N-CSR 1 form031.htm SEMI-ANNUAL REPORT form031
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

FORM N-CSR 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
INVESTMENT COMPANIES

Investment Company Act file number    811-4748 

DREYFUS PREMIER FIXED INCOME FUNDS 
(Exact name of Registrant as specified in charter) 

c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices) (Zip code) 
 
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:    4/30/05     

        FORM N-CSR 
Item 1.    Reports to Stockholders.     

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

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

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

    Contents 
 
    THE FUND 
2    Letter from the Chairman 
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 
21    Statement of Financial Futures 
21    Statement of Options Written 
22    Statement of Assets and Liabilities 
23    Statement of Operations 
24    Statement of Changes in Net Assets 
27    Financial Highlights 
35    Notes to Financial Statements 
50    Information About the Review and Approval 
    of the Fund’s Management Agreement 
    FOR MORE INFORMATION 
    Back Cover 

Dreyfus Premier 
Core Bond Fund 

The Fund

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Premier Core Bond Fund, covering the six-month period from November 1, 2004, through April 30, 2005. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s primary portfolio manager, Kent Wosepka.

The six-month reporting period produced mixed results for most fixed-income securities.Although the Federal Reserve Board began to raise short-term interest rates before the reporting period in June 2004, longer-term bonds have remained remarkably resilient through 2004. Nonetheless, the first four months of 2005 saw heightened bond market volatility as higher interest rates and renewed inflationary pressures took their toll on investor sentiment. These factors led to price erosion late in the reporting period among corporate bonds and, to a lesser extent, U.S. government securities.

Nonetheless, fixed-income securities have held up well compared to previous periods of rising short-term interest rates. Strong demand from domestic and foreign investors have supported prices of U.S. Treasury securities, and stronger balance sheets and better business conditions have bolstered prices of corporate bonds. In our view, the bond market’s surprising strength represents yet another example of how a long-term investment perspective and a steady asset allocation strategy can benefit investors. As always, we encourage you to talk regularly with your financial advisor about the investment strategies that may be appropriate for you.

Thank you for your continued confidence and support.

The Dreyfus Corporation
May 16, 2005
2

DISCUSSION OF FUND PERFORMANCE

Kent Wosepka, Portfolio Manager

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

For the six-month period ended April 30, 2005, the fund’s Class A shares achieved a 1.70% total return and distributed aggregate income dividends of $0.2970 per share, Class B shares achieved a 1.45% total return and distributed aggregate income dividends of $0.2617 per share, Class C shares achieved a 1.32% total return and distributed aggregate income dividends of $0.2428 per share and Class R shares achieved a 1.83% total return and distributed aggregate income dividends of $0.3158 per share.1 In comparison, the fund’s benchmark, the Lehman Brothers U.S.Aggregate Index (the “Index”), achieved a total return of 0.98% for the same period.2

Despite rising short-term interest rates, longer-term bond prices held up relatively well.The more interest-rate-sensitive areas of the market benefited from low inflation expectations during the first half of the reporting period, while corporate bonds rallied amid better business conditions. Market weakness during the reporting period’s second half was not enough to fully offset the first half ’s gains.The fund produced higher returns than the Index for the reporting period overall, primarily due to the success of its duration management, sector allocation and yield-curve positioning strategies.

Note to shareholders: On January 31, 2005, Kent Wosepka and Marc Seidner became the fund’s primary and secondary portfolio managers, respectively. Each is a dual employee of Dreyfus and Standish Mellon Asset Management, LLC (Standish), a subsidiary of Mellon Financial Corporation and a Dreyfus affiliate.They apply Standish’s proprietary processes in managing the fund. Mr.Wosepka also is a senior portfolio manager for Active Core Strategies with Standish, and joined Standish in 1998. Mr. Seidner also is the Director of Active Core Strategies with Standish, and joined Standish in 1995.

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

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?

The Federal Reserve Board (the “Fed”) continued to raise short-term interest rates throughout the reporting period, driving the overnight federal funds rate to 2.75% by the end of April 2005. Contrary to historical norms, however, longer-term bond prices remained relatively stable. Persistently low inflation and improving business conditions helped support prices of U.S. government securities and corporate bonds, respectively, during much of the reporting period.

As short-term yields rose and longer-term yields remained stable, yield differences narrowed among bonds of various maturities. The fund benefited from this trend by maintaining a “barbell” strategy that focused on securities at each end of the maturity spectrum to produce an average duration — a measure of sensitivity to changing interest rates — that was slightly shorter than industry averages.

In addition, the fund benefited from its holdings of corporate bonds early in the reporting period as default rates remained near historical lows in the recovering economy. As their prices rose, we reduced the fund’s exposure to corporate bonds. This shift away from corporate bonds benefited the fund’s relative performance during the second half of the reporting period, when deteriorating business fundamentals among major U.S. automotive companies caused corporate bond prices to retreat. In addition, rising energy prices and stronger labor

4

markets suggested that long-dormant inflationary pressures might be resurfacing, adversely affecting prices of most U.S. government securities. However, because we had maintained relatively light exposure to mortgage-backed securities and increased the fund’s holdings of Treasury Inflation Protected Securities (TIPS), the fund was spared the full brunt of market weakness. The fund also received positive contributions to its performance from its holdings of high-quality commercial mortgages and asset-backed securities.

What is the fund’s current strategy?

Just days after the end of the reporting period, the Fed raised the federal funds rate to 3%, and further increases are widely expected. In addition, a rally among U.S. government securities in April left their yields at levels similar to those from one year earlier, when short-term interest rates were two full percentage points lower. Accordingly, we have continued to maintain a relatively conservative investment posture, including a modestly short average duration and a relatively light position in corporate bonds. In our judgment, these are prudent strategies in a rising interest-rate environment.

May 16, 2005
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 fund expenses by The Dreyfus Corporation pursuant to an agreement in effect from 
    October 1, 2004, through September 30, 2005, 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. 

The Fund 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 Fund from November 1, 2004 to April 30, 2005. 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, 2005         
    Class A    Class B    Class C    Class R 
Expenses paid per $1,000 †    $ 4.55    $ 6.99    $ 8.24    $ 3.25 
Ending value (after expenses)    $1,017.00    $1,014.50    $1,013.20    $1,018.30 

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

Using the SEC’s method to compare expenses

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

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended April 30, 2005

    Class A    Class B    Class C    Class R 
Expenses paid per $1,000 †    $ 4.56    $ 7.00    $ 8.25    $ 3.26 
Ending value (after expenses)    $1,020.28    $1,017.85    $1,016.61    $1,021.57 

† Expenses are equal to the fund’s annualized expense ratio of .91% for Class A, 1.40% for Class B, 1.65% for Class C and .65% for Class R, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6
STATEMENT OF INVESTMENTS
April 30, 2005 (Unaudited)
    Principal         
Bonds and Notes—101.2%    Amount a    Value ($) 
Agricultural—.5%             
Altria:             
Debs., 7.75%, 2027    1,750,000    b    2,060,093 
Notes, 7%, 2013    1,840,000        2,035,225 
            4,095,318 
Airlines—.0%             
USAir,             
Enhanced Equipment Notes, Ser. C, 8.93%, 2009    1,435,843    c    144 
Asset-Backed Ctfs./Automobile Receivables—1.2%         
AmeriCredit Automobile Receivables Trust:             
Ser. 2002-EM, Cl. A3A, 2.97%, 2007    380,776        380,697 
Ser. 2003-AM, Cl. A3A, 2.37%, 2007    144,624        144,549 
Capital One Auto Finance Trust,             
Ser. 2003-B, Cl. A4, 3.18%, 2010    350,000        343,903 
Ford Credit Auto Owner Trust,             
Ser. 2005-B, Cl. B, 4.64%, 2010    1,985,000        1,996,885 
GS Auto Loan Trust,             
Ser. 2004-1, Cl. A4, 2.65%, 2011    475,000        462,120 
Navistar Financial Corp. Owner Trust,             
Ser. 2003-A, Cl. A4, 2.24%, 2009    875,000        851,592 
Onyx Acceptance Grantor Trust,             
Ser. 2003-D, Cl. A4, 3.2%, 2010    750,000        742,231 
Triad Auto Receivables Owner Trust,             
Ser. 2002-A, Cl. A4, 3.24%, 2009    675,000        672,612 
WFS Financial Owner Trust:             
Ser. 2004-1, Cl. A4, 2.81%, 2011    500,000        487,955 
Ser. 2005-2 Cl. B, 4.57%, 2012    2,560,000        2,573,200 
Whole Auto Loan Trust,             
Ser. 2003-1, Cl. A3A, 1.84%, 2006    750,000        747,379 
            9,403,123 
Asset-Backed Ctfs./Credit Cards—1.7%             
Capital One Multi-Asset Execution Trust,             
Ser. 2004—C1, Cl. C1, 3.4%, 2009    1,150,000        1,135,583 
MBNA Credit Card Master Note Trust,             
Ser. 2002-C1, Cl. C1, 6.8%, 2014    11,322,000        12,499,972 
            13,635,555 
Asset-Backed Ctfs./Home Equity Loans—7.1%             
ACE Securities:             
Ser. 2005-HE1, Cl. A2A, 3.14%, 2035    10,324,121    d    10,331,017 
Ser. 2005-HE2, Cl. A2A, 3.11%, 2035    6,165,575    d    6,169,149 

The Fund 7

S T A T 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)

    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Asset-Backed Ctfs./Home Equity Loans (continued)         
Accredited Mortgage Loan Trust,             
Ser. 2005-1 Cl. A2A, 3.12%, 2035    6,636,538    d    6,641,402 
Bayview Financial Acquisition Trust,             
Ser. 2005-B, Cl. 1A6, 5.208%, 2039    2,550,000        2,565,141 
Bear Stearns Asset Backed Securities:             
Ser. 2005-HE2, Cl. A1, 3.13%, 2035    2,314,064    d    2,315,660 
Ser. 2005-HE3, Cl. A1, 2.93%, 2035    1,930,305    d    1,931,289 
Ser. 2005-HE4, Cl. A1, 3.16%, 2035    2,405,000    d    2,405,000 
Block Mortgage Finance,             
Ser. 1999-1, Cl. A4, 6.6%, 2030    714,178        714,243 
CIT Group Home Equity Loan Trust,             
Ser. 2002-1, Cl. AF4, 5.97%, 2029    192,061        194,359 
Carrington Mortgage Loan Trust,             
Ser. 2005-OPT2, Cl. A1A, 3.18%, 2035    2,175,000        2,175,000 
Citigroup Mortgage Loan Trust,             
Ser. 2005-HE1, Cl.A3A, 3.12%, 2035    2,785,000    d    2,785,000 
Delta Funding Home Equity Loan Trust,             
Ser. 2000-2, Cl. A6F, 7.97%, 2030    2,315        2,315 
Equifirst Mortgage Loan Trust,             
Ser. 2005-1, Cl. A1, 3.08%, 2035    8,404,798    d    8,409,671 
Fremont Home Loan Trust,             
Ser. 2005-1, Cl. 2A1, 3.12%, 2035    2,351,328    d    2,352,692 
Mastr Asset Backed Securities Trust,             
Ser. 2005-WMC1, Cl. A1, 3.254%, 2035    2,300,000    d    2,300,000 
Morgan Stanley ABS Capital I,             
Ser. 2005-WMC3, Cl. A2A, 3.18%, 2035    2,500,000        2,500,000 
Residential Asset Securities,             
Ser. 2005-EMX1, Cl. AI1, 3.12%, 2035    2,194,639    d    2,196,110 
            55,988,048 
Asset-Backed Ctfs./Manufactured Housing—.5%         
Green Tree Financial,             
Ser. 1994-7, Cl. M1, 9.25%, 2020    3,800,000        4,109,953 
Asset-Backed/Other—5.6%             
Conseco Finance Home Loan Trust,             
Ser. 2000-E, Cl. A5, 8.02%, 2031    2,567,731        2,574,278 
Countrywide Asset-Backed Ctfs. II,             
Ser. 2005-2, Cl. A1, 3.11%, 2035    1,460,459    d    1,461,306 
Morgan Stanley ABS Capital I,             
Ser. 2005-WMC2, Cl. A2A, 3.1%, 2035    5,512,898    d    5,516,094 

8

        Principal         
Bonds and Notes (continued)        Amount a    Value ($) 
Asset-Backed/Other (continued)                 
Park Place Securities:                 
Ser. 2005-WHQ1, Cl. A3A, 3.13% 2035        5,547,492    d    5,553,050 
Ser. 2005-WHQ2, Cl. A2A, 3.16%, 2035        4,220,000    d    4,220,000 
Residential Asset Mortgage Products:                 
Ser. 2003-RZ5, Cl. A2, 3.18%, 2027        505,390        504,319 
Ser. 2004-RS12, Cl. AI6, 4.547%, 2034        1,450,000        1,431,432 
Ser. 2005-RS2, Cl. AII1, 3.13%, 2035        3,333,962    d    3,336,703 
Ser. 2005-RS2, Cl. M2, 3.5%, 2035        2,105,000    d    2,111,108 
Ser, 2005-RS2, Cl, M3, 3.57%, 2035        600,000    d    602,435 
Ser. 2005-RS3, Cl. AIA1, 2.95%, 2035        3,495,267    d    3,497,375 
Ser. 2005-RZ1, Cl. A1, 3.12%, 2034        2,156,491    d    2,157,741 
Saxon Asset Securities Trust,                 
Ser. 2004-2, Cl. AF2, 4.15%, 2035        9,715,000        9,653,454 
Specialty Underwriting & Residential Finance,             
Ser. 2005-BC1, Cl. A1A, 3.13%, 2035        2,136,296    d    2,137,534 
                44,756,829 
Auto Manufacturing—.7%                 
General Motors:                 
Bonds, 8.375%, 2033    EUR    1,575,000 b    1,539,830 
Sr. Debs, 8.375%, 2033        5,241,000    b    3,998,160 
                5,537,990 
Banking—2.0%                 
Chuo Mitsui Trust & Banking,                 
Sub. Notes, 5.506%, 2049        1,000,000    e    957,735 
Credit Suisse First Boston,                 
Sub. Notes, 7.75%, 2006        3,000,000    e    3,115,719 
Dresdner Bank,                 
Notes, 3.2%, 2005        2,600,000    d    2,595,335 
Hibernia,                 
Sub. Notes, 5.35%, 2014        1,710,000        1,726,353 
Industrial Bank of Korea,                 
Sub. Notes, 4%, 2014        1,080,000    e    1,046,806 
Washington Mutual,                 
Notes, 2.4%, 2005        3,100,000        3,081,016 
Zions Bancorporation:                 
Sr. Notes, 2.7%, 2006        1,350,000        1,333,576 
Sub. Notes, 6%, 2015        1,990,000        2,124,717 
                15,981,257 

The Fund 9

S T A T 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)

    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Building Materials—.1%             
DR Horton,             
Sr. Notes, 5.875%, 2013    720,000        723,164 
Chemicals—1.5%             
ICI Wilmington,             
Notes, 5.625%, 2013    1,525,000        1,550,847 
International Flavors & Fragrance,             
Notes, 6.45%, 2006    4,240,000        4,339,886 
Lubrizol,             
Debs., 6.5%, 2034    1,865,000        2,021,604 
RPM International:             
Bonds, 6.25%, 2013    1,955,000        2,064,680 
Sr. Notes, 4.45%, 2009    2,090,000    e    2,065,488 
            12,042,505 
Commercial Mortgage Pass-Through Ctfs.—.8%         
Bear Stearns Commercial Mortgage Securities,         
Ser. 2005-T18, Cl. A2, 4.556%, 2042    1,900,000        1,905,344 
Calwest Industrial Trust,             
Ser. 2002-CALW, Cl. A, 6.127%, 2017    2,035,000    e    2,201,138 
Commercial Mortgage Pass Through Ctfs.,             
Ser. 2000-C1, Cl. A1, 7.206%, 2033    480,928        503,271 
Nomura Asset Acceptance,             
Ser. 2005-WF1, Cl. 2A5, 5.16%, 2035    1,745,000        1,756,997 
            6,366,750 
Commercial Services—1.0%             
Aramark Services,             
Sr. Notes, 6.375%, 2008    2,600,000        2,733,281 
Deluxe,             
Notes, Ser. B, 3.5%, 2007    3,300,000        3,228,911 
Erac USA Finance,             
Notes, 7.95%, 2009    1,095,000    e    1,250,404 
RR Donnelley & Sons,             
Notes, 5%, 2006    1,000,000        1,009,530 
            8,222,126 
Computers—.3%             
Hewlett-Packard,             
Notes, 5.75%, 2006    2,665,000        2,736,171 

10
    Principal     
Bonds and Notes (continued)    Amount a    Value ($) 
Diversified Financial Services—3.7%         
Amvescap,         
Sr. Notes, 5.9%, 2007    1,960,000    2,020,600 
Capital One Bank,         
Sub. Notes, 6.5%, 2013    2,624,000    2,842,907 
Countrywide Home Loans:         
Medium-Term Notes, Ser. J, 5.5%, 2006    1,200,000    1,221,637 
Medium-Term Notes, Ser. L, 2.875%, 2007    3,345,000    3,268,232 
Notes, 4.125%, 2009    2,010,000    1,969,603 
Fondo LatinoAmericano De Reservas,         
Notes, 3%, 2006    4,555,000 e    4,513,554 
Glencore Funding,         
Notes, 6%, 2014    3,920,000 e    3,719,237 
HSBC Finance,         
Notes, 5.75%, 2007    2,435,000    2,502,335 
Pemex Finance,         
Bonds, 9.69%, 2009    4,500,000    5,041,868 
Texton Financial,         
Notes, 2.75%, 2006    2,300,000    2,256,599 
        29,356,572 
Electric Utilities—2.2%         
Ameren,         
Bonds, 4.263%, 2007    800,000    800,305 
FPL Energy National Wind,         
Notes, 5.608%, 2024    750,000 e    759,149 
PPL Capital Funding Trust I,         
Sub. Notes, 7.29%, 2006    185,000    190,451 
Pacific Gas & Electric:         
First Mortgage, 4.2%, 2011    175,000    171,248 
First Mortgage, 4.8%, 2014    3,516,000    3,496,293 
Public Service Co. of Colorado,         
First Mortgage, Ser. 12, 4.875%, 2013    5,963,000    6,019,392 
Sierra Pacific Power,         
Mortgage Notes, 6.25%, 2012    1,050,000    1,052,625 
TXU,         
Notes, 4.8%, 2009    5,450,000 e    5,347,638 
        17,837,101 

T h e F u n d 11

  STATEMENT OF INVESTMENTS (continued)
        Principal         
Bonds and Notes (continued)        Amount a    Value ($) 
Entertainment—.7%                 
GTECH,                 
Notes, 4.75%, 2010        3,965,000        3,927,785 
Mohegan Tribal Gaming Authority,                 
Sr. Notes, 6.125%, 2013        1,355,000    b,e    1,341,450 
                5,269,235 
Environmental Control—.4%                 
Waste Management:                 
Sr. Notes, 6.5%, 2008        1,280,000    b    1,363,734 
Sr. Notes, 7%, 2028        1,350,000        1,542,746 
                2,906,480 
Food & Beverages—.9%                 
Kraft Foods,                 
Notes, 4.625%, 2006        3,918,000        3,947,604 
Safeway:                 
Notes, 4.125%, 2008        1,295,000        1,267,217 
Notes, 5.8%, 2012        530,000    b    549,411 
Stater Brothers,                 
Sr. Notes, 8.125%, 2012        1,250,000        1,168,750 
Unilever Capital,                 
Sr. Notes, 7.125%, 2010        450,000        508,919 
                7,441,901 
Foreign/Governmental—7.9%                 
Argentina Bonos,                 
Bonds, 3.01%, 2012        4,815,000    d    4,033,843 
Australia Government,                 
Bonds, Ser. 121, 5.25%, 2010    AUD    20,000,000        15,566,058 
Banco Nacional de Desenvolvimento                 
Economico e Social,                 
Notes, 5.832%, 2008        3,920,000    d    3,921,215 
Deutsche Bundesrepublik:                 
Bonds, Ser. 03, 4.5%, 2013    EUR    2,755,000        3,860,945 
Bonds, Ser. 03, 4.75%, 2034    EUR    5,435,000        7,937,786 
Bonds, Ser. 98, 4.125%, 2008    EUR    8,960,000        12,091,453 
Russian Government:                 
Bonds, 10%, 2007        7,115,000    e    7,915,438 
Bonds, 12.75%, 2028        2,500,000        4,283,440 
United Mexican States,                 
Notes, 6.625%, 2015        3,130,000    b    3,322,495 
                62,932,673 

12

    Principal     
Bonds and Notes (continued)    Amount a    Value ($) 
Gaming & Lodging—.2%         
MGM Mirage,         
Sr. Notes, 6%, 2009    1,310,000    1,298,538 
Health Care—.7%         
HCA,         
Notes, 5.5%, 2009    2,707,000    2,699,293 
UnitedHealth:         
Notes, 5.2%, 2007    1,100,000    1,121,154 
Notes, 7.5%, 2005    1,545,000    1,572,640 
        5,393,087 
Home Furnishings—.3%         
Sony Capital,         
Notes, 4.95%, 2006    1,975,000 e    2,004,882 
Manufacturing—.7%         
Bombardier:         
Notes, 6.3%, 2014    2,400,000 b,e    2,076,000 
Notes, 7.45%, 2034    4,615,000 b,e    3,807,375 
        5,883,375 
Media—1.5%         
Clear Channel Communications:         
Notes, 4.25%, 2009    1,800,000    1,727,712 
Notes, 4.5%, 2010    2,300,000    2,203,814 
Liberty Media,         
Notes, 3.5%, 2006    2,980,000    2,947,125 
Media General,         
Notes, 6.95%, 2006    685,000    707,344 
Reed Elsevier Capital,         
Bonds, 6.125%, 2006    3,910,000    3,992,313 
        11,578,308 
Oil & Gas—1.2%         
Amerada Hess,         
Notes, 7.3%, 2031    1,745,000    2,000,882 
Colorado Interstate Gas,         
Sr. Notes, 5.95%, 2015    800,000 e    777,723 
Kerr-McGee,         
Notes, 6.95%, 2024    1,822,000    1,683,371 
Pemex Project Funding Master Trust,         
Notes, 7.375%, 2014    2,960,000    3,223,440 

T h e F u n d 13

STATEMENT OF INVESTMENTS (continued)
    Principal     
Bonds and Notes (continued)    Amount a    Value ($) 
Oil & Gas (continued)         
Sempra Energy,         
Sr. Notes, 4.621%, 2007    1,365,000    1,371,549 
Transocean,         
Notes, 6.625%, 2011    455,000    499,214 
        9,556,179 
Packaging & Containers—.3%         
Sealed Air,         
Bonds, 6.875%, 2033    1,770,000 b,e    1,967,484 
Silgan Holdings,         
Sr. Sub. Notes, 6.75%, 2013    250,000    250,000 
        2,217,484 
Paper & Forest Products—1.6%         
Celulosa Arauco y Constitucion,         
Notes, 5.625%, 2015    1,900,000 e    1,910,307 
Georgia-Pacific:         
Sr. Notes, 8%, 2024    1,745,000    1,867,150 
Sr. Notes, 8.875%, 2010    1,120,000    1,248,800 
Sappi Papier,         
Notes, 6.75%, 2012    3,300,000 e    3,590,875 
Temple-Inland,         
Notes, 5.003%, 2007    3,800,000    3,836,944 
        12,454,076 
Pharmaceuticals—.7%         
Medco Health Solutions,         
Sr. Notes, 7.25%, 2013    4,725,000    5,260,224 
Pipelines—1.2%         
Plains All American Pipeline Finance:         
Sr. Notes, 5.625%, 2013    4,436,000    4,591,752 
Sr. Notes, 5.875%, 2016    4,672,000 b    4,895,457 
        9,487,209 
Property Casualty Insurance—2.0%     
Ace Capital Trust II,         
Bonds, 9.7%, 2030    2,220,000    3,006,313 
Allstate,         
Sr. Notes, 7.875%, 2005    650,000    650,000 
American International,         
Notes, 2.85%, 2005    2,110,000    2,102,586 

14
    Principal     
Bonds and Notes (continued)    Amount a    Value ($) 
Property Casualty Insurance (continued)     
Cincinnati Financial,         
Sr. Notes, 6.125%, 2034    1,840,000    1,938,791 
Infinity Property & Casualty,         
Sr. Notes, Ser. B, 5.5%, 2014    260,000    257,746 
North Front Pass-Through Trust,         
Notes, 5.81%, 2024    1,927,000 e    1,979,769 
Oil Casualty Insurance,         
Sub. Debs., 8%, 2034    4,890,000 e    5,181,400 
Prudential Financial,         
Sr. Notes, 3.75%, 2008    800,000    788,717 
        15,905,322 
Real Estate Investment Trusts—2.1%         
Archstone-Smith Operating Trust,         
Notes, 3%, 2008    1,435,000    1,376,784 
Arden Realty,         
Notes, 5.25%, 2015    1,700,000    1,674,412 
Duke Realty:         
Notes, 4.625%, 2013    1,405,000    1,368,603 
Sr. Notes, 5.25%, 2010    2,510,000    2,565,955 
EOP Operating:         
Bonds, 7.875%, 2031    1,410,000    1,736,158 
Sr. Notes, 7%, 2011    825,000    912,482 
ERP Operating,         
Notes, 4.75%, 2009    1,000,000    1,003,736 
Healthcare Realty Trust,         
Sr. Notes, 5.125%, 2014    3,800,000    3,694,995 
Mack-Cali Realty,         
Notes, 5.05%, 2010    2,300,000    2,323,596 
        16,656,721 
Residential Mortgage         
Pass-Through Ctfs.—2.6%         
Citigroup Mortgage Loan Trust,         
Ser. 2005-WF1, Cl. A5, 5.01%, 2035    2,350,000    2,351,856 
Countrywide Home Loans:         
Ser. 2002-J4, Cl. B3, 5.842%, 2032    354,894    355,280 
Ser. 2003-18, Cl. B4, 5.5%, 2033    730,962    521,257 

T h e F u n d 15

  STATEMENT OF INVESTMENTS (continued)
    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Residential Mortgage             
Pass-Through Ctfs. (continued)             
First Horizon Alternative Mortgage Securities I,         
Ser. 2004-FA1, Cl. A1, 6.25%, 2034    7,030,002        7,250,072 
JP Morgan Mortgage Trust,             
Ser. 2005-A1 Cl. 5A1, 4.484%, 2035    1,308,578    d    1,290,650 
Ocwen Residential MBS,             
Ser. 1998-R1, Cl. B1, 7%, 2040    2,575,812    e    2,704,298 
Prudential Home Mortgage Securities,             
Ser. 1994-A, Cl. 5B, 6.73%, 2024    7,556    e    7,533 
Structured Adjustable Rate Mortgage Loan Trust,         
Ser. 2005-8XS, Cl. A1, 3.12%, 2035    1,563,318    d    1,563,318 
Washington Mutual,             
Ser. 2005-AR4, Cl. A4B, 4.68%, 2035    4,525,000    d    4,498,133 
            20,542,397 
Retail—.4%             
May Department Stores:             
Notes, 3.95%, 2007    750,000        743,154 
Notes, 5.95%, 2008    1,035,000        1,073,596 
Office Depot,             
Notes, 6.25%, 2013    1,000,000        1,054,346 
            2,871,096 
Semiconductors—.2%             
Freescale Semiconductor,             
Sr. Notes, 6.875%, 2011    1,150,000        1,184,500 
State Government—1.5%             
Tobacco Settlement Financing/NJ,             
Bonds, 6.125%, 2042    11,630,000        11,711,526 
Structured Index—2.1%             
AB Svensk Exportkredit,             
GSNE-ER Indexed Notes, 0%, 2007    17,275,000    e,f    16,264,413 
Telecommunications—4.0%             
Alltel:             
Debs., 6.75%, 2005    1,500,000        1,517,448 
Notes, 4.656%, 2007    2,250,000        2,270,205 
BellSouth,             
Notes, 4.258%, 2006    3,900,000    e    3,900,000 
British Telecommunications,             
Notes, 7.875%, 2005    2,027,000        2,078,098 

16

    Principal         
Bonds and Notes (continued)    Amount a    Value ($) 
Telecommunications (continued)             
Deutsche Telekom International Finance,             
Bonds, 8.75%, 2030    4,350,000    d    5,846,487 
France Telecom:             
Notes, 7.45%, 2006    4,750,000        4,888,429 
Notes, 8%, 2011    1,770,000    d    2,042,244 
Nextel Communications,             
Sr. Notes, 5.95%, 2014    685,000        696,988 
Qwest,             
Senior Notes, 7.875%, 2011    1,965,000    e    2,004,300 
SBC Communications,             
Notes, 5.625%, 2016    1,275,000        1,323,718 
Sprint Capital:             
Notes, 8.75%, 2032    1,085,000        1,463,470 
Sr. Notes, 6.125%, 2008    3,448,000        3,626,551 
TELUS,             
Notes, 8%, 2011    320,000        370,053 
            32,027,991 
Textiles & Apparel—.0%             
Phillips-Van Heusen,             
Sr. Notes, 7.25%, 2011    250,000    b    251,250 
U.S. Government—6.3%             
U.S. Treasury Bonds,             
6.25%, 5/15/2030    2,025,000        2,521,834 
U.S. Treasury Inflation Protected Securities,         
3.375%, 1/15/2007    30,174,275    g    31,699,220 
U.S. Treasury Notes:             
1.625%, 4/30/2005    9,980,000        9,978,004 
3.375%, 9/15/2009    4,740,000        4,650,940 
4.25%, 8/15/2013    700,000        705,852 
            49,555,850 
U.S. Government Agencies/Mortgaged Backed—32.8%         
Federal Home Loan Mortgage Corp.:             
5.5%, 6/1/2034    725,158        733,990 
6%, 4/1/2014-12/1/2032    455,716        471,095 
6.5%, 4/1/2029—10/1/2032    8,228,408        8,565,743 
Multiclass Mortgage Participation Ctfs.,             
REMIC, (Interest Only Obligation):             
Ser. 2731, Cl. PY, 5%, 5/15/2026    4,367,209    h    809,692 
Ser. 2752, Cl. GM, 5%, 3/15/2026    4,000,000    h    717,923 

T h e F u n d 17

STATEMENT OF INVESTMENTS (continued)
    Principal     
Bonds and Notes (continued)    Amount a    Value ($) 
U.S. Government Agencies/Mortgaged Backed (continued)     
Federal National Mortgage Association:         
4.5%    31,825,000 i    31,457,014 
4.5%, 10/1/2018    396,504    393,281 
5%    67,200,000 i    66,765,122 
5%, 9/1/2017-5/1/2018    5,637,697    5,689,198 
5.5%, 2/1/2033-9/1/2034    24,188,835    24,443,973 
6%    31,050,000 i    31,884,313 
6%,9/1/2034    4,950,967    5,087,241 
6.5%, 6/1/2014-4/1/2033    12,323,485    12,841,234 
7%, 9/1/2014-11/1/2028    307,775    325,087 
7.5%, 7/1/2029    145,416    156,004 
REMIC Trust, Gtd. Pass-Through Ctfs.:         
Ser. 2003-33, Cl. PB, 4%, 2/25/2022    118,311    118,209 
Ser. 2004-58, Cl. L, 5%, 7/25/2034    5,831,533    5,944,547 
Government National Mortgage Association I:         
5.5%, 5/15/2033-2/15/2034    20,117,449    20,494,651 
6%    5,600,000 i    5,775,000 
6%, 4/15/2029-7/15/2034    17,786,117    18,368,055 
6.5%, 4/15/2029    281,132    294,747 
7%, 10/15/2028    145,881    154,862 
7.5%, 8/15/2029    58,282    62,635 
Ser. 2005-29, Cl. A, 4.016%, 7/16/2027    2,750,000    2,695,000 
Ser. 2005-32, Cl. B, 4.385%, 8/16/2030    4,725,000    4,714,605 
Ser. 2005-34, Cl. A, 4.32%, 6/16/2022    2,740,000    2,719,804 
Government National Mortgage Association II:         
3.375%, 4/20/2030    799,717 d    809,393 
3.5%, 7/20/2030    879,894 d    890,567 
7%, 5/20/2028-7/20/2031    347,382    367,290 
Ser. 2004-39, Cl. LC, 5.5%, 12/20/2029    5,535,000    5,742,289 
        259,492,564 
Total Bonds and Notes         
(cost $804,532,419)        800,939,887 
 
 
Preferred Stocks—2.3%    Shares    Value ($) 
 
Banking—.1%         
Sovereign Capital Trust II,         
Cum. Conv., $2.18754    22,050    983,981 

18
Preferred Stocks (continued)    Shares    Value ($) 
Health Care—2.2%         
Schering-Plough,         
Cum. Conv., $3.00    300,000    17,512,500 
Total Preferred Stocks         
(cost $16,136,219)        18,496,481 
    Face Amount     
    Covered by     
Options—.0%    Contracts ($)    Value ($) 
Call Options—.0%         
U.S. Treasury Notes, 4%, 2/15/2015         
May 2005 @ 96.9375    16,660,000    261,284 
Put Options—.0%         
U.S. Treasury Notes, 4%, 2/15/2015         
June 2005 @ 95.328125    8,675,000    9,109 
Total Options         
(cost $296,895)        270,393 
 
Other Investments—7.0%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Preferred Plus Money Market Fund     
(cost $55,300,000)    55,300,000 j    55,300,000 
    Principal     
Short-Term Investments—11.4%    Amount a    Value ($) 
U.S. Government Agencies—2.9%         
Federal National Mortgage Association:         
2.9%, 6/13/2005    200,000,000    19,933,966 
3.074%, 5/27/2005    2,740,000    2,734,578 
        22,668,544 
U.S. Treasury Bills—8.5%         
2.58%, 5/12/2005    23,228,000    23,211,276 
2.33%, 5/26/2005    43,400,000    43,318,408 
2.68%, 6/16/2005    600,000 k    598,014 
        67,127,698 
Total Short Term Investments         
(cost $89,795,675)        89,796,242 

T h e F u n d 19

STATEMENT OF INVESTMENTS (continued)
Investment of Cash Collateral         
for Securities Loaned—2.3%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Cash Advantage Fund         
(cost $18,492,563)    18,492,563 j    18,492,563 
Total Investments (cost $984,553,771)    124.2%    983,295,566 
Liabilities, Less Cash and Receivables    (24.2%)    (191,670,031) 
Net Assets    100.0%    791,625,535 

a Principal amount stated in U.S. Dollars unless otherwise noted. 
AUD—Australian Dollar 
EUR—Euro 
b All or a portion of these securities are on loan. At April 30, 2005, the total market value of the fund’s securities on 
loan is $17,535,496 and the total market value of the collateral held by the fund is $18,634,313, consisting of 
cash collateral of $18,492,563 and U.S. Government and agency securities valued at $141,750. 
c Non-income producing—security in default. 
d Variable rate security—interest rate subject to periodic change. 
e 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, 2005, these securities 
amounted to $82,410,115 or 10.4% of net assets. 
f Security linked to Goldman Sachs Non-Energy—Excess Return Index. 
g Principal amount for accrual purposes is periodically adjusted based on changes in the Consumer Price Index. 
h Notional face amount shown. 
i Purchased on a forward commitment basis. 
j Investments in affiliated money market mutual funds. 
k Held by a broker as collateral for open financial futures positions. 

Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
U.S. Government & Agencies    39.1    Preferred Stocks    2.3 
Corporate Bonds    31.1    Structured Index    2.1 
Short Term/        State Government    1.5 
Money Market Investments    20.7    Futures/Options/Forward Currency 
Asset/Mortgage Backed    19.5    Exchange Contracts/Swaps    .3 
Foreign/Governmental    7.9        124.5 
 
† Based on net assets.             
See notes to financial statements.             

20

STATEMENT OF FINANCIAL FUTURES

April 30, 2005 (Unaudited)

                Unrealized 
        Market Value        Appreciation 
        Covered by        (Depreciation) 
    Contracts    Contracts ($)    Expiration    at 4/30/2005 ($) 
Financial Futures Long                 
U.S. Treasury 2 Year Notes    93    19,316,391    June 2005    (11,625) 
U.S. Treasury 5 Year Notes    383    41,537,547    June 2005    484,734 
Financial Futures Short                 
U.S. Treasury 30 Year Bonds    100    11,484,375    June 2005    (174,375) 
                298,734 

See notes to financial statements.

STATEMENT OF OPTIONS WRITTEN

April 30, 2005 (Unaudited)

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

Call Options;         
U.S. Treasury Notes, 4%, 2/15/2015         
May 2005 @ 98.484375    33,320,000    216,796 
Put Options;         
U.S. Treasury Notes, 4%, 2/15/2015         
June 2005 @ 93.53125    17,350,000    2,429 
(Premiums received $296,895)        219,225 

See notes to financial statements.

The Fund 21

STATEMENT OF ASSETS AND LIABILITIES

April 30, 2005 (Unaudited)

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments (including     
securities on loan, valued at $17,535,496)—Note 1(c):     
Unaffiliated issuers    910,761,208    909,503,003 
Affiliated issuers    73,792,563    73,792,563 
Cash denominated in foreign currencies    224,976    216,499 
Receivable for investment securities sold        33,199,692 
Dividends and interest receivable        7,420,424 
Unrealized appreciation on forward         
currency exchange contracts—Note 4        1,508,227 
Receivable for shares of Beneficial Interest subscribed    540,042 
Receivable from broker from swap transactions—Note 4    404,010 
Unrealized appreciation on swap contracts—Note 4    34,737 
Prepaid expenses        36,936 
        1,026,656,133 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(c)    564,039 
Cash overdraft due to Custodian        117,968 
Payable for investment securities purchased    213,729,127 
Liability for securities on loan—Note 1(c)        18,492,563 
Payable for shares of Beneficial Interest redeemed    1,129,086 
Unrealized depreciation on swap contracts—Note 4    344,006 
Outstanding options written, at value (premiums     
received $296,895)—See Statement of Options Written    219,225 
Payable for futures variation margin—Note 4    100,250 
Accrued expenses        334,334 
        235,030,598 
Net Assets ($)        791,625,535 
Composition of Net Assets ($):         
Paid-in capital        797,288,073 

Accumulated distributions in excess of investment income—net        (4,945,996) 
Accumulated net realized gain (loss) on investments        (952,851) 
Accumulated net unrealized appreciation (depreciation) on investments,     
foreign currency transactions, options transactions and swap transactions     
(including $298,734 net unrealized appreciation on financial futures)    236,309 
Net Assets ($)                791,625,535 
 
 
Net Asset Value Per Share                 
    Class A    Class B    Class C    Class R 
Net Assets ($)    469,434,522    239,213,492    63,524,153    19,453,368 
Shares Outstanding    32,153,972    16,359,112    4,358,929    1,333,308 
Net Asset Value Per Share ($)    14.60    14.62    14.57    14.59 

See notes to financial statements 
22 

STATEMENT OF OPERATIONS
Six Months Ended April 30, 2005 (Unaudited)
Investment Income ($):     
Income:     
Interest    16,962,381 
Dividends:     
Unaffiliated issuers    557,217 
Affiliated issuers    605,536 
Income from securities lending    44,191 
Total Income    18,169,325 
Expenses:     
Management fee—Note 3(a)    2,470,857 
Shareholder servicing costs—Note 3(c)    1,700,436 
Distribution fees—Note 3(b)    877,938 
Custodian fees—Note 3(c)    114,656 
Trustees’ fees and expenses—Note 3(d)    53,166 
Prospectus and shareholders’ reports    30,852 
Professional fees    28,726 
Registration fees    27,709 
Interest expense—Note 2    17,688 
Miscellaneous    21,620 
Total Expenses    5,343,648 
Less—reduction in management fee due to     
undertaking—Note 3(a)    (765,844) 
Net Expenses    4,577,804 
Investment Income—Net    13,591,521 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    15,739,901 
Net realized gain (loss) on options transactions    (16,790) 
Net realized gain (loss) on financial futures    2,068,716 
Net realized gain (loss) on swap transactions    (3,526,027) 
Net realized gain (loss) on forward currency exchange contracts    (5,962,772) 
Net Realized Gain (Loss)    8,303,028 
Net unrealized appreciation (depreciation) on investments, foreign     
currency transactions, options transactions and swap transactions     
(including $325,718 net unrealized appreciation on financial futures)    (8,519,433) 
Net Realized and Unrealized Gain (Loss) on Investments    (216,405) 
Net Increase in Net Assets Resulting from Operations    13,375,116 
 
See notes to financial statements.     

The Fund 23

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    April 30, 2005    Year Ended 
    (Unaudited)    October 31, 2004 
Operations ($):         
Investment income—net    13,591,521    33,476,055 
Net realized gain (loss) on investments    8,303,028    (4,792,268) 
Net unrealized appreciation         
(depreciation) on investments    (8,519,433)    (1,314,683) 
Net Increase (Decrease) in Net Assets     
Resulting from Operations    13,375,116    27,369,104 
Dividends to Shareholders from ($):         
Investment income—net:         
Class A shares    (9,970,885)    (24,687,274) 
Class B shares    (4,501,920)    (10,213,054) 
Class C shares    (1,136,558)    (2,765,823) 
Class R shares    (419,102)    (766,349) 
Net realized gain on investments:         
Class A shares    —    (1,952,180) 
Class B shares    —    (858,904) 
Class C shares    —    (257,231) 
Class R shares    —    (30,674) 
Total Dividends    (16,028,465)    (41,531,489) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Class A shares    39,125,058    121,234,367 
Class B shares    2,410,165    10,346,136 
Class C shares    2,423,830    10,400,101 
Class R shares    2,109,466    4,245,147 
Net assets received in connection with         
reorganization—Note 1:         
Class A shares    —    10,380,708 
Class B shares    —    13,630,135 
Class C shares    —    7,228,640 
Class R shares    —    19,095,717 

24
    Six Months Ended     
    April 30, 2005    Year Ended 
    (Unaudited)    October 31, 2004 
Beneficial Interest Transactions ($) (continued):     
Dividends reinvested:         
Class A shares    7,883,166    19,957,268 
Class B shares    2,968,393    7,293,148 
Class C shares    667,524    1,697,654 
Class R shares    384,519    725,412 
Cost of shares redeemed:         
Class A shares    (95,519,207)    (359,978,463) 
Class B shares    (29,430,119)    (78,395,199) 
Class C shares    (12,888,206)    (38,127,436) 
Class R shares    (2,184,832)    (16,045,119) 
Increase (Decrease) in Net Assets         
from Beneficial Interest Transactions    (82,050,243)    (266,311,784) 
Total Increase (Decrease) in Net Assets    (84,703,592)    (280,474,169) 
Net Assets ($):         
Beginning of Period    876,329,127    1,156,803,296 
End of Period    791,625,535    876,329,127 
Distributions in excess of investment income—net    (4,945,996)    (2,509,052) 

The Fund 25

STATEMENT OF CHANGES IN NET ASSETS (continued)
    Six Months Ended     
    April 30, 2005    Year Ended 
    (Unaudited)    October 31, 2004 
Capital Share Transactions:         
Class A a         
Shares sold    2,671,440    8,267,387 
Shares issued in connection with         
reorganization—Note 1    —    719,661 
Shares issued for dividends reinvested    538,138    1,363,379 
Shares redeemed    (6,511,935)    (24,497,425) 
Net Increase (Decrease) in Shares Outstanding    (3,302,357)    (14,146,998) 
Class B a         
Shares sold    164,108    699,439 
Shares issued in connection with         
reorganization—Note 1    —    943,434 
Shares issued for dividends reinvested    202,323    497,671 
Shares redeemed    (2,007,290)    (5,369,591) 
Net Increase (Decrease) in Shares Outstanding    (1,640,859)    (3,229,047) 
Class C         
Shares sold    165,658    708,342 
Shares issued in connection with         
reorganization—Note 1    —    501,789 
Shares issued for dividends reinvested    45,646    116,260 
Shares redeemed    (881,166)    (2,617,706) 
Net Increase (Decrease) in Shares Outstanding    (669,862)    (1,291,315) 
Class R         
Shares sold    144.038    289,583 
Shares issued in connection with         
reorganization—Note 1    —    1,324,732 
Shares issued for dividends reinvested    26,270    49,874 
Shares redeemed    (149,631)    (1,110,177) 
Net Increase (Decrease) in Shares Outstanding    20,677    554,012 

a During the period ended April 30, 2005, 113,207 Class B shares representing $1,658,436 were automatically converted to 113,385 Class A shares and during the period ended October 31, 2004, 178,764 Class B shares representing $2,607,269 were automatically converted to 179,069 Class A shares.

See notes to financial statements.

26
FINANCIAL HIGHLIGHTS

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

Six Months Ended                     
April 30, 2005        Year Ended October 31,     
Class A Shares    (Unaudited)    2004 a    2003    2002 b    2001    2000 
Per Share Data ($):                         
Net asset value,                         
beginning of period    14.65    14.84    14.02    14.75    14.26    14.31 
Investment Operations:                         
Investment income—net    .25c    .51c    .58c    .76c    .97    .94 
Net realized and unrealized                         
gain (loss) on investments    .00d    (.07)    .82    (.61)    .49    (.02) 
Total from                         
Investment Operations    .25    .44    1.40    .15    1.46    .92 
Distributions:                         
Dividends from                         
investment income—net    (.30)    (.59)    (.58)    (.79)    (.97)    (.97) 
Dividends from net realized                         
gain on investments    —    (.04)    —    (.09)    —    — 
Total Distributions    (.30)    (.63)    (.58)    (.88)    (.97)    (.97) 
Net asset value,                         
end of period    14.60    14.65    14.84    14.02    14.75    14.26 
Total Return (%) e    1.70f    3.04    10.12    1.05    10.42    6.65 

The Fund 27

FINANCIAL HIGHLIGHTS (continued)
    Six Months Ended                     
    April 30, 2005        Year Ended October 31,     
Class A Shares    (Unaudited)    2004 a    2003    2002 b    2001    2000 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    1.10g    1.10    1.10    1.08    .99    1.01 
Ratio of net expenses                         
to average net assets    .91g    1.09    1.10    1.08    .99    1.01 
Ratio of net investment income                     
to average net assets    3.50g    3.50    3.93    5.32    6.56    6.60 
Portfolio Turnover Rate    235.59f,h    736.80h    823.47    617.61    516.45    576.17 

Net Assets, end of period

($ x 1,000) 469,435 519,446 736,291 1,009,786 926,023 386,547

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 these changes for 
    the fiscal year 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 these changes in presentation. 
b    As required, effective November 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting 
    Guide for Investment Companies and began accreting discount or amortizing premium on fixed income securities on a 
    scientific basis and including paydown gains and losses in interest income.The effect of these changes for the period 
    ended October 31, 2002 was to decrease net investment income per share by $.02, increase net realized and 
    unrealized gain (loss) on investments per share by $.02 and decrease the ratio of net investment income to average net 
    assets from 5.49% to 5.32%. Per share data and ratios/supplemental data for periods prior to November 1, 2001 
    have not been restated to reflect these changes in presentation. 
c    Based on average shares outstanding at each month end. 
d    Amount represents less than $.01 per share. 
e    Exclusive of sales charge. 
f    Not annualized. 
g    Annualized. 
h    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2005 and 
    October 31, 2004, were 215.72% and 705.69%, respectively. 
See notes to financial statements. 

28
Six Months Ended                     
April 30, 2005        Year Ended October 31,     
Class B Shares    (Unaudited)    2004 a    2003    2002 b    2001    2000 c 
Per Share Data ($):                         
Net asset value,                         
beginning of period    14.67    14.87    14.04    14.77    14.28    14.14 
Investment Operations:                         
Investment income—net    .22d    .44d    .50d    .69d    .89    .57 
Net realized and unrealized                         
gain (loss) on investments    (.01)    (.08)    .85    (.61)    .49    .14 
Total from Investment Operations    .21    .36    1.35    .08    1.38    .71 
Distributions:                         
Dividends from                         
investment income—net    (.26)    (.52)    (.52)    (.72)    (.89)    (.57) 
Dividends from net realized                         
gain on investments    —    (.04)    —    (.09)    —    — 
Total Distributions    (.26)    (.56)    (.52)    (.81)    (.89)    (.57) 
Net asset value, end of period    14.62    14.67    14.87    14.04    14.77    14.28 
Total Return (%) e    1.45f    2.50    9.72    .60    9.80    7.55g 

The Fund 29

FINANCIAL HIGHLIGHTS (continued)
    Six Months Ended                     
    April 30, 2005        Year Ended October 31,     
Class B Shares    (Unaudited)    2004 a    2003    2002 b    2001    2000 c 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    1.59g    1.57    1.53    1.52    1.55    1.50g 
Ratio of net expenses                         
to average net assets    1.40g    1.55    1.53    1.52    1.55    1.50g 
Ratio of net investment income                     
to average net assets    3.01g    3.04    3.43    4.80    5.84    5.61g 
Portfolio Turnover Rate    235.59f,h 736.80h    823.47    617.61    516.45    576.17 

Net Assets, end of period

($ x 1,000) 239,213 264,124 315,616 309,167 207,482 9,842

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 these changes for 
    the fiscal year 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 these changes in presentation. 
b    As required, effective November 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting 
    Guide for Investment Companies and began accreting discount or amortizing premium on fixed income securities on a 
    scientific basis and including paydown gains and losses in interest income.The effect of these changes for the period 
    ended October 31, 2002 was to decrease net investment income per share by $.02, increase net realized and 
    unrealized gain (loss) on investments per share by $.02 and decrease the ratio of net investment income to average net 
    assets from 4.97% to 4.80%. Per share data and ratios/supplemental data for periods prior to November 1, 2001 
    have not been restated to reflect these changes in presentation. 
c    From March 1, 2000 (commencement of initial offering) to October 31, 2000. 
d    Based on average shares outstanding at each month end. 
e    Exclusive of sales charge. 
f    Not annualized. 
g    Annualized. 
h    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2005 and 
    October 31, 2004, were 215.72% and 705.69%, respectively. 
See notes to financial statements. 

30
Six Months Ended                     
April 30, 2005        Year Ended October 31,     
Class C Shares    (Unaudited)    2004 a    2003    2002 b    2001    2000 c 
Per Share Data ($):                         
Net asset value,                         
beginning of period    14.62    14.82    13.99    14.72    14.23    14.14 
Investment Operations:                         
Investment income—net    .20d    .41d    .47d    .66d    .85    .54 
Net realized and unrealized                         
gain (loss) on investments    (.01)    (.09)    .84    (.61)    .49    .09 
Total from Investment Operations    .19    .32    1.31    .05    1.34    .63 
Distributions:                         
Dividends from                         
investment income—net    (.24)    (.48)    (.48)    (.69)    (.85)    (.54) 
Dividends from net realized                         
gain on investments    —    (.04)    —    (.09)    —    — 
Total Distributions    (.24)    (.52)    (.48)    (.78)    (.85)    (.54) 
Net asset value, end of period    14.57    14.62    14.82    13.99    14.72    14.23 
Total Return (%) e    1.32f    2.24    9.47    .35    9.54    6.73g 

The Fund 31

FINANCIAL HIGHLIGHTS (continued)
    Six Months Ended                     
    April 30, 2005        Year Ended October 31,     
Class C Shares    (Unaudited)    2004 a    2003    2002 b    2001    2000 c 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    1.83g    1.82    1.78    1.77    1.77    1.69g 
Ratio of net expenses                         
to average net assets    1.65g    1.80    1.78    1.77    1.77    1.69g 
Ratio of net investment income                     
to average net assets    2.77g    2.80    3.22    4.59    5.58    5.11g 
Portfolio Turnover Rate    235.59f,h 736.80h    823.47    617.61    516.45    576.17 
Net Assets, end of period                         
($ x 1,000)    63,524    73,541    93,638    102,377    85,819    3,829 

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 these changes for 
    the fiscal year 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 these changes in presentation. 
b    As required, effective November 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting 
    Guide for Investment Companies and began accreting discount or amortizing premium on fixed income securities on a 
    scientific basis and including paydown gains and losses in interest income.The effect of these changes for the period 
    ended October 31, 2002 was to decrease net investment income per share by $.02, increase net realized and 
    unrealized gain (loss) on investments per share by $.02 and decrease the ratio of net investment income to average net 
    assets from 4.76% to 4.59%. Per share data and ratios/supplemental data for periods prior to November 1, 2001 
    have not been restated to reflect these changes in presentation. 
c    From March 1, 2000 (commencement of initial offering) to October 31, 2000. 
d    Based on average shares outstanding at each month end. 
e    Exclusive of sales charge. 
f    Not annualized. 
g    Annualized. 
h    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2005 and 
    October 31, 2004, were 215.72% and 705.69%, respectively. 
See notes to financial statements. 

32
Six Months Ended                     
April 30, 2005        Year Ended October 31,     
Class R Shares    (Unaudited)    2004 a    2003    2002 b    2001    2000 c 
Per Share Data ($):                         
Net asset value,                         
beginning of period    14.64    14.84    14.02    14.75    14.26    14.14 
Investment Operations:                         
Investment income—net    .27d    .56d    .62d    .81d    1.01    .62 
Net realized and unrealized                         
gain (loss) on investments    (.00)e    (.08)    .84    (.60)    .48    .13 
Total from Investment Operations    .27    .48    1.46    .21    1.49    .75 
Distributions:                         
Dividends from                         
investment income—net    (.32)    (.64)    (.64)    (.85)    (1.00)    (.63) 
Dividends from net realized                         
gain on investments    —    (.04)    —    (.09)    —    — 
Total Distributions    (.32)    (.68)    (.64)    (.94)    (1.00)    (.63) 
Net asset value, end of period    14.59    14.64    14.84    14.02    14.75    14.26 
Total Return (%)    1.83f    3.38    10.58    1.49    10.67    8.03g 

The Fund 33

FINANCIAL HIGHLIGHTS (continued)
    Six Months Ended                     
    April 30, 2005        Year Ended October 31,     
Class R Shares    (Unaudited)    2004 a    2003    2002 b    2001    2000 c 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets    .71g    .70    .68    .65    .73    2.85g 
Ratio of net expenses                         
to average net assets    .65g    .69    .68    .65    .73    2.85g 
Ratio of net investment income                     
to average net assets    3.74g    4.02    4.18    5.69    6.79    6.45g 
Portfolio Turnover Rate    235.59f,h 736.80h    823.47    617.61    516.45    576.17 
Net Assets, end of period                         
($ x 1,000)    19,453    19,219    11,259    7,970    5,854    1 

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 these changes for 
    the fiscal year 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 these changes in presentation. 
b    As required, effective November 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting 
    Guide for Investment Companies and began accreting discount or amortizing premium on fixed income securities on a 
    scientific basis and including paydown gains and losses in interest income.The effect of these changes for the period 
    ended October 31, 2002 was to decrease net investment income per share by $.02, increase net realized and 
    unrealized gain (loss) on investments per share by $.02 and decrease the ratio of net investment income to average net 
    assets from 5.86% to 5.69%. Per share data and ratios/supplemental data for periods prior to November 1, 2001 
    have not been restated to reflect these changes in presentation. 
c    From March 1, 2000 (commencement of initial offering) to October 31, 2000. 
d    Based on average shares outstanding at each month end. 
e    Amount represents less than $.01 per share. 
f    Not annualized. 
g    Annualized. 
h    The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended April 30, 2005 and 
    October 31, 2004, were 215.72% and 705.69%, respectively. 
See notes to financial statements. 

34

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus Premier Core Bond Fund (the “fund”) is a separate diversified series of Dreyfus Premier Fixed Income Funds (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering two series, including 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”).

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 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. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. 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.

On April 30, 2004, pursuant to an Agreement and Plan of Reorganization previously approved by the fund’s Board of Trustees, all of the assets, subject to the liabilities, of the Income Portfolio of the Bear Stearns Funds, were transferred to the fund in exchange for shares of Beneficial Interest of the fund of equal value. Shareholders of Class A, Class B, Class C and Class Y shares of the Income Portfolio received

The Fund 35

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Class A, Class B, Class C and Class R shares, respectively, of the fund, in each case, in an amount equal to the aggregate net asset value of their respective investment in the Income Portfolio at the time of the exchange.The fund’s net asset value on April 30, 2004 was $14.43 per share for Class A shares, $14.45 per share for Class B shares, $14.40 per share for Class C shares and $14.42 per share for Class R shares and a total of 719,661 Class A shares, 943,434 Class B shares, 501,789 Class C shares and 1,324,732 Class R shares, representing net assets of $10,380,708 Class A shares, $13,630,135 Class B shares, $7,228,640 Class C shares and $19,095,717 Class R shares (including $36,654 net unrealized depreciation on investments), were issued to the shareholders of the Income Portfolio in the exchange.The exchange was a tax free event to shareholders.

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

36

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. Securities for which there are no such valuations are valued at fair value as determined in good faith under the direction of the Board of Trustees. Restricted securities, as well as securities or other assets for which recent market quotations are not readily available, that are not valued by a pricing service approved by the Board of Trustees, or are determined by the fund not to reflect accurately fair value (such as when an event occurs after the close of the exchange on which the security is principally traded and that is determined by the fund to have changed the value of the security), 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. Investments in registered investment companies 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. Swap transactions are valued daily based upon future cash flows and other factors, such as interest rates and underlying securities. 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 Fund 37

NOTES TO FINANCIAL STATEMENTS (Unaudited) (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, if any, 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.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 will be maintained at all times. Cash

38

collateral is invested in certain money market mutual funds managed by the Manager. The fund will be 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 would bear 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 fund has an unused capital loss carryover of $7,920,146 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2004.The amount of this loss which can be utilized in subsequent years is subject to an annual limitation due to the fund’s merger with Bear Stearns Income Portfolio. If not applied $1,791,693 of the carryover expires in fiscal 2010, $64,381 expires in fiscal 2011 and $6,064,072 expires in fiscal 2012.

The Fund 39

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2004 was as follows: ordinary income $41,531,489. 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 borrowings.

The average daily amount of borrowings outstanding under the leveraging arrangement during the period ended April 30, 2005 was approximately $1,386,700, with a related weighted average annualized interest rate of 2.57% .

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 1% of the value of the fund’s average daily net assets and is payable monthly.The Manager has undertaken, from October 1, 2004 through September 30, 2005, that, if the fund’s aggregate expenses, exclusive of taxes, brokerage fees, Rule 12b-1 distribution plan fees, interest expense, shareholder services plan fees and extraordinary expenses, exceed an annual rate of .65% 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 $765,844 during the period ended April 30, 2005.

During the period ended April 30, 2005, the Distributor retained $15,983 from commissions earned on sales of the fund’s Class A shares and $413,278 and $4,581 from contingent deferred sales charges on redemptions of the fund’s Class B and Class C shares, respectively.

40

(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 1% of the value of the average daily net assets of Class B shares and .75 of 1% of the value of the average daily net assets of Class C shares. During the period ended April 30, 2005, Class B and Class C shares were charged $624,374 and $253,564, 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 1% 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, 2005, Class A, Class B and Class C shares were charged $608,708, $312,187 and $84,521, respectively, pursuant to the Shareholder Services Plan.

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended April 30, 2005, the fund was charged $305,164 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, 2005, the fund was charged $114,656 pursuant to the custody agreement.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $390,467, Rule 12b-1 distribution plan fees $138,005, shareholder services plan fees $158,702, custodian fees $33,729 and transfer agency

The Fund 41

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

per account fees $107,382, which are offset against an expense reimbursement currently in effect in the amount of $264,246.

(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 Securities and Exchange Commission, 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, 2005, amounted to $1,873,026,414 and $1,935,130,075, respectively, of which $157,940,899 in purchases and $158,256,989 in sales were from dollar roll transactions.

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

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

42

of Trade on which the contract is traded and is subject to change. Contracts open at April 30, 2005, are set forth in the Statement of Financial Futures.

The following summarizes the fund’s call/put options written for the 
period ended April    30, 2005:         
    Face Amount        Options Terminated 
    Covered by    Premiums    Net Realized 
Options Written:    Contracts ($)    Received ($)    Cost ($) Gain ($) 
Contracts outstanding             
October 31, 2004    —    —     
Contracts written    50,550,000    296,895     
Contracts outstanding         
April 30, 2005    50,550,000    296,895     

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 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 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

The Fund 43

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 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, 2005:

    Foreign             
Forward Currency    Currency            Unrealized 
Exchange Contracts    Amounts    Cost ($)    Value ($)    Appreciation ($) 
Purchases;                 
Brazilian Real,                 
expiring 8/15/2005    13,720,000    4,915,801    5,040,783    124,982 
        Proceeds ($)         
Sales:                 
Australian Dollar,                 
expiring 6/15/2005    19,940,000    15,641,135    15,515,314    125,821 
Euro, expiring                 
6/15/2005    20,600,000    27,786,104    26,528,680    1,257,424 
Total                1,508,227 

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.

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. The fund accrues for the interim payments on swap contracts on a daily basis, with the net amount recorded within unrealized appreciation

44

(depreciation) of 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 swaps contracts in the Statement of Operations. Prior to November 1, 2003, these interim payments were reflected within interest income 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 or receive 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 credits protection on the underlying instrument. The maximum payouts for these contracts are limited to the notional amount of each swap.The following summarizes credit default swaps entered into by the fund at April 30, 2005:

        Unrealized 
        Appreciation 
Notional Amount ($)    Description    (Depreciation) ($) 
3,950,000    Agreement with Morgan Stanley terminating    (14,142) 
March 20, 2006 to receive a fixed rate of
1.625% and pay the notional amount as a
result of interest payment default totaling
$1,000,000 or principal payment default of
    $10,000,000 on Republic of Argentina,     
    3.01%, 8/3/2012     
2,798,000    Agreement with Bear Stearns terminating    6,767 
    June 20, 2010 to receive a fixed rate of     
.33% and pay the notional amount as a result of     
interest payment default totaling $1,000,000
or principal payment default of $10,000,000
on Berkshire Hathaway, 4.125%, 1/15/2010
2,004,000    Agreement with UBS terminating    (17,307) 
    March 20, 2008 to pay a fixed rate of     
3.92% and receive the notional amount as a
result of interest payment default totaling
$1,000,000 or principal payment default of
$10,000,000 on Bombardier, 6.75%, 5/1/2012     

The Fund 45

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

        Unrealized 
        Appreciation 
Notional Amount ($)    Description    (Depreciation) ($) 
4,121,000    Agreement with Bear Stearns terminating    (912) 
February 20, 2006 to pay a fixed rate of
.60% and receive the notional amount as a
result of interest payment default totaling
$1,000,000 or principal payment default of
    $10,000,000 on Republic of Columbia,     
    10.375%, 1/28/2033     
4,121,000    Agreement with Bear Stearns terminating    (57,634) 
February 20, 2008 to receive a fixed rate of
2.07% and pay the notional amount as a
result of interest payment default totaling
$1,000,000 or principal payment default of
    $10,000,000 on Republic of Columbia,     
    10.375%, 1/28/2033     
3,927,000    Agreement with Citigroup terminating    (45,297) 
    June 20, 2008 to receive a fixed rate of     
    4% and pay the notional amount as a     
result of interest payment default totaling
$1,000,000 or principal payment default of
$10,000,000 on Ford Motor, 7%, 10/1/2013
2,700,000    Agreement with Citigroup terminating    24,728 
June 20, 2010 to pay a fixed rate of 4.5%
and receive the notional amount as a result of
interest payment default totaling $1,000,000
or principal payment default of $10,000,000
    on Ford motor, 7%, 10/1/2013     
3,908,000    Agreement with Bear Stearns terminating    (23,042) 
June 20, 2006 to receive a fixed rate of 2.9%
and pay the notional amount as a result of
interest payment default totaling $1,000,000
or principal payment default of $10,000,000
    on GMAC, 6.875%, 8/28/2012     
6,204,000    Agreement with Bear Stearns terminating    3,242 
March 20, 2015 to pay a fixed rate of .155%
and receive the notional amount as a result of
interest payment default totaling $1,000,000
or principal payment default of $10,000,000
on HSBC Bank, Variable Rate, 4/12/2006
1,865,000    Agreement with JP Morgan terminating    (3,666) 
June 20, 2010 to pay a fixed rate of .30%
and receive the notional amount as a result of
interest payment default totaling $1,000,000
or principal payment default of $10,000,000
    on St. Paul Cos., 6.38%, 12/15/2008     
2,798,000    Agreement with Bear Stearns terminating    (5,500) 
June 20, 2010 to pay a fixed rate of .37%
and receive the notional amount as a result of
interest payment default totaling $1,000,000
or principal payment default of $10,000,000
    on St. Paul Cos., 6.38%, 12/15/2008     

46
        Unrealized 
        Appreciation 
Notional Amount ($)    Description    (Depreciation) ($) 
4,010,000    Agreement with Bear Stearns terminating    (11,178) 
March 20, 2010 to receive a fixed rate of
    .35% and pay the notional amount as a     
result of interest payment default totaling
$1,000,000 or principal payment default of
$10,000,000 on Tyco, 6%, 11/15/2013
7,208,000    Agreement with UBS terminating    (100,606) 
March 20, 2015 to receive a fixed rate of .53%     
and pay the notional amount as a result of
interest payment default totaling $1,000,000
or principal payment default of $10,000,000
    on Washington Mutual, 4%, 1/15/2009     
5,200,000    Agreement with Citigroup terminating    (64,722) 
March 20, 2015 to receive a fixed rate of .53%     
and pay the notional amount as a result of
interest payment default totaling $1,000,000
or principal payment default of $10,000,000
    on Washington Mutual, 4%, 1/15/2009     
Total        (309,269) 

Total return swaps involve commitments to pay interest in exchange for a market-linked return based on a notional amount.To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty, respectively.The following summarizes total return swaps entered into by the fund at April 30, 2005:

        Unrealized 
Notional Amount ($)    Description    Appreciation ($) 
 
37,500,000    Agreement with Citigroup terminating    — 
June 1, 2005 to pay a floating rate on the
1 month Libor minus .15% and to receive
if positive (pay if negative) the notional
amount as a result of the monthly total
return on the Lehman CMBS ERISA Index

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.

The Fund 47

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

At April 30, 2005, accumulated net unrealized depreciation on investments was $1,258,205, consisting of $7,619,490 gross unrealized appreciation and $8,877,695 gross unrealized depreciation.

At April 30, 2005, 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—Legal Matters:

In early 2004, two purported class and derivative actions were filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC, and certain directors of the Dreyfus Funds and the Dreyfus Founders Funds (together, the “Funds”) in the United States District Court for the Western District of Pennsylvania. In September 2004, plaintiffs served a Consolidated Amended Complaint (the “Amended Complaint”) on behalf of a purported class of all persons who acquired interests in any of the Funds between January 30, 1999 and November 17, 2003, and derivatively on behalf of the Funds.The Amended Complaint in the newly styled In re Dreyfus Mutual Funds Fee Litigation also named the Distributor, Premier Mutual Fund Services, Inc. and two additional Fund directors as defendants and alleges violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Pennsylvania Unfair Trade Practices and Consumer Protection Law and common-law claims. Plaintiffs seek to recover allegedly improper and excessive Rule 12b-1 and advisory fees allegedly charged to the Funds for marketing and distribution services. More specifically, plaintiffs claim, among other things, that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend the Funds over other funds, and that such payments were not disclosed to investors. In addition, plaintiffs assert that economies of scale and soft-dollar benefits were not passed on to the Funds. Plaintiffs further allege that 12b-1 fees were improperly charged to certain of the Funds that were closed to new investors.The

48

Amended Complaint seeks compensatory and punitive damages, rescission of the advisory contracts, and an accounting and restitution of any unlawful fees, as well as an award of attorneys’ fees and litigation expenses. As noted, some of the claims in this litigation are asserted derivatively on behalf of the Funds that have been named as nominal defendants.With respect to such derivative claims, no relief is sought against the Funds. Dreyfus believes the allegations to be totally without merit and intends to defend the action vigorously. Defendants filed motions to dismiss the Amended Complaint on November 12, 2004, and those motions are pending.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Funds believe that any of the pending actions will have a material adverse effect on the Funds or Dreyfus’ ability to perform its contract with the Funds.

The Fund 49

INFORMATION ABOUT THE REVIEW AND APPROVAL OF THE FUND’S MANAGEMENT AGREEMENT (Unaudited)

At a meeting of the Board of Trustees held on November 10, 2004, the Board considered the re-approval of the fund’s Management Agreement for the remainder of its effective term (through September 11,2005),pur-suant to which the Manager provides the fund with investment advisory and administrative services.The Board members who are not “interested persons”(as defined in the Act (the “Independent Directors”)) of the fund were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.

Analysis of Nature, Quality and Extent of Services Provided to the Fund.The Board members received a presentation from representatives of the Manager regarding services provided to the fund and other funds in the Dreyfus complex, and discussed the nature, quality and extent of the services provided to the fund pursuant to its Management Agreement. The presentation included a detailed summary of the services provided to Dreyfus-managed mutual funds by each business unit within Dreyfus. The Manager’s representatives reviewed the fund’s distribution of accounts and the relationships the Manager has with various intermediaries and the different needs of each.The Manager’s representatives noted the diversity of distribution of the fund as well as among the funds in the Dreyfus complex, and the Manager’s corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each of the fund’s distribution channels.The Board also reviewed the number of shareholder accounts in the fund, as well as the fund’s asset size.

The Board members also considered the Manager’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Board members also considered the Manager’s extensive administrative, accounting and compliance infrastructure.

Comparative Analysis of the Fund’s Performance, Management Fee and Expense Ratio. The Board members reviewed the fund’s performance, management fee and expense ratios and placed significant emphasis on comparisons to a group of comparable funds and Lipper averages. The

50

Board reviewed the fund’s performance, management fee, and total expense ratio within this comparison group and against the fund’s Lipper category average, and discussed the results of the comparisons.The group of comparable funds was previously approved by the Board for this purpose, and was prepared using a Board-approved selection methodology that was based, in part, on selecting non-affiliated funds reported in the same Lipper category as the fund. The Board members noted that the fund’s income performance was higher than the fund’s comparison group and Lipper category average, but that its total return performance was lower than the fund’s comparison group and Lipper category averages. Over the past year, the Board had expressed its concern to the Manager over the fund’s volatile performance history. In responding to those concerns, representatives of the Manager informed the Board at the meeting that they were in the process of reviewing alternatives for a new primary portfolio manager for the fund and would make a recommendation to the Board in that regard when its review was complete.The Board members also discussed the fund’s management fee and expense ratio, noting that the fund’s expense ratio was similar to the comparison group average and lower than the Lipper category average.They reviewed the range of management fees in the comparison group, and noted the Manager’s current voluntary undertaking to reduce the fund’s expense ratio for a one-year period brought the fund’s expense ratio closer to the fund’s comparison group average and below the fund’s Lipper category average.

The Board members also reviewed the fees paid to the Manager or its affiliates by mutual funds managed by the Manager or its affiliates (the “Similar Funds”).These comparison groups compared the management fee and total expense ratios of the Similar Funds and were composed exclusively of investment companies affiliated with the Manager that were reported in the same Lipper category as the fund. They also reviewed the fees paid by certain “wrap fee” separate accounts managed by the Manager (the “Separate Accounts” and, collectively with the Similar Funds, the “Similar Accounts”) with similar investment objectives and policies as the fund. The Manager’s representatives explained the nature of each Similar Account and the differences, from the Manager’s

The Fund 51

I N FO R M AT I O N A B O U T T H E R E V I E W A N D A P P R OVA L

O F T H E F U N D ’ S M A N A G E M E N T A G R E E M E N T ( U n a u d i t e d ) ( c o n t i n u e d )

perspective, in management of such Similar Accounts as compared to management of the fund.The Manager’s representatives also reviewed the costs associated with distribution through intermediaries.The Board analyzed differences in fees paid to the Manager and discussed the relationship of the advisory fees paid in light of the Manager’s performance and the services provided. It was noted that most of the Similar Funds that had lower management fees than the fund were designed exclusively either for institutional investors only or for private wealth clients as part of a private asset management program. One other Similar Fund had a lower management fee than the fund, while others had either the same or a higher management fee as the fund.The Board members considered the relevance of the fee information provided for the Similar Accounts managed by the Manager to evaluate the appropriateness and reasonableness of the fund’s advisory fees. A discussion ensued and the Board acknowledged that differences in fees paid by the Similar Accounts seemed to be consistent with the services provided.

Analysis of Profitability and Economies of Scale.The Manager’s representatives reviewed the dollar amount of expenses allocated and profit received by the Manager and the method used to determine such expenses and profit.The Board members evaluated the analysis in light of the relevant circumstances for the fund, including the recent decline in assets and the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund investors.The Board members also considered potential benefits to the Manager from acting as investment adviser and noted that there were no soft dollar arrangements with respect to trading the fund’s portfolio.

It was noted that the Board members should consider the Manager’s profitability with respect to the fund as part of their evaluation of whether the fee under the Management Agreement bears a reasonable relationship to the mix of services provided by the Manager, including the nature, quality and extent of such services and that a discussion of economies of scale are predicated on increasing assets and that, if a fund’s assets had been decreasing, the possibility that the Manager may have

52

realized any economies of scale would be less. It also was noted that the profitability percentage for managing the fund was within ranges determined by appropriate court cases to be reasonable given the fund’s overall performance and generally superior service levels rendered.

At the conclusion of these discussions, each of the Independent Directors expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to continuation of the fund’s Management Agreement. Based on their discussions and considerations as described above, the Board made the following conclusions and determinations.

  • The Board concluded that the nature, quality and extent of the services provided by the Manager are adequate and appropriate.
  • The Board was satisfied with the fund’s overall performance, not- ing in particular management’s representations with respect to new portfolio management for the fund.
  • The Board concluded that the fund’s fee paid to the Manager was reasonable in light of comparative performance and expense and advisory fee information, particularly given the Manager’s imple- mentation of an undertaking to reduce expenses, costs of the ser- vices provided and profits to be realized and benefits derived or to be derived by the Manager from its relationship with the fund.
  • The Board recognized that economies of scale may be realized as the fund’s assets increase and determined that, to the extent that material economies of scale had not been shared with the fund, the Board would seek to do so.

The Board members considered these conclusions and determinations, along with the information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the fund’s Management Agreement was in the best interests of the fund and its shareholders.

The Fund 53

For More    Information 
 
Dreyfus Premier    Transfer Agent & 
Core Bond Fund    Dividend Disbursing Agent 
200 Park Avenue     
    Dreyfus Transfer, Inc. 
New York, NY 10166     
    200 Park Avenue 
Manager    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue     
    Dreyfus Service Corporation 
New York, NY 10166     
    200 Park Avenue 
Custodian    New York, NY 10166 
Mellon Bank, N.A.     
One Mellon Bank Center     
Pittsburgh, PA 15258     

Telephone Call your financial representative or 1-800-554-4611

Mail    The Dreyfus Premier Family of Funds 
    144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2004, is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

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

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

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

Contents
 
    THE FUND 
2    Letter from the Chairman 
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 
14    Statement of Assets and Liabilities 
15    Statement of Operations 
16    Statement of Changes in Net Assets 
18    Financial Highlights 
22    Notes to Financial Statements 
FOR MORE INFORMATION
    Back Cover 

Dreyfus Premier 
Corporate Bond Fund 

The Fund

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Premier Corporate Bond Fund, covering the six-month period from November 1, 2004, through April 30, 2005. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s primary portfolio manager, David Bowser.

The six-month reporting period produced mixed results for most fixed-income securities.Although the Federal Reserve Board began to raise short-term interest rates before the reporting period in June 2004, longer-term bonds have remained remarkably resilient through 2004. Nonetheless, the first four months of 2005 saw heightened bond market volatility as higher interest rates and renewed inflationary pressures took their toll on investor sentiment. These factors led to price erosion late in the reporting period among corporate bonds and, to a lesser extent, U.S. government securities.

Nonetheless, fixed-income securities have held up well compared to previous periods of rising short-term interest rates. Strong demand from domestic and foreign investors have supported prices of U.S. Treasury securities, and stronger balance sheets and better business conditions have bolstered prices of corporate bonds. In our view, the bond market’s surprising strength represents yet another example of how a long-term investment perspective and a steady asset allocation strategy can benefit investors. As always, we encourage you to talk regularly with your financial advisor about the investment strategies that may be appropriate for you.

Thank you for your continued confidence and support.

The Dreyfus Corporation
May 16, 2005
2

DISCUSSION OF FUND PERFORMANCE

David Bowser, Portfolio Manager

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

For the six-month period ended April 30, 2005, the fund’s Class A shares achieved a –0.94% total return and distributed aggregate income dividends of $0.2551 per share, Class B shares achieved a –1.21% total return and distributed aggregate income dividends of $0.2204 per share, Class C shares achieved a –1.33% total return and distributed aggregate income dividends of $0.2049 per share and Class R shares achieved a –0.84% total return and distributed aggregate income dividends of $0.2684 per share.1 In comparison, the fund’s benchmark, the Lehman Brothers U.S. Credit Index, achieved a total return of 0.57% for the same period.2

Despite a rally during the final months of 2004, rising inflationary pressures and poor financial results in the automotive sector in early 2005 caused corporate bond prices to produce lackluster returns for the reporting period overall.The fund’s returns trailed its benchmark, primarily due to weakness among the fund’s BB-rated holdings, which are not represented in the benchmark.

Note to shareholders: On January 31, 2005, David Bowser and John McNichols became the fund’s primary and secondary portfolio managers, respectively. Each is a dual employee of Dreyfus and Standish Mellon Asset Management, LLC (Standish), a subsidiary of Mellon Financial Corporation and a Dreyfus affiliate. They apply Standish’s proprietary processes in managing the fund. Mr. Bowser also is the Strategist for Investment Grade Credit and a portfolio manager for corporate securities portfolios with Standish, and joined Standish in 2000. Mr. McNichols also is the Director of Credit Research and Investment for Standish, and joined Standish in 1993.

What is the fund’s investment approach?

The fund seeks to maximize total return through capital appreciation and current income.To pursue this goal, the fund invests at least 80% of its assets in bonds issued by “domestic” companies, which include U.S. dollar-denominated bonds issued by domestic or foreign-based companies. Normally, at least 75% of the fund’s assets will be invested in bonds

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

rated investment grade (BBB/Baa or higher) or the unrated equivalent as determined by Dreyfus.Although the fund may invest up to 25% of its assets in lower-rated, “high-yield” bonds, we seek to maintain the fund’s average credit quality within the investment-grade range.

When choosing securities, we review each issuer’s credit quality and the current state and long-term outlook of its industry or sector. Interest-rate and liquidity conditions are also factors.

What other factors influenced the fund’s performance?

Corporate bonds continued to gain value in the final months of 2004 as business conditions improved in a recovering economy. However, investor sentiment shifted in early 2005, when a stronger labor market and surging energy prices suggested that long-dormant inflationary pressures might be resurfacing. These factors reduced investors’ appetite for risk, and corporate bond prices began to fall as yield spreads widened toward historical norms. Weakness was particularly pronounced among lower-rated issues.

The market’s decline intensified in March 2005, when automotive giant General Motors reported a larger-than-expected loss and investors speculated that the major rating agencies might downgrade the company’s unsecured debt to the “high-yield” range — which in turn, hurt the fund’s performance somewhat. Indeed, just days after the end of the reporting period, Standard & Poor’s downgraded the credit ratings of both General Motors and Ford.

These developments placed pressure on the fund’s lower-rated corporate bond holdings, including those with “BB” credit ratings, which is the top of the high yield range. Because the fund’s benchmark contains no BB-rated bonds, the fund’s relative performance suffered. However, weakness among the fund’s lower-rated holdings was offset to a significant degree by relatively strong returns from a number of industry groups, including banks, insurance companies, real estate investment trusts, basic materials producers, aerospace and defense companies and waste management firms. Bonds from issuers in these areas weathered the downturn relatively well, and they generally have continued to offer attractive yields.

In addition, the fund successfully avoided the full brunt of weakness affecting airlines, which were hurt by rising fuel and security costs, and media companies, where management teams appeared to focus on

4

shareholder-friendly activities, such as stock buy-backs and dividend increases, over policies that benefit bondholders more.

Finally, the fund also benefited during most of the reporting period from the relatively short “average duration” — a measure of sensitivity to changing interest rates — among its holdings of U.S. government securities. This positioning helped keep funds available for higher-yielding opportunities as they became available in the rising interest-rate environment.

What is the fund’s current strategy?

As of the reporting period’s end, default rates have remained near historical lows and we have not seen the kind of speculative over-investment that typically heralds protracted bear markets. However, yield spreads remain narrower than historical norms, and we believe that selectivity through fundamental research is likely to be key to investment success in today’s market.

Accordingly, since assuming management responsibility for the fund in late January 2005, we have focused on identifying income-oriented opportunities from corporate issuers that, in our judgment, are positioned to weather heightened volatility as the bond market adjusts to the next phase of the economic cycle.The 15 securities analysts on our team have found a number of such opportunities among bonds rated “BB” and “BBB” that, in our judgment, may have been “underrated” by the major agencies.We also have focused on specific credits that we believe may qualify for credit-rating upgrades from the high-yield category to the investment-grade range.

May 16, 2005
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 fund expenses by The Dreyfus Corporation pursuant to an 
    agreement in effect through October 31, 2005. 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. Credit Index is a widely accepted, unmanaged 
    index of publicly issued, non-convertible, dollar-denominated, investment-grade U.S. corporate and 
    specified foreign securities, with at least $150 million par amounts outstanding and at least one 
    year to maturity. 

The Fund 5

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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 Corporate Bond Fund from November 1, 2004 to April 30, 2005. 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, 2005         
    Class A    Class B    Class C    Class R 
Expenses paid per $1,000 †    $ 5.43    $ 7.89    $ 9.11    $ 4.20 
Ending value (after expenses)    $990.60    $987.90    $986.70    $991.60 

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

Using the SEC’s method to compare expenses

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

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended April 30, 2005

    Class A    Class B    Class C    Class R 
Expenses paid per $1,000 †    $ 5.51    $ 8.00    $ 9.25    $ 4.26 
Ending value (after expenses)    $1,019.34    $1,016.86    $1,015.62    $1,020.58 

† Expenses are equal to the fund’s annualized expense ratio of 1.10% for Class A, 1.60% for Class B, 1.85% for Class C and .85% for Class R, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

6
STATEMENT OF INVESTMENTS
April 30, 2005 (Unaudited)
    Principal     
Bonds and Notes—98.2%    Amount ($)    Value ($) 
Aerospace & Defense—2.5%         
L-3 Communications,         
Sr. Notes, 7.625%, 2012    50,000    53,125 
Lockheed Martin,         
Notes, 7.25%, 2006    100,000    102,992 
Raytheon,         
Notes, 6.5%, 2005    14,000    14,081 
        170,198 
Agricultural—3.1%         
Altria,         
Notes, 7.2%, 2007    150,000    156,983 
RJ Reynolds Tobacco,         
Notes, 7.25%, 2012    50,000    52,250 
        209,233 
Auto Manufactering—1.7%         
DaimlerChrysler,         
Notes, 8.5%, 2031    100,000    114,524 
Banking—6.0%         
Bank of America,         
Sub. Notes, 7.4%, 2011    50,000    56,948 
Chuo Mitsui Trust & Banking,         
Sub. Notes, 5.506%, 2049    100,000 a    95,774 
Keycorp,         
Sub. Notes, 7.5%, 2006    50,000    51,905 
Washington Mutual,         
Sub. Notes, 4.625%, 2014    100,000    96,455 
Zions Bancorporation,         
Sub. Notes, 6%, 2015    100,000    106,770 
        407,852 
Building Materials—1.1%         
American Standard,         
Bonds, 5.5%, 2015    75,000 a    77,160 
Chemicals—2.4%         
Dow Chemical,         
Notes, 6%, 2012    50,000    54,234 
RPM International,         
Bonds, 6.25%, 2013    100,000    105,610 
        159,844 

The Fund 7

S T A T 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)

    Principal     
Bonds and Notes (continued)    Amount ($)    Value ($) 
Commercial Services—2.7%         
Aramark Services,         
Sr. Notes, 6.375%, 2008    100,000    105,126 
WMX Technology         
Notes, 7%, 2005    75,000    75,055 
        180,181 
Diversified Financial Services—14.9%     
Amvescap,         
Notes, 4.5%, 2009    50,000    49,735 
Boeing Capital:         
Bonds, 5.8%, 2013    18,000 b    19,180 
Notes, 6.5%, 2012    50,000 b    55,137 
CIT,         
Notes, 3.04%, 2007    53,000 c    53,122 
Capital One Bank,         
Sub. Notes, 6.5%, 2013    78,000    84,507 
Citigroup,         
Sub. Notes, 5%, 2014    75,000    75,635 
Ford Motor Credit,         
Notes, 7.375%, 2009    100,000    96,289 
GMAC:         
Bonds, 8%, 2031    65,000    54,827 
Notes, 6.875%, 2011    125,000    109,650 
Glencore Funding,         
Notes, 6%, 2014    100,000 a    94,879 
International Lease Finance,         
Notes, 4.75%, 2012    100,000    98,418 
MBNA,         
Sr. Notes, Ser. F, 7.5%, 2012    50,000    56,964 
Morgan Stanley,         
Sub. Notes, 4.75%, 2014    60,000    58,097 
SLM,         
Notes, Ser. A, 5.375%, 2014    100,000    103,439 
        1,009,879 
Electric Utilities—8.4%         
Allegheny Energy,         
Notes, 7.75%, 2005    75,000    75,769 
Cogentrix Energy (Gtd. by Goldman Sachs),     
Sr. Notes, 8.75%, 2008    55,000 a    62,905 

8
    Principal     
Bonds and Notes (continued)    Amount ($)    Value ($) 
Electric Utilities (continued)         
Dominion Resources,         
Sr. Notes, Ser. B, 7.625%, 2005    50,000    50,409 
Entergy Arkansas,         
First Mortgage, 6.125%, 2005    100,000    100,425 
Jersey Central Power & Light,         
First Mortgage Notes, 5.625%, 2016    23,000    23,854 
Monongahela Power,         
First Mortgage, 5%, 2006    50,000    50,628 
Nisource Finance,         
Notes, 3.2%, 2006    100,000    98,694 
Pacific Gas & Electric,         
First Mortgage, 4.8%, 2014    23,000    22,871 
TXU Energy,         
Sr. Notes, 7%, 2013    75,000    83,371 
        568,926 
Entertainment—.9%         
GTECH,         
Sr. Notes, 4.5%, 2009    60,000 a    59,254 
Environmental Control—.8%         
Republic Services,         
Notes, 6.086%, 2035    50,000 a    52,180 
Food & Beverages—.3%         
Miller Brewing,         
Notes, 4.25%, 2008    20,000 a    19,817 
Gaming & Lodging—1.7%         
Harrah’s Operating,         
Sr. Notes, 8%, 2011    100,000    114,250 
Health Care—1.8%         
HCA,         
Notes, 5.5%, 2009    21,000    20,940 
Manor Care,         
Gtd. Notes, 6.25%, 2013    20,000    21,433 
Medco Health Solutions,         
Sr. Notes, 7.25%, 2013    22,000    24,492 
Wyeth,         
Bonds, 6.5%, 2034    50,000    56,661 
        123,526 

The Fund 9

S T A T 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)

    Principal     
Bonds and Notes (continued)    Amount ($)    Value ($) 
Manufacturing—3.0%         
Bombardier,         
Notes, 6.3%, 2014    100,000 a,b    86,500 
Tyco International,         
Gtd. Notes, 5.8%, 2006    115,000    117,759 
        204,259 
Media—3.7%         
British Sky Broadcasting,         
Notes, 7.3%, 2006    50,000    52,288 
Clear Channel Communications,         
Sr. Notes, 5%, 2012    50,000    47,411 
Comcast,         
Sr. Notes, 6.5%, 2015    24,000    26,470 
Comcast Cable Communications,         
Sr. Notes, 6.75%, 2011    50,000 b    54,946 
TCA Cable TV,         
Debs., 6.53%, 2028    30,000    31,754 
Time Warner Entertainment,         
Sr. Notes, 8.375%, 2033    27,000    35,242 
        248,111 
Mining & Metals—1.2%         
Alcoa,         
Notes, 4.25%, 2007    15,000    15,029 
Noranda,         
Debs., 7%, 2005    65,000    65,463 
        80,492 
Oil & Gas—6.0%         
Amerada Hess,         
Notes, 7.3%, 2031    100,000    114,664 
Atmos Energy:         
Notes, 3.515%, 2007    62,000 c    62,122 
Sr. Notes, 5.125%, 2013    33,000    33,410 
ConocoPhillips,         
Notes, 4.75%, 2012    25,000    25,229 
Enterprise Products Operating,         
Sr. Notes, Ser. B, 4.625%, 2009    100,000    98,538 
Kerr-McGee,         
Notes, 6.95%, 2024    46,000    42,500 
Valero Energy,         
Notes, 7.375%, 2006    30,000    30,841 
        407,304 

10

    Principal     
Bonds and Notes (continued)    Amount ($)    Value ($) 
Packaging & Containers—1.6%         
Sealed Air,         
Bonds, 6.875%, 2033    100,000 a    111,157 
Paper & Forest Products—4.8%         
Celulosa Arauco y Constitucion,         
Notes, 5.625%, 2015    45,000 a    45,244 
Georgia-Pacific,         
Sr. Notes, 8%, 2024    100,000    107,000 
International Paper:         
Debs., 5.125%, 2012    50,000    48,986 
Notes, 5.85%, 2012    15,000    15,551 
Sappi Papier,         
Notes, 6.75%, 2012    100,000 a    108,814 
        325,595 
Pipelines—.8%         
ANR Pipeline,         
Notes, 8.875%, 2010    50,000    54,487 
Property-Casualty Insurance—5.6%     
Ace Capital Trust II,         
Bonds, 9.7%, 2030    100,000    135,419 
Assurant,         
Sr. Notes, 6.75%, 2034    100,000    110,872 
Chubb,         
Notes, 6%, 2011    15,000    16,006 
Metlife,         
Sr. Notes, 5.5%, 2014    68,000    70,897 
Oil Casualty Insurance,         
Sub. Debs., 8%, 2034    40,000 a    42,383 
        375,577 
Real Estate Investment Trusts—10.3%     
Archstone-Smith Operating Trust,         
Notes, 5.625%, 2014    100,000    103,125 
Arden Realty,         
Notes, 5.25%, 2015    75,000    73,871 
Boston Properties,         
Sr. Notes, 6.25%, 2013    100,000    107,608 
Duke Realty,         
Sr. Notes, 7.75%, 2009    100,000    111,996 
EOP Operating:         
Bonds, 7.875%, 2031    50,000    61,566 
Sr. Notes, 7%, 2011    30,000    33,181 

The Fund 11

S T A T 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)

    Principal     
Bonds and Notes (continued)    Amount ($)    Value ($) 
Real Estate Investment Trusts (continued)     
Healthcare Realty Trust,         
Sr. Notes, 5.125%, 2014    100,000    97,237 
Oasis Residential,         
Notes, 7.25%, 2006    50,000    52,079 
Simon Property,         
Notes, 6.875%, 2006    50,000    51,883 
        692,546 
Retail—1.6%         
Tricon Global,         
Sr. Notes, 8.875%, 2011    90,000    108,812 
Technology—2.3%         
Freescale Semiconductor,         
Sr. Notes, 6.875%, 2011    50,000    51,500 
IBM,         
Notes, 4.875%, 2006    100,000    101,374 
        152,874 
Telecommunications—6.8%         
British Telecommunications,         
Notes, 8.375%, 2010    26,000    30,537 
Deutsche Telekom International Finance,     
Notes, 9.25%, 2032    50,000    74,393 
Motorola,         
Notes, 4.608%, 2007    30,000    30,229 
Nextel Communications,         
Sr. Notes, 5.95%, 2014    25,000    25,438 
Qwest,         
Sr. Notes, 7.875%, 2011    50,000 a    51,000 
Sprint Capital,         
Notes, 8.75%, 2032    100,000    134,882 
Verizon Global Funding,         
Notes, 4.375%, 2013    100,000    97,388 
Verizon Wireless Capital,         
Notes, 5.375%, 2006    15,000    15,308 
        459,175 
U.S. Government—2.2%         
U.S. Treasury Notes,         
4.25%, 8/15/2013    150,000    151,254 
Total Bonds and Notes         
(cost $6,700,359)        6,638,467 

12

Preferred Stocks—.1%    Shares    Value ($) 
Health Care—.1%         
Schering-Plough,         
Cum. Conv., $3.00         
(cost $7,580)    150    8,756 
 
Other Investments—.4%         
Resistered Investment Company;         
Dreyfus Institutional Preferred         
Plus Money Market Fund         
(cost $23,000)    23,000 d    23,000 
 
Investment of Cash Collateral         
for Securities Loaned—3.3%         
Registered Invetment Company;         
Dreyfus Institutional Cash Advantage Plus Fund     
(cost $224,980)    224,980 d    224,980 
 
Total Investments (cost $6,955,919)    102.0%    6,895,203 
Liabilities, Less Cash and Receivables    (2.0%)    (135,575) 
Net Assets    100.0%    6,759,628 

a Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in 
transactions exempt from registration, normally to qualified institutional buyers.At April 30, 2005, these securities 
amounted to $907,067 or 13.4% of net assets. 
b All of these securities are on loan. At April 30, 2005, the total market value of the fund’s securities on loan is 
$215,764 and the total market value of the collateral held by the fund is $224,980. 
c Variable rate security—interest rate subject to periodic change. 
d Investments in affiliated money market mutual funds. 

Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Diversified Financial Services    14.9    Money Market Investments    3.7 
Real Estate Investment Trusts    10.3    Agricultural    3.1 
Electric Utilities    8.4    Manufacturing    3.0 
Telecommunications    6.8    Commercial Services    2.7 
Banking    6.0    Aerospace & Defense    2.5 
Oil & Gas    6.0    Preferred Stocks    .1 
Property-Casualty Insurance    5.6    Other    20.4 
Paper & Forest Products    4.8         
Media    3.7        102.0 
 
† Based on net assets.             
See notes to financial statements.             

The Fund 13

STATEMENT OF ASSETS AND LIABILITIES

April 30, 2005 ( 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 $215,764)—Note 1(c):             
Unaffiliated issuers            6,707,939    6,647,223 
Affiliated issuers            247,980    247,980 
Cash denominated in foreign currencies        89    90 
Dividends and interest receivable                97,680 
Receivable for investment securities sold            59,080 
Prepaid expenses                20,615 
                7,072,668 
Liabilities ($):                 
Due to The Dreyfus Corporation and affiliates—Note 3(c)        21 
Liability for securities on loan—Note 1(c)            224,980 
Cash overdraft due to Custodian                1,924 
Payable for investment securities purchased            64,333 
Accrued expenses                21,782 
                313,040 
Net Assets ($)                6,759,628 
Composition of Net Assets ($):                 
Paid-in capital                6,860,015 
Accumulated distributions in excess of investment income—net        (382) 
Accumulated net realized gain (loss) on investments        (39,289) 
Accumulated net unrealized appreciation             
(depreciation) on investments                (60,716) 
Net Assets ($)                6,759,628 
 
 
Net Asset Value Per Share                 
    Class A    Class B    Class C    Class R 
Net Assets ($)    4,352,312    1,052,413    714,614    640,289 
Shares Outstanding    347,416    83,970    57,022    51,104 
Net Asset Value Per Share ($)    12.53    12.53    12.53    12.53 

See notes to financial statements.
14
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2005 (Unaudited)
Investment Income ($):     
Income:     
Interest    159,233 
Dividends:     
Unaffiliated issuers    269 
Affiliated issuers    2,932 
Income from securities lending    1,569 
Total Income    164,003 
Expenses:     
Management fee—Note 3(a)    20,088 
Professional fees    25,187 
Registration fees    23,256 
Shareholder servicing costs—Note 3(c)    8,965 
Custodian fees—Note 3(c)    6,862 
Distribution fees—Note 3(b)    5,182 
Prospectus and shareholders’ reports    4,139 
Trustees’ fees and expenses—Note 3(d)    1,091 
Miscellaneous    5,423 
Total Expenses    100,193 
Less—expense reimbursement from The Dreyfus Corporation     
due to undertaking—Note 3(a)    (58,983) 
Net Expenses    41,210 
Investment Income—Net    122,793 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and foreign currency transactions    (15,720) 
Net realized gain (loss) on financial futures    9,267 
Net realized gain (loss) on options transactions    385 
Net realized gain (loss) on swap transactions    (22,612) 
Net realized gain (loss) on forward currency exchange contracts    (735) 
Net Realized Gain (Loss)    (29,415) 
Net unrealized appreciation (depreciation) on investments, foreign     
currency transactions, options transactions and swap transactions     
(including $4,125 net unrealized appreciation on financial futures)    (162,192) 
Net Realized and Unrealized Gain (Loss) on Investments    (191,607) 
Net (Decrease) in Net Assets Resulting from Operations    (68,814) 
 
See notes to financial statements.     

The Fund 15

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    April 30, 2005    Year Ended 
    (Unaudited)    October 31, 2004 
Operations ($):         
Investment income—net    122,793    226,793 
Net realized gain (loss) on investments    (29,415)    67,013 
Net unrealized appreciation         
(depreciation) on investments    (162,192)    41,200 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    (68,814)    335,006 
Dividends to Shareholders from ($):         
Investment income—net:         
Class A shares    (87,249)    (155,600) 
Class B shares    (16,954)    (23,648) 
Class C shares    (11,799)    (20,605) 
Class R shares    (13,512)    (23,737) 
Net realized gain on investments:         
Class A shares    (56,081)    (239,320) 
Class B shares    (12,009)    (35,871) 
Class C shares    (9,909)    (39,035) 
Class R shares    (8,254)    (32,646) 
Total Dividends    (215,767)    (570,462) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Class A shares    44,512    368,674 
Class B shares    258,357    214,186 
Class C shares    49,664    67,475 
Class R shares    44    — 
Dividends reinvested:         
Class A shares    138,874    382,768 
Class B shares    27,948    58,051 
Class C shares    18,873    51,481 
Class R shares    21,757    56,234 
Cost of shares redeemed:         
Class A shares    (38,017)    (519,761) 
Class B shares    (36,127)    (72,550) 
Class C shares    (79,204)    (31,036) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    406,681    575,522 
Total Increase (Decrease) in Net Assets    122,100    340,066 
Net Assets ($):         
Beginning of Period    6,637,528    6,297,462 
End of Period    6,759,628    6,637,528 
Undistributed (distributions in excess of)         
investment income—net    (382)    6,339 

16 

    Six Months Ended     
    April 30, 2005    Year Ended 
    (Unaudited)    October 31, 2004 
Capital Share Transactions:         
Class A a         
Shares sold    3,463    27,739 
Shares issued for dividends reinvested    10,829    29,388 
Shares redeemed    (2,960)    (40,438) 
Net Increase (Decrease) in Shares Outstanding    11,332    16,689 
Class B a         
Shares sold    20,038    16,428 
Shares issued for dividends reinvested    2,180    4,462 
Shares redeemed    (2,816)    (5,645) 
Net Increase (Decrease) in Shares Outstanding    19,402    15,245 
Class C         
Shares sold    3,777    5,029 
Shares issued for dividends reinvested    1,471    3,955 
Shares redeemed    (6,121)    (2,342) 
Net Increase (Decrease) in Shares Outstanding    (873)    6,642 
Class R         
Shares sold    3    — 
Shares issued for dividends reinvested    1,697    4,323 
Net Increase (Decrease) in Shares Outstanding    1,700    4,323 

a During the period ended October 31, 2004, 2,577 Class B shares representing $33,638 were automatically converted to 2,577 Class A shares.

See notes to financial statements.

The Fund 17

FINANCIAL HIGHLIGHTS

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

        Six Months Ended         
        April 30, 2005    Year Ended October 31, 
Class A Shares    (Unaudited)    2004    2003 a 
Per Share Data ($):             
Net asset value, beginning of period    13.07    13.54    12.50 
Investment Operations:             
Investment income—net b    .24    .47    .54 
Net realized and unrealized             
gain (loss) on investments    (.35)    .24    1.05 
Total from Investment Operations    (.11)    .71    1.59 
Distributions:             
Dividends from investment income—net    (.26)    (.46)    (.55) 
Dividends from net realized gain on investments    (.17)    (.72)    — 
Total Distributions    (.43)    (1.18)    (.55) 
Net asset value, end of period    12.53    13.07    13.54 
Total Return (%) c    (.94)d    5.54    12.84 
Ratios/Supplemental Data (%):             
Ratio of total expenses to average net assets    2.85e    2.88    3.06 
Ratio of net expenses to average net assets    1.10e    1.10    1.10 
Ratio of net investment income             
to average net assets    3.80e    3.60    4.03 
Portfolio Turnover Rate    83.36d    454.52    801.26 
Net Assets, end of period ($ x 1,000)    4,352    4,391    4,325 
 
a    From November 1, 2002 (commencement of operations) to October 31, 2003.         
b    Based on average shares outstanding at each month end.         
c    Exclusive of sales charge.             
d    Not annualized.             
e    Annualized             
See notes to financial statements.             

18
        Six Months Ended         
        April 30, 2005    Year Ended October 31, 
Class B Shares    (Unaudited)    2004    2003 a 
Per Share Data ($):             
Net asset value, beginning of period    13.07    13.54    12.50 
Investment Operations:             
Investment income—net b    .21    .40    .47 
Net realized and unrealized             
gain (loss) on investments    (.36)    .25    1.05 
Total from Investment Operations    (.15)    .65    1.52 
Distributions:             
Dividends from investment income—net    (.22)    (.40)    (.48) 
Dividends from net realized gain on investments    (.17)    (.72)    — 
Total Distributions    (.39)    (1.12)    (.48) 
Net asset value, end of period    12.53    13.07    13.54 
Total Return (%) c    (1.21)d    5.03    12.27 
Ratios/Supplemental Data (%):             
Ratio of total expenses to average net assets    3.41e    3.40    3.56 
Ratio of net expenses to average net assets    1.60e    1.60    1.60 
Ratio of net investment income             
to average net assets    3.30e    3.11    3.50 
Portfolio Turnover Rate    83.36d    454.52    801.26 
Net Assets, end of period ($ x 1,000)    1,052    844    668 
 
a    From November 1, 2002 (commencement of operations) to October 31, 2003.         
b    Based on average shares outstanding at each month end.         
c    Exclusive of sales charge.             
d    Not annualized.             
e    Annualized             
See notes to financial statements.             

The Fund 19

FINANCIAL HIGHLIGHTS (continued)
        Six Months Ended         
        April 30, 2005    Year Ended October 31, 
Class C Shares    (Unaudited)    2004    2003 a 
Per Share Data ($):             
Net asset value, beginning of period    13.07    13.54    12.50 
Investment Operations:             
Investment income—net b    .19    .37    .43 
Net realized and unrealized             
gain (loss) on investments    (.36)    .25    1.06 
Total from Investment Operations    (.17)    .62    1.49 
Distributions:             
Dividends from investment income—net    (.20)    (.37)    (.45) 
Dividends from net realized gain on investments    (.17)    (.72)    — 
Total Distributions    (.37)    (1.09)    (.45) 
Net asset value, end of period    12.53    13.07    13.54 
Total Return (%) c    (1.33)d    4.70    12.08 
Ratios/Supplemental Data (%):             
Ratio of total expenses to average net assets    3.61e    3.64    3.83 
Ratio of net expenses to average net assets    1.85e    1.85    1.85 
Ratio of net investment income             
to average net assets    3.05e    2.85    3.25 
Portfolio Turnover Rate    83.36d    454.52    801.26 
Net Assets, end of period ($ x 1,000)    715    757    694 
 
a    From November 1, 2002 (commencement of operations) to October 31, 2003.         
b    Based on average shares outstanding at each month end.         
c    Exclusive of sales charge.             
d    Not annualized.             
e    Annualized             
See notes to financial statements.             

20
        Six Months Ended         
        April 30, 2005    Year Ended October 31, 
Class R Shares    (Unaudited)    2004    2003 a 
Per Share Data ($):             
Net asset value, beginning of period    13.07    13.54    12.50 
Investment Operations:             
Investment income—net b    .26    .50    .57 
Net realized and unrealized             
gain (loss) on investments    (.36)    .24    1.05 
Total from Investment Operations    (.10)    .74    1.62 
Distributions:             
Dividends from investment income—net    (.27)    (.49)    (.58) 
Dividends from net realized gain on investments    (.17)    (.72)    — 
Total Distributions    (.44)    (1.21)    (.58) 
Net asset value, end of period    12.53    13.07    13.54 
Total Return (%)    (.84)c    5.83    13.12 
Ratios/Supplemental Data (%):             
Ratio of total expenses to average net assets    2.60d    2.62    2.79 
Ratio of net expenses to average net assets    .85d    .85    .85 
Ratio of net investment income             
to average net assets    4.05d    3.85    4.27 
Portfolio Turnover Rate    83.36c    454.52    801.26 
Net Assets, end of period ($ x 1,000)    640    645    610 
 
a    From November 1, 2002 (commencement of operations) to October 31, 2003.         
b    Based on average shares outstanding at each month end.         
c    Not annualized.             
d    Annualized             
See notes to financial statements.             

The Fund 21

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus Premier Corporate 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 two series, including 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”).

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 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. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase and 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.

As of April 30, 2005, MBC Investments Corp., an indirect subsidiary of Mellon Financial, held 329,381 Class A shares, 46,465 Class B shares, 46,183 Class C shares and 47,349 Class R shares of the fund.

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.

22

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. Securities for which there are no such valuations are valued at fair value as determined in good faith under the direction of the Board of Trustees. Restricted securities, as well as securities or other assets for which recent market quotations are not readily available, that are not valued by a pricing service approved by the Board of Trustees, or are determined by the fund not to reflect accurately fair value (such as when an event occurs after the close of the exchange on which the security is principally traded and that is determined by the fund to have changed the value of the security), 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

The Fund 23

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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. Investments in registered investment companies 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. Swap transactions are valued daily based upon future cash flows and other factors, such as interest rates and underlying securities. 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.

(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

24

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, if any, 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 institu-tions.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 will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The fund will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transac-tion.Although each security loaned is fully collateralized, the fund would bear 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, if any, 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.

The Fund 25

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

(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 tax character of distributions paid to shareholders during the fiscal year ended October 31, 2004 was as follows: ordinary income $565,224 and long-term capital gains $5,238. The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Line of Credit:

The fund 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 borrowings.During the period ended April 30,2005,the fund did not borrow under the Facility.

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 1% of the value of the fund’s average daily net assets and is payable monthly. The Manager has undertaken, from November 1, 2004 through October 31, 2005, that, if the fund’s aggregate expenses, exclusive of taxes, brokerage fees, Rule 12b-1 distribution plan fees, interest expense, shareholder services plan fees and extraordinary expenses, exceed an annual rate of .85% 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 expense reimbursement, pursuant to the undertaking, amounted to $58,983 during the period ended April 30, 2005.

26

During the period ended April 30, 2005, the Distributor retained $21 from commissions earned on sales of the fund’s Class A shares and $732 from contingent deferred sales charges on redemptions of the fund’s Class B shares.

(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 1% of the value of the average daily net assets of Class B shares and .75 of 1% of the value of the average daily net assets of Class C shares. During the period ended April 30, 2005, Class B and Class C shares were charged $2,440 and $2,742, 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 1% 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, 2005, Class A, Class B and Class C shares were charged $5,436, $1,220 and $914, respectively, pursuant to the Shareholder Services Plan.

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended April 30, 2005, the fund was charged $669 pursuant to the transfer agency agreement.

The Fund 27

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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, 2005, the fund was charged $6,862 pursuant to the custody agreement.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $3,320, Rule 12b-1 distribution plan fees $871, shareholder services plan fees $1,247, custodian fees $1,421 and transfer agency per account fees $212, which are offset against an expense reimbursement currently in effect in the amount of $7,050.

(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 Securities and Exchange Commission, 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, 2005, amounted to $5,682,039 and $5,471,667, respectively.

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

28

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. At April 30, 2005, there were no financial futures contracts outstanding.

The following summarizes the fund’s call/put options written for the 
period ended April    30, 2005:             
    Face Amount        Options Terminated 
    Covered by    Premiums        Net Realized 
Options Written:    Contracts ($)    Received ($)    Cost ($)    Gain ($) 
Contracts outstanding                 
October 31, 2004    130,000    953         
Contracts expired    130,000    953    570    383 
Contracts outstanding             
April 30, 2005    —    —         

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 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 Fund 29

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 counterparty nonperformance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract. At April 30, 2005, there were no forward currency exchange contracts outstanding.

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) of 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 swaps 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 or receive 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

30

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 credits protection on the underlying instrument. The maximum payouts for these contracts are limited to the notional amount of each swap. At April 30, 2005,there were no credit default swaps outstanding.

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, 2005, accumulated net unrealized depreciation on investments was $60,716, consisting of $65,350 gross unrealized appreciation and $126,066 gross unrealized depreciation.

At April 30, 2005, 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—Legal Matters:

In early 2004, two purported class and derivative actions were filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC, and certain directors of the Dreyfus Funds and the Dreyfus Founders Funds (together, the “Funds”) in the United States District Court for the Western District of Pennsylvania. In September 2004, plaintiffs served a Consolidated Amended Complaint (the “Amended Complaint”) on behalf of a purported class of all persons who acquired interests in any of the Funds between January 30, 1999 and November 17, 2003, and derivatively on behalf of the Funds.The Amended Complaint in the newly styled In re Dreyfus Mutual Funds Fee Litigation also named the Distributor, Premier Mutual Fund Services, Inc. and two additional Fund directors as defendants and alleges violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Pennsylvania Unfair Trade Practices and Consumer Protection Law and common-law claims.

The Fund 31

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Plaintiffs seek to recover allegedly improper and excessive Rule 12b-1 and advisory fees allegedly charged to the Funds for marketing and distribution services. More specifically, plaintiffs claim, among other things, that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend the Funds over other funds, and that such payments were not disclosed to investors. In addition, plaintiffs assert that economies of scale and soft-dollar benefits were not passed on to the Funds. Plaintiffs further allege that 12b-1 fees were improperly charged to certain of the Funds that were closed to new investors.The Amended Complaint seeks compensatory and punitive damages, rescission of the advisory contracts, and an accounting and restitution of any unlawful fees, as well as an award of attorneys’ fees and litigation expenses. As noted, some of the claims in this litigation are asserted derivatively on behalf of the Funds that have been named as nominal defendants.With respect to such derivative claims, no relief is sought against the Funds. Dreyfus believes the allegations to be totally without merit and intends to defend the action vigorously. Defendants filed motions to dismiss the Amended Complaint on November 12, 2004, and those motions are pending.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Funds believe that any of the pending actions will have a material adverse effect on the Funds or Dreyfus’ ability to perform its contract with the Funds.

32
For More    Information 
 
Dreyfus Premier    Transfer Agent & 
Corporate Bond Fund    Dividend Disbursing Agent 
200 Park Avenue     
    Dreyfus Transfer, Inc. 
New York, NY 10166     
    200 Park Avenue 
Manager    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue     
    Dreyfus Service Corporation 
New York, NY 10166     
    200 Park Avenue 
Custodian    New York, NY 10166 
Mellon Bank, N.A.     
One Mellon Bank Center     
Pittsburgh, PA 15258     

Telephone Call your financial representative or 1-800-554-4611

Mail    The Dreyfus Premier Family of Funds 
    144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, and information regarding how the fund voted these proxies for the 12-month period ended June 30, 2004, is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

®

© 2005 Dreyfus Service Corporation 0569SA0405

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. [CLOSED-END FUNDS ONLY] 
Item 10.    Submission of Matters to a Vote of Security Holders. 

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

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

Item 11. Controls and Procedures.

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

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

Item 12. Exhibits.

(a)(1)    Not applicable. 
(a)(2)    Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) 
under the Investment Company Act of 1940. 
(a)(3)    Not applicable. 
(b)    Certification of principal executive and principal financial officers as required by Rule 30a-2(b) 
under the Investment Company Act of 1940. 

SIGNATURES

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

DREYFUS PREMIER FIXED INCOME FUNDS

By:    /s/ Stephen E. Canter 
    Stephen E. Canter 
    President 
 
Date:    June 27, 2005 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 
1940, this Report has been signed below by the following persons on behalf of the Registrant and in the 
capacities and on the dates indicated. 
 
By:    /s/ Stephen E. Canter 
    Stephen E. Canter 
    Chief Executive Officer 
 
Date:    June 27, 2005 
 
By:    /s/ James Windels 
    James Windels 
    Chief Financial Officer 
 
Date:    June 27, 2005 
 
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)