<PAGE>
SEMI-ANNUAL REPORT
THE
DREYFUS
FAMILY
OF FUNDS
DESCRIPTION OF ARTWORK ON REPORT COVER
Small box above fund name showing a lion's face.
DREYFUS/LAUREL SHORT-TERM BOND FUND
FEBRUARY 28, 1995
<PAGE>
DEAR SHAREHOLDER,
As we advised shareholders six months ago, the former Laurel Family of Funds
has now been integrated with the Dreyfus Family of Funds. Accordingly, your
Fund is now known, and publicly listed, as the Dreyfus/Laurel Short-Term Bond
Fund.
During the past six months, yields on short-term securities have, for the
most part, continued to rise, due to a combination of factors: the Federal
Reserve Board's campaign to curb inflation and the pressures of an expanding
economy.
As interest rates were rising, prices declined as is generally the case. The
returns to investors reflect these developments. For the semi-annual period
ended February 28, 1995, the total return of the Dreyfus/Laurel Short-Term
Bond Fund's Investor shares was 3.02%.*
The actions of the Federal Reserve in raising interest rates seven times
during the past twelve months were instrumental in shaping the yield curve.
However, the role of the expanding U.S. economy cannot be underestimated. For
most of the past twelve months, there has been steady expansion in such
critical measurements as Gross Domestic Product, utilization of factory
capacity, production of automobiles, new housing and heavy construction.
Recently, Federal Reserve Board Chairman Alan Greenspan issued hints that the
Federal Reserve might be nearing the end of its prolonged cycle of boosting
interest rates. However, at just about the same time, the long-term decline
of the dollar on foreign exchange markets accelerated. By early March, the
U.S. dollar had hit historic lows in trading value against the yen and the
German mark. Several developments helped to bring this about: the high cost
to the U.S. of helping Mexico deal with its financial crisis, the failure of
Congress to pass a balanced budget amendment and the resulting uncertainty in
Washington about plans to reduce the U.S. budget deficit.
The dollar's weakness raised the question of whether the Fed might need to
help the beleaguered "greenback" by raising interest rates again.
In deciding which course to pursue, the Federal Reserve would most likely
analyze very carefully the outlook for the American economy. During the first
quarter of 1995, signs of economic growth continued, but at a somewhat slower
pace than in the fourth quarter of 1994. Offsetting more restrained
production statistics, however, were figures showing strong gains in the
creation of new jobs and continued decline in unemployment.
1
................................................................................
<PAGE>
On the price front, while consumer prices still showed low inflation, upward
price pressures were appearing at the intermediate manufacturing level.
Our objective continues to be providing the highest yield available without
incurring unnecessary market risk. As a defensive measure due to the
possibility that interest rates might still increase, we have been keeping
maturities short. Until there is a clear change in interest rate trends, we
currently intend to continue this policy.
We extend a warm welcome to you as a member of the Dreyfus family of
investors.
Sincerely,
Roberta Shea
Portfolio Manager
March 29, 1995
New York, NY
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
2
................................................................................
<PAGE>
<TABLE>
TABLE OF CONTENTS
...............................................................................
<S> <C>
Shareholder Letter................................ 1
Portfolio of Investments.......................... 4
Statement of Assets and Liabilities............... 6
Statement of Operations........................... 7
Statement of Changes in Net Assets................ 8
Financial Highlights.............................. 10
Notes to Financial Statements..................... 12
</TABLE>
3
...............................................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
......................................................................................
- --------------------------------------------------------------------------------------
DREYFUS/LAUREL SHORT-TERM BOND FUND
FEBRUARY 28, 1995
- --------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL COUPON MATURITY VALUE
AMOUNT RATE DATE (NOTE 1)
<C> <S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 72.1%
$ 150,000 U.S. Treasury Notes 7.500% 02/29/1996 $ 151,436
500,000 U.S. Treasury Notes 6.250 08/31/1996 496,720
2,100,000 U.S. Treasury Notes 7.250 11/30/1996 2,116,884
350,000 U.S. Treasury Notes 5.125 12/31/1998 327,863
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $3,083,414) 3,092,903
----------
MEDIUM-TERM NOTES -- 10.5%
100,000 Atlantic Richfield Company 10.375 07/15/1995 101,500
50,000 Beneficial Corporation 9.500 05/25/1995 50,312
150,000 Commercial Credit Group 9.200 06/15/1995 151,125
100,000 ITT Financial Corporation 8.375 08/01/1995 100,750
50,000 Schering Plough Corporation Zero Coupon 12/02/1996 44,437
3,944 SPNB Home Equity Loan 8.100 06/15/2020 3,965
----------
TOTAL MEDIUM-TERM NOTES
(Cost $451,725) 452,089
----------
MORTGAGE-BACKED SECURITIES -- 2.7%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) -- 2.5%
18,891 GNMA 10.000 03/15/2003 20,154
32,610 GNMA 11.500 07/15/2013 36,197
49,990 GNMA II 7.000 07/20/2017 50,615
----------
TOTAL GNMA
(Cost $101,449) 106,966
----------
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) -- 0.2%
(Cost $6,564)
6,614 FHLMC 7.090 03/01/2019 6,725
----------
TOTAL MORTGAGED-BACKED SECURITIES
(Cost $108,013) 113,691
----------
</TABLE>
4 See Notes to Financial Statements.
...............................................................................
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED)
.....................................................................................
- -------------------------------------------------------------------------------------
DREYFUS/LAUREL SHORT-TERM BOND FUND
FEBRUARY 28, 1995
- -------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
<C> <S> <C> <C>
REPURCHASE AGREEMENT -- 13.6%
(Cost $582,000)
$ 582,000 Agreement with Morgan Stanley & Co., 6.020%
dated 02/28/1995, to be repurchased at
$582,097 on 03/01/1995, collateralized by
$505,000 U.S. Treasury Note, 9.125% due
05/15/2018 $ 582,000
----------
TOTAL INVESTMENTS
(Cost $4,225,152*) 98.9% 4,240,683
OTHER ASSETS AND LIABILITIES (NET) 1.1 47,036
----- ----------
NET ASSETS 100.0% $4,287,719
===== ==========
<FN>
- -------------------------------------------------------------------------------------
* Aggregate cost for Federal tax purposes.
</TABLE>
See Notes to Financial Statements. 5
................................................................................
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
.......................................................................................
- ---------------------------------------------------------------------------------------
DREYFUS/LAUREL SHORT-TERM BOND FUND
FEBRUARY 28, 1995 (UNAUDITED)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments, at value (Cost $4,225,152) (Note 1)
See accompanying schedule:
Securities $3,658,683
Repurchase agreement 582,000 $4,240,683
----------
Cash 21,984
Interest receivable 47,703
Receivable from investment adviser 1,530
Receivable for Fund shares sold 73
----------
TOTAL ASSETS 4,311,973
----------
LIABILITIES:
Accrued audit fees $ 7,358
Investment management fee payable (Note 2) 5,835
Accrued shareholder reports expense 3,000
Dividends payable 2,995
Payable for Fund shares redeemed 2,681
Distribution fee payable (Note 3) 816
Accrued Trustees' fees and expenses (Note 2) 493
Accrued expenses and other payables 1,076
----------
TOTAL LIABILITIES 24,254
----------
NET ASSETS $4,287,719
==========
NET ASSETS consist of:
Distributions in excess of net investment income
earned to date $ (4,964)
Accumulated net realized loss on investments sold (150,417)
Unrealized appreciation of investments 15,531
Par value 361
Paid-in capital in excess of par value 4,427,208
----------
TOTAL NET ASSETS $4,287,719
==========
NET ASSET VALUE:
INVESTOR SHARES:
Net asset value, offering and redemption price per
share ($4,287,719 / 361,069 shares of beneficial
interest outstanding) $ 11.88
==========
</TABLE>
6 See Notes to Financial Statements.
................................................................................
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
.......................................................................................
- ---------------------------------------------------------------------------------------
DREYFUS/LAUREL SHORT-TERM BOND FUND
- ---------------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
Interest $127,645
--------
EXPENSES:
Investment management fee (Note 2) $10,727
Distribution fee (Note 3) 5,060
Trustees' fees and expenses (Note 2) 405
-------
TOTAL EXPENSES 16,192
--------
NET INVESTMENT INCOME 111,453
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
(Notes 1 and 4):
Net realized gain on investments during the period 59
Net unrealized appreciation of investments during the period 15,092
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 15,151
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $126,604
========
</TABLE>
See Notes to Financial Statements. 7
................................................................................
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
...................................................................................
- -----------------------------------------------------------------------------------
DREYFUS/LAUREL SHORT-TERM BOND FUND
- -----------------------------------------------------------------------------------
<CAPTION>
SIX
MONTHS
ENDED YEAR
2/28/95 ENDED
(UNAUDITED) 8/31/94
<S> <C> <C>
Net investment income $ 111,453 $ 150,040
Net realized gain on investments sold during the
period 59 699
Net unrealized appreciation/(depreciation) on
investments during the period 15,092 (156,593)
---------- ------------
Net increase/(decrease) in net assets resulting
from operations 126,604 (5,854)
Distributions to shareholders from net investment
income:
Investor shares (111,453) (131,766)
Institutional Class -- (13,133)
Distributions to shareholders in excess of net
investment income:
Investor shares -- (4,675)
Institutional Class -- (466)
Net increase/(decrease) in net assets from Fund
share transactions (Note 5):
Investor shares 1,999,981 (1,106,873)
---------- ------------
Net increase/(decrease) in net assets 2,015,132 (1,262,767)
NET ASSETS:
Beginning of period 2,272,587 3,535,354
---------- ------------
End of period (including distributions in excess
of net investment income of $4,964 and $4,964,
respectively) 4,287,719 2,272,587
========== ============
</TABLE>
8 See Notes to Financial Statements.
................................................................................
<PAGE>
[This Page Intentionally Left Blank]
See Notes to Financial Statements. 9
................................................................................
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
.................................................................................
- ---------------------------------------------------------------------------------
DREYFUS/LAUREL SHORT-TERM BOND FUND
- ---------------------------------------------------------------------------------
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH PERIOD.*
<CAPTION>
SIX MONTHS
ENDED YEAR
2/28/95(1) ENDED
(UNAUDITED) 8/31/94
- ---------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $11.85 $12.50
------ ------
Income from investment operations:
Net investment income*** 0.33 0.63
Net realized and unrealized gain/(loss) on
investments 0.02 (0.62)
------ ------
Total from investment operations 0.35 0.01
Less distributions:
Distributions from net investment income (0.32) (0.64)
Distributions in excess of net investment income -- (0.02)
------ ------
Total distributions (0.32) (0.66)
------ ------
Net asset value, end of period $11.88 $11.85
====== ======
Total return+ 3.02% 0.06%
====== ======
Ratios to average net assets/Supplemental data:
Net assets, end of period (in 000's) $4,288 $2,273
Ratio of operating expenses to average net assets** 0.80%+++ 0.95%
Ratio of net investment income to average net assets 5.51%+++ 5.38%
Portfolio turnover rate 1% 53%
<FN>
- ---------------------------------------------------------------------------------
* The Fund commenced operations on October 18, 1988. Effective April 4, 1994 the
Retail and Institutional Classes of shares were reclassified as a single class
of shares known as Investor shares. The amounts shown for the year ended August
31, 1994 were calculated using the performance of a Retail Class share
outstanding from September 1, 1993 to April 3, 1994, and the performance of an
Investor share outstanding From April 4, 1994 to August 31, 1994. The Financial
Highlights for the year ended August 31, 1993 and prior periods are based upon a
Retail Class share outstanding.
** Annualized expense ratios before waiver of fees and/or reimbursement of expenses
by investment adviser, transfer agent and custodian for the years ended August
31, 1994, 1993, 1992, 1991, 1990 and the period ended August 31, 1989 were
4.21%, 2.54%, 1.88%, 3.07%, 3.67%, and 1.54%, respectively.
*** Net investment income before waiver of fees and/or reimbursement of expenses by
investment adviser, transfer agent and custodian for the years ended August 31,
1994, 1993, 1992, 1991, 1990 and the period ended August 31, 1989 would have
been $0.25, $0.48, $0.63, $0.57, $0.61, and $0.82, respectively.
+ Total return represents aggregate total return for the periods indicated.
++ Per share amounts have been calculated using the monthly average share method,
which more appropriately presents the per share data for this period since use
of the undistributed income method does not accord with results of operations.
# Amount represents less than $0.01.
+++ Annualized.
(1) Effective October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment manager. From April 4, 1994 to October 16, 1994, Mellon Bank served
as the Fund's investment manager. Prior to April 4, 1994, The Boston Company
Advisors, Inc. served as the Fund's investment adviser.
</TABLE>
10 See Notes to Financial Statements.
................................................................................
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
..........................................................
- ----------------------------------------------------------
<CAPTION>
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
8/31/93++ 8/31/92 8/31/91 8/31/90 8/31/89*
- ----------------------------------------------------------
<S> <C> <C> <C> <C>
$12.64 $12.23 $11.82 $11.84 $12.00
------ ------ ------ ------ ------
0.68 0.75 0.82 0.93 0.86
(0.15) 0.41 0.41 (0.02) (0.17)
------ ------ ------ ------ ------
0.53 1.16 1.23 0.91 0.69
(0.67) (0.75) (0.82) (0.93) (0.85)
(0.00)# -- -- -- --
------ ------ ------ ------ ------
(0.67) (0.75) (0.82) (0.93) (0.85)
------ ------ ------ ------ ------
$12.50 $12.64 $12.23 $11.82 $11.84
====== ====== ====== ====== ======
4.34% 9.73% 10.79% 7.95% 5.97%
====== ====== ====== ====== ======
$3,477 $5,449 $3,895 $2,771 $3,374
0.99% 0.98% 0.99% 0.99% 1.14%+++
5.29% 5.96% 6.90% 7.77% 8.07%+++
6% 30% 70% 52% 232%
- ----------------------------------------------------------
</TABLE>
See Notes to Financial Statements. 11
..........................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
................................................................................
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Investment Series (the "Trust") (formerly The Boston
Company Investment Series), The Dreyfus/Laurel Funds, Inc., The
Dreyfus/Laurel Funds Trust and The Dreyfus/Laurel Tax-Free Municipal Funds
are all registered open-end investment companies that are now part of The
Dreyfus Family of Funds. The Trust is an investment company which, as of the
date of this report, consists of three funds: Dreyfus/Laurel Contrarian Fund,
Dreyfus/Laurel Short-Term Bond Fund and Dreyfus/Laurel International Fund.
This report contains financial statements for the Dreyfus/Laurel Short-Term
Bond Fund (the "Fund"). The Trust is a Massachusetts business trust and is
registered with the Securities and Exchange Commission (the "SEC") under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a
diversified, open-end management investment company. The Fund is currently
authorized to issue two classes of shares: Investor shares and Class R
shares. As of February 28, 1995, the Fund had not issued any Class R shares.
Investor shares are sold primarily to retail investors through the Fund's
distributor and financial intermediaries and bear a distribution fee. Class R
shares are sold primarily to bank trust departments and other financial
service providers (including Mellon Bank and its affiliates) acting on behalf
of customers having a qualified trust or investment account or relationship
at such institution and bear no distribution fee. Each class of shares has
identical rights and privileges except with respect to the distribution fee
and voting rights on matters affecting a single class. The following is a
summary of significant accounting policies consistently followed by the Fund
in the preparation of its financial statements in accordance with generally
accepted accounting principles.
(A) PORTFOLIO VALUATION
Investments in securities traded on a national securities exchange are valued
at the last reported sales price or, in the absence of a recorded sale, at
the mean of the closing bid and asked prices. Over-the-counter securities are
valued at the mean of the closing bid and asked prices. When market
quotations for securities are not readily available, the securities are
valued at fair value, as determined in good faith by the Board of Trustees.
Bonds are valued through valuations obtained from a commercial pricing
service or at the mean of the most recent bid and asked prices provided by
investment dealers in accordance with procedures established by the Board of
Trustees. 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 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
12
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
................................................................................
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 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 Trustees, 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) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Dividend income is
recorded on the ex-dividend date except in the case of certain dividends from
foreign securities which are recorded as soon as the Fund is informed of the
ex-dividend date. Interest income is recorded on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may
be settled a month or more after the trade date. Realized gains and losses
from securities sold are recorded on the identified cost basis. Investment
income and realized and unrealized gains and losses are allocated based upon
the relative average daily net assets of each class of shares.
(D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income, if any, of the Fund are determined on a
class level and are declared daily and paid monthly. The Fund distributes any
net realized capital gains on a Fund level annually. Distributions to
shareholders are recorded on the ex-dividend date. Additional distributions
of net investment income and capital gains for the Fund may be made at the
discretion of the Board of Trustees in order to avoid the 4.00% nondeductible
Federal excise tax. Income distributions and capital gain distributions on a
Fund level are determined in accordance with income tax regulations, which
may differ from generally accepted accounting principles. These differences
are primarily due to differing treatments of income and gains on various
investment securities held by the Fund, timing differences and differing
characterization of distributions made by the Fund as a whole.
(E) FEDERAL TAXES
It is the Fund's intention to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code applicable to
regulated investment companies and by distributing substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
13
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
................................................................................
2. INVESTMENT MANAGEMENT FEE, TRUSTEES' FEES AND 0THER RELATED PARTY
TRANSACTIONS
Effective as of October 17, 1994, the Trust's investment management agreement
with Mellon Bank, N.A. ("Mellon Bank") 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 Trust. The Manager also directs the investments of the
Fund in accordance with its investment objective, policies and limitations.
For these services, the Fund is contractually obligated to pay the Manager a
fee, calculated daily and paid monthly, at the annual rate of 0.55% of the
value of the Fund's average daily net assets. Out of its fee, the Manager
pays all of the expenses of the Fund except brokerage fees, taxes, interest,
Rule 12b-1 distribution fees and expenses, fees and expenses of the
non-interested Trustees (including counsel fees) and extraordinary expenses.
In addition, the Manager is required to reduce its fee in an amount equal to
the Fund's allocable portion of the fees and expenses of the non-interested
Trustees (including counsel).
Prior to October 17, 1994, Mellon Bank served as the Trust's investment
manager pursuant to the investment management agreement described above.
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. Mellon Bank, as investment manager, paid the
Administrator's fee out of the management fee described above.
Prior to October 17, 1994, Funds Distributor, Inc. served as distributor of
the Trust's shares. Effective October 17, 1994, Premier Mutual Fund Services,
Inc. ("Premier") serves as the Trust's distributor. Premier also serves as
the Trust's sub-administrator and, pursuant to a sub-administration agreement
with the Manager, provides various administrative and corporate secretarial
services to the Trust.
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 of any parent,
subsidiary or affiliate thereof) or of the Manager, $27,000 per annum, $1,000
for each Board meeting attended and $750 for each Audit Committee meeting
attended, and reimburse each Director or Trustee for travel and out-of-pocket
expenses.
14
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
...............................................................................
3. DISTRIBUTION PLAN
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1
under the 1940 Act relating to its Investor shares. Under the Plan, the Fund
may pay annually up to 0.25% of the value of the average daily net assets
attributable to its Investor shares to compensate Premier and Dreyfus Service
Corporation, an affiliate of the Manager, for shareholder servicing
activities and Premier for activities primarily intended to result in the
sale of Investor shares. Class R shares bear no distribution fee.
Under its terms, the Plan shall remain in effect from year to year, provided
such continuance is approved annually by a vote of a majority of those
Trustees who are not "interested persons" of the Trust and who have no direct
or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan.
4. SECURITIES TRANSACTIONS
Proceeds from sales of securities, excluding short-term investments and U.S.
government securities aggregated $1,436 for the six months ended February 28,
1995. Cost of purchases and proceeds from sales of U.S. government securities
aggregated $2,583,954 and $12,369, respectively, for the six months ended
February 28, 1995.
At February 28, 1995, aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost amounted to
$47,725 and aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over value amounted to $32,194 for the
Fund.
15
................................................................................
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
................................................................................
<TABLE>
5. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of
beneficial interest of each class in each separate series, with a par value
of $.001 per share. The table below summarizes transactions in Fund shares
for the periods shown in the accompanying respective Statement of Changes in
Net Assets.
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
February 28, 1995 August 31, 1994#
SHARES AMOUNT SHARES* AMOUNT**
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR SHARES:
Sold 178,393 $2,107,948 125,473 $ 1,547,869
Issued as reinvestment of dividends and
distributions 8,011 94,454 8,894 108,098
Redeemed (17,167) (202,421) (225,283) (2,762,840)
------- ---------- -------- -----------
Net increase/(decrease) 169,237 $1,999,981 (90,916) $(1,106,873)
======= ========== ======== ===========
<FN>
- -----------------------------------------------------------------------------------------
* Shares include 51,296 of subscriptions, 1,060 of reinvestments and 5,203
of redemptions for the Institutional Class up to April 4, 1994.
** Amounts include $635,969 of subscriptions, $13,003 of reinvestments and
$62,943 of redemptions for the Institutional Class up to April 4, 1994.
# Effective April 4, 1994, the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor shares.
</TABLE>
As of February 28, 1995, the Fund had not issued any Class R shares.
7. LINE OF CREDIT
The Trust and several affiliated entities participate in a $20 million line
of credit provided by Bank of America (formerly known as Continental Bank
N.A.) under a Line of Credit Agreement (the "Agreement") dated March 31,
1992, primarily for temporary or emergency purposes, including the meeting of
redemption requests that otherwise might require the untimely disposition of
securities. Under this Agreement, the Trust may borrow up to the amount
specified in its Borrowing Base Certificate. As amended effective May 21,
1994, the Trust and the other affiliated entities are charged an aggregated
commitment fee of $50,000, which is allocated equally among each of the
participants. The Agreement requires, among other provisions, each
participating fund to maintain a ratio of net assets (not including funds
borrowed pursuant to the Agreement) to aggregate amount of indebtedness
pursuant to the Agreement of no less than 4 to 1. At February 28, 1995, the
Fund had no outstanding borrowings under this Agreement.
9. CAPITAL LOSS CARRYFORWARD
As of August 31, 1994, the Fund had available for Federal tax purposes unused
capital loss carryforwards of $133,822 expiring in 1997 and $10,258 expiring
in 1999.
16
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FOR MORE INFORMATION ON YOUR FUND, INCLUDING:
- - General Fund Information
- - Additional Prospectuses - Read the prospectus carefully before you invest.
- - Account Information.
- - Yield and Share Price Information.
CALL 1-800-645-6561
24 HOURS A DAY, 7 DAYS A WEEK.
Or write:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Further information is contained
in the Prospectus, which must
precede or accompany this report.
The Fund is distributed by:
Premier Mutual Fund Services, Inc.
One Exchange Place 10th floor
Boston, MA 02109 398SA952
