTHS YEAR
ENDED ENDED
4/30/95 10/31/94+++
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period $ 1.0000 $ 1.0000
Income from investment operations:
Net investment income 0.0276 0.0349
Less distributions:
Distributions from net investment income (0.0276) (0.0349)
Net asset value, end of period $ 1.0000 $ 1.0000
Total return+ 2.79% 3.67%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $833,378 $681,781
Ratio of operating expenses to average net assets 0.30%++ 0.29%
Ratio of net investment income to average net assets 5.57%++ 3.58%
<FN>
* The Fund commenced operations on April 15, 1988.
+ Total return represents aggregate total return for the periods indi-
cated.
++ Annualized.
+++ Prior to October 17, 1994, Mellon Bank, N.A. served as the Fund's in-
vestment manager. Effective October 17, 1994, The Dreyfus Corporation
serves as the Fund's investment manager.
# For the years and period ended October 31, 1993, 1992, 1991, 1990, 1989
and 1988 the investment adviser reimbursed expenses of $0.00005,
$0.0001, $0.0007, $0.0022, $0.0044 and $0.0018 per share, respectively.
For the period ended October 31, 1988, the investment adviser waived a
portion of its advisory fee amounting to $0.0006 per share.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/93 10/31/92 10/31/91 10/31/90 10/31/89 10/31/88*
<S> <C> <C> <C> <C> <C>
$ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
0.0300# 0.0401# 0.0641# 0.0810# 0.0897# 0.0405#
(0.0300) (0.0401) (0.0641) (0.0810) (0.0897) (0.0405)
$ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
3.04% 4.09% 6.60% 8.41% 9.35% 4.12%
$824,080 $950,322 $943,636 $360,534 $ 97,366 $181,525
0.27% 0.29% 0.30% 0.28% 0.30% 0.30%++
2.99% 4.04% 6.22% 8.07% 8.74% 7.82%++
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL INSTITUTIONAL PRIME MONEY MARKET FUND
FOR A CLASS II SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
4/30/95*
(UNAUDITED)
<S> <C>
Net asset value, beginning of period $ 1.0000
Income from investment operations:
Net investment income 0.0279
Less distributions:
Distributions from net investment income (0.0279)
Net asset value, end of period $ 1.0000
Total return+ 2.81%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $103,988
Ratio of operating expenses to average net assets 0.20%++
Ratio of net investment income to average net assets 5.67%++
<FN>
* The Fund commenced selling Class II shares on November 3, 1994.
+ Total return represents aggregate total return for the period indi-
cated.
++ Annualized.
</TABLE>
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
FOR A CLASS I SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX
MONTHS YEAR YEAR
ENDED ENDED ENDED
4/30/95 10/31/94+++ 10/31/93
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.0000 $ 1.0000 $ 1.0000
Income from investment operations:
Net investment income 0.0272 0.0356 0.0293#
Less distributions:
Distributions from net investment income (0.0272) (0.0356) (0.0293)
Net asset value, end of period $ 1.0000 $ 1.0000 $ 1.0000
Total return+ 2.76% 3.63% 2.97%
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's) $395,873 $470,007 $406,690
Ratio of operating expenses to average net assets 0.30%++ 0.30% 0.30%
Ratio of net investment income to average net assets 5.47%++ 3.60% 2.93%
<FN>
* The Fund commenced operations on October 8, 1987.
+ Total return represents aggregate total return for the periods indi-
cated.
++ Annualized.
+++ Prior to October 17, 1994, Mellon Bank, N.A. served as the Fund's in-
vestment manager. Effective October 17, 1994, The Dreyfus Corporation
serves as the Fund's investment manager.
# For the years and period ended October 31, 1993, 1992, 1991, 1990,
1989, 1988 and 1987 the investment adviser reimbursed expenses of
$0.0001, $0.0004, $0.0014, $0.0035, $0.0037, $0.0016 and $0.0001 per
share, respectively. For the period ended October 31, 1987, the invest-
ment adviser waived its advisory fee amounting to $0.0001 per share.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/92 10/31/91 10/31/90 10/31/89 10/31/88 10/31/87*
<S> <C> <C> <C> <C> <C>
$ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
0.0385# 0.0619# 0.0796# 0.0874# 0.0692# 0.0043#
(0.0385) (0.0619) (0.0796) (0.0874) (0.0692) (0.0043)
$ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
3.92% 6.36% 8.26% 9.10% 7.15% 0.43%
$391,364 $308,136 $ 84,283 $ 66,077 $147,430 $490,875
0.30% 0.30% 0.30% 0.30% 0.30% 0.30%++
3.82% 6.00% 8.03% 8.63% 6.70% 6.53%++
<FN>
See Notes to Financial Statements.
</TABLE>
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
FOR A CLASS I SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX
MONTHS YEAR
ENDED ENDED
4/30/95 10/31/94+++
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period $ 1.0000 $ 1.0000
Income from investment operations:
Net investment income 0.0263 0.0351**
Less distributions:
Distributions from net investment income (0.0263) (0.0351)
Net asset value, end of period $ 1.0000 $ 1.0000
Total return+ 2.66% 3.55%
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's) $637,888 $586,778
Ratio of operating expenses to average net assets 0.30%++ 0.30%***
Ratio of net investment income to average net assets 5.32%++ 3.55%
<FN>
* The Fund commenced operations December 22, 1988.
** Net investment income before reimbursement of expenses by the invest-
ment manager for the year ended October 31, 1994 was $0.0350 per
share.
*** Annualized expense ratio before reimbursement of expenses by the in-
vestment manager for the year ended October 31, 1994 was 0.31%.
+ Total return represents aggregate total return for the periods indi-
cated.
++ Annualized.
+++ Prior to October 17, 1994, Mellon Bank, N.A. served as the Fund's in-
vestment manager. Effective October 17, 1994, The Dreyfus Corporation
serves as the Fund's investment manager.
# For the years and period ended October 31, 1993, 1992, 1991, 1990 and
1989 the investment adviser reimbursed expenses of $0.00004, $0.0003,
$0.0008, $0.0023 and $0.0028 per share, respectively. For the period
ended October 31, 1989, the investment adviser waived a portion of its
advisory fee amounting to $0.0005 per share.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
10/31/93 10/31/92 10/31/91 10/31/90 10/31/89*
<S> <C> <C> <C> <C>
$ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
0.0287# 0.0381# 0.0620# 0.0793# 0.0761#
(0.0287) (0.0381) (0.0620) (0.0793) (0.0761)
$ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
2.91% 3.88% 6.39% 8.23% 7.88%
$500,653 $666,378 $452,333 $270,664 $ 80,135
0.30% 0.30% 0.30% 0.30% 0.30%++
2.87% 3.81% 6.04% 8.08% 8.83%++
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL INSTITUTIONAL U.S. TREASURY ONLY MONEY MARKET FUND
FOR A CLASS I SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
4/30/95*+++
(UNAUDITED)
<S> <C>
Net asset value, beginning of period $ 1.0000
Income from investment operations:
Net investment income 0.0216
Less distributions:
Distributions from net investment income (0.0216)
Net asset value, end of period $ 1.0000
Total return+ 2.16%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 102
Ratio of operating expenses to average net assets 0.30%++
Ratio of net investment income to average net assets 5.08%++
<FN>
* The Fund commenced selling Class I shares on November 30, 1994.
+ Total return represents aggregate total return for the period indi-
cated.
++ Annualized.
+++ Per share amounts have been calculated using the daily average shares
method, which more appropriately presents the per share data for the
period since the use of the undistributed net investment income method
does not accord with the results of operations.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL INSTITUTIONAL U.S. TREASURY ONLY MONEY MARKET FUND
FOR A CLASS II SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX
MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
4/30/95## 10/31/94+++ 10/31/93 10/31/92*
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
Income from investment operations:
Net investment income 0.0257 0.0348** 0.0287# 0.0251#
Less distributions:
Distributions from net investment income (0.0257) (0.0348) (0.0287) (0.0251)
Net asset value, end of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
Total return+ 2.59% 3.53% 2.90% 2.54%
Ratios to average net assets/
supplemental data:
Net assets, end of period
(in 000's) $ 26,541 $ 30,301 $ 64,922 $ 43,782
Ratio of operating expenses to average net
assets 0.20%++ 0.19%*** 0.20% 0.20%++
Ratio of net investment income to average
net assets 5.18%++ 3.47% 2.86% 3.22%++
<FN>
* The Fund commenced operations on January 22, 1992.
** Net investment income before reimbursement of expenses by investment
manager for the year ended October 31, 1994 was $0.0331 per share.
*** Operating expense ratio before reimbursement of expenses by investment
manager for the year ended October 31, 1994 was 0.35%.
+ Total return represents aggregate total return for the periods indi-
cated.
++ Annualized.
+++ Prior to October 17, 1994, Mellon Bank, N.A. served as the Fund's in-
vestment manager. Effective October 17, 1994, The Dreyfus Corporation
serves as the Fund's investment manager.
# For the year ended October 31, 1993 and the period ended October 31,
1992 the investment adviser reimbursed a portion of the expenses
amounting to $0.0031 and $0.0060 per share, respectively.
## Per share amounts have been calculated using the daily average shares
method, which more appropriately presents the per share data for the
period since the use of the undistributed net investment income method
does not accord with the results of operations.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL INSTITUTIONAL U.S. TREASURY ONLY MONEY MARKET FUND
FOR A CLASS III SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX
MONTHS PERIOD
ENDED ENDED
4/30/95** 10/31/94*+++
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period $ 1.0000 $ 1.0000
Income from investment operations:
Net investment income 0.0260 0.0193
Less distributions:
Distributions from net investment income (0.0260) (0.0193)
Net asset value, end of period $ 1.0000 $ 1.0000
Total return+ 2.64% 1.97%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $ 23,500 $ 30,700
Ratio of operating expenses to average net assets 0.15%++ 0.17%++
Ratio of net investment income to average net assets 5.23%++ 3.50%++
<FN>
* The Fund commenced selling Class III shares on May 12, 1994.
** Per share amounts have been calculated using the daily average shares
method, which more appropriately presents the per share data for the
period since the use of the undistributed net investment income method
does not accord with the results of operations.
+ Total return represents aggregate total return for the period indi-
cated.
++ Annualized.
+++ Prior to October 17, 1994, Mellon Bank, N.A. served as the Fund's in-
vestment manager. Effective October 17, 1994, The Dreyfus Corporation
serves as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL INSTITUTIONAL SHORT-TERM BOND FUND
FOR A CLASS I SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX
MONTHS PERIOD
ENDED ENDED
4/30/95 10/31/94*+++
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period $ 9.88 $10.00
Income from investment operations:
Net investment income 0.28 0.40+
Net realized and unrealized gain/(loss) on invest-
ments 0.01 (0.12)
Total from investment operations 0.29 0.28
Less distributions:
Distributions from net investment income (0.27) (0.40)
Net asset value, end of period $ 9.90 $ 9.88
Total return++ 2.95% 2.82%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $2,300 $5,099
Ratio of operating expenses to average net assets 0.35%** 0.21%**#
Ratio of net investment income to average net assets 5.42%** 4.07%**
Portfolio turnover rate 74% 216%
<FN>
* The Fund commenced operations on November 5, 1993.
** Annualized.
+ Net investment income per share before reimbursement of expenses by
the investment manager for the period ended October 31, 1994 was $0.34
per share.
++ Total return represents aggregate total return for the period indi-
cated.
+++ Prior to October 17, 1994, Mellon Bank, N.A. served as the Fund's in-
vestment manager. Effective October 17, 1994, The Dreyfus Corporation
serves as the Fund's investment manager.
# Annualized expense ratio before reimbursement of expenses by the in-
vestment manager was 0.80% for the period ended April 30, 1994.
</TABLE>
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Funds, Inc. (the "Investment Company"), The Dreyfu-
s/Laurel Funds Trust, The Dreyfus/Laurel Tax-Free Municipal Funds and The
Dreyfus/Laurel Investment Series are all registered open-end investment
companies that are now part of The Dreyfus Family of Funds. The Investment
Company is a series mutual fund which consists of 19 separate investment
portfolios. These financial statements report on five funds: the Dreyfu-
s/Laurel Institutional Prime Money Market Fund, the Dreyfus/Laurel Insti-
tutional Government Money Market Fund, the Dreyfus/Laurel Institutional
U.S. Treasury Money Market Fund, the Dreyfus/Laurel Institutional U.S.
Treasury Only Money Market Fund and the Dreyfus/Laurel Institutional
Short-Term Bond Fund (the "Funds"). The Investment Company was incorpo-
rated on August 6, 1987 as a Maryland corporation and is registered with
the Securities and Exchange Commission under the Investment Company Act of
1940, as amended (the "1940 Act"), as a diversified, open-end management
investment company. Each Fund is authorized to offer three classes of
shares: Class I, Class II and Class III shares. Class I and Class II
shares are subject to a shareholder servicing plan. Each class of shares
has identical rights and privileges, except with respect to the effective
shareholder servicing fees borne by each class and voting rights on mat-
ters affecting a single class. The following is a summary of significant
accounting policies consistently followed by the Funds in the preparation
of their financial statements in accordance with generally accepted ac-
counting principles.
(A) PORTFOLIO VALUATION
With respect to the Dreyfus/Laurel Institutional Short-Term Bond Fund, in-
vestments in securities traded on a national securities exchange are val-
ued at the last reported sales price or, in the absence of a recorded
sale, at the mean of the latest bid and asked prices. Over-the-counter se-
curities are valued at the mean of the latest bid and asked prices. When
market quotations are not readily available, securities are valued at fair
value as determined in good faith by the Board of Directors. Bonds are
valued through valuations obtained from a commercial pricing service or at
the most recent mean of the bid and asked prices provided by investment
dealers in accordance with procedures established by the Board of Direc-
tors. Investments in U.S. government securities (other than short-term se-
curities) are valued at the most recent quoted bid price in the over- the-
counter market.
Debt securities with maturities of 60 days or less from the valuation day
are valued on the basis of amortized cost. Amortized cost valuation in-
volves valuing an instrument at its cost initially and thereafter assuming
a constant amortization to maturity of any discount or premium, regardless
of the effect of fluctuating interest rates on the market value of the in-
strument.
(B) REPURCHASE AGREEMENTS
Each Fund other than the Dreyfus/Laurel Institutional U.S. Treasury Only
Money Market Fund may engage in repurchase agreement transactions. Under
the terms of a typical repurchase agreement, a Fund, through its custo-
dian, takes possession of an underlying debt obligation, subject to an ob-
ligation of the seller to repurchase, and the Fund to resell the obliga-
tion at an agreed-upon price and time, thereby determining the yield dur-
ing the Fund's holding period. This arrangement results in a fixed rate of
return that is not subject to market fluctuations during the Fund's hold-
ing period. The value of the collateral is at least equal, at all times,
to the total amount of the repurchase obligations, including interest. In
the event of counterparty default, the Fund has the right to use the col-
lateral to offset losses incurred. There is potential loss to a Fund in
the event the Fund is delayed or prevented from exercising its rights to
dispose of the collateral securities including the risk of a possible de-
cline in the value of the underlying securities during the period while
the Fund seeks to assert its rights. Each Fund's investment manager, act-
ing under the supervision of the Board of Directors, reviews the value of
the collateral and the creditworthiness of those banks and dealers with
which the Fund enters into repurchase agreements to evaluate potential
risks.
(C) SECURITY TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Interest income
is recorded on the accrual basis. Realized gains and losses from securi-
ties transactions are recorded on the identified cost basis. Investment
income and realized and unrealized gains and losses are allocated based
upon relative daily net assets of each class of shares.
(D) EXPENSE ALLOCATION
Expenses of the Funds not directly attributable to the operations of any
class of shares of the Fund are pro rated between its classes based upon
the relative average daily net assets of each class. Shareholder servicing
expense directly attributable to a particular class of shares is charged
only to that class's operations.
(E) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income, if any, of a Fund are determined on
a class level and are declared daily and paid monthly. Distributions from
net realized capital gains, if any, are determined on a Fund level and are
declared and paid annually. Additional distributions of net investment in-
come and capital gains for the Funds may be made at the discretion of the
Board of Directors in order to avoid the 4% nondeductible Federal excise
tax. Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally ac-
cepted accounting principles. These differences are primarily due to dif-
fering treatments of income and gains on various investment securities
held by the Funds, timing differences and differing characterization of
distributions made by the Funds as a whole.
(F) FEDERAL INCOME TAXES
Each Fund intends to qualify as a regulated investment company by comply-
ing with the requirements of the Internal Revenue Code applicable to regu-
lated investment companies and by distributing substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax pro-
vision is required.
2. INVESTMENT MANAGEMENT FEE, DIRECTORS' FEES AND OTHER PARTY TRANSACTIONS
The Investment Company has entered into an investment management agreement
with the Dreyfus Corporation (the "Manager"), a wholly-owned subsidiary of
Mellon Bank, N.A. ("Mellon Bank"). The Manager provides, or arranges for
one or more third parties to provide, investment advisory, administrative,
custody, fund accounting and transfer agency services to the Investment
Company. The Manager also directs the investment of the Fund in accordance
with its investment objectives, policies and limitations. For these ser-
vices, the Dreyfus/Laurel Institutional Prime Money Market Fund, the Dreyfus/
Laurel Institutional Government Money Market Fund, the Dreyfus/Laurel In-
stitutional U.S. Treasury Money Market Fund, the Dreyfus/Laurel Institu-
tional U.S. Treasury Only Money Market Fund and the Dreyfus/Laurel
Institutional Short-Term Bond Fund each pay a fee to the manager, calcu-
lated daily and paid monthly, at an annual rate of 0.15%, 0.15%, 0.15%,
0.15%, and 0.20% of the value of the Fund's average daily net assets, re-
spectively. Out of its fee, the Manager pays all of the expenses of each
Fund except brokerage, taxes, interest, shareholder servicing fees and ex-
penses, fees and expenses of non- interested directors (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 directors (including counsel).
Premier Mutual Fund Services, Inc. ("Premier") serves as the Investment
Company's distributor. Premier also serves as the Investment Company's
sub-administrator and, pursuant to a sub-administration agreement with the
Manager, provides various administrative and corporate secretarial ser-
vices to the Investment Company.
No officer or employee of Premier (or of any parent, subsidiary or affili-
ate thereof) receives any compensation from the Investment Company, The
Dreyfus/Laurel Funds Trust, The Dreyfus/Laurel Tax-Free Municipal Funds or
The Dreyfus/Laurel Investment Series (collectively, "The Dreyfus/Laurel
Funds") for serving as an officer, Director or Trustee of The Dreyfus/
Laurel Funds. In addition, no officer or employee of the Manager (or of
any parent, subsidiary of affiliate thereof) serves as an officer, Direc-
tor or Trustee of The Dreyfus/Laurel Funds. The Dreyfus/Laurel Funds pay
each Director or Trustee who is not an officer or employee of Premier (or
any parent, subsidiary or affiliate thereof) or of the Manager, $27,000
per annum, $1,000 for each Board meeting attended and $750 for each Audit
Committee meeting attended, and reimburse each Director or Trustee for
travel and out-of-pocket expenses.
3. SHAREHOLDER SERVICING PLAN
Each Fund has adopted a shareholder servicing plan (the "Plan"). Under the
Plan, each Fund may pay up to 0.15% and 0.05%, of the value of the average
daily net assets attributable to its Class I and Class II shares, respec-
tively, annually to compensate Premier, certain banks, brokers, dealers or
other financial institutions for shareholder services. Class III shares
are not subject to the Plan. For the six months ended April 30, 1995,
Dreyfus/Laurel Institutional Prime Money Market Fund incurred service fees
of $583,347 and $30,602 for Class I and Class II shares, respectively. For
the six months ended April 30, 1995, Dreyfus/Laurel Institutional U.S.
Treasury Only Money Market Fund incurred service fees of $146 and $6,283
for Class I and Class II shares, respectively.
Under its terms, the shareholder servicing plan shall remain in effect
from year to year, provided such continuance is approved annually by a
vote of a majority of those Directors who are not "interested persons" of
the Investment Company and who have no direct or indirect financial inter-
est in the operation of the Plan or in any agreement related to the Plan.
4. SECURITIES TRANSACTIONS
For the Dreyfus/Laurel Institutional Short-Term Bond Fund, the cost of
purchases and proceeds from sales of securities, excluding short-term in-
vestments and U.S. government securities for the six months ended April
30, 1995 were $494,706 and $497,350, respectively.
For the Dreyfus/Laurel Institutional Short-Term Bond Fund, the cost of
purchases and proceeds from sales of long-term U.S. government securities
for the six months ended April 30, 1995 were $663,531 and $901,516, re-
spectively.
At April 30, 1995, the Dreyfus/Laurel Institutional Short-Term Bond Fund
had aggregate gross unrealized appreciation for all securities in which
there is an excess of tax cost over value of $1,900, and aggregate gross
unrealized depreciation for all securities in which there is an excess of
value over tax cost value of $4,363.
5. SHARES OF CAPITAL STOCK
The Investment Company has authority to issue 25 billion shares of capital
stock with a par value of $.001. Each Fund has authority to issue three
classes of shares (Class I, Class II, Class III Shares). The table below
summarizes the transactions in Fund shares for the year or period indi-
cated. Because the Dreyfus/Laurel Institutional Prime Money Market Fund,
the Dreyfus/Laurel Institutional Government Money Market Fund, the Dreyfu-
s/Laurel Institutional U.S. Treasury Money Market Fund and the Dreyfu-
s/Laurel Institutional U.S. Treasury Only Money Market Fund have sold
shares, issued shares of reinvestments of dividends and redeemed shares
only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the
same as the amounts shown below for such transactions.
DREYFUS/LAUREL INSTITUTIONAL PRIME MONEY MARKET FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994+
<S> <C> <C>
CLASS I SHARES:
Sold $ 3,255,351,589 $ 6,346,280,548
Issued as reinvestment of dividends and distribu-
tions 6,335,066 9,455,788
Redeemed (3,110,091,671) (6,498,036,154)
Net increase/(decrease) $ 151,594,984 $ (142,299,818)
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 1995++
<S> <C>
CLASS II SHARES:
Sold $ 630,150,357
Issued as reinvestment of dividends and distribu-
tions 2,926,038
Redeemed (529,088,940)
Net increase $ 103,987,455
</TABLE>
DREYFUS/LAUREL INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994+
<S> <C> <C>
CLASS I SHARES:
Sold $ 1,069,195,947 $ 2,621,818,115
Issued as reinvestment of dividends and distribu-
tions 1,444,745 2,072,225
Redeemed (1,144,774,292) (2,560,573,095)
Net increase/(decrease) $ (74,133,600) $ 63,317,245
</TABLE>
DREYFUS/LAUREL INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994+
<S> <C> <C>
CLASS I SHARES:
Sold $ 1,309,817,925 $ 3,029,275,330
Issued as reinvestment of dividends and distribu-
tions 1,925,643 2,102,357
Redeemed (1,260,634,315) (2,945,252,694)
Net increase $ 51,109,253 $ 86,124,993
</TABLE>
DREYFUS/LAUREL INSTITUTIONAL U.S. TREASURY ONLY MONEY MARKET FUND
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 1995**
<S> <C>
CLASS I SHARES:
Sold $ 552,308
Issued as reinvestment of dividends and distribu-
tions 4,658
Redeemed (455,246)
Net increase $ 101,720
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994+
<S> <C> <C>
CLASS II SHARES:
Sold $ 52,517,632 $ 112,306,805
Issued as reinvestment of dividends and distribu-
tions 20,782 525,692
Redeemed (56,298,602) (147,453,164)
Net decrease $ (3,760,188) $ (34,620,667)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1995 OCTOBER 31, 1994**
<S> <C> <C>
CLASS III SHARES:
Sold $ 54 $ 35,035,694
Issued as reinvestment of dividends and distribu-
tions 672,354 506,140
Redeemed (7,872,408) (4,841,834)
Net increase/(decrease) $ (7,200,000) $ 30,700,000
</TABLE>
DREYFUS/LAUREL INSTITUTIONAL SHORT-TERM BOND FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1995 OCTOBER 31, 1994*+
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
CLASS I SHARES:
Sold 185,882 $ 1,837,421 3,988,741 $ 39,701,901
Issued as reinvestment of dividends and distribu-
tions 9,630 95,094 58,421 580,265
Redeemed (479,545) (4,736,412) (3,530,863) (35,006,857)
Net increase/(decrease) (284,033) $(2,803,897) $ 516,299 $ 5,275,309
<FN>
* The Dreyfus/Laurel Institutional Short-Term Bond Fund commenced opera-
tions on November 5, 1993.
** The Dreyfus/Laurel Institutional U.S. Treasury Only Money Market Fund
commenced selling Class I and Class III shares on November 30, 1994 and
May 12, 1994, respectively.
+ On April 4, 1994, existing shares of the Dreyfus/Laurel Institutional
Prime Money Market Fund, the Dreyfus/Laurel Institutional Government
Money Market Fund, the Dreyfus/Laurel Institutional U.S. Treasury Money
Market Fund and the Dreyfus/Laurel Institutional Short- Term Bond Fund
were designated Class I shares. On April 4, 1994, existing shares of
the Dreyfus/Laurel Institutional U.S. Treasury Only Money Market Fund
were designated Class II shares.
++ The Dreyfus/Laurel Institutional Prime Money Market Fund commenced
selling Class II shares on November 3, 1994.
</TABLE>
6. CAPITAL LOSS CARRYFORWARD
At October 31, 1994, the Dreyfus/Laurel Institutional Short-Term Bond Fund
had available for Federal income tax purposes an unused capital loss car-
ryforward of $158,643, to offset future gains expiring in 2002.
