<PAGE>
THE DREYFUS
DREYFUS DISCIPLINED STOCK FUND
EDGAR DESCRIPTIONS
DESCRIPTION OF ART WORK ON REPORT COVER
Small box above fund name showing a lion's face.
OCTOBER 31, 1994
<PAGE>
DEAR SHAREHOLDER,
We are pleased to provide you with a review of the financial markets
environment for the past year as well as performance and portfolio activity
information for the Dreyfus Disciplined Stock Fund for the year 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 Stock Fund is now known, and publicly listed, as the Dreyfus
Disciplined Stock Fund. Please be assured that the new name does not affect
the value of your account or the investment objective or strategy of your
Fund.
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 the 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 Disciplined Stock 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.......................... 7
Statement of Assets and Liabilities............... 15
Statement of Operations........................... 16
Statement of Changes in Net Assets................ 17
Financial Highlights.............................. 18
Notes to Financial Statements..................... 22
Independent Auditors' Report...................... 28
Tax Information................................... 29
</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. 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 ended October 31, 1994. On
November 15, 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 3.50%. Inflation is still a risk, but our 1995 outlook is still under
3.50%. We expect the latest Fed action to slow the economy slightly in 1995
to 3.00%. 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 3.70% in the first six
months of 1994, a 3.10% decline in the public sector masked a soaring 5.20%
advance in the private economy.
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. Second, 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 Disciplined Stock Fund seeks investment returns consistently
superior to the Standard and Poor's 500 Composite Stock Price Index (the "S&P
500 Index"). The Fund's manager attempts to achieve this performance by
investing in a broadly diversified list of equity securities generated by the
application of quantitative security selection and risk control disciplines
as well as fundamental techniques.
For the year ended October 31, 1994, the total return for Class R Shares of
the Fund was 2.82% versus a total return for the S&P 500 Index for the same
period of 3.86%. The aggregate total return for Investor Class Shares of the
Fund for the period from April 4, 1994 (the inception date for the Investor
Class) to October 31, 1994 was 4.62% versus a total return for the S&P 500
Index for the same period from April 30, 1994 to October 31, 1994 of 6.32%.
Class R Shares underperformed the S&P 500 Index for the period for several
reasons. First, the Fund's exposure to stocks of smaller and medium-sized
companies hurt performance relative to the S&P 500 Index in the second
quarter of 1994. This situation was reversed somewhat in the third quarter as
smaller stocks began to outperform the larger issues which comprise the
Index. Also during this reporting period, several large capitalization
cyclical stocks which are part of the S&P 500 Index performed particularly
well but were not held in the Fund's Portfolio. During the year ended October
31, 1994, several of the quantitative models used in the Fund's investment
process, particularly those focusing on earnings growth, did not add to the
Fund's overall total return.
4
................................................................................
<PAGE>
PERFORMANCE SUMMARY
................................................................................
- -------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND (unaudited)
- -------------------------------------------------------------------------------
<TABLE>
CHANGE IN VALUE OF $10,000 INVESTED FROM APRIL 6, 1994 -- OCTOBER 31, 1994+
<CAPTION>
GROWTH OF $10,000
INVESTMENT IN THE
GROWTH OF $10,000 STANDARD & POOR'S 500
INVESTED IN INVESTOR SHARES COMPOSITE STOCK PRICE
MONTH ENDED OF THE FUND INDEX
<S> <C> <C>
3/94 -- $10,000
4/6/94 $10,000 --
4/94 $10,034 $10,128
5/94 $10,070 $10,293
6/94 $10,104 $10,041
9/94 $10,298 $10,531
10/94 $10,462 $10,767
</TABLE>
AGGREGATE ANNUAL TOTAL RETURN -- INVESTOR SHARES
- -------------------------------------------------------------------------------
Inception (4/6/94) through 10/31/94 4.62%
- -------------------------------------------------------------------------------
+ Hypothetical illustration of $10,000 invested in Investor Shares at inception
(April 6, 1994) and reinvestment of dividends and capital gains at net asset
value through October 31, 1994.
The Standard & Poor's 500 Composite Stock Price Index is an index composed of
500 widely held common stocks listed on the New York Stock Exchange, American
Stock Exchange and over-the-counter market. Because the index is not a
managed portfolio, there are no advisory fees or internal management
expenses reflected in the index's performance.
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 common stock 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.
5
................................................................................
<PAGE>
PERFORMANCE SUMMARY (continued)
................................................................................
- -------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND (unaudited)
- -------------------------------------------------------------------------------
<TABLE>
CHANGE IN VALUE OF $10,000 INVESTED FROM DECEMBER 31, 1987 -- OCTOBER 31, 1994+
<CAPTION>
GROWTH OF $10,000
INVESTMENT IN THE
GROWTH OF $10,000 STANDARD & POOR'S 500
INVESTED IN CLASS R SHARES COMPOSITE STOCK PRICE
MONTH ENDED OF THE FUND INDEX
<S> <C> <C>
3/93 $22,506 $22,221
6/93 $22,731 $22,732
9/93 $23,358 $23,567
12/93 $23,965 $23,643
3/94 $23,151 $24,072
6/94 $22,976 $23,700
9/94 $24,157 $24,854
10/94 $24,541 $24,247
</TABLE>
AGGREGATE ANNUAL TOTAL RETURN -- CLASS R SHARES (FORMERLY TRUST SHARES)
- -------------------------------------------------------------------------------
Year ended 10/31/94 2.82%
Five Years Ended 10/31/94 11.75%
Inception (12/31/87) through 10/31/94 14.04%
- -------------------------------------------------------------------------------
+ Hypothetical illustration of $10,000 invested in Class R Shares (formerly
Trust Shares) at inception (December 31, 1987) and reinvestment of
dividends and capital gains at net asset value through October 31, 1994.
The Standard & Poor's 500 Composite Stock Price Index is an index composed of
500 widely held common stocks listed on the New York Stock Exchange, American
Stock Exchange and over-the-counter market. Because the index is not a
managed portfolio, there are no advisory fees or internal management
expenses reflected in the index's performance.
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 common stock 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.
6
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS
.........................................................................
- -------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND OCTOBER 31, 1994
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS -- 96.9%
OIL & GAS -- 9.7%
60,800 Amoco Corporation $ 3,853,200
41,800 El Paso Natural Gas 1,301,025
18,100 Enron Corporation 585,988
114,200 EXXON Corporation 7,180,325
7,500 MAPCO, Inc. 409,688
22,500 Mobil Corporation 1,935,000
46,800 Phillips Petroleum Company 1,725,750
38,200 Pogo Producing Company 854,725
34,500 Royal Dutch Petroleum, N.V. 4,019,250
30,100 Sonat, Inc. 978,250
45,000 Ultramar Corporation 1,164,375
55,600 USX-Marathon Group 1,042,500
--------------
25,050,076
--------------
TELECOMMUNICATIONS -- 8.9%
126,000 AT&T Corporation 6,930,000
42,000 Bell Atlantic Corporation 2,199,750
42,700 BellSouth Corporation 2,273,775
46,200 ECI Telecom, Ltd. 895,125
17,000 HBO & Company 552,500
79,900 MCI Communications Corporation 1,837,700
51,500 PacificTelesis Group 1,628,688
66,400 Southwestern Bell Corporation 2,780,500
61,500 Sprint Corporation 2,006,438
10,800 Telefonos De Mexico S.A., ADR 595,350
32,725 US West, Inc. 1,231,278
--------------
22,931,104
--------------
ELECTRONICS -- 8.3%
12,600 Avnet, Inc. 472,500
135,400 General Electric Company 6,617,675
35,300 Corning, Inc. 1,200,200
40,200 General Instruments Corporation+ 1,346,700
20,900 Hewlett Packard Company 2,042,975
43,600 Intel Corporation 2,708,650
17,900 LSI Logic Corporation+ 760,750
</TABLE>
See Notes to Financial Statements. 7
.........................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
..............................................................................
- ------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND OCTOBER 31, 1994
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS (continued)
ELECTRONICS (CONTINUED)
55,200 Motorola, Inc. $ 3,249,900
16,900 Raychem Corporation 625,300
12,000 Raytheon Company 765,000
22,900 Thermo Electron Corporation+ 1,044,812
14,400 Tyco Laboratories, Inc. 694,800
--------------
21,529,262
--------------
DRUGS & COSMETICS -- 7.4%
19,700 Colgate Palmolive Company 1,201,700
25,500 Columbia/HCA Healthcare Corporation 1,061,437
15,700 Elan, PLC, ADR+ 578,938
11,500 Forest Laboratories, Inc. 529,000
21,800 Gillette Company 1,621,375
103,400 Merck & Company, Inc. 3,696,550
24,000 Mylan Labs, Inc. 672,000
32,700 Pfizer, Inc. 2,423,887
69,600 Procter & Gamble Company 4,350,000
28,900 Schering-Plough Corporation 2,059,125
12,300 Warner Lambert Company 937,875
--------------
19,131,887
--------------
MERCHANDISING -- 7.2%
53,000 Albertsons, Inc. 1,590,000
15,900 American Stores Company 431,288
15,400 Dayton-Hudson Corporation 1,193,500
37,800 Federated Department Stores, Inc.+ 784,350
33,500 Gap, Inc. 1,130,625
59,400 Limited (The), Inc. 1,091,475
55,400 May Department Stores Company 2,084,425
19,800 Newell Company 415,800
27,400 Nordstrom, Inc. 1,349,450
40,600 Penney ( J.C.) Company, Inc. 2,055,375
18,400 Safeway, Inc.+ 542,800
43,500 Sears Roebuck & Company 2,153,250
</TABLE>
8 See Notes to Financial Statements.
..............................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
..............................................................................
- ------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND OCTOBER 31, 1994
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS (continued)
MERCHANDISING (CONTINUED)
164,700 Wal-Mart Stores, Inc. $ 3,870,450
--------------
18,692,788
--------------
BANKING -- 5.9%
42,180 Banc One Corporation 1,217,947
62,000 Bank Of New York, Inc. 1,968,500
44,100 BankAmerica Corporation 1,918,350
57,200 Chase Manhattan Corporation 2,059,200
39,500 Citicorp 1,886,125
38,500 CoreStates Financial Corporation 996,187
12,600 First Bank System, Inc. 469,350
10,900 First Interstate BanCorporation 872,000
37,500 First Union Corporation 1,687,500
33,200 MBNA Corporation 888,100
36,500 PNC Financial Corporation 857,750
13,400 Standard Federal Bank 355,100
--------------
15,176,109
--------------
FOODS -- 5.7%
86,680 Archer Daniels Midland 2,481,215
16,100 Campbell Soup Company 664,125
95,800 Coca-Cola Company 4,813,950
33,800 ConAgra, Inc. 1,052,025
35,000 IBP, Inc. 1,194,375
67,900 PepsiCo, Inc. 2,376,500
35,400 Tyson Foods, Inc., Class A 823,050
11,600 Unilever, N.V. 1,377,500
--------------
14,782,740
--------------
OFFICE EQUIPMENT -- 5.0%
29,100 Adaptec, Inc.+ 676,575
22,800 Computer Associates International, Inc. 1,131,450
11,700 Compuware Corporation+ 457,763
14,800 Dell Computer+ 658,600
42,300 International Business Machines 3,151,350
33,200 Microsoft Corporation 2,091,600
</TABLE>
See Notes to Financial Statements. 9
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
.............................................................................
- -----------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND OCTOBER 31, 1994
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS (continued)
OFFICE EQUIPMENT (CONTINUED)
20,300 Reynolds & Reynolds Company, Class A $ 504,963
20,100 Stratus Computer, Inc.+ 748,725
29,600 Sun Microsystems, Inc.+ 969,400
45,300 Tandem Computers, Inc.+ 798,413
16,200 Xerox Corporation 1,660,500
--------------
12,849,339
--------------
CHEMICALS & FERTILIZERS -- 4.2%
70,700 du Pont (E.I.) de Nemours & Company 4,215,487
21,000 Eastman Chemical Corporation 1,134,000
23,200 Engelhard Corporation 545,200
33,900 Lyondell Petrochemical Company 928,012
20,200 Monsanto Company 1,537,725
55,300 Praxair, Inc. 1,278,813
40,400 WMX Technologies, Inc. 1,186,750
--------------
10,825,987
--------------
MEDICAL SERVICES & SUPPLIES -- 4.1%
76,800 Abbott Laboratories 2,380,800
10,000 Amgen, Inc.+ 557,500
7,600 Genentech, Inc.+ 385,700
22,000 Healthtrust, Inc. (The Hospital Company)+ 770,000
56,600 Johnson & Johnson 3,091,775
16,700 Medtronic, Inc. 870,488
40,400 National Medical Enterprises, Inc.+ 585,800
20,100 United Healthcare Corporation 1,060,275
21,200 Value Health, Inc.+ 821,500
--------------
10,523,838
--------------
PUBLIC UTILITY -- 3.6%
36,000 CMS Energy Corporation 828,000
46,600 Consolidated Edison Company, Inc. 1,159,175
33,300 DQE, Inc. 1,007,325
65,400 Entergy Corporation 1,528,725
24,400 FPL Group, Inc. 808,250
64,800 Peco Energy Company 1,660,500
</TABLE>
10 See Notes to Financial Statements.
................................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
..............................................................................
- ------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND OCTOBER 31, 1994
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS (continued)
PUBLIC UTILITY (CONTINUED)
121,500 Southern Company $ 2,399,625
--------------
9,391,600
--------------
AUTOMOTIVE -- 3.3%
58,700 Chrysler Corporation 2,861,625
17,300 Echlin, Inc. 531,975
45,800 Ford Motor Company 1,351,100
36,200 General Motors Corporation 1,429,900
22,100 General Motors Corporation, Class E 809,412
28,600 General Motors Corporation, Class H 1,029,600
16,200 Superior Industries International, Inc. 477,900
-------------
8,491,512
--------------
BUILDING & CONSTRUCTION -- 2.5%
23,500 Georgia Pacific Corporation 1,736,062
29,100 Louisiana-Pacific Corporation 891,187
46,600 PPG Industries, Inc. 1,898,950
24,000 Sherwin Williams Company 783,000
28,500 Weyerhaeuser Company 1,118,625
--------------
6,427,824
--------------
FINANCE -- 2.5%
31,100 Dean Witter, Discover & Company 1,201,237
22,300 Federal National Mortgage Association 1,694,800
23,384 KeyCorp 669,367
27,900 PaineWebber Group, Inc. 425,475
24,400 Reuters Holdings, PLC, ADR 1,149,850
36,200 Travelers, Inc. 1,257,950
--------------
6,398,679
--------------
INSURANCE -- 2.3%
44,600 American General Corporation 1,226,500
10,600 American International Group, Inc. 992,425
12,800 Chubb Corporation (The) 894,400
23,100 Old Republic International Corporation 470,662
20,100 Providian Corporation 638,175
</TABLE>
See Notes to Financial Statements. 11
.............................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
..............................................................................
- ------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND OCTOBER 31, 1994
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS (continued)
INSURANCE (CONTINUED)
20,600 SAFECO Corporation $ 1,032,575
17,000 St. Paul Companies 741,625
--------------
5,996,362
--------------
PAPER & PRINTING -- 2.1%
25,300 Gannett Company, Inc. 1,214,400
30,700 International Paper Company 2,287,150
24,600 News Corporation, Ltd., ADR 1,202,325
13,400 Tribune Company 705,175
--------------
5,409,050
--------------
TOBACCO & VENDING -- 2.0%
83,000 Philip Morris Companies, Inc. 5,083,750
--------------
MULTI-INDUSTRY -- 1.8%
73,200 Horsham Corporation, Quebec, Subvoting 1,134,600
13,100 ITT Corporation 1,156,075
26,500 Textron, Inc. 1,351,500
14,200 United Technologies 894,600
--------------
4,536,775
--------------
AEROSPACE & AVIATION -- 1.6%
14,800 Lockheed Corporation 1,065,600
12,500 McDonnell Douglas Corporation 1,762,500
19,000 Northrop Corporation 833,625
13,000 Sunstrand Corporation 591,500
--------------
4,253,225
--------------
MACHINERY & HEAVY EQUIPMENT -- 1.6%
26,500 Caterpillar, Inc. 1,583,375
13,500 Deere & Company 968,625
11,700 Lam Research Corporation+ 526,500
12,500 Magna International, Class A 443,750
18,100 Varity Corporation 692,325
--------------
4,214,575
--------------
</TABLE>
12 See Notes to Financial Statements.
..............................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
..............................................................................
- ------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND OCTOBER 31, 1994
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS (continued)
HOTEL & RESTAURANT -- 1.4%
57,600 Brinker International, Inc. $ 1,332,000
38,200 Morrison Restaurants, Inc. 1,117,350
22,300 Outback Steakhouse, Inc. 688,512
24,000 Sbarro, Inc. 597,000
--------------
3,734,862
--------------
METALS & MINING -- 1.4%
6,200 Aluminum Company Of America 528,550
49,900 American Barrick Resources Corporation 1,191,363
26,800 Inland Steel Industries, Inc.+ 958,100
13,600 Phelps Dodge Corporation 834,700
--------------
3,512,713
--------------
BROADCASTING & ENTERTAINMENT -- 1.3%
24,100 Acclaim Entertainment, Inc.+ 418,737
21,600 Capital Cities ABC, Inc. 1,795,500
9,065 CBS, Inc. 542,767
15,000 PolyGram, N.V. 660,000
--------------
3,417,004
--------------
RAILROADS -- 1.1%
13,500 Burlington Northern, Inc. 673,313
32,400 Conrail, Inc. 1,761,750
16,700 Illinois Central Corporation 536,488
--------------
2,971,551
--------------
BEVERAGES -- 0.8%
15,900 Anheuser-Busch Companies 806,925
36,800 Seagram Company, Ltd. 1,136,200
--------------
1,943,125
--------------
AIR TRANSPORT -- 0.5%
14,600 AMR Corporation+ 804,825
9,400 Federal Express Corporation+ 571,050
--------------
1,375,875
--------------
</TABLE>
See Notes to Financial Statements. 13
..............................................................................
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED)
..............................................................................
- ------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND OCTOBER 31, 1994
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
<C> <S> <C>
COMMON STOCKS (continued)
TIRE & RUBBER -- 0.4%
32,100 Goodyear Tire & Rubber Company $ 1,123,500
------------
TRUCKING -- 0.3%
15,800 Consolidated Freightways, Inc. 353,525
18,300 Ryder System 430,050
------------
783,575
------------
TOTAL COMMON STOCKS
(Cost $245,156,990) 250,558,687
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<C> <S> <C>
REPURCHASE AGREEMENT -- 2.3%
(Cost $5,927,975)
$ 5,927,975 Agreement with Barclays de Zoete Wedd, 4.780%
dated 10/31/94, to be repurchased at
$5,928,762 on 11/1/94, collateralized by
$5,885,000 U.S. Treasury Notes, 5.875% due
5/15/95 5,927,975
------------
TOTAL INVESTMENTS
(Cost $251,084,965*) 99.2% 256,486,662
OTHER ASSETS AND LIABILITIES (NET) 0.8 2,162,648
----- ------------
NET ASSETS 100.0% $258,649,310
===== ============
- --------------------------------------------------------------------------------
<FN>
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
</TABLE>
14 See Notes to Financial Statements.
................................................................................
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
................................................................................
- --------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND OCTOBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (Cost $251,084,965) (Note 1)
See accompanying schedule $256,486,662
Cash 15,010
Receivable for investment securities sold 7,544,090
Receivable for Fund shares sold 3,096,231
Dividends and interest receivable 398,257
Receivable from investment adviser (Note 2) 56,646
------------
TOTAL ASSETS 267,596,896
============
LIABILITIES:
Payable for investment securities purchased $8,373,143
Payable for Fund shares redeemed 340,952
Investment management fee payable (Note 2) 206,120
Accrued Directors' fees and expenses (Note 2) 26,719
Distribution fee payable (Note 3) 652
----------
TOTAL LIABILITIES 8,947,586
------------
NET ASSETS $258,649,310
============
NET ASSETS consist of:
Undistributed net investment income $ 1,030,549
Accumulated net realized gain on investments sold 6,361,982
Unrealized appreciation of investments 5,401,697
Par value 13,949
Paid-in capital in excess of par value 245,841,133
------------
TOTAL NET ASSETS $258,649,310
============
NET ASSET VALUE
INVESTOR SHARES:
Net asset value, offering and redemption price per
share ($19,579,827 / 1,056,307 shares of capital
stock outstanding) $ 18.54
============
CLASS R SHARES:
Net asset value, offering and redemption price per
share ($239,069,483 / 12,892,635 shares of
capital stock outstanding) $ 18.54
============
</TABLE>
See Notes to Financial Statements. 15
..............................................................................
<PAGE>
STATEMENT OF OPERATIONS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 1994
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 4,817,679
Interest 381,322
-----------
TOTAL INVESTMENT INCOME 5,199,001
-----------
EXPENSES:
Investment management fee (Note 2) $1,145,288
Investment advisory fee (Note 2) 747,134
Custodian fees (Note 2) 40,029
Transfer agent fees (Note 2) 35,719
Directors' fees and expenses (Note 2) 29,319
Administration fee (Note 2) 23,663
Distribution fee (Note 3) 10,732
Legal and audit fees 9,381
Other 19,728
Expenses reimbursed by investment adviser
(Note 2) (131,810)
----------
TOTAL EXPENSES 1,929,183
-----------
NET INVESTMENT INCOME 3,269,818
-----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS (Notes 1 and 4):
Net realized gain on investments during
the year 7,508,638
-----------
Net change in unrealized depreciation of
investments during the year (2,678,128)
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 4,830,510
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 8,100,328
===========
</TABLE>
16 See Notes to Financial Statements.
...............................................................................
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
................................................................................
- --------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
10/31/94 10/31/93
<S> <C> <C>
Net investment income $ 3,269,818 $ 1,159,443
Net realized gain on investments sold during
the year 7,508,638 3,766,992
Net unrealized appreciation/(depreciation) on
investments during the year (2,678,128) 5,205,042
------------ -----------
Net increase in net assets resulting from
operations 8,100,328 10,131,477
Distributions to shareholders from net
investment income:
Investor Shares (31,895) --
------------ -----------
Class R Shares (2,567,476) (1,004,702)
Distribution to shareholders from net realized
gain on investments:
Class R Shares (4,454,514) (2,893,531)
Net increase in net assets from Fund share
transactions (Note 5):
Investor Shares 19,054,127 --
Class R Shares 145,594,026 42,979,499
------------ -----------
Net increase in net assets 165,694,596 49,212,743
NET ASSETS:
Beginning of year 92,954,714 43,741,971
------------- -----------
End of year (including undistributed net
investment income of $1,030,549 and $360,102,
respectively) $258,649,310 $92,954,714
============ ===========
</TABLE>
See Notes to Financial Statements. 17
................................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
.............................................................................
- -----------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND
- -----------------------------------------------------------------------------
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD
ENDED
10/31/94*
<S> <C>
- -----------------------------------------------------------------------------
Net asset value, beginning of period $ 17.86
--------
Income from investment operations:
Net investment income 0.16
Net realized and unrealized gain on investments 0.66
--------
Total from investment operations 0.82
--------
Less distributions:
Distributions from net investment income (0.14)
--------
Net asset value, end of period $ 18.54
========
Total return++ 4.62%
========
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $19,580
Ratio of operating expenses to average net assets 1.15%**
Ratio of net investment income to average net assets 1.29%**
Portfolio turnover rate 106%
- -----------------------------------------------------------------------------
<FN>
* The Fund commenced selling Investor Shares on April 6, 1994.
** Annualized.
++ Total return represents aggregate total return for the period indicated.
</TABLE>
18 See Notes to Financial Statements.
...............................................................................
<PAGE>
[This Page Intentionally Left Blank]
19
..............................................................................
<PAGE>
FINANCIAL HIGHLIGHTS
..............................................................................
- ------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND
- ------------------------------------------------------------------------------
FOR A CLASS R 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 $ 18.69 $ 17.21
---------- --------
Income from investment operations:
Net investment income 0.26# 0.30
Net realized and unrealized gain on investments 0.25 2.56
--------- --------
Total from investment operations 0.51 2.86
--------- --------
Less distributions:
Dividends from net investment income (0.26) (0.31)
Distributions from net realized gains (0.40) 1.079)
--------- --------
Total distributions (0.66) (1.38)
--------- --------
Net asset value, end of year $ 18.54 $ 18.69
========= ========
Total return++ 2.82% 17.46%
========= ========
Ratios to average net assets/supplemental data:
Net assets, end of year (in 000's) $239,069 $92,955
Ratio of operating expenses to average net assets+++ 0.90%+ 0.90%
Ratio of net investment income to average net assets 1.54% 1.82%
Portfolio turnover rate 106% 64%
- --------------------------------------------------------------------------------
<FN>
* The Fund commenced operations on December 31, 1987. The Fund commenced
selling Investor Shares on April 6, 1994. Those shares outstanding
prior to April 4, 1994 were designated Trust Shares. Effective as of
October 17, 1994, the Fund's Trust Shares were redesignated Class R
Shares.
** Annualized.
+ Annualized expense ratio before reimbursement of expenses by the
investment adviser was 0.96% for the year ended October 31, 1994.
++ Total return represents aggregate total return for the period indicated.
+++ For the years or period ended October 31, 1990, 1989, and 1988, the
investment adviser waived a portion of its advisory fee amounting to
$0.0322, $0.1032, and $0.0392 per share, respectively. For the years
or period ended October 31, 1993, 1992, 1991, 1990, 1989, and 1988,
the investment adviser reimbursed expenses of the Fund amounting to
$0.0627, $0.0981, $0.1721, $0.3329, $0.7153 and $0.6040 per share,
respectively.
# Net investment income per share before reimbursement of expenses by the
investment adviser was $0.25 for the year ended October 31, 1994.
</TABLE>
20 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>
- ------------------------------------------------------------------------
$ 16.40 $ 12.41 $13.73 $11.08 $10.00
------- ------- ------ ------ ------
0.27 0.27 0.23 0.33 0.11
1.33 4.04 (0.60) 2.62 0.97
------- ------- ------ ------ ------
1.60 4.31 (0.37) 2.95 1.08
------- ------- ------ ------ ------
(0.27) (0.27) (0.28) (0.30) --
(0.52) (0.05) (0.67) -- --
------- ------- ------ ------ ------
(0.79) (0.32) (0.95) (0.30) --
------- ------- ------ ------ ------
$ 17.21 $ 16.40 $12.41 $13.73 $11.08
======= ======= ====== ======= ======
10.06% 35.27% (3.09)% 27.12% 10.80%
======= ======= ====== ======= ======
$43,742 $25,931 $9,517 $2,614 $1,619
0.90% 0.90% 0.82% 0.35% 0.35%**
1.73% 1.92% 2.22% 2.85% 2.58%**
84% 69% 76% 93% 42%
</TABLE>
- ------------------------------------------------------------------------
See Notes to Financial Statements. 21
........................................................................
<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 are now part of The Dreyfus Family of Funds. The
Investment Company is a series mutual fund with 19 separate investment
portfolios. These financial statements report on the Dreyfus Disciplined
Stock 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 commenced operations on December 31, 1987. The Fund currently offers two
classes of shares: Investor Shares and Class R Shares (effective October 17,
1994, the Trust Shares were redesignated Class R Shares). Investor Shares are
sold primarily to retail investors and bear a distribution fee. Class R
Shares are sold primarily to bank trust departments and other financial
service providers acting on behalf of customers having a qualified trust or
investment account or relationship at such institutions and bear no
distribution fee. Each class of shares has identical rights and privileges,
except with respect to distribution fees 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
principals.
(A) PORTFOLIO VALUATION
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. Debt securities with
maturities of 60 days or less from the valuation day are valued on the basis
of amortized cost.
(B) REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions. Under the terms of
a typical repurchase agreement, the 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
22
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
collateral to offset losses incurred. There is potential loss to the 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. The 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 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. 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 average daily net assets
of each class.
(D) EXPENSE ALLOCATION
Expenses of the Fund not directly attributable to the operations of any class
of shares are pro rated 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'
operations.
(E) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income, if any, are determined on a class
level, and are declared and paid quarterly. 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 Fund 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 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.
(F) 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 RELATED 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
23
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
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 the Fund in
accordance with its investment objective, policies and limitations. For these
services, the Fund pays the Manager a fee, calculated daily and paid monthly,
at the annual rate of 0.90% 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 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 the 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 0.90% 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 in the
amount of $131,810.
Prior to September 23, 1994, Frank Russell Investment Management Company (the
"Administrator") served as the Fund's administrator and provided, pursuant to
an administration agreement, various administrative and corporate secretarial
services to the Fund. 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).
For the year ended October 31, 1994, the Fund incurred total brokerage
commissions of $620,361, of which $29,235 was paid to InvestNet Corporation,
a subsidiary of Mellon Bank Corporation.
24
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
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.
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, 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), $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.
Prior to April 4, 1994, the Investment Company paid each Director $15,000 per
annum plus reimbursement 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. Prior to
April 4, 1994, the 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 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.
25
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
4. SECURITIES TRANSACTIONS
The cost of purchases and proceeds from sales of securities, excluding
short-term investments and U.S. government securities, for the year ended
October 31, 1994 were $370,206,463 and $214,121,742, respectively.
At October 31, 1994, aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities in which there was an excess
of tax cost over value were $16,659,531 and $11,257,834, respectively.
<TABLE>
<CAPTION>
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 table below summarizes the transactions
in Fund shares for the year or period indicated:
- -------------------------------------------------------------------------------
DREYFUS DISCIPLINED STOCK FUND
- -------------------------------------------------------------------------------
PERIOD ENDED
October 31, 1994*
SHARES AMOUNT
<S> <C> <C>
- --------------------------------------------------------------------------------
INVESTOR SHARES:
Sold 1,098,681 $19,823,569
Issued as reinvestment of
dividends and
distributions 575 10,293
Redeemed (42,949) (779,735)
--------- -----------
Net increase 1,056,307 $19,054,127
========= ===========
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
October 31, 1994* October 31, 1993
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
CLASS R SHARES:
Sold 10,921,206 $200,565,074 2,656,025 $47,053,656
Issued as reinvestment of
dividends and
distributions 308,851 5,583,366 166,982 2,860,596
Redeemed (3,310,422) (60,554,414) (391,193) (6,934,753)
---------- ----------- -------- ----------
Net increase 7,919,635 $145,594,026 2,431,814 $42,979,499
========== ============ ========= ===========
- --------------------------------------------------------------------------------
<FN>
* The Fund commenced selling Investor Shares on April 6, 1994. Those shares
outstanding prior to April 4, 1994 were designated Trust Shares. Effective as
of October 17, 1994, the Fund's Trust Shares were redesignated Class R
Shares.
</TABLE>
26
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
................................................................................
6. DIVIDENDS
On November 2, 1994, the Board of Directors declared a dividend from net
investment income for the Investor and Class R Shares in the amount of
$0.0631 and $0.0748 per share, respectively, payable on November 9, 1994 to
shareholders of record on November 2, 1994.
27
................................................................................
<PAGE>
INDEPENDENT AUDITORS' REPORT
................................................................................
The Board of Directors and Shareholders
The Dreyfus/Laurel Funds, Inc.
We have audited the accompanying statement of assets and liabilities of the
Dreyfus Disciplined Stock Fund of The Dreyfus/Laurel Funds, Inc., including
the portfolio of investments, as of October 31, 1994, and the related
statement of operations for the year then ended, the statement of changes in
net assets for each of the two years in the period then ended, 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 Disciplined Stock Fund of The Dreyfus/Laurel Funds, Inc., as of
October 31, 1994, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
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
28
................................................................................
<PAGE>
TAX INFORMATION (UNAUDITED)
................................................................................
DREYFUS DISCIPLINED STOCK FUND
YEAR ENDED OCTOBER 31, 1994
During the fiscal year the Fund paid $3,107,383 of long-term capital gains to
its shareholders.
29
................................................................................
<PAGE>
FOR MORE INFORMATION ON YOUR FUND, INCLUDING:
* General Fund Information - 9:00 a.m. to 5:00 p.m. Monday through Friday.
* Additional Prospectuses - Read the prospectus carefully before
you invest.
* Account Information - 9:00 a.m. to 5:00 p.m., Monday through A
Friday.
* Yield and Share Price Information - 24 hours a day, 7 days a week. N
CALL 1-800-548-2868 N
Or write:
The Dreyfus Family of Funds U
P.O. Box 9692
Providence, RI 02940-9830
A
L
Further information is contained
in the Prospectus, which must
precede or accompany this report.
R
E
P
O
The funds are distributed by: R
Premier Mutual Fund Services, Inc.
One Exchange Place 10th floor
Boston, MA 02109 DSTOCK2124 T
