Dreyfus/Laurel International Fund
Investor and Class R Shares
December 30, 1994
The Dreyfus/Laurel International Fund is a diversified equity fund
seeking long-term growth in capital by investing in companies located
outside the United States. Current income from dividends, interest, and
other sources is a secondary objective. The Fund seeks to achieve its
investment objectives through investments in common stocks and securities
convertible into common stocks.
This Prospectus describes the Dreyfus/Laurel International Fund (the
"Fund") of The Dreyfus/Laurel Investment Series (formerly The Laurel
Investment Series and prior thereto The Boston Company Investment Series),
a management investment company that is part of The Dreyfus Family of
Funds. This Prospectus describes two classes of shares--Investor Shares
and Class R Shares (collectively, the "Shares")--of the Fund.
This Prospectus sets forth concisely the information about the Fund
that a prospective purchaser should consider before investing. Investors
should read this Prospectus and retain it for future reference. Additional
information about the Fund is contained in a Statement of Additional
Information (the "SAI"), which has been filed with the Securities and
Exchange Commission (the "SEC") and is available upon request without
charge by calling or writing to The Dreyfus Family of Funds. The SAI bears
the same date as the Prospectus and is incorporated by reference in its
entirety into this Prospectus.
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 FEES TO WHICH THE FUND IS SUBJECT ARE SUMMARIZED IN THE "EXPENSE
SUMMARY" SECTION OF THIS PROSPECTUS. THE FUND PAYS MELLON BANK, N.A.
("MELLON BANK") OR ITS AFFILIATES TO BE ITS INVESTMENT MANAGER. MELLON
BANK OR AN AFFILIATE MAY BE PAID FOR PERFORMING OTHER SERVICES FOR THE
FUND, SUCH AS CUSTODIAN, TRANSFER AGENT OR FUND ACCOUNTANT SERVICES. THE
FUND IS DISTRIBUTED BY PREMIER MUTUAL FUND SERVICES, INC.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR
HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
In addition to this Fund, The Dreyfus Family of Funds also offers
other funds that provide investment opportunities for you in the equity,
fixed income and money markets. For more information about these
additional investment opportunities, call 1-800-548-2868
The Dreyfus Family of
Funds
P.O. Box 9692
Providence, Rhode Island
02940-9830
For Purchase,
Redemption
and Performance
Information call:
1-800-548-2868
TABLE OF CONTENTS
Page
Expense Summary 3
Financial Highlights 4
Investment Objectives and Policies 5
HOW TO DO BUSINESS WITH US:
Special Shareholder Services 5
Investor Line 5
How to Invest in the Fund 6
By Mail 6
By Telephone 6
By Wire 6
By Automatic Monthly Investments 6
By Direct Deposit 7
By In-Kind Purchases 7
When Share Price is Determined 7
Additional Information About Investments 7
How to Exchange Your Investment From One Fund to Another 8
By Telephone 8
By Mail 8
Additional Information About Exchanges 8
How to Redeem Shares 9
By Telephone 9
By Mail 9
By Automated Withdrawal Program 10
Redemption Proceeds 10
Additional Information About Redemptions 10
How To Use The Dreyfus Family of Funds in a Tax-Qualified Retirement Plan
11
How to Transfer an Investment to a Dreyfus Family of Funds' Retirement Plan
11
OTHER INFORMATION:
Share Price 11
Performance Advertising 12
Distributions 13
Taxes 13
Other Services 15
Further Information About The Fund 15
The Dreyfus/Laurel Investment Series 15
Management 15
Other Investment Policies 17
Distribution Plan (Investor Shares only) 22
No person has been authorized to give any information or to make any
representations not contained in this Prospectus, or in the Fund's SAI
incorporated herein by reference, in connection with the offering made by this
Prospectus and, if given or made, such information or representations must not
be relied upon as having been authorized by the Fund or its distributor. This
Prospectus does not constitute an offering by the Fund or by the distributor
in any jurisdiction in which such offering may not be lawfully made.
EXPENSE SUMMARY
The purpose of the following table is to help you understand the various
costs and expenses that you, as a shareholder, will bear directly or
indirectly in connection with an investment in the Investor or Class R Shares
of the Fund. (See "Management").
Dreyfus/Laurel International Fund
Investor
Shares
Class R
Shares
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
none
none
Maximum Sales Load Imposed on Reinvestments
none
none
Deferred Sales Load
none
none
Redemption Fee
none
none
Exchange Fee
none
none
ESTIMATED ANNUAL FUND OPERATING EXPENSES
(as a percentage of net assets)
Management Fee
1.50%
1.50
%
12b-1 Fee
0.25%
0.00
%
Other Expenses
0.00%
0.00
%
Total Fund Operating Expenses
1.75%
1.50
%
EXAMPLES:
Investor
Shares
Class R
Shares
You would pay the following
on a $1,000 investment, assuming
(1) a 5% annual return and (2)
redemption at the end of each time
period:
1 year
3 years
5 years
10 years
$18
$55
$95
$206
$15
$47
$82
$179
THE INFORMATION CONTAINED IN THE TABLE SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE MORE OR
LESS THAN THOSE SHOWN.
The Fund understands that banks, securities brokers or dealers and other
financial institutions (including Mellon Bank and its affiliates)
(collectively "Agents") may charge fees to their clients who are owners of the
Fund's Investor Shares for various services provided in connection with a
client's account. These fees would be in addition to any amounts received by
an Agent under its Shareholder Servicing and Sales Support Agreements
("Agreements") with Premier Mutual Fund Services, Inc. ("Premier"). The
Agreement requires each Agent to disclose to its clients any compensation
payable to such Agent by Premier and any other compensation payable by the
client for various services provided in connection with its account.
Long-term shareholders of Investor Shares could pay more in Rule 12b-1
fees than the economic equivalent of the maximum front-end sales charges
applicable to mutual funds sold by members of the National Association of
Securities Dealers, Inc.
FINANCIAL HIGHLIGHTS
The table below is based upon a single Investor Share outstanding throughout
each fiscal year and should be read in conjunction with the financial
statements and related notes that appear in the Fund's Annual Report dated
August 31, 1994. The financial statements included in the Fund's Annual
Report dated August 31, 1994 are incorporated by reference in the SAI and
have been audited by KPMG Peat Marwick, LLP, independent accountants, whose
report appears in the Fund's Annual Report. The Fund did not offer Class R
Shares during the fiscal year ended August 31, 1994.
Financial Highlights
DREYFUS/LAUREL INTERNATIONAL FUND(1)
For an Investor Share outstanding throughout each period.
Year
Ended
8/31/94#(
1)(2)
Year
Ended
8/31/9
3#
Year
Ended
8/31/92
Year
Ended
8/31/
91
Year
Ended
8/31/9
0
Period
Ended
8/31/8
9*
Net asset value, beginning of
period
$12.76
$10.93
$11.25
$12.2
5
$12.98
$12.00
Income from investment operations:
Net investment income
0.10***
0.05**
*
0.03***
0.12
0.19
0.12
Net realized and unrealized
gain/(loss) on investments
1.13
1.78
(0.14)
(0.73
)
(0.65)
0.89
Total from investment operations
1.23
1.83
(0.11)
(0.61
)
(0.46)
1.01
Less Distributions:
Dividends from net investment
income
- -
- -
(0.07)
(0.17
)
(0.18)
(0.03)
Distributions from net realized
capital gains
-
-
(0.14)
(0.22
)
(0.09)
- -
Total distributions
-
- -
(0.21)
(0.39
)
(0.27)
(0.03)
Net asset value, end of period
$13.99
$12.76
$10.93
$11.2
5
$12.25
$12.98
Total return+++
9.64%
16.74%
(1.05%)
(4.88
%)
(3.69%
)
8.40%
Ratios to average net
assets/Supplemental Data:
Net assets, end of period (in
000's)
$5,793
$3,399
$11,435
$29,7
06
$31,37
2
$24,69
9
Ratio of operation expenses to
average net assets
1.84%**
1.79%*
*++
1.87%**
1.63%
1.63%
1.76%+
Ratio of net investment income to
averagenet assets
0.74%
0.46%
0.24%
0.97%
1.50%
1.52%+
Portfolio turnover rate
114%
202%
110%
145%
28%
47%
INVESTMENT OBJECTIVES AND POLICIES
The Fund seeks long-term growth in capital by investing in companies located
outside the United States. Current income from dividends, interest, and
other sources is a secondary objective. The Fund is a diversified fund
that seeks to achieve its investment objectives by investing in common stocks
and securities convertible into common stocks of companies located outside
the United States.
The Fund places major emphasis on countries that are considered to have above
average potential for long-term economic growth. In general, the Fund's
investments are expected to be broadly diversified over a number of
countries including, but not limited to, Australia, Canada, France, Germany,
Hong Kong, Italy, Japan,
the Netherlands, Singapore/Malaysia, Spain, Sweden, Switzerland, and the
United Kingdom. Within countries, equity investments are expected to be
broadly diversified to spread risk and to provide representation of the
growth potential of the country. Selection of securities is designed to
include participation in economic and industrial sectors which are important
to the growth of the country. Within countries, the Fund invests primarily
in major established companies which are listed and traded on principal
exchanges. The Fund will not invest more than 35% of its total assets in any
one country. For additional information
concerning investments in foreign securities including risks, certain
foreign currency transactions and the Fund's temporary defensive strategy
see "Other Investment Policies", pages18-23.
HOW TO DO BUSINESS WITH US
SPECIAL SHAREHOLDER SERVICES
You may establish one or more special services designed to provide an
easy way to do business with the Fund. By electing these services on your
application or by completing the appropriate forms, you may authorize:
Investment by phone.
Automatic monthly investments.
Exchanges or redemptions by phone.
By electing the service which enables you to exchange and redeem by
phone, you agree to indemnify the Fund, its transfer agent and its investment
manager from any loss, claim or expense you may incur as a result of their
acting on such instruction. The Fund will employ reasonable procedures to
confirm that instructions communicated by telephone are genuine. These
include personal identification procedures, recording of telephone
conversations and providing written confirmation of each transaction. A
failure on the part of the Fund to employ such procedures may subject it to
liability for any loss due to unauthorized or fraudulent instructions.
INVESTOR LINE
You may reach The Dreyfus Family of Funds by calling our Investor Line
at 1-800-548-2868. If you call on a rotary phone during normal business hours
(9 a.m. to 5 p.m., Eastern time), you will reach a Dreyfus Family of Funds
operator. If you call on a Touch-Tone phone, you will receive instructions on
how to: (1) request a current prospectus or information booklets about The
Dreyfus Family of Funds' investment portfolios and services, (2) listen to net
asset values, yields and total return figures, and (3) talk with a customer
service representative during normal business hours. For more information
about direct access using a Touch-Tone phone, please contact The Dreyfus
Family of Funds.
HOW TO INVEST IN THE FUND
Premier serves as the Fund's distributor. Premier is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc. Premier also serves as the Fund's sub-administrator
and, pursuant to a Sub-Administration Agreement, provides various
administrative and corporate secretarial services to the Fund. Premier has
established various procedures for purchasing Class R and Investor Shares of
the Fund. Class R Shares are sold primarily to bank trust departments and
other financial service providers (including Mellon Bank and its affiliates)
("Banks") acting on behalf of customers having a qualified trust investment
account or relationship at such institution. Investor Shares are sold
primarily to retail investors by Premier and Agents that have entered into a
Shareholder Servicing and Sales Support Agreement with Premier. Once an
investor has established an account, additional purchases may, in certain
cases, be made directly through the Fund's transfer agent. If Shares of the
Fund are held in an account at a Bank or with an Agent, such Bank or Agent may
require you to place all Fund purchase, exchange and redemption orders through
them. All Banks and Agents have agreed to transmit your transaction requests
to the Fund's transfer agent or to Premier. You may diversify your
investments by choosing a combination of investment portfolios offered by The
Dreyfus Family of Funds.
You may invest in the following ways:
By Mail. Send your application and check or money order to The Dreyfus
Family of Funds, P.O. Box 9692, Providence, Rhode Island 02940-9830. Checks
must be payable in U.S. dollars and drawn on U.S. banks. When making
subsequent investments, enclose your check with the return remittance portion
of the confirmation of your previous investment. If the remittance portion is
not available, indicate on your check or a separate piece of paper your name,
address, the Fund and class of Shares of the Fund that you are buying and the
account number. Orders to purchase Shares are effective on the day the Fund
receives your check or money order. (See "When Share Price is Determined." )
By Telephone. Once your account is open, you may make investments by
telephone by calling
1-800-548-2868 if you have elected the service authorizing the Fund to draw on
your bank account when you call with instructions. Investments made by phone
in any one account must be in an amount of at least $100 and are effective two
days after your call. (See "When Share Price is Determined.")
By Wire. You may make your initial or subsequent investments in the
Fund by wiring funds. To do so:
(1) Instruct your bank to wire funds to Federal Reserve Bank of Boston, BOS
SAFE DEP, Account No. 01001234, The Dreyfus Funds 080071.
(2) Be sure to specify on the wire:
(a) The Dreyfus Funds.
(b) The Fund name and the class of Shares of the Fund you are buying and
account number (if you have one).
(c) Your name.
(d) Your city and state.
In order for a wire purchase to be effective on the same day it is
received both the trading instructions and the wire must be received before 4
p.m., Eastern time. (See "When Share Price is Determined.")
By Automatic Monthly Investments. Once your account is open, you may
make investments automatically by electing the Automatic Investment Program,
the service authorizing the Fund to draw on your bank account regularly by
paper or electronic draft. Such investments must be in amounts of not less
than $100 in any one account. You should inquire at your bank whether it will
honor a preauthorized paper or electronic draft. Contact the Fund if your
bank requires additional documentation. Call 1-800-548-2868 or write The
Dreyfus Family of Funds, One Exchange Place, Boston, Massachusetts 02109 for
more information about the Automatic Investment Program.
By Direct Deposit. If your employer offers Direct Deposit, you may
arrange to automatically purchase Shares of the Fund (minimum $100) each pay
period. Direct Deposit investing may also be available to persons receiving
regular payments from other sources (including government pension or social
security payments). Note that it may not be appropriate to Direct Deposit
your entire paycheck into the Fund because it has a fluctuating net asset
value. Call 1-800-548-2868 or write The Dreyfus Family of Funds, One Exchange
Place, Boston, Massachusetts 02109 for more information or a Direct Deposit
authorization form.
By In-Kind Purchases. If the following conditions are satisfied, the
Fund may, at its discretion, permit you to purchase Shares through an "in-
kind" exchange of securities you hold. Any securities exchanged must meet the
investment objectives, policies and limitations of the Fund, must have a
readily ascertainable market value, must be liquid and must not be subject to
restrictions on resale. The market value of any securities exchanged, plus
any cash, must be at least equal to $25,000. Shares purchased in exchange for
securities generally cannot be redeemed for fifteen days following the
exchange in order to allow time for the transfer to settle.
The basis of the exchange will depend upon the relative net asset value
of the Shares purchased and securities exchanged. Securities accepted by the
Fund will be valued in the same manner as the Fund values its assets. Any
interest earned on the securities following their delivery to the Fund and
prior to the exchange will be considered in valuing the securities. All
interest, dividends, subscription or other rights attached to the securities
become the property of the Fund, along with the securities. Call 1-800-548-
2868 or write The Dreyfus Family of Funds, One Exchange Place, Boston,
Massachusetts 02109 for more information about "in-kind" purchases.
When Share Price is Determined. The price of your Shares is their net
asset value ("NAV"). NAV is determined at the close of the New York Stock
Exchange ("NYSE") on each day that the NYSE is open (a "business day").
Investments and requests to exchange or redeem Shares received by the Fund
before the close of regular trading on the NYSE (usually 4 p.m., Eastern time)
are effective on, and will receive the price determined on that day (except
investments made by electronic funds transfer which are effective two business
days after your call). Investment, exchange or redemption requests received
after the close of the NYSE are effective on, and receive the Share price
determined on the next business day.
Additional Information About Investments. Once you have mailed or
otherwise transmitted your investment instruction to the Fund, it may not be
modified or canceled. The Fund reserves the right to reject any application
or investment. The Fund reserves the right to make exceptions to the minimum
initial investment and account minimum amount from time to time.
The minimum initial investment to establish a new account in a Fund is
$1,000, except for Individual Retirement Accounts ("IRAs"), retirement plans,
and Uniform Transfers (Gifts) to Minors Act accounts, for which the minimum
initial investment is $500. For full-time or part-time employees of Mellon
Bank, The Dreyfus Corporation (the "Manager") or any of their affiliates or
subsidiaries who elect to have a portion of their pay directly deposited into
an account in the Fund, the minimum initial investment is $50. The Fund may
suspend the offering of Shares of any class of the Fund and reserves the right
to vary initial and subsequent investment minimums. Subsequent investments to
purchase additional Shares in the Fund must be in an amount of $100 or more.
The Fund intends, upon 60 days' prior notice, to involuntarily redeem
shares in any account if the total value of the Shares is less than a
specified minimum as a result of redemptions but not as a result of market
action, unless you have established an automatic monthly investment to
purchase additional Shares. The Fund reserves the right to change such
minimum from time to time. Any time the Shares of the Fund held in an account
have a value of less than $1,000 ($500 for Uniform Gifts/Transfers to Minors
Acts accounts), a notification may be sent advising you of the need to either
make an investment to bring the value of the Shares held in the account up to
$1,000 ($500) or to establish an automatic monthly investment to purchase
additional Shares. If the investment is not made or the automatic monthly
investment is not established within 60 days from the date of notification,
the Shares held in the account will be redeemed and the proceeds from the
redemption will be sent by check to your address of record.
The automatic redemption of Shares will not apply to IRAs, custodial
accounts under Section 403(b) of the Internal Revenue Service of 1986, as
amended (the "Code") ("403(b) accounts") and other types of tax-deferred
retirement plan accounts.
HOW TO EXCHANGE YOUR INVESTMENT
FROM ONE FUND TO ANOTHER
You may exchange your Fund Shares for shares of the same class of
certain other funds that are advised by the Manager and that were previously
advised by Mellon Bank. As noted below, exchanges from any one fund may be
limited in any one calendar year. In addition, the Shares being exchanged and
the Shares of each fund being acquired must have a current value of at least
$100 and otherwise meet the minimum investment requirement of the fund being
acquired. Call the Investor Line for additional information and a prospectus
describing other investment portfolios offered by The Dreyfus Family of Funds.
By Telephone. You may exchange your Shares by calling 1-800-548-2868 if
you have authorized the Fund to accept telephone instructions.
By Mail. You may direct the Fund to exchange your Shares by writing to
The Dreyfus Family of Funds, P.O. Box 9692, Providence, Rhode Island 02940-
9830. The request should be signed by each person in whose name the Shares are
registered. All signatures should be exactly as the name appears in the
registration; for example, if an owner's name is registered as John Robert
Jones, he should sign that way and not as John R. Jones.
Additional Information About Exchanges.
(1) In an exchange from one account to another account, the Shares being
sold and the new Shares being purchased must have a current value of at least
$100.
(2) Exchanges from any one fund may be limited in any one calendar year.
The Fund reserves the right to make exceptions to an exchange limitation from
time to time. An exchange limitation will not apply to the exchange of Shares
of a money market fund, the Shares of any of the funds exchanged pursuant to
an Automatic Withdrawal Program, and to Shares held in 403(b) accounts.
(3) The Shares being acquired must be qualified for sale in your state of
residence.
(4) If the Shares are represented by a negotiable stock certificate, the
certificate must be returned before the exchange can be effected.
(5) Once you have telephoned or mailed your exchange request, it is
irrevocable and may not be modified or canceled.
(6) An exchange is based on the next calculated net asset value per Share of
each fund after receipt of your exchange order.
(7) Shares may not be exchanged unless you have furnished the Fund with your
tax identification number, certified as prescribed by the Code and the
regulations thereunder. (See "Taxes.")
(8) An exchange of the Fund's Shares is, for federal income tax purposes, a
sale of the Shares, on which you may realize a taxable gain or loss.
(9) If the request is made by a corporation, partnership, trust, fiduciary,
agent, estate, guardian, pension plan, profit sharing plan or unincorporated
association, the Fund may require evidence satisfactory to it of the authority
of the individual signing the request.
Shareholders will be given 60 days' notice prior to any material changes
in the exchange privilege.
HOW TO REDEEM SHARES
The Fund will redeem or "buy back" your Shares at any time at their NAV.
(Before redeeming, please read "Additional Information About Redemptions)
Your redemption proceeds may be delayed if you have owned your Shares less
than 10 days. (See "Redemption Proceeds.") The Fund imposes no charges when
Shares are redeemed. Agents or other institutions may charge their clients a
nominal fee for effecting redemptions of Fund Shares.
By Telephone. If you have authorized the Fund to accept telephone
instructions, you may redeem your Shares by calling 1-800-548-2868. Once
made, your telephone request may not be modified or canceled. (Before
calling, read "Additional Information About Redemptions," and "When Share
Price is Determined.")
By Mail. Your written instructions to redeem Shares may be in any one
of the following forms:
A letter to The Dreyfus Family of Funds.
An assignment form or stock power.
An endorsement on the back of your negotiable stock certificate, if you
have one.
Once mailed to The Dreyfus Family of Funds, P.O. Box 9692, Providence,
Rhode Island 02940-9830, the redemption request is irrevocable and may not be
modified or canceled. A letter of instruction should state the number of
Shares or the dollar amount to be redeemed. The letter must include your
account number, and for redemptions in an amount in excess of $25,000, a
signature guarantee of each owner. The redemption request must be signed by
each person in whose name the Shares are registered; for example, in the case
of joint ownership, each owner must sign. All signatures should be exactly as
the name appears in the registration. If the owner's name appears in the
registration as John Robert Jones, he should sign that way and not as John R.
Jones. Signature guarantees can be obtained from commercial banks, credit
unions if authorized by state laws, savings and loan institutions, trust
companies, members of a recognized stock exchange, or from other eligible
guarantors who are members of the Securities Transfer Agents Medallion Program
("STAMP") or any other industry recognized program approved by the Securities
Transfer Association. (Before writing, see "Additional Information About
Redemptions")
By Automated Withdrawal Program. The Fund's Automated Withdrawal
Program automatically redeems enough Shares each month to provide you with a
check for an amount which you specify (with a minimum of $100). To set up an
Automated Withdrawal Program, call the Fund at 1-800-548-2868 for
instructions. Only shareholders with a Fund account balance of $10,000 or
more may participate in this program. Shares will be redeemed on the 15th day
or 30th day of each month or the next business day, and your check will be
mailed the next day. If your monthly checks exceed the dividends, interest
and capital appreciation on your Shares, the payments will deplete your
investment. Amounts paid to you by Automated Withdrawals are not a return on
your investment. They are derived from the redemption of Shares in your
account, and you must report on your income tax return, any gains or losses
that you realize.
You may specify an Automated Withdrawal Program when you make your first
investment. If you would like to establish an Automated Withdrawal Program
thereafter, the request for the Automated Withdrawal Program must be signed by
all owners.
When you make your first investment you may request that Automated
Withdrawals be sent to an address other than the address of record.
Thereafter, a request to send Automated Withdrawals to an address other than
the address of record must be signed by all owners.
The Fund may terminate the Automated Withdrawal Program at any time,
upon notice to you, and you likewise may terminate it or change the amount of
the Automated Withdrawal Program, by notice to the Fund in writing or by
telephone. Termination or change will become effective within five days
following receipt of your instruction. Your Automated Withdrawal Program plan
may begin any time after you have owned your Shares for 10 days.
Redemption Proceeds. Redemption proceeds may be sent to you:
By Mail. If your redemption check is mailed, it is usually mailed by
the second business day after receipt of your redemption request, but not
later than seven days afterwards. When a redemption occurs shortly after a
recent purchase, the Fund may hold the redemption proceeds beyond seven days
but only until the purchase check clears, which may take up to 10 days or
more. No dividend is paid on the redemption proceeds after the redemption and
before the check is mailed. If you anticipate redemptions soon after you
purchase your Shares, you are advised to wire funds to avoid delay.
By Wire and Electronic Funds Transfer. You may authorize the Fund to
transmit redemption proceeds by wire or electronic funds transfer. Proceeds
from the redemption of the Fund's Shares will normally be transmitted on the
first business day, but not later than the seventh day, following the date of
redemption. Your bank usually will receive wired funds the day they are
transmitted. Electronically transferred funds will ordinarily be received
within two business days after transmission. Once the funds are transmitted,
the time of receipt and the availability of the funds are not within the
Funds control. If your bank account changes, you must send a new "voided"
check preprinted with the bank registration with written instructions signed
by all owners (with their signatures guaranteed), including tax identification
number.
Additional Information About Redemptions.
(1) Redemptions specifying a certain date or price cannot be accepted
and will be returned.
(2) If the Shares being redeemed are represented by a negotiable stock
certificate, the certificate must be returned before the redemption can be
effected.
(3) All redemptions are made and the price is determined on the day when
all documentation is received in good order.
(4) If the request to redeem is made by a corporation, partnership,
trust, fiduciary, agent, estate, guardian, pension plan, profit sharing plan,
or unincorporated association, the Fund may require evidence satisfactory to
it of the authority of the individual signing the request. Please call or
write the Fund for further information.
(5) A request to redeem Shares in an IRA or 403(b) account must be
accompanied by an IRS Form W4-P and a reason for withdrawal as specified by
the Internal Revenue Service.
HOW TO USE THE DREYFUS FAMILY OF FUNDS IN
A TAX-QUALIFIED RETIREMENT PLAN
Certain of The Dreyfus Family of Funds' investment portfolios are
available for your tax-deferred retirement plan. Call 1-800-548-2868 or write
The Dreyfus Family of Funds, P.O. Box 9692, Providence, Rhode Island 02940-
9830 and request the appropriate forms for:
IRAs.
403(b) accounts for employees of public school systems and non-profit
organizations.
Profit sharing plans and pension plans for corporations and other
employers.
How to Transfer an Investment to a Dreyfus Family of Funds' Retirement
Plan. It is easy to transfer your tax-deferred plan to The Dreyfus Family of
Funds from another custodian. Call 1-800-548-2868 or write The Dreyfus Family
of Funds. P.O. Box 9692, Providence, Rhode Island 02940-9830 for a request to
transfer form. If you direct The Dreyfus Family of Funds to transfer funds
from an existing non-retirement Dreyfus Family of Funds account into a
retirement account, the Shares in your non-retirement account will be
redeemed. The redemption proceeds will be invested in your Dreyfus Family of
Funds IRA or other tax-qualified retirement plan. The redemption is a taxable
event resulting in a taxable gain or loss.
OTHER INFORMATION
SHARE PRICE
An investment portfolio's NAV refers to the worth of one Share. The NAV
for Investor and Class R Shares of the Fund is computed by adding with respect
to each class of Shares the value of all the class' investments, cash, and
other assets, deducting liabilities and dividing the result by number of
Shares of that class outstanding. The valuation of assets for determining NAV
for the Fund may be summarized as follows:
The portfolio securities of the Fund, except as otherwise noted, listed
or traded on a stock exchange, are valued at the latest sale price. If no
sale is reported, the mean of the latest bid and asked prices is used.
Securities traded over-the-counter are priced at the mean of the latest bid
and asked prices but will be valued at the last sale price if required by
regulations of the SEC. When market quotations are not readily available,
securities and other assets are valued at fair value as determined in good
faith in accordance with procedures established by the Board of Trustees.
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
Trustees.
Pursuant to a determination by The Dreyfus/Laurel Investment Series'
Board of Trustees that such value represents fair value, debt securities with
maturities of 60 days or less held by the Fund are valued at amortized cost.
When a security is valued at amortized cost, it is valued at its cost when
purchased, and thereafter by assuming a constant amortization to maturity of
any discount or premium, regardless of the impact of fluctuating interest
rates on the market value of the instrument.
The NAV of each class of Shares of most of The Dreyfus Family of Funds'
investment portfolios (other than money market funds) is published in leading
newspapers daily. The yield of each class of Shares of most of The Dreyfus
Family of Funds' money market funds is published weekly in leading financial
publications and in many local newspapers. The NAV of the Fund may also be
obtained by calling The Dreyfus Family of Funds.
PERFORMANCE ADVERTISING
From time to time, the Fund may advertise the yield and total return on
a class of Shares. Total return and yield figures are based on historical
earnings and are not intended to indicate future performance. The "total
return" of a class of Shares of the Fund may be calculated on an average
annual total return basis or a cumulative total return basis. Average annual
total return refers to the average annual compounded rates of return on a
class of Shares over one-, five-, and ten-year periods or the life of the Fund
(as stated in the advertisement) that would equate an initial amount invested
at the beginning of a stated period to the ending redeemable value of the
investment, assuming the reinvestment of all dividends and capital gains
distributions. Cumulative total return reflects the total percentage change
in the value of the investment over the measuring period, again assuming the
reinvestment of all dividends and capital gains distributions.
The Fund's "yield" is calculated by dividing a class of Shares'
annualized net investment income per Share during a recent 30-day (or one
month) period by the maximum public offering price per class of such Share on
the last day of that period. Because yields fluctuate, yield data cannot
necessarily be used to compare an investment in a class of Shares with bank
deposits, savings accounts, and similar investment alternatives which often
provide an agreed-upon or guaranteed fixed yield for a stated period of time.
Total return and yield quotations will be computed separately for each
class of the Fund's Shares. Because of the difference in the fees and
expenses borne by Class R and Investor Shares of the Fund, the return and
yield on Class R Shares will generally be higher than the return and yield on
Investor Shares. Any fees charged by a Bank or Agent directly to its
customers' account in connection with investments in the Fund will not be
included in calculations of total return or yields. The Fund's Annual Report
contains additional performance information and is available upon request
without charge from the Fund's distributor or your Bank or Agent.
The Fund may compare the performance of its Investor and Class R Shares
with various industry standards of performance including Lipper Analytical
Services, Inc. ratings, and the Fund may also compare a Shares' performance
with Standard & Poor's 500 Composite Stock Price Index, the Consumer Price
Index, and the Dow Jones Industrial Average. Performance rankings as reported
in Changing Times, Business Week, Institutional Investor, The Wall Street
Journal, Mutual Fund Forecaster, No Load Investor, Money Magazine, Morningstar
Mutual Fund Values, U.S. News and World Report, Forbes, Fortune, Barron's and
similar publications may also be used in comparing the Fund's performance.
Furthermore, the Fund may quote its Investor and Class R Shares' returns and
yields in advertisements or in shareholder reports. . The Fund may also
advertise non-standardized performance information, such as total return, for
periods other than those required to be shown on cumulative performance data
DISTRIBUTIONS
The Fund declares and pays dividends from its net investment income semi-
annually. The Fund distributes any net long-term capital gains on an annual
basis. The Board of Trustees may elect not to distribute capital gains in
whole or in part to take advantage of capital loss carryovers.
Unless you choose to receive dividend and/or capital gain distributions
in cash, your distributions will be automatically reinvested in additional
Shares of the Fund at the NAV. You may change the method of receiving
distributions at any time by writing to the Fund. Checks which are sent to
shareholders who have requested distributions to be paid in cash and which are
subsequently returned by the United States Postal Service as not deliverable
or which remain uncashed for six months or more will be reinvested in
additional Fund Shares in the shareholder's account at the then current NAV.
Subsequent Fund distributions will be automatically reinvested in additional
Fund Shares in the shareholder's account.
Distributions paid by the Fund with respect to one class of Shares may
be greater or less per Share than those paid with respect to another class of
Shares due to the different expenses of the different classes.
Shares purchased on a day on which the Fund calculates its NAV will not
begin to accrue dividends until the following business day. Redemption orders
effected on any particular day will receive all dividends declared through the
day of redemption.
You may elect to have distributions on Shares held in IRAs and 403(b)
accounts paid in cash only if you are at least 59 years old or are
permanently and totally disabled. Distribution checks normally are mailed
within seven days after the record date.
Any dividend and/or capital gain distribution paid by the Fund will
reduce each Share's NAV by the amount of the distribution. Shareholders are
subject to taxes with respect to any such distribution. At any given time,
the value of the Fund's Shares includes the undistributed net gains, if any,
realized by the Fund on the sale of portfolio securities, and undistributed
dividends and interest received, less the Fund's expenses. Because such gains
and income are included in the value of your Shares, when they are distributed
the value of your Shares is reduced by the amount of the distribution.
Accordingly, if your distribution is reinvested in additional Shares, the
distribution has no effect on the value of your investment; while you own more
Shares, the value of each Share has been reduced by the amount of the
distribution. Likewise, if you take your distribution in cash, the value of
your Shares immediately after the distribution plus the cash received is equal
to the value of the Shares immediately before the distribution. For example,
if you own a Fund Share that immediately before a distribution has a value of
$10, including $2 in undistributed dividends and capital gains realized by the
Fund during the year, and if the $2 is distributed, the value of the Share
will decline to $8. If the $2 is reinvested at $8 per Share, you will receive
.250 Shares, so that, after the distribution, you will have 1.250 Shares at $8
per Share, or $10, the same as before.
TAXES
The Fund intends to qualify for treatment as a regulated investment
company under the Code so that it will be relieved of Federal income tax on
that part of its investment company taxable income (consisting generally of
taxable net investment income, net short-term capital gain and net gains from
certain foreign currency transactions) and net capital gain (the excess of net
long-term capital gain over net short-term capital loss) that is distributed
to its shareholders.
Dividends from the Fund's investment company taxable income are taxable
to you as ordinary income, to the extent of the Fund's earnings and profits.
Distributions by a Fund of net capital gain, when designated as such, are
taxable to you as long-term capital gains, regardless of the length of time
you have owned your Shares.
All or a portion of the dividends paid by the Fund may be eligible for
the dividends-received deduction allowed to corporations. The eligible
portion may not exceed the aggregate dividends received by the Fund from U.S.
corporations. However, dividends received by a corporate shareholder and
deducted by it pursuant to the dividends-received deduction are subject
indirectly to the alternative minimum tax. No dividends paid by the Fund are
expected to be eligible for this deduction.
Dividends and other distributions are taxable to you regardless of
whether they are received in cash or reinvested in additional Fund Shares,
even if the value of your Shares is below your cost. If you purchase Shares
shortly before a taxable distribution you must pay income taxes on the
distribution, even though the value of your investment (plus cash received, if
any) remains the same. In addition, the Share price at the time you purchase
Shares may include unrealized gains in the securities held in the Fund. If
these portfolio securities are subsequently sold and the gains are realized,
they will, to the extent not offset by capital losses, be paid to you as a
capital gain distribution and will be taxable to you.
In January of each year, the Fund will send you a Form 1099-DIV
notifying you of the status for federal income tax purposes of your
distributions for the preceding year.
Dividends paid by the Fund to qualified retirement plans ordinarily will
not be subject to taxation until the proceeds are distributed from the
retirement plans. The Fund will not report to the IRS dividends paid to such
plans. Generally, distributions from qualified retirement plans, except those
representing returns of non-deductible contributions thereto, will be taxable
as ordinary income and, if made prior to the time the participant reaches age
591/2, generally will be subject to an additional tax equal to 10% of the
taxable portion of the distribution. If the distribution from such a
retirement plan (other than certain governmental or church plans) for any
taxable year following the year in which the participant reaches age 701/2 is
less than the minimum required distribution for that taxable year, an excise
tax equal to 50% of the deficiency may be imposed by the IRS. The
administrator, trustee or custodian of such a retirement plan will be
responsible for reporting such distributions from such plans to the IRS.
Moreover, certain contributions to a qualified retirement plan in excess of
the amounts permitted by law may be subject to an excise tax.
You must furnish the Fund with your taxpayer identification number
("TIN") and state whether you are subject to withholding for prior under-
reporting, certified under penalties of perjury as prescribed by the Code and
the regulations thereunder. Unless previously furnished, investments received
without such a certification will be returned. The Fund is required to
withhold a portion of all dividends, capital gain distributions and redemption
proceeds payable to any individuals and certain other non-corporate
shareholders who do not provide the Fund with a correct TIN; withholding from
dividends and capital gain distributions also is required for such
shareholders who otherwise are subject to backup withholding.
The Fund will be subject to a 4% nondeductible excise tax to the extent
it fails to distribute by the end of any calendar year substantially all of
its taxable ordinary income for that year and capital gain net income for the
one-year period ending on December 31 of that year, plus certain other
amounts. The Fund expects to make such distributions as are necessary to
avoid the imposition of this tax.
The foregoing is only a summary of some of the important tax
considerations generally affecting the Fund and its shareholders; see the SAI
for a further discussion. There may be other federal, state or local tax
considerations applicable to a particular investor. You therefore are urged
to consult your own tax adviser.
OTHER SERVICES
At least twice a year you will receive the financial statements of the
Fund with a summary of its investments and performance. The Fund will send
you a confirmation statement after every transaction (except with regard to
the reinvestment of dividends and other distributions) that affect your Fund
accounts. In addition, an account statement will be mailed to you quarterly
or monthly depending on the Fund's reporting schedule. You may also request a
statement of your account activity at any time. Carefully review such
confirmation statements and account statements and notify the Fund immediately
if there is an error. From time to time, to reduce expenses, only one copy of
a Fund's shareholder reports (such as a Fund's Annual Report) may be mailed to
your household. Please call the Fund if you need additional copies.
No later than January 31 of each year, the Fund will send you the
following reports, which you may use in completing your federal income tax
return:
Form 1099-DIV Reports taxable distributions (and returns of capital, if
any) during the preceding year.
Form 1099-B Reports proceeds paid on redemptions during the preceding year
(for non-retirement plan accounts).
Form 1099-R Reports distributions from IRAs and 403(b) accounts during the
preceding year.
At such time as prescribed by law, the Fund will send you a Form 5498,
which reports contributions to your IRA for the previous calendar year. In
addition, the Fund may send you other relevant tax-related forms.
FURTHER INFORMATION ABOUT THE FUND
The Dreyfus/Laurel Investment Series. The Dreyfus/Laurel Investment
Series offers Shares of beneficial interest of separate investment portfolios
with $.001 par value per share (each a "fund"). The Boston Company Investment
Series was organized as a Massachusetts business trust under the laws of the
Commonwealth of Massachusetts on May 26, 1988 and changed its name to The
Laurel Investment Series, and then to The Dreyfus/Laurel Investment Series on
October 17, 1994. The Dreyfus/Laurel Investment Series is registered with the
SEC as an open-end management investment company, commonly known as a mutual
fund. The Trustees have authorized Shares of the Fund to be issued in two
classes--Investor Shares and Class R Shares.
Each Share (regardless of class) has one vote. All Shares of a fund
(and classes thereof) vote together as a single class, except as to any matter
for which a separate vote of any fund or class is required by the Investment
Company Act of 1940 (the "1940 Act"), and except as to any matter which
affects the interests of one or more particular fund or classes, in which case
only the shareholders of the affected fund or classes are entitled to vote,
each as a separate class. At your written request, the Fund will issue
negotiable stock certificates.
Management. The Board of Trustees. The business affairs of The
Dreyfus/Laurel Investment Series are managed under the direction of its
Trustees. The SAI contains the names and general background information
concerning the Trustees and officers of The Dreyfus/Laurel Investment Series.
Investment Manager. The Manager is located at 200 Park Avenue, New
York, New York 10166. As of November 30, 1994, the Manager managed or
administered approximately $71 billion in assets for more than 1.9 million
investor accounts nationwide. The Manager is a wholly-owned subsidiary of
Mellon Bank (One Mellon Bank Center, Pittsburgh, PA 15258), the Fund's prior
investment manager. Pursuant to an Investment Management Agreement,
transferred from Mellon Bank to the Manager effective as of October 17, 1994,
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 Fund. As investment manager, the Manager manages the
Fund by making investment decisions based on the Fund's investment objectives,
policies and restrictions.
Under the Investment Management Agreement, the Fund pays a fee computed
daily, and paid monthly, at the annual rate of 1.50% of the Fund's average
daily net assets less certain expenses described below. The Manager pays all
of the expenses of the Fund except brokerage, taxes, interest, fees and
expenses of the non-interested Trustees (including counsel fees) and
extraordinary expenses. Although the Manager does not pay for the fees and
expenses of the non-interested Trustees (including counsel fees), the Manager
is contractually required to reduce its investment management fee in an amount
equal to a Fund's allocable share of such expenses. In order to compensate
the Manager for paying virtually all of the Fund's expenses, the Fund's
investment management fee is higher than the investment advisory fees paid by
most investment companies. Most, if not all, such companies also pay for
additional non-investment advisory expenses that are not paid by such
companies' investment adviser. From time to time, the Manager may waive
(either voluntarily or pursuant to applicable state limitations) additional
investment management fees payable by the Fund. For the period from September
1, 1993 through April 3, 1994, the Fund paid its investment adviser, The
Boston Company Advisors, Inc., (an indirect wholly-owned subsidiary of Mellon
Bank Corporation), 0.00% of the Fund's average daily net assets in investment
advisory fees (net of fees waived and expenses reimbursed) under the Fund's
previous investment advisory contract (such contract only covered the
provision of investment advisory and certain specified administrative
services). For the period from April 4, 1994 through the fiscal year ended
August 31, 1994, the Fund paid Mellon Bank 1.50% (annualized) of the Fund's
average daily net assets in investment management fees. For the fiscal year
ended August 31, 1994, total operating expenses (excluding Rule 12b-1 fees)
(net of fees waived and expenses reimbursed) of the Fund were 1.66% of the
Fund's average daily net assets for the Investor Shares. It is anticipated
that the current total operating expenses of the Fund (excluding Rule 12b-1
fees) will be approximately 1.50% of the Fund's average daily net assets.
The Manager is authorized to allocate purchase and sale orders for
portfolio securities to certain financial institutions, including, in the case
of agency transactions, financial institutions which are affiliated with the
Manager or which have sold Shares of the Fund, if the Manager believes that
the quality of the transaction and the commission are comparable to what they
would be with other qualified brokerage firms. From time to time, to the
extent consistent with its investment objectives, policies and restrictions,
the Fund may invest in securities of companies with which Mellon Bank has a
lending relationship.
Mellon Bank is a subsidiary of Mellon Bank Corporation. As of June 30,
1994, Mellon Bank Corporation was the 24th largest bank holding company in the
United States in terms of total assets. Through its bank subsidiaries, it
operates 631 domestic retail banking locations including 432 branch offices.
Mellon Bank Corporation has 25 domestic representative offices. There are
international branches in Grand Cayman, British West Indies, London, England,
and two international representative offices in Tokyo, Japan and Hong Kong.
Mellon Bank has a banking subsidiary, Mellon Bank Canada, in Toronto. Mellon
Bank is a registered municipal securities dealer.
The Glass-Steagall Act of 1933 prohibits a national bank from engaging
in the business of issuing, underwriting, selling or distributing certain
securities. The activities of Mellon Bank and the Manager with regard to the
Fund may raise issues under these provisions. However, Mellon Bank has been
advised by its counsel that these activities are consistent with these
statutory and regulatory obligations. For more information on the Glass-
Steagall Act of 1933, see "Federal Law Affecting Mellon Bank" in the SAI.
Sandor Cseh, an officer of Mellon Bank and a Senior Vice President of
The Boston Company Asset Management, Inc., is the portfolio manager for the
Fund. Mr. Cseh is a portfolio manager at the Manager and has been employed by
the Manager since October 17, 1994. Mr. Cseh manages the international equity
group and serves as the Director of International Investments. Mr. Cseh was
President of Cseh International & Associates Inc., the international money
management division of Cashman, Farrell & Associates, and was a security
analyst with several banks before joining The Boston Company. Mr. Cseh holds
a Bachelor of Science degree in finance from the University of Delaware, and
is a Chartered Financial Analyst.
D. Kirk Henry, an officer of Mellon Bank and a Vice President of The
Boston Company Asset Management, Inc., serves as an international equity
portfolio manager of the Fund. Mr. Henry is a portfolio manager at the
Manager and has been employed by the Manager since October 17, 1994. Mr.
Henry was an Executive Vice President at Cseh International & Associates Inc.
and an international portfolio manager at Provident Capital Management, Inc.
before joining The Boston Company. Mr. Henry holds a Bachelor of Arts degree
from Stanford University, and received a Masters of Business Administration in
accounting/finance from the University of Chicago. He is also a Chartered
Financial Analyst.
Other Service Providers. Under a Custody and Fund Accounting Agreement,
Mellon Bank acts as custodian and fund accountant maintaining possession of
the Fund's investment securities and providing certain accounting and related
services.
The Shareholder Services Group, Inc., a subsidiary of First Data
Corporation ("FDC"), serves as transfer agent ("Transfer Agent") for the
Fund's Shares. The Transfer Agent is located at One American Express Plaza,
Providence, Rhode Island 02903.
Shares of the Fund are sold on a continuous basis by Premier, as the
Fund's sponsor and distributor. Premier is a registered broker-dealer with
principal offices at One Exchange Place, Boston, Massachusetts 02109. The
Dreyfus/Laurel Investment Series has entered into a distribution agreement
with Premier which provides that Premier has the exclusive right to distribute
Shares of the Fund. Premier may pay service and/or distribution fees to
Agents that assist customers in purchasing and servicing of Shares of the
Fund. (See "Distribution Plan."
Other Investment Policies.
Borrowing. The Fund is authorized, within specified limits, to borrow
money for temporary administrative purposes and to pledge its assets in
connection with such borrowings.
Covered Option Writing. From time to time, the Fund may write covered
put and call options on portfolio securities. The Fund could realize fees
(referred to as "premiums") for granting the rights evidenced by the options.
However, in return for the premium, the Fund forfeits the right to any
appreciation in the value of the underlying security while the option is
outstanding. A put option embodies the right of its purchaser to compel the
writer of the option to purchase from the option holder an underlying security
at the specified price at any time during the option period. In contrast, a
call option embodies the right of its purchaser to compel the writer of the
option to sell the option holder an underlying security at a specified price
at any time during the option period.
Upon the exercise of a put option written by the Fund, the Fund may
suffer a loss equal to the difference between the price at which the Fund is
required to purchase the underlying security and its market value at the time
of the option exercise, less the premium received for writing the option. Upon
the exercise of a call option written by the Fund, the Fund may suffer a loss
equal to the excess of the security's market value at the time of the option
exercise over the Fund's acquisition cost of the security, less the premium
received for writing the option.
Whenever the Fund writes a call option it will continue to own or have
the present right to acquire the underlying security for as long as it remains
obligated as the writer of the option. To support its obligation to purchase
the underlying security if a put option is exercised, the Fund will either (a)
deposit with the Fund's custodian in a segregated account, cash, U.S.
Government securities or other high grade debt obligations having a value at
least equal to the exercise price of the underlying securities or (b) continue
to own an equivalent number of puts of the same "series" (that is, puts on the
same underlying security having the same exercise prices and expiration dates
as those written by the Fund), or an equivalent number of puts of the same
"class" (that is, puts on the same underlying security) with exercise prices
greater than those that it has written (or, if the exercise prices of the puts
it holds are less than the exercise prices of those it has written, it will
deposit the difference with the Fund's custodian in a segregated account).
The Fund may engage in a closing purchase transaction to realize a
profit, to prevent an underlying security from being called or put or, in the
case of a call option, to unfreeze an underlying security (thereby permitting
its sale or the writing of a new option on the security prior to the
outstanding option's expiration). To effect a closing purchase transaction,
the Fund would purchase, prior to the holder's exercise of an option that the
Fund has written, an option of the same series as that on which the Fund
desires to terminate its obligation. The obligation of the Fund under an
option that it has written would be terminated by a closing purchase
transaction, but the Fund would not be deemed to own an option as the result
of the transaction. There can be no assurance that the Fund will be able to
effect closing purchase transactions at a time when it wishes to do so. To
facilitate closing purchase transactions, however, the Fund will ordinarily
write options only if a secondary market for the options exists on a national
securities exchange or in the over-the-counter market.
Currency Transactions. The Fund may engage in currency exchange
transactions in order to protect against uncertainty in the level or future
exchange rates on securities denominated in foreign currencies. The Fund will
conduct its currency exchange transactions either on a spot (i.e., cash) basis
at the rate prevailing in the currency exchange market, or through entering
into forward contracts to purchase or sell currencies. The Fund's dealings in
forward currency exchange contracts will be limited to hedging involving
either specific transactions or aggregate portfolio positions. A forward
currency contract involves an obligation to purchase or sell a specific
currency at a future date, which may be any fixed number of days from the date
of the contract agreed upon by the parties, at a price set at the time of the
contract. These contracts are entered into in the interbank market conducted
directly between currency traders (usually large commercial banks) and their
customers. Although such transactions are intended to minimize the risk of
loss due to a decline in the value of the hedged currency, at the same time,
they tend to limit any potential gain which might result should the value of
such currency increase.
Fixed-Income Securities Strategies. The Fund may invest in fixed-income
securities to achieve its investment objectives. In periods of declining
interest rates, the Fund's yield (its income from portfolio investments over a
stated period of time) may tend to be higher than prevailing market rates, and
in periods of rising interest rates, the yield of the Fund may tend to be
lower. Also, when interest rates are falling, the inflow of net new money to
the Fund from the continuous sale of its shares will likely be invested in
portfolio instruments producing lower yields than the balance of the Fund's
portfolio, thereby reducing the yield of the Fund. In periods of rising
interest rates, the opposite can be true. The NAV of a fund investing in
fixed-income securities also may change as general levels of interest rates
fluctuate. When interest rates increase, the value of a portfolio of fixed-
income securities can be expected to decline. Conversely, when interest rates
decline, the value of a portfolio of fixed-income securities can be expected
to increase.
Foreign Securities. The Fund may invest in securities of non-U.S. issuers
directly or in the form of
American Depository Receipts ("ADRs"), European Depository Receipts ("EDRs")
or similar securities
representing interests in the common stock of foreign issuers. ADRs are
receipts, typically issued by a U.S. bank or
trust company, which evidence ownership of underlying securities issued by a
foreign corporation. EDRs are
receipts issued in Europe which evidence a similar ownership arrangement.
Generally, ADRs, in registered form,
are designed for use in the U.S. securities markets and EDRs are designed for
use in European securities markets.
The underlying securities are not always denominated in the same currency as
the ADRs or EDRs. Although
investment in the form of ADRs or EDRs facilitates trading in foreign
securities, it does not mitigate the risks
associated with investing in foreign securities.
Investments in foreign securities incur higher costs than investments in U.S.
securities, including higher
costs in making securities transactions as well as foreign government taxes
which may reduce the investment
return of the Fund. In addition, foreign investments may include additional
risks associated with currency
exchange rates, less complete financial information about individual
companies, less market liquidity, and political
instability.
Although the Fund may invest in securities denominated in foreign currencies,
the Fund values its
securities and other assets in U.S. dollars. As a result, the NAV of the
Fund's Shares generally will fluctuate with
U.S. dollar exchange rates as well as with price changes of the Fund's
securities in the various local markets and
currencies. Thus, an increase in the value of the U.S. dollar compared to the
currencies in which the Fund makes
its investments could reduce the effect of increases and magnify the effect
of decreases in the price of the Fund's
securities in their local markets. Conversely, a decrease in the value of the
U.S. dollars will have the opposite effect
of magnifying the effect of increases and reducing the effect of decreases in
the prices of the Fund's exchange-rate
developments. In addition to favorable and unfavorable currency exchange-rate
developments, the Fund is subject
to the possible imposition of exchange control regulations or currency
blockages.
Futures And Options On Futures. The Fund may enter into futures
contracts and purchase and write options on future contracts as hedges when
deemed advisable by the Manager. The Fund may purchase and sell financial
futures contracts, including futures for stock indexes, and purchase and write
related options, that are traded on a United States exchange or board of
trade. These investments, if any, by the Fund will be made solely for the
purpose of hedging against changes in the value of its portfolio securities or
securities which the Fund intends to purchase due to anticipated changes in
interest rates and market conditions, and when the transactions are
economically appropriate to the reduction of risks inherent in the management
of the Fund. The use of futures contracts and options on futures contracts as
a hedging device involves several risks. There can be no assurance that there
will be a correlation between price movements in the underlying securities, on
the one hand, and price movements in the securities which are the subject of
the hedge, on the other hand. Positions in futures contracts and options on
futures contracts may be closed out only on an exchange or board of trade that
provides an active market for them, and there can be no assurance that a
liquid market will exist for the contract or the option at any particular
time. Losses incurred by hedging transactions and the costs of these
transactions will affect the Fund's performance. Successful use of futures
contracts by the Fund is subject to the ability of the Manager to correctly
predict movements in the direction of interest rates. The Fund may not
purchase or sell futures contracts or purchase options on futures if,
immediately thereafter, more than 33 1/3% of its net assets would be hedged.
In addition, the Fund may not enter into futures and related options contracts
for which aggregate initial margin deposits and premiums exceed 5% of the fair
market value of the Fund's assets, after taking into account unrealized
profits and unrealized losses on futures contracts into which it has entered.
Illiquid Securities. The Fund will not knowingly invest more that 15%
of the value of its net assets in illiquid securities, including time deposits
and repurchase agreements having maturities longer than seven days.
Securities that have readily available market quotations are not deemed
illiquid for purposes of this limitation (irrespective of any legal or
contractual restrictions on resale.) The Fund may invest in commercial
obligations issued in reliance on the so-called "private placement" exemption
from registration afforded by Section 4(2) of the Securities Act of 1933, as
amended ("Section 4(2) paper"). The Fund may also purchase securities that
are not registered under the Securities Act of 1933, as amended, but which can
be sold to qualified institutional buyers in accordance with Rule 144A under
that Act ("Rule 144A securities"). Section 4(2) paper is restricted as to
disposition under the federal securities laws, and generally is sold to
institutional investors (such as the Fund) that agree that they are purchasing
the paper for investment and not with a view to public distribution. Any
resale by the purchaser must be in an exempt transaction. Section 4(2) paper
normally is resold to other institutional investors like the Fund through or
with the assistance of the issuer or investment dealers who make a market in
the Section 4(2) paper, thus providing liquidity. Rule 144A securities
generally must be sold to other qualified institutional buyers.
Determinations as to the liquidity of investments in Section 4(2) paper and
Rule 144A securities will be made by the Board of Trustees. The Board will
consider availability of reliable price information and other relevant
information in making such determinations. If a particular investment in
Section 4(2) paper or Rule 144A securities is not determined to be liquid,
that investment will be included within the percentage limitation on
investment in illiquid securities. The ability to sell Rule 144A securities
to qualified institutional buyers is a recent development and it is not
possible to predict how this market will mature. Investing in Rule 144A
securities could have the effect of increasing the level of Fund illiquidity
to the extent that qualified institutional buyers become, for a time,
uninterested in purchasing these securities.
Lending Of Portfolio Securities From time to time, the Fund may lend
portfolio securities to brokers, dealers and other financial organizations.
Such loans will not exceed 33 1/3% of the Fund's total assets, taken at value.
Loans of portfolio securities by the Fund will be collateralized by cash,
letters of credit or securities issued or guaranteed by the U.S. Government or
its agencies which will be maintained at all times in an amount equal to at
least 100% of the current market value of the loaned securities.
Other Investment Companies. The Fund may invest in securities issued by other
investment companies to
the extent that such investments are consistent with its investment
objectives and policies and permissible under
the 1940 Act. As a shareholder of another investment company, the Fund would
bear, along with other
shareholders, its pro rata portion of the other investment company's expenses,
including advisory fees. These
expenses would be in addition to the advisory and other expenses that the
Fund bear directly in connection with its
own operations.
Repurchase Agreements. The Fund may engage in repurchase agreement
transactions in pursuit of its investment objectives. A repurchase agreement
involves the purchase of a security by the Fund and a simultaneous agreement
(generally with a bank or broker-dealer) to repurchase that security from the
Fund at a specified price and date or upon demand. This technique offers a
method of earning income on idle cash. A risk associated with repurchase
agreements is the failure of the seller to repurchase the securities as
agreed, which may cause the Fund to suffer a loss if the market value of such
securities declines before they can be liquidated on the open market.
Repurchase agreements with a duration of more than seven days are considered
illiquid securities and are subject to the limit on illiquid securities stated
above.
Short-Term Securities The Fund may invest in short-term securities such
as U.S. Government securities and other high-grade, short-term money market
instruments, including repurchase agreements, time deposits, certificates of
deposit, bankers' acceptances and high-grade commercial paper for temporary
defensive purposes when the Manager determines that market conditions so
warrant. In addition, the Fund may invest up to 10% of its assets in such
securities on a regular basis to maintain liquidity for purposes of redeeming
shares and meeting other cash obligations of the Fund. The Fund may also
invest in these securities for other purposes consistent with achieving its
investment objectives.
Stock Index Options. The Fund may purchase and write exchange-listed
put and call options on stock indexes to hedge against risks of market-wide
price movements. A stock index measures the movement of a certain group of
stocks by assigning relative values to the common stocks included in the
index. (Examples of well-known stock indexes are the Standard & Poor's 500
Composite Stock Price Index and the NYSE Composite Index). Options on stock
indexes are similar to options on securities. However, because options on
stock indexes do not involve the delivery of an underlying security, the
option represents the holder's right to obtain from the writer in cash a fixed
multiple of the amount by which the exercise price exceeds (in the case of a
put) or is less than (in the case of a call) the closing value of the
underlying index on the exercise date.
The advisability of using stock index options to hedge against the risk
of market-wide movements will depend on the extent of diversification of the
Fund's stock investments and the sensitivity of its stock investments to
factors influencing the underlying index. The effectiveness of purchasing or
writing stock index options as a hedging technique will depend upon the extent
to which price movements in the portion of the portfolio being hedged
correlate with price movements in the stock index selected.
When the Fund writes an option on a stock index, it will deposit cash or
cash equivalents or a combination of both in an amount equal to the market
value of the option, in a segregated account with the Fund's custodian, and
will maintain the account while the option is open.
U.S. Government Securities. The Fund may invest in obligations issued or
guaranteed as to both principal
and interest by the U.S. Government or backed by the full faith and credit of
the United States. In addition to direct
obligations of the U.S. Treasury, these include securities issued or
guaranteed by the Federal Housing
Administration, Farmers Home Administration, Export-Import Bank of the United
States, Small Business
Administration, Government National Mortgage Association, Federal National
Mortgage Association, General
Services Administration and Maritime Administration. Investments may also be
made in U.S. Government
securities that do not carry the full faith and credit guarantee, such as
those issued by the Federal National
Mortgage Association, the Federal Home Loan Mortgage Association, or other
instrumentalities
When Issued Securities And Delayed Delivery Transactions. To secure
advantageous prices or yields, the
Fund may purchase U.S. Government securities on a when-issued basis or may
purchase or sell securities for
delayed delivery. In such transactions, delivery of the securities occurs
beyond the normal settlement periods, but
no payment or delivery is made by the Fund prior to the actual delivery or
payment by the other party to the
transaction. The purchase of securities on a when-issued or delayed delivery
basis involves the risk that, as a result
of an increase in yields available in the market place, the value of the
securities purchased will decline prior to the
settlement date. The sale of securities for delayed delivery involves the
risk that the prices available in the market
on the delivery date may be greater than those obtained in the sale
transactions. The Fund will establish a
segregated account consisting of cash, U.S. Government securities or other
high-grade debt obligations in an
amount equal to the amounts of its when-issued and delayed delivery commitments.
Portfolio Turnover. While securities are purchased for the Fund on the
basis of potential for capital appreciation, in the past the portfolio
turnover rate of the Fund has exceeded 100% and may exceed 100% in the future.
A portfolio turnover rate of 100% would occur, for example, if all these
securities held by the Fund were replaced once in a period of one year. In
past years the Fund's rate of portfolio turnover exceeded that of certain
other mutual funds with the same investment objective. A higher rate of
portfolio turnover involves correspondingly greater brokerage commissions and
other expenses which must be borne directly by the Fund and, thus, indirectly
by its shareholders. In addition, a high rate of portfolio turnover may
result in the realization of larger amounts of short-term capital gains which,
when distributed to the Fund's shareholders, are taxable to them as ordinary
income. (See "Distributions" and "Taxes.") Nevertheless, security
transactions for the Fund will be based only upon investment considerations
and will not be limited by any other considerations when the Manager deems it
appropriate to make changes in the Fund's assets.
Limiting Investment Risks. The Fund is subject to a number of
investment limitations. Certain limitations are matters of fundamental policy
and may not be changed without the affirmative vote of the holders of a
majority of the Fund's outstanding Shares. The SAI describes all of the
Fund's fundamental and non-fundamental restrictions.
The investment objectives, policies, restrictions, practices and
procedures of the Fund, unless otherwise specified, may be changed without
shareholder approval. If the Fund's investment objectives, policies,
restrictions, practices or procedures change, shareholders should consider
whether the Fund remains an appropriate investment in light of their then
current position and needs.
In order to permit the sale of the Fund's Shares in certain states, the
Fund may make commitments more restrictive than the investment policies and
restrictions described in this Prospectus and the SAI. Should the Fund
determine that any such commitment is no longer in the best interests of the
Fund, it may consider terminating sales of its Shares in the states involved.
Master/Feeder Option. The Dreyfus/Laurel Investment Series may in the
future seek to achieve the Fund's investment objectives by investing all of
the Fund's assets in another investment company having the same investment
objectives and substantially the same investment policies and restrictions as
those applicable to the Fund. Shareholders of the Fund will be given at least
30 days' prior notice of any such investment. Such investment would be made
only if the Trustees determine it to be in the best interest of the Fund and
its shareholders. In making that determination, the Trustees will consider,
among other things, the benefits to shareholders and/or the opportunity to
reduce costs and achieve operational efficiencies. Although the Fund believes
that the Trustees will not approve an arrangement that is likely to result in
higher costs, no assurance is given that costs will be materially reduced if
this option is implemented.
Distribution Plan (Investor Shares Only). Investor Shares are subject
to a Distribution Plan ("Plan") adopted pursuant to Rule 12b-1 under the 1940
Act ("Rule 12b-1"). The Investor Shares of the Fund may bear some of the cost
of selling those Shares under the Plan. The Plan allows the Fund to spend
annually up to 0.25% of its average daily net assets attributable to Investor
Shares to compensate Dreyfus Service Corporation, an affiliate of the Manager,
for shareholder servicing activities and Premier for shareholder servicing
activities and for activities or expenses primarily intended to result in the
sale of Investor Shares of the Fund. The Plan allows Premier to make payments
from the Rule 12b-1 fees it collects from the Fund to compensate Agents that
have entered into Selling Agreements ("Agreements") with Premier. Under the
Agreements, the Agents are obligated to provide distribution related services
with regard to the Fund and or shareholder services to the Agent's clients
that own Investor Shares of the Fund.
The Fund and Premier may suspend or reduce payments under the Plan at
any time, and payments are subject to the continuation of the Fund's Plan and
the Agreements described above. From time to time, the Agents, Premier and
the Fund may agree to voluntarily reduce the maximum fees payable under the
Plan. See the SAI for more details on the Plan.
Potential investors should read this Prospectus in light of the terms
governing Agreements with their Agents. An Agent entitled to receive
compensation for selling and servicing the Fund's Shares may receive different
compensation with respect to one class of Shares over another.
FOR MORE INFORMATION
FUND INFORMATION AND PROSPECTUSES
Call 1-800-548-2868
Please read the prospectus before you invest or send money
TO INVEST, REDEEM AND EXCHANGE
Call 1-800-548-2868 (for overseas, call collect (401) 455-3476)
9:00 a.m. to 5:00 p.m., Eastern time
Monday through Friday
Or Write: The Dreyfus Family of Funds
P.O. Box 9692
Providence, Rhode Island 02940-9830
YIELD AND SHARE PRICE INFORMATION
1-800-548-2868
24 hours a day, 7 days a week
The Dreyfus Family of Funds
One Exchange Place
Boston, Massachusetts 02109
tbc\tbclaure\merger\prospect\intfnd3
Does not include fees and expenses of the non-interested Trustees (including
counsel). The investment manager
is contractually required to reduce its Management Fee in an amount equal to
the Fund's allocable portion of such
fees and expenses, which are estimated to be 0.02% of the Fund's net assets.
(See "Management.")
(1) 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 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 years are based upon a Retail Share outstanding.
(2) Effective October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment manager. From April 4, 1994 to
October 16, 994, 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.
* The Fund commenced operations on October 12, 1988.
** Annualized expense ratios before voluntary waiver of fees and/or
reimbursement of expenses for the years ended August
31, 1994, 1993 and 1992 were 4.21%, 3.15% and 2.11%, respectively.
*** Net investment income before waiver of fees and/or reimbursement of
expenses by investment adviser for the years
ended August 31, 1994, 1993 and 1992 were ($0.21), ($0.10) and $0.00,
respectively.
+ Annualized
++ The annualized operating expense ratio excludes interest expense. The
annualized ratio including interest expense as
1.80% for the year ended August 31, 1993.
+++ Total return represents aggregate total return for the periods indicated.
# Per share amounts have been calculated suing the monthly average share
method, which more appropriately presents the
per share data for the year since the use of the undistributed method does
not accord with results of operations.
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