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Dreyfus Premier Fixed Income Funds – ‘N-CSR’ for 4/30/08

On:  Friday, 6/27/08, at 11:38am ET   ·   Effective:  6/27/08   ·   For:  4/30/08   ·   Accession #:  797073-8-14   ·   File #:  811-04748

Previous ‘N-CSR’:  ‘N-CSR’ on 12/28/07 for 10/31/07   ·   Latest ‘N-CSR’:  This Filing

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  As Of                Filer                Filing    For·On·As Docs:Size

 6/27/08  Dreyfus Premier Fixed Income Fds  N-CSR       4/30/08    4:2.6M
          → Dreyfus Premier Core Bond Fund Class A (DSINX) — Class B (DRCBX) — Class C (DRCCX) — Class I (DRCRX)

Certified Annual Shareholder Report of a Management Investment Company   —   Form N-CSR
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSR       Semi-Annual Report                                  HTML    665K 
 4: N-CSR       PDF Attachment -- pcbncsr                            PDF   1.31M 
 3: EX-99.906CERT  Certification Required by Section 906            HTML      9K 
 2: EX-99.CERT  Certification of Required by Rule 30A-2             HTML     17K 


N-CSR   —   Semi-Annual Report


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  form031  
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
INVESTMENT COMPANIES

Investment Company Act file number    811-4748 

Dreyfus Premier Fixed Income Funds
(Exact name of Registrant as specified in charter) 

c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices)    (Zip code) 

Michael A. Rosenberg, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service) 

Registrant's telephone number, including area code:    (212) 922-6000 

Date of fiscal year end:    10/31 

Date of reporting period:    04/30/08 


FORM N-CSR

Item 1.    Reports to Stockholders. 


Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value


Contents
 
    THE FUND 


2    A Letter from the CEO 
3    Discussion of Fund Performance 
4    Understanding Your Fund’s Expenses 
4    Comparing Your Fund’s Expenses 
With Those of Other Funds
5    Statement of Investments 
23    Statement of Financial Futures 
23    Statement of Options Written 
24    Statement of Assets and Liabilities 
25    Statement of Operations 
26    Statement of Changes in Net Assets 
28    Financial Highlights 
36    Notes to Financial Statements 
51    Proxy Results 
FOR MORE INFORMATION

    Back Cover 


Dreyfus Premier 
Core Bond Fund 

The    Fund 

A LETTER FROM THE CEO

Dear Shareholder:

We present to you this last semiannual report for Dreyfus Premier Core Bond Fund, covering the six-month period from November 1, 2007, through April 30, 2008.

Although the U.S. economy has teetered on the brink of recession and the financial markets encountered heightened volatility due to an ongoing credit crisis over the reporting period, we recently have seen signs of potential improvement.The Federal Reserve Board’s aggressive easing of monetary policy and innovative measures to inject liquidity into the banking system appear to have reassured many investors. At Dreyfus, we believe that the current economic downturn is likely to be relatively brief by historical standards, but the ensuing recovery may be gradual and prolonged as financial deleveraging and housing price deflation continue to weigh on economic activity.

The implications of our economic outlook for the U.S.Treasury and other bond markets generally are positive. Selling pressure among overleveraged investors has created attractive values in a number of fixed-income asset classes, including some that currently offer highly competitive yields.Your financial advisor can help you assess current risks and take advantage of these longer-term opportunities within the context of your overall investment portfolio.

Thank you for your continued confidence and support.

2


DISCUSSION OF FUND PERFORMANCE

For the period of November 1, 2007, through April 30, 2008, as provided by Kent Wosepka, Portfolio Manager

Fund and Market Performance Overview

For the six-month period ended April 30, 2008, Class A, Class B, Class C and Class I shares of Dreyfus Premier Core Bond Fund achieved total returns of 1.15%, 0.90%, 0.70% and 1.29%, respectively.1 In comparison, the fund’s benchmark, the Lehman Brothers U.S. Aggregate Index (the “Index”), achieved a total return of 4.08% for the same period.2

Although many sectors of the bond market were negatively affected by an intensifying credit crisis, and despite increased volatility among corporate and mortgage-backed securities, the fund was able to produce positive absolute returns. However, a “flight to quality” effectively boosted prices of U.S.Treasury securities, which in turn enabled the Index to produce a significantly better return than the fund during the reporting period.

On May 15, 2008, the fund completed an Agreement and Plan of Reorganization, which provided for, among other things, the transfer of the fund’s assets to Dreyfus Premier Intermediate Term Income Fund in a tax-free exchange for shares of that fund.The fund has since terminated its operations and your account has been transferred to Dreyfus Premier Intermediate Term Income Fund.

May 16, 2008

1    Total return includes reinvestment of dividends and any capital gains paid, and does not take into 
    consideration the maximum initial sales charge in the case of Class A shares, or the applicable 
    contingent deferred sales charges imposed on redemptions in the case of Class B and Class C 
    shares. Had these charges been reflected, returns would have been lower. Effective June 1, 2007, 
    Class R shares of the fund were renamed Class I shares. Past performance is no guarantee of 
    future results. Share price, yield and investment return fluctuate such that upon redemption, fund 
    shares may be worth more or less than their original cost. Return figures provided reflect the 
    absorption of certain fund expenses by The Dreyfus Corporation pursuant to an agreement in 
    effect through the fund’s merger on May 15, 2008. Had these expenses not been absorbed, the 
    fund’s returns would have been lower. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital 
    gain distributions.The Lehman Brothers U.S. Aggregate Index is a widely accepted, unmanaged 
    total return index of corporate, U.S. government and U.S. government agency debt instruments, 
    mortgage-backed securities and asset-backed securities with an average maturity of 1-10 years. 

The Fund 3


UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Premier Core Bond Fund from November 1, 2007 to April 30, 2008. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment             
assuming actual returns for the six months ended April 30, 2008         
    Class A    Class B    Class C    Class I 





Expenses paid per $1,000     $ 4.85    $ 7.34    $ 8.58    $ 3.60 
Ending value (after expenses)    $1,011.50    $1,009.00    $1,007.00    $1,012.90 

COMPARING YOUR FUND’S EXPENSES 
WITH THOSE OF OTHER FUNDS (Unaudited) 

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment             
assuming a hypothetical 5% annualized return for the six months ended April 30, 2008 
    Class A    Class B    Class C    Class I 





Expenses paid per $1,000     $ 4.87    $ 7.37    $ 8.62    $ 3.62 
Ending value (after expenses)    $1,020.04    $1,017.55    $1,016.31    $1,021.28 

Expenses are equal to the fund’s annualized expense ratio of .97% for Class A, 1.47% for Class B, 1.72% for Class C and .72% for Class I, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

4


STATEMENT OF INVESTMENTS 
April 30, 2008 (Unaudited) 

    Coupon    Maturity    Principal     
Bonds and Notes—133.9%    Rate (%)    Date    Amount ($)    Value ($) 





Asset-Backed Ctfs./                 
Auto Receivables—3.6%                 
AmeriCredit Automobile Receivables             
Trust, Ser. 2006-BG, Cl. A3    5.21    10/6/11    3,258,617    3,181,956 
Americredit Prime Automobile                 
Receivables Trust,                 
Ser. 2007-1, Cl. E    6.96    3/8/16    2,980,000 a    2,797,475 
Capital Auto Receivables Asset                 
Trust, Ser. 2005-1, Cl. D    6.50    5/15/12    1,100,000 a    1,076,969 
Capital Auto Receivables Asset                 
Trust, Ser. 2007-1, Cl. D    6.57    9/16/13    708,000 a    604,937 
Capital One Auto Finance Trust,                 
Ser. 2006-C, Cl. A3A    5.07    7/15/11    2,313,623    2,260,237 
Capital One Auto Finance Trust,                 
Ser. 2007-C, Cl. A2A    5.29    5/17/10    455,000    441,470 
Capital One Auto Finance Trust,                 
Ser. 2006-A, Cl. A3    5.33    11/15/10    625,467    620,564 
Ford Credit Auto Owner Trust,                 
Ser. 2005-B, Cl. B    4.64    4/15/10    1,985,000    1,982,364 
Ford Credit Auto Owner Trust,                 
Ser. 2005-C, Cl. C    4.72    2/15/11    770,000    776,571 
Ford Credit Auto Owner Trust,                 
Ser. 2007-A, Cl. D    7.05    12/15/13    1,700,000 a    1,273,769 
Ford Credit Auto Owner Trust,                 
Ser. 2006-B, Cl. D    7.12    2/15/13    900,000 a    787,369 
GS Auto Loan Trust,                 
Ser. 2004-1, Cl. A4    2.65    5/16/11    80,860    80,849 
WFS Financial Owner Trust,                 
Ser. 2005-2, Cl. B    4.57    11/19/12    2,560,000    2,575,830 
                18,460,360 
Asset-Backed Ctfs./Credit Cards—1.1%             
American Express Credit Account                 
Master Trust, Ser. 2007-6, Cl. C    3.11    1/15/13    2,350,000 a,b    2,098,898 
Bank One Issuance Trust,                 
Ser. 2003-C4, Cl. C4    3.75    2/15/11    3,500,000 b    3,502,055 
                5,600,953 
Asset-Backed Ctfs./                 
Home Equity Loans—1.9%                 
Bayview Financial Acquisition                 
Trust, Ser. 2005-B, Cl. 1A6    5.21    4/28/39    2,529,819 b    2,279,367 

The Fund 5


STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Asset-Backed Ctfs./                 
Home Equity Loans (continued)                 
Citigroup Mortgage Loan Trust,                 
Ser. 2005-WF1, Cl. A5    5.01    2/25/35    2,314,785 b    2,002,266 
Morgan Stanley Mortgage Loan                 
Trust, Ser. 2006-15XS, Cl. A6B    5.83    11/25/36    955,000 b    730,026 
Popular ABS Mortgage Pass-Through             
Trust, Ser. 2005-6, Cl. M1    5.91    1/25/36    2,100,000 b    1,646,497 
Residential Asset Mortgage                 
Products, Ser. 2005-RS2, Cl. M2    3.38    2/25/35    2,105,000 b    1,780,602 
Residential Asset Mortgage                 
Products, Ser. 2005-RS2, Cl. M3    3.45    2/25/35    600,000 b    484,483 
Residential Asset Securities,                 
Ser. 2005-AHL2, Cl. M3    3.37    10/25/35    555,000 b    250,809 
Residential Asset Securities,                 
Ser. 2003-KS7, Cl. MI3    5.75    9/25/33    900,089 b    482,408 
Residential Funding Mortgage                 
Securities II, Ser. 2006-HSA2,                 
Cl. AI1    3.01    3/25/36    187,334 b    162,176 
                9,818,634 
Asset-Backed Ctfs./                 
Manufactured Housing—.8%                 
Green Tree Financial,                 
Ser. 1994-7, Cl. M1    9.25    3/15/20    1,449,435    1,476,768 
Origen Manufactured Housing,                 
Ser. 2005-B, Cl. A2    5.25    12/15/18    1,500,000    1,506,707 
Origen Manufactured Housing,                 
Ser. 2005-B, Cl. M2    6.48    1/15/37    1,000,000    874,393 
                3,857,868 
Automobile Manufacturers—.7%                 
Daimler Finance North America,                 
Gtd. Notes, Ser. E    5.44    10/31/08    3,745,000 b    3,735,222 
Automotive, Trucks & Parts—.7%                 
ERAC USA Finance,                 
Notes    3.15    4/30/09    965,000 a,b    961,883 
ERAC USA Finance,                 
Gtd. Notes    6.38    10/15/17    1,440,000 a    1,303,383 
ERAC USA Finance,                 
Notes    7.95    12/15/09    1,095,000 a    1,142,714 

6


    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Automotive, Trucks & Parts (continued)             
Goodyear Tire & Rubber,                 
Gtd. Notes    8.66    12/1/09    380,000 b    382,375 
                3,790,355 
Banks—9.7%                 
BAC Capital Trust XIV,                 
Bank Gtd. Notes    5.63    12/31/49    3,205,000 b    2,576,564 
Bank of America,                 
Jr. Sub. Notes    8.00    12/29/49    2,795,000 b    2,848,348 
Barclays Bank,                 
Sub. Notes    5.93    9/29/49    1,485,000 a,b    1,255,860 
Barclays Bank,                 
Sub. Bonds    7.70    4/29/49    1,380,000 a,b    1,427,941 
Capital One Financial,                 
Sr. Unsub. Notes    3.27    9/10/09    2,500,000 b    2,277,792 
Chevy Chase Bank,                 
Sub. Notes    6.88    12/1/13    1,710,000    1,605,262 
Colonial Bank,                 
Sub. Notes    6.38    12/1/15    1,530,000    1,295,454 
Colonial Bank,                 
Sub. Notes    8.00    3/15/09    540,000    548,601 
Glintnir Banki,                 
Notes    2.87    10/15/08    1,245,000 a,b    1,233,702 
Industrial Bank of Korea,                 
Sub. Notes    4.00    5/19/14    3,305,000 a,b    3,263,595 
J.P. Morgan & Co.,                 
Sub. Notes    6.25    1/15/09    1,155,000    1,173,608 
Landsbanki Islands,                 
Sr. Notes    3.79    8/25/09    3,225,000 a,b    2,940,797 
Marshall & Ilsley Bank,                 
Sub. Notes, Ser. BN    3.33    12/4/12    2,650,000 b    2,358,267 
Marshall & Ilsley,                 
Sr. Unscd. Notes    5.63    8/17/09    2,945,000    2,943,869 
Royal Bank of Scotland Group,                 
Jr. Sub. Bonds    6.99    10/29/49    1,500,000 a,b    1,379,097 
Sovereign Bancorp,                 
Sr. Unscd. Notes    2.83    3/23/10    1,850,000 b    1,584,464 
Sovereign Bancorp,                 
Sr. Unscd. Notes    3.37    3/1/09    2,965,000 b    2,715,792 

The Fund 7


STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Banks (continued)                 
Sumitomo Mitsui Banking,                 
Sub. Notes EUR    4.38    7/29/49    700,000 b,c    889,496 
Sumitomo Mitsui Banking,                 
Sub. Notes    5.63    7/29/49    970,000 a,b    876,052 
SunTrust Preferred Capital I,                 
Bank Gtd. Notes    5.85    12/31/49    3,125,000 b    2,376,809 
UBS AG Stamford CT,                 
Sr. Unscd. Notes    5.75    4/25/18    1,440,000    1,440,478 
USB Capital IX,                 
Gtd. Notes    6.19    4/15/49    6,410,000 b    4,874,638 
Wachovia,                 
Notes    5.50    5/1/13    1,405,000    1,410,139 
Wells Fargo Bank,                 
Sub. Notes    7.55    6/21/10    1,870,000    2,005,956 
Western Financial Bank,                 
Sub. Debs.    9.63    5/15/12    2,390,000    2,517,726 
                49,820,307 
Building & Construction—.6%                 
D.R. Horton,                 
Gtd. Notes    5.88    7/1/13    1,870,000    1,729,750 
Masco,                 
Sr. Unscd. Notes    3.20    3/12/10    1,620,000 b    1,503,472 
                3,233,222 
Chemicals—.3%                 
RPM International,                 
Sr. Unscd. Notes    4.45    10/15/09    1,415,000    1,400,151 
Commercial &                 
Professional Services—.8%                 
Donnelley (R.R.) and Sons,                 
Sr. Unscd. Notes    5.63    1/15/12    1,450,000    1,443,924 
Donnelley (R.R.) and Sons,                 
Sr. Unscd. Notes    6.13    1/15/17    2,735,000    2,670,025 
                4,113,949 
Commercial Mortgage                 
Pass-Through Ctfs.—6.0%                 
Bayview Commercial Asset Trust,                 
Ser. 2006-SP2, Cl. A    3.18    1/25/37    2,082,911 a,b    1,675,702 
Bayview Commercial Asset Trust,                 
Ser. 2005-3A, Cl. A2    3.30    11/25/35    1,857,011 a,b    1,563,882 

8


    Coupon    Maturity    Principal         
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Commercial Mortgage                     
Pass-Through Ctfs. (continued)                     
Bayview Commercial Asset Trust,                     
Ser. 2003-2, Cl. A    3.48    12/25/33    580,792 a,b      526,043 
Bayview Commercial Asset Trust,                     
Ser. 2006-1A, Cl. M6    3.54    4/25/36    379,539 a,b      321,491 
Bayview Commercial Asset Trust,                     
Ser. 2005-4A, Cl. M5    3.55    1/25/36    802,017 a,b      519,459 
Bayview Commercial Asset Trust,                     
Ser. 2004-1, Cl. M2    4.10    4/25/34    228,633 a,b      163,701 
Bayview Commercial Asset Trust,                     
Ser. 2006-2A, Cl. B3    5.60    7/25/36    306,813 a,b      164,912 
Bayview Commercial Asset Trust,                     
Ser. 2005-3A, Cl. B3    5.90    11/25/35    457,070 a,b      252,531 
Bear Stearns Commercial Mortgage                     
Securities, Ser. 2004-PWR5,                     
Cl. A2    4.25    7/11/42    1,506,474        1,497,895 
Bear Stearns Commercial Mortgage                     
Securities, Ser. 2005-T18                     
Cl. A2    4.56    2/13/42    1,900,000 b      1,893,225 
Capco America Securitization,                     
Ser. 1998-D7, Cl. A1B    6.26    10/15/30    529,406        531,485 
Credit Suisse/Morgan Stanley                     
Commercial Mortgage Certificates,                     
Ser. 2006-HC1A, Cl. A1    2.91    5/15/23    3,119,322 a,b      2,943,988 
Crown Castle Towers,                     
Ser. 2005-1A, Cl. D    5.61    6/15/35    1,815,000 a      1,715,611 
Crown Castle Towers,                     
Ser. 2006-1A, Cl. D    5.77    11/15/36    960,000 a      869,491 
Global Signal Trust,                     
Ser. 2006-1, Cl. D    6.05    2/15/36    2,275,000 a      2,146,576 
Global Signal Trust,                     
Ser. 2006-1, Cl. E    6.50    2/15/36    550,000 a      518,512 
GMAC Commercial Mortgage                     
Securities, Ser. 2003-C3, Cl. A2    4.22    4/10/40    1,475,000        1,468,309 
Goldman Sachs Mortgage Securities                     
Corporation II, Ser. 2007-EOP, Cl. F    3.22    3/6/20    2,770,000 a,b      2,593,374 
Goldman Sachs Mortgage Securities                     
Corporation II, Ser. 2007-EOP, Cl. G    3.26    3/6/20    1,545,000 a,b      1,403,249 
Goldman Sachs Mortgage Securities                     
Corporation II, Ser. 2007-EOP, Cl. K    3.79    3/6/20    995,000 a,b      808,862 

The Fund 9


STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Commercial Mortgage                 
Pass-Through Ctfs. (continued)                 
Goldman Sachs Mortgage Securities                 
Corporation II, Ser. 2007-EOP, Cl. L    4.04    3/6/20    3,335,000 a,b    2,834,750 
Nationslink Funding,                 
Ser. 1998-2, Cl. A2    6.48    8/20/30    243,887    243,352 
SBA CMBS Trust,                 
Ser. 2006-1A, Cl. D    5.85    11/15/36    890,000 a    802,842 
WAMU Commercial Mortgage                 
Securities Trust,                 
Ser. 2003-C1A, Cl. A    3.83    1/25/35    3,024,333 a    2,976,033 
                30,435,275 
Diversified Financial Services—16.4%             
Ameriprise Financial,                 
Jr. Sub. Notes    7.52    6/1/66    1,590,000 b    1,470,686 
Amvescap,                 
Gtd. Notes    5.63    4/17/12    3,165,000    3,096,718 
Block Financial,                 
Gtd. Notes    7.88    1/15/13    3,170,000    3,409,364 
Capmark Financial Group,                 
Gtd. Notes    5.88    5/10/12    4,095,000 a    3,405,210 
CIT Group,                 
Sr. Unscd. Notes    3.22    8/15/08    2,820,000 b,d    2,753,617 
Citigroup,                 
Sr. Unscd. Notes    5.50    4/11/13    7,655,000    7,709,886 
Credit Suisse Guernsey,                 
Jr. Sub. Notes    5.86    5/29/49    880,000 b    746,083 
FCE Bank,                 
Sr. Unscd. Notes EUR    5.73    9/30/09    2,155,000 b,c    3,149,437 
Ford Motor Credit,                 
Sr. Unscd. Notes    5.80    1/12/09    2,675,000    2,616,064 
Ford Motor Credit,                 
Sr. Unscd. Notes    7.38    10/28/09    1,705,000    1,641,838 
Fuji JGB Investment,                 
Sub. Bonds    9.87    12/29/49    1,620,000 a,b    1,624,457 
General Electric Capital,                 
Sr. Unscd. Notes    5.63    5/1/18    4,060,000    4,109,297 
Goldman Sachs Capital II,                 
Gtd. Bonds    5.79    12/29/49    1,825,000 b    1,377,811 
Goldman Sachs Group,                 
Sub. Notes    6.75    10/1/37    2,800,000    2,752,355 

10


    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Diversified Financial                 
Services (continued)                 
HSBC Finance,                 
Sr. Notes    3.15    9/14/12    4,195,000 b,d    3,885,136 
Janus Capital Group,                 
Sr. Unscd. Notes    6.25    6/15/12    2,125,000    2,116,761 
Jefferies Group,                 
Sr. Unscd. Notes    7.75    3/15/12    1,050,000    1,114,271 
Kaupthing Bank,                 
Sr. Notes    3.41    1/15/10    2,960,000 a,b    2,479,784 
Lehman Brothers Holdings,                 
Sub. Notes    6.88    7/17/37    1,925,000    1,790,007 
Leucadia National,                 
Sr. Unscd. Notes    7.00    8/15/13    1,520,000    1,512,400 
Lincoln National,                 
Jr. Sub. Bonds    6.05    4/20/67    3,350,000 b    2,882,655 
LVB Acquisition Merger,                 
Gtd. Bonds    11.63    10/15/17    1,075,000 a    1,147,562 
MBNA Capital A,                 
Bank Gtd. Cap. Secs., Ser. A    8.28    12/1/26    1,300,000    1,321,146 
Merrill Lynch & Co.,                 
Sr. Unscd. Notes, Ser. C    3.32    2/5/10    887,000 b    847,871 
Merrill Lynch & Co.,                 
Sr. Unscd. Notes, Ser. C    4.25    2/8/10    4,522,000    4,422,729 
Merrill Lynch & Co.,                 
Sr. Unscd. Notes    6.05    8/15/12    1,840,000    1,836,337 
Morgan Stanley,                 
Sr. Unscd. Notes    3.88    1/15/09    5,160,000    5,162,198 
Morgan Stanley,                 
Sr. Unscd. Notes    5.75    8/31/12    505,000    506,759 
Morgan Stanley,                 
Sr. Unscd. Notes    6.60    4/1/12    710,000    726,654 
SB Treasury,                 
Jr. Sub. Bonds    9.40    12/29/49    3,330,000 a,b    3,354,216 
SLM,                 
Sr. Unscd. Notes, Ser. A    3.06    7/27/09    3,105,000 b    2,873,140 
SLM,                 
Notes, Ser. A    4.50    7/26/10    1,350,000    1,204,932 
Tokai Preferred Capital,                 
Bonds    9.98    12/29/49    3,115,000 a,b    3,124,367 

The Fund 11


STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Diversified Financial                 
Services (continued)                 
WEA Finance,                 
Sr. Notes    7.13    4/15/18    1,255,000 a    1,300,939 
Windsor Financing,                 
Scd. Notes    5.88    7/15/17    743,537 a    793,046 
                84,265,733 
Electric Utilities—4.3%                 
AES,                 
Sr. Unscd. Notes    8.88    2/15/11    950,000 d    1,009,375 
AES,                 
Sr. Unscd. Notes    9.38    9/15/10    460,000    491,625 
Cinergy,                 
Sr. Unscd. Bonds    6.53    12/16/08    1,405,000    1,425,417 
Dominion Resources,                 
Sr. Unscd. Notes, Ser. B    3.25    11/14/08    1,725,000 b    1,717,029 
Enel Finance International,                 
Gtd. Bonds    6.25    9/15/17    3,700,000 a    3,817,031 
Energy Future Holdings,                 
Gtd. Notes    10.88    11/1/17    860,000 a    920,200 
FirstEnergy,                 
Sr. Unscd. Notes, Ser. B    6.45    11/15/11    3,530,000    3,668,757 
National Grid,                 
Sr. Unscd. Notes    6.30    8/1/16    1,345,000    1,376,386 
Niagara Mohawk Power,                 
Sr. Unscd. Notes, Ser. G    7.75    10/1/08    1,395,000    1,415,720 
NiSource Finance,                 
Gtd. Notes    3.66    11/23/09    2,030,000 b    1,970,223 
Nisource Finance,                 
Gtd. Notes    6.40    3/15/18    735,000    725,764 
Ohio Power,                 
Sr. Unscd. Notes    2.91    4/5/10    1,605,000 b    1,551,302 
Pacific Gas & Electric,                 
Sr. Unscd. Notes    6.35    2/15/38    860,000    893,370 
Pepco Holdings,                 
Sr. Unscd. Notes    3.70    6/1/10    1,180,000 b    1,176,635 
                22,158,834 

12


    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Environmental Control—.8%                 
Allied Waste North America,                 
Sr. Scd. Notes, Ser. B    5.75    2/15/11    155,000    154,225 
Oakmont Asset Trust,                 
Notes    4.51    12/22/08    1,630,000 a    1,639,345 
USA Waste Services,                 
Sr. Unscd. Notes    7.00    7/15/28    1,150,000    1,172,991 
Waste Management,                 
Sr. Unscd. Notes    6.50    11/15/08    1,280,000    1,299,379 
                4,265,940 
Food & Beverages—1.0%                 
Delhaize Group,                 
Sr. Unsub. Notes    6.50    6/15/17    805,000    851,093 
H.J. Heinz,                 
Sr. Unscd. Notes    6.43    12/1/20    2,250,000 a    2,277,814 
Kraft Foods,                 
Sr. Unscd. Notes    6.88    2/1/38    855,000    889,219 
Kroger,                 
Gtd. Notes    6.15    1/15/20    865,000    902,693 
Safeway,                 
Sr. Unscd. Notes    6.35    8/15/17    260,000    276,740 
                5,197,559 
Foreign/Governmental—2.7%                 
Arab Republic of Egypt,                 
Unsub. Notes EGP    8.75    7/18/12    5,070,000 a,c    953,575 
Banco Nacional de Desenvolvimento                 
Economico e Social, Unsub. Notes    5.33    6/16/08    2,655,000 b    2,661,637 
Republic of Argentina,                 
Sr. Unscd. Bonds    3.09    8/3/12    11,850,000 b    6,419,737 
Russian Federation,                 
Unsub. Bonds    8.25    3/31/10    3,364,677 a    3,528,705 
                13,563,654 
Health Care—.6%                 
HCA,                 
Sr. Unscd. Notes    6.30    10/1/12    725,000    683,313 
HCA,                 
Sr. Unscd. Notes    6.75    7/15/13    1,440,000    1,339,200 

The Fund 13


STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Health Care (continued)                 
HCA,                 
Sr. Unscd. Notes    7.88    2/1/11    294,000    299,145 
HCA,                 
Sr. Unscd. Notes    8.75    9/1/10    560,000    578,200 
                2,899,858 
Lodging & Entertainment—.4%                 
MGM Mirage,                 
Gtd. Notes    8.50    9/15/10    2,055,000    2,116,650 
Manufacturing—.4%                 
Jefferson Smurfit,                 
Sr. Unscd. Notes    8.25    10/1/12    1,285,000    1,175,775 
Tyco International Group,                 
Gtd. Notes    6.88    1/15/29    650,000    626,341 
                1,802,116 
Media—2.9%                 
BSKYB Finance UK,                 
Gtd. Notes    6.50    10/15/35    950,000 a    919,764 
Clear Channel Communications,                 
Sr. Unscd. Notes    4.50    1/15/10    2,300,000    2,088,103 
Comcast,                 
Gtd. Notes    3.01    7/14/09    5,235,000 b    5,142,738 
Comcast,                 
Gtd. Notes    6.30    11/15/17    1,550,000    1,613,451 
News America,                 
Gtd. Notes    6.15    3/1/37    2,975,000    2,890,694 
Reed Elsevier Capital,                 
Gtd. Notes    4.63    6/15/12    2,230,000    2,159,140 
                14,813,890 
Oil & Gas—2.4%                 
Anadarko Petroleum,                 
Sr. Unscd. Notes    3.20    9/15/09    4,370,000 b    4,296,650 
BJ Services,                 
Sr. Unscd. Notes    3.25    6/1/08    6,750,000 b    6,751,336 
WeatherFord International,                 
Gtd. Notes    5.15    3/15/13    1,055,000    1,060,134 
                12,108,120 
Pre-Refunded Muni—1.8%                 
California Department of Water                 
Resources, Power Supply                 
Revenue Bonds    5.13    5/1/18    1,505,000 e    1,645,477 

14


    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Pre-Refunded Muni (continued)                 
City of New York,                 
GO, Ser. D    5.38    6/1/32    715,000 e    781,917 
City of New York,                 
GO, Ser. J    5.50    6/1/21    280,000 e    312,004 
Clark County School District,                 
GO, Ser. F (Insured; FSA)    5.50    6/15/17    385,000 e    421,425 
Clark County School District,                 
GO, Ser. F (Insured; FSA)    5.50    6/15/18    250,000 e    273,652 
Clark County,                 
GO (Bond Bank) (Insured; MBIA)    5.25    6/1/20    350,000 e    383,873 
Cypress-Fairbanks Independent                 
School District, GO, Ser. A                 
(Schoolhouse) (Insured; PSF-GTD)    5.25    2/15/22    320,000 e    335,654 
Denver City and County,                 
Excise Tax Revenue (Colorado                 
Convention Center Project)                 
(Insured; FSA)    5.00    9/1/20    320,000 e    340,038 
Fort Worth Independent School                 
District, GO (Insured; PSF-GTD)    6.00    2/15/20    720,000 e    764,554 
Los Angeles County Metropolitan                 
Transportation Authority,                 
Proposition A First Tier                 
Senior Sales Tax Revenue                 
(Insured; FSA)    5.00    7/1/31    420,000 e    454,474 
Los Angeles Unified School                 
District, GO, Ser. A                 
(Insured; MBIA)    5.00    1/1/28    740,000 e    810,182 
Miami,                 
GO (Homeland Defense/                 
Neighborhood) (Insured; MBIA)    5.50    1/1/22    430,000 e    468,184 
New York State Urban Development,                 
Personal Income Tax-Ser. C-1,                 
Revenue Bonds    5.00    3/15/33    795,000 e    866,391 
New York State Urban Development,                 
Personal Income Tax-Ser. B,                 
Revenue Bonds    5.13    3/15/29    245,000 e    268,378 
Shelby County,                 
GO, Ser. A (Public Improvement                 
and School Bonds) (Insured; MBIA)    5.00    3/1/14    230,000 e    244,403 
Williamson County,                 
GO, Ser. A (Insured; FSA)    6.00    8/15/14    245,000 e    264,313 

The Fund 15


STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Pre-Refunded Muni (continued)                 
Wisconsin,                 
GO, Ser. G (Insured; MBIA)    5.00    5/1/15    430,000 e    468,532 
                9,103,451 
Property & Casualty Insurance—3.5%             
Ace INA Holdings,                 
Gtd. Notes    5.80    3/15/18    840,000    848,177 
Chubb,                 
Sr. Unscd. Notes    5.47    8/16/08    3,350,000    3,365,554 
Hanover Insurance,                 
Debs.    7.63    10/15/25    910,000    814,450 
Hartford Financial Services Group,                 
Sr. Unscd. Notes    5.55    8/16/08    1,190,000    1,195,369 
HUB International Holdings,                 
Sr. Sub. Notes    10.25    6/15/15    1,410,000 a    1,036,350 
Leucadia National,                 
Sr. Unscd. Notes    7.13    3/15/17    3,900,000    3,744,000 
Metropolitan Life Global Funding                 
I, Sr. Scd. Notes    5.13    4/10/13    1,250,000 a    1,251,269 
Nippon Life Insurance,                 
Notes    4.88    8/9/10    1,900,000 a    1,917,102 
Pacific Life Global Funding,                 
Notes    3.75    1/15/09    1,613,000 a    1,612,810 
Pacific Life Global Funding,                 
Notes    5.15    4/15/13    1,450,000 a    1,452,957 
Willis North America,                 
Gtd. Notes    6.20    3/28/17    510,000    498,568 
                17,736,606 
Real Estate Investment Trusts—3.6%             
Boston Properties,                 
Sr. Unscd. Notes    5.63    4/15/15    1,120,000    1,086,462 
Commercial Net Realty,                 
Sr. Unscd. Notes    6.15    12/15/15    1,505,000    1,299,411 
ERP Operating,                 
Sr. Unscd. Notes    5.13    3/15/16    1,125,000 d    1,033,154 
Federal Realty Investment Trust,                 
Sr. Unscd. Notes    5.40    12/1/13    825,000    788,534 
Federal Realty Investment Trust,                 
Notes    6.00    7/15/12    760,000    757,825 
Healthcare Realty Trust,                 
Sr. Unscd. Notes    5.13    4/1/14    3,800,000    3,405,731 

16


    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Real Estate Investment                 
Trusts (continued)                 
HRPT Properties Trust,                 
Sr. Unscd. Notes    3.40    3/16/11    1,788,000 b    1,636,095 
Liberty Property,                 
Sr. Unscd. Notes    6.63    10/1/17    2,385,000    2,254,905 
Mack-Cali Realty,                 
Sr. Unscd. Notes    5.05    4/15/10    2,300,000    2,279,771 
Mack-Cali Realty,                 
Notes    5.25    1/15/12    800,000    767,802 
Regency Centers,                 
Gtd. Notes    5.25    8/1/15    2,000,000    1,805,048 
Simon Property Group,                 
Sr. Unscd. Notes    4.88    8/15/10    1,180,000    1,164,934 
                18,279,672 
Residential Mortgage                 
Pass-Through Ctfs.—4.5%                 
Bayview Commercial Asset Trust,                 
Ser. 2006-1A, Cl. B3    5.85    4/25/36    466,035 a,b    246,999 
Countrywide Home Loan Mortgage                 
Pass Through Trust,                 
Ser. 2002-J4, Cl. B3    5.86    10/25/32    319,490 b    223,751 
First Horizon Alternative Mortgage                 
Securities, Ser. 2004-FA1, Cl. 1A1    6.25    10/25/34    3,109,599    2,993,536 
Impac CMB Trust,                 
Ser. 2005-8, Cl. 2M2    3.65    2/25/36    1,661,703 b    1,004,621 
Impac CMB Trust,                 
Ser. 2005-8, Cl. 2M3    4.40    2/25/36    1,357,057 b    761,200 
Impac Secured Assets CMN Owner                 
Trust, Ser. 2006-1, Cl. 2A1    3.25    5/25/36    915,367 b    781,927 
IndyMac Index Mortgage Loan Trust,                 
Ser. 2006-AR9, Cl. B1    6.03    6/25/36    498,725 b    207,833 
J.P. Morgan Mortgage Trust,                 
Ser. 2005-A1, Cl. 5A1    4.48    2/25/35    971,564 b    926,343 
New Century Alternative Mortgage                 
Loan Trust, Ser. 2006-ALT2,                 
Cl. AF6A    5.89    10/25/36    890,000 b    614,713 
Nomura Asset Acceptance,                 
Ser. 2005-AP2, Cl. A5    4.98    5/25/35    2,355,000 b    1,969,163 
Nomura Asset Acceptance,                 
Ser. 2005-WF1, Cl. 2A5    5.16    3/25/35    1,630,000 b    1,409,585 

The Fund 17


STATEMENT OF INVESTMENTS (Unaudited) (continued)

    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Residential Mortgage                 
Pass-Through Ctfs. (continued)                 
Prudential Home Mortgage                 
Securities, Ser. 1994-A, Cl. 5B    6.73    4/28/24    2,856 a,b    2,573 
WaMu Pass-Through Certificates,                 
Ser. 2005-AR4, Cl. A4B    4.67    4/25/35    4,525,000 b    4,494,689 
Wells Fargo Mortgage Backed                 
Securities Trust,                 
Ser. 2005-AR1, Cl. 1A1    4.54    2/25/35    5,322,812 b    5,255,730 
Wells Fargo Mortgage Backed                 
Securities Trust, Ser. 2003-1,                 
Cl. 2A9    5.75    2/25/33    2,473,803    2,324,304 
                23,216,967 
Retail—.9%                 
CVS Caremark,                 
Sr. Unscd. Notes    3.38    6/1/10    1,155,000 b    1,121,661 
Home Depot,                 
Sr. Unscd. Notes    2.93    12/16/09    1,015,000 b    970,476 
Home Depot,                 
Sr. Unscd. Notes    5.88    12/16/36    1,725,000    1,446,623 
Macy’s Retail Holdings,                 
Gtd. Notes    5.95    11/1/08    1,035,000    1,035,687 
                4,574,447 
Specialty Steel—.2%                 
Steel Dynamics,                 
Sr. Notes    7.38    11/1/12    1,180,000 a    1,206,550 
State/Territory Gen Oblg—2.6%                 
California                 
GO (Insured; AMBAC)    3.50    10/1/27    550,000    453,486 
Michigan Tobacco Settlement                 
Finance Authority, Tobacco                 
Settlement Asset-Backed Bonds    7.05    6/1/34    1,500,000 b    1,422,465 
Michigan Tobacco Settlement                 
Finance Authority, Tobacco                 
Settlement Asset-Backed Bonds    7.31    6/1/34    5,505,000    5,263,991 
New York Counties Tobacco Trust                 
IV, Tobacco Settlement                 
Pass-Through Bonds    6.00    6/1/27    2,420,000    2,248,277 
Tobacco Settlement Authority of                 
Iowa, Tobacco Settlement                 
Asset-Backed Bonds    6.50    6/1/23    3,965,000    3,749,502 
                13,137,721 

18


    Coupon    Maturity    Principal     
Bonds and Notes (continued)    Rate (%)    Date    Amount ($)    Value ($) 





Telecommunications—5.0%                 
America Movil,                 
Gtd. Notes    2.76    6/27/08    565,000 b    563,587 
AT & T,                 
Sr. Unscd. Notes    3.16    5/15/08    3,700,000 b    3,700,007 
AT & T,                 
Sr. Unscd. Notes    3.20    2/5/10    2,930,000 b    2,914,837 
France Telecom,                 
Sr. Unsub. Notes    7.75    3/1/11    1,090,000 b    1,179,351 
Intelsat Bermuda,                 
Gtd. Notes    11.25    6/15/16    705,000    718,219 
Intelsat,                 
Sr. Unscd. Notes    7.63    4/15/12    700,000    591,500 
Qwest,                 
Sr. Unscd. Notes    6.05    6/15/13    1,600,000 b    1,540,000 
Qwest,                 
Sr. Unscd. Notes    7.50    10/1/14    1,365,000    1,378,650 
Qwest,                 
Sr. Unscd. Notes    7.88    9/1/11    1,965,000    2,023,950 
Sprint Capital,                 
Gtd. Notes    6.88    11/15/28    1,340,000    1,044,361 
Telefonica Emisiones,                 
Gtd. Notes    2.84    6/19/09    815,000 b    806,410 
Telefonica Emisiones,                 
Gtd. Notes    5.98    6/20/11    3,205,000    3,275,000 
Time Warner Cable,                 
Gtd. Notes    5.85    5/1/17    1,510,000    1,501,040 
Time Warner,                 
Gtd. Notes    5.88    11/15/16    4,630,000    4,520,626 
                25,757,538 
Textiles & Apparel—.3%                 
Mohawk Industries,                 
Sr. Unscd. Notes    5.75    1/15/11    1,370,000    1,360,125 
Transportation—.4%                 
Ryder System,                 
Sr. Unscd. Notes    3.50    3/15/09    1,980,000    1,979,729 
U.S. Government Agencies/                 
Mortgage-Backed—52.3%                 
Federal Home Loan Mortgage Corp.:             
5.50%            52,980,000 f    53,403,858 
5.50%, 11/1/22—4/1/37            14,560,742    14,738,644 
6.00%, 10/1/37—11/1/37            5,212,787    5,338,361 

The Fund 19


STATEMENT OF INVESTMENTS (Unaudited) (continued)

Coupon    Maturity    Principal         
Bonds and Notes (continued) Rate (%)    Date    Amount ($)    Value ($) 




U.S. Government Agencies/                 
Mortgage-Backed (continued)                 
Federal Home Loan                 
Mortgage Corp. (continued):                 
6.50%, 3/1/32        733,773        764,749 
Multiclass Mortgage Participation Ctfs.                 
(Interest Only Obligations), Ser. 2752,                 
Cl. GM, 5.00%, 3/15/26        4,000,000 g      373,796 
Multiclass Mortgage Participation Ctfs.                 
(Interest Only Obligations), Ser. 2731,                 
Cl. PY, 5.00%, 5/15/26        4,367,209 g      361,796 
Federal National Mortgage Association:                 
5.00%        15,390,000 f      15,469,351 
6.00%        91,725,000 f      93,931,728 
6.50%        18,540,000 f      19,186,008 
5.50%, 9/1/22—1/1/37        19,847,273        20,019,628 
6.00%, 6/1/22—11/1/37        4,728,342        4,849,488 
6.50%, 2/1/26—11/1/37        8,428,413        8,732,612 
7.00%, 9/1/14        56,144        58,904 
Pass-Through Ctfs., Ser. 2004-58,                 
Cl. LJ, 5.00%, 7/25/34        4,105,030        4,181,189 
Government National Mortgage Association I:                 
Ser. 2004-43, Cl. A, 2.82%, 12/16/19        485,981        477,873 
Ser. 2007-46, Cl. A, 3.14%, 11/16/29        1,233,356        1,223,007 
Ser. 2005-34, Cl. A, 3.96%, 9/16/21        1,639,611        1,635,185 
Ser. 2005-79, Cl. A, 4.00%, 10/16/33        1,751,185        1,742,392 
Ser. 2005-50, Cl. A, 4.02%, 10/16/26        1,585,353        1,578,620 
Ser. 2005-29, Cl. A, 4.02%, 7/16/27        2,335,876        2,318,251 
Ser. 2005-42, Cl. A, 4.05%, 7/16/20        2,142,731        2,137,596 
Ser. 2007-52, Cl. A, 4.05%, 10/16/25        1,894,418        1,886,119 
Ser. 2005-67, Cl. A, 4.22%, 6/16/21        1,080,104        1,079,460 
Ser. 2005-59, Cl. A, 4.39%, 5/16/23        1,740,474        1,740,986 
Ser. 2005-32, Cl. B, 4.39%, 8/16/30        4,592,425        4,592,462 
Ser. 2004-39, Cl. LC, 5.50%, 12/20/29        5,535,000        5,612,008 
Government National Mortgage Association II:                 
5.63%, 7/20/30        288,638 b      290,931 
6.38%, 4/20/30        191,794 b      194,134 
                267,919,136 
U.S. Government Securities—.7%                 
U.S. Treasury Strips                 
0.00%, 11/15/23        7,165,000        3,470,482 
Total Bonds and Notes                 
(cost $703,126,649)                685,201,074 

20


Preferred Stocks—.6%    Shares    Value ($) 



Diversified Financial Services—.5%         
AES Trust VII,         
Conv., Cum. $3.00    50,950    2,547,500 
Manufacturing—.1%         
CIT Group         
Conv., Cum. $1.0979    56,300    658,710 
Total Preferred Stocks         
(cost $3,939,015)        3,206,210 



    Face Amount     
    Covered by     
Options—.6%    Contracts ($)    Value ($) 



Call Options         
3-Month Floor USD Libor-BBA         
Interest Rate, October 2009 @2.5    47,500,000    75,150 
3-Month Floor USD-Libor BBA,         
Swaption    1,565,000    96,247 
3-Month Floor USD-Libor BBA,         
Swaption    3,920,000    234,024 
3-Month Floor USD-Libor BBA,         
Swaption    5,730,000    805,638 
6-Month Floor USD-Libor BBA,         
Swaption    22,440,000    1,887,608 
Total Options         
(cost $2,782,977)        3,098,667 



    Principal     
Short-Term Investments—.5%    Amount ($)    Value ($) 



U.S. Government Agencies—.1%         
Federal National Mortgage         
Association, 1.50%, 5/13/08    270,000    269,865 
U.S. Treasury Bills—.4%         
1.34%, 5/15/08    2,204,000 h    2,203,174 
Total Short-Term Investments         
(cost $2,472,714)        2,473,039 



 
Other Investment—.2%    Shares    Value ($) 



Registered Investment Company;         
Dreyfus Institutional Preferred         
Plus Money Market Fund         
(cost $952,000)    952,000 i    952,000 

The Fund 21


STATEMENT OF INVESTMENTS (Unaudited) (continued)

Investment of Cash Collateral         
for Securities Loaned—1.2%    Shares    Value ($) 



Registered Investment Company;         
Dreyfus Institutional Cash         
Advantage Fund         
(cost $5,920,958)    5,920,958 i    5,920,958 



 
Total Investments (cost $719,194,313)    137.0%    700,851,948 
Liabilities, Less Cash and Receivables    (37.0%)    (189,127,948) 
Net Assets    100.0%    511,724,000 

a Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in 
transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2008, these securities 
amounted to $89,238,075 or 17.4% of net assets. 
b Variable rate security—interest rate subject to periodic change. 
c Principal amount stated in U.S. Dollars unless otherwise noted. 
EGP—Egyptian Pound 
EUR—Euro 
d All or a portion of these securities are on loan. At April 30, 2008, the total market value of the fund’s securities on 
loan is $5,761,604 and the total market value of the collateral held by the fund is $5,920,958. 
e These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are 
collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on 
the municipal issue and to retire the bonds in full at the earliest refunding date. 
f Purchased on a forward commitment basis. 
g Notional face amount shown. 
h All or partially held by a broker as collateral for open financial futures positions. 
i Investment in affiliated money market mutual fund. 

Portfolio Summary (Unaudited)          
 
Value (%)        Value (%) 



Corporate Bonds    57.7    Short-Term/Money     
U.S. Government & Agencies    53.0    Market Investments    1.9 
Asset/Mortgage-Backed    17.9    Preferred Stocks    .6 
Foreign/Governmental    2.7    Options    .6 
State/Government General Obligations    2.6        137.0 

Based on net assets. 
See notes to financial statements. 

22


STATEMENT OF FINANCIAL FUTURES 
April 30, 2008 (Unaudited) 

                Unrealized 
        Market Value        Appreciation 
        Covered by        (Depreciation) 
    Contracts    Contracts ($)    Expiration    at 4/30/2008 ($) 





Financial Futures Long                 
Euro-Bobl    190    32,293,147    June 2008    (882,799) 
British Long Gilt    91    19,593,570    June 2008    (449,634) 
U.S. Treasury 5 Year Notes    725    81,188,672    June 2008    (1,020,049) 
U.S. Treasury 10 Year Notes    20    2,316,250    June 2008    (78,375) 
Financial Futures Short                 
U.S. Treasury 2 Year Notes    252    (53,597,250)    June 2008    307,797 
U.S. Treasury 30 year Bonds    302    (35,300,969)    June 2008    157,979 
                (1,965,081) 

See notes to financial statements.

STATEMENT OF OPTIONS WRITTEN 
April 30, 2008 (Unaudited) 

    Face Amount     
    Covered by     
    Contracts ($)    Value ($) 



Call Options         
3-Month USD Libor-BBA,         
Swaption, Apr 2008 @ 3.33    11,240,000     
3-Month USD Libor-BBA,         
Swaption, May 2008 @ 3.44    11,240,000    (8,364) 
3-Month USD Libor-BBA,         
Swaption, May 2008 @ 4.41    5,550,000    (60,364) 
3-Month USD Libor-BBA,         
Swaption, May 2008 @ 4.17    5,620,000    (5,183) 
Put Options         
3-Month USD Libor-BBA,         
Swaption, Apr 2008 @ 3.33    11,240,000    (279,262) 
3-Month USD Libor-BBA,         
Swaption, May 2008 @ 3.44    11,240,000    (202,777) 
3-Month USD Libor-BBA,         
Swaption, May 2008 @ 4.41    5,550,000    (52,201) 
3-Month USD Libor-BBA,         
Swaption, May 2008 @ 4.17    5,620,000    (100,346) 
(Premiums received $684,591)        (708,497) 

See notes to financial statements.

The Fund 23


STATEMENT OF ASSETS AND LIABILITIES 
April 30, 2008 (Unaudited) 

            Cost    Value 





Assets ($):                 
Investments in securities—See Statement of Investments (including     
securities on loan, valued at $5,761,604)—Note 1(c):         
Unaffiliated issuers            712,321,355    693,978,990 
Affiliated issuers            6,872,958    6,872,958 
Cash denominated in foreign currencies        49,798    49,154 
Receivable for investment securities sold            14,024,332 
Dividends and interest receivable            5,543,057 
Swaps premium paid—Note 4                2,328,206 
Receivable for shares of Beneficial Interest subscribed        338,304 
Unrealized appreciation on forward currency exchange contracts—Note 4    328,265 
Receivable for futures variation margin—Note 4            147,369 
Receivable from broker for swap transactions—Note 4        137,787 
Unrealized appreciation on swap contracts—Note 4        121,501 
                723,869,923 





Liabilities ($):                 
Due to The Dreyfus Corporation and affiliates—Note 3(c)        509,212 
Cash overdraft due to Custodian                936,005 
Payable for investment securities purchased            198,544,702 
Liability for securities on loan—Note 1(c)            5,920,958 
Unrealized depreciation on swap contracts—Note 4        4,341,927 
Outstanding options written, at value (premiums received         
$684,591)—See Statement of Options Written—Note 4        708,497 
Payable for shares of Beneficial Interest redeemed        660,269 
Payable to broker from swap transactions—Note 4        263,739 
Unrealized depreciation on forward currency exchange contracts—Note 4    65,882 
Accrued expenses                194,732 
                212,145,923 





Net Assets ($)                511,724,000 





Composition of Net Assets ($):             
Paid-in capital                550,947,088 
Accumulated undistributed investment income—net        1,307,841 
Accumulated net realized gain (loss) on investments        (16,245,189) 
Accumulated net unrealized appreciation (depreciation) on investments     
foreign currency transactions, options transactions and swap transactions     
[including ($1,965,081) net unrealized (depreciation) on financial futures]    (24,285,740) 


Net Assets ($)                511,724,000 





 
 
Net Asset Value Per Share             
    Class A    Class B    Class C    Class I 





Net Assets ($)    401,079,763    50,233,726    37,328,024    23,082,487 
Shares Outstanding    28,857,277    3,608,092    2,690,370    1,661,994 





Net Asset Value Per Share ($)    13.90    13.92    13.87    13.89 

See notes to financial statements.

24


STATEMENT OF OPERATIONS 
Six Months Ended April 30, 2008 (Unaudited) 

Investment Income ($):     
Income:     
Interest    16,092,032 
Dividends:     
Unaffiliated issuers    150,296 
Affiliated issuers    104,264 
Income from securities lending    77,844 
Total Income    16,424,436 
Expenses:     
Management fee—Note 3(a)    1,715,416 
Shareholder servicing costs—Note 3(c)    1,140,984 
Distribution fees—Note 3(b)    305,580 
Prospectus and shareholders’ reports    39,016 
Professional fees    37,222 
Registration fees    31,660 
Custodian fees—Note 3(c)    27,934 
Interest expense—Note 2    424 
Miscellaneous    125,082 
Total Expenses    3,423,318 
Less—reduction in management fee     
due to undertaking—Note 3(a)    (344,357) 
Less—reduction in fees due to     
earnings credits—Note 1(c)    (14,739) 
Net Expenses    3,064,222 
Investment Income—Net    13,360,214 


Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    (1,853,336) 
Net realized gain (loss) on options transactions    2,143,493 
Net realized gain (loss) on financial futures    6,068,740 
Net realized gain (loss) on swap transactions    4,318,863 
Net realized gain (loss) on forward currency exchange contracts    (41,790) 
Net Realized Gain (Loss)    10,635,970 
Net unrealized appreciation (depreciation) on investments, foreign     
currency transactions, options transactions and swap transactions     
[including ($2,307,542) net unrealized (depreciation) on financial futures]    (18,180,736) 
Net Realized and Unrealized Gain (Loss) on Investments    (7,544,766) 
Net Increase in Net Assets Resulting from Operations    5,815,448 

See notes to financial statements.

The Fund 25


STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    April 30, 2008    Year Ended 
    (Unaudited)    October 31, 2007 a 



Operations ($):         
Investment income—net    13,360,214    28,384,361 
Net realized gain (loss) on investments    10,635,970    2,305,263 
Net unrealized appreciation         
(depreciation) on investments    (18,180,736)    (9,265,290) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    5,815,448    21,424,334 



Dividends to Shareholders from ($):         
Investment income—net:         
Class A Shares    (10,820,473)    (21,063,706) 
Class B Shares    (1,402,411)    (6,164,248) 
Class C Shares    (792,178)    (1,783,706) 
Class I Shares    (548,859)    (993,010) 
Net realized gain on investments:         
Class A Shares    (1,085,965)     
Class B Shares    (172,633)     
Class C Shares    (94,926)     
Class I Shares    (48,575)     
Total Dividends    (14,966,020)    (30,004,670) 



Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Class A Shares    66,236,688    150,315,443 
Class B Shares    2,073,594    3,868,291 
Class C Shares    4,919,533    6,114,141 
Class I Shares    6,662,990    5,569,439 
Dividends reinvested:         
Class A Shares    9,601,009    17,380,310 
Class B Shares    1,189,268    4,545,498 
Class C Shares    607,886    1,182,562 
Class I Shares    597,202    936,725 
Cost of shares redeemed:         
Class A Shares    (107,065,589)    (130,295,393) 
Class B Shares    (37,331,770)    (96,471,428) 
Class C Shares    (6,279,374)    (12,545,166) 
Class I Shares    (3,617,017)    (4,926,878) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (62,405,580)    (54,326,456) 
Total Increase (Decrease) in Net Assets    (71,556,152)    (62,906,792) 



Net Assets ($):         
Beginning of Period    583,280,152    646,186,944 
End of Period    511,724,000    583,280,152 
Undistributed investment income—net    1,307,841    1,511,548 

26


    Six Months Ended     
    April 30, 2008    Year Ended 
    (Unaudited)    October 31, 2007 a 



Capital Share Transactions:         
Class A b         
Shares sold    4,693,075    10,565,110 
Shares issued for dividends reinvested    681,711    1,220,490 
Shares redeemed    (7,680,569)    (9,131,859) 
Net Increase (Decrease) in Shares Outstanding    (2,305,783)    2,653,741 



Class B b         
Shares sold    146,167    270,323 
Shares issued for dividends reinvested    84,284    317,999 
Shares redeemed    (2,637,797)    (6,765,432) 
Net Increase (Decrease) in Shares Outstanding    (2,407,346)    (6,177,110) 



Class C         
Shares sold    348,607    428,932 
Shares issued for dividends reinvested    43,251    83,132 
Shares redeemed    (447,240)    (881,089) 
Net Increase (Decrease) in Shares Outstanding    (55,382)    (369,025) 



Class I         
Shares sold    472,757    391,237 
Shares issued for dividends reinvested    42,451    65,842 
Shares redeemed    (258,341)    (343,752) 
Net Increase (Decrease) in Shares Outstanding    256,867    113,327 

a    Effective June 1, 2007, Class R shares were redesignated as Class I shares. 
b    During the period ended April 30, 2008, 1,615,343 Class B shares representing $22,865,708 were automatically 
    converted to 1,617,992 Class A shares and during the period ended October 31, 2007, 3,537,356 Class B shares 
    representing $50,381,305 were automatically converted to 3,543,761 Class A shares. 
See notes to financial statements. 

The Fund 27


FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

Six Months Ended                     
April 30, 2008        Year Ended October 31,     



Class A Shares    (Unaudited)    2007    2006    2005    2004 a    2003 







Per Share Data ($):                         
Net asset value,                         
beginning of period    14.11    14.32    14.35    14.65    14.84    14.02 
Investment Operations:                         
Investment income—net b    .34    .69    .63    .51    .51    .58 
Net realized and unrealized                         
gain (loss) on investments    (.18)    (.18)    .13    (.19)    (.07)    .82 
Total from Investment Operations    .16    .51    .76    .32    .44    1.40 
Distributions:                         
Dividends from                         
investment income—net    (.34)    (.72)    (.68)    (.62)    (.59)    (.58) 
Dividends from net realized                         
gain on investments    (.03)        (.11)        (.04)     
Total Distributions    (.37)    (.72)    (.79)    (.62)    (.63)    (.58) 
Net asset value, end of period    13.90    14.11    14.32    14.35    14.65    14.84 







Total Return (%) c    1.15d    3.64    5.45    2.17    3.04    10.12 

28


    Six Months Ended                     
    April 30, 2008        Year Ended October 31,     



Class A Shares    (Unaudited)    2007    2006    2005    2004 a    2003 







Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    1.09e    1.09    1.10    1.09    1.10    1.10 
Ratio of net expenses                         
to average net assets    .97e    .97    .91    .90    1.09    1.10 
Ratio of net investment income                     
to average net assets    4.77e    4.80    4.42    3.53    3.50    3.93 
Portfolio Turnover Rate    146.04d,f 500.76f    449.87f    422.59f    736.80f    823.47 






Net Assets, end of period                         
($ x 1,000)    401,080    439,754    408,266    451,437    519,446    736,291 

a    As of November 1, 2003, the fund has adopted the method of accounting for interim payments on swap contracts in 
    accordance with Financial Accounting Standards Board Statement No. 133.These interim payments are reflected 
    within net realized and unrealized gain (loss) on swap contracts, however, prior to November 1, 2003, these interim 
    payments were reflected within interest income/expense in the Statement of Operations.The effect of this change for 
    the period ended October 31, 2004, was to increase net investment income per share by $.01, decrease net realized 
    and unrealized gain (loss) on investments per share by $.01 and increase the ratio of net investment income to 
    average net assets from 3.46% to 3.50%. Per share data and ratios/supplemental data for periods prior to November 
    1, 2003 have not been restated to reflect this change in presentation. 
b    Based on average shares outstanding at each month end. 
c    Exclusive of sales charge. 
d    Not Annualized. 
e    Annualized. 
f    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2008, 
    October 31, 2007, October 31, 2006, October 31, 2005 and October 31, 2004 were 44.75%, 322.62%, 
    308.38%, 328.78% and 705.69%, respectively. 
See notes to financial statements. 

The Fund 29


FINANCIAL HIGHLIGHTS (continued)

Six Months Ended                     
April 30, 2008        Year Ended October 31,     



Class B Shares    (Unaudited)    2007    2006    2005    2004 a    2003 







Per Share Data ($):                         
Net asset value,                         
beginning of period    14.14    14.35    14.37    14.67    14.87    14.04 
Investment Operations:                         
Investment income—net b    .29    .60    .56    .45    .44    .50 
Net realized and unrealized                         
gain (loss) on investments    (.18)    (.16)    .14    (.20)    (.08)    .85 
Total from Investment Operations    .11    .44    .70    .25    .36    1.35 
Distributions:                         
Dividends from                         
investment income—net    (.30)    (.65)    (.61)    (.55)    (.52)    (.52) 
Dividends from net realized                         
gain on investments    (.03)        (.11)        (.04)     
Total Distributions    (.33)    (.65)    (.72)    (.55)    (.56)    (.52) 
Net asset value, end of period    13.92    14.14    14.35    14.37    14.67    14.87 







Total Return (%) c    .90d    3.15    4.93    1.67    2.50    9.72 

30


    Six Months Ended                     
    April 30, 2008        Year Ended October 31,     



Class B Shares    (Unaudited)    2007    2006    2005    2004 a    2003 







Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    1.64e    1.61    1.59    1.58    1.57    1.53 
Ratio of net expenses                         
to average net assets    1.47e    1.47    1.41    1.40    1.55    1.53 
Ratio of net investment income                     
to average net assets    4.30e    4.28    3.93    3.05    3.04    3.43 
Portfolio Turnover Rate    146.04d,f 500.76f    449.87f    422.59f    736.80f    823.47 






Net Assets, end of period                         
($ x 1,000)    50,234    85,031    174,906    216,667    264,124    315,616 

a    As of November 1, 2003, the fund has adopted the method of accounting for interim payments on swap contracts in 
    accordance with Financial Accounting Standards Board Statement No. 133.These interim payments are reflected 
    within net realized and unrealized gain (loss) on swap contracts, however, prior to November 1, 2003, these interim 
    payments were reflected within interest income/expense in the Statement of Operations.The effect of this change for 
    the period ended October 31, 2004, was to increase net investment income per share by $.01, decrease net realized 
    and unrealized gain (loss) on investments per share by $.01 and increase the ratio of net investment income to 
    average net assets from 3.46% to 3.50%. Per share data and ratios/supplemental data for periods prior to November 
    1, 2003 have not been restated to reflect this change in presentation. 
b    Based on average shares outstanding at each month end. 
c    Exclusive of sales charge. 
d    Not Annualized. 
e    Annualized. 
f    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2008, 
    October 31, 2007, October 31, 2006, October 31, 2005 and October 31, 2004 were 44.75%, 322.62%, 
    308.38%, 328.78% and 705.69%, respectively. 
See notes to financial statements. 

The Fund 31


FINANCIAL HIGHLIGHTS (continued)

Six Months Ended                     
April 30, 2008        Year Ended October 31,     



Class C Shares    (Unaudited)    2007    2006    2005    2004 a    2003 







Per Share Data ($):                         
Net asset value,                         
beginning of period    14.09    14.30    14.32    14.62    14.82    13.99 
Investment Operations:                         
Investment income—net b    .28    .58    .52    .41    .41    .47 
Net realized and unrealized                         
gain (loss) on investments    (.19)    (.18)    .14    (.20)    (.09)    .84 
Total from Investment Operations    .09    .40    .66    .21    .32    1.31 
Distributions:                         
Dividends from                         
investment income—net    (.28)    (.61)    (.57)    (.51)    (.48)    (.48) 
Dividends from net realized                         
gain on investments    (.03)        (.11)        (.04)     
Total Distributions    (.31)    (.61)    (.68)    (.51)    (.52)    (.48) 
Net asset value, end of period    13.87    14.09    14.30    14.32    14.62    14.82 







Total Return (%) c    .70d    2.95    4.67    1.42    2.24    9.47 

32


    Six Months Ended                     
    April 30, 2008        Year Ended October 31,     



Class C Shares    (Unaudited)    2007    2006    2005    2004 a    2003 







Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    1.84e    1.84    1.83    1.83    1.82    1.78 
Ratio of net expenses                         
to average net assets    1.72e    1.72    1.66    1.65    1.80    1.78 
Ratio of net investment income                     
to average net assets    4.03e    4.05    3.68    2.80    2.80    3.22 
Portfolio Turnover Rate    146.04d,f 500.76f    449.87f    422.59f    736.80f    823.47 






Net Assets, end of period                         
($ x 1,000)    37,328    38,680    44,528    57,309    73,541    93,638 

a    As of November 1, 2003, the fund has adopted the method of accounting for interim payments on swap contracts in 
    accordance with Financial Accounting Standards Board Statement No. 133.These interim payments are reflected 
    within net realized and unrealized gain (loss) on swap contracts, however, prior to November 1, 2003, these interim 
    payments were reflected within interest income/expense in the Statement of Operations.The effect of this change for 
    the period ended October 31, 2004, was to increase net investment income per share by $.01, decrease net realized 
    and unrealized gain (loss) on investments per share by $.01 and increase the ratio of net investment income to 
    average net assets from 3.46% to 3.50%. Per share data and ratios/supplemental data for periods prior to November 
    1, 2003 have not been restated to reflect this change in presentation. 
b    Based on average shares outstanding at each month end. 
c    Exclusive of sales charge. 
d    Not Annualized. 
e    Annualized. 
f    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2008, 
    October 31, 2007, October 31, 2006, October 31, 2005 and October 31, 2004 were 44.75%, 322.62%, 
    308.38%, 328.78% and 705.69%, respectively. 
See notes to financial statements. 

The Fund 33


FINANCIAL HIGHLIGHTS (continued)

Six Months Ended                     
April 30, 2008        Year Ended October 31,     



Class I Shares    (Unaudited)    2007 a    2006    2005    2004 b    2003 







Per Share Data ($):                         
Net asset value,                         
beginning of period    14.10    14.31    14.34    14.64    14.84    14.02 
Investment Operations:                         
Investment income—net c    .35    .72    .66    .55    .56    .62 
Net realized and unrealized                         
gain (loss) on investments    (.17)    (.17)    .13    (.20)    (.08)    .84 
Total from Investment Operations    .18    .55    .79    .35    .48    1.46 
Distributions:                         
Dividends from                         
investment income—net    (.36)    (.76)    (.71)    (.65)    (.64)    (.64) 
Dividends from net realized                         
gain on investments    (.03)        (.11)        (.04)     
Total Distributions    (.39)    (.76)    (.82)    (.65)    (.68)    (.64) 
Net asset value, end of period    13.89    14.10    14.31    14.34    14.64    14.84 







Total Return (%)    1.29d    3.89    5.73    2.42    3.38    10.58 

34


    Six Months Ended                     
    April 30, 2008        Year Ended October 31,     



Class I Shares    (Unaudited)    2007 a    2006    2005    2004 b    2003 







Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    .80e    .77    .76    .72    .70    .68 
Ratio of net expenses                         
to average net assets    .72e    .72    .66    .65    .69    .68 
Ratio of net investment income                     
to average net assets    5.01e    5.05    4.67    3.77    4.02    4.18 
Portfolio Turnover Rate    146.04d,f 500.76f    449.87f    422.59f    736.80f    823.47 






Net Assets, end of period                         
($ x 1,000)    23,082    19,816    18,487    19,699    19,219    11,259 

a    Effective June 1, 2007, Class R shares were redesignated as Class I shares. 
b    As of November 1, 2003, the fund has adopted the method of accounting for interim payments on swap contracts in 
    accordance with Financial Accounting Standards Board Statement No. 133.These interim payments are reflected 
    within net realized and unrealized gain (loss) on swap contracts, however, prior to November 1, 2003, these interim 
    payments were reflected within interest income/expense in the Statement of Operations.The effect of this change for 
    the period ended October 31, 2004, was to increase net investment income per share by $.01, decrease net realized 
    and unrealized gain (loss) on investments per share by $.01 and increase the ratio of net investment income to 
    average net assets from 3.46% to 3.50%. Per share data and ratios/supplemental data for periods prior to November 
    1, 2003 have not been restated to reflect this change in presentation. 
c    Based on average shares outstanding at each month end. 
d    Not Annualized. 
e    Annualized. 
f    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2008, 
    October 31, 2007, October 31, 2006, October 31, 2005 and October 31, 2004 were 44.75%, 322.62%, 
    308.38%, 328.78% and 705.69%, respectively. 
See notes to financial statements. 

The Fund 35


NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus Premier Core Bond Fund (the “fund”) is a separate diversified series of Dreyfus Premier Fixed Income Funds (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering one series, the fund.The fund’s investment objective is to maximize total return, consisting of capital appreciation and current income. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as investment adviser.

At a meeting of the Board of Trustees of Dreyfus Premier Fixed Income Funds (the “Trust”) held on November 07, 2007, the Board approved, subject to shareholder approval, an Agreement and Plan of Reorganization (the “Agreement”) between the Trust, on behalf of Dreyfus Premier Core Bond Fund (the “Fund”) and Dreyfus Investment Grade Funds, Inc., on behalf of Dreyfus Intermediate Term Income Fund (the “Acquiring Fund”).The Agreement provides for the transfer of the fund’s assets to the Acquiring Fund in a tax-free exchange for shares of the Acquiring Fund and the assumption by the Acquiring Fund of the fund’s stated liabilities, the distribution of shares of the Acquiring Fund to the fund’s shareholders and the subsequent termination of the fund (the “Reorganization”).Holders of fund shares as of December 21,2007 were asked to approve the Agreement on behalf of the fund at a special meeting of shareholders held on April 2, 2008.The Reorganization took place as of the close of business on May 15, 2008.

MBSC Securities Corporation (“the Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares. The fund is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Class A, Class B, Class C and Class I. Class A shares are subject to a sales charge imposed at the time of purchase. Class B shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class B share redemptions made within six years of purchase and automatically con-

36


vert to Class A shares after six years.The fund no longer offers Class B shares, except in connection with dividend reinvestment and permitted exchanges of Class B shares. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Class I shares are sold at net asset value per share only to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities excluding short-term investments (other than U.S. Treasury Bills), financial futures, options, swaps and forward currency exchange contracts are valued each business day by an independent pricing service (the “Service”) approved by the Board of Trustees. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute

The Fund 37


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

a majority of the portfolio securities) are valued as determined by the Service, based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Restricted securities, as well as securities or other assets for which recent market quotations are not readily available, that are not valued by a pricing service approved by the Board of Trustees, or are determined by the fund not to reflect accurately fair value, are valued at fair value as determined in good faith under the direction of the Board of Trustees.The factors that may be considered when fair valuing a security include fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of the issuer or comparable issuers. Short-term investments, excluding U.S.Treasury Bills, are carried at amortized cost, which approximates value. Registered open-end investment companies that are not traded on an exchange are valued at their net asset value. Financial futures and options, which are traded on an exchange, are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Options traded over-the-counter are priced at the mean between the bid and asked price. Investments in swap transactions are valued each business day by an independent pricing service approved by the Board of Trustees. Swaps are valued by the service by using a swap pricing model which incorporates among other factors, default probabilities, recovery rates, credit curves of the underlying issuer and swap spreads on interest rates. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate.

The Financial Accounting Standards Board (“FASB”) released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires addi-

38


tional disclosures about fair-value measurements.The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.

(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments is recognized on the accrual basis.

The fund has arrangements with the custodian and cash management banks whereby the fund may receive earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

The Fund 39


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Pursuant to a securities lending agreement with Mellon Bank, N.A. (“Mellon Bank”), a subsidiary BNY Mellon and a Dreyfus affiliate, the fund may lend securities to qualified institutions. It is the fund’s policy, that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Manager, U.S. Government and Agency securities or Letters of Credit.The fund is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the fund bears the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner. During the period ended April 30, 2008, Mellon Bank earned $41,916, pursuant to the securities lending agreement.

(d) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

(e) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gains, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gains could be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(f) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

40


During the current year, the fund adopted FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority.Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year.The adoption of FIN 48 had no impact on the operations of the fund for the period ended April 30, 2008.

Each of the tax years in the three-year period ended October 31, 2007, remains subject to examination by the Internal Revenue Service and state taxing authorities.

The fund has an unused capital loss carryover of $23,042,906 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2007. If not applied, $1,791,693 of the carryover expires in fiscal 2010, $64,381 expires in fiscal 2011, $6,064,072 expires in fiscal 2012, $4,333,155 expires in fiscal 2013, $9,063,448 expires in fiscal 2014 and $1,726,157 expires in fiscal 2015.

The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2007 was as follows: ordinary income $30,004,670. The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Lines of Credit:

The fund may borrow up to $20 million for leveraging purposes under a short-term unsecured line of credit and participates with other Dreyfus-managed funds in a $100 million unsecured line of credit primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowing.

The Fund 41


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The average daily amount of borrowings outstanding under the leveraging arrangement during the period ended April 30, 2008, was approximately $12,300, with a related weighted average annualized interest rate of 6.74% ..

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a Management Agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .60% of the value of the fund’s average daily net assets and is payable monthly.The Manager has undertaken, from November 1, 2007 through September 30, 2008, that, if the fund’s aggregate expenses, exclusive of taxes, brokerage fees, Rule 12b-1 distribution plan fees, interest expense, shareholder services plan fees and extraordinary expenses, exceed an annual rate of .725% of the value of the fund’s average daily net assets, the fund may deduct from the payment to be made to the Manager under the Agreement, or the Manager will bear, such excess expense.The reduction in management fee, pursuant to the undertaking, amounted to $344,357 during the period ended April 30, 2008.

During the period ended April 30, 2008, the Distributor retained $3,006 from commissions earned on sales of the fund’s Class A shares and $70,519 and $2,882 from CDSC on redemptions of the fund’s Class B and Class C shares, respectively.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Class B and Class C shares pay the Distributor for distributing their shares at an annual rate of .50% of the value of the average daily net assets of Class B shares and .75% of the value of the average daily net assets of Class C shares. During the period ended April 30, 2008, Class B and Class C shares were charged $160,613 and $144,967, respectively, pursuant to the Plan.

(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay the Distributor at an annual rate of .25% of the value of their average daily net assets for the provision of certain services.The

42


services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2008, Class A, Class B and Class C shares were charged $559,208, $80,306 and $48,322, respectively, pursuant to the Shareholder Services Plan.

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended April 30, 2008, the fund was charged $179,582 pursuant to the transfer agency agreement.

The fund compensates The Bank of New York, a subsidiary of BNY Mellon and a Dreyfus affiliate, under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended April 30, 2008, the fund was charged $12,998 pursuant to the cash management agreement.

The fund compensates Mellon Bank,under a custody agreement for providing custodial services for the fund. During the period ended April 30, 2008, the fund was charged $27,934 pursuant to the custody agreement.

During the period ended April 30, 2008, the fund was charged $2,820 for services performed by the Chief Compliance Officer.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $273,736, Rule 12b-1 distribution plan fees $43,874, shareholder services plan fees $109,303, custodian fees $52,443, chief compliance officer fees $1,880 and transfer agency per account fees $81,210, which are offset against an expense reimbursement currently in effect in the amount of $53,234.

The Fund 43


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities, financial futures, options transactions, forward currency exchange contracts and swap transactions during the period ended April 30, 2008, amounted to $1,045,055,685,and $1,112,650,966,respectively,of which $724,794,855 in purchases and $725,740,479 in sales were from mortgage dollar roll transactions.

A mortgage dollar roll transaction involves a sale by the fund of mortgage related securities that it holds with an agreement by the fund to repurchase similar securities at an agreed upon price and date. The securities purchased will bear the same interest rate as those sold, but generally will be collateralized by pools of mortgages with different prepayment histories than those securities sold.

The fund may invest in financial futures contracts in order to gain exposure to or protect against changes in the market.The fund is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the fund to “mark to market” on a daily basis, which reflects the change in market value of the contracts at the close of each day’s trading. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses.When the contracts are closed, the fund recognizes a realized gain or loss.These investments require initial margin deposits with a broker, which consist of cash or cash equivalents.The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded and is subject to change. Contracts open at April 30, 2008, are set forth in the Statement of Financial Futures.

The fund may purchase and write (sell) put and call options in order to gain exposure to or to protect against changes in the market.

44


As a writer of call options, the fund receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the fund would incur a gain, to the extent of the premium, if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. Generally, the fund would realize a loss, if the price of the financial instrument increases between those dates.

As a writer of put options, the fund receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the fund would incur a gain, to the extent of the premium, if the price of the underlying financial instrument increases between the date the option is written and the date on which the option is terminated. Generally, the fund would realize a loss, if the price of the financial instrument decreases between those dates.

The following summarizes the fund’s call/put options written for the 
period ended April    30, 2008:             
 
    Face Amount        Options Terminated 

    Covered by    Premiums        Net Realized 
Options Written:    Contracts ($)    Received ($)    Cost ($)    Gain (Loss) ($) 





Contracts outstanding                 
October 31, 2007    149,040,000    172,677         
Contracts written    1,575,620,000    2,295,200         
Contracts terminated:                 
Contracts closed    1,468,600,000    1,415,495    1,644,156    (228,661) 
Contracts expired    188,840,000    367,791        367,791 
Total contracts                 
terminated    1,657,440,000    1,783,286    1,644,156    139,130 
Contracts outstanding             
April 30, 2008    67,220,000    684,591         

The fund enters into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings and to settle foreign currency transactions. When executing forward currency exchange contracts, the fund is obligated to buy or sell a foreign currency at a specified rate on a certain date

The Fund 45


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

in the future.With respect to sales of forward currency exchange contracts, the fund would incur a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract decreases between those dates.With respect to purchases of forward currency exchange contracts, the fund would incur a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed.The fund realizes a gain if the value of the contract increases between those dates. The fund is also exposed to credit risk associated with counterparty nonperformance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract. The following summarizes open forward currency exchange contracts at April 30, 2008:

    Foreign            Unrealized 
Forward Currency    Currency            Appreciation 
Exchange Contracts    Amounts    Cost ($)    Value ($) (Depreciation) ($) 




Purchases:                 
Brazilian Real, expiring             
06/18/2008    2,140,000    1,211,092    1,270,687    59,595 
Brazilian Real, expiring             
06/18/2008    900,000    509,482    534,401    24,919 
Brazilian Real, expiring             
06/18/2008    1,940,000    1,095,736    1,151,931    56,195 
China Renminlbi,                 
expiring                 
03/26/2009    35,740,000    5,472,363    5,503,259    30,896 
Russian Ruble,                 
expiring                 
06/18/2008    36,550,000    1,536,198    1,542,597    6,399 
Saudi Arabia Riyal,                 
expiring                 
6/18/2008    6,810,000    1,825,052    1,818,085    (6,967) 
Saudi Arabia Riyal,                 
expiring                 
6/18/2008    4,060,000    1,089,027    1,083,910    (5,117) 
Sales:        Proceeds ($)         
China Renminlbi,                 
expiring                 
03/26/2009    35,740,000    5,648,360    5,503,259    145,101 
Euro, expiring                 
06/18/2008    460,000    704,071    716,655    (12,584) 
Euro, expiring                 
06/18/2008    1,230,000    1875,061    1,916,275    (41,214) 

46


    Foreign            Unrealized 
Forward Currency    Currency            Appreciation 
Exchange Contracts    Amounts    Cost ($)    Value ($) (Depreciation) ($) 




Sales (continued):        Proceeds ($)         
Euro, expiring                 
06/18/2008    570,000    893,190    888,030    5,160 
Total                262,383 

The fund may enter into swap agreements to exchange the interest rate on, or return generated by, one nominal instrument for the return generated by another nominal instrument.

The fund accrues for the interim payments on swap contracts on a daily basis, with the net amount recorded within unrealized appreciation (depreciation) on swap contracts in the Statement of Assets and Liabilities. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swaps, in addition to realized gain (loss) recorded upon the termination of swap contracts in the Statement of Operations. Fluctuations in the value of swap contracts are recorded as a component of net change in unrealized appreciation (depreciation) on investments.

Credit default swaps involve commitments to pay a fixed interest rate in exchange for payment if a credit event affecting a third party (the referenced company) occurs. Credit events may include a failure to pay interest or principal, bankruptcy, or restructuring. For those credit default swaps in which the fund is receiving a fixed rate, the fund is providing credit protection on the underlying instrument.The maximum payouts for these contracts are limited to the notional amount of each swap. The following summarizes open credit default swaps entered into by the fund at April 30, 2008:

                    Unrealized 
Notional    Reference        (Pay)/Receive    Appreciation 
Amount ($)    Entity    Counterparty    Fixed Rate (%) Expiration (Depreciation) ($) 




 
12,500,000    Altria Group,                 
    7%, 11/4/2013    Citibank    (.27)    12/20/2011    67,637 
3,590,000    Auto Receivables                 
    Asset Backed                 
    Securities, 2007-1,    Lehman             
    BBB Index    Brothers    1.50    2/15/2014    (626,967) 

The Fund 47


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

                    Unrealized 
Notional    Reference        (Pay)/Receive    Appreciation 
Amount ($)    Entity    Counterparty    Fixed Rate (%) Expiration (Depreciation) ($) 




 
2,200,000    Auto Receivables                 
    Asset Backed                 
    Securities, 2007-1,    Lehman             
    BBB Index    Brothers    1.50    2/15/2014    (390,387) 
2,390,000    Block Financial,                 
    5.125%,                 
    10/30/2014    Barclays    (1.95)    9/20/2014    (109,809) 
1,960,000    Block Financial,                 
    5.125%,    Morgan             
    10/30/2014    Stanley    (2.33)    12/20/2012    (92,822) 
640,000    Block Financial,                 
    5.125%,    J.P. Morgan             
    10/30/2014    Chase Bank    (2.25)    12/20/2012    (28,299) 
570,000    Block Financial,                 
    5.125%,    J.P. Morgan             
    10/30/2014    Chase Bank    (2.80)    12/20/2012    (38,331) 
2,250,000    Campbell Soup                 
    Co., 4.875%,                 
    10/1/2013    Deutsche Bank    (.53)    3/20/2013    (26,540) 
600,000    Campbell Soup                 
    Co., 4.875%,                 
    10/1/2013    Deutsche Bank    (.53)    3/20/2013    (7,068) 
2,979,000    Century Tel,                 
    7.875%,                 
    8/15/2012    Citibank    (1.16)    9/20/2015    (44,389) 
866,000    Century Tel,                 
    7.875%,    Morgan             
    8/15/2012    Stanley    (1.15)    9/20/2015    (12,356) 
1,430,000    Dow Chemical,    Goldman,             
    6%, 10/1/2012    Sachs & Co.    (.56)    3/20/2013    (2,265) 
785,000    First Data,    Lehman             
    4.7%, 8/1/2013    Brothers    2.90    12/20/2009    (11,887) 
5,690,000    Global Structured    J.P. Morgan             
    Tranche 0-3%    Chase Bank        9/20/2013    (780,725) 
2,060,000    Global Structured    Morgan             
    Tranche 0-3%    Stanley        9/20/2013    (171,437) 
3,950,000    Global Structured                 
    Tranche 0-3%    UBS AG        9/20/2013    (531,473) 
710,000    Kohls, 6.3%,    J.P. Morgan             
    3/1/2011    Chase Bank    (1.70)    6/20/2013    (7,301) 
1,200,000    Kohls, 6.3%,    J.P. Morgan             
    3/1/2011    Chase Bank    (1.70)    6/20/2013    (12,340) 
990,000    Kohls, 6.3%,    Morgan             
    3/1/2011    Stanley    (1.62)    3/20/2013    (7,894) 
6,250,000    Northern Tobacco,                 
    5%, 6/1/2046    Citibank    1.35    12/20/2011    (298,219) 
1,030,000    R.R. Donnelley &                 
    Sons, 4.95%,    Deutsche             
    4/1/2014    Bank    (1.60)    3/20/2012    (24,669) 

48


                    Unrealized 
Notional    Reference        (Pay)/Receive    Appreciation 
Amount ($)    Entity    Counterparty    Fixed Rate (%) Expiration (Depreciation) ($) 




 
420,000    R.R. Donnelley &                 
    Sons, 4.95%,    J.P. Morgan             
    4/1/2014    Chase Bank    (1.70)    12/20/2011    (11,295) 
1,870,000    Radioshack Corp.,                 
    7.375%,    Deutsche             
    5/15/2011    Bank    (1.84)    6/20/2013    (38,618) 
930,000    Radioshack Corp.,                 
    7.375%,    Morgan             
    5/15/2011    Stanley    (1.75)    6/20/2013    (15,245) 
2,230,000    Reed Elsevier                 
    Capital, 4.625%,    Deutsche             
    6/15/2012    Bank    (.96)    6/20/2012    (45,582) 
2,820,000    Republic of                 
    Panama, 8.875%,    Deutsche             
    9/30/2027    Bank    (1.57)    9/20/2017    22,396 
2,760,000    Republic of the                 
    Philippines,                 
    10.625%,                 
    3/16/2025    Barclays    (2.56)    9/20/2017    (52,503) 
2,760,000    Republic of                 
    Turkey, 11.875%,                 
    1/15/2030    Barclays    (2.82)    9/20/2017    31,468 
1,300,000    Rite Aid, 7.7%,    J.P. Morgan             
    2/15/2027    Chase Bank    3.55    9/20/2010    (144,146) 
725,000    Rite Aid, 7.7%,    Lehman             
    2/15/2027    Brothers    4.55    9/20/2010    (65,039) 
725,000    Rite Aid, 7.7%,    Lehman             
    2/15/2027    Brothers    4.85    9/20/2010    (60,434) 
6,250,000    Southern California                 
    Tobacco, 5%,                 
    6/1/2037    Citibank    1.35    12/20/2011    (298,219) 
610,000    Standish Structured                 
    Tranched                 
    Portfolio 0-3%    Barclays    13.40    6/20/2012    (362,695) 
815,000    Telefonica Emisiones                 
    SAU, 4.375%,                 
    2/2/2016    Deutsche Bank    (.65)    6/20/2009    (4,060) 
1,055,000    Weatherford                 
    International,                 
    4.95%,    J.P. Morgan             
    10/15/2013    Chase Bank    (.95)    6/20/2013    (18,913) 
Total                    (4,220,426) 

The fund may enter into interest rate swaps which involve the exchange of commitments to pay and receive interest based on a notional principal amount. At April 30, 2008, there were no interest rate swaps entered into by the fund.

The Fund 49


NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Risks may arise upon entering into these agreements from the potential inability of the counterparties to meet the terms of the agreement and are generally limited to the amount of net payments to be received, if any, at the date of default.

At April 30, 2008, accumulated net unrealized depreciation on investments was $18,342,365, consisting of $4,681,028 gross unrealized appreciation and $23,023,393 gross unrealized depreciation.

At April 30, 2008, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes ( see the Statement of Investments).

In March 2008, the FASB released Statement of Financial Accounting Standards No. 161 “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. The application of FAS 161 is required for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 161 and its impact on the financial statements and the accompanying notes has not yet been determined.

50


PROXY RESULTS (Unaudited)

The fund held a special meeting of shareholders on April 2, 2008.The proposal considered at the meeting, and the results, are as follows:

        Shares     



    For    Against    Abstained 



To approve an Agreement             
and Plan of Reorganization    20,944,777    1,038,243    1,724,448 

The Fund 51


NOTES



Item 2.    Code of Ethics. 
    Not applicable. 
Item 3.    Audit Committee Financial Expert. 
    Not applicable. 
Item 4.    Principal Accountant Fees and Services. 
    Not applicable. 
Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. 
Item 6.    Investments. 
    Not applicable. 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. 
Item 8.    Portfolio Managers of Closed-End Management Investment Companies. 
    Not applicable. 
Item 9.    Purchases of Equity Securities by Closed-End Management Investment Companies and 
    Affiliated Purchasers. 
    Not applicable. [CLOSED END FUNDS ONLY] 
Item 10.    Submission of Matters to a Vote of Security Holders. 

The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and


independent business judgment and would act in the interests of the Registrant and its shareholders. Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 11.    Controls and Procedures. 

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12.    Exhibits. 

(a)(1) Not applicable.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not applicable.

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dreyfus Premier Fixed Income Funds 
 
By:    /s/ J. David Oficer 
    J. David Officer 
    President 
 
Date:    June 18, 2008 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By    /s/ J. David Officer 
    J. David Officer 
    President
 
Date:    June 18, 2008 

By:    /s/ James Windels 
    James Windels 
    Treasurer
 
Date:    June 18, 2008 


EXHIBIT INDEX

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)



Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-CSR’ Filing    Date    Other Filings
11/15/08
9/30/08
Filed on / Effective on:6/27/08NSAR-A
6/18/08
5/16/08
5/15/0824F-2NT
For Period End:4/30/08NSAR-A
4/2/08
11/15/07
11/7/07497
11/1/07
10/31/0724F-2NT,  N-CSR,  N-Q,  N-Q/A,  NSAR-B
6/1/07
10/31/0624F-2NT,  N-CSR,  NSAR-B
10/31/0524F-2NT,  N-CSR,  NSAR-B
10/31/0424F-2NT,  N-CSR,  NSAR-B
11/1/03
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