<PAGE>
A N N U A L R E P O R T
Small box above fund name showing a lion's face.
/ /
DREYFUS/LAUREL INSTITUTIONAL PRIME 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 GOVERNMENT MONEY MARKET FUND
DREYFUS/LAUREL INSTITUTIONAL SHORT-TERM BOND FUND
/ /
OCTOBER 31, 1994
<PAGE>
DEAR SHAREHOLDER,
We are pleased to provide you a review of the financial markets environment
for the past year as well as performance and portfolio activity information
for the Dreyfus/Laurel Institutional Government Money Market, Institutional
Prime Money Market, Institutional U.S. Treasury Money Market, Institutional
U.S. Treasury Only Money Market and Institutional Short-Term Bond Funds for
the period ended October 31, 1994.
As you know from recent correspondence, The Laurel Family of Funds is
integrating with The Dreyfus Family of Funds. As part of this integration, the
Laurel Institutional Government Money Market, Institutional Prime Money
Market, Institutional U.S. Treasury Money Market, Institutional U.S. Treasury
Only Money Market and Institutional Short-Term Bond Funds are now known, and
publicly listed, as the Dreyfus/Laurel Institutional Government Money Market,
Institutional Prime Money Market, Institutional U.S. Treasury Money Market,
Institutional U.S. Treasury Only Money Market and Institutional Short-Term
Bond Funds. Please be assured that the new names do not affect the value of
your account or the investment objective or strategy of your Fund. The
integration is discussed in greater detail in the notes to the financial
statements of this report.
In the pages that follow, we have provided detailed financial statements and a
commentary on your Fund's investment management strategy and portfolio changes
for the reporting period.
We would like to extend our appreciation for your support and hope that you
will find that your Fund, which is now part of The Dreyfus Family of Funds,
will continue to satisfy your investment needs. As always, we welcome your
thoughts and suggestions.
Sincerely,
Marie E. Connolly
President
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
December 9, 1994
1
................................................................................
<PAGE>
TABLE of CONTENTS
................................................................................
<TABLE>
<S> <C>
Shareholder Letter........................................ 1
Economic Review........................................... 3
Portfolio Overview........................................ 4
Performance Summary....................................... 5
Portfolio of Investments.................................. 6
Statement of Assets and Liabilities....................... 14
Statement of Operations................................... 16
Statement of Changes in Net Assets........................ 18
Financial Highlights...................................... 22
Notes to Financial Statements............................. 31
Independent Auditors' Report.............................. 39
</TABLE>
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK AND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. ALL MUTUAL FUND
SHARES INVOLVE CERTAIN INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL, AND THERE CAN BE NO GUARANTEE THAT A MONEY MARKET FUND WILL BE ABLE
TO MAINTAIN A STABLE $1.00 SHARE PRICE.
THE FUND IS DISTRIBUTED BY PREMIER MUTUAL FUND SERVICES, INC.
2
................................................................................
<PAGE>
ECONOMIC REVIEW
................................................................................
One of the biggest news stories of the year--business or otherwise--was the
rise in interest rates. This year's rise in rates was the most dramatic in
decades and sharply impacted the markets, the housing industry, the growth of
the economy and perhaps even had an effect on the outcome of the November
mid-term elections, held one week after the end of the fiscal year.
On February 4, 1994, the Federal Reserve Board embarked on the first of five
interest rate hikes during the fiscal year ending October 31, 1994. On
November 15th, 1994, the sixth and largest rate increase occurred. All told,
the Fed raised rates a total of 2.50 percentage points, nearly doubling
short-term rates from 3.00% to 5.50%.
At the same time, long-term interest rates rose in lock step to short-term
rates, creating havoc in the bond markets. Between October 31, 1993 and
October 31, 1994, the Lehman Brothers Treasury Bond Index fell 4.46%. Stocks,
as measured by the Standard & Poor's 500 Composite Stock Price Index,
performed better--up 3.86% for the period. Stocks are influenced by many
factors, principally corporate earnings.
Despite rising interest rates throughout fiscal 1994, the economy grew at a
rate of 3.5%. Inflation is still a risk, but our 1995 outlook is still under
3.5%. We expect the latest Fed action to slow the economy slightly in 1995 to
3%. We also expect that inflation fears will ebb, and that long-term interest
rates will flatten out, which is good news for the battered bond market.
Recent overall growth rates understate the vigor in the private economy. While
Gross Domestic Product advanced at a rate of 3.7% in the first six months of
1994, a 3.1% decline in the public sector masked a soaring 5.2% advance in the
private economy.
To be sure, higher interest rates have taken some steam out of housing
activity, but rising job and income growth have proven to be powerful offsets.
Moreover, recent homebuyers are contributing to still-solid gains in consumer
outlays for furniture and appliances. In addition, the rise in interest rates
has not yet dampened either consumers' desire to borrow or lenders'
willingness to supply credit.
However, two factors may dampen consumer optimism by early next year. First,
rising rates will increase monthly mortgage payments for consumers holding
adjustable rate mortgages. Those adjustable rate mortgages will reset at rates
approximately 2 percentage points higher than they carried in 1994, taking
$12-15 billion out of the spending stream by 1995. Thus, housing and the
consumer may shift away from starring roles in the expansion of the economy.
Meanwhile, exports and capital spending are taking center stage, and should
offset the effects of slower household spending growth on economic
performance. U.S. exports should benefit from the dollar's 1994 weakness by
taking advantage of overseas growth and increased capital spending worldwide.
3
................................................................................
<PAGE>
PORTFOLIO OVERVIEW
................................................................................
-The Dreyfus/Laurel Institutional Prime Money Market Fund invests in
high-grade money market securities issued by banks, the federal government
and large corporations as well as repurchase agreements.
-The Dreyfus/Laurel Institutional Government Money Market Fund invests in a
mixture of U.S. Treasuries, U.S. Government agency securities and
repurchase 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.
-The Dreyfus/Laurel Institutional Short Term Bond Fund invests primarily in
investment grade bonds rated at least A by Moody's Investors Service, Inc.,
Standard & Poor's Rating Group or Fitch Investors Service, Inc. with
maturities less than three years.
Each of the money market funds is designed to provide current income as well
as stability of principal. In a rising interest rate environment, it is
important to keep these funds invested in shorter maturities in order to
outperform their benchmarks. While the money market funds began the fiscal
year with a targeted average maturity of 50-60 days, by the end of the
reporting period the targeted maturity had been shortened to an average
maturity of about 40 days.
The Institutional Short Term Bond Fund seeks to provide higher income than a
money market fund for those investors who can tolerate more volatility in
principal. In a period of rising interest rates, the average maturity of this
Fund will be on the shorter end of its range. The Fund began its fiscal year
1994, with a duration of .75 years and ended the reporting period with a
duration of .47 years. Due to the rising interest rates during the reporting
period, the Fund's management kept the average maturity shorter than it
normally would have. This strategy resulted in a cumulative total return of
2.82% for the period beginning November 3, 1993 (inception) to October 31,
1994.
Looking ahead into 1995, the Funds' management continues to believe that
short-term interest rates are more likely to rise than fall. Thus, the current
strategy is to continue to maintain short maturities. By doing so, the Fund's
management is not locked into a lower yielding securities as interest rates
increase. Furthermore, the Fund's credit analysts will continue to thoroughly
research the Funds' holdings to ensure the quality of each security.
4
................................................................................
<PAGE>
PERFORMANCE SUMMARY
................................................................................
- --------------------------------------------------------------------------------
INSTITUTIONAL SHORT-TERM BOND FUND (UNAUDITED)
GROWTH OF $10,000 INVESTED FROM NOVEMBER 5, 1993 -- OCTOBER 31, 1994+
A line graph depicting the total growth (including reinvestment of dividends
and capital gains) of a hypothetical investment of $10,000 in Dreyfus
Institutional Short-Term Bond Fund Class I Shares from November 5, 1993
through October 31, 1994 as compared with the growth of a $10,000 investment
in Solomon 1-Year Treasury Bill Index. The plot points used to draw the line
graph were as follows:
<TABLE>
<CAPTION>
GROWTH OF $10,000
GROWTH OF $10,000 INVESTMENT IN THE
INVESTED IN CLASS I SHARES SOLOMON 1-YEAR
MONTH ENDED OF THE FUND TREASURY BILL INDEX
<S> <C> <C>
10/3/93 -- $10,000
11/5/93 $10,000 --
11/93 $10,014 $10,018
12/93 $10,054 $10,053
3/94 $10,091 $10,084
6/94 $10,143 $10,130
9/94 $10,242 $10,245
10/94 $10,282 $10,287
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE TOTAL RETURN -- CLASS I SHARES
<S> <C>
-------------------------------------------------------------------
Inception (11/5/93) through 10/31/94 2.86%
-------------------------------------------------------------------
<FN>
+ HYPOTHETICAL ILLUSTRATION OF $10,000 INVESTED IN CLASS I SHARES AT INCEPTION
(NOVEMBER 5, 1993) AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AT NET
ASSET VALUE THROUGH OCTOBER 31, 1994.
THE SALOMON 1-YEAR TREASURY BILL INDEX REPRESENTS AN AVERAGE OF CURRENT
ON-THE-RUN U.S. TREASURY BILLS WITH MATURITIES OF ONE YEAR, PURCHASED AT A
DISCOUNT.
INDEX INFORMATION IS AVAILABLE AT MONTH-END ONLY, THEREFORE, THE CLOSEST
MONTH-END TO INCEPTION DATE OF THE FUND HAS BEEN USED.
THIS PERIOD WAS ONE IN WHICH BOND PRICES FLUCTUATED AND THE RESULTS SHOULD NOT
BE CONSIDERED AS REPRESENTATIVE OF DIVIDEND INCOME OR CAPITAL GAIN OR LOSS
WHICH MAY BE REALIZED FROM AN INVESTMENT IN THE FUND TODAY. NO ADJUSTMENT HAS
BEEN MADE FOR A SHAREHOLDER'S TAX LIABILITY ON DIVIDENDS OR CAPITAL GAINS.
NOTE: ALL FIGURES CITED HERE AND ON THE FOLLOWING PAGES REPRESENT PAST
PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES
UPON REDEMPTION MAY BE WORTH MORE OR LESS THAN ORIGINAL COST.
</TABLE>
5
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL
PRIME MONEY MARKET FUND OCTOBER 31, 1994
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
COMMERCIAL PAPER -- 71.6%
<C> <S> <C> <C> <C>
DOMESTIC COMMERCIAL PAPER -- 49.2%
$15,000,000 Ameritech Corporation 4.600% 11/18/94 $ 14,967,417
8,000,000 Anheuser-Busch Cos., Inc. 4.850 11/01/94 8,000,000
5,000,000 Bankers Trust New York 5.060 11/14/94 4,990,864
10,625,000 Bausch & Lomb Inc. 4.850 11/21/94 10,596,372
10,000,000 Bear Stearns Company 5.440 01/19/95 9,880,622
10,000,000 Ciesco LP 4.850 12/05/94 9,954,195
15,000,000 Corporate Receivables Corporation 4.875 12/06/94 14,928,906
25,000,000 Dun & Bradstreet Corporation 4.870 12/13/94 24,857,958
15,000,000 Equitable Resources Inc. 4.920 11/03/94 14,995,900
18,800,000 Gannet Company Inc.** 4.850 11/28/94 18,731,615
14,000,000 GTE Hawaiian Telephone Company 5.050 11/18/94 13,966,614
25,000,000 Hewlett Packard Company 5.020 02/27/95 24,588,639
5,000,000 HJ Heinz Company 4.770 11/01/94 5,000,000
15,000,000 JP Morgan Company 4.800 11/16/94 14,970,000
5,500,000 Laclede Gas Company 5.000 11/09/94 5,493,889
15,782,000 McGraw Hill Inc. 4.820 12/06/94 15,708,044
20,000,000 New Center Asset 5.020 12/20/94 19,863,345
15,000,000 Pitney Bowes Credit Corporation 4.800 11/17/94 14,968,000
12,000,000 Pitney Bowes Credit Corporation 4.850 11/29/94 11,954,733
14,000,000 Schering Corporation 4.800 12/14/94 13,919,733
4,379,000 Southern California Gas Company 4.890 12/05/94 4,358,776
10,000,000 Toys "R" Us 4.870 11/29/94 9,962,122
25,000,000 United Technologies 5.060 11/22/94 24,926,209
24,000,000 US West Communications Inc. 5.450 01/17/95 23,720,233
------------
TOTAL DOMESTIC COMMERCIAL PAPER (Cost $335,304,186)
335,304,186
------------
FOREIGN COMMERCIAL PAPER -- 22.4%
11,750,000 Aegon 4.880 12/07/94 11,692,660
8,000,000 Aegon 4.950 11/14/94 7,985,700
10,000,000 CSR America Inc. 5.100 01/27/95 9,876,750
10,000,000 Kingdom of Sweden 4.600 11/01/94 10,000,000
20,000,000 National Provincial Building
Society 4.850 12/20/94 19,867,972
15,000,000 National Westminster Bank PLC 4.900 12/05/94 15,000,280
20,000,000 New South Wales Treasury
Corporation 5.100 11/29/94 19,920,667
10,000,000 Royal Bank of Canada 4.890 11/30/94 10,001,605
10,000,000 RTZ America Inc.** 5.470 01/25/95 9,870,847
8,835,000 Sandoz Corporation 4.850 12/01/94 8,799,292
20,000,000 Toshiba America Inc. 5.070 01/05/95 19,816,917
4,500,000 Toshiba America Inc. 5.140 02/10/95 4,435,108
5,400,000 Toshiba America Inc. 5.220 04/17/95 5,269,239
------------
TOTAL FOREIGN COMMERCIAL PAPER (Cost $152,537,037)
152,537,037
------------
</TABLE>
6 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (continued)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL
PRIME MONEY MARKET FUND OCTOBER 31, 1994
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
U.S. GOVERNMENT AGENCIES -- 13.1%
<C> <S> <C> <C> <C>
$10,000,000 Federal Farm Credit Bank Agency
Discount Notes 4.750% 12/14/94 $ 9,943,264
10,000,000 Federal Home Loan Bank Agency
Discount Note 4.900 12/19/94 9,934,667
35,000,000 Federal National Mortgage
Association Discount Note 4.720 11/23/94 34,899,045
25,000,000 Federal National Mortgage
Association Discount Note 4.750 11/30/94 24,904,340
10,000,000 Federal National Mortgage
Association Discount Note 5.010 12/19/94 9,933,200
------------
TOTAL U.S. GOVERNMENT AGENCIES (Cost $89,614,516)
89,614,516
------------
VARIABLE RATE NOTES -- 5.1%
15,000,000 Ford Motor Credit Company 3.750 02/27/95 15,013,111
10,000,000 Pepsico Inc. 5.325 04/13/95 9,999,870
5,000,000 PNC Bank Pennsylvania 5.310 05/09/95 4,996,573
5,000,000 Student Loan Marketing Association 4.250 12/08/94 5,000,000
------------
TOTAL VARIABLE RATE NOTES (Cost $35,009,554) 35,009,554
------------
<CAPTION>
ANNUALIZED
YIELD
AT
DATE
OF
PURCHASE
<C> <S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 1.4% (Cost $9,655,000)
10,000,000 U.S. Treasury Bills 5.175 06/29/95 9,655,000
------------
REPURCHASE AGREEMENT -- 9.1% (Cost $62,000,655)
62,000,655 Agreement with Barclays de Zoete Wedd dated 10/31/94
bearing 4.780% to be repurchased at $62,008,887 on
11/01/94 collateralized by: $6,423,188, U.S.
Treasury Notes, 5.500% due on 04/15/00; $7,637,825,
U.S. Treasury Notes, 5.500% due 02/28/99;
$33,459,177, U.S. Treasury Notes, 11.250% due
05/15/95; $14,481,054, U.S. Treasury Notes, 7.625%
due 12/31/94 62,000,655
------------
TOTAL INVESTMENTS (Cost $684,120,948*) 100.3% $684,120,948
OTHER ASSETS AND LIABILITIES (NET) (0.3) (2,340,416)
------ ------------
NET ASSETS 100.0% $681,780,532
------ ------------
------ ------------
---------------------------------------------------------------------------------
<FN>
* AGGREGATE COST FOR FEDERAL TAX PURPOSES.
** COMMERCIAL PAPER SOLD WITHIN TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 4(2) OF THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY BE SOLD ONLY TO DEALERS IN THAT PROGRAM OR OTHER "ACCREDITED
INVESTORS." THESE SECURITIES HAVE BEEN DETERMINED TO BE LIQUID UNDER
GUIDELINES ESTABLISHED BY THE BOARD OF DIRECTORS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 7
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL
GOVERNMENT MONEY MARKET FUND OCTOBER 31, 1994
<TABLE>
<CAPTION>
ANNUALIZED
YIELD AT
PRINCIPAL DATE OF MATURITY VALUE
AMOUNT PURCHASE DATE (NOTE 1)
U.S. GOVERNMENT AGENCIES -- 64.8%
<C> <S> <C> <C> <C>
$ 13,000,000 Federal Farm Credit Bank Discount
Note 4.750% 12/14/94 $ 12,926,243
15,000,000 Federal Farm Credit Bank Discount
Note 5.010 12/22/94 14,893,538
13,585,000 Federal Home Loan Bank Discount
Note 4.750 12/09/94 13,516,886
10,000,000 Federal Home Loan Bank Discount
Note 4.900 12/20/94 9,933,306
25,000,000 Federal Home Loan Bank Discount
Note 5.290 01/20/95 24,706,111
15,000,000 Federal Home Loan Bank Discount
Note 5.320 01/23/95 14,816,017
20,000,000 Federal Home Loan Mortgage Agency
Discount Note 4.530 11/03/94 19,994,967
15,000,000 Federal Home Loan Mortgage Agency
Discount Note 4.730 11/21/94 14,960,583
17,000,000 Federal Home Loan Mortgage Agency
Discount Note 4.730 11/25/94 16,946,393
15,000,000 Federal National Mortgage
Association Discount Note 4.740 11/10/94 14,982,225
29,820,000 Federal National Mortgage
Association Discount Note 4.720 11/17/94 29,757,444
7,735,000 Federal National Mortgage
Association Discount Note 4.870 11/21/94 7,714,073
15,190,000 Federal National Mortgage
Association Discount Note 4.660 11/29/94 15,134,945
20,000,000 Federal National Mortgage
Association Discount Note 4.720 11/29/94 19,926,578
25,000,000 Federal National Mortgage
Association Discount Note 4.750 11/30/94 24,904,340
10,000,000 Federal National Mortgage
Association Discount Note 4.750 12/13/94 9,944,583
10,000,000 Federal National Mortgage
Association Discount Note 4.700 12/16/94 9,941,250
10,000,000 Federal National Mortgage
Association Discount Note 4.750 12/16/94 9,940,625
10,000,000 Federal National Mortgage
Association Discount Note 5.010 12/19/94 9,933,200
10,000,000 Federal National Mortgage
Association Discount Note 4.900 02/22/95 9,846,195
------------
TOTAL U.S. GOVERNMENT AGENCIES (Cost $304,719,502)
304,719,502
------------
</TABLE>
8 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (continued)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL
GOVERNMENT MONEY MARKET FUND OCTOBER 31, 1994
<TABLE>
<CAPTION>
ANNUALIZED
YIELD AT
PRINCIPAL DATE OF MATURITY VALUE
AMOUNT PURCHASE DATE (NOTE 1)
U.S. TREASURY OBLIGATIONS -- 8.4%
<C> <S> <C> <C> <C>
$ 15,000,000 U.S. Treasury Bills 4.770% 12/15/94 $ 14,915,758
10,000,000 U.S. Treasury Bills 5.425 05/04/95 9,737,033
5,000,000 U.S. Treasury Bills 5.180 06/29/95 4,827,333
10,000,000 U.S. Treasury Strip 4.815 11/15/94 9,981,980
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $39,462,104) 39,462,104
------------
REPURCHASE AGREEMENTS -- 27.2%
27,763,286 Agreement with Barclays de Zoete Wedd dated 10/31/94 bearing
4.780% to be repurchased at $27,766,972 on 11/01/94
collateralized by: $27,763,537, U.S. Treasury Bill, 5.180%
due 01/26/95 27,763,286
100,000,000 Agreement with Donaldson Lufkin & Jenrette Securities
Corporation dated 10/31/94 bearing 4.780% to be
repurchased at $100,013,278 on 11/01/94 collateralized by:
$49,106,999, U.S. Treasury Notes, 6.750% due 05/31/99;
$1,619,631, U.S. Treasury Notes, 3.875% due 08/31/95;
$49,274,147, U.S. Treasury Notes, 4.250% due 07/31/95 100,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $127,763,286) 127,763,286
------------
TOTAL INVESTMENTS
(Cost $471,944,892*) 100.4% 471,944,892
OTHER ASSETS AND LIABILITIES (NET) (0.4) (1,938,022)
------ ------------
NET ASSETS 100.0% $470,006,870
------ ------------
------ ------------
------------------------------------------------------------------------------------
<FN>
* AGGREGATE COST FOR FEDERAL TAX PURPOSES.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 9
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL
U.S. TREASURY MONEY MARKET FUND OCTOBER 31, 1994
<TABLE>
<CAPTION>
ANNUALIZED
YIELD AT
PRINCIPAL DATE OF MATURITY VALUE
AMOUNT PURCHASE DATE (NOTE 1)
U.S. TREASURY OBLIGATIONS -- 71.8%
<C> <S> <C> <C> <C>
$ 40,000,000 U.S. Treasury Bills 4.310% 11/03/94 $ 39,990,422
5,000,000 U.S. Treasury Bills 4.400 11/03/94 4,998,778
10,000,000 U.S. Treasury Bills 4.340 11/10/94 9,989,150
10,000,000 U.S. Treasury Bills 3.910 11/17/94 9,982,622
25,000,000 U.S. Treasury Bills 4.470 11/17/94 24,950,334
25,000,000 U.S. Treasury Bills 4.560 12/08/94 24,882,834
15,000,000 U.S. Treasury Bills 4.580 12/15/94 14,916,033
15,000,000 U.S. Treasury Bills 4.720 12/15/94 14,913,467
20,000,000 U.S. Treasury Bills 4.847 12/15/94 19,887,678
25,000,000 U.S. Treasury Bills 4.600 12/22/94 24,837,084
10,000,000 U.S. Treasury Bills 4.080 01/12/95 9,918,400
25,000,000 U.S. Treasury Bills 4.890 01/12/95 24,755,500
25,000,000 U.S. Treasury Bills 4.680 01/19/95 24,743,250
35,000,000 U.S. Treasury Bills 5.010 01/19/95 34,615,204
20,000,000 U.S. Treasury Bills 4.755 01/26/95 19,772,816
35,000,000 U.S. Treasury Bills 5.050 01/26/95 34,577,764
25,000,000 U.S. Treasury Bills 5.020 02/02/95 24,675,792
25,000,000 U.S. Treasury Bills 5.000 02/16/95 24,628,472
10,000,000 U.S. Treasury Bills 4.820 03/09/95 9,828,622
20,000,000 U.S. Treasury Bills 5.436 05/04/95 19,473,045
5,000,000 U.S. Treasury Strip 4.776 11/15/94 4,990,990
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $421,328,257)
421,328,257
------------
REPURCHASE AGREEMENTS -- 28.5%
66,956,071 Agreement with Barclays de Zoete Wedd dated 10/31/94 bearing
4.780% to be repurchased at $66,964,961 on 11/01/94
collateralized by: $8,778,620, U.S. Treasury Notes, 5.750%
due 10/31/97; $7,527,027, U.S. Treasury Notes, 7.500% due
01/31/96; $20,366,209, U.S. Treasury Notes, 11.625% due
11/15/94; $4,800,742, U.S. Treasury Bonds, 8.875% due
08/15/17; $5,046,199, U.S. Treasury Bonds, 10.750% due
05/15/03; $20,398,136, U.S. Treasury Bill, 5.180% due
01/26/95 66,956,071
100,000,000 Agreement with Donaldson Lufkin & Jenrette Securities
Corporation dated 10/31/94 bearing 4.780% to be
repurchased at $100,013,278 on 11/01/94 collateralized by:
$47,419,072, U.S. Treasury Notes, 8.750% due 10/15/97;
$52,581,618, U.S. Treasury Notes, 5.500% due 4/30/96 100,000,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $166,956,071) 166,956,071
------------
TOTAL INVESTMENTS (Cost $588,284,328*) 100.3% 588,284,328
OTHER ASSETS AND LIABILITIES (0.3) (1,506,043)
------ ------------
NET ASSETS 100.0% $586,778,285
------ ------------
------ ------------
------------------------------------------------------------------------------------
<FN>
* AGGREGATE COST FOR FEDERAL TAX PURPOSES.
</TABLE>
10 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL
U.S. TREASURY ONLY MONEY MARKET FUND OCTOBER 31, 1994
<TABLE>
<CAPTION>
ANNUALIZED
YIELD AT
PRINCIPAL DATE OF MATURITY VALUE
AMOUNT PURCHASE DATE (NOTE 1)
U.S. TREASURY OBLIGATIONS -- 100.3%
<C> <S> <C> <C> <C>
$ 4,834,000 U.S. Treasury Bills 4.380% 11/03/94 $ 4,832,824
37,000 U.S. Treasury Bills 4.340 11/10/94 36,958
1,633,000 U.S. Treasury Bills 4.435 11/10/94 1,631,189
7,546,000 U.S. Treasury Bills 4.470 11/10/94 7,537,567
1,038,000 U.S. Treasury Bills 4.390 11/17/94 1,035,975
10,250,000 U.S. Treasury Bills 4.450 11/17/94 10,229,728
521,000 U.S. Treasury Bills 4.540 11/17/94 519,949
1,371,000 U.S. Treasury Bills 4.580 11/17/94 1,368,209
2,032,000 U.S. Treasury Bills 4.450 12/08/94 2,022,706
16,000 U.S. Treasury Bills 4.550 12/08/94 15,925
92,000 U.S. Treasury Bills 4.590 12/08/94 91,566
170,000 U.S. Treasury Bills 4.650 12/08/94 169,188
454,000 U.S. Treasury Bills 4.780 12/08/94 451,770
4,205,000 U.S. Treasury Bills 4.580 12/15/94 4,181,461
70,000 U.S. Treasury Bills 4.570 12/22/94 69,547
147,000 U.S. Treasury Bills 4.585 12/22/94 146,045
5,000,000 U.S. Treasury Bills 4.600 12/22/94 4,967,417
7,929,000 U.S. Treasury Bills 4.750 12/22/94 7,875,644
3,381,000 U.S. Treasury Bills 4.820 12/22/94 3,357,913
4,024,000 U.S. Treasury Bills 4.660 01/12/95 3,986,496
1,256,000 U.S. Treasury Bills 4.700 01/19/95 1,243,046
131,000 U.S. Treasury Bills 4.730 01/19/95 129,640
106,000 U.S. Treasury Bills 4.750 01/19/95 104,895
1,114,000 U.S. Treasury Bills 4.895 01/19/95 1,102,034
1,279,000 U.S. Treasury Bills 4.790 02/23/95 1,259,600
2,000,000 U.S. Treasury Bills 5.110 05/04/95 1,947,765
338,000 U.S. Treasury Bills 5.150 06/29/95 326,395
562,000 U.S. Treasury Bills 5.280 07/27/95 539,910
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $61,181,362) 61,181,362
------------
TOTAL INVESTMENTS
(Cost $61,181,362*) 100.3% 61,181,362
OTHER ASSETS AND LIABILITIES (NET) (0.3) (181,228)
------ ------------
NET ASSETS 100.0% $61,000,134
------ ------------
------ ------------
------------------------------------------------------------------------------------
<FN>
* AGGREGATE COST FOR FEDERAL TAX PURPOSES.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 11
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL
SHORT-TERM BOND FUND OCTOBER 31, 1994
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
COMMERCIAL PAPER -- 35.3%
<C> <S> <C> <C> <C>
DOMESTIC COMMERCIAL PAPER -- 23.6%
$200,000 Golden Peanut Company 5.080% 12/09/94 $ 198,899
200,000 Goldman Sachs Group 4.980 11/16/94 199,557
200,000 Kimberly Clark Corporation 4.920 11/17/94 199,535
200,000 Pitney Bowes Credit Corporation 5.100 12/08/94 198,863
209,000 Sara Lee Corporation 5.070 12/01/94 208,087
200,000 US Bancorp 5.120 12/08/94 198,919
----------
TOTAL DOMESTIC COMMERCIAL PAPER (Cost $1,204,091) 1,203,860
----------
FOREIGN COMMERCIAL PAPER -- 11.7%
200,000 British Telecommunications PLC 4.980 11/29/94 199,198
200,000 Canadian Wheat Board 5.500 03/10/95 195,955
200,000 Grand Metropolitan Investment 4.820 11/21/94 199,417
----------
TOTAL FOREIGN COMMERCIAL PAPER
(Cost $594,748) 594,570
----------
CORPORATE BONDS AND NOTES -- 27.5%
Banking and Finance -- 15.1%
175,000 C.I.T. Group Holdings, Inc. 5.500 11/01/95 173,031
150,000 International Lease Finance
Corporation 6.625 06/01/96 149,063
155,000 John Deere Capital Corporation 5.000 01/15/95 154,613
210,000 NationsBank Corporation 5.375 12/01/95 207,638
90,000 Republic National Bank of New York 4.750 10/15/95 88,650
----------
772,995
----------
Machinery -- 4.0%
200,000 Ingersoll Rand Company 8.250 11/01/96 203,500
----------
Aerospace -- 4.6%
230,000 Martin Marietta Corporation 8.500 03/01/96 234,025
----------
Utilities -- 3.8%
195,000 General Electric Company 5.875 12/01/94 195,000
----------
TOTAL CORPORATE BONDS AND NOTES
(Cost $1,422,212) 1,405,520
----------
</TABLE>
12 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
PORTFOLIO of INVESTMENTS (continued)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL
SHORT-TERM BOND FUND OCTOBER 31, 1994
<TABLE>
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
U.S. TREASURY OBLIGATIONS -- 9.7%
<C> <S> <C> <C> <C>
(Cost $492,345)
$500,000 U.S. Treasury Notes 5.500% 04/30/96 $ 492,275
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 5.8%
(Cost $298,773)
300,000 Federal National Mortgage
Association 4.910 12/01/94 298,732
----------
REPURCHASE AGREEMENT -- 17.5%
(Cost $891,912)
Agreement with Barclays de Zoete Wedd dated 10/31/94 bearing
4.780% to be repurchased at $892,030 on 11/01/94,
collateralized by: $892,697, U.S. Treasury Bill, 5.720%
due 11/10/94 891,912
891,912
----------
TOTAL INVESTMENTS
(Cost $4,904,081*) 95.8% 4,886,869
OTHER ASSETS AND LIABILITIES (NET) 4.2 212,585
------ ----------
NET ASSETS 100.0% $5,099,454
------ ----------
------ ----------
------------------------------------------------------------------------------------
<FN>
* AGGREGATE COST FOR FEDERAL TAX PURPOSES.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 13
................................................................................
<PAGE>
STATEMENT of ASSETS and LIABILITIES
................................................................................
- --------------------------------------------------------------------------------
OCTOBER 31, 1994
<TABLE>
<CAPTION>
DREYFUS/LAUREL
INSTITUTIONAL
PRIME
MONEY MARKET
FUND
<S> <C>
-------------------------------------------------------------------
ASSETS
Investments, at value (Cost $684,120,948,
$471,944,892, $588,284,328, $61,181,362 and
$4,904,081, respectively.)
(Note 1) See accompanying schedules
Securities $622,120,293
Repurchase agreements 62,000,655
---------------
Total Investments 684,120,948
Cash --
Interest receivable 644,567
Receivable from investment adviser (Note 2) 70,823
Receivable for investment securities sold --
Receivable for Fund shares sold 179,302
Other assets --
---------------
TOTAL ASSETS 685,015,640
---------------
---------------
LIABILITIES
Dividends payable 2,985,051
Payable for Fund shares redeemed 54,897
Investment management fee payable (Note 2) 91,634
Shareholder service fee payable (Note 3) 14,909
Accrued Directors' fees and expenses (Note 2) 88,617
---------------
TOTAL LIABILITIES 3,235,108
---------------
NET ASSETS $681,780,532
---------------
---------------
NET ASSETS consist of:
Distribution in excess of net investment income $ --
Accumulated net realized loss on investments sold --
Unrealized depreciation of investments --
Par value 681,781
Paid-in capital in excess of par value 681,098,751
---------------
TOTAL NET ASSETS $681,780,532
---------------
---------------
NET ASSETS:
Class I Shares $681,780,532
---------------
---------------
Class II Shares $ --
---------------
---------------
Class III Shares $ --
---------------
---------------
SHARES OUTSTANDING:
Class I Shares 681,780,532
---------------
---------------
Class II Shares --
---------------
---------------
Class III Shares --
---------------
---------------
CLASS I SHARES
Net assets value, offering and redemption price
per share $1.00
-------
-------
CLASS II SHARES
Net asset value, offering and redemption price per
share $--
-------
-------
CLASS III SHARES
Net asset value, offering and redemption price per
share $--
-------
-------
</TABLE>
14 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
STATEMENT of ASSETS and LIABILITIES (continued)
................................................................................
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DREYFUS/LAUREL DREYFUS/LAUREL DREYFUS/LAUREL
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL DREYFUS/LAUREL
GOVERNMENT U.S. TREASURY U.S. TREASURY ONLY INSTITUTIONAL
MONEY MARKET MONEY MARKET MONEY MARKET SHORT-TERM BOND
FUND FUND FUND FUND
<S> <C> <C> <C>
--------------------------------------------------------------------------
$344,181,606 $421,328,257 $ 61,181,362 $ 3,994,957
127,763,286 166,956,071 -- 891,912
--------------- --------------- ------------------- ----------------
471,944,892 588,284,328 61,181,362 4,886,869
-- -- 9 --
16,964 22,169 -- 32,716
23,667 30,735 -- 83,093
-- -- -- 103,304
-- 876,252 52,796 614
6,629 -- -- --
--------------- --------------- ------------------- ----------------
471,992,152 589,213,484 61,234,167 5,106,596
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
1,861,675 2,201,952 218,357 474
-- 90,000 -- 3,219
58,883 70,810 7,082 1,153
9,532 12,435 204 104
55,192 60,002 8,390 2,192
--------------- --------------- ------------------- ----------------
1,985,282 2,435,199 234,033 7,142
--------------- --------------- ------------------- ----------------
$470,006,870 $586,778,285 $ 61,000,134 $ 5,099,454
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
$ -- $ -- $ (1,827) $ --
-- -- -- (158,643)
-- -- -- (17,212)
470,007 586,778 61,001 516
469,536,863 586,191,507 60,940,960 5,274,793
--------------- --------------- ------------------- ----------------
$470,006,870 $586,778,285 $ 61,000,134 $ 5,099,454
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
$470,006,870 $586,778,285 $ -- $ 5,099,454
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
$ -- $ -- $ 30,300,775 $ --
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
$ -- $ -- $ 30,699,359 $ --
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
470,006,870 586,778,285 -- 516,299
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
-- -- 30,301,400 --
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
-- -- 30,700,000 --
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
$1.00 $1.00 $-- $9.88
------- ------- --------- --------
------- ------- --------- --------
$-- $-- $1.00 $--
------- ------- --------- --------
------- ------- --------- --------
$-- $-- $1.00 $--
------- ------- --------- --------
------- ------- --------- --------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 15
................................................................................
<PAGE>
STATEMENT of OPERATIONS
................................................................................
- --------------------------------------------------------------------------------
FOR THE YEAR OR PERIOD ENDED OCTOBER 31, 1994
<TABLE>
<CAPTION>
DREYFUS/LAUREL
INSTITUTIONAL
PRIME
MONEY MARKET
FUND
<S> <C>
------------------------------------------------------------------
INVESTMENT INCOME
Interest $30,976,305
--------------
EXPENSES
Investment advisory fee (Note 2) 719,248
Administration fee (Note 2) 102,688
Investment management fee (Note 2) 572,835
Custodian fees (Note 2) 60,862
Transfer agent fees (Note 2) 24,766
Shareholder service fee (Note 3) 660,963
Legal and audit fees 31,847
Directors' fees and expenses (Note 2) 91,431
Registration and filing fees 10,139
Amortization of organization costs (Note 6) --
Other expenses 64,636
Expenses reimbursed by investment adviser (Note 2) --
--------------
TOTAL EXPENSES 2,339,415
--------------
NET INVESTMENT INCOME 28,636,890
--------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS
(Notes 1 and 4)
Net realized loss on investments during the year --
Net unrealized depreciation of investments
during the year --
--------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS --
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $28,636,890
--------------
--------------
------------------------------------------------------------------
<FN>
* THE DREYFUS/LAUREL INSTITUTIONAL SHORT-TERM BOND FUND COMMENCED OPERATIONS ON
NOVEMBER 5, 1993.
</TABLE>
16 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
STATEMENT of OPERATIONS (continued)
................................................................................
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DREYFUS/LAUREL DREYFUS/LAUREL DREYFUS/LAUREL
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL DREYFUS/LAUREL
GOVERNMENT U.S. TREASURY U.S. TREASURY ONLY INSTITUTIONAL
MONEY MARKET MONEY MARKET MONEY MARKET SHORT-TERM BOND
FUND FUND FUND FUND*
<S> <C> <C> <C>
------------------------------------------------------------------------------
$ 18,066,349 $ 19,165,474 $ 2,434,871 $ 616,754
--------------- --------------- ------------------- ----------------
380,929 404,422 55,152 11,572
54,384 57,738 7,882 1,649
354,884 386,511 50,321 15,477
41,999 45,824 18,793 19,438
24,766 24,766 24,848 23,976
409,481 445,973 11,732 12,898
19,141 23,184 6,701 4,957
57,893 62,762 11,031 4,698
11,834 11,117 13,154 11,402
-- 7,744 3,699 5,907
31,844 50,103 3,147 3,298
-- (21,564 ) (81,512) (85,177)
--------------- --------------- ------------------- ----------------
1,387,155 1,498,580 124,948 30,095
--------------- --------------- ------------------- ----------------
16,679,194 17,666,894 2,309,923 586,659
--------------- --------------- ------------------- ----------------
-- -- -- (158,643)
-- -- -- (17,212)
--------------- --------------- ------------------- ----------------
-- -- -- (175,855)
--------------- --------------- ------------------- ----------------
$ 16,679,194 $ 17,666,894 $ 2,309,923 $ 410,804
--------------- --------------- ------------------- ----------------
--------------- --------------- ------------------- ----------------
------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 17
................................................................................
<PAGE>
STATEMENT of CHANGES in NET ASSETS
................................................................................
- --------------------------------------------------------------------------------
FOR THE YEAR OR PERIOD ENDED OCTOBER 31, 1994
<TABLE>
<CAPTION>
DREYFUS/LAUREL
INSTITUTIONAL
PRIME
MONEY MARKET
FUND
<S> <C>
----------------------------------------------------------------
Net investment income $ 28,636,890
Net realized loss on securities during the year --
Net unrealized depreciation of investments during
the year --
--------------
Net increase in net assets resulting from
operations 28,636,890
Distributions to shareholders from net investment
income:
Class I Shares (28,636,890)
Class II Shares --
Class III Shares --
Net increase/(decrease) in net assets from Fund
share transactions (Note 5):
Class I Shares (142,299,818)
Class II Shares --
Class III Shares --
--------------
Net increase/(decrease) in net assets (142,299,818)
NET ASSETS:
Beginning of year 824,080,350
--------------
End of year (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
--------------
--------------
----------------------------------------------------------------
<FN>
* THE DREYFUS/LAUREL INSTITUTIONAL SHORT-TERM BOND FUND COMMENCED OPERATIONS ON
NOVEMBER 5, 1993.
</TABLE>
18 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
STATEMENT of CHANGES in NET ASSETS (continued)
................................................................................
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DREYFUS/LAUREL DREYFUS/LAUREL DREYFUS/LAUREL
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL DREYFUS/LAUREL
GOVERNMENT U.S. TREASURY U.S. TREASURY ONLY INSTITUTIONAL
MONEY MARKET MONEY MARKET MONEY MARKET SHORT-TERM BOND
FUND FUND FUND FUND*
<S> <C> <C> <C>
-------------------------------------------------------------------------------
$ 16,679,194 $ 17,666,894 $ 2,309,923 $ 586,659
-- -- -- (158,643)
-- -- -- (17,212)
--------------- --------------- ------------------- ---------------
16,679,194 17,666,894 2,309,923 410,804
(16,679,194) (17,666,894) -- (586,659)
-- -- (1,777,705) --
-- -- (533,484) --
63,317,245 86,124,993 -- 5,275,309
-- -- (34,620,667) --
-- -- 30,700,000 --
--------------- --------------- ------------------- ---------------
63,317,245 86,124,993 (3,921,933) 5,099,454
406,689,625 500,653,292 64,922,067 --
--------------- --------------- ------------------- ---------------
$470,006,870 $586,778,285 $ 61,000,134 $5,099,454
--------------- --------------- ------------------- ---------------
--------------- --------------- ------------------- ---------------
-------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 19
................................................................................
<PAGE>
STATEMENT of CHANGES in NET ASSETS
................................................................................
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 1993
<TABLE>
<CAPTION>
DREYFUS/LAUREL
INSTITUTIONAL
PRIME
MONEY MARKET
FUND
<S> <C>
--------------------------------------------------------------------
Net investment income $ 31,164,917
--------------
Net increase in net assets resulting from
operations 31,164,917
Distributions to shareholders from net investment
income (31,164,917)
Net increase/(decrease) in net assets from Fund
transactions (Note 5):
Class I Shares (126,241,187)
Class II Shares --
--------------
Net increase/(decrease) in net assets (126,241,187)
NET ASSETS:
Beginning of year 950,321,537
--------------
End of year $ 824,080,350
--------------
--------------
</TABLE>
20 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
STATEMENT of CHANGES in NET ASSETS (continued)
................................................................................
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DREYFUS/LAUREL DREYFUS/LAUREL DREYFUS/LAUREL
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
GOVERNMENT U.S. TREASURY U.S. TREASURY ONLY
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
<S> <C> <C>
----------------------------------------------------------
$ 12,276,030 $ 17,958,489 $ 1,679,864
-------------- --------------- -------------------
12,276,030 17,958,489 1,679,864
(12,276,030) (17,958,489) (1,679,864)
15,325,408 (165,724,915) --
-- -- 21,140,185
-------------- --------------- -------------------
15,325,408 (165,724,915) 21,140,185
391,364,217 666,378,207 43,781,882
-------------- --------------- -------------------
$406,689,625 $500,653,292 $64,922,067
-------------- --------------- -------------------
-------------- --------------- -------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 21
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL PRIME MONEY MARKET FUND
FOR A CLASS I SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
10/31/94 10/31/93
<S> <C> <C>
-------------------------------------------------------------------------
Net asset value, beginning of year $ 1.0000 $ 1.0000
--------- ---------
Income from investment operations:
Net investment income+++ 0.0349 0.0300
--------- ---------
Less distributions:
Distributions from net investment income (0.0349) (0.0300)
--------- ---------
Net asset value, end of year $ 1.0000 $ 1.0000
--------- ---------
Total return++ 3.67% 3.04%
--------- ---------
--------- ---------
Ratios to average net assets/Supplemental Data:
Net assets, end of year (in 000's) $681,781 $824,080
Ratio of operating expenses to average net assets 0.29% 0.27%
Ratio of net investment income to average net
assets 3.58% 2.99%
-------------------------------------------------------------------------
<FN>
* THE FUND COMMENCED OPERATIONS ON APRIL 15, 1988.
+ ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIODS INDICATED.
+++ FOR THE YEARS 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>
22 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
................................................................................
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
10/31/92 10/31/91 10/31/90 10/31/89 10/31/88*
<S> <C> <C> <C> <C>
-----------------------------------------------------------------
$ 1.0000 $ 1.0000 $ 1.0000 $1.0000 $ 1.0000
--------- --------- --------- -------- ----------
0.0401 0.0641 0.0810 0.0897 0.0405
--------- --------- --------- -------- ----------
(0.0401) (0.0641) (0.0810) (0.0897) (0.0405)
--------- --------- --------- -------- ----------
$ 1.0000 $ 1.0000 $ 1.0000 $1.0000 $ 1.0000
--------- --------- --------- -------- ----------
4.09% 6.60% 8.41% 9.35% 4.12%
--------- --------- --------- -------- ----------
--------- --------- --------- -------- ----------
$950,322 $943,636 $360,534 $97,366 $181,525
0.29% 0.30% 0.28% 0.30% 0.30%+
4.04% 6.22% 8.07% 8.74% 7.82%+
-----------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 23
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
FOR A CLASS I SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
10/31/94 10/31/93
<S> <C> <C>
-------------------------------------------------------------------------
Net asset value, beginning of year $ 1.0000 $ 1.0000
--------- ---------
Income from investment operations:
Net investment income+++ 0.0356 0.0293
--------- ---------
Less distributions:
Distributions from net investment income (0.0356) (0.0293)
--------- ---------
Net asset value, end of year $ 1.0000 $ 1.0000
--------- ---------
Total return++ 3.63% 2.97%
--------- ---------
--------- ---------
Ratios to average net assets/Supplemental Data:
Net assets, end of year (in 000's) $470,007 $406,690
Ratio of operating expenses to average net assets 0.30% 0.30%
Ratio of net investment income to average net
assets 3.60% 2.93%
-------------------------------------------------------------------------
<FN>
* THE FUND COMMENCED OPERATIONS ON OCTOBER 8, 1987.
+ ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIODS INDICATED.
+++ FOR THE YEARS 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 INVESTMENT ADVISER WAIVED ITS ADVISORY
FEE AMOUNTING TO $0.0001 PER SHARE.
</TABLE>
24 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
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%+
------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 25
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
FOR A CLASS I SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
10/31/94 10/31/93
<S> <C> <C>
----------------------------------------------------------------------------
Net asset value, beginning of year $ 1.0000 $ 1.0000
------------ ---------
Income from investment operations:
Net investment income+++ 0.0351** 0.0287
------------ ---------
Less distributions:
Distributions from net investment income (0.0351) (0.0287)
------------ ---------
Net asset value, end of year $ 1.0000 $ 1.0000
------------ ---------
Total return++ 3.55% 2.91%
------------ ---------
------------ ---------
Ratios to average net assets/ Supplemental Data:
Net assets, end of year (in 000's) $586,778 $500,653
Ratio of operating expenses to average net assets 0.30%*** 0.30%
Ratio of net investment income to average net
assets 3.55% 2.87%
----------------------------------------------------------------------------
<FN>
* THE FUND COMMENCED OPERATIONS ON DECEMBER 22, 1988.
** NET INVESTMENT INCOME BEFORE REIMBURSEMENT OF EXPENSES BY THE INVESTMENT
MANAGER FOR THE YEAR ENDED OCTOBER 31, 1994 WAS $0.0350 PER SHARE.
*** ANNUALIZED EXPENSE RATIO BEFORE REIMBURSEMENT OF EXPENSES BY INVESTMENT
MANAGER FOR THE YEAR ENDED OCTOBER 31, 1994 WAS 0.31%.
+ ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIODS INDICATED.
+++ FOR THE YEARS 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>
26 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
................................................................................
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
10/31/92 10/31/91 10/31/90 10/31/89*
<S> <C> <C> <C>
---------------------------------------------------
$ 1.0000 $ 1.0000 $ 1.0000 $1.0000
--------- --------- --------- ---------
0.0381 0.0620 0.0793 0.0761
--------- --------- --------- ---------
(0.0381) (0.0620) (0.0793) (0.0761)
--------- --------- --------- ---------
$ 1.0000 $ 1.0000 $ 1.0000 $1.0000
--------- --------- --------- ---------
3.88% 6.39% 8.23% 7.88%
--------- --------- --------- ---------
--------- --------- --------- ---------
$666,378 $452,333 $270,664 $80,135
0.30% 0.30% 0.30% 0.30%+
3.81% 6.04% 8.08% 8.83%+
---------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 27
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL U.S. TREASURY ONLY MONEY MARKET FUND
FOR A CLASS II SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
YEAR YEAR PERIOD
ENDED ENDED ENDED
10/31/94 10/31/93 10/31/92*
<S> <C> <C> <C>
------------------------------------------------------------------------------------
Net asset value, beginning of year $1.0000 $1.0000 $1.0000
----------- -------- ---------
Income from investment operations:
Net investment income+++ 0.0348** 0.0287 0.0251
----------- -------- ---------
Less distributions:
Distributions from net investment income (0.0348) (0.0287) (0.0251)
----------- -------- ---------
Net asset value, end of year $1.0000 $1.0000 $1.0000
----------- -------- ---------
Total return++ 3.53% 2.90% 2.54%
----------- -------- ---------
----------- -------- ---------
Ratios to average net assets/Supplemental Data:
Net assets, end of year (in 000's) $30,301 $64,922 $43,782
Ratio of operating expenses to average net assets 0.19%*** 0.20% 0.20%+
Ratio of net investment income to average net
assets 3.47% 2.86% 3.22%+
------------------------------------------------------------------------------------
<FN>
* THE FUND COMMENCED OPERATIONS ON JANUARY 22, 1992.
** NET INVESTMENT INCOME BEFORE REIMBURSEMENT OF EXPENSES BY THE 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%.
+ ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIODS INDICATED.
+++ 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.
</TABLE>
28 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL U.S. TREASURY ONLY MONEY MARKET FUND
FOR A CLASS III SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
10/31/94*
<S> <C>
-------------------------------------------------------------
Net asset value, beginning of period $1.0000
---------
Income from investment operations:
Net investment income 0.0193
---------
Less distributions:
Distributions from net investment income (0.0193)
---------
Net asset value, end of period $1.0000
---------
Total return++ 1.97%
---------
---------
Ratios to average net assets/Supplemental Data:
Net assets, end of period (in 000's) $30,700
Ratio of operating expenses to average net assets 0.17%+
Ratio of net investment income to average net
assets 3.50%+
-------------------------------------------------------------
<FN>
* THE FUND COMMENCED SELLING CLASS III SHARES ON MAY 12, 1994.
+ ANNUALIZED.
++ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIOD INDICATED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS. 29
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL SHORT-TERM BOND FUND
FOR A CLASS I SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
10/31/94*
<S> <C>
-------------------------------------------------------------
Net asset value, beginning of period $10.00
---------
Income from investment operations:
Net investment income+ 0.40
Net realized and unrealized loss on investments (0.12)
---------
Total from investment operations 0.28
Distributions:
Distributions from net investment income (0.40)
---------
Net asset value, end of period $ 9.88
---------
Total return++ 2.82%
---------
---------
Ratios to average net assets/Supplemental Data:
Net assets, end of period (in 000's) $5,099
Ratio of operating expenses to average net
assets+++ 0.21%**
Ratio of net investment income to average net
assets 4.07%**
Portfolio turnover rate 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 INDICATED.
+++ ANNUALIZED EXPENSE RATIO BEFORE REIMBURSEMENT OF EXPENSES BY THE INVESTMENT
ADVISER WAS 0.80% FOR THE PERIOD ENDED OCTOBER 31, 1994.
</TABLE>
30 SEE NOTES TO FINANCIAL STATEMENTS.
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS
................................................................................
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 compose The Dreyfus Family of Funds. The Investment
Company is a series mutual fund with 19 separate investment portfolios. These
financial statements report on five funds: 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,
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 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 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, the Dreyfus/Laurel Institutional U.S. Treasury Only Money
Market Fund and the Dreyfus/Laurel Institutional Short-Term Bond Fund
commenced operations on April 15, 1988, October 8, 1987, December 22, 1988,
January 22, 1992 and November 5, 1993, respectively. Each Fund offers three
classes of shares: Class I, Class II and Class III Shares. 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
matters 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.
(A) PORTFOLIO VALUATION
With respect to the Dreyfus/Laurel Institutional Short-Term Bond Fund
investments in securities traded on a national securities exchange are valued
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 securities 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 Directors. Investments in U.S.
government securities (other than short-term securities) are valued at the
most recent quoted bid price in the over-the-counter market. Short-term
investments with maturities of 60 days or less from the valuation day are
valued on the basis of amortized cost. Amortized cost valuation involves
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 instrument.
31
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (continued)
................................................................................
(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 custodian, takes
possession of an underlying debt obligation, subject to an obligation of the
seller to repurchase, and the Fund to resell the obligation at an agreed-upon
price and time, thereby determining the yield during 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 holding 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 collateral 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 decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. Each Fund's investment manager, acting under the supervision of the
Board of Directors, reviews the value of the collateral and the
creditworthiness of those banks and dealers with which a 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 securities
transactions 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.
(D) EXPENSE ALLOCATION
Expenses of a Fund 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 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 income
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 accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by a Fund, timing
differences and differing characterization of distributions made by a Fund as
a whole.
32
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (continued)
................................................................................
(F) FEDERAL INCOME TAXES
Each 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
Effective as of October 17, 1994, the Investment Company's investment
management agreement with Mellon Bank, N.A. ("Mellon Bank"), a wholly owned
subsidiary of Mellon Bank Corporation, was transferred to The Dreyfus
Corporation (the "Manager"), a wholly owned subsidiary of 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 each Fund in accordance with its investment objective, policies
and limitations. For these services, 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, the
Dreyfus/Laurel Institutional U.S. Treasury Only Money Market Fund and the
Dreyfus/Laurel Institutional Short-Term Bond Fund each pay a fee to the
manager, calculated 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,
respectively. Out of its fee, the Manager pays all of the expenses of each
Fund except brokerage, taxes, interest, shareholder servicing 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).
For the period from April 4, 1994 to October 16, 1994, Mellon Bank served as
the Investment Company's investment manager pursuant to the investment
management agreement described above. Prior to April 4, 1994, the Investment
Company had individual contracts with Mellon Bank to provide custody,
accounting, and transfer agency services to each Fund. Effective April 4,
1994, custody, accounting, and transfer agency services are covered by the
investment management agreement described above.
Prior to April 4, 1994, the Investment Company had an investment advisory
agreement under which the Fund paid Mellon Bank an annual fee of 0.20% of the
value of the Fund's average daily net assets for investment advisory services.
For the period from November 1, 1993 through April 3, 1994, Mellon Bank, as
investment adviser, voluntarily agreed to reimburse expenses of the
Dreyfus/Laurel Institutional U.S. Treasury Money Market Fund and the
Dreyfus/Laurel Institutional U.S. Treasury Only Money Market Fund in the
amounts of $21,564 and $81,512, as investment adviser, respectively. For the
33
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (continued)
................................................................................
period from November 5, 1993 through April 3, 1994 Mellon Bank voluntarily
agreed to reimburse expenses of the Dreyfus/Laurel Institutional Short-Term
Bond Fund in the amount of $85,177.
Prior to September 23, 1994, Frank Russell Investment Management Company (the
"Administrator") served as each Funds' administrator and provided, pursuant to
an administration agreement, various administrative and corporate secretarial
services to each Funds. For the period from April 4, 1994 to September 23,
1994, Mellon Bank, as investment manager, paid the Administrator's fee out of
the management fee described above. Prior to April 4, 1994, the Investment
Company paid the Administrator the following fees for the services supplied by
the Administrator pursuant to the administration agreement: (i) an annual fee
of $500,000; (ii) an annual asset-based fee, payable monthly on a pro rata
basis, based on the following percentages of the aggregate average daily net
assets of the Investment Company: up to and including $10 billion -- 0.01%,
over $10 billion -- 0.005%; and (iii) all start-up costs (including
out-of-pocket, blue sky registration and personnel costs) for new portfolios
(prior to and for 6 months following commencement of operations).
No officer or employee of Premier (or of any parent, subsidiary or affiliate
thereof) receives any compensation from The Dreyfus/Laurel Funds, Inc., 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 or Director/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 or Director/ Trustee of The
Dreyfus/Laurel Funds. The Dreyfus/Laurel Funds pay each Director/Trustee who
is not an officer or employee of Premier (or any parent, subsidiary or
affiliate thereof) $27,000 per annum, $1,000 for each Board meeting attended
and $750 for each Audit Committee meeting attended, and reimburses each
Director/Trustee for travel and out-of-pocket expenses. Prior to April 4,
1994, the Investment Company paid each Director $15,000 per annum plus
reimbursement for travel and out-of-pocket expenses.
Prior to April 4, 1994, the Investment Company had a contract with Russell
Fund Distributors, Inc. to serve as distributor of its shares. Effective April
4, 1994 through October 16, 1994, Funds Distributor, Inc. served as
distributor of the Investment Company's shares. Effective as of October 17,
1994, 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.
3. SHAREHOLDER SERVICING PLAN
On April 4, 1994, each Fund 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
34
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (continued)
................................................................................
net assets attributable to its Class I and Class II shares, respectively,
annually to compensate Premier, certain banks, brokers, dealers or other
financial institutions for shareholder services. Class III shares are not
subject to the Plan. Prior to April 4, 1994, each Fund had a distribution and
shareholder services plan under which the Fund was authorized to spend
annually up to 0.35% of its average daily net assets on distribution and
shareholder servicing expenses.
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 interest 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
investments and U.S. government securities, for the period ended October 31,
1994 were $7,958,905 and $6,466,204, 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 period ended October 31, 1994 were $5,782,611 and $4,282,813,
respectively.
At October 31, 1994, The Dreyfus/Laurel Institutional Short-Term Bond Fund had
aggregate gross unrealized depreciation for all securities in which there was
an excess of tax cost over value of $17,212. There was no aggregate gross
unrealized appreciation for all securities in which there was an excess of
value over tax cost.
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 years or period indicated.
Because 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 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.
35
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (continued)
................................................................................
-------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL PRIME MONEY MARKET FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1994+ OCTOBER 31, 1993
<S> <C> <C>
--------------------------------------------------------------------------------
CLASS I SHARES:
SOLD $ 6,346,280,548 $ 7,059,606,006
ISSUED AS REINVESTMENT OF DIVIDENDS 9,455,788 12,603,078
REDEEMED (6,498,036,154) (7,198,450,271)
------------------- -----------------
NET DECREASE $ (142,299,818) $ (126,241,187)
------------------- -----------------
------------------- -----------------
--------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL GOVERNMENT MONEY MARKET FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1994+ OCTOBER 31, 1993
<S> <C> <C>
--------------------------------------------------------------------------------
CLASS I SHARES:
SOLD $ 2,621,818,115 $ 2,449,481,559
ISSUED AS REINVESTMENT OF DIVIDENDS 2,072,225 1,144,061
REDEEMED (2,560,573,095) (2,435,300,212)
------------------- -----------------
NET INCREASE $ 63,317,245 $ 15,325,408
------------------- -----------------
------------------- -----------------
--------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL U.S. TREASURY MONEY MARKET FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1994+ OCTOBER 31, 1993
<S> <C> <C>
--------------------------------------------------------------------------------
CLASS I SHARES:
SOLD $ 3,029,275,330 $ 3,219,306,510
ISSUED AS REINVESTMENT OF DIVIDENDS 2,102,357 1,875,568
REDEEMED (2,945,252,694) (3,386,906,993)
------------------- -----------------
NET INCREASE/(DECREASE) $ 86,124,993 $ (165,724,915)
------------------- -----------------
------------------- -----------------
--------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL U.S. TREASURY ONLY MARKET FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1994+ OCTOBER 31, 1993
<S> <C> <C>
--------------------------------------------------------------------------------
CLASS II SHARES:
SOLD $ 112,306,805 $ 121,609,303
ISSUED AS REINVESTMENT OF DIVIDENDS 525,692 722,547
REDEEMED (147,453,164) (101,191,665)
------------------- -----------------
NET INCREASE/(DECREASE) $ (34,620,667) $ 21,140,185
------------------- -----------------
------------------- -----------------
--------------------------------------------------------------------------------
</TABLE>
36
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (continued)
................................................................................
- --------------------------------------------------------------------------------
DREYFUS/LAUREL
INSTITUTIONAL U.S. TREASURY ONLY MONEY MARKET FUND
<TABLE>
<CAPTION>
PERIOD ENDED
OCTOBER 31, 1994**
<S> <C> <C>
--------------------------------------------------------------------------------
CLASS III SHARES:
Sold $ 35,035,694
Issued as reinvestment of dividends 506,140
Redeemed (4,841,834)
-------------------
Net increase $ 30,700,000
-------------------
-------------------
--------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
DREYFUS/LAUREL INSTITUTIONAL SHORT-TERM BOND FUND
(UNAUDITED)
<TABLE>
<CAPTION>
PERIOD ENDED
OCTOBER 31, 1994*+
SHARES AMOUNT
<S> <C> <C>
---------------------------------------------------------------------
CLASS I SHARES:
Sold 3,988,741 $ 39,701,901
Issued as reinvestment of dividends 58,421 580,265
Redeemed (3,530,863) (35,006,857)
------------ ------------
Net increase 516,299 $ 5,275,309
------------ ------------
------------ ------------
---------------------------------------------------------------------
<FN>
* THE DREYFUS/LAUREL INSTITUTIONAL SHORT-TERM BOND FUND COMMENCED OPERATIONS ON
NOVEMBER 5, 1993.
** THE DREYFUS/LAUREL INSTITUTIONAL U.S. TREASURY ONLY MONEY MARKET FUND
COMMENCED SELLING CLASS III SHARES ON MAY 12, 1994.
+ 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.
</TABLE>
6. ORGANIZATION COSTS
Each Fund paid all costs in connection with the Fund's organization including
the fees and expenses of registering and qualifying the Fund's shares for
distribution under Federal and state securities regulations. Prior to April 4,
1994, all such costs were being amortized on the straight-line method over a
period of five years. On April 4, 1994, the remaining unamortized organization
costs were reimbursed by Mellon Bank as the investment adviser.
37
................................................................................
<PAGE>
NOTES to FINANCIAL STATEMENTS (continued)
................................................................................
7. CAPITAL LOSS CARRYFORWARD
At October 31, 1994, the Dreyfus/Laurel Institutional Short-Term Bond
Portfolio had available for federal income tax purposes an unused capital loss
carryforward of $158,643, to offset future gains expiring in 2002.
38
................................................................................
<PAGE>
INDEPENDENT AUDITORS' REPORT
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[LOGO]
The Board of Directors and Shareholders
The Dreyfus/Laurel Funds, Inc.
We have audited the accompanying statements of assets and liabilities 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, the Dreyfus/Laurel Institutional U.S.
Treasury Only Money Market Fund and the Dreyfus/Laurel Institutional
Short-Term Bond Fund of The Dreyfus/ Laurel Funds, Inc., including the
portfolios of investments, as of October 31, 1994, and the related statements
of operations for the period then ended and the statements of changes in net
assets and the financial highlights for each of the periods indicated herein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 1994 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
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, the
Dreyfus/Laurel Institutional U.S. Treasury Only Money Market Fund and the
Dreyfus/Laurel Institutional Short-Term Bond Fund of The Dreyfus/Laurel Funds,
Inc. as of October 31, 1994, the results of their operations for the period
then ended and the changes in their net assets and the financial highlights
for each of the periods indicated herein, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Pittsburgh, Pennsylvania
December 9, 1994
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