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Dreyfus Premier Fixed Income Funds – ‘N-CSR’ for 4/30/07 – EX-99.906CERT

On:  Thursday, 6/21/07, at 9:41am ET   ·   Effective:  6/21/07   ·   For:  4/30/07   ·   Accession #:  797073-7-9   ·   File #:  811-04748

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

 6/21/07  Dreyfus Premier Fixed Income Fds  N-CSR       4/30/07    4:901K
          → 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      5K 
 2: EX-99.906CERT  Certification Required by Section 906            HTML    716K 
 4: EX-99.CERT  Certification Required by Rule 30A-2                HTML     14K 
 3: EX-99.CODE ETH  Code of Ethics                                  HTML     19K 


EX-99.906CERT   —   Certification Required by Section 906


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  form  
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) 
 
Mark N. Jacobs, 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:    4/30/2007 


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 
 
    T H E F U N D 


2    A Letter from the CEO 
3    Discussion of Fund Performance 
6    Understanding Your Fund’s Expenses 
6    Comparing Your Fund’s Expenses 
    With Those of Other Funds 
7    Statement of Investments 
26    Statement of Financial Futures 
26    Statement of Options Written 
27    Statement of Assets and Liabilities 
28    Statement of Operations 
29    Statement of Changes in Net Assets 
31    Financial Highlights 
39    Notes to Financial Statements 
    F O R M O R E I N F O R M AT I O N 


    Back Cover 


The Fund

Dreyfus Premier 
Core Bond Fund 

A L E T T E R F R O M T H E C E O

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Premier Core Bond Fund, covering the six-month period from November 1, 2006, through April 30, 2007.

The U.S. economy moderated throughout the reporting period as cooling housing markets took their toll on consumer and business spending.Yet, labor markets remained quite strong, and key measures of inflation stayed stubbornly above the Federal Reserve’s stated “comfort zone.” Dreyfus’ chief economist believes that these seemingly conflicting signals may be the result of a lag between the current downturn in housing activity and its likely dampening effect on housing-related employment. In his view, inflationary pressures may moderate over the coming months in an environment of modestly higher unemployment rates and sub-par economic growth.

The likely implications of this economic outlook include a long pause in Fed policy before an eventual easing of short-term interest rates, a modest drop in 10-year Treasury bond yields, decelerating corporate earnings, high levels of mergers-and-acquisitions activity and a probable continuation of the ongoing shift in investor sentiment toward higher quality stocks.We expect these developments to produce both challenges and opportunities in fixed-income markets, and your financial advisor can help determine the appropriate asset allocation strategy for you.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s Portfolio Manager.

Thank you for your continued confidence and support.

2

D I S C U S S I O N O F F U N D P E R F O R M A N C E

Kent Wosepka, Portfolio Manager

How did Dreyfus Premier Core Bond Fund perform relative to its benchmark?

For the six-month period ended April 30, 2007, the fund’s Class A shares achieved a 3.16% total return and distributed aggregate income dividends of $0.36 per share, Class B shares achieved a 2.97% total return and distributed aggregate income dividends of $0.32 per share, Class C shares achieved a 2.86% total return and distributed aggregate income dividends of $0.31 per share, and Class R shares achieved a 3.30% total return and distributed aggregate income dividends of $0.38 per share.1 Please note that effective June 1, 2007, Class R shares were renamed Class I shares. The fund’s benchmark, the Lehman Brothers U.S.Aggregate Index (the “Index”), produced a total return of 2.64% for the same period.2

The U.S. bond market fared relatively well in an environment characterized by stable short-term interest rates and slowing economic growth. The fund produced higher returns than its benchmark, mainly due to strong contributions from out-of-Index holdings such as high-yield bonds and credit default swaps on sub-prime mortgages.

What is the fund’s investment approach?

The fund seeks to maximize total return through capital appreciation and current income. At least 80% of the fund must be invested in bonds, which include U.S.Treasury securities, U.S. government agency securities, corporate bonds, mortgage- and asset-backed securities, convertible securities and preferred stocks.The fund may invest up to 35% of its assets in bonds of below investment-grade credit quality, also known as high yield securities. However, the fund seeks to maintain an overall portfolio credit quality of investment-grade (BBB or higher).

What other factors affected the fund’s performance?

Generally low market volatility helped support bond prices during the reporting period, as investors grew increasingly confident that the Federal Reserve Board (the “Fed”) would keep the overnight federal funds rate unchanged at 5.25% over the foreseeable future. Faced with

T h e F u n d 3


D I S C U S S I O N O F F U N D P E R F O R M A N C E (continued)

slowing economic growth and stubbornly high inflationary pressures, the Fed is attempting to keep the U.S. economy growing without stimulating a reacceleration of inflation by cutting interest rates or risking a recession by raising them.Although the low-volatility market environment was interrupted in late February and early March by turmoil in the U.S. sub-prime mortgage sector, the market subsequently regained its footing, and bond prices ended the reporting period little changed from where they began.

As a result, the majority of the fund’s returns were derived from current income. Income contributions proved to be particularly strong from higher yielding market sectors, including high yield bonds.To help mitigate the risks that lower-rated bonds typically entail, we focused primarily on high yield securities with maturities in the one- to two-year range, which tend to be less sensitive to changes in perceived credit quality and interest rates.We found such opportunities from issuers that we believed exhibited improving credit characteristics, including gaming companies and the financing arms of major automobile manufacturers.

The fund also benefited from its holdings of investment-grade corporate bonds, where we attempted to avoid issuers that we regarded as susceptible to the risk of leveraged buyouts. Accordingly, we emphasized regulated industries, such as utilities and real estate investment trusts, and we favored shorter-maturity bonds, which may be tendered by their issuers to improve cash flow in the event of a leveraged buyout.

Although reports of rising delinquencies among sub-prime mortgage holders roiled the financial markets in the first quarter of 2007, we had prepared the fund for weakness in the sector by purchasing credit default swaps on baskets of sub-prime mortgage-backed securities and individual securities backed by sub-prime home equity loans. These positions effectively enabled the fund to profit from sharp declines in the value of the underlying securities.

Detractors from the fund’s performance were relatively mild during the reporting period. During the fourth quarter of 2006, a tactical position in Treasury Inflation Protected Securities (TIPS) lost value when energy prices fell and expectations of higher inflation proved to be unfounded. Although the fund’s slightly longer-than-average duration posture detracted from the fund’s relative performance to a modest

4

degree, any duration-related weakness was more than offset by our yield-curve strategy, which emphasized intermediate-term bonds and de-emphasized bonds at the longer end of the maturity range. We employed derivative instruments to help us establish the fund’s duration and yield-curve positions.

What is the fund’s current strategy?

Recently mixed economic and inflation data continue to suggest that the Fed is likely to remain on hold for some time, and we expect yields of 10-year U.S.Treasury securities to trade in a relatively narrow range.We therefore have maintained our emphasis on income-oriented securities, including shorter-maturity high yield bonds and investment-grade credits from issuers that we regard as unlikely leveraged buyout targets.We have maintained relatively light exposure to mortgage-backed securities, which we believe are richly valued. However, we have begun to increase the fund’s exposure to non-dollar securities from foreign governments, such as Brazil and Mexico, where yields and interest-rate trends appear attractive to us.

June 1, 2007

    The fund may use derivative instruments, such as options, futures and options on futures, forward 
    contracts, swaps (including credit default swaps on corporate bonds and asset-backed securities), 
    options on swaps, and other credit derivatives. A small investment in derivatives could have a 
    potentially large impact on the fund’s performance.The use of derivatives involves risks different 
    from, or possibly greater than, the risks associated with investing directly in the underlying assets. 
    Credit default swaps and similar instruments involve greater risks than if the fund had invested in 
    the reference obligation directly, since, in addition to general market risks, they are subject to 
    illiquidity risk, counterparty risk and credit risks. 
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. 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 September 30, 2007, at which time it may be extended, modified 
    or terminated. 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. 

T h e F u n d 5


U N D E R S TA N D I N G YO U R F U N D ’ S E X P E N S E S ( U n a u d i t e d )

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 from November 1, 2006 to April 30, 2007. 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, 2007         
    Class A    Class B    Class C    Class R 





Expenses paid per $1,000     $ 4.89    $ 740    $ 8.70    $ 3.68 
Ending value (after expenses)    $1,031.60    $1,029.70    $1,028.60    $1,033.00 

C O M P A R I N G Y O U R F U N D ’ S E X P E N S E S W I T H T H O S E O F O T H E R F U N D S ( U n a u d i t e d )

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, 2007 
    Class A    Class B    Class C    Class R 





Expenses paid per $1,000     $ 4.86    $ 7.35    $ 8.65    $ 3.66 
Ending value (after expenses)    $1,019.98    $1,017.50    $1,016.22    $1,021.17 

Expenses are equal to the fund’s annualized expense ratio of .97% for Class A, 1.47% for Class B, 1.73% for Class C and .73% for Class R, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

  6

S TAT E M E N T O F I N V E S T M E N T S 
A p r i l 3 0 , 2 0 0 7 ( U n a u d i t e d ) 

    Coupon    Maturity    Principal     
Bonds and Notes—135.9%    Rate (%)    Date    Amount ($)    Value ($) 





Aerospace & Defense—.1%                 
L-3 Communications,                 
Gtd. Bonds    3.00    8/1/35    625,000    678,906 
Agricultural—.4%                 
Philip Morris,                 
Debs.    7.75    1/15/27    2,000,000 a    2,399,368 
Asset-Backed Ctfs./                 
Auto Receivables—1.8%                 
Capital Auto Receivables Asset                 
Trust, Ser. 2005-1, Cl. D    6.50    5/15/12    1,100,000 b    1,088,978 
Capital Auto Receivables Asset                 
Trust, Ser. 2007-1, Cl. D    6.57    9/16/13    708,000 b    707,940 
Capital One Auto Finance Trust,                 
Ser. 2003-B, Cl. A4    3.18    9/15/10    204,002    202,696 
Ford Credit Auto Owner Trust,                 
Ser. 2004-A, Cl. C    4.19    7/15/09    1,400,000    1,393,424 
Ford Credit Auto Owner Trust,                 
Ser. 2005-B, Cl. B    4.64    4/15/10    1,985,000    1,973,820 
Ford Credit Auto Owner Trust,                 
Ser. 2006-B, Cl. D    7.12    2/15/13    900,000 b    925,841 
GS Auto Loan Trust,                 
Ser. 2004-1, Cl. A4    2.65    5/16/11    315,755    314,352 
Hyundai Auto Receivables Trust,                 
Ser. 2006-A, Cl. A2    5.13    2/16/09    484,999    485,206 
Navistar Financial Owner Trust,                 
Ser. 2003-A, Cl. A4    2.24    11/15/09    393,061    392,797 
Onyx Acceptance Grantor Trust,                 
Ser. 2003-D, Cl. A4    3.20    3/15/10    327,325    323,905 
WFS Financial Owner Trust,                 
Ser. 2004-1, Cl. A4    2.81    8/22/11    309,017    305,465 
WFS Financial Owner Trust,                 
Ser. 2005-2, Cl. B    4.57    11/19/12    2,560,000    2,541,005 
                10,655,429 
Asset-Backed Ctfs./                 
Credit Cards—5.4%                 
BA Credit Card Trust,                 
Ser. 2007-B1, Cl. B1    5.40    6/15/12    10,310,000 c    10,296,710 
Bank of America Credit Card Trust,             
Ser. 2006-B3, Cl. B3    5.40    1/17/12    2,930,000 c    2,933,091 

T h e F u n d 7


S TAT E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

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





Asset-Backed Ctfs./                 
Credit Cards (continued)                 
Chase Issuance Trust,                 
Ser. 2005-B1, Cl. B1    5.46    12/15/10    6,820,000 c    6,829,403 
Citibank Credit Card Issuance                 
Trust, Ser. 2003-A9, Cl. A9    5.44    11/22/10    590,000 c    590,989 
MBNA Credit Card Master Note                 
Trust, Ser. 2002-C1, Cl. C1    6.80    7/15/14    11,322,000    12,065,200 
                32,715,393 
Asset-Backed Ctfs./                 
Home Equity Loans—6.9%                 
Bayview Financial Acquisition                 
Trust, Ser. 2005-B, Cl. 1A6    5.21    4/28/39    2,550,000 c    2,492,092 
Centex Home Equity,                 
Ser. 2006-A, Cl. AV1    5.37    6/25/36    848,948 c    849,507 
Citigroup Mortgage Loan Trust,                 
Ser. 2005-WF1, Cl. A5    5.01    2/25/35    2,350,000 c    2,297,172 
Citigroup Mortgage Loan Trust,                 
Ser. 2005-OPT1, Cl. A1B    5.53    2/25/35    36,162 c    36,188 
Credit Suisse Mortgage Capital                 
Certificates, Ser. 2007-1,                 
Cl. 1A6A    5.86    2/25/37    1,715,000 c    1,725,794 
Credit-Based Asset Servicing and                 
Securitization, Ser. 2005-CB4,                 
Cl. AV1    5.42    8/25/35    200,242 c    200,363 
Credit-Based Asset Servicing and                 
Securitization, Ser. 2005-CB8,                 
Cl. AF5    5.65    12/25/35    3,167,000 c    3,137,183 
Credit-Based Asset Servicing and                 
Securitization, Ser. 2007-CB2,                 
Cl. A2A    5.89    2/25/37    4,251,592 c    4,251,214 
Home Equity Asset Trust,                 
Ser. 2005-5, Cl. 2A1    5.43    11/25/35    467,031 c    467,356 
Home Equity Asset Trust,                 
Ser. 2005-8, Cl. M4    5.90    2/25/36    1,870,000 c    1,842,682 
Morgan Stanley Mortgage Loan                 
Trust, Ser. 2006-15XS, Cl. A6B    5.83    11/25/36    955,000 c    962,289 
Nationstar Home Equity Loan Trust,             
Ser. 2007-A, Cl. AV2    5.42    3/25/37    4,650,000 c    4,650,374 
Popular ABS Mortgage Pass-Through             
Trust, Ser. 2005-6, Cl. M1    5.91    1/25/36    2,100,000 c    2,101,959 

8


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





Asset-Backed Ctfs./                 
Home Equity Loans (continued)                 
Renaissance Home Equity Loan                 
Trust, Ser. 2006-4, Cl. AV1    5.39    1/25/37    1,021,985 c    1,022,464 
Residential Asset Mortgage                 
Products, Ser. 2004-RS12, Cl. AI6    4.55    12/25/34    1,450,000    1,390,466 
Residential Asset Mortgage                 
Products, Ser. 2005-RS2, Cl. M2    5.80    2/25/35    2,105,000 c    2,116,765 
Residential Asset Mortgage                 
Products, Ser. 2005-RS2, Cl. M3    5.87    2/25/35    600,000 c    603,767 
Residential Asset Securities,                 
Ser. 2003-KS7, Cl. MI3    5.75    9/25/33    1,082,888    1,029,645 
Residential Asset Securities,                 
Ser. 2005-EMX3, Cl. M1    5.75    9/25/35    2,290,000 c    2,290,553 
Residential Asset Securities,                 
Ser. 2005-AHL2, Cl. M2    5.76    10/25/35    875,000 c    875,938 
Residential Asset Securities,                 
Ser. 2005-EMX3, Cl. M2    5.77    9/25/35    2,585,000 c    2,586,588 
Residential Asset Securities,                 
Ser. 2005-AHL2, Cl. M3    5.79    10/25/35    555,000 c    544,666 
Residential Funding Mortgage                 
Securities II, Ser. 2006-HSA2,                 
Cl. AI1    5.43    3/25/36    422,908 c    423,155 
Saxon Asset Securities Trust,                 
Ser. 2004-2, Cl. AF2    4.15    8/25/35    2,476,767 c    2,463,685 
Soundview Home Equity Loan Trust,                 
Ser. 2005-B, Cl. M2    5.73    5/25/35    1,400,000 c    1,393,749 
                41,755,614 
Asset-Backed Ctfs./                 
Manufactured Housing—.8%                 
Green Tree Financial,                 
Ser. 1994-7, Cl. M1    9.25    3/15/20    2,019,571    2,086,611 
Origen Manufactured Housing,                 
Ser. 2005-B, Cl. A2    5.25    12/15/18    1,500,000    1,498,806 
Origen Manufactured Housing,                 
Ser. 2005-B, Cl. M2    6.48    1/15/37    1,000,000    1,004,274 
                4,589,691 
Automobile Manufacturers—1.4%                 
Daimler Chrysler N.A. Holding,                 
Gtd. Notes    5.69    3/13/09    1,950,000 c    1,954,569 

T h e F u n d 9


S TAT E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

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





Automobile Manufacturers (continued)             
DaimlerChrysler N.A. Holding,                 
Notes    4.88    6/15/10    1,100,000    1,090,473 
DaimlerChrysler N.A. Holding,                 
Gtd. Notes    5.77    3/13/09    1,925,000 c    1,931,865 
DaimlerChrysler N.A. Holding,                 
Gtd. Notes, Ser. E    5.89    10/31/08    3,745,000 c    3,765,451 
                8,742,358 
Automotive, Trucks & Parts—.1%             
Goodyear Tire & Rubber,                 
Sr. Notes    9.14    12/1/09    380,000 b,c    385,700 
Banks—6.4%                 
Capital One Financial,                 
Sr. Unsub. Notes    5.62    9/10/09    2,500,000 c    2,507,840 
Chevy Chase Bank,                 
Sub. Notes    6.88    12/1/13    1,710,000    1,804,050 
Chuo Mitsui Trust & Banking,                 
Sub. Notes    5.51    12/29/49    3,090,000 b,c    3,003,063 
Colonial Bank N.A./Montgomery, AL,             
Sub. Notes    6.38    12/1/15    1,530,000    1,588,301 
Colonial Bank N.A./Montgomery, AL,             
Sub. Notes    8.00    3/15/09    540,000    563,853 
Glitnir Banki,                 
Unscd. Bonds    7.45    9/14/49    1,915,000 b,c    2,071,163 
ICICI Bank,                 
Bonds    5.90    1/12/10    850,000 b,c    853,903 
Industrial Bank of Korea,                 
Sub. Notes    4.00    5/19/14    3,305,000 b,c    3,216,244 
Islandsbanki,                 
Notes    5.52    10/15/08    1,025,000 b,c    1,023,842 
Landsbanki Islands,                 
Sr. Notes    6.06    8/25/09    3,225,000 b,c    3,261,965 
Popular North America,                 
Notes    5.69    12/12/07    1,815,000 c    1,818,871 
Sovereign Bancorp,                 
Sr. Unscd. Notes    5.58    3/23/10    1,850,000 c    1,850,784 
Sovereign Bancorp,                 
Sr. Notes    5.64    3/1/09    2,965,000 c    2,974,713 
SunTrust Preferred Capital I,                 
Bank Gtd. Notes    5.85    12/31/49    440,000 a,c    447,645 

10


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





Banks (continued)                 
USB Capital IX,                 
Gtd. Notes    6.19    4/15/49    6,410,000 c    6,587,480 
Western Financial Bank,                 
Sub. Debs.    9.63    5/15/12    2,390,000    2,593,465 
Zions Bancorporation,                 
Sr. Unscd. Notes    5.48    4/15/08    3,000,000 c    3,002,193 
                39,169,375 
Building & Construction—1.1%                 
American Standard,                 
Gtd. Notes    7.38    2/1/08    2,115,000    2,138,438 
Centex,                 
Notes    4.75    1/15/08    1,010,000    1,006,912 
D.R. Horton,                 
Gtd. Notes    5.88    7/1/13    1,870,000    1,825,498 
Masco,                 
Sr. Unscd. Notes    5.66    3/12/10    1,620,000 c    1,624,231 
                6,595,079 
Chemicals—.5%                 
Equistar Chemicals/Funding,                 
Gtd. Notes    10.13    9/1/08    735,000    779,100 
Lubrizol,                 
Debs.    6.50    10/1/34    955,000 a    960,419 
RPM International,                 
Sr. Notes    4.45    10/15/09    1,415,000    1,387,726 
                3,127,245 
Commercial &                 
Professional Services—.4%                 
ERAC USA Finance,                 
Notes    5.61    4/30/09    965,000 b,c    967,799 
ERAC USA Finance,                 
Notes    7.95    12/15/09    1,095,000 b    1,165,341 
                2,133,140 
Commercial Mortgage                 
Pass-Through Ctfs.—5.0%                 
Bayview Commercial Asset Trust,                 
Ser. 2006-SP2, Cl. A    5.60    1/25/37    2,512,967 b,c    2,512,967 
Bayview Commercial Asset Trust,                 
Ser. 2005-3A, Cl. A2    5.72    11/25/35    2,386,309 b,c    2,391,902 

T h e F u n d 11


S TAT E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

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





Commercial Mortgage                 
Pass-Through Ctfs. (continued)                 
Bayview Commercial Asset Trust,                 
Ser. 2003-1, Cl. A    5.90    8/25/33    634,721 b,c    635,328 
Bayview Commercial Asset Trust,                 
Ser. 2003-2, Cl. A    5.90    12/25/33    798,608 b,c    799,481 
Bayview Commercial Asset Trust,                 
Ser. 2005-4A, Cl. M5    5.97    1/25/36    975,874 b,c    966,115 
Bayview Commercial Asset Trust,                 
Ser. 2004-1, Cl. M2    6.52    4/25/34    348,041 b,c    354,785 
Bayview Commercial Asset Trust,                 
Ser. 2006-2A, Cl. B3    8.02    7/25/36    359,496 b,c    359,493 
Bayview Commercial Asset Trust,                 
Ser. 2005-3A, Cl. B3    8.32    11/25/35    587,347 b,c    596,595 
Bear Stearns Commercial Mortgage                 
Securities, Ser. 2004-PWR5,                 
Cl. A2    4.25    7/11/42    1,550,000    1,517,883 
Bear Stearns Commercial Mortgage                 
Securities, Ser. 2005-T18, Cl. A2    4.56    2/13/42    1,900,000 c    1,872,944 
Calwest Industrial Trust,                 
Ser. 2002-CALW, Cl. A    6.13    2/15/17    2,035,000 b    2,112,385 
Credit Suisse/Morgan Stanley                 
Commercial Mortgage                 
Certificates, Ser. 2006-HC1A,                 
Cl. A1    5.51    5/15/23    3,150,000 b,c    3,152,600 
Crown Castle Towers,                 
Ser. 2005-1A, Cl. D    5.61    6/15/35    1,815,000 b    1,816,416 
Crown Castle Towers,                 
Ser. 2006-1A, Cl. D    5.77    11/15/36    960,000 b    960,005 
Global Signal Trust,                 
Ser. 2006-1, Cl. D    6.05    2/15/36    2,275,000 b    2,288,651 
Global Signal Trust,                 
Ser. 2006-1, Cl. E    6.50    2/15/36    550,000 b    539,858 
GMAC Commercial Mortgage                 
Securities, Ser. 2003-C3, Cl. A2    4.22    4/10/40    1,475,000    1,447,433 
SBA CMBS Trust,                 
Ser. 2006-1A, Cl. D    5.85    11/15/36    890,000 b    892,827 
Washington Mutual Asset                 
Securities, Ser. 2003-C1A, Cl. A    3.83    1/25/35    5,360,149 b    5,205,648 
                30,423,316 

12


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





Diversified Financial Services—10.0%             
Ameriprise Financial,                     
Jr. Sub. Notes        7.52    6/1/66    3,050,000 c    3,315,728 
Amvescap,                     
Gtd. Notes        5.63    4/17/12    3,165,000    3,187,003 
Bear Stearns,                     
Notes        5.45    2/23/10    4,545,000 c    4,547,218 
CIT Group,                     
Sr. Notes        5.51    8/15/08    2,820,000 a,c    2,821,695 
Countrywide Home Loans,                 
Notes        4.13    9/15/09    2,010,000    1,957,816 
FCE Bank,                     
Notes    EUR    4.91    9/30/09    1,350,000 c,d    1,808,257 
Ford Motor Credit,                     
Notes        5.63    10/1/08    2,675,000    2,633,859 
Ford Motor Credit,                     
Unscd. Notes        6.18    9/28/07    3,200,000 c    3,199,994 
Fuji JGB Investment,                     
Sub. Bonds        9.87    12/29/49    1,620,000 b,c    1,700,519 
Glencore Funding,                     
Gtd. Notes        6.00    4/15/14    1,630,000 b    1,629,995 
HSBC Finance,                     
Sr. Notes        5.70    9/14/12    4,195,000 a,c    4,214,171 
Jefferies Group,                     
Sr. Unscd. Notes        7.75    3/15/12    1,050,000    1,147,528 
Kaupthing Bank,                     
Sr. Notes        6.06    1/15/10    2,960,000 b,c    2,987,188 
Leucadia National,                     
Sr. Unscd. Notes        7.00    8/15/13    1,520,000    1,531,400 
MBNA Capital,                     
Gtd. Cap. Secs., Ser. A        8.28    12/1/26    1,300,000    1,359,631 
Merrill Lynch,                     
Notes, Ser. C        5.58    2/5/10    887,000 a,c    890,458 
Residential Capital,                     
Gtd. Notes        6.38    6/30/10    1,645,000    1,650,563 
Residential Capital,                     
Gtd. Notes        6.66    11/21/08    1,275,000 c    1,278,239 
Residential Capital,                     
Gtd. Notes        7.19    4/17/09    3,300,000 b,c    3,286,262 

T h e F u n d 13


S TAT E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

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





Diversified Financial                 
Services (continued)                 
SB Treasury,                 
Bonds    9.40    12/29/49    3,330,000 b,c    3,476,670 
SLM,                 
Notes, Ser. A    5.50    7/27/09    3,105,000 a,c    3,052,687 
St. George Funding,                 
Bonds    8.49    12/29/49    4,805,000 b,c    5,021,475 
Tokai Preferred Capital,                 
Bonds    9.98    12/29/49    3,115,000 b,c    3,271,825 
Windsor Financing,                 
Gtd. Notes    5.88    7/15/17    821,779 b    826,017 
                60,796,198 
Diversified Metals & Mining—.4%             
Falconbridge,                 
Bonds    5.38    6/1/15    375,000    372,560 
Noranda,                 
Notes    6.00    10/15/15    2,270,000    2,352,789 
                2,725,349 
Electric Utilities—4.8%                 
AES,                 
Sr. Notes    9.38    9/15/10    460,000    507,150 
American Electric Power,                 
Sr. Notes    4.71    8/16/07    1,400,000 c    1,396,966 
Cinergy,                 
Debs.    6.53    12/16/08    1,405,000    1,430,852 
Consumers Energy,                 
First Mortgage Bonds, Ser. B    5.38    4/15/13    3,115,000    3,118,040 
Dominion Resources/VA,                 
Sr. Unscd. Notes, Ser. B    5.54    11/14/08    1,725,000 c    1,727,084 
Dominion Resources/VA,                 
Sr. Notes, Ser. D    5.65    9/28/07    3,790,000 c    3,791,580 
FirstEnergy,                 
Unsub. Notes, Ser. B    6.45    11/15/11    3,530,000    3,705,946 
National Grid,                 
Sr. Unscd. Notes    6.30    8/1/16    1,345,000    1,414,555 
NiSource Finance,                 
Gtd. Notes    5.93    11/23/09    2,030,000 c    2,033,644 
Ohio Power Company,                 
Unscd. Notes    5.53    4/5/10    1,605,000 c    1,607,239 

14


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





Electric Utilities (continued)                 
TXU Electric Delivery,                 
Bonds        5.73    9/16/08    5,175,000 b,c    5,176,780 
TXU,                     
Sr. Notes, Ser. O        4.80    11/15/09    3,420,000    3,382,397 
                    29,292,233 
Environmental Control—.9%                 
Allied Waste North America,                 
Scd. Notes, Ser. B    5.75    2/15/11    565,000 a    557,938 
Allied Waste North America,                 
Scd. Notes        6.38    4/15/11    515,000    518,863 
Oakmont Asset Trust,                 
Notes        4.51    12/22/08    1,630,000 b    1,600,484 
USA Waste Services,                 
Sr. Unscd. Notes        7.00    7/15/28    1,350,000    1,407,039 
Waste Management,                 
Sr. Unsub. Notes        6.50    11/15/08    1,280,000    1,302,132 
                    5,386,456 
Food & Beverages—1.0%                 
H.J. Heinz,                     
Notes        6.43    12/1/20    2,250,000 b    2,285,433 
Safeway,                     
Sr. Unscd. Notes        4.13    11/1/08    1,295,000    1,274,824 
Stater Brothers Holdings,                 
Sr. Notes        7.75    4/15/15    305,000 a,b    314,913 
Stater Brothers Holdings,                 
Sr. Notes        8.13    6/15/12    1,250,000    1,293,750 
Tyson Foods,                     
Sr. Unscd. Notes        6.85    4/1/16    1,100,000 a,c    1,152,250 
                    6,321,170 
Foreign/Governmental—4.2%                 
Banco Nacional de Desenvolvimento             
Economico e Social, Unsub.                 
Notes        5.17    6/16/08    2,655,000 c    2,638,406 
Federal Republic of Brazil,                 
Unscd. Bonds    BRL    12.50    1/5/16    13,070,000 a,d    7,636,477 
Mexican Bonos,                     
Bonds, Ser. M    MXN    9.00    12/22/11    35,640,000 d    3,428,371 
Republic of Argentina,                 
Bonds        5.48    8/3/12    8,785,000 c    6,393,284 

T h e F u n d 15


S TAT E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

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





Foreign/Governmental (continued)             
Russian Federation,                 
Unsub. Bonds    8.25    3/31/10    5,046,806 b    5,286,529 
                25,383,067 
Health Care—2.0%                 
Baxter International,                 
Sr. Unscd. Notes    5.20    2/16/08    2,100,000    2,097,520 
HCA,                 
Sr. Unscd. Notes    7.88    2/1/11    1,470,000    1,515,967 
HCA,                 
Sr. Unscd. Notes    8.75    9/1/10    735,000    780,019 
Medco Health Solutions,                 
Sr. Unscd. Notes    7.25    8/15/13    4,725,000    5,119,712 
Tenet Healthcare,                 
Sr. Notes    6.38    12/1/11    1,440,000    1,360,800 
Teva Pharmaceutical Finance,                 
Gtd. Notes    6.15    2/1/36    1,290,000    1,261,116 
                12,135,134 
Lodging & Entertainment—.9%                 
Cinemark,                 
Sr. Discount Notes    9.75    3/15/14    260,000 e    240,500 
Harrah’s Operating,                 
Gtd. Notes    7.13    6/1/07    1,410,000    1,411,803 
MGM Mirage,                 
Gtd. Notes    8.50    9/15/10    2,055,000    2,214,263 
Mohegan Tribal Gaming Authority,             
Sr. Unscd. Notes    6.13    2/15/13    1,355,000    1,334,675 
Speedway Motorsports,                 
Sr. Sub. Notes    6.75    6/1/13    215,000    215,538 
                5,416,779 
Machinery—.4%                 
Case New Holland,                 
Gtd. Notes    7.13    3/1/14    780,000    822,900 
Terex,                 
Gtd. Notes    7.38    1/15/14    1,540,000    1,617,000 
                2,439,900 
Manufacturing—.1%                 
Tyco International Group,                 
Gtd. Notes    6.88    1/15/29    650,000    773,008 

16


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





Media—2.2%                 
Clear Channel Communications,                 
Sr. Unscd. Notes    4.50    1/15/10    2,300,000    2,214,488 
Comcast,                 
Gtd. Notes    5.66    7/14/09    5,235,000 c    5,245,695 
Cox Communications,                 
Notes    7.13    10/1/12    775,000    837,901 
Time Warner,                 
Gtd. Notes    5.59    11/13/09    3,515,000 c    3,523,225 
Viacom,                 
Gtd. Notes    5.63    5/1/07    1,400,000    1,400,000 
                13,221,309 
Oil & Gas—3.2%                 
Anadarko Petroleum,                 
Sr. Unscd. Notes    5.75    9/15/09    6,420,000 c    6,438,098 
BJ Services,                 
Sr. Unscd. Notes    5.53    6/1/08    6,750,000 c    6,756,892 
Enterprise Products Operating,                 
Gtd. Notes, Ser. B    4.00    10/15/07    4,720,000    4,690,231 
Sempra Energy,                 
Sr. Notes    4.62    5/17/07    1,365,000    1,364,520 
                19,249,741 
Packaging & Containers—.5%                 
Crown Americas/Capital,                 
Gtd. Notes    7.63    11/15/13    1,200,000    1,254,000 
Sealed Air,                 
Bonds    6.88    7/15/33    1,770,000 b    1,778,331 
                3,032,331 
Paper & Forest Products—.5%                 
Sappi Papier Holding,                 
Gtd. Notes    6.75    6/15/12    1,530,000 b    1,539,350 
Temple-Inland,                 
Gtd. Notes    6.63    1/15/18    1,525,000 a    1,603,077 
                3,142,427 
Property & Casualty Insurance—2.2%             
Allmerica Financial,                 
Debs.    7.63    10/15/25    910,000 a    985,345 
Assurant,                 
Sr. Notes    6.75    2/15/34    885,000    952,351 

T h e F u n d 17


S TAT E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

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





Property & Casualty                 
Insurance (continued)                 
Chubb,                 
Sr. Unscd. Notes    5.47    8/16/08    3,350,000    3,356,422 
Hartford Financial Services Group,             
Sr. Unscd. Notes    5.55    8/16/08    1,190,000    1,194,670 
Leucadia National,                 
Sr. Notes    7.13    3/15/17    3,900,000 b    3,900,000 
Nippon Life Insurance,                 
Notes    4.88    8/9/10    1,900,000 a,b    1,873,626 
Phoenix Cos.,                 
Sr. Unscd. Notes    6.68    2/16/08    1,025,000    1,030,579 
                13,292,993 
Real Estate Investment Trusts—4.9%             
Archstone-Smith Operating Trust,                 
Notes    3.00    6/15/08    1,435,000    1,396,780 
Archstone-Smith Operating Trust,                 
Sr. Unscd. Notes    5.25    5/1/15    230,000 a    226,531 
Archstone-Smith Operating Trust,                 
Sr. Unscd. Notes    5.63    8/15/14    455,000    460,081 
Boston Properties,                 
Sr. Notes    5.63    4/15/15    1,120,000    1,133,858 
Commercial Net Lease Realty,                 
Sr. Unscd. Notes    6.15    12/15/15    1,505,000    1,537,896 
Duke Realty,                 
Notes    3.50    11/1/07    1,055,000    1,044,759 
Duke Realty,                 
Sr. Notes    5.25    1/15/10    1,885,000    1,886,764 
ERP Operating,                 
Notes    4.75    6/15/09    1,000,000    989,169 
ERP Operating,                 
Notes    5.13    3/15/16    1,125,000    1,101,122 
Federal Realty Investment Trust,                 
Sr. Unscd. Notes    5.40    12/1/13    825,000    824,410 
Federal Realty Investment Trust,                 
Notes    6.00    7/15/12    760,000    781,978 
Healthcare Realty Trust,                 
Sr. Unscd. Notes    5.13    4/1/14    3,800,000    3,668,611 
Host Hotels & Resorts,                 
Scd. Notes    6.88    11/1/14    275,000    282,906 

18


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





Real Estate Investment                 
Trusts (continued)                 
HRPT Properties Trust,                 
Sr. Unscd. Notes    5.95    3/16/11    3,575,000 c    3,578,704 
Istar Financial,                 
Sr. Unscd. Notes    5.69    3/9/10    3,435,000 c    3,439,534 
Mack-Cali Realty,                 
Unscd. Notes    5.05    4/15/10    2,300,000    2,281,538 
Mack-Cali Realty,                 
Notes    5.25    1/15/12    800,000    794,475 
Regency Centers,                 
Gtd. Notes    5.25    8/1/15    2,000,000    1,953,430 
Simon Property Group,                 
Notes    4.60    6/15/10    1,512,000    1,488,475 
Simon Property Group,                 
Notes    4.88    8/15/10    1,180,000    1,170,520 
                30,041,541 
Residential Mortgage                 
Pass-Through Ctfs.—5.7%                 
Bayview Commercial Asset Trust,                 
Ser. 2006-1A, Cl. M6    5.96    4/25/36    457,479 b,c    457,479 
Bayview Commercial Asset Trust,                 
Ser. 2006-1A, Cl. B3    8.27    4/25/36    561,737 b,c    561,737 
ChaseFlex Trust,                 
Ser. 2006-2, Cl. A5    5.99    9/25/36    1,600,000 c    1,617,625 
Citigroup Mortgage Loan Trust,                 
Ser. 2005-WF2, Cl. AF2    4.92    8/25/35    490,951 c    487,940 
Countrywide Asset-Backed                 
Certificates, Ser. 2007-4,                 
Cl. A1A    5.44    9/25/37    1,122,738 c    1,123,539 
Countrywide Home Loan Mortgage             
Pass Through Trust,                 
Ser. 2002-J4, Cl. B3    5.85    10/25/32    334,074 c    329,821 
First Horizon Alternative Mortgage             
Securities, Ser. 2004-FA1,                 
Cl. 1A1    6.25    10/25/34    3,720,484    3,757,229 
Impac CMB Trust,                 
Ser. 2005-8, Cl. 2M2    6.07    2/25/36    1,885,255 c    1,874,366 
Impac CMB Trust,                 
Ser. 2005-8, Cl. 2M3    6.82    2/25/36    1,539,625 c    1,465,370 

T h e F u n d 19


S TAT E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

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





Residential Mortgage                 
Pass-Through Ctfs. (continued)             
Impac Secured Assets CMN Owner             
Trust, Ser. 2006-1, Cl. 2A1    5.67    5/25/36    992,004 c    994,569 
IndyMac Index Mortgage Loan Trust,             
Ser. 2006-AR9, Cl. B1    6.07    6/25/36    499,566 c    501,833 
IndyMac Index Mortgage Loan Trust,             
Ser. 2006-AR25 Cl. 4A2    6.17    9/25/36    1,691,337 c    1,712,158 
J.P. Morgan Alternative Loan                 
Trust, Ser. 2006-S4, Cl. A6    5.71    12/25/36    1,000,000 c    1,011,530 
J.P. Morgan Mortgage Trust,                 
Ser. 2005-A1, Cl. 5A1    4.49    2/25/35    1,086,585 c    1,059,500 
New Century Alternative Mortgage             
Loan Trust, Ser. 2006-ALT2,                 
Cl. AF6A    5.89    10/25/36    890,000 c    897,113 
Nomura Asset Acceptance,                 
Ser. 2005-AP2, Cl. A5    4.98    5/25/35    2,355,000 c    2,306,901 
Nomura Asset Acceptance,                 
Ser. 2005-WF1, Cl. 2A5    5.16    3/25/35    1,630,000 c    1,606,104 
Prudential Home Mortgage                 
Securities, Ser. 1994-A, Cl. 5B    6.73    4/28/24    3,381 b    3,347 
Washington Mutual,                 
Ser. 2005-AR4, Cl. A4B    4.67    4/25/35    4,525,000 c    4,467,174 
Wells Fargo Mortgage Backed                 
Securities Trust,                 
Ser. 2005-AR1, Cl. 1A1    4.54    2/25/35    6,045,583 c    5,970,402 
Wells Fargo Mortgage Backed                 
Securities Trust, Ser. 2003-1,                 
Cl. 2A9    5.75    2/25/33    2,500,000    2,481,621 
                34,687,358 
Retail—.6%                 
CVS,                 
Sr. Unscd. Notes    5.75    8/15/11    625,000    637,392 
Home Depot,                 
Sr. Unscd. Notes    5.48    12/16/09    1,015,000 c    1,016,837 
May Department Stores,                 
Unscd. Notes    3.95    7/15/07    750,000    747,267 
May Department Stores,                 
Gtd. Notes    5.95    11/1/08    1,035,000    1,045,101 
                3,446,597 

20


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





State/Territory Gen Oblg—2.3%                 
Michigan Tobacco Settlement                 
Finance Authority, Tobacco                 
Settlement Asset-Backed Bonds    7.31    6/1/34    5,505,000    5,699,932 
Michigan Tobacco Settlement                 
Finance Authority, Tobacco                 
Settlement Asset-Backed Bonds    7.43    6/1/34    1,500,000 c    1,499,865 
New York Counties Tobacco Trust                 
IV, Tobacco Settlement                 
Pass-Through Bonds    6.00    6/1/27    2,580,000    2,570,454 
Tobacco Settlement Authority of                 
Iowa, Tobacco Settlement                 
Asset-Backed Bonds    6.50    6/1/23    4,090,000    4,096,299 
                13,866,550 
Telecommunications—5.6%                 
America Movil,                 
Gtd. Notes    5.45    6/27/08    565,000 b,c    565,706 
AT & T,                 
Sr. Notes    5.45    5/15/08    3,700,000 c    3,703,641 
AT & T,                 
Notes    5.46    2/5/10    2,930,000 a,c    2,934,313 
France Telecom,                 
Unsub. Notes    7.75    3/1/11    1,770,000 c    1,929,707 
Intelsat,                 
Sr. Unscd. Notes    5.25    11/1/08    1,985,000    1,957,706 
KPN,                 
Sr. Unsub. Bonds    8.38    10/1/30    1,275,000    1,465,715 
Nextel Communications,                 
Gtd. Notes, Ser. F    5.95    3/15/14    1,405,000    1,385,088 
Nextel Partners,                 
Gtd. Notes    8.13    7/1/11    1,945,000    2,029,547 
Nordic Telephone Holdings,                 
Scd. Notes EUR    8.25    5/1/16    600,000 b,d    901,098 
Qwest,                 
Sr. Notes    7.88    9/1/11    1,965,000    2,102,550 
Qwest,                 
Sr. Notes    8.60    6/15/13    1,600,000 c    1,758,000 
Sprint Capital,                 
Gtd. Notes    8.75    3/15/32    1,380,000    1,633,138 

T h e F u n d 21


S TAT E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

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





Telecommunications (continued)                 
Telefonica Emisiones,                     
Gtd. Notes    5.65    6/19/09    2,795,000    c    2,806,543 
Telefonica Emisiones,                     
Gtd. Notes    5.98    6/20/11    3,205,000        3,294,577 
Time Warner Cable,                     
Sr. Unscd. Notes    5.85    5/1/17    3,180,000    b    3,205,109 
Windstream,                     
Gtd. Notes    8.13    8/1/13    1,945,000        2,120,050 
                    33,792,488 
Textiles & Apparel—.2%                     
Mohawk Industries,                     
Sr. Unscd. Notes    5.75    1/15/11    1,370,000        1,391,367 
Transportation—.3%                     
Ryder System,                     
Notes    3.50    3/15/09    1,980,000        1,912,739 
U.S. Government Agencies/                     
Mortgage-Backed—28.9%                     
Federal Home Loan Mortgage Corp.:                 
5.50%, 5/15/14            14,750,000    f    14,773,010 
6.50%, 3/1/32            867,502        894,509 
Multiclass Mortgage Participation Ctfs.                 
(Interest Only Obligations), Ser. 2752,                 
Cl. GM, 5.00%, 3/15/26            4,000,000    g    510,507 
Multiclass Mortgage Participation Ctfs.                 
(Interest Only Obligations), Ser. 2731,                 
CL. PY, 5.00%, 5/15/26            4,367,209    g    542,099 
Federal National Mortgage Association:                 
5.00%            17,000,000    f    16,760,810 
5.50%            20,705,000    f    20,478,487 
6.00%            32,625,000    f    33,155,156 
5.00%, 12/1/17            921,176        911,172 
5.50%, 2/1/33—9/1/34            14,966,049        14,834,782 
6.00%, 6/1/22—9/1/34            3,441,911        3,483,279 
6.50%, 11/1/08—10/1/32            214,949        221,727 
7.00%, 9/1/14            77,064        79,533 
Pass-Through Ctfs., Ser. 2004-58, Cl. LJ,                 
5.00%, 7/25/34            4,708,434        4,701,560 
Government National Mortgage Association I:                 
Ser. 2004-43, Cl. A, 2.82%, 12/16/19        549,675        530,526 
Ser. 2005-34, Cl. A, 3.96%, 9/16/21        1,800,656        1,769,501 
Ser. 2005-79, Cl. A, 4.00%, 10/16/33        1,979,601        1,936,316 

22


    Principal     
Bonds and Notes (continued)    Amount ($)    Value ($) 



U.S. Government Agencies/         
Mortgage-Backed (continued)         
Government National         
Mortgage Association I (continued):         
Ser. 2005-50, Cl. A, 4.02%, 10/16/26    1,849,132    1,811,678 
Ser. 2005-29, Cl. A, 4.02%, 7/16/27    2,520,638    2,460,798 
Ser. 2005-42, Cl. A, 4.05%, 7/16/20    2,266,085    2,225,999 
Ser. 2005-67, Cl. A, 4.22%, 6/16/21    1,769,134    1,742,448 
Ser. 2005-59, Cl. A, 4.39%, 5/16/23    1,827,776    1,801,475 
Ser. 2005-32, Cl. B, 4.39%, 8/16/30    4,725,000    4,653,983 
Ser. 2004-39, Cl. LC, 5.50%, 12/20/29    5,535,000    5,562,035 
Government National Mortgage Association II:     
5.38%, 4/20/30    325,141 c    329,176 
5.50%, 7/20/30    381,815 c    386,985 
Federal National Mortgage Association         
6.00%, 5/15/32    39,170,000 f    39,475,918 
        176,033,469 
U.S. Government Securities—23.8%         
U.S. Treasury Bonds         
4.75%, 2/15/37    4,380,000 h    4,334,150 
U.S. Treasury Notes:         
4.25%, 1/15/11    36,080,000 a    35,779,814 
4.50%, 4/30/12    56,990,000 h    56,967,774 
4.63%, 2/15/17    47,845,000 h    47,837,536 
        144,919,274 
Total Bonds and Notes         
(cost $820,956,676)        826,070,092 



 
 
Preferred Stocks—.8%    Shares    Value ($) 



Banks—.2%         
Sovereign Capital Trust IV,         
Conv., Cum. $2.1875    22,050    1,088,168 
Diversified Financial Services—.4%         
AES Trust VII,         
Conv., Cum. $3.00    50,950    2,579,344 
Financial—.2%         
Ford Motor Capital Trust II,         
Conv., Cum. $3.25    25,700    920,060 
Total Preferred Stocks         
(cost $4,558,366)        4,587,572 

T h e F u n d 23


S TAT E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

        Face Amount     
        Covered by     
Options—1.0%        Contracts ($)    Value ($) 




Call Options—1.0%             
3-Month Floor USD Libor-BBA             
Interest Rate, October 2009 @ 4        63,570,000    103,585 
3-Month USD Libor-BBA, Swaption        40,420,000    1,799,337 
3-Month USD Libor-BBA, Swaption        83,980,000    3,747,356 
Dow Jones CDX.X07,             
June 2007 @145        12,740,000    51,393 
Dow Jones CDX.IG8,             
September 2007 @.400        123,370,000    269,797 
            5,971,468 
Put Options—.0%             
3-Month Capped USD Libor-BBA             
Interest Rate, June 2007 @ 5.75        128,715,000    1 
Total Options             
(cost $6,139,555)            5,971,469 




        Principal     
Short-Term Investments—1.7%        Amount ($)    Value ($) 




Commercial Paper—1.1%             
Cox Enterprises,             
5.60%, 8/15/07        6,500,000 b,c    6,500,000 
Corporate Notes—.5%             
Egyptian Treasury Bills             
8.20%, 6/26/07    EGP    6,800,000 b,d,i    1,182,279 
Egyptian Treasury Bills             
8.20%, 6/26/07    EGP    10,383,850 b,d,i    1,805,383 
            2,987,662 
U.S. Treasury Bills—.1%             
4.97%, 6/7/07        845,000 j    840,919 
Total Short-Term Investments             
(cost $10,318,950)            10,328,581 




 
Other Investment—.6%        Shares    Value ($) 




Registered Investment Company;             
Dreyfus Institutional Preferred             
Plus Money Market Fund             
(cost $3,978,000)        3,978,000 k    3,978,000 

24

Investment of Cash Collateral         
for Securities Loaned—10.1%    Shares    Value ($) 



Registered Investment Company;         
Dreyfus Institutional Cash         
Advantage Fund         
(cost $61,168,990)    61,168,990 k    61,168,990 



 
Total Investments (cost $907,120,537)    150.1%    912,104,704 
Liabilities, Less Cash and Receivables    (50.1%)    (304,479,753) 
Net Assets    100.0%    607,624,951 

a    All or a portion of these securities are on loan. At April 30, 2007, the total market value of the fund’s securities on 
    loan is $59,287,562 and the total market value of the collateral held by the fund is $61,168,990. 
b    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, 2007, these securities 
    amounted to $105,394,370 or 17.3% of net assets. 
c    Variable rate security—interest rate subject to periodic change. 
d    Principal amount stated in U.S. Dollars unless otherwise noted. 
    BRL—Brazilian Real 
    EGP—Egyptian Pound 
    EUR—Euro 
    MXN—Mexican Peso 
e    Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. 
f    Purchased on a forward commitment basis. 
g    Notional face amount shown. 
h    Purchased on a delayed delivery basis. 
i    Credit Linked Notes. 
j    All or partially held by a broker as collateral for open financial futures positions. 
k    Investment in affiliated money market mutual fund. 

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



U.S. Government & Agencies    52.7    Foreign/Governmental    4.2 
Corporate Bonds    51.1    State/Government General Obligations    2.3 
Asset/Mortgage-Backed    25.6    Options    1.0 
Short-Term/Money        Preferred Stocks    .8 
Market Investments    12.4        150.1 
 
Based on net assets.             
See notes to financial statements.             

T h e F u n d 25


S TAT E M E N T O F F I N A N C I A L F U T U R E S

A p r i l 3 0 , 2 0 0 7 ( U n a u d i t e d )             




 
 
 
                Unrealized 
        Market Value        Appreciation 
        Covered by        (Depreciation) 
    Contracts    Contracts ($)    Expiration    at 4/30/2007 ($) 





 
Financial Futures Long                 
U.S. Treasury 5 Year Notes    558    59,052,096    June 2007    38,487 
Financial Futures Short                 
U.S. Treasury 2 Year Notes    191    (39,101,283)    June 2007    (68,642) 
                (30,155) 
See notes to financial statements.                 

S TAT E M E N T O F O P T I O N S    W R I T T E N     
A p r i l 3 0 , 2 0 0 7 ( U n a u d i t e d )         



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



Call Options;         
Dow Jones CDX.IG8         
September 2007 @ .349         
(Premiums received $259,077)    246,740,000    (258,978) 
 
See notes to financial statements.         

  26

S TAT E M E N T O F A S S E T S A N D L I A B I L I T I E S

A p r i l 3 0 , 2 0 0 7 ( U n a u d i t e d )         



 
 
 
 
    Cost    Value 



Assets ($):         
Investments in securities—See Statement of Investments (including     
securities on loan, valued at $59,287,562)—Note 1(c):     
Unaffiliated issuers    841,973,547    846,957,714 
Affiliated issuers    65,146,990    65,146,990 
Cash denominated in foreign currencies    451,464    450,505 
Dividends and interest receivable        7,170,062 
Receivable for investment securities sold        3,726,216 
Unrealized appreciation on swap contracts—Note 4    3,091,913 
Receivable from broker for swap transactions—Note 4    1,422,983 
Receivable for shares of Beneficial Interest subscribed    521,350 
Swaps premium paid—Note 4        375,470 
Receivable for futures variation margin—Note 4    137,442 
Unrealized appreciation on forwardcurrency exchange contracts—Note 4    106,326 
Prepaid expenses        36,606 
        929,143,577 



Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(c)    612,298 
Cash overdraft due to Custodian        1,623,766 
Payable for investment securities purchased    242,420,341 
Liability for securities on loan—Note 1(c)        61,168,990 
Payable for shares of Beneficial Interest redeemed    11,748,609 
Unrealized depreciation on swap contracts—Note 4    3,258,987 
Outstanding options written, at value (premiums     
received $259,077)—See Statement of Options Written    258,978 
Unrealized depreciation on forward currency exchange contracts—Note 4    95,082 
Payable to broker for swap transactions—Note 4    2,639 
Interest payable—Note 2        781 
Accrued expenses        328,155 
        321,518,626 



Net Assets ($)        607,624,951 



Composition of Net Assets ($):         
Paid-in capital        624,026,094 
Accumulated distributions in excess of investment income—net    (637,864) 
Accumulated net realized gain (loss) on investments    (20,569,449) 
Accumulated net unrealized appreciation (depreciation) on investments,     
foreign currency transactions, options transactions and swap transactions     
[including ($30,155) net unrealized (depreciation) on financial futures]    4,806,170 


Net Assets ($)        607,624,951 

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





Net Assets ($)    402,422,432    145,197,360    41,661,065    18,344,094 
Shares Outstanding    27,919,765    10,054,023    2,895,545    1,273,736 





Net Asset Value Per Share ($)    14.41    14.44    14.39    14.40 

See notes to financial statements.

T h e F u n d 27


S TAT E M E N T    O F    O P E R AT I O N S     
S i x M o n t h s E n d e d    A p r i l    3 0 , 2 0 0 7 ( U n a u d i t e d )     




 
 
 
 
Investment Income ($):         
Income:             
Interest            17,795,637 
Dividends:             
Unaffiliated issuers            67,424 
Affiliated issuers            90,838 
Income from securities lending        7,955 
Total Income            17,961,854 
Expenses:             
Management fee—Note 3(a)        1,877,724 
Shareholder servicing costs—Note 3(c)    1,182,407 
Distribution fees—Note 3(b)        556,539 
Custodian fees—Note 3(c)        113,673 
Prospectus and shareholders’ reports    83,165 
Trustees’ fees and expenses—Note 3(d)    39,614 
Professional fees            28,521 
Registration fees            26,012 
Interest expense—Note 2        5,629 
Miscellaneous            44,929 
Total Expenses            3,958,213 
Less—reduction in management fee     
due to undertaking—Note 3(a)    (356,026) 
Less—reduction in custody fees due     
to earnings credits—Note 1(c)    (17,161) 
Net Expenses            3,585,026 
Investment Income—Net        14,376,828 



Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    953,652 
Net realized gain (loss) on options transactions    162,967 
Net realized gain (loss) on financial futures    (870,572) 
Net realized gain (loss) on swap transactions    4,082,245 
Net realized gain (loss) on forward currency exchange contracts    (1,029,354) 
Net Realized Gain (Loss)        3,298,938 
Net unrealized appreciation (depreciation) on investments, foreign     
currency transactions, options transactions and swap transactions     
(including $692,290 net unrealized appreciation on financial futures)    1,645,884 
Net Realized and Unrealized Gain (Loss) on Investments    4,944,822 
Net Increase in Net Assets Resulting from Operations    19,321,650 

See notes to financial statements.

28

S TAT E M E N T O F C H A N G E S I N N E T A S S E T S

    Six Months Ended     
    April 30, 2007    Year Ended 
    (Unaudited)    October 31, 2006 



Operations ($):         
Investment income—net    14,376,828    29,098,492 
Net realized gain (loss) on investments    3,298,938    (8,940,636) 
Net unrealized appreciation         
(depreciation) on investments    1,645,884    13,965,911 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    19,321,650    34,123,767 



Dividends to Shareholders from ($):         
Investment income—net:         
Class A shares    (10,220,123)    (20,235,942) 
Class B shares    (3,558,794)    (8,227,665) 
Class C shares    (910,949)    (2,005,043) 
Class R shares    (483,410)    (914,250) 
Net realized gain on investments:         
Class A shares        (3,370,250) 
Class B shares        (1,597,258) 
Class C shares        (420,636) 
Class R shares        (138,793) 
Total Dividends    (15,173,276)    (36,909,837) 



Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Class A shares    56,245,103    73,125,226 
Class B shares    1,969,769    4,485,727 
Class C shares    3,232,613    4,303,204 
Class R shares    2,628,830    3,266,847 
Dividends reinvested:         
Class A shares    8,477,343    19,135,967 
Class B shares    2,622,719    6,958,684 
Class C shares    602,750    1,534,035 
Class R shares    446,425    973,095 
Cost of shares redeemed:         
Class A shares    (73,220,570)    (133,832,516) 
Class B shares    (35,397,576)    (52,339,609) 
Class C shares    (6,969,673)    (18,354,035) 
Class R shares    (3,348,100)    (5,395,291) 
Increase (Decrease) in Net Assets         
from Beneficial Interest Transactions    (42,710,367)    (96,138,666) 
Total Increase (Decrease) in Net Assets    (38,561,993)    (98,924,736) 



Net Assets ($):         
Beginning of Period    646,186,944    745,111,680 
End of Period    607,624,951    646,186,944 
Undistributed (distributions in         
excess of) investment income—net    (637,864)    158,584 

T h e F u n d 29


S TAT E M E N T O F C H A N G E S I N N E T A S S E T S (continued)

    Six Months Ended     
    April 30, 2007    Year Ended 
    (Unaudited)    October 31, 2006 



Capital Share Transactions:         
Class Aa         
Shares sold    3,910,428    5,159,844 
Shares issued for dividends reinvested    589,496    1,350,347 
Shares redeemed    (5,089,478)    (9,462,291) 
Net Increase (Decrease) in Shares Outstanding    (589,554)    (2,952,100) 



Class B a         
Shares sold    136,507    316,157 
Shares issued for dividends reinvested    182,018    488,757 
Shares redeemed    (2,457,050)    (3,687,948) 
Net Increase (Decrease) in Shares Outstanding    (2,138,525)    (2,883,034) 



Class C         
Shares sold    224,675    303,749 
Shares issued for dividends reinvested    41,981    108,311 
Shares redeemed    (485,888)    (1,298,326) 
Net Increase (Decrease) in Shares Outstanding    (219,232)    (886,266) 



Class R         
Shares sold    183,058    230,240 
Shares issued for dividends reinvested    31,062    68,614 
Shares redeemed    (232,184)    (380,711) 
Net Increase (Decrease) in Shares Outstanding    (18,064)    (81,857) 

a    During the period ended April 30, 2007, 912,557 Class B shares representing $13,159,336 were automatically 
    converted to 913,996 Class A shares and during the period ended October 31, 2006, 312,338 Class B shares 
    representing $4,444,122 were automatically converted to 312,817 Class A shares. 
See notes to financial statements. 

30

F I N A N C I A L H I G H L I G H T S

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, 2007        Year Ended October 31,     



Class A Shares    (Unaudited)    2006    2005    2004a    2003    2002 







Per Share Data ($):                             
Net asset value,                             
beginning of period        14.32    14.35    14.65    14.84    14.02    14.75 
Investment Operations:                             
Investment income—net b        .34    .63    .51    .51    .58    .76 
Net realized and unrealized                             
gain (loss) on investments        .11    .13    (.19)    (.07)    .82    (.61) 
Total from Investment Operations    .45    .76    .32    .44    1.40    .15 
Distributions:                             
Dividends from investment                             
income—net        (.36)    (.68)    (.62)    (.59)    (.58)    (.79) 
Dividends from net realized                             
gain on investments            (.11)        (.04)        (.09) 
Total Distributions        (.36)    (.79)    (.62)    (.63)    (.58)    (.88) 
Net asset value, end of period        14.41    14.32    14.35    14.65    14.84    14.02 








Total Return (%) c        3.16d    5.45    2.17    3.04    10.12    1.05 

T h e F u n d 31


F I N A N C I A L H I G H L I G H T S (continued)

    Six Months Ended                     
    April 30, 2007        Year Ended October 31,     



Class A Shares    (Unaudited)    2006    2005    2004a    2003    2002 







Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    1.10e    1.10    1.09    1.10    1.10    1.08 
Ratio of net expenses                         
to average net assets    .97e    .91    .90    1.09    1.10    1.08 
Ratio of net investment income                     
to average net assets    4.77e    4.42    3.53    3.50    3.93    5.32 
Portfolio Turnover Rate    230.90d,f 449.87f    422.59f    736.80f    823.47    617.61 






Net Assets, end of period                         
($ x 1,000)    402,422    408,266    451,437    519,446    736,291    1,009,786 

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, 2007, 
    October 31, 2006, October 31, 2005 and October 31, 2004 were 167.10%, 308.38%, 328.78% and 
    705.69%, respectively. 
See notes to financial statements. 

32

Six Months Ended                     
    April 30, 2007        Year Ended October 31,     



Class B Shares    (Unaudited)    2006    2005    2004a    2003    2002 







Per Share Data ($):                             
Net asset value,                             
beginning of period        14.35    14.37    14.67    14.87    14.04    14.77 
Investment Operations:                             
Investment income—net b        .30    .56    .45    .44    .50    .69 
Net realized and unrealized                             
gain (loss) on investments        .11    .14    (.20)    (.08)    .85    (.61) 
Total from Investment Operations    .41    .70    .25    .36    1.35    .08 
Distributions:                             
Dividends from investment                             
income—net        (.32)    (.61)    (.55)    (.52)    (.52)    (.72) 
Dividends from net realized                             
gain on investments            (.11)        (.04)        (.09) 
Total Distributions        (.32)    (.72)    (.55)    (.56)    (.52)    (.81) 
Net asset value, end of period        14.44    14.35    14.37    14.67    14.87    14.04 








Total Return (%) c        2.97d    4.93    1.67    2.50    9.72    .60 

T h e F u n d 33


F I N A N C I A L H I G H L I G H T S (continued)

    Six Months Ended                     
    April 30, 2007        Year Ended October 31,     



Class B Shares    (Unaudited)    2006    2005    2004a    2003    2002 







Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    1.58e    1.59    1.58    1.57    1.53    1.52 
Ratio of net expenses                         
to average net assets    1.47e    1.41    1.40    1.55    1.53    1.52 
Ratio of net investment income                     
to average net assets    4.24e    3.93    3.05    3.04    3.43    4.80 
Portfolio Turnover Rate    230.90d,f 449.87f    422.59f    736.80f    823.47    617.61 






Net Assets, end of period                         
($ x 1,000)    145,197    174,906    216,667    264,124    315,616    309,167 

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 less than $.01, decrease net 
    realized and unrealized gain (loss) on investments per share by less than $.01 and increase the ratio of net 
    investment income to average net assets from 3.00% to 3.04%. 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, 2007, 
    October 31, 2006, October 31, 2005 and October 31, 2004 were 167.10%, 308.38%, 328.78% and 
    705.69%, respectively. 
See notes to financial statements. 

  34

Six Months Ended                     
    April 30, 2007        Year Ended October 31,     



Class C Shares    (Unaudited)    2006    2005    2004a    2003    2002 







Per Share Data ($):                             
Net asset value,                             
beginning of period        14.30    14.32    14.62    14.82    13.99    14.72 
Investment Operations:                             
Investment income—net b        .29    .52    .41    .41    .47    .66 
Net realized and unrealized                             
gain (loss) on investments        .11    .14    (.20)    (.09)    .84    (.61) 
Total from Investment Operations    .40    .66    .21    .32    1.31    .05 
Distributions:                             
Dividends from investment                             
income—net        (.31)    (.57)    (.51)    (.48)    (.48)    (.69) 
Dividends from net realized                             
gain on investments            (.11)        (.04)        (.09) 
Total Distributions        (.31)    (.68)    (.51)    (.52)    (.48)    (.78) 
Net asset value, end of period        14.39    14.30    14.32    14.62    14.82    13.99 








Total Return (%) c        2.86d    4.67    1.42    2.24    9.47    .35 

T h e F u n d 35


F I N A N C I A L H I G H L I G H T S (continued)

    Six Months Ended                     
    April 30, 2007        Year Ended October 31,     



Class C Shares    (Unaudited)    2006    2005    2004a    2003    2002 







Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    1.81e    1.83    1.83    1.82    1.78    1.77 
Ratio of net expenses                         
to average net assets    1.73e    1.66    1.65    1.80    1.78    1.77 
Ratio of net investment income                     
to average net assets    4.02e    3.68    2.80    2.80    3.22    4.59 
Portfolio Turnover Rate    230.90d,f 449.87f    422.59f    736.80f    823.47    617.61 






Net Assets, end of period                         
($ x 1,000)    41,661    44,528    57,309    73,541    93,638    102,377 

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 2.76% to 2.80%. 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, 2007, 
    October 31, 2006, October 31, 2005 and October 31, 2004 were 167.10%, 308.38%, 328.78% and 
    705.69%, respectively. 
See notes to financial statements. 

36

Six Months Ended                     
    April 30, 2007        Year Ended October 31,     



Class R Shares    (Unaudited)    2006    2005    2004a    2003    2002 







Per Share Data ($):                             
Net asset value,                             
beginning of period        14.31    14.34    14.64    14.84    14.02    14.75 
Investment Operations:                             
Investment income—net b        .36    .66    .55    .56    .62    .81 
Net realized and unrealized                             
gain (loss) on investments        .11    .13    (.20)    (.08)    .84    (.60) 
Total from Investment Operations    .47    .79    .35    .48    1.46    .21 
Distributions:                             
Dividends from investment                             
income—net        (.38)    (.71)    (.65)    (.64)    (.64)    (.85) 
Dividends from net realized                             
gain on investments            (.11)        (.04)        (.09) 
Total Distributions        (.38)    (.82)    (.65)    (.68)    (.64)    (.94) 
Net asset value, end of period        14.40    14.31    14.34    14.64    14.84    14.02 








Total Return (%)        3.30c    5.73    2.42    3.38    10.58    1.49 

T h e F u n d 37


F I N A N C I A L H I G H L I G H T S (continued)

    Six Months Ended                     
    April 30, 2007        Year Ended October 31,     



Class R Shares    (Unaudited)    2006    2005    2004a    2003    2002 







Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    .79d    .76    .72    .70    .68    .65 
Ratio of net expenses                         
to average net assets    .73d    .66    .65    .69    .68    .65 
Ratio of net investment income                     
to average net assets    5.01d    4.67    3.77    4.02    4.18    5.69 
Portfolio Turnover Rate    230.90c,e 449.87e    422.59e    736.80e    823.47    617.61 






Net Assets, end of period                         
($ x 1,000)    18,344    18,487    19,699    19,219    11,259    7,970 

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 less than $.01, decrease net 
    realized and unrealized gain (loss) on investments per share by less than $.01 and increase the ratio of net 
    investment income to average net assets from 3.98% to 4.02%. 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    Not annualized. 
d    Annualized. 
e    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2007, 
    October 31, 2006, October 31, 2005 and October 31, 2004 were 167.10%, 308.38%, 328.78% and 
    705.69%, respectively. 
See notes to financial statements. 

38

N O T E S T O F I N A N C I A L S TAT E M E N T S ( U n a u d i t e d )

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”) serves as the fund’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).

On May 24, 2007, the shareholders of Mellon Financial and The Bank of New York Company, Inc. approved the proposed merger of the two companies. The new company will be called The Bank of New York Mellon Corporation.As part of this transaction, Dreyfus would become a wholly-owned subsidiary of The Bank of New York Mellon Corporation.The transaction is subject to certain regulatory approvals, as well as other customary conditions to closing. Subject to such approvals and the satisfaction of the other conditions, Mellon Financial and The Bank of New York Company, Inc. expect the transaction to be completed in the third quarter of 2007.

Dreyfus Service 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 R. 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 convert 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.

T h e F u n d 39


N O T E S T O F I N A N C I A L S TAT E M E N T S ( U n a u d i t e d ) (continued)

Class R 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 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 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 quota-

40

tions 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 additional 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.

T h e F u n d 41


N O T E S T O F I N A N C I A L S TAT E M E N T S ( U n a u d i t e d ) (continued)

(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 gain and loss 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 an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, 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. Cash collateral is invested in certain money

42

market mutual funds managed by the Manager.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.

(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 gain, if any, 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 gain can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gain.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.

The FASB released 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 benefit or expense in the current year.Adoption of FIN 48 is required for fiscal years beginning after December 15,2006 and

T h e F u n d 43


N O T E S T O F I N A N C I A L S TAT E M E N T S ( U n a u d i t e d ) (continued)

is to be applied to all open tax years as of the effective date. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.

The fund has an unused capital loss carryover of $21,316,749 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2006. 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 and $9,063,448 expires in fiscal 2014.

The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2006 were as follows: ordinary income $36,909,837. 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 average daily amount of borrowings outstanding under the leveraging arrangement during the period ended April 30, 2007, was approximately $194,807, with a related weighted average annualized interest rate of 5.83% ..

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, 2006 through September 30, 2007, that, if the fund’s aggregate expenses, exclusive of

44

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 $356,026 during the period ended April 30, 2007.

During the period ended April 30, 2007, the Distributor retained $1,743 from commissions earned on sales of the fund’s Class A shares and $127,599 and $2,107 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, 2007, Class B and Class C shares were charged $397,394 and $159,145, 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 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, 2007, Class A, Class B and Class C shares were charged $507,825, $198,697 and $53,048, respectively, pursuant to the Shareholder Services Plan.

T h e F u n d 45


N O T E S T O F I N A N C I A L S TAT E M E N T S ( U n a u d i t e d ) (continued)

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, 2007, the fund was charged $152,201 pursuant to the transfer agency agreement.

The fund compensates Mellon Bank, N.A., an affiliate of the Manager, under a custody agreement for providing custodial services for the fund. During the period ended April 30, 2007, the fund was charged $113,673 pursuant to the custody agreement.

During the period ended April 30, 2007, the fund was charged $2,044 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 $273,686, Rule 12b-1 distribution plan fees $85,743, shareholder services plan fees $122,981, custodian fees $55,825, chief compliance officer fees $3,407 and transfer agency per account fees $70,656.

(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.

(e) Pursuant to an exemptive order from the SEC, the fund may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by the Manager.

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, 2007, amounted to $2,013,250,480 and $2,098,290,335, respectively, of which $556,301,750 in purchases and $556,437,371 in sales were from mortgage dollar roll transactions.

46

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, 2007, 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.

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

T h e F u n d 47


N O T E S T O F I N A N C I A L S TAT E M E N T S ( U n a u d i t e d ) (continued)

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, 2007:             
 
    Face Amount        Options Terminated 

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





Contracts outstanding                 
October 31, 2006    48,790,000    175,644         
Contracts written    363,540,000    538,187         
Contracts terminated:                 
Contracts closed    87,800,000    189,404    195,533    (6,129) 
Contracts expired    77,790,000    265,350        265,350 
Total contracts                 
terminated    165,590,000    454,754    195,533    259,221 
Contracts outstanding             
April 30, 2007    246,740,000    259,077         

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 transac-tions.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 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

48

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, 2007:

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





Purchases:                 
Icelandic Krona,                 
expiring 6/20/2007 103,865,000    1,516,002    1,622,328    106,326 
Sales:        Proceeds ($)         
Euro,                 
expiring 6/20/2007    3,016,468    4,030,843    4,125,925    (95,082) 
Total                11,244 

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 maxi-

T h e F u n d 49


N O T E S T O F I N A N C I A L S TAT E M E N T S ( U n a u d i t e d ) (continued)

mum 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, 2007:

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




 
900,000    ABX HE    Morgan             
    2006-2 Index    Stanley    1.33    5/25/2046    (113,690) 
1,160,000    ABX HE    Deutsche             
    2006-2 Index    Bank    1.33    5/25/2046    33,287 
370,000    ABX HE    J.P. Morgan             
    2006-2 Index    Chase Bank    1.33    5/25/2046    9,925 
3,160,000    ABX HE BBB    Deutsche             
    2006-2 Index    Bank    1.33    5/25/2046    45,433 
5,375,000    ABX HE BBB    J.P. Morgan             
    2006-2 Index    Chase Bank    1.33    5/25/2046    (690,466) 
3,892,000    Alcoa, 6.5%,                 
    6/1/2011    UBS    (.52)    6/20/2010    (49,116) 
12,500,000    Altria, 7%,                 
    11/4/2013    Citigroup    (.27)    12/20/2011    (2,292) 
6,810,000    AT&T, 5.1%,    J.P. Morgan             
    9/15/2014    Chase Bank    (.49)    3/20/2017    (35,054) 
5,310,000    AT&T, 5.1%,    J.P. Morgan             
    9/15/2014    Chase Bank    (.44)    3/20/2017    (6,563) 
3,830,000    Avon Products,                 
    7.15%,    J.P. Morgan             
    11/15/2009    Chase Bank    (.44)    3/20/2017    (30,619) 
2,550,000    Avon Products,                 
    7.15%,    J.P. Morgan             
    11/15/2009    Chase Bank    (.48)    3/20/2017    (28,402) 
1,000,000    Avon Products,                 
    7.15%,    J.P. Morgan             
    11/15/2009    Chase Bank    (.49)    3/20/2017    (11,597) 
1,670,000    Avon Products,                 
    7.15%,    J.P. Morgan             
    11/15/2009    Chase Bank    (.45)    3/20/2017    (14,663) 
3,360,000    Avon Products,                 
    7.15%,    Morgan             
    11/15/2009    Stanley    (.48)    3/20/2017    (37,424) 
3,110,000    CDX IG7 3-5%                 
    10yr. Index    UBS    5.88    12/20/2016    (172,577) 
3,110,000    CDX IG7 3-5%                 
    10yr. Index    Barclays    5.90    12/20/2016    (168,438) 
6,220,000    CDX IG7 3-5%                 
    7yr. Index    UBS    (2.65)    12/20/2013    233,871 
6,220,000    CDX IG7 3-5%                 
    7yr. Index    Barclays    (2.60)    12/20/2013    247,817 
2,979,000    Century Tel,                 
    7.875%,                 
    8/15/2012    Citigroup    (1.16)    9/20/2015    (52,736) 

50

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




 
866,000    Century Tel,                 
    7.875%,    Morgan             
    8/15/2012    Stanley    (1.15)    9/20/2015    (14,743) 
3,892,000    ConocoPhilips,                 
    4.75%,                 
    10/15/2012    UBS    (.29)    6/20/2010    (28,139) 
3,100,000    CSMC 2006-C5                 
    J 5.96%,    Morgan             
    12/15/2039    Stanley    (.80)    12/15/2039    255,757 
3,250,000    Dow Jones                 
    CDX.EM.6 Index    UBS    1.40    12/20/2011    53,840 
3,300,000    Dow Jones    Deutsche             
    CDX.EM.6 Index    Bank    1.40    12/20/2011    114,721 
4,250,000    Dow Jones                 
    CDX.EM.6 Index    UBS    1.40    12/20/2011    57,169 
2,000,000    Dow Jones    Morgan             
    CDX.EM.6 Index    Stanley    1.40    12/20/2011    26,526 
3,860,000    Dow Jones    Morgan             
    CDX.NA.IG.4 Index    Stanley    (.69)    6/20/2010    (76,633) 
3,055,000    Dow Jones                 
    CDX.NA.IG.4 Index    Citigroup    (.69)    6/20/2010    (60,652) 
6,167,000    Dow Jones    Morgan             
    CDX.NA.IG.4 Index    Stanley    (.35)    6/20/2010    (59,402) 
3,871,000    Dow Jones                 
    CDX.NA.IG.4 Index    Merrill Lynch    (.31)    6/20/2010    (31,964) 
9,270,000    Dow Jones                 
    CDX.NA.IG.7 Index    Citigroup    (1.09)    12/20/2016    134,467 
18,540,000    Dow Jones                 
    CDX.NA.IG.7 Index    Citigroup    .51    12/20/2016    (120,538) 
9,850,000    Dow Jones    J.P. Morgan             
    CDX.NA.IG.7 Index    Chase Bank    (1.10)    12/20/2016    140,994 
19,700,000    Dow Jones    J.P. Morgan             
    CDX.NA.IG.7 Index    Chase Bank    .51    12/20/2016    (120,445) 
6,210,000    Ford, 7.45%,    J.P. Morgan             
    7/16/2031    Chase Bank    4.50    3/20/2012    (206,809) 
1,585,000    Freeport-McMoran                 
    C & G, 10.125%,                 
    2/1/2010    Merrill Lynch    .92    6/20/2010    6,977 
6,210,000    General Motors,                 
    7.125%,    J.P. Morgan             
    7/15/2013    Chase Bank    (3.30)    3/20/2012    202,058 
2,350,000    Home Depot,    Deutsche             
    3.75%, 9/15/2009    Bank    (.56)    3/20/2017    (21,490) 
13,265,000    JPMCC                 
    2006-CB15,                 
    CL.AJ, 5.89%,                 
    6/12/2043    Merrill Lynch    (.13)    6/20/2016    (42,689) 

T h e F u n d 51


N O T E S T O F I N A N C I A L S TAT E M E N T S ( U n a u d i t e d ) (continued)

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




 
1,900,000    Kaupthing Bank,    Deutsche             
    5.52%, 12/1/2009    Bank    .65    9/20/2007    5,545 
7,475,000    Kaupthing Bank,    Deutsche             
    5.52%, 12/1/2009    Bank    .52    9/20/2007    16,869 
490,000    Kaupthing Bank,    J.P. Morgan             
    5.52%, 12/1/2009    Chase Bank    .57    9/20/2007    1,231 
1,420,000    Kimberly Clark,                 
    6.875%,    J.P. Morgan             
    2/15/2014    Chase Bank    (.37)    12/20/2016    (11,404) 
1,100,000    Kimberly Clark,                 
    6.875%,    Morgan             
    2/15/2014    Stanley    (.38)    12/20/2016    (9,685) 
5,400,000    Kimberly Clark,                 
    6.875%,    Morgan             
    2/15/2014    Stanley    (.37)    12/20/2016    (43,367) 
4,630,000    Kimberly Clark,                 
    6.875%,    J.P. Morgan             
    2/15/2014    Chase Bank    (.37)    12/20/2016    (37,183) 
310,000    Kimberly Clark,                 
    6.875%,    Morgan             
    2/15/2014    Stanley    (.37)    12/20/2016    (2,490) 
3,230,000    Kraft Foods,                 
    5.625%,    Goldman             
    11/1/2011    Sachs & Co.    (.53)    6/20/2017    3,146 
3,000,000    Kraft Foods,                 
    5.625%,                 
    11/1/2011    Barclays    (.57)    6/20/2017    2,697 
7,790,000    Morgan Stanley,                 
    6.6%, 4/1/2012    UBS    (.62)    6/20/2015    (140,193) 
6,250,000    Northern Tobacco,    Lehman             
    5%, 6/1/2046    Brothers    1.35    12/20/2011    (51,725) 
1,823,000    Nucor, 4.875%,    Bear             
    10/1/2012    Stearns & Co.    (.40)    6/20/2010    (19,025) 
3,300,000    Republic of                 
    Venezuela, 9.25,    Deutsche             
    9/15/2027    Bank    (2.87)    6/20/2013    (133,138) 
2,000,000    Republic of                 
    Venezuela, 9.25,    Morgan             
    9/15/2027    Stanley    (2.53)    1/20/2017    (43,605) 
3,250,000    Republic of                 
    Venezuela, 9.25,                 
    9/15/2027    UBS    (2.33)    11/20/2016    (45,277) 
4,250,000    Republic of                 
    Venezuela, 9.25,                 
    9/15/2027    UBS    (2.33)    1/20/2017    (30,994) 
6,250,000    Southern                 
    California Tobacco,                 
    5%, 6/1/2037    Citigroup    1.35    12/20/2011    (51,725) 
3,110,000    Structured Index    Morgan Stanley    2.25    6/20/2016    34,627 

52

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




 
5,200,000    Structured Model    J.P. Morgan             
    Portfolio 0-3%    Chase Bank    -    9/20/2013    221,000 
2,060,000    Structured Model    Morgan             
    Portfolio 0-3%    Stanley    -    9/20/2013    121,254 
3,950,000    Structured Model                 
    Portfolio 0-3%    UBS    -    9/20/2013    163,925 
1,520,000    TABX.HE.07-1.06-                 
    2.BBB-.40-100,    Lehman             
    5/25/2046    Brothers    .72    5/25/2046    (9,582) 
4,812,000    TABX.HE.07-1.06-                 
    2.BBB-.40-100,    Morgan             
    5/25/2046    Stanley    .72    5/25/2046    (238,654) 
3,125,000    Univision                 
    Communication,    Lehman             
    7.85%, 7/15/2011    Brothers    2.60    6/20/2010    11,440 
2,150,000    VF, 8.5%,    Morgan             
    10/1/2010    Stanley    (.72)    6/20/2016    (53,580) 
2,610,000    VF, 8.5%,    Morgan             
    10/1/2010    Stanley    (.46)    6/20/2016    (30,891) 
1,100,000    VF, 8.5%,    Morgan             
    10/1/2010    Stanley    (.45)    6/20/2011    (12,592) 
3,855,000    VF, 8.5%,                 
    10/1/2010    UBS    (.45)    6/20/2011    (44,130) 
Total                    (1,061,805) 

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. The following summarizes open interest rate swaps entered into by the fund at April 30, 2007:

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




 
407,720,000    CZK-3 MONTH                 
    PRIBOR    Merrill Lynch    3.02    2/14/2009    (52,606) 
23,800,000    EUR- 6 MONTH    J.P. Morgan             
    EURIBOR    Chase Bank    (4.21)    2/1/2009    63,109 
7,501,000,000    JPY-6 MONTH                 
    LIBOR BBA    UBS    .88    5/11/2008    123,617 
1,812,495,000    JPY-6 MONTH                 
    YENIBOR    Merrill Lynch    1.35    1/19/2012    42,655 
217,850,000    SEK-3 MONTH    J.P. Morgan             
    STIBOR    Chase Bank    3.75    12/4/2008    158,494 
18,195,000    USD-3 MONTH    J.P. Morgan             
    LIBOR BBA    Chase Bank    5.56    8/3/2016    559,462 
Total                    894,731 

T h e F u n d 53


N O T E S T O F I N A N C I A L S TAT E M E N T S ( U n a u d i t e d ) (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, 2007, accumulated net unrealized appreciation on investments was $4,984,167, consisting of $7,880,023 gross unrealized appreciation and $2,895,856 gross unrealized depreciation.

At April 30, 2007, 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).

NOTE 5—Subsequent Event:

The fund’s Board of Trustees approved the redesignation of the fund’s Class R shares as Class I shares, effective June 1, 2007.The description of the eligibility requirements for Class I shares remains the same as it was for Class R shares.

54

N O T E S



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.    Schedule of 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. 
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.

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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

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.

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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)

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Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-CSR’ Filing    Date    Other Filings
11/15/07
9/30/07
Filed on / Effective on:6/21/07
6/1/07
5/24/07
For Period End:4/30/07NSAR-A
11/1/06
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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