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 | 811-09903 | |||||
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| BNY Mellon Funds Trust |
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| (Exact name of Registrant as specified in charter) |
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c/o The Dreyfus Corporation 200 Park Avenue New York, New York 10166 |
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| (Address of principal executive offices) (Zip code) |
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| Michael A. Rosenberg, Esq. 200 Park Avenue New York, New York 10166 |
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| (Name and address of agent for service) |
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Registrant's telephone number, including area code: | (212) 922-6000 | |||||
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Date of fiscal year end:
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Date of reporting period: | 8/31/2010 |
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The BNY Mellon Funds
BNY Mellon Large Cap Stock Fund |
BNY Mellon Large Cap Market Opportunities Fund |
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund |
BNY Mellon Income Stock Fund |
BNY Mellon Mid Cap Stock Fund |
BNY Mellon Small Cap Stock Fund |
BNY Mellon U.S. Core Equity 130/30 Fund |
BNY Mellon Focused Equity Opportunities Fund |
BNY Mellon Small/Mid Cap Fund |
BNY Mellon International Fund |
BNY Mellon Emerging Markets Fund |
BNY Mellon InternationalAppreciation Fund |
BNY Mellon Balanced Fund |
ANNUAL REPORT | August 31, 2010 |
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Sean P. Fitzgibbon and Jeffrey D. McGrew, Portfolio Managers
Market and Fund Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Large Cap Stock Fund’s Class M shares produced a total return of 6.62%, and Investor shares returned 6.21%.1 In comparison, the total return of the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”), the fund’s benchmark, was 4.93%.2
After rallying over much of the reporting period, stocks were driven lower over the spring and summer of 2010 by a variety of global and domestic economic setbacks. The fund produced higher returns than its benchmark, primarily due to strong stock selections in seven of the S&P 500 Index’s 10 market sectors.
The Fund’s Investment Approach
The fund seeks capital appreciation. To pursue its goal, the fund normally invests at least 80% of its assets in stocks of large-cap companies. We choose stocks through a disciplined investment process that uses computer modeling techniques to identify and rank companies based on value, growth and other financial characteristics.Also, we use fundamental analysis, conducting independent research to select the most attractive of the higher ranked securities. We also attempt to manage risks by diversifying the fund’s investments across companies and industries, maintaining weightings and risk characteristics that generally are similar to those of the S&P 500 Index.
Economic Concerns Outweighed Corporate Performance
From the beginning of the reporting period through April 2010, the U.S. economy continued to recover from the Great Recession and financial crisis. Most U.S. corporations posted stronger earnings and revenues, propelling stock prices higher. However, in early May 2010 a sovereign debt crisis in Greece threatened to spread to other members of the European Union. Investor confidence was further undermined by rising inflationary pressures in China, as well as ongoing troubles in U.S. housing markets, persistently high levels of U.S. unemployment and a major oil spill in the Gulf of Mexico. As a result, U.S. stocks gave back a substantial portion of their earlier gains.
Outperforming Across a Wide Range of Sectors
The fund’s outperformance relative to its benchmark was led by the energy sector, where we focused on exploration-and-production firms over integrated oil companies with significant refinery operations. The fund particularly benefited from avoiding exposure to industry giant ExxonMobil, which lagged due to concerns about future growth prospects. The fund achieved better results with Anadarko Petroleum, which we believed had been punished more severely than warranted after the Gulf oil spill, and Newfield Exploration, which owns attractive assets with strong growth potential. The fund also benefited from its position in XTO Energy, which was acquired by
The Funds | 3 |
DISCUSSION OF FUND PERFORMANCE (continued)
ExxonMobil early in the reporting period.
In the materials sector, the fund enhanced returns through an investment in Brazilian metals-and-mining company Vale, which introduced a new pricing structure and saw robust demand from China for iron ore. The fund gained ground with good stock selections among agricultural chemicals makers, such as E. I. du Pont de Nemours & Co. and CF Industries Holdings. In the consumer discretionary sector, the fund achieved strong results after buying stocks at attractive prices during the downturn and holding them while they recovered to richer valuations. Automotive safety equipment maker Autoliv benefited from improved car and truck sales. Apparel retailers Limited Brands and Gap proved well positioned for improved consumer spending and confidence, while Home Depot and Whirlpool benefited from rising demand for home improvement products and appliances, respectively.
The fund’s most significant disappointments were concentrated in the financials sector, where JPMorgan Chase & Co. and Bank of America lagged despite solid business franchises with strong growth potential. Indeed, we added to the fund’s holdings of Bank of America during periods of price weakness. Citigroup detracted from the fund’s relative performance early in the reporting period, when we sold the fund’s position due to company-specific issues. Finally, custodial bank State Street Corp. reported disappointing results in their securities lending and foreign exchange businesses.
The fund suffered a mild decline in the utilities sector, where electricity producer Mirant Corp. declined early in the reporting period as natural gas prices fell and coal prices climbed, prompting its elimination from the portfolio. The fund’s telecommunications services investments also trailed market averages, primarily due to underweighted exposure to some of the benchmark’s smaller wireless service providers.
Remaining Cautiously Opportunistic
We believe the market’s recent dip has created attractive opportunities in stocks with attractive growth potential. Given our view that the U.S. economy appears poised for continued recovery, and recognizing that the pace of recovery may remain slow, we have maintained the fund’s opportunistic, valuation-conscious and risk-conscious investment approach. We recently have found a number of opportunities meeting our criteria in the health care sector, and fewer in the financials and consumer staples sectors.
September 15, 2010
Please note, the position in any security highlighted with italicized typeface | |
was sold during the reporting period. | |
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all of | |
which are more fully described in the fund’s prospectus. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and investment | |
return fluctuate such that upon redemption, fund shares may be worth more or | |
less than their original cost. | |
2 | SOURCE: LIPPER INC. — Reflects the monthly reinvestment of |
dividends and, where applicable, capital gain distributions.The Standard & | |
Poor’s 500 Composite Stock Price Index is a widely accepted, unmanaged | |
index of U.S. stock market performance. Index return does not reflect fees and | |
expenses associated with operating a mutual fund. Investors cannot invest | |
directly in any index. |
4
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Large Cap Stock Fund Class M shares and the Standard & Poor’s 500 Composite Stock Price Index
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 1/1/85 | 6.62% | –1.24% | –3.07% | — |
Investor shares | 7/11/01 | 6.21% | –1.55% | — | –0.61% |
Standard & Poor’s 500 | |||||
Composite Stock Price Index†† | 9/30/00 | 4.93% | –0.91% | — | –1.29% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Large Cap Stock Fund on 8/31/00 to a $10,000 investment made in |
the Standard & Poor’s 500 Composite Stock Price Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund (and those of another CTF) were transferred to the fund. Please note that the performance of the fund’s Class |
M shares represents the performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the actual |
performance of the CTF the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the performance of |
the fund’s Class M shares thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore was not subject |
to certain investment restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher than those |
estimated prior to the conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is a widely accepted, unmanaged index of U.S. |
stock market performance. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further |
information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and |
elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
The Funds | 5 |
DISCUSSION OF FUND PERFORMANCE (continued)
DISCUSSION OF
FUND PERFORMANCE
For the period from July 30, 2010, through August 31, 2010, as provided by Christopher E. Sheldon, CFA, Portfolio Manager
Fund and Market Performance Overview
For the period from the commencement of fund operations on July 30, 2010, through August 31, 2010, BNY Mellon Large Cap Market Opportunities Fund’s Class M shares produced a total return of –5.20%, and Investor shares returned –5.20%.1 In comparison, the total return of the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”), the fund’s benchmark, was –4.51% for the same period.2
Although we believe that one month is too brief a time frame to gauge accurately the performance of long-term investments, stocks generally declined in August 2010 amid intensifying investor concerns in a slowing economic environment. The fund produced lower returns than its benchmark during its first month of operations, primarily due to lagging results from its U.S. Large-Cap Equity Strategy.
The Fund’s Investment Approach
The fund seeks long-term capital appreciation.To pursue its goal, the fund normally invests at least 80% of its assets in equity securities of large cap companies, currently defined to be those companies with total market capitalizations of $5 billion or more at the time of the purchase. The fund normally allocates its assets among multiple investment strategies, each employed by the fund’s investment adviser or its affiliates that invest primarily in equity securities issued by large-cap companies. The fund is designed to provide exposure to various large-cap equity portfolio managers and investment strategies and styles, including some or all of the following: the Focused Equity Strategy, U.S. Large Cap Equity Strategy, U.S. Core Equity 130/30 Strategy, Dynamic Large Cap Value Strategy, Large Cap Growth Strategy and U.S. Large Cap Gr owth Strategy, all as more particularly described in the fund’s prospectus. The fund invests directly in securities or in other mutual funds advised by the fund’s investment adviser or its affiliates.
The fund’s investment adviser determines the investment strategies, sets the target allocations, monitors portfolio trading activity within the investment strategies and executes all purchases and sales of portfolio securities of the fund.
Economic Uncertainties Sparked Market Volatility
When the fund commenced operations on July 30, 2010, investors generally had grown worried about signs that the prevailing economic recovery might be losing momentum. Global economic confidence had been undermined in the spring and summer of 2010 by a sovereign debt crisis in Europe, in which Greece and other nations found themselves unable to finance heavy debt loads. Meanwhile, inflationary pressures in China led to higher short-term interest rates and other remedial measures, which investors worried might constrain a major engine of global growth. In the United States, investors became more cautious in light of persistently high levels of unemployment and ongoing troubles in housing markets.As a result, large-cap U.S. stocks lost ground during August 2010.
Large-Cap Strategies Produced Mixed Results
The fund began operations fully invested in three underlying large-cap strategies: 40% of assets were invested in the
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Focused Equity Strategy, 40% in the U.S. Large Cap Equity Strategy and 20% in the U.S. Core Equity 130/30 Strategy. In our judgment, these target allocations provided the fund with broad exposure to a variety of investment styles, large-cap market sectors and individual securities.
During August, two of the three strategies produced returns that were higher than the S&P 500 Index.The Focused Equity Strategy invests in approximately 25 to 30 companies that are considered by the portfolio manager to be positioned for long-term earnings growth. It combines a top-down assessment of broad economic, political and social trends with bottom-up, fundamental analysis of individual companies in the market sectors and industries identified as most attractive given the competitive landscape and business trends. The U.S. Core Equity 130/30 Strategy, implemented through the fund’s investment in BNY Mellon U.S. Core Equity 130/30 Fund, focuses on growth and value stocks of large-cap companies, establishing both long and short positions in stocks chosen through a disciplined investment process that combines computer modeling techniques, fundamental analysis and risk management.
However, the U.S. Large Cap Equity Strategy under-performed the S&P 500 Index in August.This strategy seeks investment opportunities in U.S. companies with fundamental strengths that indicate the potential for sustainable growth.The strategy’s approach is to build its portfolio from the bottom up through extensive fundamental research.
Positioned for Further Recovery
Although the U.S. and worldwide economies have hit a rough patch, we do not expect a return to global reces-sion.We believe that slower growth in the United States and Europe is likely to be balanced by more robust growth in the emerging markets. In our view, investors in a slow-growth environment are likely to become more selective, favoring large-cap companies with solid business fundamentals and attractive valuations. In addition, we believe that the U.S. stock market may be poised for further gains if large companies begin to deploy some of the massive cash reserves on their balance sheets into share buybacks, higher dividends or strategic acquisitions.
September 15, 2010
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all | |
of which are more fully described in the fund’s prospectus. | |
Return figures provided reflect the absorption of certain fund expenses by | |
BNY Mellon Fund Advisors pursuant to an agreement through January 1, | |
2012, at which time it may be extended, terminated or modified. Had | |
these expenses not been absorbed, the fund’s returns would have been lower. | |
The fund may use derivative instruments, such as options, futures and | |
options on futures and swaps.A small investment in derivatives could have | |
a potentially large impact on the fund’s performance.The use of derivatives | |
involves risks different from, or possibly greater than, the risks associated | |
with investing directly in the underlying assets. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. | |
2 | SOURCE: LIPPER INC. — Reflects monthly reinvestment of dividends |
and, where applicable, capital gain distributions.The Standard & Poor’s 500 | |
Composite Stock Price Index is a widely accepted, unmanaged index of | |
U.S. stock market performance. Investors cannot invest directly in any index. |
The Funds | 7 |
DISCUSSION OF FUND PERFORMANCE (continued)
DISCUSSION OF
FUND PERFORMANCE
For the period from July 30, 2010, through August 31, 2010, as provided by Christopher E. Sheldon, CFA, Portfolio Manager
Fund and Market Performance Overview
For the period from the commencement of fund operations on July 30, 2010, through August 31, 2010, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund’s Class M shares produced a total return of –4.80%, and Investor shares returned –4.80%.1 In comparison, the total return of the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”), the fund’s benchmark, was –4.51% for the same period.2
Although we believe that one month is too brief a time frame to gauge accurately the performance of long-term investments, stocks generally declined in August 2010 amid intensifying investor concerns in a slowing economic environment.The fund produced returns that were roughly in line with its benchmark, as above-average results from the Focused Equity Strategy and U.S. Core Equity 130/30 Strategy were offset by lagging results from the U.S. Large Cap Equity Strategy.
The Fund’s Investment Approach
The fund seeks long-term capital appreciation.To pursue its goal, the fund normally invests at least 80% of its assets in equity securities of large cap companies, currently defined to be those companies with total market capitalizations of $5 billion or more at the time of purchase.The fund normally allocates its assets among multiple investment strategies, each employed by the fund’s investment adviser or its affiliates, that invest primarily in equity securities issued by large-cap companies. The fund is designed to provide exposure to various large-cap equity portfolio managers and investment strategies and styles, and uses tax-sensitive strategies to reduce the impact of federal and state income taxes on its after-tax returns.The fund apportions its assets among some or all of the following: the Large Cap Core Strategy, Large CapT ax-Sensitive Strategy, Focused Equity Strategy, U.S. Large Cap Equity Strategy, U.S. Core Equity 130/30 Strategy, Dynamic Large CapValue Strategy, Large Cap Growth Strategy and U.S. Large Cap Growth Strategy, all as more particularly described in the fund’s prospectus. The fund invests directly in securities or in other mutual funds advised by the fund’s investment adviser or its affiliates.
The fund’s investment adviser determines the investment strategies, sets the target allocations, monitors portfolio trading activity within the investment strategies and executes all purchases and sales of portfolio securities of the fund.
Economic Uncertainties Sparked Market Volatility
When the fund commenced operations on July 30, 2010, investors had grown worried about signs that the prevailing economic recovery might be losing momentum. Global economic confidence had been undermined in the spring and summer of 2010 by a sovereign debt crisis in Europe, in which Greece and other nations found themselves unable to finance heavy debt loads. Meanwhile, inflationary pressures in China led to higher short-term interest rates and other remedial measures, which investors worried might constrain a major engine of global growth. In the United States, investors became more cautious in light of persistently high unemployment and ongoing troubles in housing markets. As a result, large-cap U.S. stocks lost ground during August 2010.
Large-Cap Strategies Produced Mixed Results
The fund began operations fully invested in five underlying large-cap strategies: 25% of assets was invested in the Large Cap Core Strategy, 25% in the Large Cap Tax-Sensitive Strategy, 20% in the Focused Equity Strategy,
8
20% in the U.S. Large Cap Equity Strategy and 10% in the U.S. Core Equity 130/30 Strategy. In our judgment, these target allocations provided the fund with broad exposure to a variety of investment styles, large-cap market sectors and individual securities.
During August, two of the five strategies produced returns that were higher than the S&P 500 Index.The Focused Equity Strategy invests in approximately 25 to 30 companies that are considered by the portfolio manager to be positioned for long-term earnings growth. It combines a top-down assessment of broad economic, political and social trends with bottom-up, fundamental analysis of individual companies in the market sectors and industries identified as most attractive given the competitive landscape and business trends. The U.S. Core Equity 130/30 Strategy, implemented through the fund’s investments in BNY Mellon U.S. Core Equity 130/30 Fund, focuses on growth and value stocks of large-cap companies, establishing both long and short positions in stocks chosen through a disciplined investment process that combines computer modeling techniques, fundamental analysis and risk management.
However, the U.S. Large Cap Equity Strategy under-performed the S&P 500 Index in August.This strategy seeks investment opportunities in U.S. companies with fundamental strengths that indicate the potential for sustainable growth.The strategy’s approach is to build its portfolio from the bottom up through extensive fundamental research.
The remaining two strategies, the Large Cap Core Strategy and the Large Cap Tax-Sensitive Strategy, produced returns that roughly matched the S&P 500 Index.
Positioned for Further Recovery
Although the U.S. and worldwide economies have hit a rough patch, we do not expect a return to global recession.We believe that slower growth in the United States and Europe is likely to be balanced by more robust growth in the emerging markets. In our view, investors in a slow-growth environment are likely to favor large-cap companies with solid business fundamentals. In addition, we believe that the U.S. stock market may be poised for further gains if large companies begin to deploy some of the massive cash reserves on their balance sheets.
September 15, 2010
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all | |
of which are more fully described in the fund’s prospectus. | |
Return figures provided reflect the absorption of certain fund expenses by | |
BNY Mellon Fund Advisors pursuant to an agreement through January 1, | |
2012, at which time it may be extended, terminated or modified. Had | |
these expenses not been absorbed, the fund’s returns would have been lower. | |
The fund may use derivative instruments, such as options, futures and | |
options on futures and swaps.A small investment in derivatives could have | |
a potentially large impact on the fund’s performance.The use of derivatives | |
involves risks different from, or possibly greater than, the risks associated | |
with investing directly in the underlying assets. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. | |
2 | SOURCE: LIPPER INC. — Reflects monthly reinvestment of dividends |
and, where applicable, capital gain distributions.The Standard & Poor’s 500 | |
Composite Stock Price Index is a widely accepted, unmanaged index of | |
U.S. stock market performance. Investors cannot invest directly in any index. |
The Funds | 9 |
DISCUSSION OF FUND PERFORMANCE (continued)
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Brian C. Ferguson, Portfolio Manager
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Income Stock Fund’s Class M shares produced a total return of 3.44%, and its Investor shares produced a total return of 3.19%.1 The fund’s benchmark, the Russell 1000 Value Index, produced a total return of 4.96% for the same period.2
Stocks encountered heightened volatility late in the reporting period, and a market rally sputtered when investors grew concerned regarding a number of threats to global economic growth. The fund produced lower returns than its benchmark, mainly due to a bias toward larger, higher-quality companies at a time when smaller, more speculative stocks fared better.
The Fund’s Investment Approach
The fund seeks total return consisting of capital appreciation and income.To pursue its goal, the fund normally invests at least 80% of its assets in stocks.The fund seeks to focus on dividend-paying stocks and other investment techniques that produce income. We choose stocks through a disciplined investment process that combines quantitative modeling techniques, fundamental analysis and risk management.While we attempt to manage risks by diversifying broadly across companies and industries, the fund may at times overweight certain sectors in an attempt to earn higher yields. The fund may also use derivatives as a substitute for taking a position in an underlying asset, to increase returns or income, or as part of a hedging strategy.
Global Economic Concerns Intensified
The reporting period began in the midst of an economic recovery as improved manufacturing activity and an apparent bottoming of residential housing prices helped boost confidence among businesses, consumers and investors. The recovery appeared to gain additional traction during the first quarter of 2010, when modest employment gains suggested that stubbornly high unemployment might moderate.
In May, however, Europe was roiled by a sovereign debt crisis when Greece and other nations found themselves unable to finance heavy debt burdens, requiring intervention by the International Monetary Fund and the European Union. Robust economic growth in China sparked local inflationary pressures, and investors grew worried that remedial measures might dampen a major engine of global growth. Finally, in the United States, mixed data related to employment and the housing market kindled fears that economic headwinds might constrain already mild growth. Consequently, stocks gave back many of their previous gains.
Positioned for a Mild Recovery
The fund began the reporting period with an emphasis on market sectors and individual companies that appeared poised to thrive in the economic rebound. However, this investment bias led to some disappointing relative performers in the consumer discretionary and financials sectors.
In the financials sector, the fund faced disappointments in the banking industry. Bank of America and JPMorgan Chase & Co. suffered amid heightened regulatory uncer-
10
tainty, and Morgan Stanley was hurt by a decrease in mergers-and-acquisitions activity as the global economy weakened. In addition, underweighted exposure to real estate investment trusts (REITs) prevented the fund from participating in the industry’s relative strength. REITs had responded positively to investors’ more optimistic outlook regarding conditions in the commercial real estate market, a view we do not necessarily share.
Among consumer discretionary stocks, overweighted exposure to media companies dampened the fund’s results. We had established positions in content producers, such as advertising conglomerate Omnicom Group, which we believed would fare better than program distributors. However, content producers lagged in the sluggish economy.
The fund achieved more positive results in other market segments.The energy sector proved beneficial to results, as we favored growth-oriented oil producers such as Occidential Petroleum over integrated oil-and-gas companies, particularly ExxonMobil.The fund also benefited from a position in XTO Energy, which was acquired by ExxonMobil during the reporting period. In the telecommunications services sector, Windstream andVodafone Group advanced as investors turned their attention to stocks with higher dividend yields and consistently robust levels of free cash flow.
Weathering Bouts of Volatility
Although the U.S. and global economies have hit a rough patch, we do not expect a return to recession. Our conversations with senior executives at various companies indicate that businesses are generally optimistic, and they may be prepared to deploy some of the massive cash reserves on their balance sheets when current economic and regulatory uncertainty wanes. In addition, we believe equity valuations have become more attractive after recent bouts of weakness.
As of the reporting period’s end, we have increased the fund’s exposure to the telecommunications services sector through investments in AT&T and Verizon Communications, which we expect to benefit from expanding smartphone use and data traffic. Conversely, as valuations among information technology companies increased, we trimmed some of the fund’s better-performing holdings in the sector.
September 15, 2010
Please note, the position in any security highlighted with italicized typeface | |
was sold during the reporting period. | |
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all | |
of which are more fully described in the fund’s prospectus. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. | |
2 | SOURCE: LIPPER INC. — Reflects the reinvestment of dividends |
and, where applicable, capital gain distributions.The Russell 1000 Value | |
Index is an unmanaged index which measures the performance of those | |
Russell 1000 companies with lower price-to-book ratios and lower | |
forecasted growth values. Investors cannot invest directly in any index. |
The Funds | 11 |
FUND PERFORMANCE
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 1/1/85 | 3.44% | –1.51% | –0.86% | — |
Investor shares | 7/11/01 | 3.19% | –1.75% | — | 0.70% |
Russell 1000 Value Index†† | 9/30/00 | 4.96% | –1.69% | — | 1.84% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Income Stock Fund on 8/31/00 to a $10,000 investment made in the |
Russell 1000 Value Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund (and those of another CTF) were transferred to the fund. Please note that the performance of the fund’s Class |
M shares represents the performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the actual |
performance of the CTF the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the performance of |
the fund’s Class M shares thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore was not subject |
to certain investment restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher than those |
estimated prior to the conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The Index uses company price-to-book ratios and long-term |
growth rates to calculate a composite ranking, which is used to determine if a stock is “growth” or “value.” Unlike a mutual fund, the Index is not subject to charges, |
fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, |
is contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
12
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Stephen A. Mozur, Portfolio Manager
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Mid Cap Stock Fund’s Class M shares produced a total return of 8.49%, Investor shares returned 8.30% and Dreyfus Premier shares returned 7.43%.1 In comparison, the Standard & Poor’s MidCap 400 Index (“S&P 400 Index”), the fund’s benchmark, produced a total return of 11.87% for the same period.2
After a sustained rally over the reporting period’s first half, stock prices came under pressure from renewed global economic uncertainty during the second half. The fund produced lower returns than its benchmark, mainly due to shortfalls later in the reporting period, when a constructive investment posture magnified general market weakness.
The Fund’s Investment Approach
The fund seeks capital appreciation by normally investing at least 80% of its assets in stocks of domestic companies with market capitalizations generally in the range of companies included in the S&P 400 Index at the time of purchase. The fund invests in growth and value stocks, which are chosen through a disciplined investment process that combines computer modeling techniques, fundamental analysis and risk management. Based on fundamental analysis, the investment adviser generally selects the most attractive securities, drawing on a variety of sources, including internal as well as Wall Street research, and company management. Finally, we manage risk by diversifying across companies and industries. Our goal is to keep those risks at levels that are similar to those of the S&P 400 Index.
Renewed Economic Uncertainty Dampened Earlier Gains
From September 2009 through April 2010, U.S. companies generally issued strong earnings reports and offered positive guidance on future financial results in a recovering global economic environment, driving stock prices broadly higher. However, beginning in early May 2010, investor confidence was challenged by a series of new global and domestic economic concerns. These included a sovereign debt crisis that threatened to spread from Greece to other members of the European Union, rising inflationary pressures in China, ballooning government budget deficits through much of the developed world and concerns that the U.S. recovery could be stalled in light of stubbornly high unemployment. As a result, stock prices fell broadly in the spring of 2010, and market volatility generally persisted through the summer. Midcap stocks generally outperformed their large- and small-cap counterparts in this environment.
Second Half Weakness Offset First Half Gains
We had positioned the fund for economic recovery, helping it to participate fully in prevailing market rallies over the reporting period’s first half. However, this positioning detracted from relative performance when the market responded negatively to the unfolding economic slowdown over the second half of the reporting period.
The market correction weighed particularly heavy on the fund’s financial and consumer discretionary holdings. In the financials sector, insurance companies exposed to volatile equity and housing markets lagged, including Hartford Financial Services, CNO Financial Group and MGIC Investment Corp. In addition, the
The Funds | 13 |
DISCUSSION OF FUND PERFORMANCE (continued)
portfolio did not hold real estate-oriented companies such as SL Green, which gained value for the benchmark as debt markets thawed.
Consumer discretionary positions in housing-related companies such as Toll Brothers and MDC Holdings underperformed market averages. Leisure and gaming firms Royal Caribbean Cruises and Boyd Gaming Corp. were under pressure as improving prospects for consumer spending were dashed by the economic slowdown and market correction. Finally, the portfolio lost ground in television innovatorTiVo when an appeals court agreed to rehear a patent case regarding the company’s DVR technology.
On a more positive note, the fund scored successes during the reporting period in the materials and industrials sectors. The fund’s materials investments were led by iron ore company Cliffs Natural Resources, which advanced strongly amid robust demand and higher pricing. Building materials company Louisiana-Pacific Corp. rose due to improved prospects for pricing of its oriented strand board product. In the industrials sector, trucking-related companies Cummins and WABCO Holdings gained value during an upswing in the truck production cycle. Mining equipment maker Joy Global and a number of other capital goods-oriented companies also added value, as pent-up demand for heavy equipment helped boost sales and revenues.
Maintaining a Constructive Investment Posture
Although the U.S. economy clearly has hit a soft patch, we do not expect a return to recessionary conditions. Consequently, we have maintained the fund’s emphasis on growth-oriented companies that we believe should fare well in the middle stages of an economic recovery, including those in the energy and information technology sectors. We also have found opportunities among financial companies that have rebuilt their balance sheets and are poised to increase lending activity as confidence returns to the banking industry. We have found fewer stocks meeting our investment criteria in the traditionally defensive utilities and consumer staples sectors.
September 15, 2010
Please note: the position in any security highlighted with italicized typeface | |
was sold during the reporting period. | |
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all of | |
which are more fully described in the fund’s prospectus. | |
Stocks of small- and/or midcap companies often experience sharper price | |
fluctuations than stocks of large-cap companies. | |
1 | Total return includes reinvestment of dividends and any capital gains paid, and |
does not take into consideration the contingent deferred sales charges imposed | |
on redemptions in the case of Premier shares. Had these charges been reflected, | |
returns would have been lower. Past performance is no guarantee of future | |
results. Share price and investment return fluctuate such that upon redemption, | |
fund shares may be worth more or less than their original cost. | |
2 | SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where |
applicable, capital gain distributions.The Standard & Poor’s MidCap 400 | |
Index is a widely accepted, unmanaged total return index measuring the | |
performance of the midsize company segment of the U.S. stock market. Index | |
return does not reflect the fees and expenses associated with operating a mutual | |
fund. Investors cannot invest directly in any index. |
14
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Mid Cap Stock Fund Class M shares and the Standard & Poor’s MidCap 400 Index
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 1/1/85 | 8.49% | 0.51% | 2.53% | — |
Investor shares | 7/11/01 | 8.30% | 0.28% | — | 3.83% |
Dreyfus Premier shares | |||||
with applicable redemption †† | 9/6/02 | 3.43% | –0.72% | — | 5.47% |
without redemption | 9/6/02 | 7.43% | –0.47% | — | 5.47% |
Standard & Poor’s MidCap 400 Index††† | 9/30/00 | 11.87% | 1.73% | — | 4.31% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Mid Cap Stock Fund on 8/31/00 to a $10,000 investment made in |
the Standard & Poor’s MidCap 400 Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund were transferred to the fund. Please note that the performance of the fund’s Class M shares represents the |
performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the actual performance of the CTF |
the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the performance of the fund’s Class M shares |
thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore was not subject to certain investment |
restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher than those estimated prior to the |
conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares and |
Dreyfus Premier shares will vary from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is a widely |
accepted, unmanaged total return index measuring the performance of the midsize company segment of the U.S. stock market. Unlike a mutual fund, the Index is not |
subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense |
reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
†† The maximum contingent deferred sales charge for Dreyfus Premier shares is 4%.After six years Dreyfus Premier shares convert to Investor shares. |
††† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
The Funds | 15 |
DISCUSSION OF FUND PERFORMANCE (continued)
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Stephen A. Mozur, Portfolio Manager
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Small Cap Stock Fund’s Class M shares produced a total return of 4.45%, and its Investor shares produced a total return of 4.31%.1 In comparison, the fund’s benchmark, the Standard & Poor’s SmallCap 600 Index (the “Index”), produced a total return of 7.81% for the same period.2
Small-cap stocks encountered heightened volatility over the reporting period’s second half, when investors grew concerned regarding a number of threats to economic growth. The fund produced lower returns than its benchmark, mainly due to a relatively defensive investment stance over the first half of the reporting period.
The Fund’s Investment Approach
The fund seeks capital appreciation.To pursue its goal, the fund normally invests at least 80% of its assets in stocks of small capitalization companies whose market capitalizations generally are in the range of companies included in the Index at the time of purchase.We choose growth and value stocks using a disciplined process that combines computer modeling, fundamental analysis and risk man-agement.We use a computer model to rank stocks within an industry or sector based on valuation, earnings growth and the company’s financial profile.We examine the fundamentals of the higher-ranked securities, and we select those we believe to be the most attractive. We diversify across companies and industries to manage sector and industry risks, and we attempt to keep those risks at levels that are similar to those of the Index.
Global Economic Concerns Intensified
The reporting period began in the midst of an economic recovery as improved manufacturing activity helped boost confidence among businesses, consumers and investors. The recovery appeared to gain additional traction early in 2010, when employment gains indicated that stubbornly high unemployment might moderate.
In May, however, several developments threatened the economic rebound. Europe was roiled by a sovereign debt crisis when Greece found itself unable to finance a heavy debt burden. Robust economic growth in China sparked local inflationary pressures, and investors worried that remedial measures might dampen a major engine of global growth. In the United States, mixed employment and the housing data suggested that economic headwinds might constrain already mild growth. Consequently, stocks gave back many of their previous gains.
Defensive Bias Dampened Relative Performance
Early in the reporting period, a small-cap market rally was led by companies exhibiting lower-quality characteristics, including low market capitalizations, low stock prices, low returns on equity, high debt levels, high sensitivity to market fluctuations and few or no earnings or dividends. In contrast, the kinds of higher-quality companies in which the fund invests lagged market averages.
The fund encountered a number of disappointments in the consumer discretionary sector. Television technology company TiVo lost value after a negative legal ruling promised to prolong ongoing litigation. Casino operator Boyd Gaming Corp. declined amid continued weakness in local gaming markets. Home builder KB Home fell due to ongoing difficulties in housing mar-
16
kets. In the utilities sector, alternative energy company EnerNOC slid as a result of sales growth and valuation concerns. Among consumer staples holdings, grocery chain SuperValue declined as weak sales trends and market share losses continued, causing us to eliminate it from the portfolio.
Our stock selection strategy and overweighted exposure produced more favorable results in the information technology sector, where RiverbedTechnology nearly doubled in value due to increasing demand for data center infrastructure and network optimization services. GSI Commerce gained value amid strong demand for e-commerce solutions by online retailers. Starent Networks, Omniture and CyberSource were acquired by larger companies at premiums to their then-prevailing stock prices.
In the materials sector, specialty chemicals producer Cytec Industries saw earnings rebound as demand improved for their aerospace composites and the company cut costs in its specialty coatings business.Another specialty chemicals maker, Ferro, reported better-than-expected quarterly results. Titanium producer RTI International Metals was boosted by greater investor optimism regarding commercial aircraft production. Allied Nevada Gold advanced along with gold prices as investors reacted to economic and geopolitical uncertainties. Among industrial companies, AAR Corp and BE Aerospace benefited from increased air travel and a new business cycle for aftermarket aircraft parts, respectively.
A More Constructive Investment Posture
Although the U.S. and global economies have hit a rough patch, we do not expect a return to recession. Consequently, we have become less defensive in our portfolio construction, sector allocation and stock selection strategies. As of the reporting period’s end, we have focused on companies with improving fundamentals that we believe tend to fare well in the early stages of economic cycles.We have found a number of opportunities in the energy and industrials sectors, and among regional banks in the financials sector.We have found fewer opportunities in the utilities and consumer staples sectors.
September 15, 2010
Please note: the position in any security highlighted with italicized typeface | |
was sold during the reporting period. | |
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all | |
of which are more fully described in the fund’s prospectus. | |
Stocks of small- and/or midcap companies often experience sharper price | |
fluctuations than stocks of large-cap companies. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. Return figures provided reflect | |
the absorption of certain fund expenses by BNY Mellon Fund Advisors | |
pursuant to an agreement in effect through September 30, 2010, at which | |
time it may be extended, terminated or modified. Had these expenses not | |
been absorbed, the fund’s returns would have been lower. | |
2 | SOURCE: LIPPER INC. — Reflects the reinvestment of dividends |
and, where applicable, capital gain distributions.The Standard & Poor’s | |
SmallCap 600 Index is a broad-based index and a widely accepted, | |
unmanaged index of overall small-cap stock market performance.The index | |
does not take into account fees and expenses to which the fund is subject. | |
Investors cannot invest directly in any index. |
The Funds | 17 |
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Small Cap Stock Fund Class M shares and the Standard & Poor’s SmallCap 600 Index
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 1/1/98 | 4.45% | –3.15% | 1.36% | — |
Investor shares | 7/11/01 | 4.31% | –3.28% | — | 2.30% |
Standard & Poor’s SmallCap 600 Index†† | 9/30/00 | 7.81% | –0.38% | — | 5.09% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Small Cap Stock Fund on 8/31/00 to a $10,000 investment made |
the Standard & Poor’s SmallCap 600 Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund were transferred to the fund. Please note that the performance of the fund’s Class M shares represents the |
performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the actual performance of the CTF |
the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the performance of the fund’s Class M shares |
thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore was not subject to certain investment |
restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher than those estimated prior to the |
conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is a widely accepted, unmanaged index of overall |
small-cap stock market performance. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. |
Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and |
elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
18
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Sean P. Fitzgibbon and Jeffrey D. McGrew, Portfolio Managers
Market and Fund Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon U.S. Core Equity 130/30 Fund’s Class M shares produced a total return of 8.53%, and Investor shares returned 8.20%.1 In comparison, the total return of the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”), the fund’s benchmark, was 4.93%.2
After rallying over much of the reporting period, stocks declined over the spring and summer of 2010 amid several global and domestic economic setbacks. The fund produced higher returns than its benchmark, primarily due to strong stock selections in eight of the S&P 500 Index’s 10 market sectors.
The Fund’s Investment Approach
The fund seeks capital appreciation, normally investing at least 80% of its assets in stocks of large-cap compa-nies.We choose stocks through a disciplined investment process that uses computer modeling techniques to identify and rank companies based on value, growth and other financial characteristics. The portfolio managers supplement and confirm this information using fundamental analysis, and generally buy “long” the most attractive of the higher ranked securities and sell “short” those stocks identified by the computer model and fundamental analysis as being likely to underperform. Normally, up to 130% of the fund’s assets will be in long positions, and approximately 30% of the fund’s assets will be in short positions. However, the fund’s short positions may range in value from approximately 25% to 35 % of the fund’s assets.We also attempt to mitigate risks by diversifying the fund’s investments across companies and industries, maintaining weightings and risk characteristics that generally are similar to those of the S&P 500 Index.
Economic Concerns Outweighed Corporate Performance
Over the first half of the reporting period, the U.S. economy continued to recover from the Great Recession and financial crisis. Most U.S. corporations posted stronger earnings and revenues, propelling stock prices higher. However, in May 2010 a sovereign debt crisis in Greece threatened to spread to other members of the European Union. Investor confidence was further undermined by rising inflationary pressures in China, as well as ongoing troubles in U.S. housing markets, persistently high levels of U.S. unemployment and a major oil spill in the Gulf of Mexico.As a result, stocks gave back a substantial portion of their earlier gains over the reporting period’s second half.
Outperforming Across a Wide Range of Sectors
The fund received strong contributions to relative performance from the information technology sector, as corporations increasingly turned to “cloud computing” for their technology needs.This secular trend benefited long positions in Informatica, NetApp, EMC,Teradata, VMWare and Sybase, the last of which was acquired by another company at a premium to its then-prevailing stock price. Successful short positions included Palm,
Alcatel-Lucent and Western Digital Corp., which we regarded as overvalued relative to their fundamentals.
In the energy sector, the fund achieved success through a focus on exploration-and-production firms over integrated oil companies. The fund particularly benefited
The Funds | 19 |
DISCUSSION OF FUND PERFORMANCE (continued)
from a lack of exposure to industry giant ExxonMobil, which lagged due to concerns about future growth prospects. Instead, the fund achieved better results with Anadarko Petroleum, which we believed had been punished more severely than warranted after the Gulf oil spill, and Newfield Exploration, which owns attractive assets with strong growth potential. The fund also benefited from its long position in XTO Energy, which was acquired by ExxonMobil during the reporting period.
In the health care sector, the fund enhanced returns through investments in Amylin Pharmaceuticals, whose new diabetes drug is moving toward regulatory approval, and Human Genome Sciences, which is developing a promising treatment for lupus. Companies that stand to benefit from greater adoption of generic drugs also fared well, including drug delivery specialist Hospira and distributor AmerisourceBergen.
The fund’s most significant disappointments were concentrated in the financials sector, where long positions in JPMorgan Chase & Co. and Bank of America lagged despite solid business franchises with strong growth potential. Indeed, we added to the fund’s holdings of Bank of America during periods of price weakness. Citigroup detracted from the fund’s relative performance early in the reporting period, when we sold the fund’s position due to company-specific issues.
The fund suffered a mild decline in the telecommunications services sector, where positive results from industry giant AT&T and well-below benchmark returns from short positions, including Verizon Communications, were nonetheless outpaced by stellar returns from some of the smaller wireless companies.
Remaining Cautiously Opportunistic
We believe the market’s recent dip has created attractive opportunities in stocks with good growth potential. Given our view that the U.S. economy appears poised for continued, albeit slow, recovery, we have maintained the fund’s opportunistic, valuation-conscious and risk-conscious investment approach.
September 15, 2010
Please note, the position in any security highlighted with italicized typeface | |
was sold during the reporting period. | |
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all of | |
which are more fully described in the fund’s prospectus. | |
The use of leverage may magnify the fund’s gains or losses. For derivatives | |
with a leveraging component, adverse changes in the value or level of the | |
underlying asset can result in a loss that is much greater than the original | |
investment in the derivative. | |
Short sales involve selling a security the fund does not own in anticipation that | |
the security’s price will decline. Short sales may involve substantial risk and | |
leverage, and expose the fund to the risk that it will be required to buy the | |
security sold short at a time when the security has appreciated in value, thus | |
resulting in a loss to the fund. Short positions in stocks involve more risk than | |
long positions in stocks because the maximum sustainable loss on a stock | |
purchased is limited to the amount paid for the stock plus the transaction costs, | |
whereas there is no maximum attainable price on the shorted stock. In theory, | |
stocks sold short have unlimited risk. It is possible that the market value of | |
securities the fund holds in long positions will decline at the same time that | |
the market value of the secruities in the fund has shold short increases, thereby | |
increasing the fund’s potential volatility. Leveraging occurs when the fund | |
increases its assets available for investment using borrowing or similar | |
transactions. Short sales effectively leverage the fund’s assets.The use of leverage | |
may magnify the fund’s gains or losses. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and investment | |
return fluctuate such that upon redemption, fund shares may be worth more or | |
less than their original cost. | |
2 | SOURCE: LIPPER INC. — Reflects the monthly reinvestment of |
dividends and, where applicable, capital gain distributions.The Standard & | |
Poor’s 500 Composite Stock Price Index is a widely accepted, unmanaged | |
index of U.S. stock market performance. Index return does not reflect fees and | |
expenses associated with operating a mutual fund. Investors cannot invest | |
directly in any index. |
20
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon U.S. Core Equity 130/30 Fund Class M shares and Investor shares and the Standard & Poor’s 500 Composite Stock Price Index
Average Annual Total Returns as of 8/31/10 | |||
Inception | From | ||
Date | 1 Year | Inception | |
Class M shares | 8/1/07 | 8.53% | –7.02% |
Investor shares | 8/1/07 | 8.20% | –7.29% |
Standard & Poor’s 500 | |||
Composite Stock Price Index†† | 7/31/07 | 4.93% | –7.98% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares and Investor shares of BNY Mellon U.S. Core Equity 130/30 Fund on 8/1/07 |
(inception date) to a $10,000 investment made in the Standard & Poor’s 500 Composite Stock Price Index (the “Index”) on that date.All dividends and capital |
gain distributions are reinvested. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for all share classes.The Index is a widely accepted, unmanaged |
index of U.S. stock market performance. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any |
index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the |
prospectus and elsewhere in this report. |
†† For comparative purposes, the value of the Index as of 7/31/07 is used as the beginning value on 8/1/07 (the inception date for Class M shares). |
The Funds | 21 |
DISCUSSION OF FUND PERFORMANCE (continued)
DISCUSSION OF
FUND PERFORMANCE
For the period from October 1, 2009, through August 31, 2010, as provided by Irene D. O’Neill, Portfolio Manager
Fund and Market Performance Overview
For the period from the commencement of fund operations on September 30, 2009, through August 31, 2010, BNY Mellon Focused Equity Opportunities Fund’s Class M shares produced a total return of 1.01%, and Investor shares returned 0.75%.1 In comparison, the total return of the Russell 1000 Index (the “Index”), the fund’s benchmark, was 1.43% for the same period.2
Renewed economic uncertainty generally undermined stock prices over the reporting period’s second half, offsetting gains achieved during a market rally stemming from expectations of continued recovery during the first half. The fund produced slightly lower returns than its benchmark, primarily due to shortfalls among some of its concentrated holdings in the consumer discretionary, financials and consumer staples sectors. The fund achieved better results in the materials, technology and utilities sectors.
The Fund’s Investment Approach
The fund seeks capital appreciation.To pursue its goal, the fund normally invests at least 80% of its assets in equity securities.We begin with a top-down assessment of broad economic, political and social trends. We strive to determine those sectors and industries most likely to benefit from identified trends, focusing on areas we believe present the most attractive growth outlook. Within those sectors and industries, we then employ a bottom-up, fundamental approach to find individual companies with:
Unrecognized or underestimated earnings power
Sustainable revenues and cash flow
Positive operational or financial catalysts
Attractive valuations based on growth prospects
Strong or improving financial conditions
Finally, we select for investment the 25 to 30 best opportunities from the companies meeting these criteria.
Economic Uncertainties Derailed a Market Rally
From October 2009 through April 2010, strong earnings reports, rising manufacturing activity and other evidence of continued economic recovery drove most stocks higher in a sustained market rally that began earlier in 2009.As the rally progressed, market strength began to broaden from smaller, more speculative stocks that had been severely punished during the downturn to well-established, large-cap companies with sound business fundamentals.
However, beginning in early May 2010, the market’s advance was interrupted by signs that the global recovery might be losing momentum. Global economic confidence was undermined by a sovereign debt crisis in Europe and inflationary pressures in China. In the United States, investors became more cautious in light of persistently high levels of unemployment, ongoing troubles in housing markets and the catastrophic oil spill in the Gulf of Mexico. As a result, large-cap U.S. stocks lost all of the ground they had gained earlier in 2010.
Securities Selections Produced Mixed Results
Although the fund outpaced its benchmark over its first five months of operations, heightened market volatility in the spring and summer of 2010 caused its concentrated portfolio to lag market averages for the reporting period overall. In the consumer discretionary sector, slot machine maker International Game Technology was hurt by fear
22
that an uncertain outlook for vacation spending would cause casino operators to curtail spending on new gaming equipment. Among financial companies, mortgage insurer Assured Guaranty and investment bank Morgan Stanley suffered amid concerns regarding U.S. financial regulatory reforms and a weak credit environment. In the consumer staples sector, tobacco giant Philip Morris International and global cosmetics seller Avon Products were impacted by fear that currency volatility and austerity measures in Europe would hit their earnings.
The fund achieved above-average results in other market sectors. In the materials sector, iron ore producer Cliffs Natural Resources benefited from a rising commodity price amid robust demand from China.Among industrial companies, heavy equipment manufacturer Caterpillar advanced due to strong sales in the emerging markets and operating strategies established during the downturn that positioned the company to prosper in the recovery.The fund’s investments in the technology sector were bolstered by electronics innovator Apple, which continued to impress investors and consumers with new products, and Salesforce.com, which has benefited from a shift by businesses to “cloud computing.” In the utilities sector, power company Questar Corp. unlocked shareholder value by spinning off its energy exploration-and-production business unit.
Focused on Secular Growth Opportunities
Although the U.S. and global economies have hit a rough patch, we do not expect a return to recession.We believe slower growth in the United States and Europe is likely to be balanced by more robust growth in the emerging markets. However, in this slower growth environment, we have reduced the fund’s focus on companies that tend to do well during periods of cyclical growth. Instead, we have intensified our emphasis on companies that appear poised to benefit from catalysts for secular growth, such as new products, developing technological trends and a presence in the world’s faster growing markets.As of the end of the reporting period, the fund held approximately 30 stocks that, in our judgment, meet these investment criteria.
September 15, 2010
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all | |
of which are more fully described in the fund’s prospectus. | |
The fund is non-diversified, which means that a relatively high percentage | |
of the fund’s assets may be invested in a limited number of issuers. | |
Therefore, the fund’s performance may be more vulnerable to changes in the | |
market value of a single issuer or group of issuers and more susceptible to | |
risks associated with a single economic, political or regulatory occurrence | |
than a diversified fund. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost.The fund’s returns reflect the | |
absorption of certain fund expenses by BNY Mellon Fund Advisers | |
pursuant to an agreement in effect through January 1, 2011, at which time | |
it may be extended, terminated or modified. Had these expenses not been | |
absorbed, the fund’s returns would have been lower. | |
2 | SOURCE: LIPPER INC. — Reflects the monthly reinvestment of |
dividends and, where applicable, capital gain distributions.The Russell | |
1000 Index is a widely accepted, unmanaged index of U.S. stock market | |
performance. Index return does not reflect fees and expenses associated with | |
operating a mutual fund. Investors cannot invest directly in any index. |
The Funds | 23 |
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Focused Equity Opportunities Fund Class M shares and Investor shares and the Russell 1000 Index
Actual Aggregate Total Returns as of 8/31/10 | ||
Inception | From | |
Date | Inception | |
Class M shares | 9/30/09 | 1.01% |
Investor shares | 9/30/09 | 0.75% |
Russell 1000 Index | 9/30/09 | 1.43% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares and Investor shares of BNY Mellon Focused Equity Opportunities Fund on 9/30/09 |
(inception date) to a $10,000 investment made in the Russell 1000 Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for all share classes.The Index is an unmanaged index which |
measures the performance of the large-cap segment of the U.S. equity universe. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. |
Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the |
Expenses section of the prospectus and elsewhere in this report. |
24
DISCUSSION OF
FUND PERFORMANCE
For the period of September 30, 2009, through August 31, 2010, as provided by John M. Chambers, Portfolio Manager
Fund and Market Performance Overview
For the period from the commencement of fund operations on September 30, 2009, through August 31, 2010, BNY Mellon Small/Mid Cap Stock Fund’s Class M shares produced a total return of 9.65%, and Investor shares returned 9.34%.1 In comparison, the Russell 2500 Index (the “Index”), the fund’s benchmark, produced a total return of 4.03% for the same period.2
After a sustained rally over the reporting period’s first half, stock prices came under pressure during the second half from renewed global economic uncertainty. The fund produced higher returns than its benchmark, mainly due to the success of our stock selection process, which emphasized growth-oriented companies poised to flourish in a recovering economy.
The Fund’s Investment Approach
The fund seeks capital appreciation.To pursue its goal, the fund normally invests at least 80% of its assets in equity securities of small-cap and midcap companies with total market capitalizations of between $200 million and $7 billion at the time of investment.The fund invests in growth and value stocks, which are chosen through a disciplined investment process that combines computer modeling techniques, fundamental analysis and risk management to identify and rank stocks within an industry or sector based on several characteristics, including value, growth and the company’s financial health. Using fundamental analysis, the investment adviser generally selects the most attractive securities. Finally, we seek to manage risk by diversifying across companies and industries.The fund is structured so that its sector weightings and risk ch aracteristics are generally similar to those of the Russell 2500 Index.
Renewed Economic Uncertainty Dampened Earlier Gains
From October 2009 through April 2010, U.S. companies generally issued strong earnings reports and offered positive guidance on future financial results in a recovering global economic environment, driving stock prices broadly higher. However, beginning in early May 2010, investor confidence was challenged by a series of new global and domestic economic concerns. These included a sovereign debt crisis that threatened to spread from Greece to other members of the European Union, rising inflationary pressures in China, ballooning government budget deficits through much of the developed world and concerns that the U.S. recovery could be stalled in light of stubbornly high unemployment. As a result, stock prices fell broadly in the spring of 2010, and market volatility generally persisted through the summer.
Small- and midcap stocks generally outperformed their large-cap counterparts in this environment, both due to stronger gains during the rally early in the reporting period and their relative lack of exposure over the second half to economic concerns affecting some overseas markets.
Growth-Oriented Bias Bolstered Fund Performance
The fund received strongly positive contributions to performance from the growth-oriented technology sector. Rising demand for high-bandwidth wireless
The Funds | 25 |
DISCUSSION OF FUND PERFORMANCE (continued)
applications, such as high-definition video, helped boost sales and earnings for well-positioned communications equipment makers such as F5 Networks, Riverbed Technology and Aruba Networks. The growth of the Internet also bolstered a number of software developers, including ArcSight, Sourcefire and Fortinet. Conversely, the fund benefited from underweighted exposure to semiconductor companies.
In the industrials sector, winners included machinery producers, such as WABCO Holdings, ArvinMeritor, Cummins and Navistar International. These companies benefited from the release of pent-up demand for trucks in the recovering economy. Air carriers such as UAL and Continental Airlines achieved higher earnings through improved capacity utilization.Aircraft parts producers BEA Aerospace and Goodrich also fared well as airlines sought to get more productive use from existing equipment.
The fund also achieved strong relative results in the health care sector, where mergers-and-acquisitions activity enhanced the value of newly acquired companies such as hospice operator Odyssey HealthCare and cardiac stent maker ev3. In addition, biotechnology firm Human Genome Sciences advanced amid takeover speculation as large pharmaceutical companies sought to buy smaller companies with promising drugs under development.
Disappointments during the reporting period included underweighted exposure to real estate investment trusts (REITs) and insurance companies, which gained value despite persistent concerns surrounding the real estate market and insurance pricing pressures, respectively. Moreover, one of the fund’s few REIT holdings, Felcor Lodging Trust, missed analysts’ earnings targets, and mortgage insurer Assured Guaranty failed to respond to better credit conditions in the housing market. Underweighted exposure to the utilities sector also detracted mildly from the fund’s relative performance.
Maintaining a Constructive Investment Posture
Although the U.S. economy clearly has hit a soft patch, we do not expect a return to recessionary conditions. Consequently, we have maintained the fund’s emphasis on growth-oriented companies we expect to fare well in the middle stages of an economic recovery, including those in the technology, industrials and consumer discretionary sectors. We have found fewer opportunities in the financials and utilities sectors. As of the reporting period’s end, the fund’s holdings were divided roughly equally between small-cap and midcap companies.
September 15, 2010
Please note: the position in any security highlighted with italicized typeface | |
was sold during the reporting period. | |
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all of | |
which are more fully described in the fund’s prospectus. | |
Stocks of small- and/or midcap companies often experience sharper price | |
fluctuations than stocks of large-cap companies. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and investment | |
return fluctuate such that upon redemption, fund shares may be worth more or | |
less than their original cost. Return figures provided reflect the absorption of | |
certain fund expenses by BNY Mellon Fund Advisors pursuant to an | |
agreement in effect through January 1, 2011, at which time it may be | |
extended, terminated or modified. Had these expenses not been absorbed, the | |
fund’s returns would have been lower. | |
Part of the fund’s recent performance is attributable to positive returns from its | |
initial public offering (IPO) investments.There can be no guarantee that IPOs | |
will have or continue to have a positive effect on fund performance. Currently, | |
the fund is relatively small in asset size. IPOs tend to have a reduced effect on | |
performance as a fund’s asset base grows. | |
2 | SOURCE: BLOOMBERG, LP. — Reflects the reinvestment of dividends |
and, where applicable, capital gain distributions.The Russell 2500 Index is a | |
widely accepted, unmanaged index, which measures the performance of those | |
Russell 2500 companies with lower price-to-book ratios and lower forecasted | |
growth value. Investors cannot invest directly in any index. |
26
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Small/MidCap Fund Class M shares and Investor shares and the Russell 2500 Index
Actual Aggregate Total Returns as of 8/31/10 | ||
Inception | From | |
Date | Inception | |
Class M shares | 9/30/09 | 9.65% |
Investor shares | 9/30/09 | 9.34% |
Russell 2500 Index | 9/30/09 | 4.03% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
Part of the fund’s recent performance is attributable to positive returns from its initial public offering (IPO) investments.There can be no guarantee that IPOs will |
have or continue to have a positive effect on fund performance. Currently, the fund is relatively small in asset size. IPOs tend to have a reduced effect on performance |
as a fund’s asset base grows. |
The above graph compares a $10,000 investment made in Class M shares and Investor shares of BNY Mellon Small/MidCap Fund on 9/30/09 (inception date) |
to a $10,000 investment made in the Russell 2500 Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for all share classes.The Index is an unmanaged index designed to |
track the performance of small- to mid-cap U.S. stocks. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest |
directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Expenses section of the |
prospectus and elsewhere in this report. |
The Funds | 27 |
DISCUSSION OF FUND PERFORMANCE (continued)
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by D. Kirk Henry, Sean P. Fitzgibbon, and Mark A. Bogar, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon International Fund’s Class M shares produced a total return of –5.07%, and Investor shares produced a total return of –5.26%.1 In comparison, the fund’s benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Index (the “MSCI EAFE Index”), produced a total return of –2.34% for the same period.2
International stocks declined during the reporting period amid intensifying economic concerns.The fund produced lower returns than its benchmark, primarily due to shortfalls in Australia and the energy sector.
The Fund’s Investment Approach
The fund seeks long-term capital growth.To pursue this goal, the fund normally invests at least 65% of its total assets in equity securities of foreign issuers.
The fund allocates its assets between a core investment style and a value investment style at the discretion of the investment adviser.The fund is not managed to a specific target duration between these investment styles. However, under normal conditions, at least 30% of the fund’s assets will be invested in each of the core and value investment styles. Pursuant to the core investment style, under normal circumstances, at least 80% of the fund’s cash inflows allocated to this style are invested in equity securities of companies located in the foreign countries represented in the MSCI EAFE Index and Canada.
The fund will continue to invest in stocks that appear to be undervalued (as measured by their price/earnings ratios), but stocks purchased pursuant to the core investment style may have value and/or growth characteristics. The core investment style portfolio manager employs a “bottom-up” investment approach, which emphasizes individual stock selection.The core investment style stock selection process is designed to produce a diversified portfolio that, relative to the MSCI EAFE Index, has a below-average price/earnings ratio and an above-average earnings growth trend.
The fund’s investment approach for the portion of the fund using the value-oriented investment style is research-driven and risk-averse.When selecting stocks, we identify potential investments through valuation screening and extensive fundamental research. Emphasizing individual stock selection over economic or industry trends, the fund focuses on three key factors: value, business health and business momentum.
International Equities Declined in Struggling Economy
Robust economic growth in the emerging markets supported global manufacturing activity early in the reporting period, fueling a global economic recovery. However, investor sentiment deteriorated in 2010 due to a sovereign debt crisis in Europe, where Greece and other nations found themselves unable to finance heavy debt loads. In addition, global investors worried that efforts to forestall inflationary pressures in China might dampen economic growth in Asia, an appreciating currency hurt exports in Japan and high unemployment levels weighed on the United States. Losses for U.S. residents were compounded by falling currency exchange rates relative to the U.S. dollar in most major markets except Japan.
Stock Selection Dampened Fund Results
The fund’s underweighted position inAustralia hurt its relative performance, as did its underweighted exposure to materials producers BHP Billiton and Rio Tinto. The
28
fund’s holding in Nufarm, an Australian agricultural chemical group that manufactures products such as weed killer, underperformed due to excess industry supply and a poor regional planting season. In Finland, telephone handset manufacturer Nokia undermined the fund’s relative performance when the company announced disappointing quarterly earnings. From a sector viewpoint, the fund’s energy holdings lagged their respective benchmark components, due to weakness in United Kingdom-based oil giant BP, France’s Total, Italian refiner Saras and Japan’s INPEX. Consumer staples stocks also generally hurt relative performance, as Japanese conglomerate Matsumotokiyoshi Holdings and Holland’s Unilever disappointed, and the fund held no exposure to better performers such as SABMiller.
The fund achieved better results in Switzerland, where pharmaceutical developer Novartis and specialty chemicals company Clariant benefited from a weaker euro. The fund also benefited from underweighted exposure to Swiss financial companies, which declined along with European banks.The fund scored a number of successes in Hong Kong—including Hutchison Whampoa and Johnson Electric Holdings—amid strong regional growth in Asia. Similarly, financial companies in Hong Kong prospered due to their focus on Asia.
The financials sector represented the fund’s top performing industry group, as we largely avoided troubled European banks and, later in the reporting period, invested in what we believed were attractively valued Japanese banks. The telecommunications services sector also produced above-average results, due to an emphasis on the United Kingdom’s Vodafone Group and Germany’s Deutsche Telekom, along with underweighted exposure to Spain’s Telefonica.
Finding Opportunities in Volatile Markets
As of the reporting period’s end, international equity valuations have moderated to more reasonable levels, especially in Europe. Although near-term prospects for stocks in other regions of the world also remain uncertain, we continue to be optimistic regarding the long-term growth potential of businesses in a number of regional markets. Indeed, we would regard any further pullbacks as opportunities to purchase the stocks of fundamentally strong companies at more attractive prices.
September 15, 2010
Please note, the position in any security highlighted with italicized typeface | |
was sold during the reporting period. | |
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all | |
of which are more fully described in the fund’s prospectus. | |
The portfolio’s performance will be influenced by political, social and | |
economic factors affecting investments in foreign companies. Special risks | |
associated with investments in foreign companies include exposure to | |
currency fluctuations, less liquidity, less developed or less efficient trading | |
markets, lack of comprehensive company information, political instability | |
and differing auditing and legal standards.These risks are enhanced in | |
emerging markets countries. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. | |
2 | SOURCE: LIPPER INC.— Reflects reinvestment of net dividends and, |
where applicable, capital gain distributions.The Morgan Stanley Capital | |
International Europe,Australasia, Far East (MSCI EAFE) Index is an | |
unmanaged index composed of a sample of companies representative of the | |
market structure of European and Pacific Basin countries. Index return does | |
not reflect fees and expenses associated with operating a mutual fund. | |
Investors cannot invest directly in any index. |
The Funds | 29 |
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon International Fund Class M shares and the Morgan Stanley Capital International Europe, Australasia, Far East Index
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 7/15/98 | –5.07% | –0.87% | 2.79% | — |
Investor shares | 7/11/01 | –5.26% | –1.10% | — | 3.87% |
Morgan Stanley Capital International | |||||
Europe, Australasia, Far East Index†† | 9/30/00 | –2.34% | 0.96% | — | 1.62% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon International Fund on 8/31/00 to a $10,000 investment made in the |
Morgan Stanley Capital International Europe,Australasia, Far East Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund (and those of another CTF) were transferred to the fund. Please note that the performance of the fund’s Class |
M shares represents the performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the actual |
performance of the CTF the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the performance of |
the fund’s Class M shares thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore was not subject |
to certain investment restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher than those |
estimated prior to the conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is an unmanaged index composed of a sample of |
companies representative of the market structure of European and Pacific Basin countries. Unlike a mutual fund, the Index is not subject to charges, fees and other |
expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in |
the Financial Highlights section of the prospectus and elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
30
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by D. Kirk Henry, Sean P. Fitzgibbon and Jay Malikowski, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Emerging Markets Fund’s Class M shares produced a total return of 15.92%, and Investor shares returned 15.56%.1 This compares with a 18.34% total return produced by the Morgan Stanley Capital International Emerging Markets Index (“MSCI EM Index”), the fund’s benchmark, for the same period.2
Emerging markets stocks held up relatively well during the reporting period despite weakness in developed markets. The fund produced lower returns than its benchmark, primarily due to shortfalls in South Korea, Russia and the financials sector.
The Fund’s Investment Approach
The fund seeks long-term capital growth.To pursue its goal, the fund invests at least 80% of its assets in equity securities of companies organized, or with a majority of assets or operations, in countries considered to be emerging markets.
The fund allocates its assets between a core investment style and a value investment style at the discretion of the investment adviser.The fund is not managed to a specific target duration between these investment styles. However, under normal conditions at least 30% of the fund’s assets will be invested in each of the core and value investment styles. Pursuant to the core investment style, under normal circumstances at least 80% of the fund’s cash inflows allocated to this style are invested in equity securities of companies located in the foreign countries represented in the MSCI EM Index.
The fund will continue to invest in stocks that appear to be undervalued (as measured by their price/earnings ratios), but stocks purchased pursuant to the core investment style may have value and/or growth characteristics. The core investment style portfolio manager employs a “bottom-up” investment approach, which emphasizes individual stock selection. The core investment style stock selection process is designed to produce a diversified portfolio that, relative to the MSCI EM Index, has a below-average price/earnings ratio and an above-average earnings growth trend.
When choosing stocks for the portion of the fund using the value-oriented investment style, we use a research-driven and risk-averse approach. We identify potential investments through valuation screening and extensive fundamental research. Emphasizing individual stock selection rather than economic and industry trends, we focus on three key factors: value, business health and business momentum.
Emerging Markets Fare Well in Sluggish Global Economy
Robust economic growth in the emerging markets supported worldwide manufacturing activity early in the reporting period, fueling a global economic recovery. However, investor sentiment deteriorated in 2010, due primarily to a sovereign debt crisis in Europe, inflationary pressures in China and high unemployment levels in the United States. While these factors sparked declines in developed markets during the spring and summer of 2010, the emerging markets held up relatively well.
Financial Stocks Dampened Fund Results
Although the fund participated to a substantial degree in the emerging markets’ gains, its overweighted position in South Korea hurt its relative performance, as did its holdings of construction firm Hyundai Development and insurance companies that encountered choppy equity markets and low interest rates. In addition, the fund sold some of the country’s better performers, including LG Chemical. In Russia, the
The Funds | 31 |
DISCUSSION OF FUND PERFORMANCE (continued)
fund’s lack of exposure to financial giant Sberbank dampened returns. Conversely, an overweighted position in energy producer Gazprom undermined results in the sluggish global economy.
The materials sector produced disappointing results, mainly due to underweighted positions in Brazilian steelmakers and commodities producer Vale. Instead, we focused on cement manufacturers, such as Asia Cement China Holdings, which trailed metals companies. The fund’s relative performance was also dampened by overweighted exposure to the telecommunications sector, where China Mobile and Indian service providers Bharti Airtel and Mahanagar Telephone Nigam disappointed.
On a more positive note,Thailand produced above-average results despite local political instability. Krung Thai Bank, Kasikornbank and Bangkok Bank advanced strongly, and food producers Thai Union Frozen Products and Charoen Pokphand Foods also gained value. In Mexico, home builder Desarrolladora Homex, bottler Grupo Continental and brewer Grupo Modelo climbed amid improved consumer spending. The fund also benefited from underweigh ted exposure to Eastern Europe, which suffered due to its proximity to the sovereign debt crisis.
The financials sector represented the fund’s top performing industry group during the reporting period, due to above-average returns from banks inThailand and India. China Life Insurance and Malayan Banking Berhad also fared well, as did South African bank FirstRand. Strong stock selections in the technology sector included Taiwanese firms Compal Electronics and Yageo, and TPV Technology in China.
Finding Opportunities in Volatile Markets
Although near-term prospects for stocks in other regions of the world are uncertain, we remain optimistic regarding the potential performance of emerging markets.As of the reporting period’s end, we have found a number of opportunities meeting our investment criteria among wireless telecommunications companies and energy producers.
September 15, 2010
Please note, the position in any security highlighted with italicized typeface | |
was sold during the reporting period. | |
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all of | |
which are more fully described in the fund’s prospectus. | |
The portfolio’s performance will be influenced by political, social and economic | |
factors affecting investments in foreign companies. Special risks associated with | |
investments in foreign companies include exposure to currency fluctuations, less | |
liquidity, less developed or less efficient trading markets, lack of comprehensive | |
company information, political instability and differing auditing and legal | |
standards.These risks are enhanced in emerging markets countries. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and investment | |
return fluctuate such that upon redemption, fund shares may be worth more or | |
less than their original cost. | |
2 | SOURCE: LIPPER INC. — Reflects reinvestment of gross dividends and, |
where applicable, capital gain distributions.The Morgan Stanley Capital | |
International Emerging Markets Index is a market capitalization-weighted | |
index composed of companies representative of the market structure of 21 | |
emerging market countries in Europe, Latin America and the Pacific Basin. | |
Index return does not reflect fees and expenses associated with operating a | |
mutual fund. Investors cannot invest directly in any index. |
32
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Emerging Markets Fund Class M shares and the Morgan Stanley Capital International Emerging Markets Index
Average Annual Total Returns as of 8/31/10 | ||||
Inception | From | |||
Date | 1 Year | 5 Years | Inception | |
Class M shares | 10/2/00 | 15.92% | 10.86% | 13.93% |
Investor shares | 7/11/01 | 15.56% | 10.59% | 15.27% |
Morgan Stanley Capital International | ||||
Emerging Markets Index†† | 9/30/00 | 18.34% | 12.71% | 12.69% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Emerging Markets Fund on 10/2/00 (inception date) to a $10,000 |
investment made in the Morgan Stanley Capital International Emerging Markets Index (the “Index”) on that date. For comparative purposes, the value of the Index |
on 9/30/00 is used as the beginning value on 10/2/00.All dividends and capital gain distributions are reinvested. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is a market capitalization-weighted index composed |
of companies representative of the market structure of 26 emerging market countries in Europe, Latin America and the Pacific Basin.The Index excludes closed markets |
and those shares in otherwise free markets, which are not purchasable by foreigners.The Index includes gross dividends reinvested and does not take into account charges, |
fees and other expenses.These factors can contribute to the Index potentially outperforming the fund. Unlike a mutual fund, the Index is not subject to charges, fees and |
other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is |
contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
The Funds | 33 |
DISCUSSION OF FUND PERFORMANCE (continued)
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Thomas J. Durante, Richard A. Brown and Karen Q.Wong, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon International Appreciation Fund’s Class M shares produced a total return of –4.35%, and Investor shares produced a total return of –4.60%.1 In comparison, the fund’s benchmark, the Morgan Stanley Capital International Europe,Australasia, Far East Index (“MSCI EAFE Index”), produced a total return of –2.34% for the same period.2
After rallying in the final months of 2009, international stock markets declined in 2010 amid renewed economic concerns. The differences between the fund’s and benchmark’s returns were primarily the result of expenses and pricing disparities between the common stocks of the companies comprising the MSCI EAFE Index and the related Depository Receipts (DRs) in which the fund invests.
The Fund’s Investment Approach
The fund seeks long-term capital appreciation. To pursue its goal, the fund normally invests at least 80% of its assets in equity securities, including Depositary Receipts (DRs), common stocks, preferred stocks, convertible securities, equity securities in foreign investment funds or trusts and other equity investments.
The fund invests primarily in DRs representing the local shares of non-U.S. companies, in particular, American Depositary Receipts (ADRs). In selecting securities, we screen the MSCI EAFE Index universe of approximately 1,000 issuers for the availability of issuers with a DR facility. The investment adviser then uses a proprietary mathematical algorithm to reflect the characteristics of the developed markets that takes into consideration risk characteristics, including country weights and sector weights within each country. As a result of this process, we expect to hold ADRs representing 200 to 300 foreign issuers. The fund’s country allocation is expected to be within 5% of that of the MSCI EAFE Index, and under normal circumstances, the fund will invest in at least 10 different countries.The fund generally will not invest in securiti es from developing countries because they are not included in the MSCI EAFE Index.
International Stocks Succumbed to Economic Pressures
Robust economic growth in the emerging markets supported greater global manufacturing activity over the final months of 2009, fueling a sustained, but mild, worldwide economic recovery. However, the positive effects of the rebound on investor sentiment were derailed early in 2010 by a sovereign debt crisis in Greece, Spain and other parts of Europe, which found themselves struggling to finance heavy debt loads. A fragile banking system and austerity measures threatened to dampen an already anemic economic rebound in Europe.
In addition, investors worried that efforts to forestall inflationary pressures in China might hinder a major engine of global growth.Appreciation of the yen against other major currencies hurt exports in Japan, and high unemployment levels weighed on the rebound in the United States. As these worries intensified, international stock prices fell.
Emerging Markets Outshone Developed Markets
Most of the better performing equity markets during the reporting period were located in developing economies, particularly Australia, Hong Kong and Taiwan, which
34
serve China and India. In addition, Scandinavian countries fared relatively well, as their banking systems have remained healthy and manufacturing activity has been robust. In contrast, some of the markets’ poorer performers included nations at the center of Europe’s sovereign debt crisis, such as Greece, Spain, Italy and Portugal. Japan’s stock market also lost value as its exports waned.
In light of the struggling European banking system, we believe it is not surprising that financial companies led the broader market’s decline. Utilities in Europe also lost considerable value as demand for electricity ebbed.The energy sector fared poorly due to a glut of oil in the weak global economy, as well as sharp declines in the stocks of companies implicated in the catastrophic oil spill in the Gulf of Mexico.
On the other hand, the consumer staples sector held up relatively well as investors flocked to traditionally defensive investments. In addition, many food, beverage and tobacco producers have established a major presence in the emerging markets, where consumers are less indebted than their counterparts in developed nations. The materials sector also generally advanced, but the fortunes of commodities producers depended on the locations of their customers. Those serving Asian emerging markets tended to do better than companies serving Europe and Japan.
Diversification Benefits of Index Investing
Despite ongoing pressures in Europe and Japan, we remain optimistic that the global economic recovery will continue. Still, it is important to note that we do not attempt to take active positions in markets, industry groups or individual companies. Instead, we strive to replicate the returns of the MSCI EAFE Index by closely approximating its composition. In our experience, this passive investment approach can help investors manage risks through broad diversification, effectively limiting the impact on the overall portfolio of unexpected losses in any single industry group or holding.
September 15, 2010
Equity funds are subject generally to market, market sector, market liquidity, | |
issuer and investment style risks, among other factors, to varying degrees, all | |
of which are more fully described in the fund’s prospectus. | |
The fund’s performance will be influenced by political, social and economic | |
factors affecting investments in foreign companies. Special risks associated | |
with investments in foreign companies include exposure to currency | |
fluctuations, less liquidity, less developed or less efficient trading markets, | |
lack of comprehensive company information, political instability and | |
differing auditing and legal standards.These risks are enhanced in emerging | |
markets countries. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. Return figures provided reflect | |
the absorption of certain fund expenses by BNY Mellon Fund Advisors | |
pursuant to an agreement in effect through September 30, 2010, at which | |
time it may be extended, terminated or modified. Had these expenses not | |
been absorbed, the fund’s returns would have been lower. | |
2 | SOURCE: LIPPER INC. — Reflects reinvestment of net dividends |
and, where applicable, capital gain distributions.The Morgan Stanley | |
Capital International Europe,Australasia, Far East (MSCI EAFE) Index | |
is an unmanaged index composed of a sample of companies representative of | |
the market structure of European and Pacific Basin countries. Index return | |
does not reflect fees and expenses associated with operating a mutual fund. | |
Investors cannot invest directly in any index. |
The Funds | 35 |
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon International Appreciation Fund, Class M shares and Investor shares and the Morgan Stanley Capital International Europe, Australasia, Far East Index
Average Annual Total Returns as of 8/31/10 | |||
1 Year | 5 Years | 10 Years | |
Class M shares | –4.35% | 0.22% | –1.32% |
Investor shares | –4.60% | –0.01% | –1.52% |
Morgan Stanley Capital International | |||
Europe, Australasia, Far East Index | –2.34% | 0.96% | 1.10% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares and Investor shares of BNY Mellon International Appreciation Fund on 8/31/00 to a |
$10,000 investment made in the Morgan Stanley Capital International Europe,Australasia, Far East Index (the “Index”) on that date.All dividends and capital |
gain distributions are reinvested. |
As of the close of business on September 12, 2008, substantially all of the assets of another investment company advised by an affiliate of the fund’s investment |
adviser, BNY Hamilton International Equity Fund (the “predecessor fund”), a series of BNY Hamilton Funds, Inc., were transferred to BNY Mellon International |
Appreciation Fund in a tax-free reorganization and the fund commenced operations.The performance figures for the fund’s Class M shares represent the performance |
of the predecessor fund’s Institutional shares prior to the commencement of operations for BNY Mellon International Appreciation Fund and the performance of BNY |
Mellon International Appreciation Fund’s Class M shares thereafter.The performance figures for Investor shares represent the performance of the predecessor fund’s |
Class A shares prior to the commencement of operations for BNY Mellon International Appreciation Fund and the performance of BNY Mellon International |
Appreciation Fund’s Investor shares thereafter. Investor shares are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for all shares classes.The Index is an unmanaged index composed |
of a sample of companies representative of the market structure of European and Pacific Basin countries. Unlike a mutual fund, the Index is not subject to charges, fees |
and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is |
contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
36
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Sean P. Fitzgibbon, Jeffrey D. McGrew and John F. Flahive, Portfolio Managers
Market and Fund Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Balanced Fund’s Class M shares produced a total return of 6.84%, and Investor shares returned 6.44%.1 In comparison, the fund’s benchmark, a blended index composed of 60% Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”) and 40% Barclays Capital U.S.Aggregate Index, produced a 6.63% total return for the same period.2 Separately, the S&P 500 Index and the Barclays Capital U.S.Aggregate Index produced total returns of 4.93% and 9.18%, respectively, for the same period.
After rallying over much of the reporting period, stocks and higher yielding bonds encountered heightened volatility stemming from renewed economic concerns.The fund’s Class M shares produced higher returns than its benchmark, primarily due to strong stock selections.
The Fund’s Investment Approach
The fund seeks long-term growth of principal in conjunction with current income.To pursue its goal, the fund may invest in equity securities, income producing bonds, BNY Mellon Small Cap Stock Fund, BNY Mellon Mid Cap Stock Fund, BNY Mellon International Fund and BNY Mellon Emerging Markets Fund (collectively, the “BNY Mellon Funds”). The fund has established target allocations of 60% to equity securities and 40% to bonds and money market instruments. The fund may deviate from these targets within ranges of 15% above or below the target amount. The fund’s investments in each of the BNY Mellon Funds are subject to a separate limit of 20% of the fund’s total assets, as is the fund’s investment in money market instruments.
In the fund’s equity portfolio, individual stocks are chosen using a computer model, fundamental analysis and risk management techniques. Our computer model identifies and ranks stocks within each industry or sector based on value, earnings growth and the financial health of the company.
In the fund’s fixed-income portfolio, investments in debt securities must be of investment-grade quality at the time of purchase3 or, if unrated, deemed of comparable quality by the investment adviser. Generally, the fund’s average effective portfolio duration of bonds will not exceed eight years. We choose debt securities based on their yields, credit quality, the level of interest rates and inflation, general economic and financial trends and our outlook for the securities markets.
Economic Concerns Derailed Market Rallies
Most U.S. corporations posted stronger earnings, propelling stocks, corporate bonds and commercial mortgage-backed securities higher over the reporting period’s first half. However, in May 2010 a sovereign debt crisis in Greece, inflationary pressures in China and high levels of U.S. unemployment undermined investor sentiment. As a result, stocks and higher yielding bonds gave back some of their earlier gains.
Stock Selections Bolstered Fund Performance
The fund’s Class M shares’ outperformance of its benchmark was driven by its stock portfolio. In the energy sector, the fund benefited from a focus on exploration-and-production firms over integrated
The Funds | 37 |
DISCUSSION OF FUND PERFORMANCE (continued)
oil companies, including a lack of exposure to ExxonMobil. Winners included Anadarko Petroleum, which we believed had been punished more severely than warranted after the Gulf oil spill, and Newfield Exploration, which owns attractive assets.The fund also benefited from XTO Energy, which was acquired by ExxonMobil during the reporting period.
In the materials sector, Brazil’s Vale saw robust demand from China for iron ore.Agricultural chemical producers E. I. du Pont de Nemours and Co. and CF Industries Holdings also fared well. In the consumer discretionary sector, automotive safety equipment maker Autoliv profited from improved vehicle sales.Apparel retailers Limited Brands and Gap proved well positioned for improved consumer confidence, while Home Depot and Whirlpool benefited from rising demand for home improvement products and appliances, respectively.
On a more negative note, JPMorgan Chase & Co. and Bank of America lagged in the financials sector despite solid business franchises. Citigroup declined early in the reporting period when we sold the fund’s position due to company-specific issues, and custodial bank State Street Corp. reported disappointing results in certain business units. In the utilities sector, Mirant Corp. declined as natural gas prices fell and coal prices climbed.
A conservative investment posture hurt the bond portfolio’s relative performance.While a short average duration helped cushion the impact of market volatility in the spring, it prevented the fund from benefiting fully from strength among longer-term bonds.The fund’s residential mortgage-backed securities fared better, as we emphasized pass-through securities from U.S. government agencies.
Remaining Cautiously Opportunistic
The U.S. economy appears poised for continued subpar recovery, prompting us to maintain a relatively constructive posture among stocks and a more cautious approach to bonds.Among stocks, we have found a number of opportunities in the health care sector and fewer in the financials and consumer staples sectors. Among bonds, we believe a focus on shorter-term, higher-quality securities is a prudent course in today’s uncertain economic environment.
September 15, 2010
Please note, the position in any security highlighted with italicized typeface | |
was sold during the reporting period. | |
Equities are subject generally to market, market sector, market liquidity, issuer | |
and investment style risks, among other factors, to varying degrees, all of which | |
are more fully described in the fund’s prospectus. | |
Bonds are subject generally to interest rate, credit, liquidity and market risks, to | |
varying degrees, all of which are more fully described in the fund’s prospectus. | |
Generally, all other factors being equal, bond prices are inversely related to | |
interest-rate changes, and rate increases can cause price declines. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price and investment | |
return fluctuate such that upon redemption, fund shares may be worth more or | |
less than their original cost. | |
2 | SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where |
applicable, capital gain distributions.The Standard & Poor’s 500 Composite | |
Stock Price Index is a widely accepted, unmanaged index of U.S. stock market | |
performance.The Barclays Capital 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 indices’ returns | |
do not reflect the fees and expenses associated with operating a mutual fund. | |
Investors cannot invest directly in any index. | |
3 | The fund may continue to own investment-grade bonds (at the time of |
purchase), which are subsequently downgraded to below investment grade. |
38
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Balanced Fund Class M shares with the Standard & Poor’s 500 Composite Stock Price Index, the Barclays Capital U.S. Aggregate Index, and the Customized Blended Index
Average Annual Total Returns as of 8/31/10 | ||||
Inception | From | |||
Date | 1 Year | 5 Years | Inception | |
Class M shares | 10/2/00 | 6.84% | 2.97% | 3.11% |
Investor shares | 7/11/01 | 6.44% | 2.71% | 3.77% |
Standard & Poor’s 500 | ||||
Composite Stock Price Index†† | 9/30/00 | 4.93% | –0.91% | –1.29% |
Barclays Capital U.S. Aggregate Index†† | 9/30/00 | 9.18% | 5.96% | 6.46% |
Customized Blended Index†† | 9/30/00 | 6.63% | 2.09% | 2.15% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Balanced Fund on 10/2/00 (inception date) to a $10,000 investment |
made in three different indices: (1) the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”), (2) the Barclays Capital U.S.Aggregate |
Index (the “Barclays Index”) and (3) the Customized Blended Index on that date.The Customized Blended Index is calculated on a year-to-year basis. For |
comparative purposes, the value of each index on 9/30/00 is used as the beginning value on 10/2/00.All dividends and capital gain distributions are reinvested. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The S&P 500 Index is a widely accepted, unmanaged index |
of U.S. stock market performance.The Barclays Index is a widely accepted, unmanaged index of corporate, government and government agency debt instruments, |
mortgage-backed securities and asset-backed securities with an average maturity of 1-10 years. Unlike a mutual fund, the indices are not subject to charges, fees and |
other expenses. Investors cannot invest directly in any index.The Customized Blended Index is composed of the S&P 500 Index, 60%, and the Barclays Index, |
40%. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the |
prospectus and elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
The Funds | 39 |
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemptions 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 each class of each BNY Mellon equity fund from March 1, 2010 to August 31, 2010. 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 August 31, 2010† | |||
Dreyfus | |||
Class M Shares | Investor Shares | Premier Shares | |
BNY Mellon Large Cap Stock Fund | |||
Expenses paid per $1,000†† | $ 3.96 | $ 5.19 | — |
Ending value (after expenses) | $962.80 | $960.30 | — |
BNY Mellon Large Cap Market | |||
Opportunities Fund | |||
Expenses paid per $1,000††† | $ .86 | $ 1.08 | — |
Ending value (after expenses) | $948.00 | $948.00 | — |
BNY Mellon Tax-Sensitive | |||
Large Cap Multi-Strategy Fund | |||
Expenses paid per $1,000††† | $ .87 | $ 1.09 | — |
Ending value (after expenses) | $952.00 | $952.00 | — |
BNY Mellon Income Stock Fund | |||
Expenses paid per $1,000†† | $ 4.25 | $ 5.48 | — |
Ending value (after expenses) | $958.40 | $957.80 | — |
BNY Mellon Mid Cap Stock Fund | |||
Expenses paid per $1,000†† | $ 4.44 | $ 5.68 | $ 9.36 |
Ending value (after expenses) | $958.80 | $958.50 | $953.80 |
BNY Mellon Small Cap Stock Fund | |||
Expenses paid per $1,000†† | $ 4.78 | $ 5.95 | — |
Ending value (after expenses) | $953.10 | $952.00 | — |
BNY Mellon U.S. Core Equity 130/30 Fund | |||
Expenses paid per $1,000†† | $ 8.47 | $ 9.91 | — |
Ending value (after expenses) | $976.10 | $975.00 | — |
BNY Mellon Focused | |||
Equity Opportunities Fund | |||
Expenses paid per $1,000†† | $ 4.36 | $ 5.59 | — |
Ending value (after expenses) | $944.80 | $943.80 | — |
40
Expenses and Value of a $1,000 Investment (continued) | |||
assuming actual returns for the six months ended August 31, 2010† | |||
Dreyfus | |||
Class M Shares | Investor Shares | Premier Shares | |
BNY Mellon Small/Mid Cap Fund | |||
Expenses paid per $1,000†† | $ 4.61 | $ 5.86 | — |
Ending value (after expenses) | $ 989.10 | $ 988.20 | — |
BNY Mellon International Fund | |||
Expenses paid per $1,000†† | $ 5.29 | $ 6.46 | — |
Ending value (after expenses) | $ 943.70 | $ 943.00 | — |
BNY Mellon Emerging Markets Fund | |||
Expenses paid per $1,000†† | $ 7.97 | $ 9.30 | — |
Ending value (after expenses) | $1,039.40 | $1,038.40 | — |
BNY Mellon International Appreciation Fund | |||
Expenses paid per $1,000†† | $ 3.30 | $ 4.48 | — |
Ending value (after expenses) | $ 956.40 | $ 955.10 | — |
BNY Mellon Balanced Fund | |||
Expenses paid per $1,000†† | $ 2.92 | $ 4.18 | — |
Ending value (after expenses) | $1,000.50 | $ 998.30 | — |
† | From July 30, 2010 (commencement of operations) to August 31, 2010 for BNY Mellon Large Cap Market Opportunities Fund and BNY Mellon Tax-Sensitive Large Cap |
Multi-Strategy Fund. | |
†† | Expenses are equal to the BNY Mellon Large Cap Stock Fund's annualized expense ratio of .80% for Class M and 1.05% for Investor Shares, BNY Mellon Income Stock |
Fund .86% for Class M and 1.11% for Investor Shares, BNY Mellon Mid Cap Stock Fund .90% for Class M, 1.15% for Investor Shares and 1.90% for Dreyfus Premier | |
Shares, BNY Mellon Small Cap Stock Fund .97% for Class M and 1.21% for Investor Shares, BNY Mellon U.S. Core Equity 130/30 Fund 1.70% for Class M and | |
1.99% for Investor Shares, BNY Mellon Focused Equity Opportunities Fund .89% for Class M and 1.14% for Investor Shares, BNY Mellon Small/Mid Cap Fund .92% | |
for Class M and 1.17% for Investor Shares, BNY Mellon International Fund 1.08% for Class M and 1.32% for Investor Shares, BNY Mellon Emerging Markets Fund | |
1.55% for Class M and 1.81% for Investor Shares, BNY Mellon International Appreciation Fund .67% for Class M and .91% for Investor Shares and BNY Mellon | |
Balanced Fund .58% for Class M and .83% for Investor Shares, multiplied by the respective fund's average account value over the period, multiplied by 184/365 (to reflect the | |
one-half year period). | |
††† | Expenses are equal to the BNY Mellon Large Cap Market Opportunities Fund's annualized expense ratio of .98% for Class M and 1.23% for Investor Shares and BNY |
Mellon Tax-Sensitive Large Cap Multi-Strategy Fund .99% for Class M and 1.24% for Investor Shares, multiplied by the respective fund's average account value over the | |
period, multiplied by 33/365 (to reflect the actual days in the period). |
The Funds | 41 |
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 August 31, 2010† | |||
Dreyfus | |||
Class M Shares | Investor Shares | Premier Shares | |
BNY Mellon Large Cap Stock Fund | |||
Expenses paid per $1,000†† | $ 4.08 | $ 5.35 | — |
Ending value (after expenses) | $1,021.17 | $1,019.91 | — |
BNY Mellon Large Cap Market | |||
Opportunities Fund††† | |||
Expenses paid per $1,000†† | $ 4.99 | $ 6.26 | — |
Ending value (after expenses) | $1,020.27 | $1,019.00 | — |
BNY Mellon Tax-Sensitive | |||
Large Cap Multi-Strategy Fund††† | |||
Expenses paid per $1,000†† | $ 5.04 | $ 6.31 | — |
Ending value (after expenses) | $1,020.21 | $1,018.95 | — |
BNY Mellon Income Stock Fund | |||
Expenses paid per $1,000†† | $ 4.38 | $ 5.65 | — |
Ending value (after expenses) | $1,020.87 | $1,019.61 | — |
BNY Mellon Mid Cap Stock Fund | |||
Expenses paid per $1,000†† | $ 4.58 | $ 5.85 | $ 9.65 |
Ending value (after expenses) | $1,020.67 | $1,019.41 | $1,015.63 |
BNY Mellon Small Cap Stock Fund | |||
Expenses paid per $1,000†† | $ 4.94 | $ 6.16 | — |
Ending value (after expenses) | $1,020.32 | $1,019.11 | — |
BNY Mellon U.S. Core Equity 130/30 Fund | |||
Expenses paid per $1,000†† | $ 8.64 | $ 10.11 | — |
Ending value (after expenses) | $1,016.64 | $1,015.17 | — |
BNY Mellon Focused | |||
Equity Opportunities Fund | |||
Expenses paid per $1,000†† | $ 4.53 | $ 5.80 | — |
Ending value (after expenses) | $1,020.72 | $1,019.46 | — |
42
Expenses and Value of a $1,000 Investment (continued) | |||
assuming a hypothetical 5% annualized return for the six months ended August 31, 2010† | |||
Dreyfus | |||
Class M Shares | Investor Shares | Premier Shares | |
BNY Mellon Small/Mid Cap Fund | |||
Expenses paid per $1,000†† | $ 4.69 | $ 5.96 | — |
Ending value (after expenses) | $1,020.57 | $1,019.31 | — |
BNY Mellon International Fund | |||
Expenses paid per $1,000†† | $ 5.50 | $ 6.72 | — |
Ending value (after expenses) | $1,019.76 | $1,018.55 | — |
BNY Mellon Emerging Markets Fund | |||
Expenses paid per $1,000†† | $ 7.88 | $ 9.20 | — |
Ending value (after expenses) | $1,017.39 | $1,016.08 | — |
BNY Mellon International Appreciation Fund | |||
Expenses paid per $1,000†† | $ 3.41 | $ 4.63 | — |
Ending value (after expenses) | $1,021.83 | $1,020.62 | — |
BNY Mellon Balanced Fund | |||
Expenses paid per $1,000†† | $ 2.96 | $ 4.23 | — |
Ending value (after expenses) | $1,022.28 | $1,021.02 | — |
† | From July 30, 2010 (commencement of operations) to August 31, 2010 for BNY Mellon Large Cap Market Opportunities Fund and BNY Mellon Tax-Sensitive Large Cap |
Multi-Strategy Fund. | |
†† | Expenses are equal to the BNY Mellon Large Cap Stock Fund's annualized expense ratio of .80% for Class M and 1.05% for Investor Shares, BNY Mellon Large Cap |
Market Opportunities Fund .98% for Class M and 1.23% for Investor Shares, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund .99% for Class M, 1.24% for | |
Investor Shares, BNY Mellon Income Stock Fund .86% for Class M and 1.11% for Investor Shares, BNY Mellon Mid Cap Stock Fund .90% for Class M, 1.15% for | |
Investor Shares and 1.90% for Dreyfus Premier Shares, BNY Mellon Small Cap Stock Fund .97% for Class M and 1.21% for Investor Shares, BNY Mellon U.S. Core | |
Equity 130/30 Fund 1.70% for Class M and 1.99% for Investor Shares, BNY Mellon Focused Equity Opportunities Fund .89% for Class M and 1.14% for Investor | |
Shares, BNY Mellon Small/Mid Cap Fund .92% for Class M and 1.17% for Investor Shares, BNY Mellon International Fund 1.08% for Class M and 1.32% for Investor | |
Shares, BNY Mellon Emerging Markets Fund 1.55% for Class M and 1.81% for Investor Shares, BNY Mellon International Appreciation Fund .67% for Class M and .91% | |
for Investor Shares and BNY Mellon Balanced Fund .58% for Class M and .83% for Investor Shares, multiplied by the respective fund's average account value over the period, | |
multiplied by 184/365 (to reflect the one-half year period). | |
††† | Please note that while Class M and Investor Shares for BNY Mellon Large Cap Market Opportunities Fund and BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund |
commenced operations on July 30, 2010, the hypothetical expenses paid during the period reflect projected activity for the full six-month period for purposes of comparability.This | |
projection assumes that the annualized expense ratios were in effect during the period March 1, 2010 to August 31, 2010. |
The Funds | 43 |
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon Large Cap Stock Fund | |||||
Common Stocks—99.9% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—14.2% | Financial (continued) | ||||
Amazon.com | 140,780 a | 17,573,567 | Bank of America | 2,159,870 | 26,890,382 |
Autoliv | 314,590 | 17,031,903 | Capital One Financial | 409,910 | 15,519,193 |
Carnival | 177,080 | 5,521,354 | Franklin Resources | 89,920 | 8,678,179 |
DIRECTV, Cl. A | 160,940 a | 6,102,845 | Genworth Financial, Cl. A | 794,530 a | 8,604,760 |
Home Depot | 508,260 | 14,134,711 | Goldman Sachs Group | 39,960 | 5,472,122 |
Las Vegas Sands | 148,160 a | 4,197,373 | JPMorgan Chase & Co. | 771,926 | 28,067,229 |
Limited Brands | 347,210 | 8,194,156 | Lincoln National | 410,540 | 9,590,214 |
Mattel | 351,250 | 7,372,738 | MetLife | 334,350 | 12,571,560 |
Newell Rubbermaid | 764,010 b | 11,475,430 | Morgan Stanley | 256,390 | 6,330,269 |
News, Cl. A | 751,930 | 9,451,760 | Wells Fargo & Co. | 557,880 | 13,138,074 |
News, Cl. B | 977,700 b | 13,785,570 | XL Group | 212,820 | 3,811,605 |
Nordstrom | 482,930 | 13,966,336 | 156,163,759 | ||
Stanley Black & Decker | 110,690 | 5,937,412 | Health Care—13.6% | ||
Target | 372,630 | 19,063,751 | Allscripts Healthcare Solutions | 519,500 a | 8,680,845 |
Time Warner | 227,173 | 6,810,647 | AmerisourceBergen | 601,330 | 16,404,282 |
Whirlpool | 106,340 b | 7,886,174 | Amylin Pharmaceuticals | 736,220 a,b | 15,121,959 |
168,505,727 | CIGNA | 266,460 | 8,585,340 | ||
Consumer Staples—9.5% | Covidien | 178,380 | 6,303,949 | ||
Clorox | 216,070 | 14,005,657 | Dendreon | 164,940 a | 5,911,450 |
Energizer Holdings | 236,830 a | 14,932,132 | Gilead Sciences | 140,240 a | 4,468,046 |
Nestle, ADR | 324,410 | 16,723,335 | Hospira | 171,370 a,b | 8,801,563 |
PepsiCo | 507,437 | 32,567,307 | Human Genome Sciences | 579,540 a,b | 16,858,819 |
Philip Morris International | 325,949 | 16,766,817 | King Pharmaceuticals | 708,160 a | 6,168,074 |
Unilever, ADR | 668,210 b | 17,747,658 | Mednax | 108,480 a | 5,026,963 |
112,742,906 | Merck & Co. | 263,773 | 9,274,259 | ||
Energy—11.9% | Pfizer | 1,896,550 | 30,212,042 | ||
Alpha Natural Resources | 160,080 a | 5,943,770 | St. Jude Medical | 166,560 a | 5,757,979 |
Anadarko Petroleum | 232,370 | 10,686,696 | Thermo Fisher Scientific | 130,540 a | 5,498,345 |
Apache | 68,380 | 6,143,943 | Zimmer Holdings | 164,900 a | 7,778,333 |
Chevron | 238,180 | 17,663,429 | 160,852,248 | ||
ConocoPhillips | 294,290 | 15,429,625 | Industrial—9.1% | ||
ENSCO, ADR | 272,830 | 11,221,498 | AMR | 771,690 a | 4,715,026 |
EOG Resources | 103,470 | 8,988,439 | Caterpillar | 279,660 | 18,222,646 |
Hess | 335,740 | 16,870,935 | Cummins | 158,030 | 11,759,012 |
Newfield Exploration | 321,900 a | 15,454,419 | Dover | 332,770 | 14,894,785 |
Occidental Petroleum | 347,740 | 25,412,839 | General Electric | 562,056 | 8,138,571 |
Valero Energy | 432,250 | 6,816,583 | Ingersoll-Rand | 244,610 | 7,957,163 |
140,632,176 | Norfolk Southern | 201,900 | 10,837,992 | ||
Exchange Traded Funds—1.0% | Raytheon | 332,150 | 14,588,028 | ||
Standard & Poor’s Depository | Textron | 528,060 b | 9,013,984 | ||
Receipts S&P 500 ETF Trust | 112,700 b | 11,868,437 | Tyco International | 202,190 | 7,537,643 |
Financial—13.2% | 107,664,850 | ||||
American Express | 438,680 | 17,490,172 |
44
BNY Mellon Large Cap Stock Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Information Technology—19.3% | Utilities (continued) | ||||
Apple | 162,920 a | 39,649,840 | Entergy | 168,060 | 13,249,850 |
BMC Software | 252,390 a | 9,101,183 | Public Service Enterprise Group | 494,600 | 15,807,416 |
Cisco Systems | 964,264 a | 19,333,493 | 37,510,341 | ||
EMC | 552,100 a | 10,070,304 | Total Common Stocks | ||
Google, Cl. A | 42,860 a | 19,287,857 | (cost $1,057,733,856) | 1,184,024,790 | |
Informatica | 566,480 a | 18,217,997 | |||
International Business Machines | 137,700 | 16,968,771 | Other Investment—.0% | ||
Microsoft | 590,606 | 13,867,429 | Registered Investment Company; | ||
Motorola | 1,892,930 a | 14,253,763 | Dreyfus Institutional Preferred | ||
NetApp | 363,920 a | 14,716,925 | Plus Money Market Fund | ||
Oracle | 1,049,450 | 22,961,966 | (cost $92,000) | 92,000 c 92,000 | |
QUALCOMM | 439,200 | 16,825,752 | Investment of Cash Collateral | ||
Teradata | 418,513 a | 13,702,116 | for Securities Loaned—4.0% | ||
228,957,396 | Registered Investment Company; | ||||
Materials—2.2% | Dreyfus Institutional Cash | ||||
CF Industries Holdings | 106,470 | 9,848,475 | Advantage Plus Fund | ||
E.I. du Pont de Nemours & Co. | 411,340 | 16,770,332 | (cost $48,126,233) | 48,126,233 c 48,126,233 | |
26,618,807 | |||||
Total Investments | |||||
Telecommunication Services—2.7% | (cost $1,105,952,089) | 103.9% | 1,232,243,023 | ||
AT & T | 1,202,669 | 32,508,143 | |||
Liabilities, Less Cash and Receivables | (3.9%) | (46,535,132) | |||
Utilities—3.2% | |||||
American Electric Power | 238,720 | 8,453,075 | Net Assets | 100.0% | 1,185,707,891 |
ADR—American Depository Receipts |
a Non-income producing security. |
b Security, or portion thereof, on loan.At August 31, 2010, the total market value of the fund’s securities on loan is $37,582,204 and the total market value of the collateral held by |
the fund is $48,126,233. |
c Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Information Technology | 19.3 | Money Market Investments | 4.0 |
Consumer Discretionary | 14.2 | Utilities | 3.2 |
Health Care | 13.6 | Telecommunication Services | 2.7 |
Financial | 13.2 | Materials | 2.2 |
Energy | 11.9 | Exchange Traded Funds | 1.0 |
Consumer Staples | 9.5 | ||
Industrial | 9.1 | 103.9 |
† Based on net assets. |
See notes to financial statements. |
The Funds | 45 |
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon Large Cap Market Opportunities Fund | |||||
Common Stocks—76.0% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—11.9% | Financial—5.8% | ||||
Gymboree | 1,027 a | 38,646 | Aflac | 1,248 | 58,968 |
International Game Technology | 3,094 | 45,172 | Assured Guaranty | 3,256 | 50,305 |
Johnson Controls | 2,334 | 61,921 | Invesco | 2,877 | 52,074 |
Lowe’s | 2,714 | 55,094 | Morgan Stanley | 2,768 | 68,342 |
McDonald’s | 641 | 46,831 | U.S. Bancorp | 3,039 | 63,211 |
NIKE, Cl. B | 605 | 42,350 | 292,900 | ||
Panera Bread, Cl. A | 575 a | 45,966 | Health Care—12.2% | ||
Starbucks | 1,788 | 41,106 | Abbott Laboratories | 1,804 | 89,009 |
Time Warner Cable | 1,113 | 57,442 | Allergan | 977 | 60,007 |
TJX | 1,084 | 43,024 | Baxter International | 1,140 | 48,518 |
Tractor Supply | 641 | 43,575 | C.R. Bard | 571 | 43,870 |
Walt Disney | 2,524 | 82,257 | Celgene | 827 a | 42,607 |
603,384 | Covidien | 1,221 | 43,150 | ||
Consumer Staples—6.2% | Gilead Sciences | 1,330 a | 42,374 | ||
Avon Products | 1,927 | 56,076 | Johnson & Johnson | 767 | 43,734 |
Coca-Cola | 1,221 | 68,278 | Medtronic | 1,230 | 38,720 |
Colgate-Palmolive | 569 | 42,015 | Meridian Bioscience | 2,283 | 41,733 |
Kraft Foods, Cl. A | 2,062 | 61,757 | Resmed | 1,398 a | 42,136 |
PepsiCo | 685 | 43,963 | Stryker | 962 | 41,549 |
Wal-Mart Stores | 869 | 43,572 | Varian Medical Systems | 810 a | 43,124 |
315,661 | 620,531 | ||||
Energy—8.6% | Industrial—7.8% | ||||
Apache | 465 | 41,780 | Boeing | 660 | 40,346 |
CARBO Ceramics | 545 | 41,273 | C.H. Robinson Worldwide | 687 | 44,648 |
EOG Resources | 442 | 38,397 | Caterpillar | 1,140 | 74,282 |
Exxon Mobil | 1,058 | 62,591 | Donaldson | 943 | 39,512 |
Halliburton | 2,035 | 57,407 | Honeywell International | 1,981 | 77,437 |
Occidental Petroleum | 1,358 | 99,243 | MSC Industrial Direct, Cl. A | 862 | 38,419 |
Schlumberger | 742 | 39,571 | Precision Castparts | 361 | 40,858 |
Southwestern Energy | 1,791 a | 58,602 | Rockwell Collins | 778 | 41,958 |
438,864 | 397,460 |
46
BNY Mellon Large Cap Market Opportunities Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Information Technology—19.1% | Materials (continued) | ||||
Adobe Systems | 1,547 a | 42,945 | Ecolab | 909 | 43,087 |
Amphenol, Cl. A | 991 | 40,353 | Monsanto | 767 | 40,383 |
Apple | 518 a | 126,066 | 225,113 | ||
Automatic Data Processing | 1,074 | 41,467 | Total Common Stocks | ||
Cisco Systems | 1,913 a | 38,356 | (cost $4,001,489) | 3,862,792 | |
Cognizant Technology Solutions, Cl. A | 1,221 a | 70,336 | |||
Dolby Laboratories, Cl. A | 674 a | 37,353 | Other Investments—45.6% | ||
FLIR Systems | 1,499 a | 37,655 | Registered Investment Company: | ||
Google, Cl. A | 289 a | 130,056 | BNY Mellon | ||
Intel | 2,112 | 37,425 | US Core Equity | ||
MasterCard, Cl. A | 214 | 42,449 | 130/30 Fund, Cl. M | 98,813 b | 969,360 |
Microsoft | 1,706 | 40,057 | Dreyfus Institutional | ||
Preferred Plus Money | |||||
Oracle | 1,873 | 40,981 | |||
Market Fund | 1,349,000 c | 1,349,000 | |||
Paychex | 1,700 | 42,313 | |||
Total Other Investments | |||||
QUALCOMM | 1,146 | 43,903 | (cost $2,347,000) | 2,318,360 | |
Questar | 4,342 | 70,688 | |||
Salesforce.com | 787 a | 86,476 | Total Investments | ||
(cost $6,348,489) | 121.6% | 6,181,152 | |||
968,879 | |||||
Materials—4.4% | Liabilities, Less Cash | ||||
Air Products & Chemicals | 814 | 60,260 | and Receivables | (21.6%) | (1,097,476) |
Cliffs Natural Resources | 1,330 | 81,383 | Net Assets | 100.0% | 5,083,676 |
a | Non-income producing security. |
b | Investment in affiliated mutual fund. |
c | Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Money Market Investment | 26.5 | Industrial | 7.8 |
Information Technology | 19.1 | Consumer Staples | 6.2 |
Mutual Fund: Domestic | 19.1 | Financial | 5.8 |
Health Care | 12.2 | Materials | 4.4 |
Consumer Discretionary | 11.9 | ||
Energy | 8.6 | 121.6 |
† Based on net assets. |
See notes to financial statements. |
The Funds | 47 |
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund | |||||
Common Stocks—83.5% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—10.5% | Consumer Discretionary (continued) | ||||
Amazon.com | 90 a | 11,235 | Walgreen | 278 | 7,473 |
Apollo Group, Cl. A | 78 a | 3,313 | Walt Disney | 4,347 | 141,669 |
Bed Bath & Beyond | 122 a | 4,388 | Whirlpool | 37 | 2,744 |
Best Buy | 122 | 3,830 | Yum! Brands | 879 | 36,654 |
Carnival | 1,172 | 36,543 | 1,086,003 | ||
CBS, Cl. B | 278 | 3,842 | Consumer Staples—8.7% | ||
Coach | 112 | 4,014 | Altria Group | 542 | 12,097 |
Comcast, Cl. A | 707 | 12,104 | Archer-Daniels-Midland | 196 | 6,033 |
DIRECTV, Cl. A | 228 a | 8,646 | Avon Products | 3,191 | 92,858 |
Discovery Communications, Cl. A | 96 a | 3,624 | Clorox | 76 | 4,926 |
Ford Motor | 887 a | 10,014 | Coca-Cola | 1,779 | 99,482 |
Fortune Brands | 96 | 4,300 | Colgate-Palmolive | 993 | 73,323 |
Genuine Parts | 92 | 3,858 | Costco Wholesale | 513 | 29,010 |
Gymboree | 1,020 a | 38,383 | CVS Caremark | 363 | 9,801 |
Home Depot | 1,620 | 45,052 | Dr. Pepper Snapple Group | 93 | 3,424 |
International Game Technology | 4,722 | 68,941 | General Mills | 181 | 6,545 |
Johnson Controls | 3,898 | 103,414 | H.J. Heinz | 99 | 4,578 |
Kohl’s | 114 a | 5,356 | Harley-Davidson | 114 | 2,772 |
Limited Brands | 135 | 3,186 | Hershey | 85 | 3,950 |
Lowe’s | 3,092 | 62,768 | J.M. Smucker | 63 | 3,684 |
Macy’s | 203 | 3,946 | Kimberly-Clark | 98 | 6,311 |
Marriott International, Cl. A | 108 | 3,457 | Kraft Foods, Cl. A | 3,913 | 117,194 |
Mattel | 187 | 3,925 | Kroger | 209 | 4,124 |
McDonald’s | 893 | 65,243 | Lorillard | 58 | 4,409 |
McGraw-Hill | 143 | 3,954 | McCormick & Co. | 108 | 4,306 |
MSC Industrial Direct, Cl. A | 856 | 38,152 | Panera Bread, Cl. A | 571 a | 45,646 |
News, Cl. A | 616 | 7,743 | PepsiCo | 1,888 | 121,172 |
NIKE, Cl. B | 716 | 50,120 | Philip Morris International | 1,202 | 61,831 |
O’Reilly Automotive | 74 a | 3,498 | Procter & Gamble | 1,279 | 76,318 |
Omnicom Group | 107 | 3,746 | Safeway | 190 | 3,572 |
Priceline.com | 14 a | 4,081 | Sara Lee | 300 | 4,332 |
Ross Stores | 75 | 3,722 | SYSCO | 186 | 5,113 |
Stanley Black & Decker | 80 | 4,291 | Wal-Mart Stores | 1,800 | 90,252 |
Staples | 241 | 4,283 | 897,063 | ||
Starbucks | 2,000 | 45,980 | Energy—9.6% | ||
Starwood Hotels & Resorts Worldwide | 81 | 3,785 | Anadarko Petroleum | 140 | 6,439 |
Target | 860 | 43,998 | Apache | 559 | 50,226 |
Time Warner | 297 | 8,904 | Baker Hughes | 127 | 4,773 |
Time Warner Cable | 1,200 | 61,932 | Cameron International | 98 a | 3,604 |
TJX | 1,204 | 47,787 | CARBO Ceramics | 541 | 40,970 |
Tractor Supply | 636 | 43,235 | Chesapeake Energy | 214 | 4,426 |
Viacom, Cl. B | 155 | 4,870 | Chevron | 915 | 67,856 |
48
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Energy (continued) | Financial (continued) | ||||
ConocoPhillips | 372 | 19,504 | Equity Residential | 88 | 4,033 |
Consol Energy | 96 | 3,091 | Fifth Third Bancorp | 323 | 3,569 |
Devon Energy | 123 | 7,414 | Franklin Resources | 38 | 3,667 |
El Paso | 346 | 3,941 | Genworth Financial, Cl. A | 221 a | 2,393 |
EOG Resources | 509 | 44,217 | Goldman Sachs Group | 128 | 17,528 |
Exxon Mobil | 3,842 | 227,293 | Hartford Financial Services Group | 185 | 3,730 |
FMC Technologies | 52 a | 3,216 | Health Care REIT | 96 b | 4,410 |
Halliburton | 3,484 | 98,284 | Host Hotels & Resorts | 283 | 3,716 |
Hess | 94 | 4,724 | IntercontinentalExchange | 27 a | 2,580 |
Marathon Oil | 203 | 6,189 | Invesco | 4,894 | 88,581 |
Murphy Oil | 70 | 3,749 | JPMorgan Chase & Co. | 2,386 | 86,755 |
National Oilwell Varco | 124 | 4,661 | KeyCorp | 439 | 3,235 |
Noble Energy | 58 | 4,047 | Lincoln National | 139 | 3,247 |
Occidental Petroleum | 1,865 | 136,294 | Loews | 115 | 4,041 |
Peabody Energy | 80 | 3,424 | Marsh & McLennan | 154 | 3,653 |
Plains Exploration & Production | 973 a | 23,235 | MetLife | 228 | 8,573 |
QEP Resources | 798 | 23,166 | Morgan Stanley | 4,513 | 111,426 |
Schlumberger | 1,656 | 88,338 | Northern Trust | 82 | 3,783 |
Southwestern Energy | 2,542 a | 83,174 | NYSE Euronext | 107 | 2,968 |
Spectra Energy | 193 | 3,926 | People’s United Financial | 307 | 3,905 |
Valero Energy | 1,496 | 23,592 | Plum Creek Timber | 120 b | 4,136 |
Williams | 212 | 3,844 | PNC Financial Services Group | 570 | 29,047 |
997,617 | Principal Financial Group | 132 | 3,043 | ||
Financial—10.2% | Progressive | 209 | 4,138 | ||
ACE | 609 | 32,563 | Prudential Financial | 121 | 6,119 |
Aflac | 2,181 | 103,052 | Regions Financial | 559 | 3,594 |
Allstate | 171 | 4,720 | Simon Property Group | 74 b | 6,693 |
American Express | 1,181 | 47,086 | State Street | 880 | 30,870 |
Ameriprise Financial | 79 | 3,443 | SunTrust Banks | 165 | 3,711 |
AON | 103 | 3,733 | T. Rowe Price Group | 73 | 3,196 |
Assured Guaranty | 3,232 | 49,934 | Travelers | 115 | 5,633 |
AvalonBay Communities | 41 | 4,314 | U.S. Bancorp | 4,881 | 101,525 |
Bank of America | 2,557 | 31,835 | Ventas | 79 | 3,990 |
BB & T | 214 | 4,734 | Vornado Realty Trust | 49 b | 3,972 |
Berkshire Hathaway, Cl. B | 405 a | 31,906 | Wells Fargo & Co. | 2,864 | 67,447 |
Capital One Financial | 131 | 4,960 | 1,053,440 | ||
Charles Schwab | 288 | 3,675 | Health Care—11.2% | ||
Chubb | 85 | 4,685 | Abbott Laboratories | 2,910 | 143,579 |
Citigroup | 18,569 a | 69,077 | Aetna | 133 | 3,554 |
CME Group | 17 | 4,217 | Allergan | 1,631 | 100,176 |
Comerica | 99 | 3,407 | AmerisourceBergen | 134 | 3,656 |
Discover Financial Services | 220 | 3,192 | Amgen | 724 a | 36,953 |
The Funds | 49 |
STATEMENT OF INVESTMENTS (continued) | |||||
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Health Care (continued) | Industrial (continued) | ||||
Baxter International | 2,066 | 87,929 | Danaher | 144 | 5,232 |
Becton Dickinson & Co. | 72 | 4,910 | Deere & Co. | 566 | 35,811 |
Biogen Idec | 82 a | 4,412 | Donaldson | 936 | 39,218 |
Boston Scientific | 626 a | 3,249 | Dover | 94 | 4,207 |
Bristol-Myers Squibb | 442 | 11,527 | Eaton | 642 | 44,606 |
C.R. Bard | 628 | 48,249 | Emerson Electric | 979 | 45,670 |
Cardinal Health | 892 | 26,724 | Expeditors International of Washington | 107 | 4,236 |
Celgene | 948 a | 48,841 | FedEx | 91 | 7,103 |
CIGNA | 114 | 3,673 | Fluor | 93 | 4,153 |
Covidien | 1,827 | 64,566 | General Dynamics | 97 | 5,419 |
Eli Lilly & Co. | 267 | 8,961 | General Electric | 5,269 | 76,295 |
Express Scripts | 139 a | 5,921 | Goodrich | 55 | 3,766 |
Forest Laboratories | 147 a | 4,012 | Honeywell International | 2,906 | 113,596 |
Genzyme | 78 a | 5,469 | Illinois Tool Works | 115 | 4,745 |
Gilead Sciences | 1,556 a | 49,574 | ITT | 102 | 4,335 |
Hospira | 71 a | 3,647 | Lockheed Martin | 70 | 4,866 |
Humana | 69 a | 3,298 | Norfolk Southern | 95 | 5,100 |
Intuitive Surgical | 13 a | 3,445 | Northrop Grumman | 79 | 4,275 |
Johnson & Johnson | 1,439 | 82,052 | Paccar | 98 | 4,017 |
Laboratory Corp. of America Holdings | 47 a | 3,413 | Parker Hannifin | 77 | 4,555 |
McKesson | 79 | 4,586 | Raytheon | 97 | 4,260 |
Mead Johnson Nutrition | 68 | 3,549 | Rockwell Automation | 69 | 3,529 |
Medco Health Solutions | 116 a | 5,044 | Rockwell Collins | 846 | 45,625 |
Medtronic | 1,516 | 47,724 | Southwest Airlines | 277 | 3,061 |
Merck & Co. | 1,916 | 67,367 | Tyco International | 131 | 4,884 |
Meridian Bioscience | 2,266 | 41,422 | Union Pacific | 577 | 42,086 |
Pfizer | 3,704 | 59,005 | United Parcel Service, Cl. B | 249 | 15,886 |
Resmed | 1,387 a | 41,804 | United Technologies | 797 | 51,972 |
St. Jude Medical | 122 a | 4,218 | Waste Management | 173 | 5,725 |
Stryker | 1,051 | 45,393 | 837,259 | ||
Thermo Fisher Scientific | 35 a | 1,474 | Information Technology—17.2% | ||
UnitedHealth Group | 293 | 9,294 | Accenture, Cl. A | 815 | 29,829 |
Varian Medical Systems | 803 a | 42,752 | Adobe Systems | 1,714 a | 47,581 |
WellPoint | 113 a | 5,614 | Agilent Technologies | 142 a | 3,830 |
Zimmer Holdings | 461 a | 21,745 | Altera | 135 | 3,330 |
1,162,781 | Amphenol, Cl. A | 1,072 | 43,652 | ||
Industrial—8.1% | Analog Devices | 152 | 4,238 | ||
3M | 171 | 13,432 | Apple | 1,113 a | 270,871 |
Boeing | 831 | 50,799 | Applied Materials | 412 | 4,281 |
C.H. Robinson Worldwide | 682 | 44,323 | Autodesk | 110 a | 3,053 |
Caterpillar | 1,858 | 121,067 | Automatic Data Processing | 1,197 | 46,216 |
CSX | 102 | 5,089 | Broadcom, Cl. A | 126 | 3,776 |
Cummins | 58 | 4,316 | Cisco Systems | 3,340 a | 66,967 |
50
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Information Technology (continued) | Materials (continued) | ||||
Citrix Systems | 66 a | 3,824 | Alcoa | 357 | 3,645 |
Cognizant Technology | Bemis | 112 | 3,233 | ||
Solutions, Cl. A | 1,296 a | 74,656 | Celanese, Ser. A | 815 | 21,761 |
Computer Sciences | 94 | 3,742 | Cliffs Natural Resources | 1,368 | 83,708 |
Compuware | 482 a | 3,461 | Dow Chemical | 325 | 7,920 |
Corning | 105 | 1,646 | E.I. du Pont de Nemours & Co. | 240 | 9,785 |
Dell | 505 a | 5,944 | Ecolab | 979 | 46,405 |
Dolby Laboratories, Cl. A | 669 a | 37,076 | Freeport-McMoRan | ||
eBay | 322 a | 7,483 | Copper & Gold | 426 | 30,663 |
EMC | 547 a | 9,977 | International Paper | 188 | 3,846 |
F5 Networks | 341 a | 29,814 | Monsanto | 911 | 47,964 |
Fidelity National | Newmont Mining | 122 | 7,481 | ||
Information Services | 122 | 3,152 | Nucor | 99 | 3,641 |
Fiserv | 83 a | 4,153 | PPG Industries | 60 | 3,950 |
FLIR Systems | 1,487 a | 37,353 | Praxair | 79 | 6,796 |
Google, Cl. A | 461 a | 207,459 | Precision Castparts | 397 | 44,932 |
Hewlett-Packard | 1,170 | 45,022 | Sigma-Aldrich | 72 | 3,828 |
Intel | 4,847 | 85,889 | United States Steel | 63 | 2,678 |
International Business Machines | 538 | 66,298 | Vulcan Materials | 96 | 3,529 |
Intuit | 105 a | 4,494 | 435,854 | ||
Juniper Networks | 1,099 a | 29,893 | Telecommunication | ||
Linear Technology | 119 | 3,409 | Services—1.6% | ||
MasterCard, Cl. A | 349 | 69,228 | American Tower, Cl. A | 113 a | 5,295 |
Micron Technology | 380 a | 2,457 | AT & T | 3,291 | 88,956 |
Microsoft | 4,967 | 116,625 | Frontier Communications | 595 | 4,599 |
Molex | 176 | 3,106 | Motorola | 728 a | 5,482 |
NetApp | 102 a | 4,125 | Sprint Nextel | 968 a | 3,949 |
Oracle | 2,848 | 62,314 | Verizon Communications | 1,704 | 50,285 |
Paychex | 1,859 | 46,271 | Windstream | 364 | 4,199 |
QUALCOMM | 1,558 | 59,687 | 162,765 | ||
Salesforce.com | 1,163 a | 127,790 | Utilities—2.2% | ||
SanDisk | 85 a | 2,825 | AES | 373 a | 3,820 |
Symantec | 284 a | 3,871 | Ameren | 186 | 5,221 |
Teradata | 1,135 a | 37,160 | American Electric Power | 137 | 4,851 |
Texas Instruments | 1,352 | 31,137 | CMS Energy | 285 | 4,988 |
Visa, Cl. A | 112 | 7,726 | Dominion Resources | 155 | 6,628 |
Western Union | 197 | 3,089 | DTE Energy | 111 | 5,200 |
Xerox | 472 | 3,984 | Duke Energy | 333 | 5,724 |
Xilinx | 140 | 3,381 | Entergy | 55 | 4,336 |
Yahoo! | 397 a | 5,193 | Exelon | 176 | 7,167 |
1,782,338 | NextEra Energy | 110 | 5,910 | ||
Materials—4.2% | Northeast Utilities | 170 | 4,925 | ||
Air Products & Chemicals | 1,352 | 100,089 | Pepco Holdings | 269 | 4,829 |
The Funds | 51 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Other Investments—14.1% | Shares | Value ($) |
Utilities (continued) | Registered Investment Company: | ||||
PG & E | 101 | 4,723 | BNY Mellon U.S. Core Equity | ||
Pinnacle West Capital | 116 | 4,623 | 130/30 Fund, CI. M | 98,697 c | 968,220 |
Public Service | Dreyfus Institutional Preferred | ||||
Enterprise Group | 147 | 4,698 | Plus Money Market Fund | 486,000 d | 486,000 |
Questar | 6,226 | 101,359 | Total Other Investments | ||
Sempra Energy | 683 | 34,778 | (cost $1,476,000) | 1,454,220 | |
Southern | 193 | 7,081 | Total Investments | ||
Wisconsin Energy | 80 | 4,459 | (cost $10,379,880) | 97.6% | 10,094,660 |
225,320 | Cash and Receivables (Net) | 2.4% | 251,409 | ||
Total Common Stocks | |||||
(cost $8,903,880) | 8,640,440 | Net Assets | 100.0% | 10,346,069 |
a | Non-income producing security. |
b | Investment in real estate investment trust. |
c | Investment in affiliated mutual fund. |
d | Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Information Technology | 17.2 | Industrial | 8.1 |
Health Care | 11.2 | Money Market Investment | 4.7 |
Consumer Discretionary | 10.5 | Materials | 4.2 |
Financial | 10.2 | Utilities | 2.2 |
Energy | 9.6 | Telecommunication Services | 1.6 |
Mutual Fund: Domestic | 9.4 | ||
Consumer Staples | 8.7 | 97.6 |
† Based on net assets. |
See notes to financial statements. |
52
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon Income Stock Fund | |||||
Common Stocks—100.5% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—12.8% | Financial (continued) | ||||
Carnival | 26,540 | 827,517 | Morgan Stanley | 32,110 | 792,796 |
Home Depot | 26,600 | 739,746 | People’s United Financial | 31,010 | 394,447 |
Johnson Controls | 58,560 | 1,553,597 | Prudential Financial | 12,460 | 630,102 |
Mattel | 36,800 | 772,432 | Travelers | 14,211 | 696,055 |
News, Cl. A | 103,300 | 1,298,481 | U.S. Bancorp | 102,330 | 2,128,464 |
Omnicom Group | 78,960 | 2,764,390 | Wells Fargo & Co. | 67,640 | 1,592,922 |
Staples | 35,410 | 629,236 | 20,576,927 | ||
Time Warner | 105,670 | 3,167,987 | Health Care—8.8% | ||
11,753,386 | Cardinal Health | 22,690 | 679,792 | ||
Consumer Staples—9.8% | Johnson & Johnson | 9,260 | 528,005 | ||
Clorox | 11,550 | 748,671 | Merck & Co. | 93,320 | 3,281,131 |
CVS Caremark | 28,440 | 767,880 | Pfizer | 225,868 | 3,598,077 |
Dr. Pepper Snapple Group | 16,250 | 598,325 | 8,087,005 | ||
Kraft Foods, Cl. A | 16,870 | 505,257 | Industrial—10.8% | ||
PepsiCo | 53,460 | 3,431,063 | Caterpillar | 14,100 | 918,756 |
Philip Morris International | 57,350 | 2,950,084 | Dover | 20,530 | 918,923 |
9,001,280 | Eaton | 9,620 | 668,398 | ||
Energy—10.4% | General Electric | 202,772 | 2,936,139 | ||
ConocoPhillips | 74,880 | 3,925,958 | Norfolk Southern | 20,100 | 1,078,968 |
Exxon Mobil | 56,340 | 3,333,074 | Pitney Bowes | 150,460 | 2,894,850 |
Marathon Oil | 16,100 | 490,889 | United Technologies | 7,730 | 504,073 |
Occidental Petroleum | 12,400 | 906,192 | 9,920,107 | ||
Schlumberger | 15,820 | 843,681 | Information Technology—6.2% | ||
9,499,794 | AOL | 23,706 a | 526,747 | ||
Exchange Traded Funds—.2% | Cisco Systems | 57,040 a | 1,143,652 | ||
iShares Russell 1000 Value Index Fund | 3,510 | 193,506 | Hewlett-Packard | 10,510 | 404,425 |
Financial—22.5% | Microsoft | 97,740 | 2,294,935 | ||
American Express | 12,860 | 512,728 | QUALCOMM | 33,370 | 1,278,405 |
Ameriprise Financial | 19,530 | 851,117 | 5,648,164 | ||
Bank of America | 235,238 | 2,928,713 | Materials—4.4% | ||
Berkshire Hathaway, Cl. B | 6,050 a | 476,619 | Air Products & Chemicals | 13,440 | 994,963 |
Capital One Financial | 13,120 | 496,723 | Dow Chemical | 29,930 | 729,394 |
Comerica | 14,740 | 507,203 | Freeport-McMoRan Copper & Gold | 12,090 | 870,238 |
Fidelity National Financial, Cl. A | 55,170 | 800,517 | Packaging Corp. of America | 64,710 | 1,442,386 |
Franklin Resources | 4,990 | 481,585 | 4,036,981 | ||
Goldman Sachs Group | 8,730 | 1,195,486 | Telecommunication Services—12.3% | ||
JPMorgan Chase & Co. | 117,639 | 4,277,354 | AT & T | 134,455 | 3,634,319 |
Marsh & McLennan | 22,600 | 536,072 | Verizon Communications | 32,280 | 952,583 |
MetLife | 33,990 | 1,278,024 | Vodafone Group, ADR | 151,290 b | 3,658,192 |
The Funds | 53 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Income Stock Fund (continued) | |||||
Investment of Cash Collateral | |||||
Common Stocks (continued) | Shares | Value ($) | for Securities Loaned—.2% | Shares | Value ($) |
Telecommunication | Registered Investment Company; | ||||
Services (continued) | Dreyfus Institutional Cash | ||||
Windstream | 264,132 | 3,046,763 | Advantage Plus Fund | ||
11,291,857 | (cost $226,325) | 226,325 c | 226,325 | ||
Utilities—2.3% | Total Investments | ||||
Entergy | 21,620 | 1,704,521 | (cost $87,173,918) | 100.7% | 92,310,223 |
Questar | 22,750 | 370,370 | |||
Liabilities, Less Cash | |||||
2,074,891 | and Receivables | (.7%) | (677,494) | ||
Total Common Stocks | |||||
(cost $86,947,593) | 92,083,898 | Net Assets | 100.0% | 91,632,729 |
ADR—American Depository Receipts |
a Non-income producing security. |
b Security, or portion thereof, on loan.At August 31, 2010, the total market value of the fund’s security on loan is $225,672 and the total market value of the collateral held by the |
fund is $226,325. |
c Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Financial | 22.5 | Information Technology | 6.2 |
Consumer Discretionary | 12.8 | Materials | 4.4 |
Telecommunication Services | 12.3 | Utilities | 2.3 |
Industrial | 10.8 | Exchange Traded Funds | .2 |
Energy | 10.4 | Money Market Investment | .2 |
Consumer Staples | 9.8 | ||
Health Care | 8.8 | 100.7 | |
† Based on net assets. | |||
See notes to financial statements. |
54
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon Mid Cap Stock Fund | |||||
Common Stocks—100.3% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—12.3% | Energy (continued) | ||||
Abercrombie & Fitch, Cl. A | 231,700 a | 8,016,820 | Pride International | 231,300 b | 5,447,115 |
Advance Auto Parts | 122,000 | 6,645,340 | RPC | 446,600 | 7,284,046 |
Boyd Gaming | 792,300 a,b | 5,498,562 | 76,012,627 | ||
Chipotle Mexican Grill | 85,900 b | 12,956,297 | Financial—21.8% | ||
Darden Restaurants | 173,100 | 7,142,106 | Alexandria Real Estate Equities | 163,400 a,c | 11,335,058 |
DeVry | 102,600 | 3,910,086 | AMB Property | 396,600 c | 9,435,114 |
Dollar Tree | 164,400 b | 7,452,252 | Apollo Investment | 799,900 | 7,655,043 |
Foot Locker | 908,800 | 10,669,312 | Camden Property Trust | 381,600 c | 17,462,016 |
Guess? | 401,100 | 12,959,541 | CB Richard Ellis Group, Cl. A | 737,700 b | 12,113,034 |
Gymboree | 150,800 a,b | 5,674,604 | CNO Financial Group | 1,800,100 a,b | 8,514,473 |
Interpublic Group of Cos. | 812,200 b | 6,928,066 | Comerica | 365,600 | 12,580,296 |
Lear | 166,200 b | 12,242,292 | Digital Realty Trust | 134,800 a,c | 7,989,596 |
Macy’s | 471,300 | 9,162,072 | Fifth Third Bancorp | 725,000 | 8,011,250 |
MDC Holdings | 281,300 | 7,488,206 | Forest City Enterprises, Cl. A | 550,000 a,b | 6,198,500 |
Netflix | 54,500 a,b | 6,840,840 | Genworth Financial, Cl. A | 641,700 b | 6,949,611 |
Royal Caribbean Cruises | 242,000 a,b | 5,943,520 | Hartford Financial Services Group | 250,900 | 5,058,144 |
Toll Brothers | 552,800 b | 9,552,384 | Host Hotels & Resorts | 921,059 a,c | 12,093,505 |
Urban Outfitters | 197,800 b | 5,997,296 | Huntington Bancshares | 2,589,800 | 13,700,042 |
145,079,596 | KeyCorp | 1,638,200 | 12,073,534 | ||
Consumer Staples—4.2% | Macerich | 196,760 | 8,149,799 | ||
Dr. Pepper Snapple Group | 250,100 | 9,208,682 | MGIC Investment | 767,200 a,b | 5,539,184 |
Energizer Holdings | 249,700 b | 15,743,585 | MSCI, Cl. A | 156,400 b | 4,676,360 |
Herbalife | 148,000 | 8,225,840 | New York Community Bancorp | 586,600 | 9,321,074 |
McCormick & Co. | 155,100 | 6,183,837 | Raymond James Financial | 382,200 a | 8,821,176 |
Ralcorp Holdings | 172,400 b | 10,283,660 | Rayonier | 260,386 c | 12,316,258 |
49,645,604 | Realty Income | 371,500 a,c | 12,107,185 | ||
Energy—6.4% | Reinsurance Group of America | 294,500 | 12,881,430 | ||
Brigham Exploration | 386,400 b | 5,919,648 | RenaissanceRe Holdings | 103,600 | 5,883,444 |
Cimarex Energy | 243,000 | 15,897,060 | SEI Investments | 190,400 | 3,370,080 |
Complete Production Services | 336,300 b | 5,932,332 | SunTrust Banks | 304,200 | 6,841,458 |
Forest Oil | 502,400 b | 13,122,688 | Synovus Financial | 886,700 a | 1,826,602 |
Newfield Exploration | 183,800 b | 8,824,238 | Waddell & Reed Financial, Cl. A | 292,300 | 6,725,823 |
Patterson-UTI Energy | 599,600 | 8,850,096 | Willis Group Holdings | 313,900 | 9,128,212 |
Plains Exploration & Production | 198,300 b | 4,735,404 | 258,757,301 |
The Funds | 55 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Mid Cap Stock Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Health Care—12.3% | Industrial (continued) | ||||
Alexion Pharmaceuticals | 164,500 b | 9,289,315 | Trinity Industries | 301,200 | 5,156,544 |
CareFusion | 262,100 b | 5,656,118 | URS | 124,500 b | 4,440,915 |
DaVita | 117,000 b | 7,560,540 | WABCO Holdings | 197,900 b | 6,977,954 |
Edwards Lifesciences | 163,200 b | 9,395,424 | Waste Connections | 312,600 b | 11,800,650 |
Health Net | 412,500 b | 9,850,500 | 180,524,649 | ||
HeartWare International | 97,800 a,b | 6,333,528 | Information Technology—15.9% | ||
Hologic | 359,500 b | 5,101,305 | Acme Packet | 192,700 b | 6,474,720 |
Human Genome Sciences | 324,600 b | 9,442,614 | Akamai Technologies | 171,100 b | 7,882,577 |
King Pharmaceuticals | 739,600 b | 6,441,916 | Alliance Data Systems | 179,400 a,b | 10,080,486 |
Pharmaceutical Product Development | 376,600 | 8,650,502 | ANSYS | 323,700 b | 12,553,086 |
Resmed | 226,200 b | 6,817,668 | Check Point Software Technologies | 198,500 a,b | 6,925,665 |
Salix Pharmaceuticals | 219,000 b | 8,291,340 | Cognizant Technology Solutions, Cl. A | 213,600 b | 12,304,428 |
STERIS | 198,150 | 5,700,776 | Cree | 241,300 b | 12,919,202 |
Thoratec | 239,400 a,b | 7,708,680 | F5 Networks | 243,200 a,b | 21,262,976 |
United Therapeutics | 222,800 b | 10,297,816 | JDS Uniphase | 813,300 b | 7,474,227 |
Universal Health Services, Cl. B | 456,300 | 14,327,820 | Lexmark International, Cl. A | 205,000 b | 7,172,950 |
Vertex Pharmaceuticals | 426,800 b | 14,229,512 | NetApp | 204,600 b | 8,274,024 |
145,095,374 | Novellus Systems | 236,700 b | 5,515,110 | ||
Industrial—15.2% | Quest Software | 586,600 b | 12,570,838 | ||
AMETEK | 340,050 | 14,618,749 | Rovi | 338,100 b | 14,710,731 |
BE Aerospace | 422,200 b | 11,378,290 | Skyworks Solutions | 587,500 b | 10,492,750 |
Cooper Industries | 198,000 | 8,333,820 | SuccessFactors | 412,000 b | 8,693,200 |
Cummins | 105,000 | 7,813,050 | TiVo | 799,200 b | 6,281,712 |
Donaldson | 303,500 | 12,716,650 | Trimble Navigation | 421,300 b | 11,851,169 |
IDEX | 320,500 | 9,547,695 | Veeco Instruments | 144,000 a,b | 4,785,120 |
JB Hunt Transport Services | 321,900 | 10,539,006 | 188,224,971 | ||
Joy Global | 257,900 | 14,633,246 | Materials—7.2% | ||
Kansas City Southern | 400,400 b | 13,441,428 | Agrium | 92,100 | 6,407,397 |
KBR | 535,900 | 12,432,880 | Albemarle | 151,500 | 6,073,635 |
Manpower | 250,700 | 10,654,750 | Carpenter Technology | 278,700 | 8,642,487 |
Navistar International | 187,700 b | 7,860,876 | Cliffs Natural Resources | 202,500 | 12,390,975 |
Parker Hannifin | 98,200 | 5,809,512 | Cytec Industries | 216,400 | 10,263,852 |
Roper Industries | 123,200 | 7,155,456 | Eastman Chemical | 100,500 | 6,185,775 |
Textron | 305,400 a | 5,213,178 | Greif, Cl. A | 168,000 | 9,550,800 |
56
BNY Mellon Mid Cap Stock Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Other Investment—.7% | Shares | Value ($) |
Materials (continued) | Registered Investment Company; | ||||
Lubrizol | 152,800 | 14,257,768 | Dreyfus Institutional Preferred | ||
Solutia | 438,800 b | 5,941,352 | Plus Money Market Fund | ||
Titanium Metals | 310,900 b | 5,633,508 | (cost $7,623,000) | 7,623,000 d | 7,623,000 |
85,347,549 | Investment of Cash Collateral | ||||
Telecommunication Services—.9% | for Securities Loaned—9.0% | ||||
SBA Communications, Cl. A | 298,400 a,b | 10,682,720 | Registered Investment Company; | ||
Utilities—4.1% | Dreyfus Institutional Cash | ||||
ITC Holdings | 217,400 | 12,600,504 | Advantage Plus Fund | ||
National Fuel Gas | 254,100 | 10,921,218 | (cost $106,687,288) | 106,687,288 d | 106,687,288 |
Northeast Utilities | 256,100 | 7,419,217 | |||
Total Investments | |||||
UGI | 218,000 | 6,016,800 | (cost $1,247,457,482) | 110.0% 1,302,382,836 | |
Wisconsin Energy | 210,700 a | 11,744,418 | |||
Liabilities, Less Cash | |||||
48,702,157 | and Receivables | (10.0%) | (118,217,521) | ||
Total Common Stocks | |||||
(cost $1,133,147,194) | 1,188,072,548 | Net Assets | 100.0% 1,184,165,315 |
a Security, or portion thereof, on loan.At August 31, 2010, the total market value of the fund’s securities on loan is $113,678,427 and the total market value of the collateral held |
by the fund is $120,209,684, consisting of cash collateral of $106,687,288 and U.S. Government and agency securities valued at $13,522,396. |
b Non-income producing security. |
c Investment in real estate investment trust. |
d Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Financial | 21.8 | Materials | 7.2 |
Information Technology | 15.9 | Energy | 6.4 |
Industrial | 15.2 | Consumer Staples | 4.2 |
Consumer Discretionary | 12.3 | Utilities | 4.1 |
Health Care | 12.3 | Telecommunication Services | .9 |
Money Market Investments | 9.7 | 110.0 | |
† Based on net assets. | |||
See notes to financial statements. |
The Funds | 57 |
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon Small Cap Stock Fund | |||||
Common Stocks—99.7% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—16.6% | Financial (continued) | ||||
BJ’s Restaurants | 174,800 a,b | 4,184,712 | BioMed Realty Trust | 253,840 a,c | 4,338,126 |
Cracker Barrel Old Country Store | 98,100 | 4,376,241 | Brandywine Realty Trust | 196,600 c | 2,160,634 |
CROCS | 411,100 a,b | 5,138,750 | CNO Financial Group | 952,000 b | 4,502,960 |
Gymboree | 83,500 a,b | 3,142,105 | Columbia Banking System | 237,100 a | 4,222,751 |
Hibbett Sports | 146,800 b | 3,402,824 | Community Bank System | 127,100 | 2,869,918 |
JAKKS Pacific | 250,100 a,b | 3,726,490 | DiamondRock Hospitality | 532,200 b,c | 4,662,072 |
KB Home | 219,500 a | 2,263,045 | DuPont Fabros Technology | 181,800 c | 4,492,278 |
Lear | 69,300 b | 5,104,638 | East West Bancorp | 232,000 | 3,391,840 |
Maidenform Brands | 168,700 b | 4,499,229 | Entertainment Properties Trust | 110,570 a,c | 4,764,461 |
MDC Partners, Cl. A | 187,400 a | 2,188,832 | Extra Space Storage | 99,170 a,c | 1,516,309 |
Pier 1 Imports | 440,500 a,b | 2,687,050 | First Midwest Bancorp | 247,840 a | 2,721,283 |
Ruby Tuesday | 391,500 a,b | 3,605,715 | Kite Realty Group Trust | 585,000 c | 2,439,450 |
Saks | 804,510 a,b | 6,347,584 | KKR Financial Holdings | 602,600 a,c | 4,688,228 |
Shuffle Master | 567,900 b | 4,514,805 | MGIC Investment | 222,300 a,b | 1,605,006 |
Skechers USA, Cl. A | 181,400 b | 4,620,258 | National Retail Properties | 205,700 a,c | 5,010,852 |
Talbots | 322,553 a,b | 3,219,079 | Och-Ziff Capital | ||
Vitamin Shoppe | 272,600 | 6,654,166 | Management Group, Cl. A | 332,900 a | 4,147,934 |
69,675,523 | Portfolio Recovery Associates | 58,600 a,b | 3,732,820 | ||
Consumer Staples—2.1% | Post Properties | 145,400 c | 3,693,160 | ||
Diamond Foods | 50,200 a | 2,119,946 | S&T Bancorp | 137,900 | 2,340,163 |
Nu Skin Enterprises, Cl. A | 110,400 | 2,822,928 | Signature Bank | 116,040 b | 4,240,102 |
TreeHouse Foods | 91,200 b | 3,784,800 | Susquehanna Bancshares | 468,900 | 3,708,999 |
8,727,674 | Wintrust Financial | 136,500 | 3,925,740 | ||
Energy—5.9% | 82,127,266 | ||||
Brigham Exploration | 202,500 b | 3,102,300 | Health Care—12.4% | ||
CARBO Ceramics | 63,400 | 4,801,282 | Chemed | 79,500 | 3,967,050 |
Complete Production Services | 183,200 b | 3,231,648 | Cooper | 124,200 | 5,010,228 |
Gulfport Energy | 207,300 b | 2,357,001 | Cubist Pharmaceuticals | 162,000 b | 3,568,860 |
Lufkin Industries | 113,300 | 4,380,178 | Emergent Biosolutions | 93,400 b | 1,696,144 |
SM Energy | 63,590 | 2,415,784 | eResearch Technology | 346,900 b | 2,568,795 |
Venoco | 252,400 a,b | 4,467,480 | Health Net | 204,900 b | 4,893,012 |
24,755,673 | Healthsouth | 164,400 a,b | 2,673,144 | ||
Financial—19.6% | HeartWare International | 52,300 a,b | 3,386,948 | ||
Arthur J. Gallagher & Co. | 118,800 | 2,952,180 | Inspire Pharmaceuticals | 358,231 b | 1,737,420 |
58
BNY Mellon Small Cap Stock Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Health Care (continued) | Information | ||||
Integra LifeSciences Holdings | 78,100 b | 2,715,537 | Technology—18.2% | ||
PAREXEL International | 129,100 b | 2,567,799 | Acme Packet | 100,000 b | 3,360,000 |
Regeneron Pharmaceuticals | 64,700 a,b | 1,422,106 | Applied Micro Circuits | 196,400 b | 2,117,192 |
Salix Pharmaceuticals | 121,700 b | 4,607,562 | Brooks Automation | 368,900 b | 2,501,142 |
Savient Pharmaceuticals | 383,400 a,b | 5,528,628 | Coherent | 85,700 b | 3,183,755 |
Sirona Dental Systems | 83,800 b | 2,641,376 | Commvault Systems | 107,200 b | 2,631,760 |
Volcano | 140,600 b | 3,107,260 | Concur Technologies | 111,880 a,b | 5,232,628 |
52,091,869 | Finisar | 301,200 a,b | 3,852,348 | ||
Industrial—17.5% | Insight Enterprises | 238,600 b | 3,135,204 | ||
Actuant, Cl. A | 218,200 | 4,324,724 | JDS Uniphase | 284,200 b | 2,611,798 |
Acuity Brands | 49,200 | 1,906,008 | Littelfuse | 60,300 b | 2,245,572 |
AMR | 401,100 a,b | 2,450,721 | Microsemi | 288,120 b | 4,033,680 |
ArvinMeritor | 238,200 b | 3,113,274 | MKS Instruments | 203,400 a,b | 3,510,684 |
Atlas Air Worldwide Holdings | 58,000 b | 2,513,720 | Netgear | 169,100 b | 3,571,392 |
Baldor Electric | 119,600 a | 4,195,568 | NetScout Systems | 197,000 b | 3,118,510 |
BE Aerospace | 95,300 b | 2,568,335 | Rackspace Hosting | 123,600 a,b | 2,433,684 |
Cenveo | 451,178 b | 2,476,967 | Riverbed Technology | 117,700 a,b | 4,514,972 |
CLARCOR | 112,700 | 3,791,228 | Skyworks Solutions | 253,390 a,b | 4,525,545 |
Con-way | 86,600 | 2,269,786 | Sourcefire | 84,200 b | 2,136,154 |
Gardner Denver | 58,800 | 2,807,112 | SuccessFactors | 147,700 a,b | 3,116,470 |
Healthcare Services Group | 228,300 | 4,741,791 | Synaptics | 42,800 a,b | 1,130,776 |
Interface, Cl. A | 316,500 | 4,057,530 | Taleo, Cl. A | 210,700 b | 5,400,241 |
Kansas City Southern | 75,000 b | 2,517,750 | Veeco Instruments | 121,600 a,b | 4,040,768 |
Knight Transportation | 70,900 a | 1,335,756 | Wright Express | 117,300 b | 3,766,503 |
Middleby | 43,000 a,b | 2,364,570 | 76,170,778 | ||
Navistar International | 45,500 b | 1,905,540 | Materials—5.2% | ||
Simpson Manufacturing | 148,300 | 3,268,532 | Agrium | 31,800 | 2,212,326 |
Tetra Tech | 194,300 b | 3,526,545 | Allied Nevada Gold | 105,600 a,b | 2,476,320 |
Titan International | 191,500 a | 1,941,810 | Carpenter Technology | 62,000 | 1,922,620 |
TransDigm Group | 54,900 | 3,178,161 | Cytec Industries | 94,700 | 4,491,621 |
Triumph Group | 60,000 a | 3,982,800 | Ferro | 391,800 b | 4,192,260 |
WABCO Holdings | 107,800 b | 3,801,028 | RTI International Metals | 151,700 b | 4,186,920 |
Watsco | 80,900 | 4,154,215 | Solutia | 152,500 b | 2,064,850 |
73,193,471 | 21,546,917 |
The Funds | 59 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Small Cap Stock Fund (continued) | |||||
Investment of Cash Collateral | |||||
Common Stocks (continued) | Shares | Value ($) | for Securities Loaned—16.7% | Shares | Value ($) |
Utilities—2.2% | Registered | ||||
Cleco | 174,000 a | 4,929,420 | Investment Company; | ||
El Paso Electric | 186,400 b | 4,277,880 | Dreyfus | ||
9,207,300 | Institutional Cash | ||||
Advantage Plus Fund | |||||
Total Common Stocks | (cost $70,173,617) | 70,173,617 d | 70,173,617 | ||
(cost $420,669,177) | 417,496,471 | ||||
Total Investments | |||||
Other Investment—.8% | (cost $494,174,794) | 117.2% | 491,002,088 | ||
Registered Investment Company; | Liabilities, Less Cash | ||||
Dreyfus Institutional Preferred | and Receivables | (17.2%) | (72,156,284) | ||
Plus Money Market Fund | Net Assets | 100.0% | 418,845,804 | ||
(cost $3,332,000) | 3,332,000 d | 3,332,000 |
a Security, or portion thereof, on loan.At August 31, 2010, the total market value of the fund’s securities on loan is $67,775,173 and the total market value of the collateral held by |
the fund is $70,173,617. |
b Non-income producing security. |
c Investment in real estate investment trust. |
d Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Financial | 19.6 | Energy | 5.9 |
Information Technology | 18.2 | Materials | 5.2 |
Industrial | 17.5 | Utilities | 2.2 |
Money Market Investments | 17.5 | Consumer Staples | 2.1 |
Consumer Discretionary | 16.6 | ||
Health Care | 12.4 | 117.2 | |
† Based on net assets. | |||
See notes to financial statements. |
60
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon U.S. Core Equity 130/30 Fund | |||||
Common Stocks—131.7% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—19.8% | Energy—11.8% | ||||
Amazon.com | 36,450 a,b | 4,550,054 | Alpha Natural Resources | 22,950 a,b | 852,134 |
Autoliv | 50,310 b | 2,723,783 | Anadarko Petroleum | 35,280 b | 1,622,527 |
Carnival | 55,380 b | 1,726,748 | Apache | 10,230 b | 919,166 |
DIRECTV, Cl. A | 24,540 a | 930,557 | Chevron | 42,320 b | 3,138,451 |
Home Depot | 134,290 b | 3,734,605 | ConocoPhillips | 47,980 b | 2,515,591 |
Johnson Controls | 20,100 b | 533,253 | ENSCO, ADR | 66,290 b | 2,726,508 |
Las Vegas Sands | 22,210 a | 629,209 | EOG Resources | 15,520 b | 1,348,222 |
Limited Brands | 18,290 | 431,644 | Hess | 50,980 b | 2,561,745 |
Macy’s | 95,650 b | 1,859,436 | Newfield Exploration | 48,130 a,b | 2,310,721 |
Mattel | 53,310 | 1,118,977 | Occidental Petroleum | 41,110 b | 3,004,319 |
Netflix | 3,420 a,b | 429,278 | Valero Energy | 64,810 b | 1,022,054 |
Newell Rubbermaid | 141,550 b | 2,126,081 | 22,021,438 | ||
News, Cl. A | 266,690 b | 3,352,293 | Exchange Traded Funds—2.9% | ||
Nordstrom | 128,790 b | 3,724,607 | Standard & Poor’s | ||
Staples | 103,070 b | 1,831,554 | Depository Receipts | ||
Target | 101,920 b | 5,214,227 | S&P 500 ETF Trust | 50,980 | 5,368,704 |
Time Warner | 67,730 | 2,030,545 | Financial—12.6% | ||
36,946,851 | American Express | 69,040 b | 2,752,625 | ||
Consumer Staples—17.2% | Bank of America | 310,980 b | 3,871,700 | ||
Archer-Daniels-Midland | 36,200 b | 1,114,236 | Capital One Financial | 63,910 b | 2,419,633 |
Clorox | 60,600 b | 3,928,092 | Franklin Resources | 13,790 b | 1,330,873 |
Energizer Holdings | 88,560 a,b | 5,583,708 | Genworth Financial, Cl. A | 112,060 a,b | 1,213,610 |
Kraft Foods, Cl. A | 51,410 b | 1,539,730 | Goldman Sachs Group | 6,220 b | 851,767 |
Molson Coors Brewing, Cl. B | 14,360 b | 625,522 | JPMorgan Chase & Co. | 119,540 b | 4,346,474 |
Nestle, ADR | 45,850 b | 2,363,568 | Lincoln National | 57,910 b | 1,352,778 |
PepsiCo | 116,490 b | 7,476,328 | MetLife | 46,960 b | 1,765,696 |
Philip Morris International | 112,454 b | 5,784,634 | Morgan Stanley | 39,280 b | 969,823 |
Unilever, ADR | 101,900 b | 2,706,464 | Wells Fargo & Co. | 81,030 b | 1,908,257 |
Wal-Mart Stores | 18,540 | 929,596 | XL Group | 35,450 b | 634,910 |
32,051,878 | 23,418,146 |
The Funds | 61 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon U.S. Core Equity 130/30 Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Health Care—22.0% | Industrial (continued) | ||||
Allergan | 8,500 b | 522,070 | General Electric | 83,000 b | 1,201,840 |
Allscripts Healthcare Solutions | 153,010 a,b | 2,556,797 | Ingersoll-Rand | 37,300 b | 1,213,369 |
AMERIGROUP | 10,990 a,b | 405,530 | Norfolk Southern | 30,790 b | 1,652,807 |
AmerisourceBergen | 112,280 b | 3,062,998 | Raytheon | 47,050 b | 2,066,436 |
Amylin Pharmaceuticals | 205,880 a,b | 4,228,775 | Stanley Black & Decker | 16,360 | 877,550 |
Celgene | 8,460 a,b | 435,859 | Textron | 75,340 b | 1,286,054 |
CIGNA | 40,920 b | 1,318,442 | Tyco International | 30,830 b | 1,149,342 |
Covidien | 77,260 b | 2,730,368 | 16,515,632 | ||
Dendreon | 25,170 a | 902,093 | Information | ||
Edwards Lifesciences | 10,010 a,b | 576,276 | Technology—26.0% | ||
Express Scripts | 16,720 a,b | 712,272 | Akamai Technologies | 30,330 a,b | 1,397,303 |
Gilead Sciences | 40,130 a | 1,278,542 | Apple | 33,970 a,b | 8,267,279 |
Hospira | 50,890 a,b | 2,613,710 | BMC Software | 35,510 a,b | 1,280,491 |
Human Genome Sciences | 100,600 a,b | 2,926,454 | Cisco Systems | 147,140 a,b | 2,950,157 |
Illumina | 10,930 a | 468,788 | EMC | 83,530 a,b | 1,523,587 |
King Pharmaceuticals | 249,540 a,b | 2,173,493 | Equinix | 17,510 a,b | 1,597,087 |
Mednax | 15,920 a,b | 737,733 | Google, Cl. A | 8,850 a,b | 3,982,677 |
Merck & Co. | 49,734 b | 1,748,647 | Informatica | 154,000 a,b | 4,952,640 |
Pfizer | 263,720 b | 4,201,060 | International | ||
Salix Pharmaceuticals | 19,110 a,b | 723,505 | Business Machines | 20,750 b | 2,557,023 |
St. Jude Medical | 56,610 a,b | 1,957,008 | Microsoft | 89,880 b | 2,110,382 |
Thermo Fisher Scientific | 29,310 a,b | 1,234,537 | Motorola | 585,200 a,b | 4,406,556 |
Universal Health Services, Cl. B | 44,700 | 1,403,580 | NetApp | 91,050 a,b | 3,682,062 |
Warner Chilcott, Cl. A | 20,250 a,b | 575,505 | Oracle | 204,130 b | 4,466,364 |
Zimmer Holdings | 32,710 a,b | 1,542,931 | Teradata | 131,344 a,b | 4,300,203 |
41,036,973 | VMware, Cl. A | 11,028 a | 866,470 | ||
Industrial—8.9% | 48,340,281 | ||||
AMR | 110,200 a,b | 673,322 | Materials—2.2% | ||
Caterpillar | 42,370 b | 2,760,829 | CF Industries Holdings | 15,880 b | 1,468,900 |
Cummins | 20,320 b | 1,512,011 | E.I. du Pont de Nemours & Co. | 62,650 b | 2,554,241 |
Dover | 47,410 b | 2,122,072 | 4,023,141 |
62
BNY Mellon U.S. Core Equity 130/30 Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Other Investment—1.6% | Shares | Value ($) |
Telecommunication Services—4.4% | Registered | ||||
AT & T | 183,400 b | 4,957,302 | Investment Company; | ||
QUALCOMM | 86,530 | 3,314,964 | Dreyfus | ||
8,272,266 | Institutional Preferred | ||||
Plus Money Market Fund | |||||
Utilities—3.9% | (cost $2,949,000) | 2,949,000 c | 2,949,000 | ||
American Electric Power | 33,900 b | 1,200,399 | |||
Entergy | 25,130 b | 1,981,249 | Total Investments | ||
NextEra Energy | 29,730 | 1,597,393 | (cost $246,839,925) | 133.3% | 248,102,773 |
Public Service Enterprise Group | 74,450 b | 2,379,422 | Liabilities, Less Cash | ||
7,158,463 | and Receivables | (33.3%) | (61,957,716) | ||
Total Common Stocks | Net Assets | 100.0% | 186,145,057 | ||
(cost $243,890,925) | 245,153,773 |
ADR—American Depository Receipts | |
a | Non-income producing security. |
b | Held by a broker as collateral for open short positions. |
c | Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Information Technology | 26.0 | Telecommunication Services | 4.4 |
Health Care | 22.0 | Utilities | 3.9 |
Consumer Discretionary | 19.8 | Exchange Traded Funds | 2.9 |
Consumer Staples | 17.2 | Materials | 2.2 |
Financial | 12.6 | Money Market Investments | 1.6 |
Energy | 11.8 | ||
Industrial | 8.9 | 133.3 | |
† Based on net assets. | |||
See notes to financial statements. |
The Funds | 63 |
STATEMENT OF SECURITIES SOLD SHORT
August 31, 2010
BNY Mellon U.S. Core Equity 130/30 Fund | |||||
Common Stocks—33.0% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—5.7% | Health Care (continued) | ||||
Big Lots | 28,330 a | 885,595 | Charles River | ||
Genuine Parts | 35,020 | 1,468,389 | Laboratories International | 19,340 a | 546,355 |
J Crew Group | 31,540 a | 961,655 | Covance | 28,330 a | 1,074,557 |
J.C. Penney | 41,580 | 831,600 | C.R. Bard | 9,210 | 707,605 |
NIKE, Cl. B | 26,960 | 1,887,200 | Dentsply International | 37,590 | 1,045,754 |
Polo Ralph Lauren | 7,750 | 586,985 | Gen-Probe | 31,310 a | 1,409,889 |
Ross Stores | 26,420 | 1,311,225 | Haemonetics | 20,840 a | 1,085,347 |
Starwood Hotels & | Intuitive Surgical | 4,340 a | 1,150,230 | ||
Resorts Worldwide | 19,860 | 928,058 | Mylan | 53,090 a | 911,024 |
Under Armour, Cl. A | 25,150 a | 902,130 | Techne | 21,910 | 1,264,864 |
Urban Outfitters | 29,960 a | 908,387 | VCA Antech | 29,740 a | 587,960 |
10,671,224 | 14,399,091 | ||||
Consumer Staples—8.3% | Information | ||||
Campbell Soup | 75,450 | 2,811,267 | Technology—10.6% | ||
Church & Dwight | 28,380 | 1,737,707 | Altera | 106,360 | 2,623,901 |
Constellation Brands, Cl. A | 58,800 a | 979,608 | Finisar | 135,470 a | 1,732,661 |
Flowers Foods | 86,170 | 2,226,633 | International Rectifier | 67,590 a | 1,240,277 |
General Mills | 56,870 | 2,056,419 | Linear Technology | 49,400 | 1,415,310 |
Hain Celestial Group | 46,350 a | 1,035,459 | Marvell Technology Group | 96,330 a | 1,535,500 |
H.J. Heinz | 61,470 | 2,842,373 | National Semiconductor | 140,980 | 1,777,758 |
Kroger | 48,950 | 965,784 | Skyworks Solutions | 104,420 a | 1,864,941 |
Tyson Foods, Cl. A | 52,390 | 858,148 | Symantec | 104,530 a | 1,424,744 |
15,513,398 | Texas Instruments | 44,540 | 1,025,756 | ||
Energy—.5% | Vishay Intertechnology | 212,400 a | 1,633,356 | ||
Baker Hughes | 22,190 | 833,900 | Xilinx | 98,990 | 2,390,609 |
Health Care—7.7% | Yahoo! | 77,650 a | 1,015,662 | ||
AstraZeneca, ADR | 28,880 | 1,427,538 | 19,680,475 | ||
Auxilium Pharmaceuticals | 26,290 a | 681,174 | Materials—0.2% | ||
Becton Dickinson & Co. | 10,200 | 695,538 | Sigma-Aldrich | 7,950 | 422,702 |
Biogen Idec | 20,550 a | 1,105,590 | Total Securities Sold Short | ||
CareFusion | 32,700 a | 705,666 | (proceeds $65,318,890) | 33.0% | 61,520,790 |
ADR—American Depository Receipts |
a Non-income producing security. |
See notes to financial statements. |
64
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon Focused Equity Opportunities Fund | |||||
Common Stocks—99.9% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—13.0% | Industrial—7.6% | ||||
Johnson Controls | 277,655 | 7,366,187 | Caterpillar | 135,925 | 8,856,873 |
Lowe’s | 323,370 | 6,564,411 | Honeywell International | 233,405 | 9,123,801 |
Time Warner Cable | 139,600 | 7,204,756 | 17,980,674 | ||
Walt Disney | 299,285 | 9,753,698 | Information Technology—19.1% | ||
30,889,052 | Apple | 61,826 b | 15,046,594 | ||
Consumer Staples—10.3% | Cognizant Technology Solutions, Cl. A | 153,400 b | 8,836,607 | ||
Avon Products | 229,935 | 6,691,109 | Google, Cl. A | 23,965 b | 10,784,729 |
Coca-Cola | 152,800 | 8,544,576 | Salesforce.com | 99,560 b | 10,939,653 |
Kraft Foods, Cl. A | 311,545 | 9,330,773 | 45,607,583 | ||
24,566,458 | Materials—7.0% | ||||
Energy—12.0% | Air Products & Chemicals | 95,340 | 7,058,020 | ||
Exxon Mobil | 129,900 | 7,684,884 | Cliffs Natural Resources | 156,855 | 9,597,957 |
Halliburton | 249,485 a | 7,037,972 | 16,655,977 | ||
Occidental Petroleum | 92,855 | 6,785,843 | Technology—2.3% | ||
Southwestern Energy | 217,645 b | 7,121,344 | International Game Technology | 378,600 | 5,527,560 |
28,630,043 | Utilities—3.7% | ||||
Financial—14.8% | Questar | 538,045 | 8,759,373 | ||
Aflac | 155,650 | 7,354,463 | Total Common Stocks | ||
Assured Guaranty | 398,400 | 6,155,280 | (cost $249,176,282) | 238,055,787 | |
Invesco | 342,060 | 6,191,286 | |||
Morgan Stanley | 330,400 | 8,157,576 | Other Investment—.7% | ||
U.S. Bancorp | 359,985 | 7,487,688 | Registered Investment Company; | ||
35,346,293 | Dreyfus Institutional Preferred | ||||
Health Care—10.1% | Plus Money Market Fund | ||||
Abbott Laboratories | 108,360 | 5,346,482 | (cost $1,644,000) | 1,644,000 c | 1,644,000 |
Allergan | 122,900 | 7,548,518 | Total Investments (cost $250,820,282) | 100.6% | 239,699,787 |
Baxter International | 142,600 | 6,069,056 | |||
Liabilities, Less Cash and Receivables | (.6%) | (1,355,549) | |||
Covidien | 145,125 | 5,128,718 | |||
24,092,774 | Net Assets | 100.0% | 238,344,238 |
a | Held by a broker as collateral for open financial options positions. |
b | Non-income producing security. |
c | Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Information Technology | 19.1 | Industrial | 7.6 |
Financial | 14.8 | Materials | 7.0 |
Consumer Discretionary | 13.0 | Utilities | 3.7 |
Energy | 12.0 | Technology | 2.3 |
Consumer Staples | 10.3 | Money Market Investment | .7 |
Health Care | 10.1 | 100.6 |
† Based on net assets. |
See notes to financial statements. |
The Funds | 65 |
STATEMENT OF OPTIONS WRITTEN
August 31, 2010
BNY Mellon Focused Equity | |||
Opportunities Fund | Contracts | Value ($) | |
Call Options: | |||
Halliburton, | |||
October 2010 @ 31 | |||
(Premiums received $53,971) | 400 | a | (24,800) |
a Non-income producing security. | |||
See notes to financial statements. |
66
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon Small/Mid Cap Fund | |||||
Common Stocks—96.0% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—17.8% | Energy—6.9% | ||||
Abercrombie & Fitch, Cl. A | 34,655 a | 1,199,063 | Atmos Energy | 35,790 | 1,012,857 |
ArvinMeritor | 72,295 b | 944,896 | Brigham Exploration | 56,360 b | 863,435 |
Foot Locker | 140,000 | 1,643,600 | Complete Production Services | 65,800 b | 1,160,712 |
Guess? | 29,000 | 936,990 | Energy XXI (Bermuda) | 94,000 a,b | 1,879,060 |
Gymboree | 27,910 a,b | 1,050,253 | Forest Oil | 93,610 b | 2,445,093 |
Hertz Global Holdings | 131,210 a,b | 1,116,597 | Gulfport Energy | 79,030 b | 898,571 |
Interface, Cl. A | 88,890 | 1,139,570 | New Jersey Resources | 27,065 | 1,007,089 |
Interpublic Group of Cos | 153,020 b | 1,305,261 | Noble Energy | 19,000 | 1,325,820 |
KB Home | 53,840 a | 555,090 | RPC | 80,000 | 1,304,800 |
Macy’s | 80,800 | 1,570,752 | Southwestern Energy | 34,000 b | 1,112,480 |
Magna International, Cl. A | 25,000 | 1,944,250 | Venoco | 63,000 a,b | 1,115,100 |
MDC Partners, Cl. A | 104,204 | 1,217,103 | Walter Energy | 16,000 | 1,152,640 |
Morgans Hotel Group | 242,095 b | 1,510,673 | 15,277,657 | ||
Navistar International | 24,810 b | 1,039,043 | Financial—16.8% | ||
Royal Caribbean Cruises | 25,230 a,b | 619,649 | Affiliated Managers Group | 18,060 b | 1,159,633 |
Saks | 212,900 a,b | 1,679,781 | Arch Capital Group | 11,565 b | 922,887 |
Scripps Networks | Associated Banc-Corp | 90,000 | 1,085,400 | ||
Interactive, Cl. A | 25,000 | 1,004,500 | Assured Guaranty | 63,165 | 975,899 |
Skechers USA, Cl. A | 88,000 b | 2,241,360 | Axis Capital Holdings | 30,780 | 950,486 |
Standard-Pacific | 264,155 a,b | 921,901 | Brandywine Realty Trust | 137,095 c | 1,506,674 |
Starwood Hotels & | Camden Property Trust | 27,000 | 1,235,520 | ||
Resorts Worldwide | 34,000 | 1,588,820 | Cathay General Bancorp | 110,000 | 1,054,900 |
Talbots | 170,590 a,b | 1,702,488 | Centerstate Banks | 115,195 | 992,981 |
Tenneco | 47,890 b | 1,183,841 | Chimera Investment | 212,275 c | 834,241 |
Titan International | 100,410 | 1,018,157 | City National | 19,440 | 941,674 |
TiVo | 101,950 b | 801,327 | CNO Financial Group | 138,730 b | 656,193 |
Urban Outfitters | 36,115 b | 1,095,007 | Cousins Properties | 225,000 c | 1,478,250 |
Vitamin Shoppe | 227,360 | 5,549,858 | Dollar Financial | 174,000 b | 3,365,160 |
WABCO Holdings | 41,515 b | 1,463,819 | Douglas Emmett | 82,015 | 1,322,082 |
Warnaco Group | 35,000 b | 1,465,800 | Enstar Group | 15,454 b | 1,075,907 |
39,509,449 | Fidelity National Financial, Cl. A | 53,070 | 770,046 | ||
Consumer Staples—1.6% | First Interstate BancSystem | 114,290 a | 1,305,192 | ||
J & J Snack Foods | 38,020 | 1,435,255 | FirstMerit | 46,490 | 804,277 |
McCormick & Co. | 21,165 | 843,849 | Forestar Group | 120,585 b | 1,794,305 |
Watsco | 24,645 | 1,265,521 | Host Hotels & Resorts | 102,030 c | 1,339,654 |
3,544,625 |
The Funds | 67 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Small/Mid Cap Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Financial (continued) | Industrial (continued) | ||||
Huntington Bancshares | 326,700 | 1,728,243 | Cummins | 12,395 | 922,312 |
KeyCorp | 190,345 | 1,402,843 | Donaldson | 34,000 | 1,424,600 |
KKR Financial Holdings | 242,765 c | 1,888,712 | Goodrich | 12,655 | 866,614 |
MGIC Investment | 97,150 b | 701,423 | JB Hunt Transport Services | 44,565 | 1,459,058 |
Och-Ziff Capital | Kansas City Southern | 49,455 b | 1,660,204 | ||
Management Group, Cl. A | 120,625 | 1,502,987 | KBR | 54,635 | 1,267,532 |
SCBT Financial | 25,110 | 721,912 | KVH Industries | 106,610 b | 1,329,427 |
SunTrust Banks | 49,710 | 1,117,978 | Manpower | 17,090 | 726,325 |
Webster Financial | 69,320 | 1,115,359 | Middleby | 24,105 b | 1,325,534 |
Willis Group Holdings | 30,000 | 872,400 | Overseas Shipholding Group | 40,000 | 1,288,000 |
Zions Bancorporation | 33,850 | 623,855 | Roper Industries | 23,265 | 1,351,231 |
37,247,073 | Toll Brothers | 58,970 b | 1,019,002 | ||
Health Care—13.1% | TransDigm Group | 19,360 b | 1,120,750 | ||
Alexion Pharmaceuticals | 38,880 b | 2,195,554 | UAL | 45,900 b | 972,621 |
Alliance Healthcare Service | 227,740 b | 956,508 | 29,224,429 | ||
Emergent Biosolutions | 82,530 b | 1,498,745 | Information Technology—14.2% | ||
Gilead Sciences | 34,000 b | 1,083,240 | American Superconductor | 50,790 a,b | 1,365,743 |
Health Net | 70,000 b | 1,671,600 | Cavium Networks | 52,000 a,b | 1,255,280 |
Healthcare Services Group | 71,430 | 1,483,601 | Ceva | 87,205 b | 1,055,180 |
Human Genome Sciences | 100,110 b | 2,912,200 | China Digital TV Holding, ADR | 300,100 a,b | 2,121,707 |
Inspire Pharmaceuticals | 260,140 b | 1,261,679 | Cree | 15,000 b | 803,100 |
King Pharmaceuticals | 250,000 b | 2,177,500 | F5 Networks | 25,240 b | 2,206,733 |
MAP Pharmaceuticals | 107,990 b | 1,167,912 | Fortinet | 87,470 b | 1,783,513 |
NuPathe | 200,000 | 1,572,000 | Isilon Systems | 87,000 b | 1,735,650 |
Salix Pharmaceuticals | 47,270 b | 1,789,642 | Netezza | 81,000 b | 1,576,260 |
Savient Pharmaceuticals | 277,110 b | 3,995,926 | ON Semiconductor | 122,725 b | 758,440 |
Sirona Dental Systems | 40,000 b | 1,260,800 | OPNET Technologies | 105,285 | 1,658,239 |
Thoratec | 34,000 b | 1,094,800 | Photronics | 180,340 b | 775,462 |
Universal Health Services, Cl. B | 48,000 | 1,507,200 | Priceline.com | 2,900 b | 845,292 |
Volcano | 71,195 b | 1,573,409 | Rackspace Hosting | 74,140 a,b | 1,459,817 |
29,202,316 | Riverbed Technology | 27,665 b | 1,061,229 | ||
Industrial—13.2% | Rovi | 40,680 b | 1,769,987 | ||
Advanced Energy Industries | 116,380 b | 1,642,122 | Sonic Solutions | 229,090 a,b | 1,844,174 |
Aircastle | 163,930 | 1,280,293 | Sourcefire | 110,000 b | 2,790,700 |
AMETEK | 37,445 | 1,609,760 | SuccessFactors | 55,000 b | 1,160,500 |
AMR | 128,260 b | 783,669 | Varian Semiconductor | ||
Atlas Air Worldwide Holdings | 34,000 b | 1,473,560 | Equipment Associates | 40,560 b | 1,006,699 |
BE Aerospace | 40,110 b | 1,080,964 | Veeco Instruments | 50,000 a,b | 1,661,500 |
Cenveo | 621,575 b | 3,412,447 | Vishay Intertechnology | 111,060 b | 854,051 |
Cooper Industries | 28,710 | 1,208,404 | 31,549,256 |
68
BNY Mellon Small/Mid Cap Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Materials—5.5% | Utilities (continued) | ||||
Agrium | 30,000 | 2,087,100 | Wisconsin Energy | 18,000 | 1,003,320 |
Carpenter Technology | 50,000 | 1,550,500 | 7,765,968 | ||
Cliffs Natural Resources | 40,440 | 2,474,524 | Total Common Stocks | ||
Cytec Industries | 22,295 | 1,057,452 | (cost $218,477,319) | 213,121,386 | |
Eastman Chemical | 22,000 | 1,354,100 | |||
Ferro | 141,745 b | 1,516,671 | Other Investment—3.3% | ||
Globe Specialty Metals | 104,585 b | 1,143,114 | Registered Investment Company; | ||
Temple-Inland | 66,940 | 1,066,354 | Dreyfus Institutional Preferred | ||
12,249,815 | Plus Money Market Fund | ||||
Telecommunication Services—3.4% | (cost $7,326,000) | 7,326,000 d | 7,326,000 | ||
Acme Packet | 63,740 b | 2,141,664 | Investment of Cash Collateral | ||
Aruba Networks | 95,960 b | 1,762,785 | for Securities Loaned—8.1% | ||
Ciena | 75,780 a,b | 944,977 | Registered Investment Company; | ||
Motricity | 200,000 a | 1,472,000 | Dreyfus Institutional Cash | ||
SBA Communications, Cl. A | 34,340 b | 1,229,372 | Advantage Fund | ||
7,550,798 | (cost $18,044,546) | 18,044,546 d | 18,044,546 | ||
Utilities—3.5% | |||||
Total Investments | |||||
Cleco | 50,600 | 1,433,498 | (cost $243,847,865) | 107.4% | 238,491,932 |
DPL | 49,190 | 1,245,491 | |||
Liabilities, Less Cash and Receivables | (7.4%) | (16,441,420) | |||
EnerNOC | 78,270 a,b | 2,550,037 | |||
ITC Holdings | 26,460 | 1,533,622 | Net Assets | 100.0% | 222,050,512 |
ADR—American Depository Receipts |
a Security, or portion thereof, on loan.At August 31, 2010, the total market value of the fund’s securities on loan is $17,498,149 and the total market value of the collateral held by |
the fund is $18,044,546. |
b Non-income producing security. |
c Investment in real estate investment trust. |
d Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Consumer Discretionary | 17.8 | Energy | 6.9 |
Financial | 16.8 | Materials | 5.5 |
Information Technology | 14.2 | Utilities | 3.5 |
Industrial | 13.2 | Telecommunication Services | 3.4 |
Health Care | 13.1 | Consumer Staples | 1.6 |
Money Market Investments | 11.4 | 107.4 | |
† Based on net assets. | |||
See notes to financial statements. |
The Funds | 69 |
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon International Fund | |||||
Common Stocks—98.5% | Shares | Value ($) | Shares | Value ($) | |
Australia—5.2% | France (continued) | ||||
AGL Energy | 145,770 | 1,947,975 | Total | 489,572 | 22,874,529 |
Atlas Iron | 751,010 a | 1,396,488 | Valeo | 90,260 a | 3,150,081 |
Australia & New Zealand | Vivendi | 306,175 | 7,143,087 | ||
Banking Group | 111,950 | 2,250,016 | 128,264,365 | ||
BHP Billiton | 97,060 | 3,199,439 | Germany—6.1% | ||
BlueScope Steel | 1,143,700 | 2,177,565 | Allianz | 38,331 | 3,931,659 |
Commonwealth Bank of Australia | 97,840 | 4,378,544 | BASF | 39,850 | 2,102,565 |
Foster’s Group | 826,584 | 4,456,613 | Bayer | 97,274 | 5,939,174 |
Insurance Australia Group | 1,496,961 | 4,581,569 | Celesio | 152,820 | 3,098,579 |
Macquarie Group | 48,140 | 1,604,424 | Daimler | 82,800 a | 4,025,051 |
National Australia Bank | 382,499 | 7,895,208 | Deutsche Lufthansa | 199,776 a | 3,153,185 |
Nufarm | 1,259,163 | 4,313,085 | Deutsche Telekom | 147,500 | 1,942,093 |
Primary Health Care | 1,265,626 | 3,637,083 | E.ON | 391,790 | 11,024,695 |
QBE Insurance Group | 255,913 | 3,754,553 | HeidelbergCement | 38,590 | 1,547,786 |
Stockland | 828,120 | 2,902,918 | Lanxess | 35,770 | 1,566,589 |
Westfield Group | 308,866 | 3,437,737 | Metro | 103,780 | 5,283,625 |
51,933,217 | Muenchener Rueckversicherungs | 45,660 | 5,832,556 | ||
Austria—.4% | RWE | 54,711 | 3,583,106 | ||
Erste Group Bank | 98,911 | 3,589,881 | SAP | 59,430 | 2,594,899 |
Denmark—.4% | Siemens | 45,250 | 4,116,087 | ||
Carlsberg, Cl. B | 37,280 | 3,512,521 | Stada Arzneimittel | 51,150 | 1,561,835 |
Finland—2.2% | 61,303,484 | ||||
Fortum | 96,850 | 2,230,062 | Hong Kong—2.6% | ||
Nokia | 1,648,689 | 14,092,341 | Esprit Holdings | 887,237 | 4,972,976 |
Sampo, Cl. A | 149,190 | 3,594,051 | Hang Seng Bank | 732,300 | 10,044,854 |
UPM-Kymmene | 186,903 | 2,565,117 | Hongkong Land Holdings | 761,000�� | 4,086,570 |
22,481,571 | Hutchison Whampoa | 830,700 | 6,140,479 | ||
France—12.8% | Techtronic Industries | 637,500 | 554,009 | ||
Alstom | 122,290 | 5,833,148 | 25,798,888 | ||
BNP Paribas | 98,040 | 6,133,790 | Ireland—.3% | ||
Carrefour | 147,456 | 6,695,326 | CRH | 100,395 | 1,564,875 |
Credit Agricole | 328,254 | 4,136,921 | Dragon Oil | 241,020 a | 1,553,412 |
Danone | 84,465 | 4,538,960 | 3,118,287 | ||
France Telecom | 674,553 | 13,711,434 | Israel—.5% | ||
GDF Suez | 415,873 | 12,877,617 | Teva Pharmaceutical | ||
Lagardere | 72,520 | 2,612,286 | Industries, ADR | 92,910 | 4,699,388 |
Legrand | 59,030 | 1,792,721 | Italy—3.9% | ||
Peugeot | 79,550 a | 2,089,787 | Banco Popolare | 354,550 | 1,993,785 |
Rhodia | 132,140 | 2,483,350 | Buzzi Unicem | 236,420 | 2,145,160 |
Sanofi-Aventis | 326,302 | 18,719,433 | Enel | 384,940 | 1,834,186 |
Societe Generale | 229,382 | 11,679,701 | ENI | 403,924 | 8,021,048 |
Technip | 27,360 | 1,792,194 | Finmeccanica | 654,153 | 6,569,632 |
70
BNY Mellon International Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Italy (continued) | Japan (continued) | ||||
Parmalat | 894,244 | 2,152,006 | Nomura Holdings | 732,400 | 4,123,619 |
Saras | 4,660,158 a | 7,919,393 | Nomura Research Institute | 200,400 | 3,895,408 |
UniCredit | 2,059,690 | 4,833,985 | Panasonic | 387,300 | 4,923,657 |
Unipol Gruppo Finanziario | 5,207,897 | 3,478,047 | Rengo | 478,000 | 3,197,667 |
38,947,242 | Ricoh | 205,800 | 2,630,987 | ||
Japan—25.0% | Ryohin Keikaku | 149,600 | 5,231,815 | ||
Asahi Kasei | 444,000 | 2,193,310 | Sankyo | 84,900 | 4,295,024 |
Astellas Pharma | 114,100 | 3,942,772 | Secom | 108,700 | 4,729,181 |
Bridgestone | 238,400 | 4,137,450 | Seven & I Holdings | 365,300 | 8,348,720 |
Canon | 115,200 | 4,696,584 | Shimachu | 216,300 | 4,253,394 |
Central Japan Railway | 526 | 4,245,066 | Shimizu | 1,173,000 | 4,160,862 |
Chuo Mitsui Trust Holdings | 2,262,860 | 8,026,810 | Shin-Etsu Chemical | 84,400 | 3,908,059 |
COCA-COLA WEST | 97,600 | 1,654,355 | SMC | 30,300 | 3,736,555 |
Credit Saison | 242,800 | 3,083,771 | Softbank | 82,100 | 2,356,185 |
Daihatsu Motor | 226,000 | 2,854,255 | Sumitomo | 97,750 | 1,120,501 |
Daito Trust Construction | 41,100 | 2,358,076 | Sumitomo Mitsui Financial Group | 406,600 | 12,104,590 |
Daiwa House Industry | 605,890 | 5,683,149 | Sumitomo Trust & Banking | 229,000 | 1,218,462 |
East Japan Railway | 109,100 | 7,064,683 | Tokai Rika | 74,700 | 1,163,047 |
Fujitsu | 700,000 | 4,849,423 | Tokyo Electron | 70,900 | 3,325,152 |
Hino Motors | 719,000 | 3,166,647 | Tokyo Gas | 497,000 | 2,319,057 |
Hitachi | 1,314,000 | 5,317,938 | Tokyo Steel Manufacturing | 509,600 | 5,568,537 |
Honda Motor | 145,300 | 4,806,436 | Toyo Suisan Kaisha | 156,000 | 3,288,609 |
INPEX | 1,122 | 5,075,110 | Toyoda Gosei | 211,800 | 4,331,299 |
JFE Holdings | 38,500 | 1,136,990 | Toyota Motor | 233,900 | 7,962,790 |
Kaneka | 324,000 | 1,936,055 | Trend Micro | 22,700 | 615,799 |
Kao | 110,300 | 2,564,170 | Ushio | 175,000 | 2,957,981 |
KDDI | 1,801 | 8,682,359 | Yahoo! Japan | 4,791 | 1,725,125 |
Keihin | 199,400 | 3,811,884 | Yamada Denki | 41,140 | 2,561,150 |
Lawson | 46,300 | 2,110,808 | Yamato Holdings | 248,000 | 2,916,605 |
Makita | 83,400 | 2,371,653 | 250,834,754 | ||
Matsumotokiyoshi Holdings | 231,500 | 4,395,221 | Luxembourg—.6% | ||
Medipal Holdings | 217,800 | 2,711,806 | ArcelorMittal | 69,500 | 2,027,902 |
Miraca Holding | 82,700 | 2,770,120 | L’Occitane International | 973,250 a | 2,004,366 |
Mitsubishi | 218,800 | 4,688,013 | Millicom International Cellular, SDR | 23,200 | 2,129,621 |
Mitsubishi Chemical Holdings | 635,500 | 3,010,701 | 6,161,889 | ||
Mitsubishi Gas Chemical | 737,000 | 3,982,835 | Netherlands—3.1% | ||
Mitsubishi UFJ | Aegon | 793,422 a | 4,060,065 | ||
Financial Group | 2,746,600 | 13,110,185 | European Aeronautic | ||
Murata Manufacturing | 34,170 | 1,622,882 | Defence and Space | 234,182 a | 5,153,363 |
NEC | 907,000 | 2,310,415 | ING Groep | 502,690 a | 4,470,705 |
Nintendo | 7,320 | 2,037,158 | Koninklijke Ahold | 147,960 | 1,821,586 |
Nippon Express | 416,000 | 1,455,827 | Koninklijke Philips Electronics | 146,460 | 4,103,649 |
The Funds | 71 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon International Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Netherlands (continued) | Switzerland (continued) | ||||
Royal Dutch Shell, Cl. A | 226,645 | 6,024,355 | UBS | 400,804 a | 6,782,381 |
TNT | 145,930 | 3,704,145 | Zurich Financial Services | 19,630 | 4,377,476 |
Unilever | 66,440 | 1,779,485 | 67,622,673 | ||
31,117,353 | United Kingdom—20.7% | ||||
Norway—1.1% | Anglo American | 384,623 | 13,803,107 | ||
Norsk Hydro | 1,144,929 | 5,454,766 | BAE Systems | 1,115,340 | 5,040,959 |
Petroleum Geo-Services | 118,000 a | 1,060,762 | Barclays | 1,211,980 | 5,620,863 |
Subsea 7 | 88,941 a | 1,425,787 | Berkeley Group Holdings | 268,520 a | 3,372,767 |
Telenor | 231,000 | 3,384,052 | BP | 1,494,792 | 8,725,198 |
11,325,367 | British American Tobacco | 187,990 | 6,388,961 | ||
Singapore—1.7% | BT Group | 617,690 | 1,261,829 | ||
DBS Group Holdings | 1,195,680 | 12,243,481 | Compass Group | 331,710 | 2,714,056 |
United Overseas Bank | 309,943 | 4,280,437 | Cookson Group | 496,780 a | 3,193,825 |
16,523,918 | Drax Group | 691,720 | 4,210,534 | ||
Spain—2.6% | GlaxoSmithKline | 1,208,611 | 22,632,262 | ||
Amadeus IT Holding, Cl. A | 105,600 a | 1,819,974 | Home Retail Group | 1,500,550 | 5,030,676 |
Banco Bilbao Vizcaya Argentaria | 451,600 | 5,445,915 | HSBC Holdings | 2,253,939 | 22,251,097 |
Banco Santander | 897,820 | 10,520,893 | IMI | 303,590 | 3,180,050 |
Gamesa Corp Tecnologica | 608,336 a | 4,085,845 | Imperial Tobacco Group | 98,440 | 2,717,502 |
Iberdrola | 654,090 | 4,608,661 | Kingfisher | 1,008,640 | 3,163,408 |
26,481,288 | Legal & General Group | 1,194,830 | 1,697,764 | ||
Sweden—1.9% | Lonmin | 37,446 a | 877,515 | ||
Atlas Copco, Cl. A | 268,080 | 4,076,573 | Old Mutual | 1,293,310 | 2,524,973 |
Electrolux, Ser. B | 143,040 | 2,757,635 | QinetiQ Group | 1,746,998 | 2,890,944 |
Investor, Cl. B | 275,230 | 4,751,283 | Reed Elsevier | 487,733 | 3,919,577 |
Sandvik | 225,350 | 2,669,182 | Resolution | 2,493,617 | 9,683,207 |
Telefonaktiebolaget LM | Rexam | 875,687 | 4,063,905 | ||
Ericsson, Cl. B | 457,987 | 4,442,596 | Rio Tinto | 119,800 | 6,063,125 |
18,697,269 | Royal Dutch Shell, Cl. A | 555,584 | 14,766,380 | ||
Switzerland—6.8% | Royal Dutch Shell, Cl. B | 229,350 | 5,868,819 | ||
Adecco | 56,810 | 2,648,988 | Smith & Nephew | 192,910 | 1,603,540 |
Clariant | 186,783 a | 2,402,744 | Tesco | 479,450 | 2,992,335 |
Credit Suisse Group | 109,580 | 4,812,777 | Thomas Cook Group | 1,533,750 | 4,274,007 |
Nestle | 130,600 | 6,766,373 | Unilever | 655,011 | 17,298,462 |
Novartis | 408,652 | 21,474,104 | Vodafone Group | 4,327,686 | 10,430,278 |
Petroplus Holdings | 163,120 a | 1,831,636 | Wellstream Holdings | 305,530 | 2,553,737 |
Roche Holding | 103,205 | 14,028,358 | WPP | 268,120 | 2,656,363 |
Sulzer | 25,183 | 2,497,836 | 207,472,025 |
72
BNY Mellon International Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Other Investment—.3% | Shares | Value ($) |
United States—.6% | Registered | ||||
iShares MSCI EAFE Index Fund | 14,970 | 747,602 | Investment Company; | ||
Transocean | 102,220 a | 5,257,883 | Dreyfus | ||
6,005,485 | Institutional Preferred | ||||
Plus Money Market Fund | |||||
Total Common Stocks | (cost $2,800,000) | 2,800,000 b | 2,800,000 | ||
(cost $1,061,262,140) | 985,890,865 | ||||
Total Investments | |||||
Preferred Stocks—.5% | (cost $1,068,644,214) | 99.3% | 993,725,240 | ||
Germany | Cash and Receivables (Net) | .7% | 7,240,129 | ||
Volkswagen | Net Assets | 100.0% 1,000,965,369 | |||
(cost $4,582,074) | 50,588 | 5,034,375 |
ADR—American Depository Receipts | |
SDR—Swedish Depository Receipts | |
a | Non-income producing security. |
b | Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Financial | 24.3 | Information Technology | 5.1 |
Industrial | 12.6 | Utilities | 4.5 |
Consumer Discretionary | 11.0 | Telecommunication Services | 4.4 |
Health Care | 10.7 | Money Market Investment | .3 |
Energy | 9.3 | Exchange Traded Funds | .1 |
Consumer Staples | 9.1 | ||
Materials | 7.9 | 99.3 | |
† Based on net assets. | |||
See notes to financial statements. |
The Funds | 73 |
STATEMENT OF INVESTMENTS | |||||
August 31, 2010 | |||||
BNY Mellon Emerging Markets Fund | |||||
Common Stocks—90.1% | Shares | Value ($) | Shares | Value ($) | |
Brazil—9.1% | China (continued) | ||||
Banco do Brasil | 496,200 | 8,046,563 | China Life Insurance, Cl. H | 1,784,000 | 6,811,480 |
Banco Santander Brasil, ADR | 983,730 | 12,375,323 | China Petroleum & Chemical, ADR | 47,760 | 3,783,070 |
Centrais Eletricas Brasileiras | 193,603 | 2,355,756 | China Petroleum & Chemical, Cl. H | 19,194,000 | 15,199,748 |
Cia de Saneamento Basico do | China Railway Construction, Cl. H | 1,689,000 | 2,153,930 | ||
Estado de Sao Paulo | 50,608 | 962,741 | China Railway Group, Cl. H | 7,002,000 | 5,094,819 |
Cia de Saneamento de | China Vanadium | ||||
Minas Gerais—Copasa | 446,200 | 6,285,545 | Titano-Magnetite Mining | 20,357,000 | 7,092,074 |
Cia Energetica de Minas Gerais, ADR | 125,572 | 2,074,449 | Fuqi International | 186,280 a | 1,128,857 |
Cielo | 513,900 | 4,389,181 | Great Wall Motor, Cl. H | 3,774,000 | 8,092,601 |
Empresa Brasileira de | Guangzhou Automobile | ||||
Aeronautica, ADR | 217,290 | 5,386,619 | Group, Cl. H | 5,805,254 a | 6,806,224 |
Fleury | 706,800 | 8,692,885 | Harbin Power Equipment, Cl. H | 4,582,000 | 4,406,024 |
Gafisa | 991,400 | 6,830,428 | Huaneng Power International, ADR | 52,940 | 1,274,266 |
Grendene | 787,110 | 3,392,696 | Huaneng Power International, Cl. H | 8,624,200 | 5,177,569 |
Itau Unibanco Holding, ADR | 523,944 | 11,301,472 | Industrial & Commercial | ||
Itau Unibanco Holding, ADS | 43,890 a,b,c | 946,707 | Bank of China, Cl. H | 26,196,000 | 19,027,144 |
JBS | 1,422,900 | 6,035,932 | Lumena Resources | 10,984,000 a | 3,332,443 |
Light | 31,400 | 390,835 | Maanshan Iron and Steel, Cl. H | 11,402,000 | 5,819,179 |
Marfrig Alimentos | 598,900 | 5,797,181 | PetroChina, ADR | 51,850 | 5,639,725 |
Obrascon Huarte Lain Brasil | 139,100 | 3,801,737 | PetroChina, Cl. H | 9,584,000 | 10,398,709 |
Petroleo Brasileiro (Preferred), ADR | 518,410 | 15,324,200 | Renhe Commercial Holdings | 44,912,000 | 8,891,465 |
Petroleo Brasileiro, ADR | 341,520 | 11,389,692 | Sinotrans, Cl. H | 19,119,600 | 4,670,061 |
Porto Seguro | 609,840 | 7,430,933 | Soho China | 2,863,500 | 1,833,229 |
Redecard | 583,900 | 7,979,274 | Sohu.com | 47,470 a | 2,302,295 |
Rossi Residencial | 1,030,100 | 8,891,853 | TPV Technology | 3,521,680 | 2,100,671 |
Tele Norte Leste Participacoes, ADR | 374,108 | 5,072,904 | Weichai Power, Cl. H | 973,000 | 8,092,958 |
Totvs | 60,900 | 4,507,900 | Weiqiao Textile, Cl. H | 7,344,900 | 4,815,554 |
Vale, ADR | 530,790 | 14,198,633 | Zhejiang Expressway, Cl. H | 4,094,000 | 3,636,772 |
163,861,439 | 198,227,178 | ||||
China—11.0% | Czech Republic—.2% | ||||
Anhui Expressway, Cl. H | 1,276,000 | 843,148 | Central European Media | ||
Asia Cement China Holdings | 7,751,500 | 3,288,440 | Enterprises, Cl. A | 162,239 a | 3,452,446 |
AsiaInfo-Linkage | 304,120 a | 5,431,583 | Hong Kong—6.4% | ||
Bank of China, Cl. H | 20,100,000 | 10,103,294 | BYD Electronic International | 10,788,500 | 5,187,079 |
Beijing Capital International | China Agri-Industries Holdings | 10,189,519 | 12,391,817 | ||
Airport, Cl. H | 13,030,000 | 6,298,287 | China Mobile | 3,669,400 | 37,336,720 |
China Coal Energy, Cl. H | 943,000 | 1,328,656 | China Mobile, ADR | 225,840 | 11,590,109 |
China Communications | China Power International | ||||
Services, Cl. H | 8,896,000 | 4,437,278 | Development | 20,480,920 | 4,344,338 |
China Construction Bank, Cl. H | 22,918,990 | 18,915,625 | CNOOC | 7,297,000 | 12,607,640 |
74
BNY Mellon Emerging Markets Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Hong Kong (continued) | India (continued) | ||||
Cosco Pacific | 4,915,013 | 6,470,157 | Welspun | 880,860 | 4,364,976 |
Global Bio-Chem | 175,399,813 | ||||
Technology Group | 30,845,920 a | 4,639,528 | Indonesia—1.8% | ||
Guangdong Investment | 9,502,000 | 4,629,610 | Astra Agro Lestari | 648,500 | 1,410,407 |
Hutchison Whampoa | 526,000 | 3,888,157 | Astra International | 1,328,000 | 6,996,436 |
NWS Holdings | 3,161,686 | 5,739,098 | Bank Mandiri | 8,002,500 | 5,225,761 |
Tianjin Development Holdings | 9,615,000 | 6,452,232 | Indofood Sukses Makmur | 13,330,000 | 6,712,950 |
115,276,485 | Indosat | 6,967,000 | 3,392,894 | ||
Hungary—1.0% | International Nickel Indonesia | 4,625,500 | 2,188,601 | ||
MOL Hungarian Oil and Gas | 117,790 a | 10,919,676 | Medco Energi Internasional | 8,729,996 | 2,971,194 |
OTP Bank | 312,710 a | 6,612,403 | Telekomunikasi Indonesia | 3,519,400 | 3,369,431 |
17,532,079 | 32,267,674 | ||||
India—9.7% | Israel—.3% | ||||
Apollo Tyres | 5,279,210 | 8,012,416 | Makhteshim-Agan Industries | 883,190 a | 3,033,505 |
Balrampur Chini Mills | 2,882,290 | 5,131,448 | Teva Pharmaceutical Industries, ADR | 63,800 | 3,227,004 |
Bank of Baroda | 496,060 | 8,093,273 | 6,260,509 | ||
Bank of India | 915,330 | 8,437,507 | Malaysia—2.2% | ||
Bharti Airtel | 2,121,800 | 14,513,657 | Axiata Group | 3,635,000 a | 5,177,716 |
Canara Bank | 502,600 | 5,447,160 | Genting Malaysia | 9,850,960 | 9,480,076 |
Chambal Fertilizers & Chemicals | 4,478,410 | 6,306,661 | Hong Leong Bank | 1,145,200 | 3,225,967 |
Federal Bank | 174,685 | 1,262,790 | Malayan Banking | 4,268,102 | 11,410,983 |
Glenmark Pharmaceuticals | 778,210 | 4,590,259 | Tenaga Nasional | 3,523,310 | 9,947,430 |
India Cements | 4,173,705 | 9,487,096 | 39,242,172 | ||
Indian Bank | 375,611 | 1,886,681 | Mexico—2.5% | ||
Mahanagar Telephone Nigam | 1,705,396 | 2,218,755 | America Movil, ADR, Ser. L | 336,690 | 15,699,855 |
Mahanagar Telephone Nigam, ADR | 274,750 | 722,593 | Consorcio ARA | 3,395,900 | 1,970,741 |
NMDC | 776,973 | 3,972,407 | Desarrolladora Homex, ADR | 176,610 a | 4,911,524 |
Oil & Natural Gas | 259,438 | 7,324,807 | Embotelladoras Arca | 1,408,640 | 5,336,000 |
Oriental Bank Of Commerce | 987,042 | 8,548,544 | Fomento Economico | ||
Patni Computer Systems, ADR | 146,140 | 2,791,274 | Mexicano, ADR | 198,990 | 9,690,813 |
Reliance Industries | 729,702 | 14,258,973 | Grupo Continental | 1,381,390 | 3,856,556 |
Rolta India | 1,754,180 | 6,072,549 | Grupo Simec, Ser. B | 165,900 a | 388,500 |
Sintex Industries | 963,930 | 7,201,557 | Industrias CH, Ser. B | 300,400 a | 1,057,820 |
SpiceJet | 4,522,570 a | 6,707,041 | Urbi Desarrollos Urbanos | 711,100 a | 1,314,517 |
State Bank of India | 19,670 | 1,156,783 | 44,226,326 | ||
State Bank of India, GDR | 76,260 c | 8,979,615 | Philippines—.3% | ||
Tata Consultancy Services | 745,710 | 13,250,722 | Bank of the Philippine Islands | 3,968,308 | 4,199,268 |
Tata Motors | 562,790 | 11,674,804 | Union Bank of the Philippines | 658,800 | 657,929 |
Union Bank of India | 437,917 | 2,985,465 | 4,857,197 |
The Funds | 75 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Emerging Markets Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Poland—1.2% | South Korea (continued) | ||||
Asseco Poland | 301,233 | 5,257,278 | Daegu Bank | 535,280 | 6,228,339 |
Bank Pekao | 57,200 | 2,782,165 | Daehan Steel | 227,180 | 1,584,139 |
Getin Holding | 1,287,410 a | 3,911,119 | Hana Financial Group | 205,190 | 5,279,933 |
KGHM Polska Miedz | 142,110 | 4,807,455 | Hyosung | 90,328 | 8,061,637 |
Telekomunikacja Polska | 1,051,090 | 5,701,165 | Hyundai Development | 321,240 | 7,368,504 |
22,459,182 | Hyundai Mipo Dockyard | 39,894 | 5,340,718 | ||
Russia—5.7% | Hyundai Mobis | 95,323 | 17,253,391 | ||
Gazprom, ADR | 2,141,840 | 44,336,088 | Jinro | 79,930 | 2,496,771 |
LUKOIL, ADR | 547,270 | 29,169,491 | Kangwon Land | 171,180 | 3,134,040 |
Magnitogorsk Iron & | KB Financial Group | 300,838 | 12,195,118 | ||
Steel Works, GDR | 330,790 b,c | 3,668,461 | KB Financial Group, ADR | 73,390 | 2,989,909 |
MMC Norilsk Nickel, ADR | 766,963 | 13,000,023 | Korea Electric Power | 424,435 a | 10,319,693 |
VimpelCom, ADR | 897,250 a | 13,413,888 | Korea Electric Power, ADR | 58,910 a | 725,182 |
103,587,951 | Korea Exchange Bank | 372,970 | 3,935,333 | ||
South Africa—7.6% | Korean Reinsurance | 505,986 | 4,536,950 | ||
African Rainbow Minerals | 258,280 | 5,403,042 | KT | 187,510 | 6,858,215 |
Anglo Platinum | 48,641 a | 4,026,485 | KT, ADR | 195,470 | 3,649,425 |
AngloGold Ashanti, ADR | 74,057 | 3,131,870 | KT & G | 135,705 | 6,904,667 |
ArcelorMittal South Africa | 337,918 | 3,775,518 | Kukdo Chemical | 79,030 | 2,373,075 |
Aveng | 1,692,871 | 8,722,590 | LG Electronics | 92,996 | 7,477,533 |
Barloworld | 599,740 | 3,481,338 | Lotte Chilsung Beverage | 2,408 | 1,496,338 |
FirstRand | 4,503,524 | 11,803,813 | Nong Shim | 40,460 | 7,188,239 |
Gold Fields | 420,890 | 6,049,402 | POSCO | 50,529 | 20,504,094 |
JD Group | 1,104,158 | 6,529,130 | POSCO, ADR | 43,970 | 4,439,211 |
Metropolitan Holdings | 1,626,111 | 3,514,605 | S-Oil | 102,036 | 4,919,243 |
MTN Group | 1,688,319 | 27,585,416 | Samsung Electronics | 82,192 | 51,828,469 |
Murray & Roberts Holdings | 1,368,410 | 7,700,205 | Samsung Fire & Marine Insurance | 34,233 | 5,468,029 |
Nampak | 1,577,223 | 3,817,414 | Shinhan Financial Group | 323,393 | 12,381,132 |
Sappi | 885,737 a | 4,197,493 | Shinsegae | 6,343 | 3,052,724 |
Sasol | 443,623 | 16,893,765 | SK Telecom | 18,502 | 2,492,345 |
Sasol, ADR | 50,290 | 1,895,933 | SK Telecom, ADR | 376,730 | 6,035,215 |
Standard Bank Group | 1,009,034 | 14,301,603 | Tong Yang Life Insurance | 608,560 | 5,964,284 |
Telkom | 810,340 | 3,691,854 | Woori Finance Holdings | 302,320 | 3,391,612 |
136,521,476 | Youngone | 496,688 | 3,977,150 | ||
South Korea—15.2% | Youngone Holdings | 155,572 | 3,750,130 | ||
Busan Bank | 712,550 | 7,577,790 | Yuhan | 47,988 | 7,124,751 |
Chong Kun Dang Pharmaceutical | 143,210 | 2,639,871 | 273,565,286 | ||
CJ Cheiljedang | 3,352 | 622,087 |
76
BNY Mellon Emerging Markets Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Taiwan—8.9% | Thailand (continued) | ||||
Advanced Semiconductor | PTT | 788,300 | 6,552,121 | ||
Engineering | 5,717,617 | 3,935,614 | 43,322,053 | ||
Asia Cement | 7,855,728 | 7,062,651 | Turkey—2.7% | ||
Asustek Computer | 605,974 | 4,038,692 | Arcelik | 1,131,620 | 5,372,611 |
AU Optronics | 549,000 a | 473,867 | Haci Omer Sabanci Holding | 1,324,554 | 5,985,019 |
AU Optronics, ADR | 658,540 a | 5,670,029 | Hurriyet Gazetecilik | 1,837,160 | 1,684,309 |
Catcher Technology | 2,290,000 | 5,061,247 | KOC Holding | 1,646,600 | 6,415,815 |
China Steel | 946,984 | 895,723 | Turk Sise ve Cam Fabrikalari | 1,347,958 a | 2,012,602 |
Chinatrust | Turkcell Iletisim Hizmet | 587,140 | 3,710,357 | ||
Financial Holding | 12,023,599 | 6,737,329 | Turkcell Iletisim Hizmet, ADR | 215,240 | 3,411,554 |
CTCI | 7,026,000 | 7,720,397 | Turkiye Halk Bankasi | 1,005,280 | 8,163,107 |
First Financial Holding | 14,693,162 | 8,485,468 | Turkiye Is Bankasi, Cl. C | 3,478,896 | 12,757,813 |
Fubon Financial Holding | 5,317,976 | 6,200,488 | 49,513,187 | ||
HON HAI Precision Industry | 4,798,568 | 16,926,958 | United Kingdom—.5% | ||
HTC | 434,100 | 7,927,468 | African Barrick Gold | 787,730 | 7,333,171 |
KGI Securities | 1,885,000 | 785,564 | JKX Oil & Gas | 567,251 | 2,575,092 |
Lite-On Technology | 13,042 | 15,023 | 9,908,263 | ||
Nan Ya Printed Circuit Board | 1,040,970 | 3,347,066 | United States—1.4% | ||
Powertech Technology | 2,422,250 | 7,183,422 | iShares MSCI Emerging | ||
Quanta Computer | 7,273,000 | 11,034,145 | Markets Index Fund | 630,771 | 25,268,686 |
SinoPac Financial Holdings | 20,113,225 | 7,063,551 | Total Common Stocks | ||
Taishin Financial Holdings | 14,626,165 a | 5,981,231 | (cost $1,487,642,436) | 1,625,841,066 | |
Taiwan Semiconductor | |||||
Manufacturing | 5,902,517 | 10,852,789 | Preferred Stocks—7.8% | ||
Taiwan Semiconductor | |||||
Brazil | |||||
Manufacturing, ADR | 2,018,867 | 18,997,538 | |||
Banco Bradesco | 844,856 | 14,652,990 | |||
Tatung | 25,278,000 a | 4,229,571 | |||
Banco do Estado do | |||||
Transcend Information | 1,106,380 | 2,849,358 | |||
Rio Grande do Sul | 534,700 | 4,712,971 | |||
United Microelectronics | 15,576,397 | 6,321,195 | |||
Bradespar | 350,400 | 7,302,286 | |||
United Microelectronics, ADR | 504,000 | 1,295,280 | |||
Braskem, Cl. A | 633,100 a | 5,580,292 | |||
161,091,664 | |||||
Cia de Bebidas | |||||
Thailand—2.4% | das Americas | 87,600 | 9,651,088 | ||
Asian Property Development | 14,040,400 | 2,806,314 | Cia de Tecidos do Norte | ||
Bangchak Petroleum | 10,035,900 | 4,779,334 | de Minas—Coteminas | 721,960 | 1,788,200 |
Bangkok Bank | 1,425,900 | 6,691,708 | Cia Energetica | ||
Banpu | 235,900 | 4,345,810 | de Minas Gerais | 473,058 | 7,541,992 |
Charoen Pokphand Foods | 4,948,600 | 3,606,385 | Cia Paranaense | ||
Kasikornbank | 4,167,000 | 14,540,381 | de Energia, Cl. B | 655,900 | 14,359,775 |
The Funds | 77 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Emerging Markets Fund (continued) | |||||
Preferred Stocks (continued) | Shares | Value ($) | Other Investment—1.5% | Shares | Value ($) |
Brazil (continued) | Registered Investment Company; | ||||
Itau Unibanco Holding | 682,135 | 14,689,450 | Dreyfus Institutional Preferred | ||
Petroleo Brasileiro | 1,646,600 | 24,432,966 | Plus Money Market Fund | ||
Usinas Siderurgicas de | (cost $27,100,000) | 27,100,000 d 27,100,000 | |||
Minas Gerais, Cl. A | 119,950 | 3,007,202 | Total Investments | ||
Vale, Cl. A | 1,125,600 | 26,552,944 | (cost $1,626,919,727) | 99.4% | 1,793,374,122 |
Vivo Participacoes | 256,400 | 6,160,900 | |||
Cash and Receivables (Net) | .6% | 9,990,188 | |||
Total Preferred Stocks | |||||
(cost $112,177,291) | 140,433,056 | Net Assets | 100.0% | 1,803,364,310 |
ADR—American Depository Receipts |
ADS—American Depository Shares |
GDR—Global Depository Receipts |
a Non-income producing security. |
b The valuation of these securities has been determined in good faith by management under the direction of the Board of Directors.At August 31, 2010, the value of these securities |
amounted to $4,615,168 or .3% of net assets. |
c 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 August 31, 2010, these securities had a total market value of $13,594,783 or .8% of net assets. |
d Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Financial | 23.4 | Consumer Staples | 5.6 |
Energy | 13.9 | Utilities | 3.6 |
Materials | 12.0 | Money Market Investment | 1.5 |
Information Technology | 11.8 | Health Care | 1.5 |
Telecommunication Services | 10.3 | Exchange Traded Funds | 1.4 |
Consumer Discretionary | 7.7 | ||
Industrial | 6.7 | 99.4 | |
† Based on net assets. | |||
See notes to financial statements. |
78
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon International Appreciation Fund | |||||
Common Stocks—98.5% | Shares | Value ($) | Shares | Value ($) | |
Consumer Discretionary—10.3% | Consumer Staples—10.5% | ||||
Adidas, ADR | 11,075 | 280,751 | Aeon, ADR | 79,968 | 842,863 |
Bridgestone, ADR | 14,362 | 495,489 | Ajinomoto, ADR | 4,423 | 434,030 |
British Sky Broadcasting Group, ADR | 13,695 | 589,570 | British American Tobacco, ADR | 26,200 | 1,780,028 |
Casio Computer, ADR | 4,290 | 285,080 | Coca Cola Hellenic Bottling, ADR | 11,185 | 261,282 |
Compass Group, ADR | 42,121 | 343,707 | Coca-Cola Amatil, ADR | 65,681 | 1,397,692 |
Daimler | 31,607 a | 1,523,457 | DANONE, ADR | 79,602 | 854,925 |
Denso, ADR | 5,786 | 632,178 | Delhaize Group, ADR | 16,273 | 1,089,640 |
Electrolux, Cl. B, ADR | 12,867 | 495,508 | Diageo, ADR | 14,398 | 943,069 |
Fiat, ADR | 39,395 | 460,921 | Foster’s Group, ADR | 120,506 | 643,502 |
Hennes & Mauritz, ADR | 138,406 | 906,559 | Heineken, ADR | 18,509 | 412,751 |
Honda Motor, ADR | 57,648 | 1,898,349 | Henkel & Co., ADR | 14,272 | 671,212 |
Intercontinental Hotels Group, ADR | 25,633 | 390,647 | Imperial Tobacco Group, ADR | 13,887 | 763,646 |
Kingfisher, ADR | 66,928 | 414,284 | J. Sainsbury, ADR | 14,245 | 318,803 |
LVMH Moet Hennessy | Kao, ADR | 22,970 | 531,755 | ||
Louis Vuitton, ADR | 38,319 | 889,767 | Kirin Holdings, ADR | 35,382 | 486,503 |
Marks & Spencer Group, ADR | 43,055 | 449,925 | Koninklijke Ahold, ADR | 35,754 | 436,199 |
Marui Group, ADR | 32,401 | 431,257 | L’Oreal, ADR | 44,914 | 888,399 |
Mediaset, ADR | 21,720 | 400,734 | Nestle, ADR | 99,955 | 5,152,680 |
Nissan Motor, ADR | 54,662 a | 832,502 | Orkla, ADR | 26,607 | 223,007 |
Panasonic, ADR | 59,420 | 749,286 | Sabmiller, ADR | 24,142 | 684,184 |
Pearson, ADR | 21,712 | 321,772 | Shiseido, ADR | 22,862 | 508,680 |
Peugeot, ADR | 12,756 a | 333,952 | Tesco, ADR | 77,821 | 1,455,253 |
Publicis Groupe, ADR | 42,032 | 877,208 | Unilever (NY Shares) | 39,403 | 1,055,606 |
Reed Elsevier, ADR | 10,831 | 347,025 | Unilever, ADR | 27,090 | 719,510 |
Sega Sammy Holdings, ADR | 136,084 | 500,789 | Yamazaki Baking, ADR | 5,023 | 611,350 |
Sharp, ADR | 42,418 | 400,002 | 23,166,569 | ||
Sodexo, ADR | 26,462 | 1,526,593 | Energy—7.4% | ||
Sony, ADR | 35,522 | 994,261 | BG Group, ADR | 20,587 | 1,653,136 |
Sumitomo Electric Industries, ADR | 3,702 | 398,107 | BP, ADR | 84,595 | 2,946,444 |
Television Broadcasts, ADR | 49,737 | 491,402 | ENI, ADR | 41,275 | 1,636,554 |
Toyota Motor, ADR | 40,448 | 2,743,992 | Repsol, ADR | 29,557 | 673,308 |
Vivendi, ADR | 24,593 | 569,328 | Royal Dutch Shell, Cl. A, ADR | 46,998 | 2,493,244 |
Volkswagen, ADR | 15,442 | 281,816 | Royal Dutch Shell, Cl. B, ADR | 39,993 | 2,052,841 |
Wolters Kluwer, ADR | 11,972 | 222,679 | Statoil, ADR | 32,955 | 617,577 |
WPP, ADR | 8,629 | 427,653 | Technip, ADR | 8,428 | 552,034 |
22,906,550 |
The Funds | 79 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon International Appreciation Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Energy (continued) | Financial (continued) | ||||
Total, ADR | 62,169 | 2,900,184 | Mitsubishi UFJ Financial Group, ADR | 350,892 | 1,666,737 |
Woodside Petroleum, ADR | 21,015 | 781,758 | Mizuho Financial Group, ADR | 230,842 | 710,993 |
16,307,080 | MS&AD Insurance | ||||
Financial—24.5% | Group Holdings, ADR | 49,502 | 549,472 | ||
Aegon (NY Shares) | 82,300 a | 420,553 | National Australia Bank, ADR | 67,129 | 1,392,927 |
Ageas, ADR | 128,757 | 316,742 | National Bank of Greece, ADR | 136,731 a | 337,726 |
Allianz, ADR | 164,170 | 1,676,176 | Nomura Holdings, ADR | 128,957 | 722,159 |
Alpha Bank, ADR | 55,424 | 96,438 | ORIX, ADR | 10,179 | 378,353 |
Australian & New Zealand | Prudential, ADR | 53,350 | 923,488 | ||
Banking Group, ADR | 84,598 | 1,710,572 | Shinsei Bank, ADR | 57,546 a | 85,168 |
AXA, ADR | 66,100 | 1,020,584 | Shizuoka Bank, ADR | 3,560 | 298,045 |
Banco Bilbao Vizcaya | Sino Land, ADR | 37,855 | 330,444 | ||
Argentaria, ADR | 139,898 | 1,687,170 | Social Generale, ADR | 109,645 | 1,118,379 |
Banco Santander, ADR | 234,383 | 2,739,937 | Sumitomo Mitsui | ||
Bank of Yokohama, ADR | 8,083 | 347,811 | Financial Group, ADR | 332,593 | 981,149 |
Barclays, ADR | 71,444 | 1,323,857 | Sumitomo Trust & Banking, ADR | 75,933 | 403,204 |
BNP Paribas, ADR | 49,361 | 1,536,114 | Sun Hung Kai Properties, ADR | 49,737 | 697,313 |
British Land, ADR | 47,476 | 337,080 | Suruga Bank, ADR | 3,621 | 316,520 |
Capitaland, ADR | 61,696 | 351,050 | Swire Pacific, ADR | 43,906 | 522,920 |
Cheung Kong Holdings, ADR | 50,143 | 624,782 | Swiss Reinsurance, ADR | 15,329 | 632,168 |
City Developments, ADR | 87,591 | 707,350 | Tokio Marine Holdings, ADR | 33,355 | 884,575 |
Commerzbank, ADR | 37,925 a | 299,607 | Tokyu Land, ADR | 10,001 | 395,419 |
Commonwealth Bank of Australia, ADR | 16,423 b | 2,205,753 | UBS | 106,851 a | 1,798,302 |
Credit Agricole, ADR | 22,091 | 138,511 | United Overseas Bank, ADR | 24,700 | 681,720 |
Credit Suisse Group, ADR | 34,774 | 1,525,883 | Westfield Group, ADR | 28,114 | 626,073 |
Daiwa House Industry, ADR | 4,061 | 381,775 | Westpac Banking, ADR | 19,023 | 1,849,797 |
Daiwa Securities Group, ADR | 89,390 | 362,923 | Zurich Financial Services, ADR | 49,197 | 1,095,617 |
Danske Bank, ADR | 27,008 a | 295,468 | 54,225,819 | ||
Deutsche Bank | 21,989 | 1,378,271 | Health Care—7.2% | ||
DnB NOR, ADR | 482 b | 53,342 | AstraZeneca, ADR | 38,812 | 1,918,477 |
Erste Group Bank, ADR | 4,433 | 80,858 | Cie Generale d’Opitique Essilor | ||
Hachijuni Bank, ADR | 2,799 | 149,047 | International, ADR | 15,084 | 457,498 |
Hang Seng Bank, ADR | 32,669 | 444,625 | Eisai, ADR | 28,923 | 1,044,120 |
HSBC Holdings, ADR | 96,578 | 4,751,638 | Elan, ADR | 9,218 a | 40,375 |
Hysan Development, ADR | 89,301 | 565,990 | Fresenius Medical Care & Co., ADR | 7,675 | 434,865 |
ING Groep, ADR | 146,569 a | 1,301,533 | GlaxoSmithKline, ADR | 66,999 | 2,505,763 |
Intesa Sanpaolo, ADR | 151,034 | 2,538,882 | Novartis, ADR | 37,887 | 1,988,689 |
Legal & General Group, ADR | 92,800 | 654,240 | Novo Nordisk, ADR | 23,115 | 1,979,106 |
Lend Lease, ADR | 184,716 | 1,140,991 | Roche Holding, ADR | 79,516 | 2,697,978 |
Lloyds Banking Group, ADR | 191,480 | 804,216 | Sanofi-Aventis, ADR | 60,039 | 1,717,716 |
Mitsubishi Estate, ADR | 5,695 | 857,382 | Smith & Nephew, ADR | 8,293 | 342,916 |
80
BNY Mellon International Appreciation Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Health Care (continued) | Industrial (continued) | ||||
Teva Pharmaceutical Industries, ADR | 17,900 | 905,382 | SKF, ADR | 38,690 | 689,456 |
16,032,885 | Sumitomo, ADR | 28,536 | 322,457 | ||
Industrial—11.7% | TNT, ADR | 18,567 | 470,859 | ||
ABB, ADR | 88,972 a | 1,723,388 | Tomkins, ADR | 27,526 | 542,813 |
Air France, ADR | 40,458 a | 530,809 | Toppan Printing, ADR | 7,981 | 298,090 |
All Nippon Airways, ADR | 79,722 a | 577,243 | Toto, ADR | 4,089 | 259,652 |
Asahi Glass, ADR | 66,076 | 634,330 | Vestas Wind Systems, ADR | 11,708 a | 144,243 |
Atlas Copco, Cl. A, ADR | 47,447 | 720,720 | Volvo, ADR | 65,152 a | 753,809 |
Atlas Copco, Cl. B, ADR | 47,220 | 646,914 | Wolseley, ADR | 8,599 a | 16,166 |
Bae Systems, ADR | 11,421 | 206,377 | 25,809,910 | ||
British Airways, ADR | 11,481 | 369,918 | Information Technology—5.0% | ||
Dai Nippon Printing, ADR | 30,828 | 356,372 | Advantest, ADR | 17,445 | 329,885 |
Deutsche Lufthansa, ADR | 34,416 a | 538,266 | Canon, ADR | 37,897 | 1,550,366 |
European Aeronautic Defence | Computershare, ADR | 47,642 | 404,957 | ||
and Space, ADR | 19,043 a | 419,898 | Dassault Systemes, ADR | 6,885 | 415,992 |
Experian, ADR | 29,740 | 283,422 | Fujifilm Holdings, ADR | 19,819 | 593,579 |
Hutchison Whampoa, ADR | 9,330 | 341,665 | Fujitsu, ADR | 13,602 | 474,302 |
Invensys, ADR | 88,290 | 312,361 | Hitachi, ADR | 11,435 a | 463,689 |
ITOCHU, ADR | 5,941 | 489,063 | Kyocera, ADR | 7,112 | 608,503 |
Kajima, ADR | 12,417 | 291,313 | Nidec, ADR | 26,881 | 586,006 |
Kawasaki Heavy Industries, ADR | 38,754 | 413,525 | Nintendo, ADR | 26,353 | 915,767 |
Keppel, ADR | 37,443 | 492,750 | Nokia, ADR | 112,414 | 962,264 |
Komatsu, ADR | 35,588 | 719,945 | Omron, ADR | 21,660 | 455,510 |
Koninklijke Philips | Ricoh, ADR | 4,031 | 257,823 | ||
Electronics (NY Shares) | 33,142 | 924,993 | Sage Group, ADR | 16,187 | 243,938 |
Kubota, ADR | 16,871 | 674,165 | SAP, ADR | 22,962 | 999,765 |
Marubeni, ADR | 5,423 | 276,302 | TDK, ADR | 8,571 | 445,692 |
Metso, ADR | 18,812 | 689,302 | Telefonaktiebolaget LM | ||
Mitsubishi Electric, ADR | 9,155 | 731,210 | Ericsson, ADR | 104,404 | 1,005,410 |
Mitsubishi, ADR | 21,557 | 916,173 | Trend Micro, ADR | 12,337 | 331,619 |
Mitsui & Co., ADR | 2,811 | 722,427 | 11,045,067 | ||
MTR, ADR | 9,562 | 341,741 | Materials—10.8% | ||
Neptune Orient Lines, ADR | 77,900 a | 439,325 | Air Liquide, ADR | 36,988 | 767,500 |
Nippon Yusen, ADR | 63,873 | 484,796 | Akzo Nobel, ADR | 5,605 | 294,823 |
NSK, ADR | 7,242 | 427,640 | Alumina, ADR | 49,520 | 303,558 |
Olympus, ADR | 62,140 | 1,471,475 | Amcor, ADR | 26,296 | 627,160 |
Rolls-Royce Group, ADR | 14,497 | 613,223 | Anglo American, ADR | 83,894 | 1,494,152 |
Ryanair Holdings, ADR | 10,360 a | 293,706 | ArcelorMittal (NY Shares) | 21,105 | 610,568 |
Sandvik, ADR | 50,376 | 591,918 | Asahi Kasei, ADR | 8,897 | 435,063 |
Secom, ADR | 4,640 | 399,550 | BASF, ADR | 31,896 | 1,679,005 |
Siemens, ADR | 24,811 | 2,246,140 |
The Funds | 81 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon International Appreciation Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Materials (continued) | Telecommunications (continued) | ||||
Bayer, ADR | 24,830 | 1,510,657 | Hellenic Telecommunications | ||
BHP Billiton, ADR | 33,034 | 1,846,601 | Organization, ADR | 7,159 | 23,983 |
BHP Billiton, ADR | 49,704 | 3,306,807 | Koninklijke KPN, ADR | 40,229 | 582,516 |
Boral, ADR | 29,021 | 454,611 | NICE Systems, ADR | 1,700 a | 45,560 |
CRH, ADR | 16,353 | 256,252 | Nippon Telegraph & | ||
James Hardie Industries, ADR | 15,724 a | 378,162 | Telephone, ADR | 39,582 | 852,596 |
Johnson Matthey, ADR | 6,130 | 297,918 | NTT Docomo, ADR | 56,665 | 955,939 |
Kobe Steel, ADR | 52,450 | 543,424 | Portugal Telecom, ADR | 17,340 | 202,358 |
Koninklijke DSM, ADR | 11,846 | 123,198 | Singapore | ||
Telecommunications, ADR | 23,960 | 542,694 | |||
Lafarge, ADR | 20,620 | 236,099 | |||
Swisscom, ADR | 7,236 | 280,395 | |||
Newcrest Mining, ADR | 17,239 | 571,473 | |||
Telecom Corp New Zealand, ADR | 13,228 | 93,125 | |||
Nippon Steel, ADR | 21,965 | 722,648 | |||
Telecom Italia, ADR | 29,570 | 324,679 | |||
Nisshin Steel, ADR | 6,880 | 221,222 | |||
Telecom Italia, ADR | 26,496 | 359,551 | |||
Nitto Denko, ADR | 1,531 | 485,342 | |||
Telefonica, ADR | 38,476 | 2,559,039 | |||
Norsk Hydro, ADR | 40,233 | 189,900 | |||
Telenor, ADR | 6,496 | 284,460 | |||
Oji Paper, ADR | 848 | 40,193 | |||
Telstra, ADR | 30,948 | 379,732 | |||
Panasonic Electric Works, ADR | 3,672 | 484,116 | |||
Vodafone Group, ADR | 131,524 | 3,180,250 | |||
Rexam, ADR | 13,836 | 318,090 | |||
13,277,240 | |||||
Rio Tinto, ADR | 38,400 | 1,936,512 | |||
Utilities—5.1% | |||||
Stora Enso, ADR | 52,234 | 401,157 | |||
Centrica, ADR | 44,440 | 887,022 | |||
Sumitomo Metal Industries, ADR | 22,929 | 535,163 | |||
CLP Holdings, ADR | 76,213 | 589,126 | |||
Svenska Cellulosa, ADR | 38,119 | 504,314 | |||
E.ON, ADR | 56,894 | 1,598,721 | |||
Syngenta, ADR | 18,695 | 860,718 | |||
Enel, ADR | 168,807 | 803,521 | |||
Taiheiyo Cement, ADR | 12,787 a | 143,144 | |||
Energias de Portugal, ADR | 11,130 | 338,018 | |||
Teijin, ADR | 14,424 | 443,826 | |||
GDF Suez, ADR | 36,436 | 1,122,958 | |||
Toray Industries, ADR | 8,528 | 453,348 | |||
Hong Kong & China Gas, ADR | 217,154 | 508,140 | |||
UPM-Kymmene, ADR | 39,622 | 540,444 | |||
Iberdrola, ADR | 47,893 | 1,343,399 | |||
24,017,168 | |||||
International Power, ADR | 11,394 | 644,786 | |||
Telecommunications—6.0% | |||||
National Grid, ADR | 15,908 | 670,840 | |||
Alcatel-Lucent, ADR | 87,481 a | 224,826 | |||
RWE, ADR | 21,130 | 1,379,789 | |||
BT Group, ADR | 23,103 | 470,377 | |||
Scottish & Southern Energy, ADR | 35,782 | 629,405 | |||
Deutsche Telekom, ADR | 70,834 | 926,509 | |||
United Utilities Group, ADR | 14,047 | 243,575 | |||
France Telecom, ADR | 48,702 | 988,651 |
82
BNY Mellon International Appreciation Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Other Investment—.9% | Shares | Value ($) |
Utilities (continued) | Registered Investment Company; | ||||
Veolia Enviroment, ADR | 26,277 | 610,677 | Dreyfus | ||
11,369,977 | Institutional | ||||
Total Common Stocks | Preferred Plus | ||||
(cost $279,750,616) | 218,158,265 | Money Market Fund | |||
(cost $1,978,000) | 1,978,000 d | 1,978,000 | |||
Principal | Total Investments | ||||
Short-Term Investments—.1% | Amount ($) | Value ($) | (cost $281,958,610) | 99.5% | 220,366,260 |
U.S. Treasury Bills; | Cash and Receivables (Net) | .5% | 1,162,802 | ||
0.12%, 9/9/10 | |||||
(cost $229,994) | 230,000 c | 229,995 | Net Assets | 100.0% | 221,529,062 |
ADR—American Depository Receipts |
a Non-income producing security. |
b Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in transactions exempt from registration, normally to qualified |
institutional buyers.At August 31, 2010, these securities had a total market value of $2,259,095 or 1.0% of net assets. |
c Held by a broker as collateral for open financial futures positions. |
d Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Financial | 24.5 | Health Care | 7.2 |
Industrial | 11.7 | Telecommunications | 6.0 |
Materials | 10.8 | Utilities | 5.1 |
Consumer Staples | 10.5 | Information Technology | 5.0 |
Consumer Discretionary | 10.3 | Short-Term/Money Market Investments | 1.0 |
Energy | 7.4 | 99.5 | |
† Based on net assets. | |||
See notes to financial statements. |
The Funds 83
STATEMENT OF FINANCIAL FUTURES
August 31, 2010
Market Value | Unrealized | |||
BNY Mellon | Covered by | Appreciation | ||
International Appreciation Fund | Contracts | Contracts ($) | Expiration | (Depreciation) ($) |
Financial Futures Long | ||||
SPI 200 Futures | 3 | 292,735 | September 2010 | (3,857) |
DJ Euro STOXX 50 | 32 | 1,060,435 | September 2010 | (34,658) |
FTSE 100 | 10 | 797,727 | September 2010 | 10,091 |
TOPIX | 8 | 762,290 | September 2010 | (29,501) |
Gross Unrealized Appreciation | 10,091 | |||
Gross Unrealized Depreciation | (68,016) | |||
See notes to financial statements. |
84
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon Balanced Fund | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes | Rate (%) | Date | Amount ($) | Value ($) |
Asset—Backed Certificates—.1% | ||||
CIT Equipment Collateral, Ser. 2009-VT1, Cl. A2 | 2.20 | 6/15/11 | 396,638 a | 396,980 |
Asset-Backed Ctfs./Auto Receivables—1.1% | ||||
Ally Auto Receivables Trust, Ser. 2010-3, Cl. A4 | 1.55 | 8/17/15 | 300,000 | 301,274 |
Franklin Auto Trust, Ser. 2007-1, Cl. A4 | 5.03 | 2/16/15 | 713,170 | 714,218 |
Harley-Davidson Motorcycle Trust, Ser. 2009-2, Cl. A3 | 2.62 | 3/15/14 | 1,520,000 | 1,546,249 |
Harley-Davidson Motorcycle Trust, Ser. 2007-1, Cl. A4 | 5.21 | 6/17/13 | 325,674 | 334,444 |
Household Automotive Trust, Ser. 2007-1, Cl. A4 | 5.33 | 11/17/13 | 406,381 | 414,792 |
Hyundai Auto Receivables Trust, Ser. 2006-B, Cl. A4 | 5.15 | 5/15/13 | 326,195 | 330,061 |
3,641,038 | ||||
Automotive, Trucks & Parts—.2% | ||||
Johnson Controls, Sr. Unscd. Notes | 5.50 | 1/15/16 | 750,000 | 848,737 |
Banks—2.2% | ||||
Bank of America, Sub. Notes | 5.49 | 3/15/19 | 1,250,000 | 1,277,408 |
Bank of America, Sr. Unscd. Notes | 5.63 | 7/1/20 | 520,000 | 536,723 |
Barclays Bank, Sr. Unscd. Notes, Ser. 1 | 5.00 | 9/22/16 | 1,200,000 | 1,303,850 |
Citigroup, Sub. Notes | 5.00 | 9/15/14 | 500,000 | 514,220 |
Citigroup, Sr. Unscd. Notes | 6.13 | 11/21/17 | 470,000 | 508,665 |
Goldman Sachs Group, Sr. Unscd. Notes | 3.63 | 8/1/12 | 465,000 | 481,528 |
Goldman Sachs Group, Sub. Notes | 6.75 | 10/1/37 | 600,000 | 614,693 |
JPMorgan Chase & Co., Sub. Notes | 5.13 | 9/15/14 | 535,000 | 585,000 |
Morgan Stanley, Sub. Notes | 4.75 | 4/1/14 | 855,000 | 881,228 |
Royal Bank of Scotland, Bank Gtd. Notes | 4.88 | 3/16/15 | 585,000 | 611,068 |
7,314,383 | ||||
Commercial & Professional Services—.2% | ||||
Seminole Tribe of Florida, Sr. Scd. Notes | 5.80 | 10/1/13 | 870,000 a | 872,547 |
Commercial Mortgage Pass-Through Ctfs.—2.0% | ||||
Banc of America Commercial Mortgage, Ser. 2005-6, Cl. A2 | 5.17 | 9/10/47 | 260,000 b | 261,200 |
Bear Stearns Commercial Mortgage Securities, | ||||
Ser. 2004-PWR5, Cl. A3 | 4.57 | 7/11/42 | 695,000 | 705,386 |
Chase Commercial Mortgage Securities, Ser. 2000-3, Cl. A2 | 7.32 | 10/15/32 | 136,034 | 135,966 |
CS First Boston Mortgage Securities, Ser. 2005-C4, Cl. A2 | 5.02 | 8/15/38 | 135,155 | 135,234 |
First Union National Bank Commercial | ||||
Mortgage, Ser. 2001-C2, Cl. A2 | 6.66 | 1/12/43 | 417,041 | 421,867 |
GE Capital Commercial Mortgage, Ser. 2004-C3, Cl. A3 | 4.87 | 7/10/39 | 865,000 b | 891,285 |
GMAC Commercial Mortgage Securities, Ser. 2001-C2, Cl. B | 6.79 | 4/15/34 | 380,000 | 392,863 |
GMAC Commercial Mortgage Securities, Ser. 2001-C1, Cl. D | 7.03 | 4/15/34 | 635,000 b | 643,149 |
JP Morgan Chase Commercial Mortgage | ||||
Securities, Ser. 2004-C1, Cl. A2 | 4.30 | 1/15/38 | 30,488 | 31,155 |
JP Morgan Chase Commercial Mortgage | ||||
Securities, Ser. 2001-CIB2, Cl. A3 | 6.43 | 4/15/35 | 1,182,295 | 1,212,916 |
LB-UBS Commercial Mortgage Trust, Ser. 2003-C7, Cl. A2 | 4.06 | 9/15/27 | 63,471 b | 63,492 |
LB-UBS Commercial Mortgage Trust, Ser. 2000-C5, Cl. A2 | 6.51 | 12/15/26 | 335,561 | 336,386 |
The Funds | 85 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Balanced Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Commercial Mortgage Pass-Through Ctfs. (continued) | ||||
Prudential Mortgage Capital Funding, Ser. 2001-ROCK, Cl. A2 | 6.61 | 5/10/34 | 831,270 | 845,732 |
Wachovia Bank Commercial Mortgage Trust, Ser. 2003-C3, Cl. A1 | 4.04 | 2/15/35 | 81,261 | 82,350 |
Wachovia Bank Commercial Mortgage Trust, Ser. 2005-C20, Cl. A4 | 5.29 | 7/15/42 | 61,787 b | 61,722 |
Wachovia Bank Commercial Mortgage Trust, Ser. 2007-C32, Cl. A1 | 5.69 | 6/15/49 | 505,085 | 516,154 |
6,736,857 | ||||
Diversified Financial Services—1.7% | ||||
AEP Texas Central Transition | ||||
Funding, Sr. Scd. Bonds, Ser. A-4 | 5.17 | 1/1/20 | 915,000 | 1,069,794 |
Blackrock, Sr. Unscd. Notes | 6.25 | 9/15/17 | 710,000 | 836,536 |
General Electric Capital, Notes | 5.63 | 9/15/17 | 795,000 | 879,427 |
HSBC Finance, Sr. Unscd. Notes | 5.00 | 6/30/15 | 940,000 | 1,015,012 |
John Deere Capital, Sr. Unscd. Notes | 7.00 | 3/15/12 | 435,000 | 476,854 |
NYSE Euronext, Sr. Unscd. Notes | 4.80 | 6/28/13 | 895,000 | 975,389 |
TD Ameritrade Holding, Gtd. Notes | 4.15 | 12/1/14 | 545,000 | 575,347 |
5,828,359 | ||||
Electric Utilities—.2% | ||||
Xcel Energy, Sr. Unscd. Notes | 4.70 | 5/15/20 | 510,000 | 557,574 |
Entertainment—.2% | ||||
Agua Caliente Band of Cahuilla Indians, Sr. Scd. Notes | 6.08 | 10/1/16 | 328,000 a | 318,855 |
Agua Caliente Band of Cahuilla Indians, Sr. Scd. Notes | 6.44 | 10/1/16 | 410,000 a | 398,569 |
717,424 | ||||
Food & Beverages—.6% | ||||
Diageo Finance, Gtd. Notes | 5.50 | 4/1/13 | 435,000 | 480,902 |
General Mills, Sr. Unscd. Notes | 5.65 | 2/15/19 | 195,000 | 230,362 |
Kraft Foods, Sr. Unscd. Notes | 4.13 | 2/9/16 | 845,000 | 905,113 |
Pepsico, Sr. Unscd. Notes | 4.50 | 1/15/20 | 570,000 | 634,302 |
2,250,679 | ||||
Foreign/Governmental—.6% | ||||
Province of Ontario Canada, Sr. Unscd. Bonds | 4.00 | 10/7/19 | 805,000 c | 877,072 |
United Mexican States, Sr. Unscd. Notes | 5.63 | 1/15/17 | 825,000 | 930,188 |
United Mexican States, Sr. Unscd. Notes | 6.63 | 3/3/15 | 185,000 | 216,913 |
2,024,173 | ||||
Industrials—.2% | ||||
CRH America, Gtd. Notes | 5.30 | 10/15/13 | 695,000 | 745,800 |
Manufacturing—.3% | ||||
Tyco International Finance, Gtd. Notes | 3.38 | 10/15/15 | 900,000 | 946,613 |
Media & Telecommunications—2.0% | ||||
AT&T, Sr. Unscd. Notes | 5.80 | 2/15/19 | 670,000 | 791,328 |
AT&T, Sr. Unscd. Notes | 5.88 | 8/15/12 | 695,000 | 758,704 |
Cisco Systems, Sr. Unscd. Notes | 5.50 | 2/22/16 | 465,000 | 548,958 |
Comcast, Gtd. Notes | 5.90 | 3/15/16 | 735,000 | 849,977 |
News America Holdings, Gtd. Debs. | 7.60 | 10/11/15 | 365,000 | 440,298 |
86
BNY Mellon Balanced Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Media & Telecommunications (continued) | ||||
News America, Gtd. Notes | 6.15 | 3/1/37 | 250,000 | 274,944 |
Rogers Communications, Gtd. Notes | 6.38 | 3/1/14 | 530,000 | 606,610 |
Telefonica Emisiones, Gtd. Notes | 4.95 | 1/15/15 | 745,000 | 805,065 |
Time Warner, Gtd. Notes | 3.15 | 7/15/15 | 435,000 | 447,550 |
Verizon Communications, Sr. Unscd. Notes | 5.50 | 2/15/18 | 1,050,000 | 1,201,899 |
6,725,333 | ||||
Municipal Bonds—1.3% | ||||
California GO (Build America Bonds) (Various Purpose) | 7.30 | 10/1/39 | 1,350,000 | 1,493,991 |
Illinois, GO | 4.42 | 1/1/15 | 440,000 | 450,094 |
Los Angeles Community College District, GO (Build America Bonds) | 6.75 | 8/1/49 | 1,275,000 | 1,444,652 |
Municipal Electric Authority of Georgia, GO (Plant Vogtle | ||||
Units 3 and 4 Project J Bonds) (Build America Bonds) | 6.64 | 4/1/57 | 425,000 | 455,655 |
State of Washington Motor Vehicle | ||||
Fuel Tax GO (Build America Bonds) | 3.55 | 8/1/17 | 500,000 | 523,425 |
4,367,817 | ||||
Oil & Gas—.3% | ||||
BP Capital Markets, Gtd. Notes | 3.88 | 3/10/15 | 700,000 | 694,112 |
Shell International Finance, Gtd. Notes | 3.10 | 6/28/15 | 250,000 | 262,030 |
956,142 | ||||
Property & Casualty Insurance—.4% | ||||
MetLife, Sr. Unscd. Notes | 7.72 | 2/15/19 | 535,000 | 671,824 |
Prudential Financial, Sr. Unscd. Notes | 4.75 | 9/17/15 | 590,000 | 633,591 |
1,305,415 | ||||
Real Estate—.2% | ||||
Simon Property Group, Sr. Unscd. Notes | 5.65 | 2/1/20 | 685,000 | 768,607 |
Technology—.6% | ||||
International Business Machines, Sr. Unscd. Debs. | 7.00 | 10/30/25 | 320,000 | 421,340 |
Intuit, Sr. Unscd. Notes | 5.40 | 3/15/12 | 710,000 | 751,792 |
Oracle, Sr. Unscd. Notes | 5.75 | 4/15/18 | 765,000 | 916,711 |
2,089,843 | ||||
Transportation—.1% | ||||
GATX, Sr. Unscd. Notes | 4.75 | 5/15/15 | 250,000 | 267,014 |
U.S. Government Agencies—1.8% | ||||
Federal Agricultural Mortgage Corp., Notes | 2.10 | 8/10/12 | 735,000 | 757,448 |
Federal Home Loan Banks, Bonds | 3.63 | 10/18/13 | 470,000 | 509,709 |
Federal Home Loan Mortgage Corp., Notes, Ser. 1 | 2.00 | 9/28/12 | 875,000 d | 875,797 |
Federal Home Loan Mortgage Corp., Notes, Ser. 1 | 2.00 | 11/5/12 | 875,000 d | 877,164 |
Federal National Mortgage Association, Notes | 2.00 | 9/28/12 | 875,000 d | 875,975 |
Federal National Mortgage Association, Notes | 2.63 | 12/10/14 | 670,000 d | 674,236 |
Federal National Mortgage Association, Notes | 3.00 | 9/16/14 | 530,000 d | 566,191 |
Federal National Mortgage Association, Notes | 4.38 | 7/17/13 | 775,000 d | 851,899 |
5,988,419 |
The Funds | 87 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Balanced Fund (continued) | |||||
Principal | Principal | ||||
Bonds and Notes (continued) | Amount ($) | Value ($) | Amount ($) | Value ($) | |
U.S. Government Agencies/ | U.S. Government Securities (continued) | ||||
Mortgage-Backed—13.4% | U.S. Treasury Notes (continued): | ||||
Federal Home Loan Mortgage Corp.: | 2.63%, 8/15/20 | 500,000 | 506,485 | ||
4.50%, 3/1/21—7/1/40 | 763,139 d | 803,176 | 3.13%, 5/15/19 | 695,000 | 740,501 |
5.00%, 4/1/22—7/1/40 | 6,328,504 d | 6,735,698 | 3.25%, 5/31/16 | 165,000 c | 179,979 |
5.50%, 12/1/37—12/1/38 | 3,848,232 d | 4,115,516 | 3.38%, 11/15/19 | 500,000 | 540,118 |
5.76%, 4/1/37 | 196,855 b,d | 209,974 | 3.50%, 5/15/20 | 605,000 | 659,308 |
6.00%, 7/1/37—6/1/39 | 2,938,128 d | 3,163,899 | 3.63%, 2/15/20 | 3,245,000 | 3,571,781 |
6.50%, 4/1/39 | 618,080 d | 672,818 | 4.00%, 11/15/12 | 5,160,000 | 5,560,302 |
6.50%, 4/1/39 | 943,299 d | 1,026,838 | 4.25%, 8/15/13 | 2,600,000 | 2,873,203 |
7.00%, 8/1/29 | 65,759 d | 74,593 | 4.25%, 11/15/13 | 1,065,000 | 1,184,480 |
Federal National Mortgage Association: | 4.50%, 11/15/15 | 945,000 | 1,095,019 | ||
4.00%, 9/1/24—1/1/25 | 1,864,914 d | 1,964,999 | 4.50%, 5/15/17 | 615,000 | 717,869 |
4.50%, 3/1/23—5/1/40 | 7,115,921 d | 7,507,251 | 5.13%, 5/15/16 | 1,390,000 | 1,662,571 |
5.00%, 4/1/23—7/1/23 | 1,764,607 d | 1,878,239 | 32,927,886 | ||
5.50%, 4/1/36—6/1/38 | 3,118,585 d | 3,345,707 | Total Bonds and Notes | ||
5.55%, 4/1/37 | 300,186 b,d | 319,747 | (cost $126,621,392) | 133,636,116 | |
5.82%, 8/1/37 | 1,133,017 b,d | 1,216,225 | |||
5.88%, 5/1/37 | 496,578 b,d | 533,202 | |||
6.00%, 4/1/33—10/1/38 | 3,508,334 d | 3,802,412 | Common Stocks—34.9% | Shares | Value ($) |
6.50%, 10/1/36—1/1/39 | 3,270,387 d | 3,569,055 | Consumer Discretionary—4.9% | ||
7.00%, 6/1/32 | 87,581 d | 99,276 | Amazon.com | 13,880 f | 1,732,640 |
Ser. 2003-64, Cl. BC, | |||||
Autoliv | 30,900 | 1,672,926 | |||
5.50%, 3/25/30 | 1,089,165 d | 1,116,940 | |||
Carnival | 17,920 | 558,746 | |||
Government National | |||||
Mortgage Association I: | DIRECTV, Cl. A | 15,940 f | 604,445 | ||
5.00%, 11/15/34—3/15/36 | 2,249,119 | 2,432,370 | Home Depot | 50,400 | 1,401,624 |
6.00%, 7/15/38 | 706,619 | 770,541 | Las Vegas Sands | 14,550 f | 412,202 |
45,358,476 | Limited Brands | 34,380 | 811,368 | ||
U.S. Government Securities—9.7% | Mattel | 34,690 | 728,143 | ||
U.S. Treasury Bonds; | Newell Rubbermaid | 75,450 | 1,133,259 | ||
6.25%, 8/15/23 | 310,000 | 423,441 | News, Cl. A | 75,010 | 942,876 |
U.S. Treasury Inflation | News, Cl. B | 93,990 | 1,325,259 | ||
Protected Securities: | |||||
Nordstrom | 47,800 | 1,382,376 | |||
Bonds, 2.38%, 1/15/27 | 1,399,714 e | 1,611,420 | |||
Notes, 0.50%, 4/15/15 | 658,806 e | 672,239 | Stanley Black & Decker | 10,750 | 576,630 |
Notes, 0.63%, 4/15/13 | 582,656 e | 596,039 | Target | 36,950 | 1,890,362 |
Notes, 1.38%, 7/15/18 | 1,106,837 e | 1,168,318 | Time Warner | 22,443 | 672,841 |
Notes, 1.38%, 1/15/20 | 932,382 e | 974,339 | Whirlpool | 10,530 | 780,905 |
Notes, 2.38%, 1/15/17 | 1,399,714 e | 1,562,103 | |||
16,626,602 | |||||
U.S. Treasury Notes: | |||||
Consumer Staples—3.3% | |||||
0.75%, 8/15/13 | 30,000 | 30,042 | |||
1.13%, 12/15/12 | 55,000 | 55,713 | Clorox | 21,850 | 1,416,317 |
1.13%, 6/15/13 | 990,000 | 1,002,223 | Energizer Holdings | 23,760 f | 1,498,068 |
1.38%, 10/15/12 | 315,000 | 320,759 | Nestle, ADR | 30,720 | 1,583,616 |
1.38%, 5/15/13 | 525,000 | 535,215 | PepsiCo | 49,870 | 3,200,657 |
1.75%, 4/15/13 | 1,720,000 | 1,770,253 | |||
Philip Morris International | 32,900 | 1,692,376 | |||
1.75%, 7/31/15 | 2,315,000 c | 2,363,837 | |||
2.38%, 9/30/14 | 205,000 | 215,715 | Unilever, ADR | 66,200 | 1,758,272 |
2.63%, 7/31/14 | 315,000 | 334,614 | 11,149,306 |
88
BNY Mellon Balanced Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Shares | Value ($) | |
Energy—4.2% | Health Care (continued) | ||||
Alpha Natural Resources | 15,760 f | 585,169 | Pfizer | 184,730 | 2,942,749 |
Anadarko Petroleum | 22,990 | 1,057,310 | St. Jude Medical | 16,480 f | 569,714 |
Apache | 6,730 | 604,691 | Thermo Fisher Scientific | 13,050 f | 549,666 |
Chevron | 24,040 | 1,782,806 | Zimmer Holdings | 16,200 f | 764,154 |
ConocoPhillips | 28,960 | 1,518,373 | 15,869,830 | ||
ENSCO, ADR | 27,600 | 1,135,188 | Industrial—3.1% | ||
EOG Resources | 10,390 | 902,579 | AMR | 71,310 f | 435,704 |
Hess | 33,210 | 1,668,803 | Caterpillar | 28,380 | 1,849,241 |
Newfield Exploration | 32,570 f | 1,563,686 | Cummins | 15,900 | 1,183,119 |
Occidental Petroleum | 34,790 | 2,542,453 | Dover | 33,060 | 1,479,766 |
Valero Energy | 43,360 | 683,787 | General Electric | 55,900 | 809,432 |
14,044,845 | Ingersoll-Rand | 24,230 | 788,202 | ||
Exchange Traded Funds—.6% | Norfolk Southern | 20,000 | 1,073,600 | ||
Standard & Poor’s | Raytheon | 32,270 | 1,417,298 | ||
Depository Receipts | Textron | 51,430 | 877,910 | ||
S&P 500 ETF Trust | 20,470 | 2,155,696 | Tyco International | 20,032 | 746,793 |
Financial—4.5% | 10,661,065 | ||||
American Express | 42,610 | 1,698,861 | Information Technology—6.7% | ||
Bank of America | 214,540 | 2,671,023 | Apple | 16,260 f | 3,957,196 |
Capital One Financial | 39,810 | 1,507,207 | BMC Software | 25,250 f | 910,515 |
Franklin Resources | 9,030 | 871,485 | Cisco Systems | 97,480 f | 1,954,474 |
Genworth Financial, Cl. A | 77,310 f | 837,267 | EMC | 54,450 f | 993,168 |
Goldman Sachs Group | 4,000 | 547,760 | Google, Cl. A | 4,320 f | 1,944,086 |
JPMorgan Chase & Co. | 74,972 | 2,725,982 | Informatica | 56,000 f | 1,800,960 |
Lincoln National | 39,950 | 933,232 | International | ||
MetLife | 32,510 | 1,222,376 | Business Machines | 13,790 | 1,699,342 |
Morgan Stanley | 25,760 | 636,014 | Microsoft | 58,480 | 1,373,110 |
Wells Fargo & Co. | 55,240 | 1,300,902 | Motorola | 186,680 f | 1,405,700 |
XL Group | 20,670 | 370,200 | NetApp | 36,110 f | 1,460,288 |
15,322,309 | Oracle | 101,380 | 2,218,194 | ||
Health Care—4.7% | QUALCOMM | 43,490 | 1,666,102 | ||
Allscripts Healthcare Solutions | 51,460 f | 859,897 | Teradata | 42,333 f | 1,385,982 |
AmerisourceBergen | 59,100 | 1,612,248 | 22,769,117 | ||
Amylin Pharmaceuticals | 73,900 f | 1,517,906 | Materials—.8% | ||
CIGNA | 26,820 | 864,140 | CF Industries Holdings | 10,600 | 980,500 |
Covidien | 17,722 | 626,296 | E.I. du Pont de Nemours & Co. | 40,900 | 1,667,493 |
Dendreon | 16,370 f | 586,701 | 2,647,993 | ||
Gilead Sciences | 13,790 f | 439,349 | Telecommunication | ||
Hospira | 17,290 f | 888,014 | Services—1.0% | ||
Human Genome Sciences | 55,890 f | 1,625,840 | AT & T | 119,147 | 3,220,543 |
King Pharmaceuticals | 68,690 f | 598,290 | Utilities—1.1% | ||
Mednax | 10,860 f | 503,252 | American Electric Power | 23,220 | 822,220 |
Merck & Co. | 26,212 | 921,614 | Entergy | 17,010 | 1,341,068 |
The Funds | 89 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Balanced Fund (continued) | |||||
Common Stocks (continued) | Shares | Value ($) | Other Investments (continued) | Shares | Value ($) |
Utilities (continued) | Registered Investment | ||||
Public Service | Company (continued); | ||||
Enterprise Group | 49,580 | 1,584,577 | Dreyfus Institutional Preferred | ||
3,747,865 | Plus Money Market Fund | 2,020,000 h | 2,020,000 | ||
Total Common Stocks | Total Other Investments | ||||
(cost $107,768,900) | 118,215,171 | (cost $102,638,359) | 87,000,433 | ||
Investment of Cash Collateral | |||||
Other Investments—25.6% | for Securities Loaned—1.0% | ||||
Registered | Registered Investment Company; | ||||
Investment Company; | Dreyfus Institutional Cash | ||||
BNY Mellon Emerging | Advantage Plus Fund | ||||
Markets Fund, Cl. M | 2,805,819 g | 28,114,308 | (cost $3,312,094) | 3,312,094 h | 3,312,094 |
BNY Mellon International | |||||
Fund, Cl. M | 2,862,931 g | 26,854,293 | Total Investments | ||
(cost $340,340,745) | 100.9% | 342,163,814 | |||
BNY Mellon Mid Cap | |||||
Stock Fund, Cl. M | 2,153,216 g | 20,046,439 | Liabilities, Less Cash and Receivables | (.9%) | (3,011,221) |
BNY Mellon Small Cap | Net Assets | 100.0% | 339,152,593 | ||
Stock Fund, Cl. M | 1,114,697 g | 9,965,393 |
ADR—American Depository Receipts |
GO—General Obligations |
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 August 31, 2010, these securities had a total market value of $1,986,951 or 0.6% of net assets. |
b Variable rate security—interest rate subject to periodic change. |
c Security, or portion thereof, on loan.At August 31, 2010, the total market value of the fund’s securities on loan is $3,420,889 and the total market value of the collateral held by |
the fund is $3,496,618, consisting of cash collateral of $3,312,094 and U.S. Government and Agency securities valued at $184,524. |
d On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Federal National Mortgage Association and Federal Home Loan Mortgage Corporation into |
conservatorship with FHFA as the conservator.As such, the FHFA will oversee the continuing affairs of these companies. |
e Principal amount for accrual purposes is periodically adjusted based on changes in the Consumer Price Index. |
f Non-income producing security. |
g Investment in affiliated mutual fund. |
h Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Common Stocks | 34.9 | Asset/Mortgage-Backed | 3.2 |
U.S. Government & Agencies | 24.9 | Money Market Investments | 1.6 |
Mutual Funds: Foreign | 16.2 | Municipal Bonds | 1.3 |
Corporate Bonds | 9.4 | Foreign/Governmental | .6 |
Mutual Funds: Domestic | 8.8 | 100.9 | |
† Based on net assets. | |||
See notes to financial statements. |
90
STATEMENTS OF ASSETS AND LIABILITIES
August 31, 2010
BNY Mellon | BNY Mellon | BNY Mellon | BNY Mellon | BNY Mellon | |
Large Cap | Large Cap Market | Tax-Sensitive Large Cap | Income | Mid Cap | |
Stock Fund | Opportunities Fund | Multi-Strategy Fund | Stock Fund | Stock Fund | |
Assets ($): | |||||
Investments in securities—See Statement of | |||||
Investments† (including securities | |||||
on loan)††—Note 2(b): | |||||
Unaffiliated issuers | 1,184,024,790 | 3,862,792 | 8,640,440 | 92,083,898 | 1,188,072,548 |
Affiliated issuers | 48,218,233 | 2,318,360 | 1,454,220 | 226,325 | 114,310,288 |
Cash | — | 156,642 | 2,677,233 | — | — |
Receivable for shares of | |||||
Beneficial Interest subscribed | 9,877,251 | 43,248 | 463,490 | — | 26,407,456 |
Dividends and interest receivable | 2,582,830 | 2,958 | 7,193 | 270,191 | 747,464 |
Receivable for investment securities sold | 338,699 | 143,550 | 44,542 | — | 488,944 |
Due from The Dreyfus Corporation | |||||
and affiliates—Note 4(c) | — | 25,152 | 23,922 | — | — |
Prepaid expenses | 22,576 | 83,153 | 83,153 | 17,893 | 35,932 |
1,245,064,379 | 6,635,855 | 13,394,193 | 92,598,307 | 1,330,062,632 | |
Liabilities ($): | |||||
Due to The Dreyfus Corporation | |||||
and affiliates—Note 4(c) | 699,868 | — | — | 56,837 | 807,680 |
Due to Administrator—Note 4(a) | 155,995 | 205 | 394 | 10,248 | 131,205 |
Cash overdraft due to Custodian | 1,326,006 | — | — | 88,167 | 3,520,332 |
Liability for securities on loan—Note 2(b) | 48,126,233 | — | — | 226,325 | 106,687,288 |
Payable for investment securities purchased | 8,277,537 | 1,441,973 | 2,937,345 | — | 33,491,653 |
Payable for shares of Beneficial | |||||
Interest redeemed | 708,636 | — | — | 545,228 | 1,162,537 |
Interest payable—Note 3 | 1,346 | — | — | — | — |
Accrued expenses | 60,867 | 110,001 | 110,385 | 38,773 | 96,622 |
59,356,488 | 1,552,179 | 3,048,124 | 965,578 | 145,897,317 | |
Net Assets ($) | 1,185,707,891 | 5,083,676 | 10,346,069 | 91,632,729 | 1,184,165,315 |
The Funds | 91 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
BNY Mellon | BNY Mellon | BNY Mellon | BNY Mellon | BNY Mellon | |
Large Cap | Large Cap Market | Tax-Sensitive Large Cap | Income | Mid Cap | |
Stock Fund | Opportunities Fund | Multi-Strategy Fund | Stock Fund | Stock Fund | |
Composition of Net Assets ($): | |||||
Paid-in capital | 1,250,701,730 | 5,250,413 | 10,628,360 | 113,589,630 | 1,344,130,401 |
Accumulated undistributed | |||||
investment income—net | 494,953 | 1,202 | 3,957 | 126,500 | 535,372 |
Accumulated net realized | |||||
gain (loss) on investments | (191,779,726) | (602) | (1,028) | (27,219,706) | (215,425,812) |
Accumulated net unrealized appreciation | |||||
(depreciation) on investments | 126,290,934 | (167,337) | (285,220) | 5,136,305 | 54,925,354 |
Net Assets ($) | 1,185,707,891 | 5,083,676 | 10,346,069 | 91,632,729 | 1,184,165,315 |
Net Asset Value Per Share | |||||
Class M Shares | |||||
Net Assets ($) | 1,178,234,743 | 5,074,201 | 10,336,550 | 90,645,108 | 1,162,905,816 |
Shares Outstanding | 164,650,640 | 535,449 | 1,085,576 | 16,511,995 | 124,848,718 |
Net Asset Value Per Share ($) | 7.16 | 9.48 | 9.52 | 5.49 | 9.31 |
Investor Shares | |||||
Net Assets ($) | 7,473,148 | 9,475 | 9,519 | 987,621 | 20,733,179 |
Shares Outstanding | 1,043,456 | 1,000 | 1,000 | 178,399 | 2,244,525 |
Net Asset Value Per Share ($) | 7.16 | 9.48 | 9.52 | 5.54 | 9.24 |
Dreyfus Premier Shares | |||||
Net Assets ($) | — | — | — | — | 526,320 |
Shares Outstanding | — | — | — | — | 60,605 |
Net Asset Value Per Share ($) | — | — | — | — | 8.68 |
† Investments at cost ($): | |||||
Unaffiliated issuers | 1,057,733,856 | 4,001,489 | 8,903,880 | 86,947,593 | 1,133,147,194 |
Affiliated issuers | 48,218,233 | 2,347,000 | 1,476,000 | 226,325 | 114,310,288 |
††Value of securities on loan ($) | 37,582,204 | — | — | 225,672 | 116,797,859 |
See notes to financial statements. |
92
BNY Mellon | BNY Mellon | BNY Mellon | ||
Small Cap | U.S. Core Equity | Focused Equity | BNY Mellon | |
Stock Fund | 130/30 Fund | Opportunities Fund | Small/Mid Cap Fund | |
Assets ($): | ||||
Investments in securities— | ||||
See Statement of Investments† | ||||
(including securities on loan)††—Note 2(b): | ||||
Unaffiliated issuers | 417,496,471 | 245,153,773 | 238,055,787 | 213,121,386 |
Affiliated issuers | 73,505,617 | 2,949,000 | 1,644,000 | 25,370,546 |
Cash | 80,392 | 726,701 | 254,875 | 453,429 |
Receivable for shares of Beneficial Interest subscribed | 3,373,358 | 3,418,516 | 636,702 | 799,101 |
Receivable for investment securities sold | 210,188 | 1,079,670 | 8,735,209 | 2,843,554 |
Dividends and interest receivable | 174,594 | 466,235 | 452,336 | 177,794 |
Prepaid expenses | 21,784 | 17,701 | 13,019 | 18,719 |
494,862,404 | 253,811,596 | 249,791,928 | 242,784,529 | |
Liabilities ($): | ||||
Due to The Dreyfus Corporation and affiliates—Note 4(c) | 321,679 | 132,852 | 148,377 | 145,154 |
Due to Administrator—Note 4(a) | 46,869 | 20,039 | 25,544 | 23,453 |
Liability for securities on loan—Note 2(b) | 70,173,617 | — | — | 18,044,546 |
Payable for investment securities purchased | 4,564,960 | 4,770,922 | 10,916,549 | 2,379,353 |
Payable for shares of Beneficial Interest redeemed | 832,055 | 235,613 | 280,269 | 89,595 |
Securities sold short, at value (proceeds $65,318,890) | ||||
—See Statement of Securities Sold Short | — | 61,520,790 | — | — |
Payable to brokers for proceeds on securities sold short | — | 839,161 | — | — |
Dividends payable on securities sold short | — | 56,951 | — | — |
Due to Broker | — | 44,632 | — | — |
Outstanding options written, at value (premiums | ||||
received $53,971)—See Statement of | ||||
Options Written—Note 5 | — | — | 24,800 | — |
Accrued expenses | 77,420 | 45,579 | 52,151 | 51,916 |
76,016,600 | 67,666,539 | 11,447,690 | 20,734,017 | |
Net Assets ($) | 418,845,804 | 186,145,057 | 238,344,238 | 222,050,512 |
The Funds | 93 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
BNY Mellon | BNY Mellon | BNY Mellon | ||
Small Cap | U.S. Core Equity | Focused Equity | BNY Mellon | |
Stock Fund | 130/30 Fund | Opportunities Fund | Small/Mid Cap Fund | |
Composition of Net Assets ($): | ||||
Paid-in capital | 591,801,368 | 240,564,045 | 253,275,666 | 227,553,583 |
Accumulated undistributed | ||||
investment income—net | 206,519 | 388,109 | 620,294 | 9,614 |
Accumulated net realized gain (loss) on investments | (169,989,377) | (59,868,045) | (4,460,398) | (156,752) |
Accumulated net unrealized appreciation | ||||
(depreciation) on investments | (3,172,706) | — | — | (5,355,933) |
Accumulated net unrealized appreciation (depreciation) | ||||
on investments and options transactions | — | — | (11,091,324) | — |
Accumulated net unrealized appreciation (depreciation) | ||||
on investments and securities sold short | — | 5,060,948 | — | — |
Net Assets ($) | 418,845,804 | 186,145,057 | 238,344,238 | 222,050,512 |
Net Asset Value Per Share | ||||
Class M Shares | ||||
Net Assets ($) | 412,823,564 | 186,137,252 | 238,331,550 | 222,034,386 |
Shares Outstanding | 46,183,109 | 18,980,447 | 23,612,875 | 20,326,806 |
Net Asset Value Per Share ($) | 8.94 | 9.81 | 10.09 | 10.92 |
Investor Shares | ||||
Net Assets ($) | 6,022,240 | 7,805 | 12,688 | 16,126 |
Shares Outstanding | 690,853 | 800 | 1,260 | 1,481 |
Net Asset Value Per Share ($) | 8.72 | 9.76 | 10.07 | 10.89 |
† Investments at cost ($): | ||||
Unaffiliated issuers | 420,669,177 | 243,890,925 | 249,176,282 | 218,477,319 |
Affiliated issuers | 73,505,617 | 2,949,000 | 1,644,000 | 25,370,546 |
††Value of securities on loan ($) | 67,775,173 | — | — | 17,498,149 |
See notes to financial statements. |
94
BNY Mellon | BNY Mellon | |||
BNY Mellon | Emerging | International | BNY Mellon | |
International Fund | Markets Fund | Appreciation Fund | Balanced Fund | |
Assets ($): | ||||
Investments in securities— | ||||
See Statement of Investments† | ||||
(including securities on loan)††—Note 2(b): | ||||
Unaffiliated issuers | 990,925,240 | 1,766,274,122 | 218,388,260 | 251,851,287 |
Affiliated issuers | 2,800,000 | 27,100,000 | 1,978,000 | 90,312,527 |
Cash | 696,642 | 1,145,824 | 16,364 | — |
Cash denominated in foreign currencies††† | 2,237,915 | 16,840,637 | — | — |
Receivable for investment securities sold | 10,427,572 | 10,200,040 | 85,844 | 112,000 |
Dividends and interest receivable | 5,401,830 | 5,682,267 | 597,485 | 1,313,451 |
Receivable for shares of | ||||
Beneficial Interest subscribed | 596,723 | 2,414,828 | 124,000 | 978,079 |
Unrealized appreciation on forward foreign | ||||
currency exchange contracts—Note 5 | 6,972 | 928 | 135,484 | — |
Prepaid expenses | 20,157 | 24,556 | 510,322 | — |
1,013,113,051 | 1,829,683,202 | 221,835,759 | 344,567,344 | |
Liabilities ($): | ||||
Due to The Dreyfus Corporation | ||||
and affiliates—Note 4(c) | 1,152,751 | 2,354,462 | 101,176 | 130,629 |
Due to Administrator—Note 4(a) | 110,497 | 194,917 | 24,321 | 27,158 |
Cash overdraft due to Custodian | — | — | — | 273,065 |
Payable for investment securities purchased | 9,035,396 | 23,001,877 | 10,042 | 1,277,038 |
Payable for shares of Beneficial Interest redeemed | 1,731,493 | 654,988 | 49,727 | 340,557 |
Unrealized depreciation on forward foreign | ||||
currency exchange contracts—Note 5 | 32,426 | 8,948 | 5,880 | — |
Interest payable—Note 3 | 754 | — | — | — |
Payable for futures variation margin—Note 5 | — | — | 33,194 | — |
Liability for securities on loan—Note 2(b) | — | — | — | 3,312,094 |
Accrued expenses | 84,365 | 103,700 | 82,357 | 54,210 |
12,147,682 | 26,318,892 | 306,697 | 5,414,751 | |
Net Assets ($) | 1,000,965,369 | 1,803,364,310 | 221,529,062 | 339,152,593 |
The Funds | 95 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
BNY Mellon | BNY Mellon | ||||
BNY Mellon | Emerging | International | BNY Mellon | ||
International Fund | Markets Fund | Appreciation Fund | Balanced Fund | ||
Composition of Net Assets ($): | |||||
Paid-in capital | 1,754,200,979 | 1,817,104,879 | 313,903,076 | 344,607,911 | |
Accumulated undistributed investment income—net | 18,767,438 | 7,544,968 | 3,670,857 | 2,912,663 | |
Accumulated net realized gain (loss) on investments | (697,131,044) | (187,682,283) | (34,524,200) | (10,191,050) | |
Accumulated net unrealized appreciation | |||||
(depreciation) on investments and | |||||
foreign currency transactions [including | |||||
($57,925) net unrealized (depreciation) | |||||
on financial futures for the BNY Mellon | |||||
International Appreciation Fund] | (74,872,004) | 166,396,746 | (61,520,671) | — | |
Accumulated net unrealized appreciation | |||||
(depreciation) on investments | — | — | — | 1,823,069 | |
Net Assets ($) | 1,000,965,369 | 1,803,364,310 | 221,529,062 | 339,152,593 | |
Net Asset Value Per Share | |||||
Class M Shares | |||||
Net Assets ($) | 996,646,630 | 1,796,273,662 | 218,066,785 | 335,137,686 | |
Shares Outstanding | 106,205,465 | 179,328,087 | 20,685,046 | 34,021,850 | |
Net Asset Value Per Share ($) | 9.38 | 10.02 | 10.54 | 9.85 | |
Investor Shares | |||||
Net Assets ($) | 4,318,739 | 7,090,648 | 3,462,277 | 4,014,907 | |
Shares Outstanding | 435,404 | 690,204 | 331,846 | 405,360 | |
Net Asset Value Per Share ($) | 9.92 | 10.27 | 10.43 | 9.90 | |
† | Investments at cost ($): | ||||
Unaffiliated issuers | 1,065,844,214 | 1,599,819,727 | 279,980,610 | 234,390,292 | |
Affiliated issuers | 2,800,000 | 27,100,000 | 1,978,000 | 105,950,453 | |
†† | Value of securities on loan ($) | — | — | — | 3,420,889 |
††† Cash denominated in foreign currencies (cost) ($) | 2,235,029 | 16,886,172 | — | — |
See notes to financial statements.
96
STATEMENTS OF OPERATIONS
Year Ended August 31, 2010
BNY Mellon | BNY Mellon | BNY Mellon | BNY Mellon | BNY Mellon | |
Large Cap | Large Cap Market | Tax-Sensitive Large Cap | Income | Mid Cap | |
Stock Fund | Opportunities Funda | Multi-Strategy Funda | Stock Fund | Stock Fund | |
Investment Income ($): | |||||
Income: | |||||
Cash dividends (net of $150,063, $2,683 and | |||||
$17,096 foreign taxes withheld at source for | |||||
BNY Mellon Large Cap Stock Fund, BNY Mellon | |||||
Income Stock Fund and BNY Mellon Mid Cap | |||||
Stock Fund, respectively): | |||||
Unaffiliated issuers | 22,633,949 | 3,004 | 7,378 | 2,742,885 | 17,884,303 |
Affiliated issuers | 9,406 | 79 | 149 | 90 | 17,880 |
Income from securities lending—Note 2(b) | 83,335 | — | — | 2,221 | 590,728 |
Total Income | 22,726,690 | 3,083 | 7,527 | 2,745,196 | 18,492,911 |
Expenses: | |||||
Investment advisory fees—Note 4(a) | 9,193,411 | 1,273 | 2,572 | 739,274 | 9,702,660 |
Administration fees—Note 4(a) | 1,800,476 | 212 | 408 | 142,810 | 1,624,230 |
Custodian fees—Note 4(c) | 108,583 | 3,500 | 1,000 | 18,612 | 102,145 |
Trustees’ fees and expenses—Note 4(d) | 75,643 | 300 | 300 | 7,183 | 72,272 |
Interest expense—Note 3 | 34,040 | — | — | 2,702 | 211 |
Registration fees | 28,491 | 3,351 | 3,734 | 26,972 | 38,893 |
Auditing fees | 24,582 | 15,000 | 15,000 | 26,919 | 27,267 |
Loan commitment fees—Note 3 | 22,484 | — | — | 2,709 | 24,900 |
Shareholder servicing costs—Note 4(c) | 20,408 | 477 | 477 | 2,935 | 66,695 |
Legal fees | 19,656 | 5,083 | 5,083 | 525 | 17,158 |
Prospectus and shareholders’ reports | 5,903 | 2,433 | 2,433 | 4,497 | 40,797 |
Distribution fees—Note 4(b) | — | — | — | — | 5,011 |
Miscellaneous | 21,671 | 1,098 | 1,099 | 10,446 | 21,920 |
Total Expenses | 11,355,348 | 32,727 | 32,106 | 985,584 | 11,744,159 |
Less—expense reimbursement | |||||
due to undertakings—Note 4(a) | — | (30,658) | (28,189) | — | — |
Less—reduction in fees due to | |||||
earnings credits—Note 2(b) | (3) | — | — | (1) | (115) |
Net Expenses | 11,355,345 | 2,069 | 3,917 | 985,583 | 11,744,044 |
Investment Income—Net | 11,371,345 | 1,014 | 3,610 | 1,759,613 | 6,748,867 |
Realized and Unrealized Gain (Loss) | |||||
on Investments—Note 5 ($): | |||||
Net realized gain (loss) on investments | 186,677,267 | (602) | (1,044) | 8,063,171 | 127,211,257 |
Net realized gain (loss) on options transactions | — | — | — | 53,690 | — |
Net Realized Gain (Loss) | 186,677,267 | (602) | (1,044) | 8,116,861 | 127,211,257 |
Net unrealized appreciation | |||||
(depreciation) on investments: | |||||
Unaffiliated issuers | (90,064,732) | (138,697) | (263,440) | (3,722,472) | (26,653,307) |
Affiliated issuers | — | (28,640) | (21,780) | — | — |
Net Unrealized Appreciation (Depreciation) | (90,064,732) | (167,337) | (285,220) | (3,722,472) | (26,653,307) |
Net Realized and Unrealized | |||||
Gain (Loss) on Investments | 96,612,535 | (167,939) | (286,264) | 4,394,389 | 100,557,950 |
Net Increase (Decrease) in Net Assets | |||||
Resulting from Operations | 107,983,880 | (166,925) | (282,654) | 6,154,002 | 107,306,817 |
a From July 30, 2010 (commencement of operations) to August 31, 2010. | |||||
See notes to financial statements. |
The Funds | 97 |
STATEMENTS OF OPERATIONS (continued)
BNY Mellon | BNY Mellon | BNY Mellon | ||
Small Cap | U.S. Core Equity | Focused Equity | BNY Mellon | |
Stock Fund | 130/30 Fund | Opportunities Funda | Small/Mid Cap Funda | |
Investment Income ($): | ||||
Income: | ||||
Cash dividends (net of $10,971, $1,978 and $3,918 foreign | ||||
taxes withheld at source for BNY Mellon Small Cap Stock | ||||
Fund, BNY Mellon Focused Equity Opportunities Fund | ||||
and BNY Mellon Small/Mid Cap Fund, respectively): | ||||
Unaffiliated issuers | 5,239,170 | 2,924,645 | 1,614,579 | 1,043,272 |
Affiliated issuers | 13,026 | 1,902 | 3,935 | 8,170 |
Income from securities lending—Note 2(b) | 293,087 | — | — | 32,452 |
Total Income | 5,545,283 | 2,926,547 | 1,618,514 | 1,083,894 |
Expenses: | ||||
Investment advisory fees—Note 4(a) | 4,736,575 | 1,142,688 | 764,980 | 831,283 |
Administration fees—Note 4(a) | 669,522 | 179,308 | 137,168 | 139,103 |
Custodian fees—Note 4(c) | 74,196 | 36,380 | 32,111 | 80,738 |
Trustees’ fees and expenses—Note 4(d) | 33,049 | 7,533 | 4,358 | 4,495 |
Registration fees | 32,509 | 36,049 | 57,200 | 53,186 |
Shareholder servicing costs—Note 4(c) | 17,283 | 57 | 84 | 169 |
Loan commitment fees—Note 3 | 13,772 | 1,396 | 123 | 103 |
Auditing fees | 6,797 | 28,105 | 27,155 | 27,293 |
Prospectus and shareholders’ reports | 2,877 | 2,846 | 6,621 | 6,533 |
Interest expense—Note 3 | 2,689 | 1,083 | — | — |
Dividends on securities sold short | — | 681,718 | — | — |
Interest on securities sold short | — | 434,291 | — | — |
Legal fees | — | 1,813 | 35,476 | 37,991 |
Miscellaneous | — | 1,456 | 5,299 | 5,253 |
Total Expenses | 5,589,269 | 2,554,723 | 1,070,575 | 1,186,147 |
Less—reduction in investment advisory fee | ||||
due to undertakings—Note 4(a) | (110,307) | — | (93,564) | (161,535) |
Less—reduction in fees due to | ||||
earnings credits—Note 2(b) | (28) | — | (1) | (1) |
Net Expenses | 5,478,934 | 2,554,723 | 977,010 | 1,024,611 |
Investment Income—Net | 66,349 | 371,824 | 641,504 | 59,283 |
Realized and Unrealized Gain (Loss) | ||||
on Investments—Note 5 ($): | ||||
Net realized gain (loss) on investments | 44,616,451 | — | (4,460,111) | (41,857) |
Net realized gain (loss) on investments: | ||||
Long transactions | — | 12,147,881 | — | — |
Short sale transactions | — | (4,140,907) | — | — |
Net Realized Gain (Loss) | 44,616,451 | 8,006,974 | (4,460,111) | (41,857) |
Net unrealized appreciation (depreciation) on investments | (2,612,330) | — | (11,120,495) | (5,355,933) |
Net unrealized appreciation (depreciation) | ||||
on investments and options transactions | — | — | 29,171 | — |
Net unrealized appreciation (depreciation) | ||||
on investments and securities sold short | — | (3,208,945) | — | — |
Net Unrealized Appreciation (Depreciation) | (2,612,330) | (3,208,945) | (11,091,324) | (5,355,933) |
Net Realized and Unrealized | ||||
Gain (Loss) on Investments | 42,004,121 | 4,798,029 | (15,551,435) | (5,397,790) |
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 42,070,470 | 5,169,853 | (14,909,931) | (5,338,507) |
a From September 30, 2009 (commencement of operations) to August 31, 2010. | ||||
See notes to financial statements. |
98
BNY Mellon | BNY Mellon | BNY Mellon | ||
BNY Mellon | Emerging | International | Balanced | |
International Fund | Markets Fund | Appreciation Fund | Fund | |
Investment Income ($): | ||||
Income: | ||||
Cash dividends (net of $2,919,799, | ||||
$4,470,894, $751,580 and $13,262 | ||||
foreign taxes withheld at source for | ||||
BNY Mellon International Fund, | ||||
BNY Mellon Emerging Markets Fund, | ||||
BNY Mellon International Appreciation | ||||
Fund and BNY Mellon Balanced | ||||
Fund, respectively): | ||||
Unaffiliated issuers | 33,735,873 | 37,354,371 | 7,334,065 | 1,996,020 |
Affiliated issuers | 13,165 | 47,665 | 2,694 | 1,072,557 |
Income from securities lending—Note 2(b) | — | 29,326 | — | 11,136 |
Interest | — | 21,506 | — | 4,834,049 |
Total Income | 33,749,038 | 37,452,868 | 7,336,759 | 7,913,762 |
Expenses: | ||||
Investment advisory fees—Note 4(a) | 9,937,216 | 18,038,975 | 1,242,108 | 1,427,805 |
Administration fees—Note 4(a) | 1,467,830 | 1,969,083 | 311,897 | 309,175 |
Custodian fees—Note 4(c) | 1,165,423 | 3,786,748 | 23,707 | 41,197 |
Trustees’ fees and expenses—Note 4(d) | 71,315 | 82,971 | 15,615 | 19,450 |
Registration fees | 25,718 | 57,364 | 30,055 | 46,119 |
Auditing fees | 23,154 | 39,467 | 29,702 | 11,280 |
Loan commitment fees—Note 3 | 14,896 | 12,461 | 3,181 | 3,047 |
Shareholder servicing costs—Note 4(c) | 13,178 | 15,432 | 11,063 | 10,922 |
Prospectus and shareholders’ reports | 7,501 | 9,880 | 10,097 | 16,446 |
Legal fees | 6,206 | 22,967 | 2,133 | 8,124 |
Interest expense—Note 3 | 837 | — | 1,007 | 50 |
Miscellaneous | 76,828 | 76,035 | 15,191 | 27,461 |
Total Expenses | 12,810,102 | 24,111,383 | 1,695,756 | 1,921,076 |
Less—reduction in investment advisory fee | ||||
due to undertakings—Note 4(a) | — | — | (52,217) | — |
Less—reduction in fees due to | ||||
earnings credits—Note 2(b) | (6) | (7) | (12) | (1) |
Net Expenses | 12,810,096 | 24,111,376 | 1,643,527 | 1,921,075 |
Investment Income—Net | 20,938,942 | 13,341,492 | 5,693,232 | 5,992,687 |
The Funds | 99 |
STATEMENTS OF OPERATIONS (continued)
BNY Mellon | BNY Mellon | BNY Mellon | ||
BNY Mellon | Emerging | International | Balanced | |
International Fund | Markets Fund | Appreciation Fund | Fund | |
Realized and Unrealized Gain (Loss) | ||||
on Investments—Note 5 ($): | ||||
Net realized gain (loss) on investments and | ||||
foreign currency transactions | 17,330,251 | 145,624,527 | (6,224,320) | — |
Net realized gain (loss) on forward foreign | ||||
currency exchange contracts | 567,353 | (913,571) | (300,950) | — |
Net realized gain (loss) on financial futures | — | — | 81,447 | — |
Net realized gain (loss) on investments: | ||||
Unaffiliated issuers | — | — | — | 15,620,221 |
Affiliated issuers | — | — | — | (722,621) |
Net Realized Gain (Loss) | 17,897,604 | 144,710,956 | (6,443,823) | 14,897,600 |
Net unrealized appreciation | ||||
(depreciation) on investments | ||||
and foreign currency transactions | (88,351,609) | 24,783,507 | (8,301,539) | — |
Net unrealized appreciation (depreciation) | ||||
on forward foreign currency | ||||
exchange contracts | (48,791) | (6,105) | 129,604 | — |
Net unrealized appreciation | ||||
(depreciation) on financial futures | — | — | (57,925) | — |
Net unrealized appreciation | ||||
(depreciation) on investments: | ||||
Unaffiliated issuers | — | — | — | (3,401,667) |
Affiliated issuers | — | — | — | 3,454,507 |
Net Unrealized Appreciation (Depreciation) | (88,400,400) | 24,777,402 | (8,229,860) | 52,840 |
Net Realized and Unrealized | ||||
Gain (Loss) on Investments | (70,502,796) | 169,488,358 | (14,673,683) | 14,950,440 |
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | (49,563,854) | 182,829,850 | (8,980,451) | 20,943,127 |
See notes to financial statements. |
100
STATEMENT OF CASH FLOWS
Year Ended August 31, 2010
BNY Mellon U.S. Core Equity 130/30 Fund | ||
Cash Flows from Operating Activities ($): | ||
Purchases of portfolio securities | (350,508,662) | |
Proceeds from sales of portfolio securities | 216,213,652 | |
Proceeds from securities sold short | 40,715,066 | |
Net purchase of short—term portfolio securities | (2,949,000) | |
Dividends received | 2,645,535 | |
Interest and dividends paid | (1,077,322) | |
Operating expenses paid | (276,405) | |
Paid to The Dreyfus Corporation | (1,075,238) | (96,312,374) |
Cash Flows from Financing Activites ($): | ||
Net Beneficial Interest transactions | 96,937,562 | |
Dividends paid | (187,162) | |
Cash at beginning of period | 288,675 | |
Cash at end of period | 726,701 | |
Reconciliation of Net Increase in Net Assets Resulting from | ||
Operations to Net Cash Used by Operating Activities ($): | ||
Net Increase in Net Assets Resulting from Operations | 5,169,853 | |
Adjustments to reconcile net increase in net assets resulting | ||
from operations to net cash used by operating activities ($): | ||
Purchases of portfolio securities | (350,508,662) | |
Proceeds from sales of portfolio securities | 216,213,652 | |
Proceeds from securities sold short | 40,715,066 | |
Net sale of short—term portfolio securities | (2,949,000) | |
Increase in interest and dividends payable on | ||
securities sold short and loan commitment fees | 41,166 | |
Increase in accrued operating expenses | 20,447 | |
Decrease in prepaid expenses | (3,305) | |
Increase in Due from The Dreyfus Corporation | 67,450 | |
Net realized gains on investments | (8,006,974) | |
Net unrealized depreciation on investments | 3,208,945 | |
Decrease in dividends and income receivable | (281,012) | |
Net Cash Used by Operating Activities | (96,312,374) | |
See notes to financial statements. |
The Funds | 101 |
STATEMENTS OF CHANGES IN NET ASSETS
BNY Mellon Large Cap Market | |||
BNY Mellon Large Cap Stock Fund | Opportunities Fund | ||
Year Ended August 31, | Period Ended | ||
2010 | 2009 | August 31, 2010a | |
Operations ($): | |||
Investment income—net | 11,371,345 | 18,917,741 | 1,014 |
Net realized gain (loss) on investments | 186,677,267 | (378,012,597) | (602) |
Net unrealized appreciation (depreciation) on investments | (90,064,732) | 16,668,580 | (167,337) |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | 107,983,880 | (342,426,276) | (166,925) |
Dividends to Shareholders from ($): | |||
Investment income—net: | |||
Class M Shares | (11,021,302) | (19,047,992) | — |
Investor Shares | (44,449) | (90,931) | — |
Net realized gain on investments: | |||
Class M Shares | — | (17,032,712) | — |
Investor Shares | — | (105,660) | — |
Total Dividends | (11,065,751) | (36,277,295) | — |
Beneficial Interest Transactions ($): | |||
Net proceeds from shares sold: | |||
Class M Shares | 208,779,258 | 360,114,245 | 5,337,671 |
Investor Shares | 2,684,994 | 4,284,127 | 10,000 |
Dividends reinvested: | |||
Class M Shares | 1,341,554 | 14,990,832 | — |
Investor Shares | 39,778 | 178,654 | — |
Cost of shares redeemed: | |||
Class M Shares | (577,935,600) | (299,736,440) | (97,070) |
Investor Shares | (3,958,994) | (3,805,779) | — |
Increase (Decrease) in Net Assets from | |||
Beneficial Interest Transactions | (369,049,010) | 76,025,639 | 5,250,601 |
Total Increase (Decrease) in Net Assets | (272,130,881) | (302,677,932) | 5,083,676 |
Net Assets ($): | |||
Beginning of Period | 1,457,838,772 | 1,760,516,704 | — |
End of Period | 1,185,707,891 | 1,457,838,772 | 5,083,676 |
Undistributed investment income—net | 494,953 | 189,359 | 1,202 |
Capital Share Transactions (Shares): | |||
Class M Shares | |||
Shares sold | 28,089,959 | 62,235,786 | 545,214 |
Shares issued for dividends reinvested | 182,062 | 2,547,700 | — |
Shares redeemed | (77,703,853) | (50,324,886) | (9,765) |
Net Increase (Decrease) in Shares Outstanding | (49,431,832) | 14,458,600 | 535,449 |
Investor Shares | |||
Shares sold | 359,559 | 695,605 | 1,000 |
Shares issued for dividends reinvested | 5,397 | 30,368 | — |
Shares redeemed | (541,583) | (624,883) | — |
Net Increase (Decrease) in Shares Outstanding | (176,627) | 101,090 | 1,000 |
a From July 30, 2010 (commencement of operations) to August 31, 2010. | |||
See notes to financial statements. |
102
BNY Mellon Tax-Sensitive | |||
Large Cap Multi-Strategy Fund | BNY Mellon Income Stock Fund | ||
Period Ended | Year Ended August 31, | ||
August 31, 2010a | 2010 | 2009 | |
Operations ($): | |||
Investment income—net | 3,610 | 1,759,613 | 3,104,867 |
Net realized gain (loss) on investments | (1,044) | 8,116,861 | (34,816,689) |
Net unrealized appreciation (depreciation) on investments | (285,220) | (3,722,472) | (3,765,992) |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | (282,654) | 6,154,002 | (35,477,814) |
Dividends to Shareholders from ($): | |||
Investment income—net: | |||
Class M Shares | — | (1,709,209) | (3,217,175) |
Investor Shares | — | (14,414) | (21,687) |
Net realized gain on investments: | |||
Class M Shares | — | — | (11,235,958) |
Investor Shares | — | — | (88,530) |
Total Dividends | — | (1,723,623) | (14,563,350) |
Beneficial Interest Transactions ($): | |||
Net proceeds from shares sold: | |||
Class M Shares | 10,618,723 | 6,266,202 | 21,515,085 |
Investor Shares | 10,000 | 172,180 | 235,624 |
Dividends reinvested: | |||
Class M Shares | — | 160,533 | 8,515,567 |
Investor Shares | — | 12,512 | 96,517 |
Cost of shares redeemed: | |||
Class M Shares | — | (46,945,226) | (52,924,900) |
Investor Shares | — | (271,337) | (363,166) |
Increase (Decrease) in Net Assets from | |||
Beneficial Interest Transactions | 10,628,723 | (40,605,136) | (22,925,273) |
Total Increase (Decrease) in Net Assets | 10,346,069 | (36,174,757) | (72,966,437) |
Net Assets ($): | |||
Beginning of Period | — | 127,807,486 | 200,773,923 |
End of Period | 10,346,069 | 91,632,729 | 127,807,486 |
Undistributed investment income—net | 3,957 | 126,500 | 90,510 |
Capital Share Transactions (Shares): | |||
Class M Shares | |||
Shares sold | 1,085,576 | 1,086,244 | 4,707,144 |
Shares issued for dividends reinvested | — | 28,378 | 1,790,201 |
Shares redeemed | — | (8,114,105) | (10,603,472) |
Net Increase (Decrease) in Shares Outstanding | 1,085,576 | (6,999,483) | (4,106,127) |
Investor Shares | |||
Shares sold | 1,000 | 29,558 | 49,727 |
Shares issued for dividends reinvested | — | 2,194 | 20,074 |
Shares redeemed | — | (45,435) | (71,117) |
Net Increase (Decrease) in Shares Outstanding | 1,000 | (13,683) | (1,316) |
a From July 30, 2010 (commencement of operations) to August 31, 2010. | |||
See notes to financial statements. |
The Funds | 103 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
BNY Mellon Mid Cap Stock Fund | BNY Mellon Small Cap Stock Fund | |||
Year Ended August 31, | Year Ended August 31, | |||
2010 | 2009 | 2010 | 2009 | |
Operations ($): | ||||
Investment income—net | 6,748,867 | 8,423,366 | 66,349 | 4,839,269 |
Net realized gain (loss) on investments | 127,211,257 | (343,074,488) | 44,616,451 | (188,186,887) |
Net unrealized appreciation (depreciation) on investments | (26,653,307) | (11,324,686) | (2,612,330) | (20,028,629) |
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 107,306,817 | (345,975,808) | 42,070,470 | (203,376,247) |
Dividends to Shareholders from ($): | ||||
Investment income—net: | ||||
Class M Shares | (8,420,413) | (6,574,644) | (754,676) | (5,358,722) |
Investor Shares | (92,947) | (78,833) | — | (46,091) |
Net realized gain on investments: | ||||
Class M Shares | — | (2,071,344) | — | (978,410) |
Investor Shares | — | (44,054) | — | (10,560) |
Dreyfus Premier Shares | — | (1,922) | — | — |
Total Dividends | (8,513,360) | (8,770,797) | (754,676) | (6,393,783) |
Beneficial Interest Transactions ($): | ||||
Net proceeds from shares sold: | ||||
Class M Shares | 204,861,905 | 406,555,455 | 57,811,400 | 178,941,272 |
Investor Shares | 6,321,719 | 5,015,272 | 3,207,091 | 9,093,836 |
Dreyfus Premier Shares | 9 | — | — | — |
Net assets received in connection | ||||
with reorganization—Note 1 | — | — | — | 233,386,437 |
Dividends reinvested: | ||||
Class M Shares | 1,904,825 | 2,796,207 | 151,608 | 1,637,800 |
Investor Shares | 84,880 | 111,004 | — | 54,192 |
Dreyfus Premier Shares | — | 1,347 | — | — |
Cost of shares redeemed: | ||||
Class M Shares | (326,317,292) | (416,972,262) | (296,691,618) | (231,106,470) |
Investor Shares | (7,108,008) | (7,274,207) | (3,791,821) | (2,307,647) |
Dreyfus Premier Shares | (246,586) | (625,606) | — | — |
Increase (Decrease) in Net Assets from | ||||
Beneficial Interest Transactions | (120,498,548) | (10,392,790) | (239,313,340) | 189,699,420 |
Total Increase (Decrease) in Net Assets | (21,705,091) | (365,139,395) | (197,997,546) | (20,070,610) |
Net Assets ($): | ||||
Beginning of Period | 1,205,870,406 | 1,571,009,801 | 616,843,350 | 636,913,960 |
End of Period | 1,184,165,315 | 1,205,870,406 | 418,845,804 | 616,843,350 |
Undistributed investment income—net | 535,372 | 3,004,265 | 206,519 | 712,259 |
104
BNY Mellon Mid Cap Stock Fund | BNY Mellon Small Cap Stock Fund | |||
Year Ended August 31, | Year Ended August 31, | |||
2010 | 2009 | 2010 | 2009 | |
Capital Share Transactions: | ||||
Class M Shares | ||||
Shares sold | 21,189,689 | 55,527,828 | 6,192,288 | 23,641,067 |
Shares issued in connection | ||||
with reorganization—Note 1 | — | — | — | 20,518,617 |
Shares issued for dividends reinvested | 208,405 | 426,238 | 16,977 | 221,412 |
Shares redeemed | (33,694,346) | (57,509,599) | (31,292,076) | (28,476,872) |
Net Increase (Decrease) in Shares Outstanding | (12,296,252) | (1,555,533) | (25,082,811) | 15,904,224 |
Investor Sharesa | ||||
Shares sold | 661,836 | 660,836 | 351,180 | 283,139 |
Shares issued in connection | ||||
with reorganization—Note 1 | — | — | — | 408,812 |
Shares issued for dividends reinvested | 9,348 | 17,099 | — | 7,468 |
Shares redeemed | (734,495) | (962,666) | (410,745) | (290,513) |
Net Increase (Decrease) in Shares Outstanding | (63,311) | (284,731) | (59,565) | 408,906 |
Dreyfus Premier Sharesa | ||||
Shares sold | 1 | — | — | — |
Shares issued for dividends reinvested | — | 215 | — | — |
Shares redeemed | (27,146) | (72,925) | — | — |
Net Increase (Decrease) in Shares Outstanding | (27,145) | (72,710) | — | — |
a During the period ended August 31, 2010, 14,199 Dreyfus Premier shares of BNY Mellon Mid Cap Stock Fund representing $138,528 were automatically converted to 15,060 |
Investor shares and during the period ended August 31, 2009, 42,579 Dreyfus Premier shares of BNY Mellon Mid Cap Stock Fund representing $424,038 were automatically |
converted to 45,067 Investor shares. |
See notes to financial statements.
The Funds | 105 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
BNY Mellon Focused Equity | |||
BNY Mellon U.S. Core Equity 130/30 Fund | Opportunities Fund | ||
Year Ended August 31, | Period Ended | ||
2010 | 2009 | August 31, 2010a | |
Operations ($): | |||
Investment income—net | 371,824 | 782,504 | 641,504 |
Net realized gain (loss) on investments | 8,006,974 | (55,498,520) | (4,460,111) |
Net unrealized appreciation (depreciation) on investments | (3,208,945) | 12,849,796 | (11,091,324) |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | 5,169,853 | (41,866,220) | (14,909,931) |
Dividends to Shareholders from ($): | |||
Investment income—net: | |||
Class M Shares | (307,480) | (1,196,997) | (23,592) |
Investor Shares | — | (1,527) | (5) |
Net realized gain on investments: | |||
Class M Shares | — | — | (403) |
Investor Shares | — | — | —b |
Total Dividends | (307,480) | (1,198,524) | (24,000) |
Beneficial Interest Transactions ($): | |||
Net proceeds from shares sold: | |||
Class M Shares | 148,604,687 | 41,073,535 | 262,921,709 |
Investor Shares | 3,158 | 101,693 | 16,190 |
Dividends reinvested: | |||
Class M Shares | 120,318 | 296,539 | 6,026 |
Investor Shares | — | 1,439 | 5 |
Cost of shares redeemed: | |||
Class M Shares | (48,400,711) | (98,151,068) | (9,662,634) |
Investor Shares | (10,269) | (108,540) | (3,127) |
Increase (Decrease) in Net Assets from | |||
Beneficial Interest Transactions | 100,317,183 | (56,786,402) | 253,278,169 |
Total Increase (Decrease) in Net Assets | 105,179,556 | (99,851,146) | 238,344,238 |
Net Assets ($): | |||
Beginning of Period | 80,965,501 | 180,816,647 | — |
End of Period | 186,145,057 | 80,965,501 | 238,344,238 |
Undistributed investment income—net | 388,109 | 306,391 | 620,294 |
Capital Share Transactions (Shares): | |||
Class M Shares | |||
Shares sold | 14,900,619 | 5,196,086 | 24,529,894 |
Shares issued for dividends reinvested | 12,202 | 38,362 | 552 |
Shares redeemed | (4,858,891) | (12,175,332) | (917,571) |
Net Increase (Decrease) in Shares Outstanding | 10,053,930 | (6,940,884) | 23,612,875 |
Investor Shares | |||
Shares sold | 288 | 15,388 | 1,525 |
Shares issued for dividends reinvested | — | 187 | 1 |
Shares redeemed | (1,040) | (15,199) | (266) |
Net Increase (Decrease) in Shares Outstanding | (752) | 376 | 1,260 |
a | From September 30, 2009 (commencement of operations) to August 31, 2010. |
b | Amount represents less than $1. |
See notes to financial statements.
106
BNY Mellon | |||
Small/Mid Cap Fund | BNY Mellon International Fund | ||
Period Ended | Year Ended August 31, | ||
August 31, 2010a | 2010 | 2009 | |
Operations ($): | |||
Investment income—net | 59,283 | 20,938,942 | 29,050,735 |
Net realized gain (loss) on investments | (41,857) | 17,897,604 | (698,891,627) |
Net unrealized appreciation (depreciation) on investments | (5,355,933) | (88,400,400) | 379,986,394 |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | (5,338,507) | (49,563,854) | (289,854,498) |
Dividends to Shareholders from ($): | |||
Investment income—net: | |||
Class M Shares | (46,121) | (29,900,390) | (50,802,501) |
Investor Shares | (500) | (109,581) | (168,272) |
Net realized gain on investments: | |||
Class M Shares | (128,453) | — | (31,798,143) |
Investor Shares | (1,533) | — | (122,033) |
Total Dividends | (176,607) | (30,009,971) | (82,890,949) |
Beneficial Interest Transactions ($): | |||
Net proceeds from shares sold: | |||
Class M Shares | 240,567,850 | 175,302,528 | 346,477,251 |
Investor Shares | 538,931 | 4,187,465 | 4,428,015 |
Dividends reinvested: | |||
Class M Shares | 102,901 | 5,828,151 | 30,979,191 |
Investor Shares | 1,742 | 96,704 | 229,502 |
Cost of shares redeemed: | |||
Class M Shares | (13,099,812) | (352,584,183) | (760,356,356) |
Investor Shares | (545,986) | (4,832,167) | (5,404,874) |
Increase (Decrease) in Net Assets from | |||
Beneficial Interest Transactions | 227,565,626 | (172,001,502) | (383,647,271) |
Total Increase (Decrease) in Net Assets | 222,050,512 | (251,575,327) | (756,392,718) |
Net Assets ($): | |||
Beginning of Period | — | 1,252,540,696 | 2,008,933,414 |
End of Period | 222,050,512 | 1,000,965,369 | 1,252,540,696 |
Undistributed investment income—net | 9,614 | 18,767,438 | 27,676,580 |
Capital Share Transactions (Shares): | |||
Class M Shares | |||
Shares sold | 21,480,182 | 17,152,076 | 43,040,216 |
Shares issued for dividends reinvested | 9,254 | 557,184 | 3,653,716 |
Shares redeemed | (1,162,630) | (34,733,321) | (88,744,608) |
Net Increase (Decrease) in Shares Outstanding | 20,326,806 | (17,024,061) | (42,050,676) |
Investor Shares | |||
Shares sold | 49,168 | 394,948 | 496,146 |
Shares issued for dividends reinvested | 157 | 8,735 | 25,586 |
Shares redeemed | (47,844) | (445,265) | (566,642) |
Net Increase (Decrease) in Shares Outstanding | 1,481 | (41,582) | (44,910) |
a From September 30, 2009 (commencement of operations) to August 31, 2010. | |||
See notes to financial statements. |
The Funds | 107 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
BNY Mellon Emerging Markets Fund | BNY Mellon International Appreciation Fund | ||||
Year Ended August 31, | Year Ended | Eight Months Ended | Year Ended | ||
2010 | 2009 | August 31, 2010 | August 31, 2009a | December 31, 2008b | |
Operations ($): | |||||
Investment income—net | 13,341,492 | 12,693,058 | 5,693,232 | 5,887,805 | 14,516,721 |
Net realized gain (loss) on investments | 144,710,956 | (334,645,585) | (6,443,823) | (11,642,601) | 4,306,492 |
Net unrealized appreciation | |||||
(depreciation) on investments | 24,777,402 | 213,381,913 | (8,229,860) | 45,987,675 | (239,798,814) |
Net Increase (Decrease) in Net Assets | |||||
Resulting from Operations | 182,829,850 | (108,570,614) | (8,980,451) | 40,232,879 | (220,975,601) |
Dividends to Shareholders from ($): | |||||
Investment income—net: | |||||
Class M Shares | (11,020,148) | (19,833,608) | (7,535,695) | (321,748) | (14,464,661) |
Investor Shares | (35,030) | (126,913) | (113,186) | — | (129,203) |
Net realized gain on investments: | |||||
Class M Shares | — | (205,073,815) | — | — | — |
Investor Shares | — | (1,571,681) | — | — | — |
Total Dividends | (11,055,178) | (226,606,017) | (7,648,881) | (321,748) | (14,593,864) |
Beneficial Interest Transactions ($): | |||||
Net proceeds from shares sold: | |||||
Class M Shares | 712,314,185 | 502,660,769 | 31,858,519 | 9,457,606 | 433,260,379 |
Investor Shares | 11,306,226 | 2,743,429 | 583,760 | 525,757 | 296,509 |
Dividends reinvested: | |||||
Class M Shares | 2,790,469 | 154,735,342 | 327,197 | 49,391 | 1,972,462 |
Investor Shares | 29,682 | 1,218,293 | 105,666 | — | 126,953 |
Cost of shares redeemed: | |||||
Class M Shares | (187,116,932) | (369,008,804) | (53,896,689) | (59,939,964) | (480,007,312) |
Investor Shares | (9,505,611) | (3,733,735) | (1,130,199) | (266,046) | (521,761) |
Increase (Decrease) in Net Assets from | |||||
Beneficial Interest Transactions | 529,818,019 | 288,615,294 | (22,151,746) | (50,173,256) | (44,872,770) |
Total Increase (Decrease) in Net Assets | 701,592,691 | (46,561,337) | (38,781,078) | (10,262,125) | (280,442,235) |
Net Assets ($): | |||||
Beginning of Period | 1,101,771,619 | 1,148,332,956 | 260,310,140 | 270,572,265 | 551,014,500 |
End of Period | 1,803,364,310 | 1,101,771,619 | 221,529,062 | 260,310,140 | 270,572,265 |
Undistributed investment income—net | 7,544,968 | 9,011,120 | 3,670,857 | 5,885,643 | 319,586 |
Capital Share Transactions (Shares): | |||||
Class M Shares | |||||
Shares sold | 71,964,613 | 73,022,866 | 2,798,262 | 1,067,245 | 31,399,895 |
Shares issued for dividends reinvested | 282,722 | 26,817,217 | 28,576 | 6,381 | 165,654 |
Shares redeemed | (18,909,854) | (41,406,835) | (4,702,781) | (6,971,873) | (36,005,253) |
Net Increase (Decrease) in Shares Outstanding | 53,337,481 | 58,433,248 | (1,875,943) | (5,898,247) | (4,439,704) |
Investor Shares | |||||
Shares sold | 1,123,587 | 328,960 | 52,060 | 58,035 | 25,050 |
Shares issued for dividends reinvested | 2,930 | 205,446 | 9,310 | — | 10,623 |
Shares redeemed | (937,083) | (455,086) | (100,485) | (28,633) | (37,585) |
Net Increase (Decrease) in Shares Outstanding | 189,434 | 79,320 | (39,115) | 29,402 | (1,912) |
a The fund has changed its fiscal year end from December 31 to August 31. |
b Represents information from the fund’s predecessor, BNY Hamilton International Equity Fund, through September 12, 2008. |
See notes to financial statements.
108
BNY Mellon Balanced Fund | ||
Year Ended August 31, | ||
2010 | 2009 | |
Operations ($): | ||
Investment income—net | 5,992,687 | 7,422,230 |
Net realized gain (loss) on investments | 14,897,600 | (22,702,988) |
Net unrealized appreciation (depreciation) on investments | 52,840 | (4,635,836) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 20,943,127 | (19,916,594) |
Dividends to Shareholders from ($): | ||
Investment income—net: | ||
Class M Shares | (7,815,981) | (8,038,454) |
Investor Shares | (91,647) | (115,704) |
Net realized gain on investments: | ||
Class M Shares | — | (12,607,030) |
Investor Shares | — | (202,398) |
Total Dividends | (7,907,628) | (20,963,586) |
Beneficial Interest Transactions ($): | ||
Net proceeds from shares sold: | ||
Class M Shares | 60,552,191 | 42,013,238 |
Investor Shares | 327,865 | 984,653 |
Dividends reinvested: | ||
Class M Shares | 388,019 | 11,355,573 |
Investor Shares | 84,534 | 306,454 |
Cost of shares redeemed: | ||
Class M Shares | (40,292,941) | (28,960,281) |
Investor Shares | (996,979) | (1,122,085) |
Increase (Decrease) in Net Assets from | ||
Beneficial Interest Transactions | 20,062,689 | 24,577,552 |
Total Increase (Decrease) in Net Assets | 33,098,188 | (16,302,628) |
Net Assets ($): | ||
Beginning of Period | 306,054,405 | 322,357,033 |
End of Period | 339,152,593 | 306,054,405 |
Undistributed investment income—net | 2,912,663 | 4,016,061 |
Capital Share Transactions (Shares): | ||
Class M Shares | ||
Shares sold | 6,064,420 | 4,899,132 |
Shares issued for dividends reinvested | 39,027 | 1,360,335 |
Shares redeemed | (4,025,443) | (3,375,926) |
Net Increase (Decrease) in Shares Outstanding | 2,078,004 | 2,883,541 |
Investor Shares | ||
Shares sold | 32,318 | 114,400 |
Shares issued for dividends reinvested | 8,457 | 36,157 |
Shares redeemed | (99,995) | (124,146) |
Net Increase (Decrease) in Shares Outstanding | (59,220) | 26,411 |
See notes to financial statements. |
The Funds | 109 |
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class of each BNY Mellon equity fund for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in each fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from each fund’s financial statements.
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Large Cap Stock Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 6.77 | 8.77 | 11.56 | 10.31 | 9.79 |
Investment Operations: | |||||
Investment income—neta | .06 | .09 | .11 | .09 | .10 |
Net realized and unrealized | |||||
gain (loss) on investments | .39 | (1.91) | (1.05) | 1.49 | .52 |
Total from Investment Operations | .45 | (1.82) | (.94) | 1.58 | .62 |
Distributions: | |||||
Dividends from investment income—net | (.06) | (.09) | (.12) | (.08) | (.10) |
Dividends from net realized gain on investments | — | (.09) | (1.73) | (.25) | — |
Total Distributions | (.06) | (.18) | (1.85) | (.33) | (.10) |
Net asset value, end of period | 7.16 | 6.77 | 8.77 | 11.56 | 10.31 |
Total Return (%) | 6.62 | (20.39) | (9.95) | 15.60 | 6.32 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .80 | .81 | .80 | .80 | .80 |
Ratio of net expenses to average net assets | .80b | .81b | .80b | .79 | .80b |
Ratio of net investment income | |||||
to average net assets | .81 | 1.51 | 1.15 | .76 | .96 |
Portfolio Turnover Rate | 71.61 | 109.39 | 56.13 | 77.46 | 19.08 |
Net Assets, end of period ($ x 1,000) | 1,178,235 | 1,449,565 | 1,750,688 | 1,970,482 | 1,766,105 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
110
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Large Cap Stock Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 6.78 | 8.78 | 11.58 | 10.33 | 9.82 |
Investment Operations: | |||||
Investment income—neta | .04 | .08 | .09 | .06 | .07 |
Net realized and unrealized | |||||
gain (loss) on investments | .38 | (1.91) | (1.07) | 1.50 | .51 |
Total from Investment Operations | .42 | (1.83) | (.98) | 1.56 | .58 |
Distributions: | |||||
Dividends from investment income—net | (.04) | (.08) | (.09) | (.06) | (.07) |
Dividends from net realized gain on investments | — | (.09) | (1.73) | (.25) | — |
Total Distributions | (.04) | (.17) | (1.82) | (.31) | (.07) |
Net asset value, end of period | 7.16 | 6.78 | 8.78 | 11.58 | 10.33 |
Total Return (%) | 6.21 | (20.56) | (10.26) | 15.29 | 5.95 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.05 | 1.06 | 1.05 | 1.05 | 1.06 |
Ratio of net expenses to average net assets | 1.05b | 1.06b | 1.05b | 1.04 | 1.06b |
Ratio of net investment income | |||||
to average net assets | .56 | 1.25 | .89 | .51 | .72 |
Portfolio Turnover Rate | 71.61 | 109.39 | 56.13 | 77.46 | 19.08 |
Net Assets, end of period ($ x 1,000) | 7,473 | 8,274 | 9,829 | 11,704 | 7,629 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds | 111 |
FINANCIAL HIGHLIGHTS (continued)
Class M Shares | Investor Shares | |
Period Ended | Period Ended | |
BNY Mellon Large Cap Market Opportunities Fund | August 31, 2010a | August 31, 2010a |
Per Share Data ($): | ||
Net asset value, beginning of period | 10.00 | 10.00 |
Investment Operations: | ||
Investment income—netb,c | .00 | .00 |
Net realized and unrealized | ||
gain (loss) on investments | (.52) | (.52) |
Total from Investment Operations | (.52) | (.52) |
Net asset value, end of period | 9.48 | 9.48 |
Total Return (%)d | (5.20) | (5.20) |
Ratios/Supplemental Data (%): | ||
Ratio of total expenses to average net assetse,f | 15.54 | 9.38 |
Ratio of net expenses to average net assetse,f | .98 | 1.23 |
Ratio of net investment income | ||
to average net assetse,f | .48 | .16 |
Portfolio Turnover Rated | 2.12 | 2.12 |
Net Assets, end of period ($ x 1,000) | 5,074 | 9 |
a | From July 30, 2010 (commencement of operations) to August 31, 2010. |
b | Based on average shares outstanding at each month end. |
c | Amount represents less than $.01 per share. |
d | Not annualized. |
e | Annualized. |
f | Amount does not include the activity of the underlying funds. |
See notes to financial statements.
112
Class M Shares | Investor Shares | |
Period Ended | Period Ended | |
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund | August 31, 2010a | August 31, 2010a |
Per Share Data ($): | ||
Net asset value, beginning of period | 10.00 | 10.00 |
Investment Operations: | ||
Investment income—netb | .01 | .01 |
Net realized and unrealized | ||
gain (loss) on investments | (.49) | (.49) |
Total from Investment Operations | (.48) | (.48) |
Net asset value, end of period | 9.52 | 9.52 |
Total Return (%)c | (4.80) | (4.80) |
Ratios/Supplemental Data (%): | ||
Ratio of total expenses to average net assetsd,e | 8.12 | 5.88 |
Ratio of net expenses to average net assetsd,e | .99 | 1.24 |
Ratio of net investment income | ||
to average net assetsd,e | .91 | .65 |
Portfolio Turnover Ratec | 1.53 | 1.53 |
Net Assets, end of period ($ x 1,000) | 10,337 | 10 |
a | From July 30, 2010 (commencement of operations) to August 31, 2010. |
b | Based on average shares outstanding at each month end. |
c | Not annualized. |
d | Annualized. |
e | Amount does not include the activity of the underlying funds. |
See notes to financial statements.
The Funds | 113 |
FINANCIAL HIGHLIGHTS (continued)
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Income Stock Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 5.39 | 7.22 | 10.61 | 10.43 | 9.92 |
Investment Operations: | |||||
Investment income—neta | .09 | .12 | .16 | .19 | .22 |
Net realized and unrealized | |||||
gain (loss) on investments | .10 | (1.35) | (1.35) | 1.04 | .75 |
Total from Investment Operations | .19 | (1.23) | (1.19) | 1.23 | .97 |
Distributions: | |||||
Dividends from investment income—net | (.09) | (.13) | (.16) | (.19) | (.22) |
Dividends from net realized gain on investments | — | (.47) | (2.04) | (.86) | (.24) |
Total Distributions | (.09) | (.60) | (2.20) | (1.05) | (.46) |
Net asset value, end of period | 5.49 | 5.39 | 7.22 | 10.61 | 10.43 |
Total Return (%) | 3.44 | (15.73) | (13.79) | 12.11 | 10.00 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .86 | .87 | .84 | .81 | .81 |
Ratio of net expenses to average net assets | .86b | .87b | .84b | .81 | .81b |
Ratio of net investment income | |||||
to average net assets | 1.55 | 2.47 | 1.87 | 1.81 | 2.14 |
Portfolio Turnover Rate | 66.78 | 65.88 | 33.02 | 62.06 | 40.75 |
Net Assets, end of period ($ x 1,000) | 90,645 | 126,763 | 199,367 | 414,866 | 421,266 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
114
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Income Stock Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 5.44 | 7.27 | 10.67 | 10.49 | 9.98 |
Investment Operations: | |||||
Investment income—neta | .08 | .11 | .14 | .17 | .19 |
Net realized and unrealized | |||||
gain (loss) on investments | .10 | (1.35) | (1.36) | 1.04 | .75 |
Total from Investment Operations | .18 | (1.24) | (1.22) | 1.21 | .94 |
Distributions: | |||||
Dividends from investment income—net | (.08) | (.12) | (.14) | (.17) | (.19) |
Dividends from net realized gain on investments | — | (.47) | (2.04) | (.86) | (.24) |
Total Distributions | (.08) | (.59) | (2.18) | (1.03) | (.43) |
Net asset value, end of period | 5.54 | 5.44 | 7.27 | 10.67 | 10.49 |
Total Return (%) | 3.19 | (15.84) | (14.03) | 11.78 | 9.68 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.11 | 1.12 | 1.09 | 1.06 | 1.06 |
Ratio of net expenses to average net assets | 1.11b | 1.12b | 1.09b | 1.06 | 1.06b |
Ratio of net investment income | |||||
to average net assets | 1.29 | 2.19 | 1.62 | 1.55 | 1.92 |
Portfolio Turnover Rate | 66.78 | 65.88 | 33.02 | 62.06 | 40.75 |
Net Assets, end of period ($ x 1,000) | 988 | 1,045 | 1,407 | 1,719 | 1,468 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds | 115 |
FINANCIAL HIGHLIGHTS (continued)
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Mid Cap Stock Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 8.64 | 11.11 | 14.19 | 14.26 | 14.80 |
Investment Operations: | |||||
Investment income—neta | .05 | .07 | .03 | .06 | .08 |
Net realized and unrealized | |||||
gain (loss) on investments | .68 | (2.46) | (.53) | 2.17 | 1.21 |
Total from Investment Operations | .73 | (2.39) | (.50) | 2.23 | 1.29 |
Distributions: | |||||
Dividends from investment income—net | (.06) | (.06) | (.04) | (.08) | (.01) |
Dividends from net realized gain on investments | — | (.02) | (2.54) | (2.22) | (1.82) |
Total Distributions | (.06) | (.08) | (2.58) | (2.30) | (1.83) |
Net asset value, end of period | 9.31 | 8.64 | 11.11 | 14.19 | 14.26 |
Total Return (%) | 8.49 | (21.33) | (5.67) | 16.76 | 9.14 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .90 | .92 | .90 | .90 | .91 |
Ratio of net expenses to average net assetsb | .90 | .92 | .90 | .90 | .91 |
Ratio of net investment income | |||||
to average net assets | .53 | .86 | .28 | .42 | .51 |
Portfolio Turnover Rate | 123.41 | 147.50 | 121.12 | 112.31 | 93.33 |
Net Assets, end of period ($ x 1,000) | 1,162,906 | 1,185,376 | 1,540,821 | 1,708,747 | 1,560,575 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
116
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Mid Cap Stock Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 8.57 | 11.00 | 14.07 | 14.16 | 14.73 |
Investment Operations: | |||||
Investment income—neta | .03 | .05 | .00b | .02 | .04 |
Net realized and unrealized | |||||
gain (loss) on investments | .68 | (2.43) | (.53) | 2.15 | 1.21 |
Total from Investment Operations | .71 | (2.38) | (.53) | 2.17 | 1.25 |
Distributions: | |||||
Dividends from investment income—net | (.04) | (.03) | — | (.04) | — |
Dividends from net realized gain on investments | — | (.02) | (2.54) | (2.22) | (1.82) |
Total Distributions | (.04) | (.05) | (2.54) | (2.26) | (1.82) |
Net asset value, end of period | 9.24 | 8.57 | 11.00 | 14.07 | 14.16 |
Total Return (%) | 8.30 | (21.51) | (5.94) | 16.44 | 8.93 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.15 | 1.17 | 1.15 | 1.15 | 1.15 |
Ratio of net expenses to average net assetsc | 1.15 | 1.17 | 1.15 | 1.15 | 1.15 |
Ratio of net investment income | |||||
to average net assets | .27 | .63 | .03 | .16 | .26 |
Portfolio Turnover Rate | 123.41 | 147.50 | 121.12 | 112.31 | 93.33 |
Net Assets, end of period ($ x 1,000) | 20,733 | 19,785 | 28,520 | 35,139 | 30,433 |
a | Based on average shares outstanding at each month end. |
b | Amount represents less than $.01 per share. |
c | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds | 117 |
FINANCIAL HIGHLIGHTS (continued)
Dreyfus Premier Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Mid Cap Stock Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 8.08 | 10.40 | 13.52 | 13.74 | 14.44 |
Investment Operations: | |||||
Investment (loss)—neta | (.04) | (.01) | (.09) | (.07) | (.07) |
Net realized and unrealized | |||||
gain (loss) on investments | .64 | (2.29) | (.49) | 2.07 | 1.19 |
Total from Investment Operations | .60 | (2.30) | (.58) | 2.00 | 1.12 |
Distributions: | |||||
Dividends from net realized gain on investments | — | (.02) | (2.54) | (2.22) | (1.82) |
Net asset value, end of period | 8.68 | 8.08 | 10.40 | 13.52 | 13.74 |
Total Return (%) | 7.43 | (22.09) | (6.63) | 15.58 | 8.13 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.90 | 1.92 | 1.90 | 1.90 | 1.90 |
Ratio of net expenses to average net assetsb | 1.90 | 1.92 | 1.90 | 1.90 | 1.90 |
Ratio of net investment (loss) | |||||
to average net assets | (.45) | (.11) | (.73) | (.53) | (.48) |
Portfolio Turnover Rate | 123.41 | 147.50 | 121.12 | 112.31 | 93.33 |
Net Assets, end of period ($ x 1,000) | 526 | 709 | 1,669 | 3,635 | 6,170 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
118
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Small Cap Stock Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 8.57 | 11.44 | 14.82 | 15.39 | 17.18 |
Investment Operations: | |||||
Investment income (loss)—neta | .00b | .07 | .03 | .00b | (.01) |
Net realized and unrealized | |||||
gain (loss) on investments | .38 | (2.85) | (1.15) | 1.83 | .80 |
Total from Investment Operations | .38 | (2.78) | (1.12) | 1.83 | .79 |
Distributions: | |||||
Dividends from investment income—net | (.01) | (.08) | — | — | — |
Dividends from net realized gain on investments | — | (.01) | (2.26) | (2.40) | (2.58) |
Total Distributions | (.01) | (.09) | (2.26) | (2.40) | (2.58) |
Net asset value, end of period | 8.94 | 8.57 | 11.44 | 14.82 | 15.39 |
Total Return (%) | 4.45 | (24.11) | (9.07) | 12.53 | 5.04 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.00 | 1.03 | 1.01 | 1.01 | 1.01 |
Ratio of net expenses to average net assets | .98 | .99 | 1.01c | 1.00 | 1.01c |
Ratio of net investment income | |||||
(loss) to average net assets | .01 | .88 | .28 | .02 | (.08) |
Portfolio Turnover Rate | 183.41 | 159.78 | 132.19 | 167.04 | 108.79 |
Net Assets, end of period ($ x 1,000) | 412,824 | 610,567 | 633,118 | 670,238 | 667,241 |
a | Based on average shares outstanding at each month end. |
b | Amount represents less than $.01 per share. |
c | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds | 119 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Small Cap Stock Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 8.36 | 11.11 | 14.50 | 15.13 | 16.97 |
Investment Operations: | |||||
Investment income (loss)—neta | (.02) | .05 | .00b | (.03) | (.05) |
Net realized and unrealized | |||||
gain (loss) on investments | .38 | (2.72) | (1.13) | 1.80 | .79 |
Total from Investment Operations | .36 | (2.67) | (1.13) | 1.77 | .74 |
Distributions: | |||||
Dividends from investment income—net | — | (.07) | — | — | — |
Dividends from net realized gain on investments | — | (.01) | (2.26) | (2.40) | (2.58) |
Total Distributions | — | (.08) | (2.26) | (2.40) | (2.58) |
Net asset value, end of period | 8.72 | 8.36 | 11.11 | 14.50 | 15.13 |
Total Return (%) | 4.31 | (23.92) | (9.36) | 12.33 | 4.78 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.25 | 1.28 | 1.26 | 1.26 | 1.26 |
Ratio of net expenses to average net assets | 1.23 | 1.23 | 1.26c | 1.25 | 1.26c |
Ratio of net investment income | |||||
(loss) to average net assets | (.24) | .61 | .02 | (.23) | (.35) |
Portfolio Turnover Rate | 183.41 | 159.78 | 132.19 | 167.04 | 108.79 |
Net Assets, end of period ($ x 1,000) | 6,022 | 6,277 | 3,795 | 5,341 | 6,618 |
a | Based on average shares outstanding at each month end. |
b | Amount represents less than $.01 per share. |
c | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
120
Class M Shares | ||||
Year Ended August 31, | ||||
BNY Mellon U.S. Core Equity 130/30 Fund | 2010 | 2009 | 2008 | 2007a |
Per Share Data ($): | ||||
Net asset value, beginning of period | 9.07 | 11.39 | 12.64 | 12.50 |
Investment Operations: | ||||
Investment income (loss)—netb | .03 | .07 | .07 | (.00)c |
Net realized and unrealized | ||||
gain (loss) on investments | .74 | (2.28) | (1.32) | .14 |
Total from Investment Operations | .77 | (2.21) | (1.25) | .14 |
Distributions: | ||||
Dividends from investment income—net | (.03) | (.11) | — | — |
Net asset value, end of period | 9.81 | 9.07 | 11.39 | 12.64 |
Total Return (%) | 8.53 | (19.19) | (9.89) | 1.12d |
Ratios/Supplemental Data (%): | ||||
Ratio of total expenses to average net assets | 1.79 | 2.02 | 2.39e | .50d |
Ratio of net expenses to average net assets | 1.79 | 2.02f | 2.28e | .28d |
Ratio of net investment income | ||||
(loss) to average net assets | .26 | .87 | .58 | (.03)d |
Portfolio Turnover Rate | 117.53 | 138.97 | 163.66 | 11.94d |
Net Assets, end of period ($ x 1,000) | 186,137 | 80,952 | 180,803 | 26,064 |
a | From August 1, 2007 (commencement of operations) to August 31, 2007. |
b | Based on average shares outstanding at each month end. |
c | Amount represents less than $.01 per share. |
d | Not annualized. |
e | Higher costs are due to borrowing costs associated with the 130/30 fund structure. |
f | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds | 121 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | ||||
Year Ended August 31, | ||||
BNY Mellon U.S. Core Equity 130/30 Fund | 2010 | 2009 | 2008 | 2007a |
Per Share Data ($): | ||||
Net asset value, beginning of period | 9.02 | 11.36 | 12.63 | 12.50 |
Investment Operations: | ||||
Investment income (loss)—netb | (.01) | .04 | .02 | (.00)c |
Net realized and unrealized | ||||
gain (loss) on investments | .75 | (2.27) | (1.29) | .13 |
Total from Investment Operations | .74 | (2.23) | (1.27) | .13 |
Distributions: | ||||
Dividends from investment income—net | — | (.11) | — | — |
Net asset value, end of period | 9.76 | 9.02 | 11.36 | 12.63 |
Total Return (%) | 8.20 | (19.47) | (10.06) | 1.04d |
Ratios/Supplemental Data (%): | ||||
Ratio of total expenses to average net assets | 2.09 | 2.25 | 2.81e | .50d |
Ratio of net expenses to average net assets | 2.09 | 2.25f | 2.71e | .28d |
Ratio of net investment income | ||||
(loss) to average net assets | (.08) | .56 | .16 | (.03)d |
Portfolio Turnover Rate | 117.53 | 138.97 | 163.66 | 11.94d |
Net Assets, end of period ($ x 1,000) | 8 | 14 | 13 | 10 |
a | From August 1, 2007 (commencement of operations) to August 31, 2007. |
b | Based on average shares outstanding at each month end. |
c | Amount represents less than $.01 per share. |
d | Not annualized. |
e | Higher costs are due to borrowing costs associated with the 130/30 fund structure. |
f | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
122
Class M Shares | Investor Shares | |
Period Ended | Period Ended | |
BNY Mellon Focused Equity Opportunities Fund | August 31, 2010a | August 31, 2010a |
Per Share Data ($): | ||
Net asset value, beginning of period | 10.00 | 10.00 |
Investment Operations: | ||
Investment income—netb | .06 | .02 |
Net realized and unrealized | ||
gain (loss) on investments | .04 | .06 |
Total from Investment Operations | .10 | .08 |
Distributions: | ||
Dividends from investment income—net | (.01) | (.01) |
Dividends from net realized gain on investmentsc | (.00) | (.00) |
Total Distributions | (.01) | (.01) |
Net asset value, end of period | 10.09 | 10.07 |
Total Return (%)d | 1.01 | .75 |
Ratios/Supplemental Data (%): | ||
Ratio of total expenses to average net assetse | .98 | 1.53 |
Ratio of net expenses to average net assetse | .89 | 1.14 |
Ratio of net investment income | ||
to average net assetse | .59 | .23 |
Portfolio Turnover Rated | 64.75 | 64.75 |
Net Assets, end of period ($ x 1,000) | 238,332 | 13 |
a | From September 30, 2009 (commencement of operations) to August 31, 2010. |
b | Based on average shares outstanding at each month end. |
c | Amount represents less than $.01 per share. |
d | Not annualized. |
e | Annualized. |
See notes to financial statements.
The Funds | 123 |
FINANCIAL HIGHLIGHTS (continued)
Class M Shares | Investor Shares | |
Period Ended | Period Ended | |
BNY Mellon Small/Mid Cap Fund | August 31, 2010a | August 31, 2010a |
Per Share Data ($): | ||
Net asset value, beginning of period | 10.00 | 10.00 |
Investment Operations: | ||
Investment income—netb | .01 | .01 |
Net realized and unrealized | ||
gain (loss) on investments | .95 | .92 |
Total from Investment Operations | .96 | .93 |
Distributions: | ||
Dividends from investment income—net | (.01) | (.01) |
Dividends from net realized gain on investments | (.03) | (.03) |
Total Distributions | (.04) | (.04) |
Net asset value, end of period | 10.92 | 10.89 |
Total Return (%)c | 9.65 | 9.34 |
Ratios/Supplemental Data (%): | ||
Ratio of total expenses to average net assetsd | 1.07 | 2.35 |
Ratio of net expenses to average net assetsd | .92 | 1.20 |
Ratio of net investment income | ||
to average net assetsd | .06 | .08 |
Portfolio Turnover Ratec | 109.25 | 109.25 |
Net Assets, end of period ($ x 1,000) | 222,034 | 16 |
a | From September 30, 2009 (commencement of operations) to August 31, 2010. |
b | Based on average shares outstanding at each month end. |
c | Not annualized. |
d | Annualized. |
See notes to financial statements.
124
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon International Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($):�� | |||||
Net asset value, beginning of period | 10.12 | 12.11 | 17.56 | 17.77 | 16.20 |
Investment Operations: | |||||
Investment income—neta | .18 | .22 | .33 | .28 | .28 |
Net realized and unrealized | |||||
gain (loss) on investments | (.67) | (1.54) | (3.14) | 1.92 | 3.02 |
Total from Investment Operations | (.49) | (1.32) | (2.81) | 2.20 | 3.30 |
Distributions: | |||||
Dividends from investment income—net | (.25) | (.41) | (.29) | (.30) | (.23) |
Dividends from net realized gain on investments | — | (.26) | (2.35) | (2.11) | (1.50) |
Total Distributions | (.25) | (.67) | (2.64) | (2.41) | (1.73) |
Net asset value, end of period | 9.38 | 10.12 | 12.11 | 17.56 | 17.77 |
Total Return (%) | (5.07) | (9.95) | (18.61) | 12.93 | 21.86 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.09 | 1.14 | 1.10 | 1.08 | 1.10 |
Ratio of net expenses to average net assets | 1.09b | 1.03 | 1.06 | 1.08b | 1.10b |
Ratio of net investment income | |||||
to average net assets | 1.79 | 2.52 | 2.22 | 1.59 | 1.68 |
Portfolio Turnover Rate | 67.16 | 102.83 | 78.35 | 72.83 | 70.02 |
Net Assets, end of period ($ x 1,000) | 996,647 | 1,247,441 | 2,002,307 | 2,836,968 | 2,534,753 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds | 125 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon International Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 10.69 | 12.70 | 18.29 | 18.41 | 16.74 |
Investment Operations: | |||||
Investment income—neta | .16 | .20 | .28 | .23 | .26 |
Net realized and unrealized | |||||
gain (loss) on investments | (.70) | (1.60) | (3.26) | 2.03 | 3.11 |
Total from Investment Operations | (.54) | (1.40) | (2.98) | 2.26 | 3.37 |
Distributions: | |||||
Dividends from investment income—net | (.23) | (.35) | (.26) | (.27) | (.20) |
Dividends from net realized gain on investments | — | (.26) | (2.35) | (2.11) | (1.50) |
Total Distributions | (.23) | (.61) | (2.61) | (2.38) | (1.70) |
Net asset value, end of period | 9.92 | 10.69 | 12.70 | 18.29 | 18.41 |
Total Return (%) | (5.26) | (10.11) | (18.87) | 12.73 | 21.49 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.34 | 1.38 | 1.35 | 1.33 | 1.36 |
Ratio of net expenses to average net assets | 1.34b | 1.28 | 1.32 | 1.32 | 1.36b |
Ratio of net investment income | |||||
to average net assets | 1.46 | 2.27 | 1.82 | 1.26 | 1.50 |
Portfolio Turnover Rate | 67.16 | 102.83 | 78.35 | 72.83 | 70.02 |
Net Assets, end of period ($ x 1,000) | 4,319 | 5,099 | 6,627 | 13,634 | 9,256 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
126
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Emerging Markets Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 8.71 | 16.89 | 24.42 | 24.53 | 22.69 |
Investment Operations: | |||||
Investment income—neta | .08 | .14 | .23 | .25 | .29 |
Net realized and unrealized | |||||
gain (loss) on investments | 1.31 | (3.58) | (1.45) | 7.18 | 4.96 |
Total from Investment Operations | 1.39 | (3.44) | (1.22) | 7.43 | 5.25 |
Distributions: | |||||
Dividends from investment income—net | (.08) | (.42) | (.21) | (.22) | (.44) |
Dividends from net realized gain on investments | — | (4.32) | (6.10) | (7.32) | (2.97) |
Total Distributions | (.08) | (4.74) | (6.31) | (7.54) | (3.41) |
Net asset value, end of period | 10.02 | 8.71 | 16.89 | 24.42 | 24.53 |
Total Return (%) | 15.92 | (6.07) | (9.11) | 35.81 | 24.59 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.54 | 1.64 | 1.53 | 1.50 | 1.52 |
Ratio of net expenses to average net assets | 1.54b | 1.64b | 1.52 | 1.50b | 1.52 |
Ratio of net investment income | |||||
to average net assets | .85 | 1.76 | 1.11 | 1.05 | 1.18 |
Portfolio Turnover Rate | 76.34 | 119.72 | 63.60 | 60.72 | 49.06 |
Net Assets, end of period ($ x 1,000) | 1,796,274 | 1,097,296 | 1,141,146 | 1,521,024 | 1,312,055 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds | 127 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Emerging Markets Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 8.94 | 17.05 | 24.60 | 24.65 | 22.79 |
Investment Operations: | |||||
Investment income—neta | .06 | .11 | .20 | .15 | .26 |
Net realized and unrealized | |||||
gain (loss) on investments | 1.33 | (3.55) | (1.50) | 7.27 | 4.96 |
Total from Investment Operations | 1.39 | (3.44) | (1.30) | 7.42 | 5.22 |
Distributions: | |||||
Dividends from investment income—net | (.06) | (.35) | (.15) | (.15) | (.39) |
Dividends from net realized gain on investments | — | (4.32) | (6.10) | (7.32) | (2.97) |
Total Distributions | (.06) | (4.67) | (6.25) | (7.47) | (3.36) |
Net asset value, end of period | 10.27 | 8.94 | 17.05 | 24.60 | 24.65 |
Total Return (%) | 15.56 | (6.32) | (9.29) | 35.52 | 24.29 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.77 | 1.91 | 1.78 | 1.75 | 1.78 |
Ratio of net expenses to average net assets | 1.77b | 1.91b | 1.78b | 1.74 | 1.78 |
Ratio of net investment income | |||||
to average net assets | .54 | 1.32 | .96 | .65 | 1.07 |
Portfolio Turnover Rate | 76.34 | 119.72 | 63.60 | 60.72 | 49.06 |
Net Assets, end of period ($ x 1,000) | 7,091 | 4,476 | 7,187 | 10,846 | 11,761 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
128
Class M Shares | ||||||
BNY Mellon International | Year Ended | Eight Months Ended | Year Ended December 31, | |||
Appreciation Fund† | August 31, 2010 | August 31, 2009a | 2008 | 2007 | 2006 | 2005 |
Per Share Data ($): | ||||||
Net asset value, beginning of period | 11.35 | 9.40 | 16.58 | 15.46 | 12.62 | 11.32 |
Investment Operations: | ||||||
Investment income—netb | .26 | .23 | .45 | .41 | .30 | .20 |
Net realized and unrealized | ||||||
gain (loss) on investments | (.73) | 1.73 | (7.17) | 1.10 | 2.81 | 1.29 |
Total from Investment Operations | (.47) | 1.96 | (6.72) | 1.51 | 3.11 | 1.49 |
Distributions: | ||||||
Dividends from investment income—net | (.34) | (.01) | (.46) | (.39) | (.27) | (.19) |
Net asset value, end of period | 10.54 | 11.35 | 9.40 | 16.58 | 15.46 | 12.62 |
Total Return (%) | (4.35) | 20.93c | (41.12) | 9.79 | 24.68 | 13.14 |
Ratios/Supplemental Data (%): | ||||||
Ratio of total expenses to average net assets | .68 | .70d | .70 | .69 | .68 | .84 |
Ratio of net expenses to average net assets | .66 | .66d | .67 | .69 | .68 | .84 |
Ratio of net investment income | ||||||
to average net assets | 2.29 | 3.80d | 3.32 | 2.45 | 2.14 | 1.71 |
Portfolio Turnover Rate | 2.71 | 2.63c | 10.62 | 11 | 15 | 11 |
Net Assets, end of period ($ x 1,000) | 218,067 | 256,140 | 267,393 | 545,392 | 456,316 | 308,769 |
† Represents information for Institutional shares of the fund’s predecessor, BNY Hamilton International Equity Fund, through September 12, 2008. |
a The fund has changed its fiscal year end from December 31 to August 31. |
b Based on average shares outstanding at each month end. |
c Not annualized. |
d Annualized. |
See notes to financial statements.
The Funds | 129 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | ||||||
BNY Mellon International | Year Ended | Eight Months Ended | Year Ended December 31, | |||
Appreciation Fund† | August 31, 2010 | August 31, 2009a | 2008 | 2007 | 2006 | 2005 |
Per Share Data ($): | ||||||
Net asset value, beginning of period | 11.24 | 9.31 | 16.37 | 15.27 | 12.47 | 11.19 |
Investment Operations: | ||||||
Investment income—netb | .23 | .22 | .40 | .36 | .27 | .17 |
Net realized and unrealized | ||||||
gain (loss) on investments | (.72) | 1.71 | (7.06) | 1.09 | 2.77 | 1.26 |
Total from Investment Operations | (.49) | 1.93 | (6.66) | 1.45 | 3.04 | 1.43 |
Distributions: | ||||||
Dividends from investment income—net | (.32) | — | (.40) | (.35) | (.24) | (.15) |
Net asset value, end of period | 10.43 | 11.24 | 9.31 | 16.37 | 15.27 | 12.47 |
Total Return (%) | (4.60) | 20.73c | (41.21) | 9.50 | 24.38 | 12.81 |
Ratios/Supplemental Data (%): | ||||||
Ratio of total expenses to average net assets | .93 | .95d | .95 | .94 | .93 | 1.10 |
Ratio of net expenses to average net assets | .90 | .91d | .92 | .94 | .93 | 1.10 |
Ratio of net investment income | ||||||
to average net assets | 2.08 | 3.56d | 3.02 | 2.20 | 1.92 | 1.49 |
Portfolio Turnover Rate | 2.71 | 2.63c | 10.62 | 11 | 15 | 11 |
Net Assets, end of period ($ x 1,000) | 3,462 | 4,171 | 3,179 | 5,623 | 5,366 | 4,431 |
† Represents information for Class A shares of the fund’s predecessor, BNY Hamilton International Equity Fund, through September 12, 2008. |
a The fund has changed its fiscal year end from December 31 to August 31. |
b Based on average shares outstanding at each month end. |
c Not annualized. |
d Annualized. |
See notes to financial statements.
130
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Balanced Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 9.44 | 10.93 | 12.91 | 13.17 | 12.79 |
Investment Operations: | |||||
Investment income—neta | .19 | .24 | .30 | .29 | .27 |
Net realized and unrealized | |||||
gain (loss) on investments | .46 | (1.01) | (.73) | 1.21 | .64 |
Total from Investment Operations | .65 | (.77) | (.43) | 1.50 | .91 |
Distributions: | |||||
Dividends from investment income—net | (.24) | (.27) | (.36) | (.32) | (.30) |
Dividends from net realized gain on investments | — | (.45) | (1.19) | (1.44) | (.23) |
Total Distributions | (.24) | (.72) | (1.55) | (1.76) | (.53) |
Net asset value, end of period | 9.85 | 9.44 | 10.93 | 12.91 | 13.17 |
Total Return (%) | 6.84 | (6.08) | (3.99) | 12.09 | 7.22 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assetsd | .57 | .60 | .58 | .58 | .60 |
Ratio of net expenses to average net assetsd | .57b | .60b | .58b | .58b | .60 |
Ratio of net investment income | |||||
to average net assetsd | 1.78 | 2.81 | 2.51 | 2.26 | 2.10 |
Portfolio Turnover Rate | 69.81 | 78.44c | 51.92c | 89.78c | 64.43c |
Net Assets, end of period ($ x 1,000) | 335,138 | 301,643 | 317,545 | 358,068 | 342,110 |
a Based on average shares outstanding at each month end. |
b Expense waivers and/or reimbursements amounted to less than .01%. |
c The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended August 31, 2009, 2008, 2007 and 2006 were 77.77%, 51.44%, 75.75% and |
61.53%, respectively. |
d Amount does not include the activity of the underlying funds. |
See notes to financial statements.
The Funds | 131 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Balanced Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 9.50 | 10.98 | 12.96 | 13.21 | 12.83 |
Investment Operations: | |||||
Investment income—neta | .17 | .23 | .27 | .26 | .24 |
Net realized and unrealized | |||||
gain (loss) on investments | .44 | (1.01) | (.74) | 1.21 | .63 |
Total from Investment Operations | .61 | (.78) | (.47) | 1.47 | .87 |
Distributions: | |||||
Dividends from investment income—net | (.21) | (.25) | (.32) | (.28) | (.26) |
Dividends from net realized gain on investments | — | (.45) | (1.19) | (1.44) | (.23) |
Total Distributions | (.21) | (.70) | (1.51) | (1.72) | (.49) |
Net asset value, end of period | 9.90 | 9.50 | 10.98 | 12.96 | 13.21 |
Total Return (%) | 6.44 | (6.11) | (4.29) | 11.73 | 6.93 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assetsd | .82 | .85 | .81 | .86 | .85 |
Ratio of net expenses to average net assetsd | .82b | .85b | .81b | .86b | .85 |
Ratio of net investment income | |||||
to average net assetsd | 1.54 | 2.57 | 2.28 | 1.98 | 1.86 |
Portfolio Turnover Rate | 69.81 | 78.44c | 51.92c | 89.78c | 64.43c |
Net Assets, end of period ($ x 1,000) | 4,015 | 4,412 | 4,812 | 4,274 | 3,727 |
a Based on average shares outstanding at each month end. |
b Expense waivers and/or reimbursements amounted to less than .01%. |
c The portfolio turnover rates excluding mortgage dollar roll transactions for the periods ended August 31, 2009, 2008, 2007 and 2006 were 77.77%, 51.44%, 75.75% and |
61.53%, respectively. |
d Amount does not include the activity of the underlying funds. |
See notes to financial statements.
132
NOTES TO FINANCIAL STATEMENTS
NOTE 1—General:
BNY Mellon Funds Trust (the “Trust”) was organized as a Massachusetts business trust 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 consisting of twenty-five series including the following diversified equity funds and balanced fund: BNY Mellon Large Cap Stock Fund, BNY Mellon Large Cap Market Opportunities Fund, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, BNY Mellon Income Stock Fund, BNY Mellon Mid Cap Stock Fund, BNY Mellon Small Cap Stock Fund, BNY Mellon U.S. Core Equity 130/30 Fund, BNY Mellon Small/Mid Cap Fund, BNY Mellon International Fund, BNY Mellon Emerging Markets Fund, BNY Mellon International Appreciation Fund and BNY Mellon Balanced Fund and the following non-diversified equity fund: BNY Mellon Focused Equity Opportunities Fund (each, a “ fund” and collectively, the “funds”). BNY Mellon Focused Equity Opportunities Fund and BNY Mellon Small/Mid Cap Fund commenced operations on September 30, 2009. BNY Mellon Large Cap Market Opportunities Fund and BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund commenced operations on July 30, 2010. BNY Mellon Large Cap Stock Fund, BNY Mellon Large Cap Market Opportunities Fund, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, BNY Mellon Mid Cap Stock Fund, BNY Mellon Small Cap Stock Fund, BNY Mellon U.S. Core Equity 130/30 Fund, BNY Mellon Focused Equity Opportunities Fund and BNY Mellon Small/Mid Cap Fund is to seek capital appreciation and BNY Mellon Income Stock Fund is to seek total return (consisting of capital appreciation and income). BNY Mellon International Fund and BNY Mellon Emerging Markets Fund is to seek long-term capital growth. BNY Mellon International Appreciation Fund is to seek long-term capital appreciation. BNY Mellon Balanced Fund is to seek long-term growth of principal in conjunction with current income.
BNY Mellon Fund Advisers, a division of The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as each fund’s investment adviser (“Investment Adviser”). The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, serves as administrator for the funds pursuant to an Administration Agreement with the Trust (the “Administration Agreement”).The Bank of NewYork Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of New York Mellon pays Dreyfus for performing certain administrative services.Walter Scott & Partners Limited (“Walter Scott”), also a subsidiary of BNY Mellon and an affiliate of Dreyfus, serves as the BNY Mellon Large Cap Market Opportunities Fund’s and BNY Mellon Tax-Sensitive L arge Cap Multi-Strategy Fund’s sub-investment adviser. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of each fund’s shares.
As of the close of business on September 12, 2008, pursuant to an Agreement and Plan of Reorganization previously approved by the Trust’s Board, all of the assets, subject to the liabilities, of BNY Hamilton Small Cap Growth Fund (the “Small Cap Growth Fund”), a series of BNY Hamilton Funds, Inc. were transferred to BNY Mellon Small Cap Stock Fund (the “Acquiring Fund”) in exchange for the corresponding class of shares of Beneficial Interest of the Acquiring Fund of equal value. Shareholders of Institutional and Class A shares of the Small Cap Growth Fund received Class M and Investor shares of the Acquiring Fund, respectively, in each case in an equal amount to the aggregate net asset value of their investment in the Small Cap Growth Fund at the time of the exchange.The exchange ratios for Class M shares and Investor shares were 1.172 and 1.178, respectively. The net asset value of the Ac quiring Fund’s shares on the close of business on September 12, 2008, after the reorganization, was $11.16 for Class M shares and $10.84 for Investor shares, and a total of 6,473,576 Class M
The Funds | 133 |
NOTES TO FINANCIAL STATEMENTS (continued)
shares and 283,476 Investor shares, representing net assets of $75,321,838 (including $1,191,135 net unrealized appreciation on investments) were issued to the Small Cap Growth Fund shareholders in the exchange. The exchange was a tax-free event to shareholders of the Small Cap Growth Fund.
As of the close of business on September 12, 2008, pursuant to an Agreement and Plan of Reorganization previously approved by theTrust’s Board, all of the assets, subject to the liabilities, of BNY Hamilton Small Cap Core Equity Fund (the “Small Cap Core Equity Fund”), a series of BNY Hamilton Funds, Inc. were transferred to BNY Mellon Small Cap Stock Fund (the “Acquiring Fund”) in exchange for the corresponding class of shares of Beneficial Interest of the Acquiring Fund of equal value. Shareholders of Institutional and Class A shares of the Small Cap Core Equity Fund received Class M and Investor shares of the Acquiring Fund, respectively, in each case in an equal amount to the aggregate net asset value of their investment in the Small Cap Core Equity Fund at the time of the exchange.The exchange ratios for Class M shares and Investor shares were .961 and .986, respec-tively.The net asse t value of the Acquiring Fund’s shares on the close of business on September 12, 2008, after the reorganization, was $11.16 for Class M shares and $10.84 for Investor shares, and a total of 14,045,041 Class M shares and 125,336 Investor shares, representing net assets of $158,064,599 (including $1,296,509 net unrealized depreciation on investments) were issued to the Small Cap Core Equity Fund shareholders in the exchange.The exchange was a tax-free event to shareholders of the Small Cap Core Equity Fund.
The Trust is authorized to issue an unlimited number of shares of Beneficial Interest, par value $.001 per share, in each of the Class M and Investor class shares of each fund and in the Dreyfus Premier class shares of BNY Mellon Mid Cap Stock Fund. Dreyfus Premier shares of BNY Mellon Mid Cap Stock Fund are subject to a contingent deferred sales charge (“CDSC”) imposed on redemptions of Dreyfus Premier shares made within six
years of purchase and automatically convert to Investor class shares after six years. BNY Mellon Mid Cap Stock Fund does not offer Dreyfus Premier shares, except in connection with dividend reinvestment and permitted exchanges of Dreyfus Premier shares. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
As of August 31, 2010, MBC Investments Corp., an indirect subsidiary of BNY Mellon, held 1,000, 1,000, 800, 1,000, and 1,004 Investor shares of BNY Mellon Large Cap Market Opportunities Fund, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, BNY Mellon U.S. Core Equity 130/30 Fund, BNY Mellon Focused Equity Opportunities Fund and BNY Mellon Small/Mid Cap Fund, respectively.
TheTrust 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) has become the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants.The ASC has superseded all existing non-SEC accounting and reporting standards. Each fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.
134
NOTE 2—Significant Accounting Policies:
(a) Portfolio valuation: Investments in equity securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Registered investment companies that are not traded on an exchange are valued at their net asset valu e. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of the security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the funds calculate their net asset values, the funds may value these investments at fair value as determined in accordance with the procedures approved by the Trust’s Board. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADRs and futures contracts. For other securities that are fair valued by the Trust’s Board, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. 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 valued at the mean between the bid and asked price. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward foreign currency exchange contracts (“forward contracts”) are valued at the forward rate.
BNY Mellon Balanced Fund
Most debt securities are valued each business day by an independent pricing service (the “Service”) approved by the Trust’s Board. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Debt securities 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 debt securities (which constitute a majority of the portfolio securities) are valued as determined by the Service, based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Restricted securities, as well as securities or other assets for which recent market quotations are not readily available and are not valued by a pricing service approved by the Trust’s Board, or are determined by the fund not to reflect accurately fair value, are valued at fair value as determined in good faith under the direction of the Trust’s Board.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.
The Funds | 135 |
NOTES TO FINANCIAL STATEMENTS (continued)
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of each fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Table 1 summarizes the inputs used as of August 31, 2010 in valuing each fund’s investments.
In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair
value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by each fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at August 31, 2010.The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. These new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have on the funds’ financial statement disclosures.
(b) Securities transactions and investment income:
Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.
The funds have arrangements with the custodian and cash management bank whereby the funds may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the funds include net earnings credits as an expense offset in the Statements of Operations.
BNY Mellon International Fund, BNY Mellon Emerging Markets Fund and BNY Mellon International Appreciation Fund
Investing in foreign markets may involve special risks and considerations not typically associated with investing in the U.S. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and adverse political and economic develop-
136
Table 1. | |||||||
Investments in Securities | |||||||
Level 2—Other | Level 3— Significant | ||||||
Level 1—Unadjusted | Significant | Unobservable | |||||
Quoted Prices | Observable Inputs | Inputs | |||||
Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Total ($) | |
BNY Mellon Large Cap | |||||||
Stock Fund | |||||||
Equity Securities— | |||||||
Domestic† | 1,109,431,959 | — | — | — | — | — | 1,109,431,959 |
Equity Securities— | |||||||
Foreign† | 62,724,394 | — | — | — | — | — | 62,724,394 |
Mutual Funds/ | |||||||
Exchange Traded | |||||||
Funds | 60,086,670 | — | — | — | — | — | 60,086,670 |
BNY Mellon Large | |||||||
Cap Market | |||||||
Opportunities Fund | |||||||
Equity Securities— | |||||||
Domestic† | 3,862,792 | — | — | — | — | — | 3,862,792 |
Mutual Funds | 2,318,360 | — | — | — | — | — | 2,318,360 |
BNY Mellon | |||||||
Tax-Sensitive Large | |||||||
Cap Multi-Strategy Fund | |||||||
Equity Securities— | |||||||
Domestic† | 8,640,440 | — | — | — | — | — | 8,640,440 |
Mutual Funds | 1,454,220 | — | — | — | — | — | 1,454,220 |
BNY Mellon Income | |||||||
Stock Fund | |||||||
Equity Securities— | |||||||
Domestic† | 88,232,200 | — | — | — | — | — | 88,232,200 |
Equity Securities— | |||||||
Foreign† | 3,658,192 | — | — | — | — | — | 3,658,192 |
Mutual Funds/ | |||||||
Exchange Traded | |||||||
Funds | 419,831 | — | — | — | — | — | 419,831 |
BNY Mellon Mid Cap | |||||||
Stock Fund | |||||||
Equity Securities— | |||||||
Domestic† | 1,165,611,274 | — | — | — | — | — | 1,165,611,274 |
Equity Securities— | |||||||
Foreign† | 22,461,274 | — | — | — | — | — | 22,461,274 |
Mutual Funds | 114,310,288 | — | — | — | — | — | 114,310,288 |
BNY Mellon Small Cap | |||||||
Stock Fund | |||||||
Equity Securities— | |||||||
Domestic† | 413,095,313 | — | — | — | — | — | 413,095,313 |
Equity Securities— | |||||||
Foreign† | 4,401,158 | — | — | — | — | — | 4,401,158 |
Mutual Funds | 73,505,617 | — | — | — | — | — | 73,505,617 |
The Funds | 137 |
NOTES TO FINANCIAL STATEMENTS (continued)
Table 1 (continued). | |||||||
Investments in Securities | |||||||
Level 2—Other | Level 3— Significant | ||||||
Level 1—Unadjusted | Significant | Unobservable | |||||
Quoted Prices | Observable Inputs | Inputs | |||||
Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Total ($) | |
BNY Mellon U.S. Core | |||||||
Equity 130/30 Fund | |||||||
Equity Securities— | |||||||
Domestic† | 229,264,746 | — | — | — | — | — | 229,264,746 |
Equity Securities— | |||||||
Foreign† | 10,520,323 | — | — | — | — | — | 10,520,323 |
Mutual Funds/Exchange | |||||||
Traded Funds | 8,317,704 | — | — | — | — | — | 8,317,704 |
Investments in Securities | |||||||
Sold Short, Not Yet | |||||||
Purchased—Domestic†† | — | (60,093,252) | — | — | — | — | (60,093,252) |
Investments in Securities | |||||||
Sold Short, Not Yet | |||||||
Purchased—Foreign†† | — | (1,427,538) | — | — | — | — | (1,427,538) |
BNY Mellon Focused Equity | |||||||
Opportunities Fund | |||||||
Equity Securities— | |||||||
Domestic† | 238,055,787 | — | — | — | — | — | 238,055,787 |
Mutual Funds | 1,644,000 | — | — | — | — | — | 1,644,000 |
Other Financial | |||||||
Instruments: | |||||||
Options Written | — | (24,800) | — | — | — | — | (24,800) |
BNY Mellon Small/Mid | |||||||
Cap Fund | |||||||
Equity Securities— | |||||||
Domestic† | 204,878,826 | — | — | — | — | — | 204,878,826 |
Equity Securities— | |||||||
Foreign† | 8,242,560 | — | — | — | — | — | 8,242,560 |
Mutual Funds | 25,370,546 | — | — | — | — | — | 25,370,546 |
BNY Mellon | |||||||
International Fund | |||||||
Equity Securities— | |||||||
Domestic††† | 5,257,883 | — | — | — | — | — | 5,257,883 |
Equity Securities— | |||||||
Foreign††† | 984,919,755 | — | — | — | — | — | 984,919,755 |
Mutual Funds/Exchange | |||||||
Traded Funds | 3,547,602 | — | — | — | — | — | 3,547,602 |
Other Financial | |||||||
Instruments: | |||||||
Forward Foreign | |||||||
Currency Exchange | |||||||
Contracts†††† | — | — | 6,972 | (32,426) | — | — | (25,454) |
138
Table 1 (continued). | |||||||
Investments in Securities | |||||||
Level 2—Other | Level 3— Significant | ||||||
Level 1—Unadjusted | Significant | Unobservable | |||||
Quoted Prices | Observable Inputs | Inputs | |||||
Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Total ($) | |
BNY Mellon Emerging | |||||||
Markets Fund | |||||||
Equity Securities— | |||||||
Foreign††† | 1,736,390,268 | — | 4,615,168 | — | — | — | 1,741,005,436 |
Mutual Funds/Exchange | |||||||
Traded Funds | 52,368,686 | — | — | — | — | — | 52,368,686 |
Other Financial | |||||||
Instruments: | |||||||
Forward Foreign | |||||||
Currency Exchange | |||||||
Contracts†††† | — | — | 928 | (8,948) | — | — | (8,020) |
BNY Mellon International | |||||||
Appreciation Fund | |||||||
Equity Securities— | |||||||
Foreign††† | 218,158,265 | — | — | — | — | — | 218,158,265 |
U.S. Treasury | — | — | 229,995 | — | — | — | 229,995 |
Mutual Funds | 1,978,000 | — | — | — | — | — | 1,978,000 |
Other Financial | |||||||
Instruments: | |||||||
Forward Foreign | |||||||
Currency Exchange | |||||||
Contracts†††† | — | — | 135,484 | (5,880) | — | — | 129,604 |
Futures†††† | 10,091 | (68,016) | — | — | — | — | (57,925) |
BNY Mellon Balanced Fund | |||||||
Asset—Backed | — | — | 4,038,018 | — | — | — | 4,038,018 |
Commercial | |||||||
Mortgage—Backed | — | — | 6,736,857 | — | — | — | 6,736,857 |
Corporate Bonds† | — | — | 32,194,470 | — | — | — | 32,194,470 |
Equity Securities— | |||||||
Domestic† | 109,909,473 | — | — | — | — | — | 109,909,473 |
Equity Securities— | |||||||
Foreign† | 6,150,002 | — | — | — | — | — | 6,150,002 |
Foreign Government | — | — | 2,024,173 | — | — | — | 2,024,173 |
Municipal Bonds | — | — | 4,367,817 | — | — | — | 4,367,817 |
Mutual Funds/Exchange | |||||||
Traded Funds | 92,468,223 | — | — | — | — | — | 92,468,223 |
U.S. Government Agencies/ | |||||||
Mortgage—Backed | — | — | 51,346,895 | — | — | — | 51,346,895 |
U.S. Treasury | — | — | 32,927,886 | — | — | — | 32,927,886 |
† | See Statement of Investments for industry classification. |
†† | See Statement of Securities Sold Short for industry classification. |
††† | See Statement of Investments for country and industry classification. |
†††† | Amount shown represents unrealized appreciation (depreciation) at period end. |
The Funds | 139 |
NOTES TO FINANCIAL STATEMENTS (continued)
ments. Moreover, securities issued in these markets may be less liquid, subject to government ownership controls and delayed settlements, and their prices may be more volatile than those of comparable securities in the U.S.
Pursuant to a securities lending agreement withThe Bank of New York Mellon, the funds may lend securities to qualified institutions. It is the funds’ policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by Dreyfus, U.S. Government and Agency securities or letters of credit.The funds are 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 funds 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. Table 2 summarizes the amountThe Bank of NewYork Mellon earned from each relevant fund from lending portfolio securities, pursuant to the securities lending agreement during the period ended August 31, 2010.
Table 2. | |
BNY Mellon Large Cap Stock Fund | $ 35,715 |
BNY Mellon Income Stock Fund | 952 |
BNY Mellon Mid Cap Stock Fund | 196,909 |
BNY Mellon Small Cap Stock Fund | 97,696�� |
BNY Mellon Small/Mid Cap Fund | 10,817 |
BNY Mellon Emerging Markets Fund | 15,791 |
BNY Mellon Balanced Fund | 4,773 |
(c) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” in the Act.
The funds may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Table 3 summarizes each fund’s investments in
affiliated investment companies for the period ended August 31, 2010.
(d) Foreign currency transactions: BNY Mellon Emerging Markets Fund, BNY Mellon International Fund and BNY Mellon International Appreciation Fund do 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 of foreign currencies, currency gains or losses realized on securities transactions between trade and settlement date, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the funds’ 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 resulting from changes in exchange rates. Foreign currency gains and losses on investments are included with net realized and unrealized gain or loss on investments.
(e) Concentration of risk: BNY Mellon U. S. Core Equity 130/30 Fund enters into short sales. Short sales involve selling a security the fund does not own in anticipation that the security’s price will decline. Short sales may involve substantial risk and “leverage.” The fund may be required to buy the security sold short at a time when the security has appreciated in value, thus resulting in a loss to the fund. Short positions in stocks involve more risk than long positions in stocks. In theory, stocks sold short have unlimited risk. BNY Mellon Balanced Fund invests in debt securities. Failure of an issuer of the debt securities to make timely interest or principal payments, or a decline or the perception of a decline in the credit quality of a debt security, can cause the debt security’s price to fall, p otentially lowering the fund’s share price. In addition, the value of debt securities may decline
140
Table 3. | ||||||||
Net | Net Unrealized | |||||||
Affiliated | Value | Realized | Appreciation | Value | Net | |||
Investment Company | 8/31/2009 ($) | Purchases ($) | Sales ($) | Dividends ($) | (Loss) ($) (Depreciation) ($) | 8/31/2010 ($) | Assets (%) | |
BNY Mellon | ||||||||
Large Cap | ||||||||
Stock Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred | ||||||||
Plus Money | ||||||||
Market Fund | 2,653,000 | 325,530,000 | 328,091,000 | — | — | — | 92,000 | .0 |
Dreyfus Institutional | ||||||||
Cash Advantage | ||||||||
Plus Fund | 122,299,850 | 789,813,132 | 863,986,749 | — | — | — | 48,126,233 | 4.0 |
Total | 124,952,850 | 1,115,343,132 | 1,192,077,749 | — | — | — | 48,218,233 | 4.0 |
BNY Mellon | ||||||||
Large Cap | ||||||||
Market | ||||||||
Opportunities | ||||||||
Fund | ||||||||
BNY Mellon | ||||||||
U.S. Core | ||||||||
Equity 130/30 | ||||||||
Fund, CI. M | — | 998,000 | — | — | — | (28,640) | 969,360 | 19.1 |
Dreyfus Institutional | ||||||||
Preferred Plus | ||||||||
Money Market Fund | — | 3,669,000 | 2,320,000 | — | — | — | 1,349,000 | 26.5 |
Total | — | 4,667,000 | 2,320,000 | — | — | (28,640) | 2,318,360 | 45.6 |
BNY Mellon | ||||||||
Tax-Sensitive | ||||||||
Large Cap | ||||||||
Multi-Strategy | ||||||||
Fund | ||||||||
BNY Mellon U.S. Core | ||||||||
Equity 130/30 | ||||||||
Fund, CI. M | — | 990,000 | — | — | — | (21,780) | 968,220 | 9.4 |
Dreyfus Institutional | ||||||||
Preferred Plus | ||||||||
Money Market Fund | — | 4,881,000 | 4,395,000 | — | — | — | 486,000 | 4.7 |
Total | — | 5,871,000 | 4,395,000 | — | — | (21,780) | 1,454,220 | 14.1 |
BNY Mellon Income | ||||||||
Stock Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred Plus | ||||||||
Money Market Fund | 266,000 | 7,733,000 | 7,999,000 | — | — | — | — | — |
Dreyfus Institutional | ||||||||
Cash Advantage | ||||||||
Plus Fund | 4,504,683 | 28,223,133 | 32,501,491 | — | — | — | 226,325 | .2 |
Total | 4,770,683 | 35,956,133 | 40,500,491 | — | — | — | 226,325 | .2 |
The Funds | 141 |
NOTES TO FINANCIAL STATEMENTS (continued)
Table 3 (continued). | ||||||||
Net | Net Unrealized | |||||||
Affiliated | Value | Realized | Appreciation | Value | Net | |||
Investment Company | 8/31/2009 ($) | Purchases ($) | Sales ($) | Dividends ($) | (Loss) ($) (Depreciation) ($) | 8/31/2010 ($) | Assets (%) | |
BNY Mellon Mid Cap | ||||||||
Stock Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred Plus | ||||||||
Money Market Fund | 9,005,000 | 468,005,000 | 469,387,000 | — | — | — | 7,623,000 | .7 |
Dreyfus Institutional | ||||||||
Cash Advantage | ||||||||
Plus Fund | 259,410,744 | 1,002,128,411 | 1,154,851,867 | — | — | — | 106,687,288 | 9.0 |
Total | 268,415,744 | 1,470,133,411 | 1,624,238,867 | — | — | — | 114,310,288 | 9.7 |
BNY Mellon Small | ||||||||
Cap Stock Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred Plus Money | ||||||||
Market Fund | — | 353,814,000 | 350,482,000 | — | — | — | 3,332,000 | .8 |
Dreyfus Institutional | ||||||||
Cash Advantage | ||||||||
Plus Fund | 151,678,930 | 501,224,362 | 582,729,675 | — | — | — | 70,173,617 | 16.7 |
Total | 151,678,930 | 855,038,362 | 933,211,675 | — | — | — | 73,505,617 | 17.5 |
BNY Mellon U.S. Core | ||||||||
Equity 130/30 Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred Plus | ||||||||
Money Market Fund | — | 60,332,000 | 57,383,000 | — | — | — | 2,949,000 | 1.6 |
BNY Mellon Focused | ||||||||
Equity Opportunities Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred Plus Money | ||||||||
Market Fund | — | 186,084,000 | 184,440,000 | — | — | — | 1,644,000 | .7 |
BNY Mellon Small/Mid | ||||||||
Cap Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred Plus Money | ||||||||
Market Fund | — | 170,510,000 | 163,184,000 | — | — | — | 7,326,000 | 3.3 |
Dreyfus Institutional Cash | ||||||||
Advantage Fund | — | 58,377,473 | 40,332,927 | — | — | — | 18,044,546 | 8.1 |
Total | — | 228,887,473 | 203,516,927 | — | — | — | 25,370,546 | 11.4 |
BNY Mellon International Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred Plus Money | ||||||||
Market Fund | 17,150,000 | 258,150,000 | 272,500,000 | — | — | — | 2,800,000 | .3 |
BNY Mellon Emerging | ||||||||
Markets Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred Plus Money | ||||||||
Market Fund | 11,500,000 | 450,100,000 | 434,500,000 | — | — | — | 27,100,000 | 1.5 |
Dreyfus Institutional | ||||||||
Cash Advantage | ||||||||
Plus Fund | 1,702,292 | 20,754,679 | 22,456,971 | — | — | — | — | — |
Total | 13,202,292 | 470,854,679 | 456,956,971 | — | — | — | 27,100,000 | 1.5 |
142
Table 3 (continued). | ||||||||
Net | Net Unrealized | |||||||
Affiliated | Value | Realized | Appreciation | Value | Net | |||
Investment Company | 8/31/2009 ($) | Purchases ($) | Sales ($) | Dividends ($) | (Loss) ($) (Depreciation) ($) | 8/31/2010 ($) | Assets (%) | |
BNY Mellon | ||||||||
International | ||||||||
Appreciation Fund | ||||||||
Dreyfus Institutional | ||||||||
Preferred Plus Money | ||||||||
Market Fund | — | 32,769,000 | 30,791,000 | — | — | — | 1,978,000 | .9 |
BNY Mellon | ||||||||
Balanced Fund | ||||||||
BNY Mellon | ||||||||
Emerging Markets | ||||||||
Fund, CI. M | 18,202,384 | 6,907,958 | — | 207,958 | — | 3,003,966 | 28,114,308 | 8.3 |
BNY Mellon | ||||||||
International | ||||||||
Fund, CI. M | 24,519,018 | 4,707,762 | — | 707,762 | — | (2,372,487) | 26,854,293 | 7.9 |
BNY Mellon | ||||||||
Mid Cap Stock | ||||||||
Fund, CI. M | 18,748,196 | 1,634,536 | 2,000,000 | 134,536 | (451,253) | 2,114,960 | 20,046,439 | 5.9 |
BNY Mellon | ||||||||
Small Cap Stock | ||||||||
Fund, CI. M | 9,186,473 | 1,012,220 | 670,000 | 12,220 | (271,368) | 708,068 | 9,965,393 | 2.9 |
Dreyfus Institutional | ||||||||
Preferred | ||||||||
Plus Money | ||||||||
Market Fund | 8,241,000 | 92,759,000 | 98,980,000 | — | — | — | 2,020,000 | .6 |
Dreyfus Institutional | ||||||||
Cash Advantage | ||||||||
Plus Fund | 26,231,002 | 121,247,141 | 144,166,049 | — | — | — | 3,312,094 | 1.0 |
Total | 105,128,073 | 228,268,617 | 245,816,049 | 1,062,476 | (722,621) | 3,454,507 | 90,312,527 | 26.6 |
due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment. They may also decline because of factors that affect a particular industry.
BNY Mellon Focused Equity Opportunities Fund is non-diversified, which means that a relatively high percentage of the fund’s assets may be invested in a limited number of issuers.Therefore, the fund’s performance may be more vulnerable to changes in market value of a single issuer or group of issuers and more susceptible to risks associated with a single economic, political or regulatory occurrence than a diversified fund.
(f) Dividends to shareholders: Dividends payable to shareholders are recorded by the funds on the ex-dividend
date. BNY Mellon Large Cap Stock Fund, BNY Mellon Income Stock Fund and BNY Mellon Balanced Fund declare and pay dividends from investment income-net monthly. BNY Mellon Large Cap Market Opportunities Fund, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, BNY Mellon Mid Cap Stock Fund, BNY Mellon Small Cap Stock Fund, BNY Mellon U.S. Core Equity 130/30 Fund, BNY Mellon Focused Equity Opportunities Fund, BNY Mellon Small/Mid Cap Fund, BNY Mellon International Fund, BNY Mellon Emerging Markets Fund and BNY Mellon International Appreciation Fund declare and pay dividends from investment income-net annually. With respect to each series, dividends from net realized capital gains, if any, are normally declared and paid annually, but the funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code
The Funds | 143 |
NOTES TO FINANCIAL STATEMENTS (continued)
of 1986, as amended (the “Code”).To the extent that net realized capital gains can be offset by capital loss carryovers of that fund, it is the policy of the funds not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
(g) Federal income taxes: It is the policy of each 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. For federal income tax purposes, each series is treated as a single entity for the purpose of determining such qualification.
As of and during the period ended August 31, 2010, the funds did not have any liabilities for any uncertain tax positions. The funds recognize interest and penalties, if
any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period, the funds did not incur any interest or penalties.
Except for BNY Mellon Large Cap Market Opportunities Fund, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, BNY Mellon Focused Equity Opportunities Fund and BNY Mellon Small/Mid Cap Fund, each of the tax years in the four-year period ended August 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities. For BNY Mellon Large Cap Market Opportunities Fund, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, BNY Mellon Focused Equity Opportunities Fund and BNY Mellon Small/Mid Cap Fund, the period ended August 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.
Table 4 summarizes each fund’s components of accumulated earnings on a tax basis at August 31, 2010.
Table 4. | |||||
Undistributed | Accumulated | Undistributed | Unrealized | Capital (Losses) | |
Ordinary | Capital | Capital | Appreciation | Realized After | |
Income ($) | (Losses) ($) | Gains ($) | (Depreciation) ($) | October 31, 2009 ($)† | |
BNY Mellon Large Cap Stock Fund | 494,953 | (188,092,197) | — | 122,603,405 | — |
BNY Mellon Large Cap Market | |||||
Opportunities Fund | 1,202 | — | — | (167,337) | (602) |
BNY Mellon Tax-Sensitive | |||||
Large Cap Multi-Strategy Fund | 3,952 | — | — | (285,304) | (939) |
BNY Mellon Income Stock Fund | 126,500 | (24,531,303) | — | 2,447,902 | — |
BNY Mellon Mid Cap Stock Fund | — | (214,153,991) | — | 54,188,905 | — |
BNY Mellon Small Cap Stock Fund | — | (168,794,212) | — | (4,161,352) | — |
BNY Mellon U.S. Core Equity 130/30 Fund | 388,109 | (56,276,956) | — | 1,469,859 | — |
BNY Mellon Focused Equity | |||||
Opportunities Fund | 620,294 | — | — | (11,187,321) | (4,364,401) |
BNY Mellon Small/Mid Cap Fund | 78,127 | — | 14,761 | (5,595,959) | — |
BNY Mellon International Fund | 21,172,410 | (622,973,162) | — | (135,592,446) | (15,842,412)†† |
BNY Mellon Emerging Markets Fund | 9,726,535 | (150,786,863) | — | 127,319,759 | — |
BNY Mellon International Appreciation Fund | 3,982,701 | (27,705,019) | — | (62,731,177) | (5,920,519)†† |
BNY Mellon Balanced Fund | 2,912,663 | (9,165,220) | — | 797,239 | — |
† | These losses were deferred for tax purposes to the first day of the following fiscal year. |
†† Included are passive foreign investment companies post-October losses of $123,326 and $22,390 for BNY Mellon International Fund and BNY Mellon International | |
Appreciation Fund, respectively. |
144
Table 5 summarizes each relevant fund’s accumulated capital loss carryover available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to August 31, 2010.
Table 6 summarizes each relevant fund’s tax character of distributions paid to shareholders during the fiscal periods ended August 31, 2010 and August 31, 2009, respectively.
During the period ended August 31, 2010, as a result of permanent book to tax differences, each relevant fund increased (decreased) accumulated undistributed investment income-net, increased (decreased) accumulated net realized gain (loss) on investments and increased (decreased) paid-in capital as summarized in Table 7. These permanent book to tax differences are primarily
Table 5. | |||||
Expiring in fiscal | 2011 ($)† | 2016 ($)† | 2017 ($)† | 2018 ($)† | Total ($) |
BNY Mellon Large Cap Stock Fund | — | — | 104,532,089 | 83,560,108 | 188,092,197 |
BNY Mellon Income Stock Fund | — | — | 8,161,053 | 16,370,250 | 24,531,303 |
BNY Mellon Mid Cap Stock Fund | — | — | 83,544,677 | 130,609,314 | 214,153,991 |
BNY Mellon Small Cap Stock Fund | — | 4,923,837 | 66,384,085 | 97,486,290 | 168,794,212 |
BNY Mellon U.S. Core Equity 130/30 Fund | — | 114,430 | 23,308,714 | 32,853,812 | 56,276,956 |
BNY Mellon International Fund | — | — | 160,678,992 | 462,294,170 | 622,973,162 |
BNY Mellon Emerging Markets Fund | — | — | 43,341,501 | 107,445,362 | 150,786,863 |
BNY Mellon International Appreciation Fund | 10,488,108 | — | 17,216,911 | — | 27,705,019 |
BNY Mellon Balanced Fund | — | — | 7,507,394 | 1,657,826 | 9,165,220 |
† If not applied, the carryovers expire in the above years. |
Table 6. | ||||
Long-Term | ||||
Ordinary Income ($) | Capital Gains ($) | |||
2010 | 2009 | 2010 | 2009 | |
BNY Mellon Large Cap Stock Fund | 11,065,751 | 19,143,619 | — | 17,133,676 |
BNY Mellon Income Stock Fund | 1,723,623 | 3,222,920 | — | 11,340,430 |
BNY Mellon Mid Cap Stock Fund | 8,513,360 | 6,655,443 | — | 2,115,354 |
BNY Mellon Small Cap Stock Fund | 754,676 | 5,805,325 | — | 588,458 |
BNY Mellon U.S. Core Equity 130/30 Fund | 307,480 | 1,198,524 | — | — |
BNY Mellon Focused Equity Opportunities Fund | 24,000 | — | — | — |
BNY Mellon Small/Mid Cap Fund | 176,607 | — | — | — |
BNY Mellon International Fund | 30,009,971 | 50,974,570 | — | 31,916,379 |
BNY Mellon Emerging Markets Fund | 11,055,178 | 67,524,653 | — | 159,081,364 |
BNY Mellon International Appreciation Fund | 7,648,881 | 321,748† | — | — |
BNY Mellon Balanced Fund | 7,907,628 | 8,156,340 | — | 12,807,246 |
† For the eight months ended August 31, 2009. |
The Funds | 145 |
NOTES TO FINANCIAL STATEMENTS (continued)
due to the fund start-up costs for BNY Mellon Large Cap Market Opportunities Fund, fund start-up costs and real estate investment trusts for BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, real estate investment trusts, limited partnerships and distributions in excess of taxable income for BNY Mellon Mid Cap Stock Fund and BNY Mellon Small Cap Stock Fund, short sales reclassification and excise tax paid for BNY Mellon U.S. Core Equity 130/30 Fund, fund start-up costs and dividend reclassification for BNY Mellon Focused Equity Opportunities Fund, real estate investment trusts, limited partnerships and fund start-up costs for BNY Mellon Small/Mid Cap Fund, foreign exchange gains and losses and passive foreign investment companies for BNY Mellon International Fund, foreign exchange gains and losses, passive foreign investment companies, and Thailand and India capital gains taxes for BNY Mellon Emerging Market s Fund, foreign exchange gains and losses, passive foreign investments companies, and a capital loss carryover expiration for BNY Mellon International Appreciation Fund and paydown gains and losses on mortgage backed securities and amortization adjustments for BNY Mellon Balanced Fund. Net assets and net asset values per share were not affected by these reclassifications.
NOTE 3—Bank Lines of Credit:
Except for BNY Mellon Large Cap Market Opportunities Fund and BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, the funds participate with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, each fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the funds based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended August 31, 2010, BNY Mellon Focused Equity Opportunities Fund, BNY Mellon Small/Mid Cap Fund and BNY Mellon Emerging Markets Fund did not borrow under the Facilities.
The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2010 for BNY Mellon Large Cap Stock Fund, was approximately $2,408,600 with a related weighted average annualized interest rate of 1.41%.
Table 7. | |||
Accumulated | Accumulated | ||
Undistributed | Net Realized | Paid-in | |
Investment Income—Net ($) | Gain (Loss) ($) | Capital ($) | |
BNY Mellon Large Cap Market Opportunities Fund | 188 | — | (188) |
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund | 347 | 16 | (363) |
BNY Mellon Mid Cap Stock Fund | (704,400) | 833,695 | (129,295) |
BNY Mellon Small Cap Stock Fund | 182,587 | 424,629 | (607,216) |
BNY Mellon U.S. Core Equity 130/30 Fund | 17,374 | (15,306) | (2,068) |
BNY Mellon Focused Equity Opportunities Fund | 2,387 | 116 | (2,503) |
BNY Mellon Small/Mid Cap Fund | (3,048) | 15,091 | (12,043) |
BNY Mellon International Fund | 161,887 | (161,887) | — |
BNY Mellon Emerging Markets Fund | (3,752,466) | 3,752,466 | — |
BNY Mellon International Appreciation Fund | (259,137) | 21,471,476 | (21,212,339) |
BNY Mellon Balanced Fund | 811,543 | (811,543) | — |
146
The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2010 for BNY Mellon Income Stock Fund, was approximately $206,000 with a related weighted average annualized interest rate of 1.31%.
The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2010 for BNY Mellon Mid Cap Stock Fund, was approximately $14,800 with a related weighted average annualized interest rate of 1.43%.
The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2010 for BNY Mellon Small Cap Stock Fund, was approximately $186,700 with a related weighted average annualized interest rate of 1.44%.
The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2010 for BNY Mellon U.S. Core Equity 130/30 Fund, was approximately $73,300 with a related weighted average annualized interest rate of 1.48%.
The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2010 for BNY Mellon International Fund, was approximately $57,000 with a related weighted average annualized interest rate of 1.47%.
The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2010 for BNY Mellon International Appreciation Fund, was approximately $70,200 with a related weighted average annualized interest rate of 1.44%.
The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2010 for BNY Mellon Balanced Fund, was approximately $3,600 with a related weighted average annualized interest rate of 1.40%.
NOTE 4—Investment Advisory Fee, Administration Fee, Sub-Investment Advisory Fee and Other Transactions With Affiliates:
(a) Fees payable by the funds pursuant to the provisions of an investment advisory agreement with the Investment Adviser are payable monthly, computed on the average daily value of each fund’s net assets at the following annual rates: .65% of BNY Mellon Large Cap Stock Fund, .70% (direct investment in securities) and .15% (other underlying BNY Mellon Funds), of BNY Mellon Large Cap Market Opportunities Fund, .70% (direct investment in securities) and .15% (other underlying BNY Mellon Funds), of BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, .65% of BNY Mellon Income Stock Fund, .75% of BNY Mellon Mid Cap Stock Fund, .85% of BNY Mellon Small Cap Stock Fund, .80% of BNY Mellon U.S. Core Equity 130/30 Fund, .70% of BNY Mellon Focused Equity Opportunities Fund, .75% of BNY Mellon Small/Mid Cap Fund, .85% of BNY Mel lon International Fund, 1.15% of BNY Mellon Emerging Markets Fund, .50% of BNY Mellon International Appreciation Fund and .65% (equity investments), .40% (debt securities) and .15% (money market investments and other underlying BNY Mellon funds) of BNY Mellon Balanced Fund.
For BNY Mellon Large Cap Market Opportunities Fund, the Investment Adviser has contractually agreed, until January 1, 2012, to waive receipt of its fees and/or assume the expenses of the fund so that the total annual fund operating expenses of neither class, excluding shareholder services fees, taxes, interest, brokerage commissions and extraordinary expenses, do not exceed 1.25% of the value of the average daily net assets of their respective class. The expense reimbursement pursuant to the undertaking, amounted to $30,658, during the period ended August 31, 2010.
The Funds | 147 |
NOTES TO FINANCIAL STATEMENTS (continued)
For BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, the Investment Adviser has contractually agreed, until January 1, 2012, to waive receipt of its fees and/or assume the expenses of the fund so that the total annual fund operating expenses of neither class, excluding shareholder services fees, taxes, interest, brokerage commissions and extraordinary expenses, do not exceed 1.15% of the value of the average daily net assets of their respective class.The expense reimbursement, pursuant to the undertaking, amounted to $28,189 during the period ended August 31, 2010.
For BNY Mellon Small Cap Stock Fund, the Investment Adviser has contractually agreed, until September 30, 2010, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of Class M shares and Investor shares of the fund, exclusive of taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses, do not exceed an annual rate of .99% and 1.24% of the value of the average daily net assets of their respective class. The reduction in investment advisory fee, pursuant to the undertaking, amounted to $110,307 during the period ended August 31, 2010.
For BNY Focused Equity Opportunities Fund, the Investment Adviser has contractually agreed, until January 1, 2011, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither class, excluding shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses, do not exceed .90% of the value of the average daily net assets of their respective class.The reduction in investment advisory fee, pursuant to the undertaking, amounted to $93,564 during the period ended August 31, 2010.
For BNY Small/Mid Cap Fund, the Investment Adviser has contractually agreed, until January 1, 2011, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither class, excluding shareholder services fees, taxes, interest, brokerage com-
missions, commitment fees on borrowings and extraordinary expenses, do not exceed .95% of the value of the average daily net assets of their respective class. The reduction in investment advisory fee, pursuant to the undertaking, amounted to $161,535 during the period ended August 31, 2010.
For the BNY Mellon International Appreciation Fund, the Investment Adviser has contractually agreed, until September 30, 2010, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither class, excluding shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses, do not exceed .67% of the value of the average daily net assets of their respective class. The reduction in investment advisory fee, pursuant to the undertaking, amounted to $52,217 during the period ended August 31, 2010.
Pursuant to the Administration Agreement,The Bank of New York Mellon provides or arranges for fund accounting, transfer agency and other fund administration services and receives a fee based on the total net assets of the Trust based on the following rates:
0 up to $6 billion | .15% |
$6 billion up to $12 billion | .12% |
In excess of $12 billion | .10% |
No administration fee is applied to assets held by BNY Mellon Large Cap Market Opportunities Fund and BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, which are invested in shares of certain other series of the Trust.
No administration fee is applied to assets held by BNY Mellon Balanced Fund, which are invested in cash or money market instruments or shares of certain other series of the Trust.
The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of New York Mellon pays Dreyfus for performing certain administrative services.
148
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Walter Scott, Dreyfus pays Walter Scott a monthly fee at an annual rate of .41% of BNY Mellon Large Cap Market Opportunities Fund’s and BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund’s average daily net assets.
During the period ended August 31, 2010, the Distributor retained $837 from CDSCs on redemptions of BNY Mellon Mid Cap Stock Fund’s Dreyfus Premier shares.
(b) BNY Mellon Mid Cap Stock Fund has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act for distributing its Dreyfus Premier shares. BNY Mellon Mid Cap Stock Fund pays the Distributor a fee at an annual rate of .75% of the value of the fund’s average daily net assets attributable to its Dreyfus Premier shares. During the period ended August 31, 2010, BNY Mellon Mid Cap Stock Fund’s Dreyfus Premier shares were charged $5,011 pursuant to the Plan.
(c) The funds have adopted a Shareholder Services Plan with respect to their Investor shares and BNY Mellon Mid Cap Stock Fund has adopted a Shareholder Services Plan with respect to its Dreyfus Premier shares. Each fund pays the Distributor for the provision of certain services to holders of Investor shares and Dreyfus Premier shares a fee at an annual rate of .25% of the value of the average daily net assets attributable to Investor shares and Dreyfus Premier shares. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding a fund, and providing reports and other information and services related to the maintenance of such shareholder accounts. The Shareholder Services Plan allows the Distributor to make payments from the shareholder services fees it collects from each fund to compensate service agents (certain banks, securities brokers or dealers and other financial institutions) in respect of these services. Table 8 summarizes the amounts Investor shares and Dreyfus Premier shares were charged during the period ended August
31, 2010, pursuant to the Shareholder Services Plan. Additional fees included in shareholder servicing costs in the Statements of Operations include fees paid for cash management charges.
Table 8. | |
BNY Mellon Large Cap Stock Fund | $20,079 |
BNY Mellon Large Cap Market | |
Opportunities Fund | 2 |
BNY Mellon Tax-Sensitive | |
Large Cap Multi-Strategy Fund | 2 |
BNY Mellon Income Stock Fund | 2,814 |
BNY Mellon Mid Cap Stock Fund, | |
Investor shares | 53,391 |
BNY Mellon Mid Cap Stock Fund, | |
Dreyfus Premier shares | 1,671 |
BNY Mellon Small Cap Stock Fund | 16,372 |
BNY Mellon U.S. Core Equity 130/30 Fund | 21 |
BNY Mellon Focused Equity | |
Opportunities Fund | 27 |
BNY Mellon Small/Mid Cap Fund | 144 |
BNY Mellon International Fund | 12,188 |
BNY Mellon Emerging Markets Fund | 14,524 |
BNY Mellon International Appreciation Fund | 9,962 |
BNY Mellon Balanced Fund | 10,849 |
The funds compensate The Bank of New York Mellon under cash management agreements for performing cash management services related to fund subscriptions and redemptions. Table 9 summarizes the amount each fund was charged during the period ended August 31, 2010, pursuant to the cash management agreements, which is included in Shareholder servicing costs in the Statements of Operations.These fees were partially offset by earnings credits, also summarized in Table 9.
The funds also compensate The Bank of New York Mellon under a custody agreement for providing custodial services for the funds. Table 10 summarizes the amount each fund was charged during the period ended August 31, 2010, pursuant to the custody agreement.
The Funds | 149 |
NOTES TO FINANCIAL STATEMENTS (continued)
Table 10. | |
BNY Mellon Large Cap Stock Fund | $108,583 |
BNY Mellon Large Cap Market | |
Opportunities Fund | 3,500 |
BNY Mellon Tax-Sensitive | |
Large Cap Multi-Strategy Fund | 1,000 |
BNY Mellon Income Stock Fund | 18,612 |
BNY Mellon Mid Cap Stock Fund | 102,145 |
BNY Mellon Small Cap Stock Fund | 74,196 |
BNY Mellon U.S. Core Equity 130/30 Fund | 36,380 |
BNY Mellon Focused Equity | |
Opportunities Fund | 32,111 |
BNY Mellon Small/Mid Cap Fund | 80,738 |
BNY Mellon International Fund | 1,165,423 |
BNY Mellon Emerging Markets Fund | 3,786,748 |
BNY Mellon International | |
Appreciation Fund | 23,707 |
BNY Mellon Balanced Fund | 41,197 |
During the period ended August 31, 2010, each fund (except BNY Mellon Large Cap Market Opportunities Fund and BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund) was charged $4,648 for services performed by the Chief Compliance Officer. During the period ended August 31, 2010, BNY Mellon Large Cap Market
Opportunities Fund and BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund were each charged $673 for services performed by the Chief Compliance Officer.
Table 11 summarizes the components of “Due to/from The Dreyfus Corporation and affiliates” in the Statements of Assets and Liabilities for each fund.
(d) Each trustee who is not an “affiliated person” as defined in the Act receives from the Trust an annual fee of $68,000 and an attendance fee of $7,500 for each in-person meeting attended and $500 for telephone meetings and is reimbursed for travel and out-of-pocket expenses.The Chairman of the Trust’s Board receives an additional annual fee of $15,000 and the Chairman of the Trust’s Audit Committee receives an additional annual fee of $10,000.
NOTE 5—Securities Transactions:
Table 12 summarizes each fund’s aggregate amount of purchases and sales (including paydowns) of investment securities and securities sold short, excluding short-term securities, financial futures, options transactions and forward contracts, during the period ended August 31, 2010.
Table 9. | ||
Cash Management Fees ($) | Earnings Credits ($) | |
BNY Mellon Large Cap Stock Fund | 310 | (3) |
BNY Mellon Large Cap Market Opportunities Fund | 1 | — |
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund | 1 | — |
BNY Mellon Income Stock Fund | 116 | (1) |
BNY Mellon Mid Cap Stock Fund | 10,204 | (115) |
BNY Mellon Small Cap Stock Fund | 2,540 | (28) |
BNY Mellon U.S. Core Equity 130/30 Fund | 39 | — |
BNY Mellon Focused Equity Opportunities Fund | 13 | (1) |
BNY Mellon Small/Mid Cap Fund | 15 | (1) |
BNY Mellon International Fund | 538 | (6) |
BNY Mellon Emerging Markets Fund | 629 | (7) |
BNY Mellon International Appreciation Fund | 1,079 | (12) |
BNY Mellon Balanced Fund | 89 | (1) |
150
Table 11. | ||||||
(Less) | ||||||
Investment | Rule 12b-1 | Shareholder | Chief | Expense | ||
Advisory | Distribution | Services | Custodian | Compliance | Reimbursement | |
Fees ($) | Plan Fees ($) | Plan Fees ($) | Fees ($) | Officer Fees ($) | Fees ($) | |
BNY Mellon Large Cap Stock Fund | 682,495 | — | 1,648 | 15,052 | 673 | — |
BNY Mellon Large Cap Market | ||||||
Opportunities Fund | 1,331 | — | 2 | 3,500 | 673 | (30,658) |
BNY Mellon Tax-Sensitive | ||||||
Large Cap Multi-Strategy Fund | 2,591 | — | 2 | 1,000 | 673 | (28,188) |
BNY Mellon Income Stock Fund | 53,257 | — | 222 | 2,685 | 673 | — |
BNY Mellon Mid Cap Stock Fund | 786,767 | 351 | 4,669 | 15,220 | 673 | — |
BNY Mellon Small Cap Stock Fund | 318,524 | — | 1,328 | 12,608 | 673 | (11,454) |
BNY Mellon U.S. Core | ||||||
Equity 130/30 Fund | 128,175 | — | 2 | 4,002 | 673 | — |
BNY Mellon Focused Equity | ||||||
Opportunities Fund | 142,960 | — | 3 | 4,741 | 673 | — |
BNY Mellon Small/Mid Cap Fund | 140,637 | — | 4 | 3,840 | 673 | — |
BNY Mellon International Fund | 750,937 | — | 970 | 400,171 | 673 | — |
BNY Mellon Emerging Markets Fund | 1,792,176 | — | 1,524 | 560,089 | 673 | — |
BNY Mellon International | ||||||
Appreciation Fund | 97,226 | — | 752 | 2,525 | 673 | — |
BNY Mellon Balanced Fund | 123,026 | — | 882 | 6,048 | 673 | — |
Table 12. | ||
Purchases ($) | Sales ($) | |
BNY Mellon Large Cap Stock Fund | 988,807,392 | 1,356,407,538 |
BNY Mellon Large Cap Market Opportunities Fund | 5,004,409 | 59,318 |
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund | 9,979,176 | 84,252 |
BNY Mellon Income Stock Fund | 75,045,323 | 114,801,361 |
BNY Mellon Mid Cap Stock Fund | 1,553,031,898 | 1,666,878,868 |
BNY Mellon Small Cap Stock Fund | 981,321,334 | 1,214,087,573 |
BNY Mellon Focused Equity Opportunities Fund | 329,505,773 | 75,866,950 |
BNY Mellon Small/Mid Cap Fund | 345,457,647 | 126,938,825 |
BNY Mellon International Fund | 763,499,508 | 927,683,095 |
BNY Mellon Emerging Markets Fund | 1,661,667,069 | 1,144,481,949 |
BNY Mellon International Appreciation Fund | 6,571,183 | 33,377,391 |
BNY Mellon Balanced Fund | 254,684,631 | 228,764,494 |
BNY Mellon U.S. Core Equity 130/30 Fund | ||
Long transactions | 354,338,306 | 216,474,409 |
Short sale transactions | 97,689,276 | 136,422,572 |
Total | 452,027,582 | 352,896,981 |
The Funds | 151 |
NOTES TO FINANCIAL STATEMENTS (continued)
Short Sales: BNY Mellon U.S. Core Equity 130/30 Fund is engaged in short-selling which obligates the fund to replace the security borrowed by purchasing the security at current market value.The fund incurs a loss if the price of the security increases between the date of the short sale and the date on which the fund replaces the borrowed security. The fund realizes a gain if the price of the security declines between those dates. Until the fund replaces the borrowed security, the fund will maintain daily a segregated account with a broker or custodian, of permissible liquid assets sufficient to cover its short position. Securities sold short at August 31, 2010, and their related market values and proceeds, are set forth in the Statement of Securities Sold Short.
The provisions of ASC Topic 815 “Derivatives and Hedging” require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. BNY Mellon Large Cap Stock Fund, BNY Mellon Large Cap Market Opportunities Fund, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, BNY Mellon Mid Cap Stock Fund, BNY Mellon Small Cap Stock Fund, BNY Mellon U.S. Core Equity 130/30 Fund, BNY Mellon Small/Mid Cap Fund and BNY Mellon Balanced Fund held no derivatives during the period ended August 31, 2010.These disclosures did not impact the notes to the financial statements.
During the period, BNY Mellon Income Stock Fund, BNY Mellon Focused Equity Opportunities Fund, BNY Mellon International Fund, BNY Mellon Emerging Markets Fund and BNY Mellon International Appreciation Fund held derivatives. These disclosure requirements distinguish between derivatives, which are accounted for as “hedges” and those that do not qualify for hedge accounting. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they
do not qualify for such hedge accounting. Accordingly, even though a fund’s investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of this disclosure.
BNY Mellon International Appreciation Fund held derivatives that subject the fund to multiple categories of risk exposure. Table 13 shows the fund’s exposure to different types of market risk as it relates to the Statement of Assets and Liabilities and the Statement of Operations, respectively.
Table 14 summarizes each relevant fund’s average market value and percentage of average net assets of derivatives outstanding for the period ended August 31, 2010.
Futures Contracts: In the normal course of pursuing its investment objective, BNY Mellon International Appreciation Fund is exposed to market risk, including equity price risk as a result of changes in value of underlying financial instruments.The fund invests in financial futures contracts in order to manage its exposure to or protect against changes in the market.A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, 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.Accordingly, variation margin payments are received or made to reflect daily unrea lized gains or losses which are recorded in the Statement of Operations. Futures contracts are valued daily at the last sales price established by the Board of Trade or exchange upon which they are traded. When the contracts are closed, the fund recognizes a realized gain or loss.There is minimal counterparty credit risk to the fund with futures since futures are exchange traded, and the exchange’s clearinghouse guarantees the futures against default. Contracts open at August 31, 2010 are set forth in the Statement of Financial Futures.
152
Fair value of derivative instruments for BNY Mellon International Appreciation Fund as of August 31, 2010 is shown below:
Table 13.
Derivative | Derivative | ||
Assets ($) | Liabilities ($) | ||
Equity risk1 | 10,091 | Equity risk1 | (68,016) |
Foreign exchange risk2 | 135,484 | Foreign exchange risk3 | (5,880) |
Gross fair value of derivatives contracts | 145,575 | (73,896) |
Statement of Assets and Liabilities location: |
1 Includes cumulative appreciation (depreciation) on futures contracts as reported in the Statement of Financial Futures, but only the unpaid variation margin is reported in |
the Statement of Assets and Liabilities. |
2 Unrealized appreciation on forward foreign currency exchange contracts. |
3 Unrealized depreciation on forward foreign currency exchange contracts. |
The effect of derivative instruments in the Statement of Operations for BNY Mellon International Appreciation Fund during the period ended August 31, 2010 is shown below:
Amount of realized gain or (loss) on derivatives recognized in income ($) | |||
Underlying risk | Futures4 | Forward Contracts5 | Total |
Equity | 81,447 | — | 81,447 |
Foreign exchange | — | (300,950) | (300,950) |
Total | 81,447 | (300,950) | (219,503) |
Change in unrealized appreciation or (depreciation) on derivatives recognized in income ($) | |||
Underlying risk | Futures6 | Forward Contracts7 | Total |
Equity | (57,925) | — | (57,925) |
Foreign exchange | — | 129,604 | 129,604 |
Total | (57,925) | 129,604 | 71,679 |
Statement of Operations location: | |
4 | Net realized gain (loss) on financial futures. |
5 | Net realized gain (loss) on forward foreign currency exchange contracts. |
6 | Net unrealized appreciation (depreciation) on financial futures. |
7 | Net unrealized appreciation (depreciation) on forward foreign currency exchange contracts. |
Table 14. | ||
Average | ||
Value ($) | Net Assets (%) | |
BNY Mellon International Fund | ||
Forward contracts | 10,568,606 | .90 |
BNY Mellon Emerging Markets Fund | ||
Forward contracts | 8,420,236 | .54 |
BNY Mellon International Appreciation Fund | ||
Equity futures contracts | 2,384,780 | .96 |
Forward contracts | 2,390,799 | .96 |
The Funds | 153 |
NOTES TO FINANCIAL STATEMENTS (continued)
Options: BNY Mellon Income Stock Fund and BNY Mellon Focused Equity Opportunities Fund purchases and writes (sells) put and call options to hedge against changes in the values of equities, or as a substitute for an investment. Each fund is subject to market risk in the course of pursuing its investment objectives through its investments in options contracts. A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the writer to sell, the underlying security or securities at the exercise price at any time during the option period, or at a specified date. Conversely, a put option gives the purchaser of the option the right (but not the obligation) to sell, and obligates the writer to buy the underlying security or securities at the exercise price at any time during the option per iod, or at a specified date.
As a writer of call options, each 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, each fund realizes 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, each fund incurs a loss, if the price of the financial instrument increases between those dates.
As a writer of put options, each 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, each fund realizes 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, each fund incurs a loss, if the price of the financial instrument decreases between those dates.
As a writer of an option, each fund has no control over whether the underlying securities may be sold (called) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option. There is a risk of loss from a change in value of such options which may exceed the related premiums received. One risk of holding a put or a call option is that if the option is not sold or exercised prior to its expiration, it becomes worthless. However, this risk is limited to the premium paid by each fund. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statements of Operations.
Table 15 summarizes BNY Mellon Income Stock Fund’s and BNY Mellon Focused Equity Opportunities Fund’s call/put options written for the period ended August 31, 2010.
Table 15. | ||||
BNY Mellon Income Stock Fund | Options Terminated | |||
Number of | Premiums | Net Realized | ||
Options Written | Contracts | Received ($) | Cost ($) | Gain ($) |
Contracts outstanding August 31, 2009 | — | — | ||
Contracts written | 777 | 107,120 | ||
Contracts terminated: | ||||
Contracts closed | 606 | 91,730 | 53,430 | 38,300 |
Contracts expired | 171 | 15,390 | — | 15,390 |
Total contracts terminated | 777 | 107,120 | 53,430 | 53,690 |
Contracts outstanding August 31, 2010 | — | — |
154
Forward Foreign Currency Exchange Contracts: BNY chases of forward contracts, each fund incurs a loss if the Mellon International Fund, BNY Mellon Emerging value of the contract decreases between the date the Markets Fund, and BNY Mellon International Appreci- forward contract is opened and the date the forward ation Fund enter into forward contracts in order to hedge contract is closed. Each fund realizes a gain if the value of their exposure to changes in foreign currency exchange the contract increases between those dates. Any realized rates on its foreign portfolio holdings, to settle foreign gain or loss which occurred during the period is currency transactions or as a part of their investment reflected in the Statements of Operations. Each fund is strategies.When executing forward contracts, each fund is exposed to for eign currency risk as a result of changes obligated to buy or sell a foreign currency at a specified in value of underlying financial instruments. Each fund rate on a certain date in the future.With respect to sales is also exposed to credit risk associated with counterparty of forward contracts, each fund incurs a loss if the value nonperformance on these forward contracts, which is of the contract increases between the date the forward typically limited to the unrealized gain on each open contract is opened and the date the forward contract is contract. Table 16 summarizes open forward contracts closed. Each fund realizes a gain if the value of the con- for each fund at August 31, 2010. tract decreases between those dates.With respect to pur-
Table 15 (continued). | ||
BNY Mellon Focused Equity Opportunities Fund | ||
Number of | Premiums | |
Options Written | Contracts | Received ($) |
Contracts outstanding September 30, 2009 | — | — |
Contracts written | 400 | 53,971 |
Contracts outstanding August 31, 2010 | 400 | 53,971 |
Table 16. | ||||
BNY Mellon International Fund | ||||
Foreign | Unrealized | |||
Currency | Appreciation | |||
Forward Foreign Currency Exchange Contracts | Amounts | Cost ($) | Value ($) | (Depreciation) ($) |
Purchases: | ||||
British Pound, Expiring 9/2/2010 | 480,035 | 739,350 | 736,205 | (3,145) |
Swedish Krona, Expiring 9/1/2010 | 8,912,691 | 1,206,048 | 1,205,795 | (253) |
Sales: | Proceeds ($) | |||
British Pound, Expiring 9/1/2010 | 286,973 | 445,038 | 440,116 | 4,922 |
British Pound, Expiring 9/2/2010 | 286,135 | 440,705 | 438,830 | 1,875 |
Euro, Expiring 9/1/2010 | 66,206 | 84,075 | 83,900 | 175 |
Japanese Yen, Expiring 9/2/2010 | 68,567,560 | 812,412 | 816,183 | (3,771) |
Swiss Franc, Expiring 9/1/2010 | 2,616,002 | 2,551,450 | 2,576,707 | (25,257) |
Gross Unrealized Appreciation | 6,972 | |||
Gross Unrealized Depreciation | (32,426) |
The Funds | 155 |
NOTES TO FINANCIAL STATEMENTS (continued) |
Table 16 (continued). | ||||
BNY Mellon Emerging Markets Fund | ||||
Foreign | Unrealized | |||
Currency | Appreciation | |||
Forward Foreign Currency Exchange Contracts | Amounts | Cost ($) | Value ($) | (Depreciation) ($) |
Purchases: | ||||
Brazilian Lira, | ||||
Expiring 9/1/2010 | 52,084 | 29,848 | 29,848 | — |
Brazilian Lira, | ||||
Expiring 9/2/2010 | 172,640 | 99,048 | 99,048 | — |
Indian Rupee, | ||||
Expiring 9/1/2010 | 20,345,206 | 434,031 | 434,031 | — |
Indian Rupee, | ||||
Expiring 9/1/2010 | 6,750,032 | 144,001 | 144,001 | — |
Indian Rupee, | ||||
Expiring 9/1/2010 | 1,216,280 | 25,947 | 25,947 | — |
Indian Rupee, | ||||
Expiring 9/1/2010 | 139,273 | 2,971 | 2,971 | — |
South African Rand, | ||||
Expiring 9/1/2010 | 7,707,476 | 1,053,942 | 1,045,082 | (8,860) |
South Korean Won, | ||||
Expiring 9/1/2010 | 13,308,490 | 11,103 | 11,101 | (2) |
South Korean Won, | ||||
Expiring 9/2/2010 | 548,755,898 | 463,007 | 463,007 | — |
Taiwan Dollar, | ||||
Expiring 9/1/2010 | 63,400,000 | 1,979,703 | 1,979,703 | — |
Sales: | Proceeds ($) | |||
Brazilian Lira, | ||||
Expiring 9/1/2010 | 6,366 | 3,644 | 3,644 | — |
Brazilian Lira, | ||||
Expiring 9/1/2010 | 742,281 | 424,889 | 424,889 | — |
Brazilian Lira, | ||||
Expiring 9/1/2010 | 74,254 | 42,504 | 42,504 | — |
Brazilian Lira, | ||||
Expiring 9/2/2010 | 80,007 | 45,902 | 45,902 | — |
Brazilian Lira, | ||||
Expiring 9/2/2010 | 1,586,020 | 909,937 | 909,937 | — |
Brazilian Lira, | ||||
Expiring 9/3/2010 | 76,799 | 44,703 | 44,703 | — |
Hong Kong Dollar, | ||||
Expiring 9/1/2010 | 2,508,112 | 322,373 | 322,431 | (58) |
156
Table 16 (continued). | ||||
BNY Mellon Emerging Markets Fund (continued) | ||||
Foreign | Unrealized | |||
Currency | Appreciation | |||
Forward Foreign Currency Exchange Contracts | Amounts | Proceeds ($) | Value ($) | (Depreciation) ($) |
Sales (continued): | ||||
Hong Kong Dollar, | ||||
Expiring 9/1/2010 | 441,149 | 56,702 | 56,712 | (10) |
Indian Rupee, | ||||
Expiring 9/1/2010 | 1,245,002 | 26,682 | 26,682 | — |
Indian Rupee, | ||||
Expiring 9/1/2010 | 3,014,838 | 64,613 | 64,613 | — |
Indian Rupee, | ||||
Expiring 9/2/2010 | 60,540,531 | 1,293,463 | 1,293,463 | — |
Indian Rupee, | ||||
Expiring 9/2/2010 | 20,521,338 | 438,443 | 438,443 | — |
Indonesian Rupiah, | ||||
Expiring 9/2/2010 | 279,594,110 | 31,032 | 31,032 | — |
Indonesian Rupiah, | ||||
Expiring 9/2/2010 | 363,853,953 | 40,383 | 40,383 | — |
Mexican New Peso, | ||||
Expiring 9/1/2010 | 1,558,208 | 118,795 | 118,051 | 744 |
Mexican New Peso, | ||||
Expiring 9/2/2010 | 1,914,279 | 145,108 | 145,028 | 80 |
South Korean Won, | ||||
Expiring 9/1/2010 | 6,240,403 | 5,204 | 5,205 | (1) |
South Korean Won, | ||||
Expiring 9/1/2010 | 119,019,470 | 99,257 | 99,274 | (17) |
South Korean Won, | ||||
Expiring 9/2/2010 | 110,110,765 | 92,873 | 92,873 | — |
South Korean Won, | ||||
Expiring 9/2/2010 | 229,574,896 | 193,636 | 193,636 | — |
Thai Baht, | ||||
Expiring 9/3/2010 | 3,591,862 | 115,013 | 115,013 | — |
Thai Baht, | ||||
Expiring 9/3/2010 | 4,412,917 | 141,304 | 141,304 | — |
Turkish Lira, | ||||
Expiring 9/1/2010 | 443,909 | 290,802 | 290,698 | 104 |
Gross Unrealized Appreciation | 928 | |||
Gross Unrealized Depreciation | (8,948) |
The Funds | 157 |
NOTES TO FINANCIAL STATEMENTS (continued)
Table 17 summarizes the cost of investments for federal appreciation (depreciation) on investments for each fund income tax purposes and accumulated net unrealized at August 31, 2010.
Table 16 (continued). | ||||
BNY Mellon International Appreciation Fund | ||||
Foreign | Unrealized | |||
Currency | Appreciation | |||
Forward Foreign Currency Exchange Contracts | Amounts | Cost ($) | Value ($) | (Depreciation) ($) |
Purchases: | ||||
Australian Dollar, Expiring 9/15/2010 | 196,092 | 160,910 | 174,132 | 13,222 |
Australian Dollar, Expiring 9/15/2010 | 2,384 | 2,168 | 2,117 | (51) |
Australian Dollar, Expiring 9/15/2010 | 111,600 | 100,121 | 99,102 | (1,019) |
British Pound, Expiring 9/15/2010 | 403,601 | 587,033 | 618,917 | 31,884 |
British Pound, Expiring 9/15/2010 | 39,200 | 60,201 | 60,113 | (88) |
British Pound, Expiring 9/15/2010 | 1,200 | 1,906 | 1,840 | (66) |
British Pound, Expiring 9/15/2010 | 53,100 | 83,128 | 81,428 | (1,700) |
British Pound, Expiring 9/15/2010 | 52,900 | 82,403 | 81,121 | (1,282) |
Euro, Expiring 9/15/2010 | 620,476 | 745,285 | 786,282 | 40,997 |
Euro, Expiring 9/15/2010 | 29,900 | 38,519 | 37,890 | (629) |
Euro, Expiring 9/15/2010 | 211,600 | 269,188 | 268,145 | (1,043) |
Euro, Expiring 9/15/2010 | 7,913 | 9,999 | 10,028 | 29 |
Japanese Yen, Expiring 9/15/2010 | 49,786,471 | 546,117 | 592,718 | 46,601 |
Japanese Yen, Expiring 9/15/2010 | 205,000 | 2,387 | 2,441 | 54 |
Japanese Yen, Expiring 9/15/2010 | 16,550,000 | 194,334 | 197,031 | 2,697 |
Japanese Yen, Expiring 9/15/2010 | 120,000 | 1,431 | 1,429 | (2) |
Gross Unrealized Appreciation | 135,484 | |||
Gross Unrealized Depreciation | (5,880) |
Table 17. | ||||
Cost of | Gross | Gross | ||
Investments ($) | Appreciation ($) | Depreciation ($) | Net ($) | |
BNY Mellon Large Cap Stock Fund | 1,109,639,618 | 168,778,859 | 46,175,454 | 122,603,405 |
BNY Mellon Large Cap Market Opportunities Fund | 6,348,489 | 7,514 | 174,851 | (167,337) |
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund | 10,379,964 | 16,232 | 301,536 | (285,304) |
BNY Mellon Income Stock Fund | 89,862,321 | 9,175,824 | 6,727,922 | 2,447,902 |
BNY Mellon Mid Cap Stock Fund | 1,248,193,931 | 122,790,979 | 68,602,074 | 54,188,905 |
BNY Mellon Small Cap Stock Fund | 495,163,440 | 27,486,224 | 31,647,576 | (4,161,352) |
BNY Mellon U.S. Core Equity 130/30 Fund | 250,431,014 | 13,378,237 | 15,706,478 | (2,328,241) |
BNY Mellon Focused Equity Opportunities Fund | 250,916,279 | 6,469,207 | 17,685,699 | (11,216,492) |
BNY Mellon Small/Mid Cap Fund | 244,087,891 | 12,603,277 | 18,199,236 | (5,595,959) |
BNY Mellon International Fund | 1,129,364,656 | 66,873,868 | 202,513,284 | (135,639,416) |
BNY Mellon Emerging Markets Fund | 1,665,996,714 | 238,773,212 | 111,395,804 | 127,377,408 |
BNY Mellon International Appreciation Fund | 283,039,513 | 20,122,605 | 82,795,858 | (62,673,253) |
BNY Mellon Balanced Fund | 341,366,575 | 24,160,160 | 23,362,921 | 797,239 |
158
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of BNY Mellon Funds Trust
We have audited the accompanying statements of assets and liabilities of BNY Mellon Large Cap Stock Fund, BNY Mellon Large Cap Market Opportunities Fund, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, BNY Mellon Income Stock Fund, BNY Mellon Mid Cap Stock Fund, BNY Mellon Small Cap Stock Fund, BNY Mellon U.S. Core Equity 130/30 Fund, BNY Mellon Focused Equity Opportunities Fund, BNY Mellon Small/Mid Cap Fund, BNY Mellon International Fund, BNY Mellon Emerging Markets Fund, BNY Mellon International Appreciation Fund, and BNY Mellon Balanced Fund, each a series of BNY Mellon FundsTrust (collectively “the Funds”), including the statements of investments, statement of financial futures (with respect to BNY Mellon International Appreciation Fund), statement of options written (with respect to BNY Mellon Focused Equity Opportunities Fund) and statement of securities sold short (with respect to BNY Mel lon U.S. Core Equity 130/30 Fund), as of August 31, 2010, and the related statements of operations for the year or periods then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, the statement of cash flows for the year then ended (with respect to the BNY Mellon U.S. Core Equity 130/30 Fund), and the financial highlights for each of the years or periods in the five-year period then ended.These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. With respect to the BNY Mellon International Appreciation Fund, the financial highlights for each of the years in the three-year period ended December 31, 2007 were audited by other independent registered public accountants whose report thereon, dated February 28, 2008, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board
(United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2010 by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BNY Mellon Large Cap Stock Fund, BNY Mellon Large Cap Market Opportunities Fund, BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund, BNY Mellon Income Stock Fund, BNY Mellon Mid Cap Stock Fund, BNY Mellon Small Cap Stock Fund, BNY Mellon U.S. Core Equity 130/30 Fund, BNY Mellon Focused Equity Opportunities Fund, BNY Mellon Small/Mid Cap Fund, BNY Mellon International Fund, BNY Mellon Emerging Markets Fund, BNY Mellon International Appreciation Fund, and BNY Mellon Balanced Fund, as of August 31, 2010, and the results of their operations, the changes in their net assets, its cash flows (with respect to the BNY Mellon U.S. Core Equity 130/30 Fund), and the financial highlights for the periods described in the first paragraph above, in conformity with U.S. general ly accepted accounting principles.
NewYork, NewYork
October 26, 2010
The Funds | 159 |
IMPORTANT TAX INFORMATION (Unaudited)
BNY Mellon Large Cap Stock Fund
For federal tax purposes, the fund designates the maximum amount allowable, but not less than $11,065,751 as ordinary income dividends paid during the year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund designates the maximum amount allowable but not less than 100% of ordinary income dividends paid during the year ended August 31, 2010 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Shareholders will receive notification in early 2011 of the percentage applicable to the preparation of their 2010 income tax returns.
BNY Mellon Income Stock Fund
For federal tax purposes, the fund designates the maximum amount allowable, but not less than $1,723,623 as ordinary income dividends paid during the year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund designates the maximum amount allowable but not less than 100% of ordinary income dividends paid during the year ended August 31, 2010 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Shareholders will receive notification in early 2011 of the percentage applicable to the preparation of their 2010 income tax returns.
BNY Mellon Mid Cap Stock Fund
For federal tax purposes, the fund designates the maximum amount allowable, but not less than $7,649,253 as ordinary income dividends paid during the year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund designates the maximum
amount allowable but not less than 100% of ordinary income dividends paid during the year ended August 31, 2010 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Shareholders will receive notification in early 2011 of the percentage applicable to the preparation of their 2010 income tax returns.
BNY Mellon Small Cap Stock Fund
For federal tax purposes, the fund designates the maximum amount allowable, but not less than $342,386 as ordinary income dividends paid during the year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund designates the maximum amount allowable but not less than 100% of ordinary income dividends paid during the year ended August 31, 2010 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Shareholders will receive notification in early 2011 of the percentage applicable to the preparation of their 2010 income tax returns.
BNY Mellon U.S. Core Equity 130/30 Fund
For federal tax purposes, the fund designates the maximum amount allowable, but not less than $307,480 as ordinary income dividends paid during the year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund designates the maximum amount allowable but not less than 100% of ordinary income dividends paid during the year ended August 31, 2010 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Shareholders will receive notification in early 2011 of the percentage applicable to the preparation of their 2010 income tax returns.
160
BNY Mellon Focused Equity Opportunities Fund
For federal tax purposes, the fund designates the maximum amount allowable, but not less than $24,000 as ordinary income dividends paid during the year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund designates the maximum amount allowable but not less than 100% of ordinary income dividends paid during the year ended August 31, 2010 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Also the fund designates the maximum amount allowable but not less than $.0002 per share as a short-term capital gain dividend in accordance with Sections 871(k)(2) and 881(e) of the Internal Revenue Code. Shareholders will receive notification in early 2011 of the percentage applicable to the preparation of their 201 0 income tax returns.
BNY Mellon Small/Mid Cap Fund
For federal tax purposes, the fund designates the maximum amount allowable, but not less than $176,607 as ordinary income dividends paid during the year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund designates the maximum amount allowable but not less than 100% of ordinary income dividends paid during the year ended August 31, 2010 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Also the fund designates the maximum amount allowable but not less than $.0337 per share as a short-term capital gain dividend in accordance with Sections 871(k)(2) and 881(e) of the Internal Revenue Code. Shareholders will receive notification in early 2011 of the percentage applicable to the preparation of their 20 10 income tax returns.
BNY Mellon International Fund
For federal tax purposes, the fund elects to provide each shareholder with their portion of the fund’s income sourced from foreign countries and taxes paid from foreign countries. The fund designates the maximum amount allowable but not less than $36,804,177 as income sourced from foreign countries for the fiscal year ended August 31, 2010 in accordance with Section 853(c)(2) of the Internal Revenue Code and also the fund designates the maximum amount allowable but not less than $2,773,547 as taxes paid from foreign countries for the fiscal year ended August 31, 2010 in accordance with Section 853(a) of the Internal Revenue Code. Where required by federal tax rules, shareholders will receive notification of their proportionate share of foreign sourced income and foreign taxes paid for the 2010 calendar year with Form 1099-DIV which will be mailed by early 2011. Also the fund designates the maximum amount allo wable, but not less than $30,009,971 as ordinary income dividends paid during the fiscal year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code.
BNY Mellon Emerging Markets Fund
For federal tax purposes, the fund elects to provide each shareholder with their portion of the fund’s income sourced from foreign countries and taxes paid from foreign countries. The fund designates the maximum amount allowable but not less than $41,676,901 as income sourced from foreign countries for the fiscal year ended August 31, 2010 in accordance with Section 853(c) (2) of the Internal Revenue Code and also the fund designates the maximum amount allowable but not less than $6,951,945 as taxes paid from foreign countries for the fiscal year ended August 31, 2010 in accordance with Section 853(a) of the Internal Revenue Code. Where required by federal tax rules, shareholders will receive notification of their proportionate share of foreign sourced income and foreign taxes paid for the
The Funds | 161 |
IMPORTANT TAX INFORMATION (Unaudited) (continued)
2010 calendar year with Form 1099-DIV which will be mailed by early 2011. Also the fund designates the maximum amount allowable, but not less than $11,055,178 as ordinary income dividends paid during the fiscal year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code.
calendar year with Form 1099-DIV which will be mailed by early 2011.Also the fund designates the maximum amount allowable, but not less than $7,648,881 as ordinary income dividends paid during the fiscal year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code.
BNY Mellon International Appreciation Fund
For federal tax purposes, the fund elects to provide each shareholder with their portion of the fund’s income sourced from foreign countries and taxes paid from foreign countries. The fund designates the maximum amount allowable but not less than $8,092,382 as income sourced from foreign countries for the fiscal year ended August 31, 2010 in accordance with Section 853(c)(2) of the Internal Revenue Code and also the fund designates the maximum amount allowable but not less than $712,703 as taxes paid from foreign countries for the fiscal year ended August 31, 2010 in accordance with Section 853(a) of the Internal Revenue Code. Where required by federal tax rules, shareholders will receive notification of their proportionate share of foreign sourced income and foreign taxes paid for the 2010
BNY Mellon Balanced Fund
For federal tax purposes, the fund designates the maximum amount allowable, but not less than $3,002,871 as ordinary income dividends paid during the year ended August 31, 2010 as qualified dividend income in accordance with Section 854(b)(1)(B) of the Internal Revenue Code. Also, the fund designates the maximum amount allowable but not less than 39.81% of ordinary income dividends paid during the year ended August 31, 2010 as eligible for the corporate dividends received deduction provided under Section 243 of the Internal Revenue Code in accordance with Section 854(b)(1)(A) of the Internal Revenue Code. Shareholders will receive notification in early 2011 of the percentage applicable to the preparation of their 2010 income tax returns.
162
INFORMATION ABOUT THE REVIEW AND APPROVAL |
OF EACH FUND’S INVESTMENT ADVISORY AGREEMENT (Unaudited) |
At a meeting of the Board of Trustees held on March 9-10, 2010, the Board considered the re-approval of the Trust’s Investment Advisory Agreement for another one year term, pursuant to which BNY Mellon Fund Advisers, a division of Dreyfus, provides the funds with investment advisory services.The Board members also considered the re-approval of the Trust’s Administration Agreement with The Bank of NewYork Mellon for another one year term, pursuant to which The Bank of New York Mellon provides the funds with administrative services.The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of NewYork Mellon pays Dreyfus for performing certain of these administrative services.The Board members who are not “interested persons” (as defined in the Act) of theTrust were assisted in their review by independent legal counsel and met with counsel i n executive session separate from representatives of Dreyfus.
Analysis of Nature, Extent and Quality of Services Provided to the Funds. The Board members received a presentation from representatives of Dreyfus regarding services provided to the funds, and discussed the nature, extent and quality of the services provided to the funds pursuant to the Investment Advisory Agreement. Dreyfus’ representatives reviewed the funds’ distribution of accounts, and noted the diversity of distribution of the funds and Dreyfus’ corresponding need for broad, deep and diverse resources to be able to provide ongoing shareholder services to each of the funds’ distribution channels. Dreyfus also provided the number of shareholder accounts in each fund, as well as each fund’s asset size.
The Board members also considered Dreyfus’ research and portfolio management capabilities and that Dreyfus also provides oversight of day-to-day fund operations and assistance in meeting legal and regulatory requirements, and Dreyfus’ extensive operational and compliance infrastructure. They also considered that The Bank of New York Mellon provides the funds with administrative and accounting services pursuant to theTrust’s Administration Agreement.The Board also considered Dreyfus’ broker-
age policies and practices, the standards applied in seeking best execution and Dreyfus’ policies and practices regarding soft dollars.
Comparative Analysis of the Funds’ Advisory Fees, Expense Ratios and Performance
The Board members reviewed reports prepared by Lipper, Inc., an independent provider of investment company data, which included information comparing each fund’s advisory fee and expense ratio with a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), in each case in the same category applicable to the fund, that were selected by Lipper. The Board members also reviewed reports prepared by Lipper which included information comparing each fund’s performance with that of a group of comparable funds (the “Performance Group”) composed of the same funds included in the Expense Group and with that of a broader group of funds (the “Performance Universe”), in each case in the same category applicable to the fund, that were selected by Lipper. Included in these reports were comparisons of contractual and actual advisory fee rates, total operating expenses and performance. Dreyfus also provided a comparison of each fund’s calendar year total returns to the performance of the fund’s benchmark. The Board was provided with a description of the methodology Lipper used to select each Expense Group and Expense Universe and each Performance Group and Performance Universe.
BNY Mellon Large Cap Stock Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile (above the median) of the Expense Group and in the second quartile (below the median) of the Expense Universe.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that for periods ended January 31, 2010, the
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fund’s performance was above the medians of the Performance Group and Performance Universe for the 1-year period and was below the medians for the 2-, 3-, 4- and 5-year periods.The Board also received a presentation from the fund’s primary portfolio manager regarding the factors which, over the past year, influenced the fund’s performance results.The Board expressed concern over the fund’s longer-term relative underperformance, and stated its expectation for continued improvement in the performance results in the future.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”) and by accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund (the “Similar Accounts”). Dreyfus’ representatives explained the nature of the Similar Accounts and the differences, from Dreyfus’ perspective, in providing services to such Similar Accounts as compared to managing and providing services to the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided. The Board members considered the relevance of the fee inform ation provided for the Similar Funds and Similar Accounts to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon U.S. Core Equity 130/30 Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the second quartile of the Expense Group and Expense Universe (below the respective medians of the Expense Group and Expense Universe).
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that the fund’s performance was equal to the medians of the Performance Group for the reported periods ended January 31, 2010, and was above the median of the Performance Universe for the 1-year period and was below the median for the 2-year period.
Representatives of Dreyfus noted that there were no other mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund. Representatives of Dreyfus reviewed with the Board members the fee paid to Dreyfus or its affiliates by an account managed or sub-advised by Dreyfus or its affiliates with a similar investment objective and similar policies and strategies as the fund (the “Similar Account”). Dreyfus’ representatives explained the nature of the Similar Account and the differences, from Dreyfus’ perspective, in providing services to such Similar Account as compared to managing and providing services to the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided. The Board members considered t he relevance of the fee information provided for the Similar Account to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon Balanced Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the first quartile of the Expense Group and Expense Universe (below the respective medians of the Expense Group and Expense Universe).
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The
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Board noted that the fund’s performance was above the medians of the Performance Group for the reported periods ended January 31, 2010, and was below the median of the Performance Universe for the 1-year period and was above the medians for the 2-, 3-, 4- and 5-year periods.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon Income Stock Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the second quartile of the Expense Group and Expense Universe (below the respective Expense Group and Expense Universe medians).
The Board also reviewed the results of the Performance Group and Performance Universe comparisons.The Board noted that for periods ended January 31, 2010, the fund’s performance was above the medians of the Performance Group and Performance Universe for the 1-year period and was below the medians for the 2-, 3-, 4- and 5-year periods.The Board received a presentation from a research analyst who works with the fund’s primary portfolio
manager regarding the factors which, over the past year, influenced the fund’s performance results. The Board expressed concern over the fund’s longer-term relative underperformance, and stated its expectation for continued improvement in the performance results in the future.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by a mutual fund managed by Dreyfus or its affiliates with a similar investment objective and similar policies and strategies, and included within the same Lipper category, as the fund (the “Similar Fund”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund. The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Fund to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon Mid Cap Stock Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile (equal to the median) of the Expense Group and in the second quartile (below the median) of the Expense Universe.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that for periods ended January 31, 2010, the fund’s performance was below the medians of the Performance Group for the reported periods, and was below the medians of the Performance Universe for the 1-, 2- and 4-year periods and was above the medians for the 3- and 5-year periods.The Board expressed concern over the fund’s relative underperformance for the
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reported periods versus its Performance Group, but noted the fund’s more favorable relative performance versus its Performance Universe for the 3- and 5-years periods. The Board also stated its expectation for improved performance results in the future.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon Small Cap Stock Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons. The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile (above the median) of the Expense Group and in the first quartile (below the median) of the Expense Universe.The Board also considered that BNY Mellon Fund Advisers has contractually agreed, until September 30, 2010, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of Class M shares and Investor shares (excluding taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) do not exceed 0.99% and 1.24%, respectively
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted the fund’s performance was below the
medians of the Performance Group and the Performance Universe for the reported periods ended January 31, 2010.The Board expressed concern over the fund’s relative underperformance for the reported periods. The Board considered management’s efforts to improve the fund’s performance by appointing a new primary portfolio manager of the fund, effective March 11, 2010. The Board also stated its expectation for improved performance results in the future.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon International Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that fund’s expense ratio ranked in the second quartile of the Expense Group and Expense Universe (below the respective medians of the Expense Group and Expense Universe). The Board considered the voluntary 15 basis point combined fee waiver and expense reimbursement arrangement undertaken by BNY Mellon Fund Advisers, effective June 1, 2008 (initially implemented for an indefinite period), which reduced the fund’s total expenses for the measurement period from 1.14% to 1.03% for Class
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M shares and from 1.27% to 1.16% for Investor shares for the fund’s fiscal year ended August 31, 2009.The Board agreed to terminate the fee waiver and expense reimbursement arrangement, effective June 1, 2009.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that for periods ended January 31, 2010, the fund’s performance was below the medians of the Performance Group for the 1-, 3-, 4- and 5-year periods and was above the median for the 2-year period, and was below the medians of the Performance Universe for 1-, 4- and 5-year periods and was above the medians for the 2- and 3-year periods.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon Emerging Markets Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the fourth quartile of the Expense Group and in the third quartile of the Expense Universe (above the respective medians of the Expense Group and Expense Universe).
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that for periods ended January 31, 2010, the fund’s performance was below the medians of the Performance Group for the 1- and 5-year periods and was above the medians for the 2-, 3- and 4-year periods, and was above the medians of the Performance Universe for the reported periods.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon International Appreciation Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons. The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the first quartile of the Expense Group and Expense Universe (below the respective medians of the Expense Group and Expense Universe).The Board also considered that BNY Mellon Fund Advisers has contractually agreed, until September 30, 2010, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither class of the fund’s shares (excluding shareholder services fees, taxes,
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interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) exceed 0.67%.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that for periods ended January 31, 2010, the fund’s performance was equal to the medians of the Performance Group for the 1- and 3-year periods, was above the median for the 2-year period and was below the medians for the 4-, 5- and 10-year periods, and was below the medians of the Performance Universe for 1-and 10-year periods and was above the medians for the 2-, 3-, 4- and 5-year periods.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by a mutual fund managed by Dreyfus or its affiliates with a similar investment objective and similar policies and strategies, and included within the same Lipper category, as the fund (the “Similar Fund”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided. The Board members considered the relevance of the fee information provided for the Similar Fund to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
Analysis of Profitability and Economies of Scale. Dreyfus’ representatives reviewed the dollar amount of expenses allocated and profit received by Dreyfus and its affiliates with respect to each fund and the method used to determine such expenses and profit.The Board previously had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus mutual fund complex. The Board members also had been informed that the methodology had been reviewed by an independent registered public accounting firm
which, like the consultant, found the methodology to be reasonable.The consulting firm also analyzed where any economies of scale might emerge in connection with the management of the funds.The Board members evaluated the profitability analysis in light of the relevant circumstances for each fund, including any decline in assets. The Board members also considered potential benefits to Dreyfus and its affiliates, including BNY Mellon Fund Advisers, from acting as investment adviser to the funds, including soft dollar arrangements with respect to trading each fund’s portfolio.
It was noted that the Board members should consider Dreyfus’ profitability with respect to each fund as part of their evaluation of whether the fees under the Investment Advisory Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services. It was noted that the profitability percentage for managing each fund was within ranges determined by appropriate court cases to be reasonable given the services rendered and that the profitability percentage for managing each fund was not unreasonable given the services provided. The Board also noted the fee waiver and expense reimbursement arrangements pertaining to BNY Mellon Small Cap Stock Fund and BNY Mellon International Appreciation Fund and their effect on the profitability of Dreyfus.
At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the continuation of the Trust’s Investment Advisory Agreement with respect to the funds. Based on the discussions and considerations as described above, the Board made the following conclusions and determinations with respect to the funds:
The Board concluded that the nature, extent and quality of the services provided by Dreyfus to each fund are adequate and appropriate.
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With respect to BNY Mellon Large Cap Stock Fund and BNY Mellon Income Stock Fund, while the Board was concerned with each fund’s longer-term relative underperformance for the reported periods, it considered the explanations of the respective fund’s portfolio manager and research analyst for the less competitive performance, and noted its expectation for continued improvement in the performance results in the future for each fund.
With respect to BNY Mellon Small Cap Stock Fund, while the Board was concerned with the fund’s rela- tive underperformance for the reported periods, the Board considered management’s efforts to improve the fund’s performance by appointing a new primary portfolio manager of the fund, effective March 11, 2010, and stated its expectation for improved perfor- mance results in the future.
With respect to BNY Mellon U.S. Core Equity 130/30 Fund and BNY Mellon International Appreciation Fund, the Board was generally satisfied with each fund’s relative performance.
With respect to BNY Mellon Mid Cap Stock Fund, while the Board was concerned with the fund’s rela- tive underperformance for the reported periods versus its Performance Group, it noted the fund’s more favor- able relative performance versus its Performance Universe for the 3- and 5-years periods, and stated its expectation for improved performance results in the future.
With respect to BNY Mellon International Fund, the Board was generally satisfied with the fund’s overall relative performance.
With respect to BNY Mellon Emerging Markets Fund, the Board was satisfied with the fund’s overall performance.
With respect to BNY Mellon Balanced Fund, the Board was satisfied with the fund’s relative performance.
The Board concluded that the fee paid to Dreyfus by each fund was reasonable in light of the considerations
- described above.
The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in con- nection with the management of the funds had been adequately considered by Dreyfus in connection with the advisory fee rate charged to each fund, and that, to the extent in the future it were to be determined that material economies of scale had not been shared with a fund, the Board would seek to have those economies of scale shared with the fund.
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 Trust’s Investment Advisory Agreement and Administration Agreement with respect to the funds was in the best interests of each fund and its respective shareholders.
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At a meeting of the Board of Trustees held on September 15, 2009, the Board considered the approval of the Trust’s Investment Advisory Agreement with respect to BNY Mellon Focused Equity Opportunities Fund and BNY Mellon Small/Mid Cap Fund through each fund’s renewal date of June 1, 2011, pursuant to which BNY Mellon Fund Advisers, a division of Dreyfus, will provide each fund with investment advisory services. The Board members also considered the approval of the Trust’s Administration Agreement with The Bank of New York Mellon (“BNY Mellon”) for a one year term, pursuant to which BNY Mellon will provide each fund with administrative services. BNY Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which BNY Mellon pays Dreyfus for performing certain of these administrative services.The Board members who are not “interested persons” (as defined in the Act) of the Trust were assisted in their review by independent legal counsel and met with counsel in executive session separate
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from representatives of Dreyfus.
Analysis of Nature, Extent and Quality of Services to be Provided to the Funds.The Board members were referred to information previously provided to them in a presentation from representatives of Dreyfus regarding services provided to the other funds comprising the Trust and discussed the nature, extent and quality of the services to be provided to each fund pursuant to the Investment Advisory Agreement.The Board members also had been provided with and had discussed at previous meetings information regarding the distribution of accounts and the diversity of distribution of the other funds of theTrust and Dreyfus’ corresponding need for broad, deep and diverse resources to be able to provide ongoing shareholder services to each of those funds’ distribution channels.
The Board members also considered Dreyfus’ research and portfolio management capabilities and that Dreyfus also will provide oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements, and Dreyfus’ extensive administrative, accounting and compliance infrastructure. The Board also considered Dreyfus’ brokerage policies and practices, the standards applied in seeking best execution and Dreyfus’ policies and practices regarding soft dollars.
Comparative Analysis of the Funds’ Performance, Advisory Fees and Expense Ratios.As each fund had not yet commenced operations, the Board members were not able to review each fund’s performance.The Board discussed with representatives of Dreyfus each fund’s investment objective and policies. The Board also received information pertaining to the qualifications of each fund’s primary portfolio manager.
BNY Mellon Focused Equity Opportunities Fund
The Board members reviewed comparisons of the fund’s proposed advisory fee to those of funds in the Lipper Large-Cap Core Funds category. The Board members noted that the fund’s proposed contractual advisory fee was above the average and the median advisory or
adviser/administration fees of the funds in the category (both with and without any fee waivers and reimbursements).The Board members also noted that the Lipper Large-Cap Core Funds category is not limited to “focused” funds and that the fund’s proposed contractual advisory fee was below the average and the median advisory or adviser/administration fees of the funds in the comparison group derived by Dreyfus of other “focused” funds in the Lipper Large-Cap Core Funds category.The Board considered that BNY Mellon Fund Advisers (Dreyfus) will contractually agree, until at least January 1, 2011, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither share class (excluding shareholder services fees, taxes, interest, brokerage commissions, interest, commitment fees on borrowings and extraordinary expenses) exceed 0.90%.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates included in the Lipper Large-Cap Core Funds category (the “Similar Funds”) and by separate accounts and/or other investment products that are managed by Dreyfus with the same investment mandate as the fund (the “Similar Accounts”) and discussed the relationship of the advisory fee to be paid in light of the services to be provided to the fund. The Board members considered the relevance of the fee information provided for the Similar Funds and the Similar Accounts to evaluate the appropriateness and reasonableness of the fund’s advisory fee
BNY Mellon Small/Mid Cap Fund
The Board members reviewed comparisons of the fund’s proposed advisory fee to those of funds in the Lipper Mid-Cap Growth Funds category.The Board members noted that the fund’s proposed contractual advisory fee was above the average, and below the median, advisory or adviser/administration fees of the funds in the category (both with and without any fee waivers and reimbursements). The Board considered that BNY Mellon Fund Advisers (Dreyfus) will contractually agree, until at
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least January 1, 2011, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither share class (excluding shareholder services fees, taxes, interest, brokerage commissions, interest, commitment fees on borrowings and extraordinary expenses) exceed 0.95%.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates included in the Lipper Mid-Cap Growth Funds category (the “Similar Funds”) and by separate accounts and/or other investment products that are managed by Dreyfus with the same investment mandate as the fund (the “Similar Accounts”) and discussed the relationship of the advisory fee to be paid in light of the services to be provided to the fund. The Board members considered the relevance of the fee information provided for the Similar Funds and the Similar Accounts to evaluate the appropriateness and reasonableness of the fund’s advisory fee.
Analysis of Profitability and Economies of Scale.As each fund had not yet commenced operations, Dreyfus’ representatives were not able to review the dollar amount of expenses allocated and profit received by Dreyfus and its affiliates. The Board considered potential benefits to Dreyfus and its affiliates, including BNY Mellon Fund Advisers, from acting as investment adviser to each fund, including soft dollar arrangements with respect to trading each fund’s portfolio. The Board also considered whether each fund would be able to participate in any economies of scale that Dreyfus may experience in the event that each fund attracts a large amount of assets.The Board members noted the uncertainty of the estimated asset levels, and discussed the renewal requirements for advisory agreements and their ability to review the advisor y fees annually after an initial term of the Investment Advisory Agreement with respect to each fund.
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At a meeting of the Board of Trustees held on June 8, 2010, the Board considered the approval of the Trust’s
Investment Advisory Agreement with BNY Mellon Fund Advisers, a division of Dreyfus, and the Sub-Investment Advisory Agreement between BNY Mellon Fund Advisers and Walter Scott & Partners Limited (“Walter Scott”) (together, the “Agreements”) with respect to BNY Mellon Large Cap Market Opportunities Fund and BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund through each fund’s renewal date of June 1, 2012, pursuant to which BNY Mellon Fund Advisers and Walter Scott will provide each fund with investment advisory services. The Board members also considered the approval of the Trust’s Administration Agreement with The Bank of NewYork Mellon for a one year term, pursuant to which The Bank of New York Mellon will provide each fund with administrative services.The Bank of NewYork Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of NewYor k Mellon pays Dreyfus for performing certain of these administrative services.The Board members who are not “interested persons” (as defined in the Act) of the Trust were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of Dreyfus.
Analysis of Nature, Extent and Quality of Services to be Provided to the Funds. The Board members were referred to information previously provided to them in a presentation from representatives of Dreyfus regarding services provided to the other funds comprising theTrust and discussed the nature, extent and quality of the services to be provided to each fund pursuant to the Agreements.The Board members also had been provided with and had discussed at previous meetings information regarding the distribution of accounts and the diversity of distribution of the other funds of the Trust and Dreyfus’ corresponding need for broad, deep and diverse resources to be able to provide ongoing shareholder services to each of those funds’ distribution channels.
The Board members also considered Dreyfus’ and Walter Scott’s research and portfolio management capabilities,
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the division of responsibilities between Dreyfus and Walter Scott and that Dreyfus also will provide oversight of day-to-day fund operations and assistance in meeting legal and regulatory requirements. The Board members also considered Dreyfus’ extensive operational and compliance infrastructure, as well as Dreyfus’ supervisory activities overWalter Scott.They also considered thatThe Bank of New York Mellon will provide the funds with administrative and accounting services pursuant to the Trust’s Administration Agreement. The Board also considered the manner in which portfolio transactions would be executed for each fund and Dreyfus’ and Walter Scott’s brokerage policies and practices, the standards applied in seeking best execution and Dreyfus’ andWalter Scott’s policies and practices regarding soft dollars.
Comparative Analysis of the Funds’ Performance, Advisory Fees and Expense Ratios.As each fund had not yet commenced operations, the Board members were not able to review each fund’s performance.The Board discussed with representatives of Dreyfus each fund’s investment objective and policies. The Board also received information pertaining to the qualifications of each fund’s primary portfolio managers.
BNY Mellon Large Cap Market Opportunities Fund
The Board members reviewed comparisons of the fund’s proposed advisory fee to those of funds in the Lipper Large-Cap Growth Funds category.The Board members noted that the fund’s proposed contractual advisory fee was above the average, and equal to the median, advisory fee (with any fee waivers and reimbursements) of the funds in the category and the proposed contractual advisory and administration fees were above the average and median advisory or adviser/administration fees of a smaller group of similar funds in the category (without any fee waivers and reimbursements).The Board considered that BNY Mellon Fund Advisers (Dreyfus) will contractually agree, until at least January 1, 2012, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither share class (including indirect fees and expenses of the other series
of the Trust in which the fund may invest, but excluding shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) exceed 1.25%.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included in the same Lipper category, as the fund (the “Similar Funds”) and by accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund (the “Similar Accounts”). Dreyfus’ representatives explained the nature of the Similar Accounts and the differences, from Dreyfus’ perspective, in providing services to such SimilarAccounts as compared to managing and providing services to the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds and the Similar Accounts to evaluate the appropriateness and reasonableness of the fund’s advisory fee.
The Board considered the fee toWalter Scott in relation to the fee to be paid to Dreyfus by the fund and the respective services to be provided by Walter Scott and Dreyfus.The Board also noted that Walter Scott’s fee is paid by Dreyfus (out of its fee from the fund) and not the fund.
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund
The Board members reviewed comparisons of the fund’s proposed advisory fee to those of funds in the Lipper Large-Cap Core Funds category. The Board members noted that the fund’s proposed contractual advisory fee was above the average and the median advisory fee (with any fee waivers and reimbursements) of the funds in the category and the proposed contractual advisory and administration fees were above the average and median advisory or adviser/administration fees of a smaller group of similar funds in the category (without any fee waivers
172
and reimbursements). The Board considered that BNY Mellon Fund Advisers (Dreyfus) will contractually agree, until at least January 1, 2012, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither share class (including indirect fees and expenses of the other series of theTrust in which the fund may invest, but excluding shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) exceed 1.15%.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included in the same Lipper category, as the fund (the “Similar Funds”) and by accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund (the “Similar Accounts”). Dreyfus’ representatives explained the nature of the Similar Accounts and the differences, from Dreyfus’ perspective, in providing services to such Similar Accounts as compared to managing and providing services to the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided. The Board members considered the relevance of the fee informatio n provided for the Similar Funds and the Similar Accounts to evaluate the appropriateness and reasonableness of the fund’s advisory fee.
The Board considered the fee toWalter Scott in relation to the fee to be paid to Dreyfus by the fund and the respective services to be provided by Walter Scott and Dreyfus.The Board also noted that Walter Scott’s fee is paid by Dreyfus (out of its fee from the fund) and not the fund.
Analysis of Profitability and Economies of Scale. As each fund had not yet commenced operations, Dreyfus’ representatives were not able to review the dollar amount of expenses allocated and profit received by Dreyfus and its affiliates. The Board considered potential benefits to Dreyfus and its affiliates, including BNY Mellon Fund
Advisers, from acting as investment adviser to each fund and to Walter Scott from acting as sub-adviser to each fund, including soft dollar arrangements with respect to trading each fund’s portfolio. The Board also considered whether each fund would be able to participate in any economies of scale that Dreyfus may experience in the event that each fund attracts a large amount of assets.The Board members noted the uncertainty of the estimated asset levels, and discussed the renewal requirements for advisory agreements and their ability to review the advisory fees annually after the initial term of the Agreements with respect to each fund. Since Dreyfus, and not the fund, will pay Walter Scott pursuant to the Sub-Investment Advisory Agreement, the Board did not consider Walter Scott’s profitability to be relevant to its deliberations.
At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to approving the Trust’s Agreements with respect to each fund. Based on the discussions and considerations as described above, the Board made the following conclusions and determinations:
The Board concluded that the nature, extent and qual- ity of the services to be provided by Dreyfus andWalter Scott to each fund are adequate and appropriate.
The Board concluded that the fee to be paid by each fund to Dreyfus was reasonable in light of the services to be provided, comparative advisory fee information and benefits anticipated to be derived by Dreyfus and its affiliates, including BNY Mellon Fund Advisers, from its relationship with each fund, and that the sep- arate fees to be paid by Dreyfus to Walter Scott are reasonable and appropriate.
The Board determined that because the funds had not commenced operations, economies of scale were not a factor, and that, to the extent in the future it were to be determined that material economies of scale had not been shared with the relevant fund, the Board would seek to have those economies of scale shared with the fund.
The Funds | 173 |
INFORMATION ABOUT THE REVIEW AND APPROVAL OF EACH FUND’S |
INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued) |
The Board members considered these conclusions and determinations, and, without any one factor being dispositive, the Board determined that approval of the Trust’s Investment Advisory Agreement, Sub-Investment Advisory Agreement and Administration Agreement with respect to the funds was in the best interests of each fund and its prospective shareholders.
At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to approving the Trust’s Investment Advisory Agreement with respect to each fund. Based on the discussions and considerations as described above, the Board made the following conclusions and determinations:
The Board concluded that the nature, extent and quality of the services to be provided by Dreyfus to each fund are adequate and appropriate.
The Board concluded that the fee to be paid by each fund to Dreyfus was reasonable in light of the services to be provided, comparative advisory fee information and benefits anticipated to be derived by Dreyfus and its affiliates, including BNY Mellon Fund Advisers, from its relationship with each fund.
The Board determined that because the funds had not commenced operations, economies of scale were not a factor, and that, to the extent in the future it were to be determined that material economies of scale had not been shared with the relevant fund, the Board would seek to have those economies of scale shared with the fund.
The Board members considered these conclusions and determinations, and, without any one factor being dispositive, the Board determined that approval of the Trust’s Investment Advisory Agreement and Administration Agreement with respect to the funds was in the best interests of each fund and its respective shareholders.
174
BOARD MEMBERS INFORMATION (Unaudited)
The Funds | 175 |
BOARD MEMBERS INFORMATION (Unaudited) (continued)
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, NewYork 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-645-6561. For individual account holders for Private Wealth Management clients, please contact your account officer or call 1-888-281-7350.
176
OFFICERS OF THE TRUST (Unaudited)
The Funds | 177 |
OFFICERS OF THE TRUST (Unaudited) (continued)
178
For More Information
Ticker Symbols: | |||
BNY Mellon Large Cap Stock Fund | Class M: MPLCX | Investor: MILCX | |
BNY Mellon Large Cap Market Opportunities Fund | Class M: MMOMX | Investor: MMOIX | |
BNY Mellon Tax-Sensitive Large Cap Multi-Strategy Fund | Class M: MTSMX | Investor: MTSIX | |
BNY Mellon Income Stock Fund | Class M: MPISX | Investor: MIISX | |
BNY Mellon Mid Cap Stock Fund | Class M: MPMCX | Investor: MIMSX | Dreyfus Premier: MMSPX |
BNY Mellon Small Cap Stock Fund | Class M: MPSSX | Investor: MISCX | |
BNY Mellon U.S. Core Equity 130/30 Fund | Class M: MUCMX | Investor: MUCIX | |
BNY Mellon Focused Equity Opportunities Fund | Class M: MFOMX | Investor: MFOIX | |
BNY Mellon Small/Mid Cap Fund | Class M: MMCMX | Investor: MMCIX | |
BNY Mellon International Fund | Class M: MPITX | Investor: MIINX | |
BNY Mellon Emerging Markets Fund | Class M: MEMKX | Investor: MIEGX | |
BNY Mellon International Appreciation Fund | Class M: MPPMX | Investor: MARIX | |
BNY Mellon Balanced Fund | Class M: MPBLX | Investor: MIBLX |
Telephone Wealth Management (WM) Clients, please contact your Account Officer or call 1-888-281-7350. Brokerage Clients of BNY Mellon Wealth Advisors (BNYMWA), please contact your financial representative or call 1-800-830-0549, Option 2. Individual Account holders, please call Dreyfus at 1-800-645-6561.
Mail WM Clients, write to your Account Officer, c/o The Bank of New York Mellon, One Mellon Bank Center, Pittsburgh, PA 15258 BNYMWA Brokerage Clients, write to your financial representative, P.O. Box 9012, Hicksville, NY 11802–9012 Individual Account Holders, write to: BNY Mellon Funds, P.O. Box 55268, Boston, MA 02205–8502
The funds file their 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 funds’ 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 funds use to determine how to vote proxies relating to portfolio securities, and information regarding how the funds voted these proxies for the most recent 12-month period ended June 30 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.
© 2010 MBSC Securities Corporation
MFTAR0810-EQ
The BNY Mellon Funds
BNY Mellon Bond Fund |
BNY Mellon Intermediate Bond Fund |
BNY Mellon Intermediate U.S. Government Fund |
BNY Mellon Short-Term U.S. Government Securities Fund |
ANNUAL REPORT | August 31, 2010 |
Contents | |
The Funds | |
Letter from the President | 2 |
Discussion of Funds’ Performance | |
BNY Mellon Bond Fund | 3 |
BNY Mellon | |
Intermediate Bond Fund | 6 |
BNY Mellon Intermediate | |
U.S. Government Fund | 9 |
BNY Mellon Short-Term U.S. | |
Government Securities Fund | 12 |
Understanding Your Fund’s Expenses | 15 |
Comparing Your Fund’s Expenses | |
With Those of Other Funds | 15 |
Statements of Investments | 16 |
Statements of Assets and Liabilities | 32 |
Statements of Operations | 33 |
Statements of Changes in Net Assets | 34 |
Financial Highlights | 37 |
Notes to Financial Statements | 45 |
Report of Independent Registered | |
Public Accounting Firm | 55 |
Important Tax Information | 56 |
Information About the Review | |
and Approval of Each Fund’s | |
Investment Advisory Agreement | 57 |
Board Members Information | 62 |
Officers of the Trust | 64 |
For More Information
Back cover
The views expressed herein are current to the date of this report. These views and the composition of the funds’ portfolios are subject to change at any time based on market and other conditions.
Not FDIC-Insured
Not Bank-Guaranteed
May Lose Value
The Funds
LETTER FROM
THE PRESIDENT
Dear Shareholder:
We are pleased to present to you this annual report for the BNY Mellon Funds Trust, covering the reporting period ended August 31, 2010.
As the summer of 2010 cooled off, so did the pace of the U.S. and global economic recoveries. Former engines of growth appeared to stall as large parts of the developed world remained indebted and burdened by weak housing markets.While some emerging markets have posted more impressive growth rates, their developing economies have not yet provided a meaningful boost to global economic activity.The result has been a subpar U.S. recovery with stubbornly high unemployment rates, low levels of consumer confidence and muted corporate investment.
Nonetheless, we do not expect a return to recessionary conditions, thanks to record low short-term interest rates and quantitative easing from the Federal Reserve Board. However, interest rates have little room for further declines, clouding the outlook for the U.S. bond market. U.S. government bonds, especially Treasury securities, appear to offer limited value at current low yields, but we have identified a number of opportunities among emerging market debt securities and U.S. corporate bonds based on improving balance sheets and the global search for yield. As always, your portfolio manager is best-suited to help you evaluate and adjust your asset allocations and potentially seize opportunities in this slow-growth economic context.
For information about how each fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance for each fund.
Thank you for your continued confidence and support.
Christopher E. Sheldon
President
BNY Mellon Funds Trust
September 15, 2010
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by John F. Flahive, Portfolio Manager and Director of Fixed Income
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Bond Fund’s Class M shares produced a total return of 7.84%, and Investor shares produced a yield of 7.60%.1 In comparison, the fund’s benchmark, the Barclays Capital U.S. Aggregate Index (the “Index”), produced a total return of 9.18%.2
Although higher yielding sectors of the bond market rallied over much of the reporting period, the advance was interrupted during the spring of 2010, when investors began to question the sustainability of the economic recovery. Conversely, traditional safe havens such as U.S. government securities gained value in the spring but underperformed earlier and later in the reporting period. The fund produced lower returns than its benchmark for the reporting period overall, primarily due to a relatively conservative investment posture.
The Fund’s Investment Approach
The fund seeks to maximize total return consisting of capital appreciation and current income.To pursue its goal, the fund actively manages bond market and maturity exposure and invests at least 80% of its assets in bonds, such as U.S. Treasury and government agency bonds, corporate bonds, mortgage-related securities and foreign corporate and government bonds. The fund’s investments in bonds must be rated investment-grade quality at the time of purchase3 or, if unrated, deemed of comparable quality by the investment adviser. Generally, the average effective duration of the fund’s portfolio will not exceed eight years.
Renewed Uncertainty Derailed a Bond Market Rally
An economic recovery persisted from September 2009 through April 2010 as manufacturing activity increased, housing prices appeared to bottom and the labor market showed early evidence of modest improvement.The economic rebound was sparked, in part, by historically low short-term interest rates from the Federal Reserve Board (the “Fed”) and a massive stimulus program adopted by the U.S. government. Improving economic conditions helped lift the prices of higher yielding fixed-income securities, including investment-grade corporate bonds and commercial mortgage-backed securities. In contrast, U.S. government securities lagged market averages as investors favored riskier investments.
Investor sentiment changed sharply in May, when a number of developments brought the economic recovery into question. Certain European nations found themselves unable to finance heavy debt loads, requiring intervention from the International Monetary Fund and other members of the European Union. Meanwhile, surging property values in China kindled local inflation fears, and investors grew concerned that potential remedial measures might constrain a key engine of global growth.The United States also encountered greater economic uncertainty when employment and housing data sent mixed signals regarding the strength and sustainability of the economic recovery.
Although these developments caused riskier bonds to decline and traditional safe havens to gain value in the spring, higher yielding market sectors subsequently resumed their advance, helping corporate bonds and commercial mortgages rank among the market’s top performers for the reporting period overall.
The Funds 3
DISCUSSION OF FUND PERFORMANCE (continued)
Fund Strategies Cushioned Volatility but Dampened Returns
Because we were concerned that unexpected economic developments might cause interest rates to rise from historical lows, we maintained the fund’s average duration throughout the reporting period in a short position relative to the benchmark. While this strategy helped dampen the impact of heightened market volatility in the spring, it prevented the fund from benefiting fully from better performance among longer-term bonds for the reporting period overall.
In addition, our security selection strategy was relatively defensive, focusing on high-quality, shorter-term securities. For example, while the fund held overweighted positions in investment-grade corporate bonds and commercial mortgage-backed securities, we generally favored shorter maturities at a time when longer-term bonds in both sectors gained more value.
We maintained underweighted exposure in U.S. government securities due to low prevailing yields. In addition, the fund held no high yield securities or emerging-markets debt, which fared particularly well during the reporting period.The fund fared better with its holdings of residential mortgage-backed securities, where we emphasized pass-through securities issued by U.S. government agencies.
Maintaining a Disciplined and Diversified Approach
As of the reporting period’s end, we believe that the U.S. economy is unlikely to fall into another recession, but the continued expansion probably will remain slower and choppier than most previous recoveries. In addition, while mixed economic signals could lead to bouts of heightened market volatility, we do not expect the Fed to raise short-term interest rates anytime soon. Still, our analysis of risks and potential rewards in the U.S. bond market suggests that a cautious investment posture —including a focus on shorter-term, higher-quality securities — is the more prudent course in today’s uncertain economic and market environments.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes, and rate increases can cause price declines. | |
The fund may use derivative instruments, such as options, futures and options | |
on futures, forward contracts and swaps.A small investment in derivatives could | |
have a potentially large impact on the fund’s performance.The use of | |
derivatives involves risks different from, or possibly greater than, the risks | |
associated with investing directly in the underlying assets. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price, yield and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. Return figures provided reflect the | |
absorption of certain fund expenses by BNY Mellon Fund Advisors pursuant | |
to an agreement in effect through September 30, 2010, at which time it | |
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 Barclays Capital 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. | |
Investors cannot invest directly in any index. | |
3 | The fund may continue to own investment-grade bonds (at the time of |
purchase), which are subsequently downgraded to below investment grade. |
4
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Bond Fund Class M shares and the Barclays Capital U.S. Aggregate Index
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 1/1/87 | 7.84% | 5.81% | 5.94% | — |
Investor shares | 7/11/01 | 7.60% | 5.56% | — | 5.24% |
Barclays Capital U.S. Aggregate Index†† | 9/30/00 | 9.18% | 5.96% | — | 6.46% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Bond Fund on 8/31/00 to a $10,000 investment made in the |
Barclays Capital U.S.Aggregate Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund (and those of two other CTFs) were transferred to the fund. Please note that the performance of the fund’s |
Class M shares represents the performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the |
actual performance of the CTF the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the |
performance of the fund’s Class M shares thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore |
was not subject to certain investment restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher |
than those estimated prior to the conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is a widely accepted, unmanaged index of |
corporate, government and government agency debt instruments, mortgage-backed securities, and asset-backed securities with an average maturity of 1-10 years. Unlike |
a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund |
performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
The Funds | 5 |
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by John F. Flahive, Portfolio Manager and Director of Fixed Income
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Intermediate Bond Fund’s Class M shares produced a total return of 6.52%, and Investor shares produced a yield of 6.26%.1 In comparison, the fund’s benchmark, the Barclays Capital Intermediate Government/Credit Bond Index (the “Index”), produced a total return of 8.18%.2
Although higher yielding sectors of the bond market rallied over much of the reporting period, the advance was interrupted during the spring of 2010, when investors began to question the sustainability of the economic recovery. Conversely, traditional safe havens such as U.S. government securities gained value in the spring but underperformed earlier and later in the reporting period.The fund produced lower returns than its benchmark for the reporting period overall, primarily due to a relatively conservative investment posture.
The Fund’s Investment Approach
The fund seeks total return (consisting of capital appreciation and current income). To pursue its goal, the fund actively manages bond market and maturity exposure and invests at least 80% of its assets in bonds, such as U.S. government and agency bonds, corporate bonds, mortgage-related securities, foreign corporate and government bonds and municipal bonds. The fund’s investments in bonds must be rated investment grade at the time of purchase3 or, if unrated, deemed of comparable quality by the investment adviser. Generally, the fund’s average effective portfolio maturity will be between three and 10 years, and the average effective duration of the fund’s portfolio will be between 2.5 and 5.5 years.
When managing the fund, we use a disciplined process to select securities and manage risk. We generally choose bonds based on yield, credit quality, the level of interest rates and inflation, general economic and financial trends and our outlook for the securities markets. Our management process also includes computer modeling and scenario testing of possible changes in market conditions.
Renewed Uncertainty Derailed a Bond Market Rally
An economic recovery persisted from September 2009 through April 2010 as manufacturing activity increased and housing prices appeared to bottom.The economic rebound was sparked, in part, by historically low short-term interest rates and a massive stimulus program adopted by the U.S. government. Improving economic conditions helped lift the prices of higher yielding, intermediate-term bonds, including investment-grade corporate bonds and commercial mortgage-backed securities. In contrast, U.S. government securities lagged market averages as investors favored riskier investments.
Investor sentiment changed sharply in May, when a number of developments brought the economic recovery into question. Certain European nations found themselves unable to finance heavy debt loads, requiring intervention from the International Monetary Fund and other members of the European Union. Meanwhile, surging property values in China kindled local inflation fears, and investors grew concerned that potential remedial measures might constrain a key engine of global growth. The United States also encountered greater economic uncertainty when employment and housing data sent mixed signals.
Although these developments caused riskier bonds to decline and traditional safe havens to gain value in the spring, higher yielding market sectors subsequently resumed their advance, helping corporate bonds and commercial mortgages rank among the market’s top performers for the reporting period overall.
6
Fund Strategies Cushioned Volatility but Dampened Returns
Because we were concerned that unexpected economic developments might cause interest rates to rise from historical lows, we maintained the fund’s average duration in a short position relative to the benchmark throughout the reporting period.While this strategy helped dampen the impact of heightened market volatility in the spring, our focus on the five- to seven-year maturity spectrum prevented the fund from benefiting fully from better performance among longer-term bonds for the reporting period overall.
Our security selection strategy produced better results, as we focused on high-quality securities in each of the market sectors represented in the Index. In addition, the fund held out-of-index positions in residential and commercial mortgage-backed securities, which produced higher returns than U.S. Treasury securities with comparable maturities.
We maintained underweighted exposure in U.S. government securities due to low prevailing yields. In addition, the fund held no high yield securities or emerging-markets debt, which fared particularly well during the reporting period.
Maintaining a Disciplined and Diversified Approach
As of the reporting period’s end, we believe that the U.S. economy is unlikely to fall into another recession, but the continued expansion probably will remain slower and choppier than most previous recoveries. In addition, while mixed economic signals could lead to bouts of heightened market volatility, we do not expect the Federal Reserve Board to raise short-term interest rates anytime soon. Still, our analysis of risks and potential rewards in the U.S. bond market suggests that a cautious investment posture — including a relatively short average duration and a focus on higher-quality securities — is the more prudent course in today’s uncertain economic and market environments.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes, and rate increases can cause price declines. | |
The fund may use derivative instruments, such as options, futures and | |
options on futures, forward contracts and swaps.A small investment in | |
derivatives could have a potentially large impact on the fund’s performance. | |
The use of derivatives involves risks different from, or possibly greater than, | |
the risks associated with investing directly in the underlying assets. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
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. | |
2 | SOURCE: LIPPER INC. – Reflects reinvestment of dividends and, |
where applicable, capital gain distributions. The Barclays Capital | |
Intermediate Government/Credit Bond Index is a widely accepted, | |
unmanaged index of government and credit bond market performance | |
composed of U. S. government, Treasury and agency securities, fixed- | |
income securities and nonconvertible investment-grade credit debt, with an | |
average maturity of 1-10 years. Index return does not reflect the fees and | |
expenses associated with operating a mutual fund. Investors cannot invest | |
directly in any index. | |
3 | The fund may continue to own investment-grade bonds (at the time of |
purchase), which are subsequently downgraded to below investment grade. |
The Funds 7
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Intermediate Bond Fund Class M shares and the Barclays Capital Intermediate Government/Credit Bond Index
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 1/1/87 | 6.52% | 5.52% | 5.55% | — |
Investor shares | 7/11/01 | 6.26% | 5.25% | — | 4.85% |
Barclays Capital Intermediate | |||||
Government/Credit Bond Index†† | 9/30/00 | 8.18% | 5.67% | — | 6.05% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Intermediate Bond Fund on 8/31/00 to a $10,000 investment made in |
the Barclays Capital Intermediate Government/Credit Bond Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund were transferred to the fund. Please note that the performance of the fund’s Class M shares represents the |
performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the actual performance of the CTF |
the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the performance of the fund’s Class M shares |
thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore was not subject to certain investment |
restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher than those estimated prior to the |
conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is a widely accepted, unmanaged index of |
Government and credit bond market performance composed of U.S. Government,Treasury and Agency securities, fixed-income securities and nonconvertible investment- |
grade credit debt, with an average maturity of 1-10 years. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest |
directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section |
of the prospectus and elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
8
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by John F. Flahive, Portfolio Manager and Director of Fixed Income
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Intermediate U.S. Government Fund’s Class M shares achieved a total return of 5.03%, and the fund’s Investor shares achieved a total return of 4.87%.1 In comparison, the fund’s benchmark, the Barclays Capital Intermediate Government Index (the “Index”), achieved a total return of 6.50%.2
After lagging higher yielding bonds over much of the reporting period, short-term U.S. government securities rallied during the spring of 2010, when investors questioned the sustainability of the U.S. and global economic recoveries.The fund produced lower returns than its benchmark for the reporting period, primarily due to a relatively short average duration that prevented fuller participation in the rally.
The Fund’s Investment Approach
The fund seeks to provide as high a level of current income as is consistent with the preservation of capital. This objective may be changed without shareholder approval.To pursue its goal, the fund normally invests at least 80% of its assets in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities.
The fund allocates broadly among U.S.Treasury obligations, direct U.S. government agency debt obligations and U.S. government agency mortgage-backed securities, including mortgage pass-through securities and collateralized mortgage obligations (CMOs).The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government. Under normal market conditions, the fund maintains an average effective portfolio maturity between three and 10 years.The fund attempts to manage interest rate risk by adjusting its duration.The fund may invest in individual bonds of any maturity or duration and does not expect to target any specific range of duration.
Renewed Uncertainty Derailed a Bond Market Rally
An economic recovery persisted from September 2009 through April 2010 as manufacturing activity increased, housing prices appeared to bottom and the labor market showed early evidence of modest improvement.The economic rebound was sparked, in part, by historically low short-term interest rates from the Federal Reserve Board (the “Fed”) and a massive stimulus program adopted by the U.S. government. Improving economic conditions helped lift the prices of higher yielding fixed-income securities, including investment-grade corporate bonds and commercial mortgage-backed securities. In contrast, U.S. government securities lagged market averages as investors favored riskier investments.
Investor sentiment changed during the spring of 2010, when a number of developments brought the global economic recovery into question. In Europe, Greece found itself unable to finance a heavy debt load, requiring intervention from the International Monetary Fund and other members of the European Union. Meanwhile, surging property values in China kindled local inflation fears, and investors grew concerned that remedial measures might constrain a major engine of global growth.The United States also encountered greater economic uncertainty when employment and housing data sent mixed signals to investors.As a result, traditionally defensive U.S. government securities generally rallied in the spring, while higher yielding bonds gave back some of their previous gains.
The Funds 9
DISCUSSION OF FUND PERFORMANCE (continued)
Fund Strategies Cushioned Volatility but Dampened Returns
Although the fund participated significantly in the rally among U.S. government securities, a relatively defensive average duration prevented it from realizing the full benefits of rising demand for traditional safe havens.We had set the fund’s average duration in a range that was shorter than industry averages to cushion the potential effects of rising interest rates in a recovering economy. The shortfall stemming from this strategy was magnified at the time by relatively wide yield differences along the market’s intermediate term maturity spectrum.
Our security selection strategy fared better, generating excess returns relative to the fund’s benchmark. After generally maintaining underweighted exposure to U.S. government agency securities over the reporting period’s first half, we increased the fund’s agency exposure in the spring, when their yields became more attractive. At other times, the fund held high-quality asset-backed securities as a higher yielding alternative to U.S. government agency debentures.
Maintaining a Disciplined and Diversified Approach
As of the reporting period’s end, we believe that the U.S. economy is unlikely to fall into another recession, but the continued expansion probably will remain slower and choppier than most previous recoveries. In addition, while mixed economic signals could lead to bouts of heightened market volatility, we do not expect the Fed to raise short-term interest rates anytime soon. Still, our analysis of risks and potential rewards in the U.S. government securities market suggests that a cautious investment posture—including a relatively short average duration—is the more prudent course in today’s uncertain economic and market environments.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes, and rate increases can cause price declines. | |
The fund may use derivative instruments, such as options, futures and options | |
on futures and swaps.A small investment in derivatives could have a | |
potentially large impact on the fund’s performance.The use of derivatives | |
involves risks different from, or possibly greater than, the risks associated with | |
investing directly in the underlying assets. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
Past performance is no guarantee of future results. Share price, yield and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. Return figures provided reflect the | |
absorption of certain fund expenses by BNY Mellon Fund Advisors pursuant | |
to an agreement in effect through September 30, 2010, at which time it was | |
terminated. Had these expenses not been absorbed, the fund’s returns would | |
have been lower. | |
2 | SOURCE: FactSet – Reflects reinvestment of dividends and, where applicable, |
capital gain distributions.The Barclays Capital Intermediate Government Index | |
is a widely accepted, unmanaged index of government bond market performance | |
composed of U.S.Treasury and agency securities with maturities of 1-10 years. | |
Index return does not reflect the fees and expenses associated with operating a | |
mutual fund. Investors cannot invest directly in any index. |
10
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Intermediate U.S. Government Fund, Class M shares and Investor shares and the Barclays Capital Intermediate Government Index
Average Annual Total Returns as of 8/31/10 | |||
1 Year | 5 Years | 10 Years | |
Class M shares | 5.03% | 4.76% | 5.44% |
Investor shares | 4.87% | 4.50% | 5.17% |
Barclays Capital Intermediate | |||
Government Index | 6.50% | 5.65% | 5.75% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares and Investor shares of BNY Mellon Intermediate U.S. Government Fund on 8/31/00 to a |
$10,000 investment made in the Barclays Capital Intermediate Government Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
As of the close of business on September 12, 2008, substantially all of the assets of another investment company advised by an affiliate of the fund’s investment |
adviser, BNY Hamilton Intermediate Government Fund (the “predecessor fund”), a series of BNY Hamilton Funds, Inc., were transferred to BNY Mellon |
Intermediate U.S. Government Fund in a tax-free reorganization and the fund commenced operations.The performance figures for the fund’s Class M shares represent |
the performance of the predecessor fund’s Institutional shares prior to the commencement of operations for BNY Mellon Intermediate U.S. Government Fund and the |
performance of BNY Mellon Intermediate U.S. Government Fund’s Class M shares thereafter.The performance figures for Investor shares represent the performance of |
the predecessor fund’s Class A shares prior to the commencement of operations for BNY Mellon Intermediate U.S. Government Fund and the performance of BNY |
Mellon Intermediate U.S. Government Fund’s Investor shares thereafter. Investor shares are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for all share classes.The Index is an unmanaged index designed to |
measure the performance of intermediate-term government bonds. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot |
invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights |
section of the prospectus and elsewhere in this report. |
The Funds 11
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Lawrence R. Dunn, CFA, Portfolio Manager
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Short-Term U.S. Government Securities Fund’s Class M shares achieved a total return of 1.96%, and the fund’s Investor shares achieved a total return of 1.73%.1 In comparison, the Barclays Capital 1-3 Year U.S. Government Index (the “Index”), the fund’s benchmark, achieved a total return of 2.71%.2
After lagging higher yielding bonds over much of the reporting period, short-term U.S. government securities rallied during the spring and summer of 2010, when investors questioned the sustainability of the U.S. and global economic recoveries. The fund produced lower returns than its benchmark for the reporting period, primarily due to a relatively short average duration that prevented fuller participation in the rally.
The Fund’s Investment Approach
The fund seeks to provide as high a level of current income as is consistent with the preservation of capital. To pursue this goal, the fund invests at least 80% of its assets in securities issued or guaranteed by the U.S. government or its agencies or instrumentalities and in repurchase agreements.The fund may invest up to 35% of its net assets in mortgage-related securities issued by U.S. government agencies or instrumentalities, such as mortgage pass-through securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”).The fund may also invest in collateralized mortgage obligations (“CMOs”), including stripped mortgage-backed securities. Generally, the fund 6;s average effective portfolio maturity and the average effective duration of the fund’s portfolio will be less than three years.
When choosing securities, we typically first examine U.S. and global economic conditions and other market factors to estimate long- and short-term interest rates. Using a research-driven investment process, we then seek to identify what we believe are potentially profitable sectors before they are widely perceived by the market. We also seek to identify underpriced or mis-priced securities that appear likely to perform well over time.
Economic Concerns Sparked High-Quality Rally
The reporting period began in the midst of an economic recovery that was fueled, in part, by historically low short-term interest rates from the Federal Reserve Board (the “Fed”) and a massive stimulus program adopted by the U.S. government. Improving economic conditions helped boost prices of higher yielding fixed-income securities though the first quarter of 2010, including corporate bonds and commercial mortgage-backed securities. In contrast, U.S. government securities lagged market averages.
However, investor sentiment changed during the spring of 2010, when a number of developments brought the global economic recovery into question. In Europe, Greece found itself unable to finance a heavy debt load, requiring intervention from the International Monetary Fund and other members of the European Union. Meanwhile, surging property values in China kindled
12
local inflation fears, and investors grew concerned that remedial measures might constrain a major engine of global growth. The United States also encountered greater economic uncertainty when retail sales, employment and housing data sent mixed signals to investors. As a result, traditionally defensive U.S. government securities generally rallied in the spring and summer, while higher yielding bonds gave back some of their previous gains.
Fund Participated in Market Rally
Although the fund participated significantly in the rally among U.S. government securities, a relatively defensive average duration prevented it from realizing the full benefits of rising demand for traditional safe havens. We had set the fund’s average duration in a range that was shorter than industry averages to cushion the potential effects of rising interest rates in a recovering economy.The shortfall stemming from this strategy was magnified at the time by relatively wide yield differences along the market’s short-intermediate term maturity spectrum.
Our security selection strategy fared better, generating excess returns relative to the fund’s benchmark. After generally maintaining underweighted exposure to U.S. government agency securities over the reporting period’s first half, we increased the fund’s agency exposure in the spring, when their yields became more attractive.The fund also received positive contributions to performance from securities that are not represented in the benchmark, including seasoned mortgage-backed securities and Ginnie Mae project loans.
Maintaining a Risk-Averse Approach
As of the reporting period’s end, we believe that the U.S. economy is unlikely to fall into another recession, but the continued expansion probably will remain slower and choppier than most previous recoveries. Therefore, we believe that the Fed is unlikely to raise short-term interest rates anytime soon. Consequently, we have maintained the fund’s relatively short average duration. In addition, as agency securities reached richer valuations over the summer, we trimmed the fund’s holdings to a mildly underweighted position. In our judgment, these are prudent strategies in today’s uncertain economic climate.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes, and rate increases can cause price declines. | |
The fund may use derivative instruments, such as options, futures and | |
options on futures.A small investment in derivatives could have a | |
potentially large impact on the fund’s performance.The use of derivatives | |
involves risks different from, or possibly greater than, the risks associated | |
with investing directly in the underlying assets. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
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. | |
2 | SOURCE: LIPPER INC. – Reflects reinvestment of dividends and, |
where applicable, capital gain distributions. The Barclays Capital 1-3 Year | |
U. S. Government Index is a widely accepted, unmanaged index of | |
government bond market performance composed of U. S. Treasury and | |
agency securities with maturities of 1-3 years. Index return does not reflect | |
the fees and expenses associated with operating a mutual fund. Investors | |
cannot invest directly in any index. |
The Funds | 13 |
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Short-Term U.S. Government Securities Fund Class M shares and the Barclays Capital 1-3 Year U.S. Government Index
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 1/1/87 | 1.96% | 4.09% | 3.98% | — |
Investor shares | 7/11/01 | 1.73% | 3.83% | — | 3.25% |
Barclays Capital 1-3 Year | |||||
U.S. Government Index†† | 9/30/00 | 2.71% | 4.39% | — | 4.39% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Short-Term U.S. Government Securities Fund on 8/31/00 to a $10,000 |
investment made in the Barclays Capital 1-3Year U.S. Government Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund were transferred to the fund. Please note that the performance of the fund’s Class M shares represents the |
performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the actual performance of the CTF |
the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the performance of the fund’s Class M shares |
thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore was not subject to certain investment |
restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher than those estimated prior to the |
conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is a widely accepted, unmanaged index of |
government bond market performance composed of U.S.Treasury and agency securities with maturities of 1-3 years. Unlike a mutual fund, the Index is not subject to |
charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if |
applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
14
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial advisor.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in each class of each BNY Mellon fixed income fund from March 1, 2010 to August 31, 2010. It also shows how much as $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 August 31, 2010
Class M Shares | Investor Shares | |
BNY Mellon Bond Fund | ||
Expenses paid per $1,000† | $ 2.84 | $ 4.13 |
Ending value (after expenses) | $1,049.10 | $1,047.90 |
BNY Mellon Intermediate Bond Fund | ||
Expenses paid per $1,000† | $ 2.83 | $ 4.16 |
Ending value (after expenses) | $1,039.80 | $1,038.60 |
BNY Mellon Intermediate U.S. Government Fund | ||
Expenses paid per $1,000† | $ 3.33 | $ 4.61 |
Ending value (after expenses) | $1,033.20 | $1,031.90 |
BNY Mellon Short-Term U.S. Government Securities Fund | ||
Expenses paid per $1,000† | $ 2.63 | $ 3.90 |
Ending value (after expenses) | $1,009.80 | $1,008.80 |
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 August 31, 2010
Class M Shares | Investor Shares | |
BNY Mellon Bond Fund | ||
Expenses paid per $1,000† | $ 2.80 | $ 4.08 |
Ending value (after expenses) | $1,022.43 | $1,021.17 |
BNY Mellon Intermediate Bond Fund | ||
Expenses paid per $1,000† | $ 2.80 | $ 4.13 |
Ending value (after expenses) | $1,022.43 | $1,021.12 |
BNY Mellon Intermediate U.S. Government Fund | ||
Expenses paid per $1,000† | $ 3.31 | $ 4.58 |
Ending value (after expenses) | $1,021.93 | $1,020.67 |
BNY Mellon Short-Term U.S. Government Securities Fund | ||
Expenses paid per $1,000† | $ 2.65 | $ 3.92 |
Ending value (after expenses) | $1,022.58 | $1,021.32 |
† Expenses are equal to the BNY Mellon Bond Fund’s annualized expense ratio of .55% for Class M and .80% for Investor shares, BNY Mellon Intermediate Bond Fund .55% |
for Class M and .81% for Investor shares, BNY Mellon Intermediate U.S. Government Fund .65% for Class M and .90% for Investor shares and BNY Mellon Short-Term |
U.S. Government Securities Fund .52% for Class M and .77% for Investor shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the |
one-half year period). |
The Funds | 15 |
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon Bond Fund | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes—98.7% | Rate (%) | Date | Amount ($) | Value ($) |
Asset—Backed Certificates—.2% | ||||
CIT Equipment Collateral, Ser. 2009-VT1, Cl. A2 | 2.20 | 6/15/11 | 2,578,146 a | 2,580,370 |
Asset-Backed Ctfs./Auto Receivables—3.2% | ||||
Ally Auto Receivables Trust, Ser. 2010-3, Cl. A4 | 1.55 | 8/17/15 | 3,545,000 | 3,560,055 |
Daimler Chrysler Auto Trust, Ser. 2006-C, Cl. A4 | 4.98 | 11/8/11 | 289,357 | 289,594 |
Ford Credit Auto Owner Trust, Ser. 2007-A, Cl. A4A | 5.47 | 6/15/12 | 755,000 | 773,265 |
Franklin Auto Trust, Ser. 2007-1, Cl. A4 | 5.03 | 2/16/15 | 5,690,804 | 5,699,165 |
Harley-Davidson Motorcycle Trust, Ser. 2009-2, Cl. A3 | 2.62 | 3/15/14 | 21,235,000 | 21,601,705 |
Harley-Davidson Motorcycle Trust, Ser. 2007-1, Cl. A4 | 5.21 | 6/17/13 | 3,856,280 | 3,960,120 |
Honda Auto Receivables Owner Trust, Ser. 2007-1, Cl. A4 | 5.09 | 7/18/13 | 1,010,430 | 1,012,654 |
Household Automotive Trust, Ser. 2007-1, Cl. A4 | 5.33 | 11/17/13 | 6,255,366 | 6,384,838 |
Hyundai Auto Receivables Trust, Ser. 2006-B, Cl. A4 | 5.15 | 5/15/13 | 2,498,516 | 2,528,130 |
USAA Auto Owner Trust, Ser. 2006-4 Cl. A4 | 4.98 | 10/15/12 | 1,475,912 | 1,483,479 |
47,293,005 | ||||
Automotive, Trucks & Parts—.7% | ||||
Johnson Controls, Sr. Unscd. Notes | 5.50 | 1/15/16 | 8,414,000 | 9,521,695 |
Banks—5.9% | ||||
Bank of America, Sub. Notes | 5.49 | 3/15/19 | 14,300,000 | 14,613,542 |
Bank of America, Sr. Unscd. Notes | 5.63 | 7/1/20 | 5,675,000 | 5,857,508 |
BankAmerica Capital II, Gtd. Secs., Ser. 2 | 8.00 | 12/15/26 | 6,775,000 | 6,952,844 |
Barclays Bank, Sr. Unscd. Notes, Ser. 1 | 5.00 | 9/22/16 | 12,610,000 | 13,701,295 |
Citigroup, Sub. Notes | 5.00 | 9/15/14 | 6,815,000 | 7,008,812 |
Citigroup, Sr. Unscd. Notes | 6.13 | 11/21/17 | 3,135,000 | 3,392,901 |
Goldman Sachs Group, Sr. Unscd. Notes | 3.63 | 8/1/12 | 5,390,000 | 5,581,588 |
Goldman Sachs Group, Sub. Notes | 6.75 | 10/1/37 | 5,980,000 | 6,126,444 |
JPMorgan Chase & Co., Sub. Notes | 5.13 | 9/15/14 | 3,695,000 | 4,040,327 |
Morgan Stanley, Sub. Notes | 4.75 | 4/1/14 | 9,590,000 | 9,884,183 |
Royal Bank of Scotland, Bank Gtd. Notes | 4.88 | 3/16/15 | 9,115,000 | 9,521,174 |
86,680,618 | ||||
Building & Construction—.6% | ||||
CRH America, Gtd. Notes | 5.30 | 10/15/13 | 8,055,000 | 8,643,764 |
Commercial & Professional Services—.7% | ||||
Seminole Tribe of Florida, Sr. Scd. Notes | 5.80 | 10/1/13 | 9,476,000 a | 9,503,746 |
Commercial Mortgage Pass-Through Ctfs.—5.3% | ||||
Banc of America Commercial Mortgage, Ser. 2004-4, Cl. A3 | 4.13 | 7/10/42 | 221,227 | 221,077 |
Banc of America Commercial Mortgage, Ser. 2005-6, Cl. A2 | 5.17 | 9/10/47 | 3,425,000 b | 3,440,809 |
Bear Stearns Commercial Mortgage | ||||
Securities, Ser. 2004-PWR5, Cl. A3 | 4.57 | 7/11/42 | 7,922,000 | 8,040,390 |
Chase Commercial Mortgage Securities, Ser. 2000-3, Cl. A2 | 7.32 | 10/15/32 | 1,711,122 | 1,710,266 |
Commercial Mortgage Asset Trust, Ser. 1999-C1, Cl. D | 7.35 | 1/17/32 | 2,260,000 b | 2,483,849 |
16
BNY Mellon Bond Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Commercial Mortgage Pass-Through Ctfs. (continued) | ||||
CS First Boston Mortgage Securities, Ser. 2005-C4, Cl. A2 | 5.02 | 8/15/38 | 1,581,994 | 1,582,914 |
First Union National Bank Commercial | ||||
Mortgage, Ser. 2001-C2, Cl. A2 | 6.66 | 1/12/43 | 4,187,222 | 4,235,678 |
GE Capital Commercial Mortgage, Ser. 2004-C3, Cl. A3 | 4.87 | 7/10/39 | 8,130,000 b | 8,377,050 |
GMAC Commercial Mortgage Securities, Ser. 2001-C2, Cl. B | 6.79 | 4/15/34 | 4,400,000 | 4,548,942 |
GMAC Commercial Mortgage Securities, Ser. 2001-C1, Cl. D | 7.03 | 4/15/34 | 7,926,000 b | 8,027,716 |
JP Morgan Chase Commercial Mortgage | ||||
Securities, Ser. 2004-C1, Cl. A2 | 4.30 | 1/15/38 | 344,652 | 352,189 |
JP Morgan Chase Commercial Mortgage | ||||
Securities, Ser. 2006-CB15, Cl. A1 | 4.75 | 6/12/43 | 505,921 | 510,835 |
JP Morgan Chase Commercial Mortgage | ||||
Securities, Ser. 2001-CIB2, Cl. A3 | 6.43 | 4/15/35 | 13,351,857 | 13,697,670 |
LB-UBS Commercial Mortgage Trust, Ser. 2003-C7, Cl. A2 | 4.06 | 9/15/27 | 588,645 b | 588,833 |
LB-UBS Commercial Mortgage Trust, Ser. 2000-C5, Cl. A2 | 6.51 | 12/15/26 | 3,710,131 | 3,719,249 |
Prudential Mortgage Capital Funding, Ser. 2001-ROCK, Cl. A2 | 6.61 | 5/10/34 | 8,163,143 | 8,305,161 |
Wachovia Bank Commercial Mortgage Trust, Ser. 2003-C3, Cl. A1 | 4.04 | 2/15/35 | 874,876 | 886,602 |
Wachovia Bank Commercial Mortgage Trust, Ser. 2005-C20, Cl. A4 | 5.29 | 7/15/42 | 736,703 b | 735,940 |
Wachovia Bank Commercial Mortgage | ||||
Trust, Ser. 2007-C32, Cl. A1 | 5.69 | 6/15/49 | 5,996,976 | 6,128,392 |
77,593,562 | ||||
Diversified Financial Services—4.4% | ||||
AEP Texas Central Transition Funding, Sr. Scd. Bonds, Ser. A-4 | 5.17 | 1/1/20 | 7,665,000 | 8,961,715 |
Blackrock, Sr. Unscd. Notes | 6.25 | 9/15/17 | 7,860,000 | 9,260,809 |
General Electric Capital, Notes | 5.63 | 9/15/17 | 10,070,000 | 11,139,414 |
Goldman Sachs Capital I, Gtd. Cap. Secs. | 6.35 | 2/15/34 | 1,152,000 | 1,076,270 |
HSBC Finance, Sr. Unscd. Notes | 5.00 | 6/30/15 | 9,475,000 | 10,231,105 |
John Deere Capital, Sr. Unscd. Notes | 7.00 | 3/15/12 | 6,255,000 | 6,856,837 |
NYSE Euronext, Sr. Unscd. Notes | 4.80 | 6/28/13 | 9,921,000 | 10,812,104 |
TD Ameritrade Holding, Gtd. Notes | 4.15 | 12/1/14 | 6,485,000 | 6,846,098 |
65,184,352 | ||||
Electric Utilities—.7% | ||||
Emerson Electric, Sr. Unscd. Notes | 5.00 | 12/15/14 | 3,500,000 | 3,997,686 |
Xcel Energy, Sr. Unscd. Notes | 4.70 | 5/15/20 | 5,785,000 | 6,324,642 |
10,322,328 | ||||
Entertainment—.4% | ||||
Agua Caliente Band of Cahuilla Indians, Sr. Scd. Notes | 6.08 | 10/1/16 | 2,168,000 a | 2,107,556 |
Agua Caliente Band of Cahuilla Indians, Scd. Notes | 6.35 | 10/1/15 | 2,010,000 a | 1,964,815 |
Agua Caliente Band of Cahuilla Indians, Sr. Scd. Notes | 6.44 | 10/1/16 | 2,576,000 a | 2,504,181 |
6,576,552 |
The Funds 17
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Bond Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Food & Beverages—1.8% | ||||
Diageo Finance, Gtd. Notes | 5.50 | 4/1/13 | 5,945,000 | 6,572,328 |
General Mills, Sr. Unscd. Notes | 5.65 | 2/15/19 | 2,215,000 | 2,616,673 |
Kraft Foods, Sr. Unscd. Notes | 4.13 | 2/9/16 | 9,265,000 | 9,924,112 |
Pepsico, Sr. Unscd. Notes | 4.50 | 1/15/20 | 7,040,000 | 7,834,182 |
26,947,295 | ||||
Foreign/Governmental—1.4% | ||||
Province of Ontario Canada, Sr. Unscd. Bonds | 4.00 | 10/7/19 | 10,855,000 | 11,826,859 |
United Mexican States, Sr. Unscd. Notes | 5.63 | 1/15/17 | 5,975,000 | 6,736,813 |
United Mexican States, Sr. Unscd. Notes | 6.63 | 3/3/15 | 1,480,000 | 1,735,300 |
20,298,972 | ||||
Information Technology—1.7% | ||||
International Business Machines, Sr. Unscd. Debs. | 7.00 | 10/30/25 | 3,272,000 | 4,308,197 |
Intuit, Sr. Unscd. Notes | 5.40 | 3/15/12 | 7,107,000 | 7,525,332 |
Oracle, Sr. Unscd. Notes | 5.75 | 4/15/18 | 10,410,000 | 12,474,459 |
24,307,988 | ||||
Manufacturing—.7% | ||||
Tyco International Finance, Gtd. Notes | 3.38 | 10/15/15 | 10,415,000 | 10,954,414 |
Media & Telecommunications—5.4% | ||||
America Movil Sab de CV, Gtd. Notes | 3.63 | 3/30/15 | 3,000,000 a | 3,151,935 |
AT&T, Sr. Unscd. Notes | 5.80 | 2/15/19 | 8,145,000 | 9,619,945 |
AT&T, Sr. Unscd. Notes | 5.88 | 8/15/12 | 5,995,000 | 6,544,502 |
Cisco Systems, Sr. Unscd. Notes | 5.50 | 2/22/16 | 5,550,000 | 6,552,080 |
Comcast, Gtd. Notes | 5.90 | 3/15/16 | 8,975,000 | 10,378,968 |
News America Holdings, Gtd. Debs. | 7.60 | 10/11/15 | 3,750,000 | 4,523,606 |
News America Holdings, Gtd. Debs. | 9.25 | 2/1/13 | 904,000 | 1,059,830 |
News America, Gtd. Notes | 6.15 | 3/1/37 | 2,375,000 | 2,611,968 |
Rogers Communications, Gtd. Notes | 6.38 | 3/1/14 | 6,810,000 | 7,794,372 |
Telefonica Emisiones, Gtd. Notes | 4.95 | 1/15/15 | 9,295,000 | 10,044,400 |
Time Warner, Gtd. Notes | 3.15 | 7/15/15 | 4,715,000 | 4,851,032 |
Verizon Communications, Sr. Unscd. Notes | 5.50 | 2/15/18 | 10,755,000 | 12,310,883 |
79,443,521 | ||||
Municipal Bonds—3.0% | ||||
California GO (Build America Bonds) (Various Purpose) | 7.30 | 10/1/39 | 11,215,000 | 12,411,192 |
Illinois, GO | 4.42 | 1/1/15 | 4,935,000 | 5,048,209 |
18
BNY Mellon Bond Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Municipal Bonds (continued) | ||||
Los Angeles Community College | ||||
District, GO (Build America Bonds) | 6.75 | 8/1/49 | 13,725,000 | 15,551,249 |
Municipal Electric Authority of Georgia, GO (Plant Vogtle | ||||
Units 3 and 4 Project J Bonds) (Build America Bonds) | 6.64 | 4/1/57 | 4,575,000 | 4,904,995 |
State of Washington Motor Vehicle | ||||
Fuel Tax GO (Build America Bonds) | 3.55 | 8/1/17 | 5,340,000 | 5,590,179 |
43,505,824 | ||||
Oil & Gas—.5% | ||||
BP Capital Markets, Gtd. Notes | 3.88 | 3/10/15 | 7,540,000 c | 7,476,581 |
Property & Casualty Insurance—1.1% | ||||
MetLife, Sr. Unscd. Notes | 7.72 | 2/15/19 | 6,865,000 | 8,620,689 |
Prudential Financial, Sr. Unscd. Notes | 4.75 | 9/17/15 | 7,135,000 | 7,662,155 |
16,282,844 | ||||
Real Estate—.6% | ||||
Simon Property Group, Sr. Unscd. Notes | 5.65 | 2/1/20 | 8,285,000 | 9,296,217 |
Residential Mortgage Pass-Through Ctfs.—.3% | ||||
First Horizon Asset Securities, Ser. 2003-9, Cl. 1A3 | 5.50 | 11/25/33 | 1,347,374 | 1,348,931 |
GMAC Mortgage Corporation Loan Trust, Ser. 2004-JR1, Cl. A6 | 0.71 | 12/25/33 | 1,013,987 b | 988,391 |
GMAC Mortgage Corporation Loan Trust, Ser. 2004-J2, Cl. A2 | 0.76 | 6/25/34 | 813,710 b | 754,337 |
GMAC Mortgage Corporation Loan Trust, Ser. 2004-J4, Cl. A1 | 5.50 | 9/25/34 | 451,951 | 455,112 |
Mastr Asset Securitization Trust, Ser. 2003-11, Cl. 2A6 | 5.25 | 12/25/33 | 1,111,115 | 1,109,047 |
4,655,818 | ||||
Transportation—.2% | ||||
GATX, Sr. Unscd. Notes | 4.75 | 5/15/15 | 2,850,000 | 3,043,954 |
U.S. Government Agencies—5.4% | ||||
Federal Agricultural Mortgage Corp., Notes | 2.10 | 8/10/12 | 9,140,000 | 9,419,145 |
Federal Home Loan Banks, Bonds | 3.63 | 10/18/13 | 11,670,000 | 12,655,963 |
Federal Home Loan Mortgage Corp., Notes, Ser. 1 | 2.00 | 9/28/12 | 10,255,000 d | 10,264,342 |
Federal Home Loan Mortgage Corp., Notes, Ser. 1 | 2.00 | 11/5/12 | 10,300,000 d | 10,325,472 |
Federal National Mortgage Association, Notes | 2.00 | 9/28/12 | 10,495,000 d | 10,506,691 |
Federal National Mortgage Association, Notes | 2.63 | 12/10/14 | 7,980,000 d | 8,030,458 |
Federal National Mortgage Association, Notes | 3.00 | 9/16/14 | 6,610,000 d | 7,061,357 |
Federal National Mortgage Association, Notes | 4.38 | 7/17/13 | 9,520,000 d | 10,464,612 |
78,728,040 |
The Funds | 19 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Bond Fund (continued) | |||||
Principal | Principal | ||||
Bonds and Notes (continued) | Amount ($) | Value ($) | Amount ($) | Value ($) | |
U.S. Government Agencies/ | U.S. Government | ||||
Mortgage-Backed—34.4% | Securities—20.1% | ||||
Federal Home Loan Mortgage Corp.: | U.S. Treasury Bonds: | ||||
4.50%, 3/1/21—7/1/40 | 6,025,616 d | 6,365,795 | 4.63%, 2/15/40 | 7,750,000 | 9,298,791 |
5.00%, 4/1/22—7/1/40 | 68,231,127 d | 72,592,541 | 6.25%, 8/15/23 | 2,405,000 | 3,285,081 |
5.50%, 12/1/37—12/1/38 | 37,135,479 d | 39,711,661 | 7.13%, 2/15/23 | 3,014,000 | 4,377,365 |
5.76%, 4/1/37 | 1,823,575 b,d | 1,945,104 | U.S. Treasury Inflation | ||
6.00%, 7/1/37—6/1/39 | 30,756,422 d | 33,119,803 | Protected Securities: | ||
6.50%, 9/1/37—4/1/39 | 12,894,287 d | 14,036,213 | Bonds, 2.38%, 1/15/27 | 13,635,049 e | 15,697,350 |
6.50%, 4/1/39 | 4,638,723 d | 5,049,532 | Notes, 0.50%, 4/15/15 | 7,272,006 e | 7,420,290 |
7.00%, 11/1/26—4/1/32 | 957,451 d | 1,087,123 | Notes, 0.63%, 4/15/13 | 6,991,875 c,e | 7,152,471 |
7.50%, 9/1/11—7/1/31 | 105,496 d | 120,288 | Notes, 1.38%, 7/15/18 | 12,023,585 e | 12,691,459 |
Multiclass Mortgage Participation | Notes, 1.38%, 1/15/20 | 9,797,566 e | 10,238,456 | ||
Ctfs., Ser. 2587, Cl. WB, | Notes, 2.38%, 1/15/17 | 13,651,262 e | 15,235,027 | ||
5.00%, 11/15/16 | 820,715 d | 836,610 | U.S. Treasury Notes: | ||
Federal National Mortgage Association: | 0.75%, 8/15/13 | 425,000 | 425,598 | ||
4.00%, 4/1/24—1/1/25 | 24,304,569 d | 25,596,709 | 1.13%, 6/15/13 | 11,615,000 | 11,758,399 |
4.50%, 3/1/23—5/1/40 | 81,618,740 d | 86,124,954 | 1.38%, 5/15/13 | 14,750,000 | 15,036,991 |
5.00%, 3/1/21—7/1/23 | 23,144,085 d | 24,652,609 | 1.75%, 4/15/13 | 10,400,000 | 10,703,857 |
5.50%, 4/1/36—6/1/38 | 37,709,029 d | 40,465,809 | 1.75%, 7/31/15 | 10,115,000 | 10,328,386 |
5.55%, 4/1/37 | 2,718,792 b,d | 2,895,955 | 2.38%, 9/30/14 | 2,555,000 | 2,688,540 |
5.82%, 8/1/37 | 5,587,138 b,d | 5,997,453 | 2.63%, 8/15/20 | 8,750,000 | 8,863,479 |
5.88%, 5/1/37 | 3,488,793 b,d | 3,746,105 | 3.13%, 5/15/19 | 7,250,000 | 7,724,650 |
6.00%, 4/1/33—9/1/39 | 43,413,546 d | 46,993,900 | 3.38%, 11/15/19 | 23,000,000 | 24,845,405 |
6.50%, 10/1/36—1/1/39 | 36,041,166 d | 39,332,270 | 3.50%, 5/15/20 | 17,500,000 | 19,070,905 |
7.00%, 4/1/32—10/1/32 | 1,415,008 d | 1,603,956 | 3.63%, 2/15/20 | 15,500,000 | 17,060,897 |
Ser. 2003-64, | 4.25%, 8/15/13 | 23,500,000 | 25,969,333 | ||
Cl. BC, 5.50%, 3/25/30 | 12,061,537 d | 12,369,123 | 4.25%, 11/15/13 | 12,960,000 | 14,413,957 |
Government National | 4.50%, 11/15/15 | 21,585,000 | 25,011,619 | ||
Mortgage Association I: | 5.13%, 5/15/16 | 13,675,000 | 16,356,585 | ||
5.00%, 11/15/34—1/15/39 | 25,119,816 | 27,151,963 | 295,654,891 | ||
6.00%, 7/15/38 | 7,899,465 | 8,614,064 | Total Bonds and Notes | ||
6.50%, 8/15/38 | 4,274,025 | 4,699,364 | (cost $1,376,318,878) | 1,449,605,255 | |
505,108,904 |
20
BNY Mellon Bond Fund (continued) | |||||
Investment of Cash Collateral | |||||
Common Stocks—.0% | Shares | Value ($) | for Securities Loaned—.1% | Shares | Value ($) |
Internet—.0% | Registered Investment Company; | ||||
AboveNet | 1,266 f | 65,351 | Dreyfus | ||
Media & Telecommunications—.0% | Institutional | ||||
XO Holdings | 635 f | 381 | Cash Advantage | ||
Plus Fund | |||||
Total Common Stocks | (cost $962,574) | 962,574 g 962,574 | |||
(cost $0) | 65,732 | ||||
Total Investments | |||||
Other Investment—.8% | (cost $1,389,500,452) | 99.6% | 1,462,852,561 | ||
Registered Investment Company; | Cash and | ||||
Dreyfus Institutional Preferred | Receivables (Net) | .4% | 6,031,020 | ||
Plus Money Market Fund | Net Assets | 100.0% | 1,468,883,581 | ||
(cost $12,219,000) | 12,219,000 g | 12,219,000 |
GO—General Obligations
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 August 31, 2010, these securities had a total market value of $21,812,603 or 1.5% of net assets. |
b Variable rate security—interest rate subject to periodic change. |
c Security, or portion thereof, on loan.At August 31, 2010, the total market value of the fund’s securities on loan is $7,260,175 and the total market value of the collateral held by |
the fund is $7,643,945, consisting of cash collateral of $962,574 and U.S. Government and Agency securities valued at $6,681,371. |
d On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Federal National Mortgage Association and Federal Home Loan Mortgage Corporation into |
conservatorship with FHFA as the conservator.As such, the FHFA will oversee the continuing affairs of these companies. |
e Principal amount for accrual purposes is periodically adjusted based on changes in the Consumer Price Index. |
f Non-income producing security. |
g Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited)† | |||
Value (%) | Value (%) | ||
U.S. Government & Agencies | 59.9 | Foreign/Governmental | 1.4 |
Corporate Bonds | 25.4 | Money Market Investments | .9 |
Asset/Mortgage-Backed | 9.0 | Common Stocks | .0 |
Municipal Bonds | 3.0 | 99.6 | |
† Based on net assets. | |||
See notes to financial statements. |
The Funds | 21 |
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon Intermediate Bond Fund | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes—98.3% | Rate (%) | Date | Amount ($) | Value ($) |
Aerospace & Defense—.6% | ||||
General Dynamics, Gtd. Notes | 5.25 | 2/1/14 | 3,050,000 | 3,462,101 |
United Technologies, Sr. Unscd. Notes | 6.13 | 2/1/19 | 1,860,000 | 2,312,549 |
5,774,650 | ||||
Asset-Backed Ctfs./Auto Receivables—.7% | ||||
Harley-Davidson Motorcycle Trust, Ser. 2007-1, Cl. A4 | 5.21 | 6/17/13 | 1,495,141 | 1,535,402 |
Honda Auto Receivables Owner Trust, Ser. 2007-1, Cl. A4 | 5.09 | 7/18/13 | 1,646,245 | 1,649,868 |
Household Automotive Trust, Ser. 2007-1, Cl. A4 | 5.33 | 11/17/13 | 2,056,095 | 2,098,651 |
Hyundai Auto Receivables Trust, Ser. 2006-B, Cl. A4 | 5.15 | 5/15/13 | 1,860,006 | 1,882,052 |
7,165,973 | ||||
Automotive, Trucks & Parts—1.3% | ||||
Daimler Finance North America, Gtd. Notes | 6.50 | 11/15/13 | 4,385,000 | 5,011,985 |
GATX, Sr. Unscd. Notes | 4.75 | 5/15/15 | 1,900,000 | 2,029,303 |
Johnson Controls, Sr. Unscd. Notes | 5.50 | 1/15/16 | 5,230,000 | 5,918,524 |
12,959,812 | ||||
Bank & Finance—13.4% | ||||
Agua Caliente Band of Cahuilla Indians, Sr. Scd. Notes | 6.08 | 10/1/16 | 1,616,000 a | 1,570,946 |
Agua Caliente Band of Cahuilla Indians, Scd. Notes | 6.35 | 10/1/15 | 990,000 a | 967,745 |
Agua Caliente Band of Cahuilla Indians, Sr. Scd. Notes | 6.44 | 10/1/16 | 1,967,000 a | 1,912,160 |
Bank of America, Sr. Notes | 3.70 | 9/1/15 | 7,940,000 | 7,934,140 |
Bank of America, Sub. Notes | 5.42 | 3/15/17 | 8,900,000 | 9,123,105 |
Bank of America, Sr. Unscd. Notes | 5.63 | 7/1/20 | 3,805,000 | 3,927,369 |
BankAmerica Capital II, Gtd. Secs., Ser. 2 | 8.00 | 12/15/26 | 4,975,000 | 5,105,594 |
Barclays Bank, Sr. Unscd. Notes, Ser. 1 | 5.00 | 9/22/16 | 8,250,000 | 8,963,972 |
Caterpillar Financial Services, Sr. Unscd. Notes | 6.13 | 2/17/14 | 4,975,000 | 5,721,648 |
Citigroup, Sub. Notes | 5.00 | 9/15/14 | 6,790,000 | 6,983,101 |
Citigroup, Sr. Unscd. Notes | 6.13 | 11/21/17 | 2,840,000 | 3,073,633 |
General Electric Capital, Sr. Unscd. Notes | 2.80 | 1/8/13 | 5,000,000 | 5,143,380 |
Goldman Sachs Group, Sr. Unscd. Notes | 4.75 | 7/15/13 | 7,780,000 | 8,271,035 |
HSBC Finance, Sr. Unscd. Notes | 5.00 | 6/30/15 | 1,800,000 | 1,943,640 |
HSBC Finance, Sr. Unscd. Notes | 6.38 | 11/27/12 | 6,708,000 | 7,307,749 |
John Deere Capital, Sr. Unscd. Notes | 7.00 | 3/15/12 | 5,805,000 | 6,363,540 |
JPMorgan Chase & Co., Sr. Unscd. Notes | 5.38 | 10/1/12 | 4,110,000 | 4,443,954 |
22
BNY Mellon Intermediate Bond Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Bank & Finance (continued) | ||||
Morgan Stanley, Sub. Notes | 4.75 | 4/1/14 | 5,985,000 | 6,168,596 |
NYSE Euronext, Sr. Unscd. Notes | 4.80 | 6/28/13 | 5,305,000 | 5,781,495 |
Private Export Funding, Gov’t Gtd. Notes | 4.38 | 3/15/19 | 15,935,000 | 17,948,244 |
Royal Bank of Scotland, Bank Gtd. Notes | 4.88 | 3/16/15 | 5,260,000 | 5,494,391 |
TD Ameritrade Holding, Gtd. Notes | 4.15 | 12/1/14 | 3,195,000 | 3,372,904 |
Wells Fargo & Co., Sub. Notes | 6.38 | 8/1/11 | 5,240,000 | 5,545,827 |
133,068,168 | ||||
Building & Construction—.6% | ||||
CRH America, Gtd. Notes | 5.30 | 10/15/13 | 5,320,000 | 5,708,855 |
Commercial & Professional Services—1.4% | ||||
Seminole Tribe of Florida, Sr. Scd. Notes | 5.80 | 10/1/13 | 6,340,000 a | 6,358,564 |
Stanford University, Bonds | 4.75 | 5/1/19 | 5,000,000 | 5,809,790 |
Trustees of Dartmouth College, Unscd. Notes | 4.75 | 6/1/19 | 2,000,000 | 2,268,190 |
14,436,544 | ||||
Food & Beverages—2.9% | ||||
Coca-Cola, Sr. Unscd. Notes | 5.35 | 11/15/17 | 4,880,000 | 5,756,038 |
Diageo Finance, Gtd. Notes | 5.50 | 4/1/13 | 4,415,000 | 4,880,880 |
Kraft Foods, Sr. Unscd. Notes | 4.13 | 2/9/16 | 6,930,000 | 7,423,000 |
McDonald’s, Sr. Unscd. Notes | 5.80 | 10/15/17 | 4,460,000 | 5,392,318 |
PepsiCo, Sr. Unscd. Notes | 3.10 | 1/15/15 | 4,760,000 | 5,067,182 |
28,519,418 | ||||
Foreign/Governmental—1.5% | ||||
Province of Nova Scotia Canada, Bonds | 5.13 | 1/26/17 | 5,430,000 | 6,354,126 |
Province of Ontario Canada, Sr. Unscd. Bonds | 4.00 | 10/7/19 | 6,515,000 b | 7,098,294 |
United Mexican States, Sr. Unscd. Notes | 6.63 | 3/3/15 | 1,064,000 | 1,247,540 |
14,699,960 | ||||
Health Care—2.3% | ||||
Amgen, Sr. Notes | 5.70 | 2/1/19 | 2,905,000 | 3,506,965 |
Astrazeneca, Sr. Unscd. Notes | 5.90 | 9/15/17 | 5,895,000 | 7,136,310 |
GlaxoSmithKline Capital, Gtd. Bonds | 5.65 | 5/15/18 | 5,853,000 | 6,962,050 |
Pfizer, Sr. Unscd. Notes | 6.20 | 3/15/19 | 4,050,000 | 5,014,123 |
22,619,448 |
The Funds | 23 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Intermediate Bond Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Industrials—3.3% | ||||
BP Capital Markets, Gtd. Notes | 3.88 | 3/10/15 | 5,045,000 b | 5,002,567 |
Emerson Electric, Sr. Unscd. Notes | 4.63 | 10/15/12 | 3,000,000 | 3,224,388 |
Occidental Petroleum, Sr. Unscd. Notes | 4.13 | 6/1/16 | 3,005,000 | 3,354,016 |
Progress Energy, Sr. Unscd. Notes | 6.85 | 4/15/12 | 5,093,000 | 5,525,625 |
Shell International Finance, Gtd. Notes | 3.10 | 6/28/15 | 1,850,000 | 1,939,024 |
Vulcan Materials, Sr. Unscd. Notes | 5.60 | 11/30/12 | 5,885,000 | 6,338,198 |
Xcel Energy, Sr. Unscd. Notes | 4.70 | 5/15/20 | 3,705,000 | 4,050,614 |
XTO Energy, Sr. Unscd. Notes | 5.50 | 6/15/18 | 2,565,000 | 3,072,072 |
32,506,504 | ||||
Media & Telecommunications—6.0% | ||||
AT&T, Sr. Unscd. Notes | 5.80 | 2/15/19 | 5,095,000 | 6,017,633 |
Cisco Systems, Sr. Unscd. Notes | 5.50 | 2/22/16 | 7,135,000 | 8,423,260 |
Comcast, Gtd. Notes | 5.90 | 3/15/16 | 5,135,000 | 5,938,273 |
News America, Gtd. Notes | 5.30 | 12/15/14 | 5,260,000 | 5,940,413 |
Rogers Communications, Gtd. Notes | 6.38 | 3/1/14 | 4,859,000 | 5,561,359 |
Telefonica Emisiones, Gtd. Notes | 4.95 | 1/15/15 | 6,270,000 | 6,775,512 |
Time Warner, Gtd. Notes | 3.15 | 7/15/15 | 5,010,000 | 5,154,544 |
Verizon Communications, Sr. Unscd. Notes | 8.75 | 11/1/18 | 6,530,000 | 8,815,461 |
Vodafone Group, Sr. Unscd. Notes | 5.35 | 2/27/12 | 6,200,000 | 6,562,037 |
59,188,492 | ||||
Multi-Line Insurance—1.0% | ||||
MetLife, Sr. Unscd. Notes | 6.75 | 6/1/16 | 4,450,000 | 5,289,697 |
Prudential Financial, | ||||
Sr. Unscd. Notes | 4.75 | 9/17/15 | 4,735,000 | 5,084,836 |
10,374,533 | ||||
Municipal Bonds—1.6% | ||||
Illinois, GO | 4.42 | 1/1/15 | 3,225,000 | 3,298,981 |
State of California | ||||
Taxable Various Purpose, Bonds | 5.45 | 4/1/15 | 4,550,000 | 4,874,779 |
State of California | ||||
Taxable Various Purpose, Bonds | 5.95 | 4/1/16 | 3,255,000 | 3,595,375 |
State of Washington Motor Vehicle | ||||
Fuel Tax, GO (Build America Bonds) | 3.55 | 8/1/17 | 3,550,000 | 3,716,317 |
15,485,452 |
24
BNY Mellon Intermediate Bond Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Real Estate —1.1% | ||||
Mack-Cali Realty, Sr. Unscd. Notes | 7.75 | 2/15/11 | 5,280,000 | 5,407,924 |
Simon Property Group, Sr. Unscd. Notes | 4.20 | 2/1/15 | 5,410,000 | 5,788,262 |
11,196,186 | ||||
Retailing—.5% | ||||
Wal-Mart Stores, Sr. Unscd. Notes | 4.55 | 5/1/13 | 4,675,000 | 5,125,020 |
Software & Services—1.4% | ||||
Intuit, Sr. Unscd. Notes | 5.40 | 3/15/12 | 5,330,000 | 5,643,734 |
Oracle, Sr. Unscd. Notes | 5.75 | 4/15/18 | 7,000,000 | 8,388,205 |
14,031,939 | ||||
U.S. Government Agencies—13.6% | ||||
Federal Agricultural Mortgage Corp., Notes | 2.10 | 8/10/12 | 5,560,000 | 5,729,808 |
Federal Farm Credit Banks, Bonds | 2.13 | 6/18/12 | 9,065,000 | 9,316,554 |
Federal Farm Credit Banks, Bonds | 2.25 | 4/24/12 | 12,935,000 | 13,294,528 |
Federal Farm Credit Banks, Bonds | 3.40 | 2/7/13 | 15,800,000 | 16,801,025 |
Federal Farm Credit Banks, Bonds | 3.88 | 10/7/13 | 9,335,000 | 10,179,173 |
Federal Home Loan Banks, Bonds | 2.05 | 8/10/12 | 8,910,000 | 9,029,768 |
Federal Home Loan Banks, Bonds | 3.63 | 10/18/13 | 6,850,000 | 7,428,736 |
Federal Home Loan Banks, Bonds | 4.25 | 6/14/13 | 7,500,000 | 8,203,132 |
Federal Home Loan Mortgage Corp., Notes | 1.50 | 7/12/13 | 9,820,000 c | 9,878,370 |
Federal Home Loan Mortgage Corp., Notes | 1.88 | 3/8/13 | 9,000,000 c | 9,055,899 |
Federal Home Loan Mortgage Corp., Notes | 2.00 | 4/27/12 | 7,830,000 c | 7,904,534 |
Federal National Mortgage Association, Notes | 1.60 | 10/1/12 | 5,500,000 c | 5,504,515 |
Federal National Mortgage Association, Notes | 3.00 | 9/16/14 | 8,550,000 c | 9,133,828 |
Federal National Mortgage Association, Notes | 4.38 | 7/17/13 | 12,055,000 c | 13,251,145 |
134,711,015 | ||||
U.S. Government Agencies/Mortgage-Backed—.0% | ||||
Federal Home Loan Mortgage Corp., REMIC, Ser. 2134, Cl. PM, | ||||
5.50%, 3/15/14 | 465,353 c | 494,851 | ||
U.S. Government Securities—45.1% | ||||
U.S. Treasury Inflation Protected Securities: | ||||
Notes, 0.50%, 4/15/15 | 9,288,655 d | 9,478,060 | ||
Notes, 0.63%, 4/15/13 | 4,042,500 b,d | 4,135,352 | ||
Notes, 1.38%, 7/15/18 | 7,864,102 d | 8,300,929 | ||
Notes, 2.38%, 1/15/17 | 15,023,954 d | 16,766,973 |
The Funds | 25 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Intermediate Bond Fund (continued) | |||||
Principal | Principal | ||||
Bonds and Notes (continued) | Amount ($) | Value ($) | Amount ($) | Value ($) | |
U.S. Government | U.S. Government | ||||
Securities (continued) | Securities (continued) | ||||
U.S. Treasury Notes: | U.S. Treasury Notes (continued): | ||||
0.75%, 8/15/13 | 305,000 | 305,429 | 4.88%, 6/30/12 | 10,000,000 | 10,811,330 |
0.88%, 2/29/12 | 2,000,000 | 2,014,614 | 5.13%, 5/15/16 | 2,885,000 | 3,450,731 |
1.00%, 7/31/11 | 11,475,000 | 11,551,653 | 448,070,481 | ||
1.00%, 12/31/11 | 10,000,000 | 10,083,600 | Total Bonds and Notes | ||
1.13%, 12/15/12 | 10,500,000 | 10,636,175 | (cost $924,423,455) | 976,137,301 | |
1.13%, 6/15/13 | 11,985,000 | 12,132,967 | |||
1.38%, 10/15/12 | 11,000,000 | 11,201,091 | |||
1.38%, 2/15/13 | 10,000,000 | 10,189,060 | Other Investment—1.1% | Shares | Value ($) |
1.38%, 5/15/13 | 2,455,000 | 2,502,767 | Registered Investment Company; | ||
1.50%, 7/15/12 | 9,000,000 | 9,181,053 | |||
Dreyfus Institutional Preferred | |||||
1.75%, 7/31/15 | 6,390,000 b | 6,524,803 | |||
Plus Money Market Fund | |||||
2.38%, 9/30/14 | 1,600,000 | 1,683,626 | |||
(cost $10,833,000) | 10,833,000 e | 10,833,000 | |||
2.50%, 3/31/13 | 8,915,000 | 9,353,787 | |||
2.63%, 8/15/20 | 10,750,000 b | 10,889,417 | Investment of Cash Collateral | ||
3.13%, 5/15/19 | 6,345,000 | 6,760,401 | for Securities Loaned—1.3% | ||
3.38%, 11/15/19 | 5,000,000 | 5,401,175 | |||
3.50%, 5/15/20 | 11,000,000 | 11,987,426 | Registered Investment Company; | ||
3.63%, 2/15/20 | 3,900,000 | 4,292,742 | Dreyfus Institutional Cash | ||
3.75%, 11/15/18 | 2,575,000 | 2,883,598 | Advantage Plus Fund | ||
4.00%, 11/15/12 | 43,500,000 | 46,874,643 | (cost $13,308,666) | 13,308,666 e | 13,308,666 |
4.25%, 8/15/13 | 40,180,000 | 44,402,034 | |||
4.25%, 11/15/13 | 27,510,000 | 30,596,292 | Total Investments | ||
4.50%, 4/30/12 | 8,500,000 | 9,078,731 | (cost $948,565,121) | 100.7% 1,000,278,967 | |
4.50%, 11/15/15 | 10,235,000 | 11,859,806 | Liabilities, Less Cash | ||
4.63%, 8/31/11 | 57,250,000 | 59,718,906 | and Receivables | (.7%) | (6,956,025) |
4.63%, 2/29/12 | 39,750,000 | 42,267,010 | |||
Net Assets | 100.0% | 993,322,942 |
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 August 31, 2010, these securities had a total market value of $10,809,415 or 1.1% of net assets. |
b Security, or portion thereof, on loan.At August 31, 2010, the total market value of the fund’s securities on loan is $16,394,625 and the total market value of the collateral held by |
the fund is $16,864,879, consisting of cash collateral of $13,308,666 and U.S. Government and Agency securities valued at $3,556,213. |
c On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Federal National Mortgage Association and Federal Home Loan Mortgage Corporation into |
conservatorship with FHFA as the conservator.As such, the FHFA will oversee the continuing affairs of these companies. |
d Principal amount for accrual purposes is periodically adjusted based on changes in the Consumer Price Index. |
e Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited)† | |||
Value (%) | Value (%) | ||
U.S. Government & Agencies | 58.7 | Foreign/Governmental | 1.5 |
Corporate Bonds | 35.8 | Asset/Mortgage-Backed | .7 |
Money Market Investments | 2.4 | ||
Municipal Bonds | 1.6 | 100.7 |
† Based on net assets. |
See notes to financial statements. |
26
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon Intermediate U.S. Government Fund | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes—98.2% | Rate (%) | Date | Amount ($) | Value ($) |
Diversified Financial Services—2.1% | ||||
Private Export Funding, Gov’t Gtd. Notes | 4.38 | 3/15/19 | 1,220,000 | 1,374,136 |
U.S. Government Agencies—29.7% | ||||
Federal Agricultural Mortgage Corp., Notes | 2.10 | 8/10/12 | 420,000 | 432,827 |
Federal Farm Credit Banks, Bonds | 3.88 | 10/7/13 | 675,000 | 736,041 |
Federal Home Loan Banks, Bonds | 1.63 | 3/20/13 | 1,515,000 | 1,547,045 |
Federal Home Loan Banks, Bonds | 3.63 | 10/18/13 | 1,280,000 | 1,388,143 |
Federal Home Loan Banks, Bonds | 4.25 | 6/14/13 | 635,000 | 694,532 |
Federal Home Loan Banks, Bonds | 4.88 | 12/13/13 | 3,750,000 | 4,215,855 |
Federal Home Loan Mortgage Corp. Notes, Ser. 1 | 1.63 | 6/28/13 | 2,525,000 a | 2,549,275 |
Federal Home Loan Mortgage Corp., Notes | 1.13 | 7/27/12 | 250,000 a | 252,507 |
Federal Home Loan Mortgage Corp., Notes | 1.88 | 3/8/13 | 1,225,000 a | 1,232,608 |
Federal Home Loan Mortgage Corp., Notes | 5.50 | 8/20/12 | 1,345,000 a | 1,472,840 |
Federal National Mortgage Association, Notes | 2.00 | 6/24/13 | 1,200,000 a | 1,211,678 |
Federal National Mortgage Association, Notes | 2.05 | 4/26/13 | 925,000 a | 933,201 |
Federal National Mortgage Association, Notes | 4.38 | 7/17/13 | 1,270,000 a | 1,396,014 |
Federal National Mortgage Association, Bonds, Ser. 1 | 4.75 | 11/19/12 | 1,125,000 a | 1,224,857 |
Federal National Mortgage Association, Sub. Notes | 5.13 | 1/2/14 | 440,000 a | 488,294 |
19,775,717 | ||||
U.S. Government Agencies/Mortgage-Backed—10.4% | ||||
Federal Home Loan Mortgage Corp.: | ||||
Multiclass Mortgage Participation Ctfs., | ||||
Ser. 2619, Cl. YK, 5.00%, 5/15/16 | 560,288 a | 567,703 | ||
Multiclass Mortgage Participation Ctfs., | ||||
Ser. 2587, Cl. WB, 5.00%, 11/15/16 | 212,778 a | 216,899 | ||
Multiclass Mortgage Participation Ctfs., | ||||
Ser. 3137, Cl. PA, 5.13%, 12/15/13 | 298,312 a | 305,307 | ||
Government National Mortgage Association I: | ||||
Ser. 2008-45, Cl. A, 3.58%, 11/16/27 | 185,477 | 189,188 | ||
Ser. 2004-23, Cl. AB, 3.63%, 9/16/27 | 230,611 | 239,135 | ||
Ser. 2005-76, Cl. A, 3.96%, 5/16/30 | 566,666 | 590,912 | ||
Ser. 2005-29, Cl. A, 4.02%, 7/16/27 | 142,024 | 148,039 | ||
Ser. 2006-3, Cl. A, 4.21%, 1/16/28 | 127,426 | 129,904 | ||
Ser. 2003-47, Cl. C, 4.23%, 10/16/27 | 207,043 | 211,416 | ||
Ser. 2008-78, Cl. B, 4.52%, 6/16/32 | 1,400,000 | 1,500,742 | ||
Ser. 2005-79, Cl. B, 4.65%, 8/16/39 | 120,000 | 127,997 | ||
Ser. 2004-12, Cl. BA, 4.81%, 8/16/32 | 650,000 | 693,196 | ||
Ser. 2006-32, Cl. A, 5.08%, 1/16/30 | 668,967 | 707,106 | ||
Ser. 2004-60, Cl. C, 5.24%, 3/16/28 | 1,000,000 b | 1,073,309 | ||
Ser. 2004-50, Cl. C, 5.32%, 8/16/30 | 187,883 b | 200,650 | ||
6,901,503 |
The Funds | 27 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Intermediate U.S. Government Fund (continued) | |||||
Principal | Principal | ||||
Bonds and Notes (continued) | Amount ($) | Value ($) | Amount ($) | Value ($) | |
U.S. Government Securities—56.0% | U.S. Government | ||||
U.S. Treasury Bonds; | Securities (continued) | ||||
7.25%, 5/15/16 | 1,500,000 | 1,968,047 | U.S. Treasury Notes (continued): | ||
U.S. Treasury Inflation | 4.50%, 11/15/15 | 2,000,000 | 2,317,500 | ||
Protected Securities: | 4.63%, 2/29/12 | 4,750,000 | 5,050,775 | ||
Notes, 0.50%, 4/15/15 | 824,764 c | 841,582 | 5.13%, 5/15/16 | 1,000,000 | 1,196,094 |
Notes, 0.63%, 4/15/13 | 407,344 c | 416,700 | 37,249,258 | ||
Notes, 1.38%, 7/15/18 | 20,216 c | 21,339 | Total Bonds and Notes | ||
Notes, 1.38%, 1/15/20 | 952,541 c | 995,405 | (cost $62,673,911) | 65,300,614 | |
Notes, 2.38%, 1/15/17 | 2,023,370 c | 2,258,113 | |||
U.S. Treasury Notes: | |||||
Other Investment—1.4% | Shares | Value ($) | |||
1.13%, 6/15/13 | 500,000 | 506,173 | |||
1.38%, 5/15/13 | 2,250,000 | 2,293,778 | Registered Investment Company; | ||
2.63%, 8/15/20 | 750,000 | 759,727 | Dreyfus Institutional Preferred | ||
3.13%, 1/31/17 | 1,500,000 | 1,620,117 | Plus Money Market Fund | ||
3.38%, 11/15/19 | 500,000 | 540,118 | (cost $935,000) | 935,000 d | 935,000 |
3.50%, 5/15/20 | 1,500,000 | 1,634,649 | |||
3.63%, 8/15/19 | 1,000,000 | 1,102,891 | Total Investments | ||
3.63%, 2/15/20 | 1,500,000 | 1,651,055 | (cost $63,608,911) | 99.6% | 66,235,614 |
3.75%, 11/15/18 | 500,000 | 559,922 | Cash and Receivables (Net) | .4% | 278,939 |
4.00%, 11/15/12 | 5,010,000 | 5,398,666 | |||
4.25%, 8/15/13 | 5,535,000 | 6,116,607 | Net Assets | 100.0% | 66,514,553 |
a On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Federal National Mortgage Association and Federal Home Loan Mortgage Corporation into |
conservatorship with FHFA as the conservator.As such, the FHFA will oversee the continuing affairs of these companies. |
b Variable rate security—interest rate subject to periodic change. |
c Principal amount for accrual purposes is periodically adjusted based on changes in the Consumer Price Index. |
d Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited)† | |||
Value (%) | Value (%) | ||
U.S. Government & Agencies | 96.1 | Money Market Investment | 1.4 |
Corporate Bonds | 2.1 | 99.6 | |
† Based on net assets. | |||
See notes to financial statements. |
28
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon Short-Term U.S. Government Securities Fund | |||||
Coupon | Maturity | Principal | |||
Bonds and Notes—98.3% | Rate (%) | Date | Amount ($) | Value ($) | |
Banks—3.0% | |||||
Bank of America, Gtd. Notes | 3.13 | 6/15/12 | 1,875,000 | 1,959,621 | |
Goldman Sachs Group, Gtd. Notes | 3.25 | 6/15/12 | 400,000 | 418,427 | |
JPMorgan Chase & Co., Gtd. Notes | 3.13 | 12/1/11 | 1,750,000 | 1,809,155 | |
Key Bank, Gtd. Notes | 3.20 | 6/15/12 | 2,000,000 a | 2,093,648 | |
Regions Bank, Gtd. Notes | 3.25 | 12/9/11 | 1,875,000 | 1,941,489 | |
Wells Fargo & Co., Gtd. Notes | 3.00 | 12/9/11 | 1,000,000 | 1,032,824 | |
9,255,164 | |||||
Diversified Financial Services—1.8% | |||||
General Electric Capital, Gtd. Notes | 2.00 | 9/28/12 | 3,655,000 | 3,756,280 | |
General Electric Capital, Gtd. Notes | 3.00 | 12/9/11 | 1,635,000 | 1,685,082 | |
5,441,362 | |||||
Municipal Bonds—.3% | |||||
California, GO | 5.25 | 4/1/14 | 1,000,000 | 1,052,570 | |
U.S. Government Agencies—19.2% | |||||
Federal Agricultural Mortgage Corp., Notes | 2.10 | 8/10/12 | 1,120,000 | 1,154,206 | |
Federal Farm Credit Banks, Bonds | 2.25 | 4/24/12 | 2,795,000 | 2,872,687 | |
Federal Home Loan Banks, Bonds | 1.63 | 3/20/13 | 5,825,000 | 5,948,210 | |
Federal Home Loan Banks, Bonds | 4.88 | 11/18/11 | 2,770,000 | 2,919,303 | |
Federal Home Loan Mortgage Corp., Notes | 1.13 | 3/2/12 | 5,825,000 b | 5,825,117 | |
Federal Home Loan Mortgage Corp., Notes | 1.13 | 7/27/12 | 4,880,000 b | 4,928,927 | |
Federal Home Loan Mortgage Corp., Notes, Ser. 1 | 1.63 | 6/28/13 | 5,915,000 b | 5,971,867 | |
Federal Home Loan Mortgage Corp., Notes | 1.88 | 3/8/13 | 5,000,000 b | 5,031,055 | |
Federal Home Loan Mortgage Corp., Notes | 2.13 | 3/23/12 | 3,910,000 b | 4,007,167 | |
Federal National Mortgage Association, Notes, Ser. 1 | 1.13 | 7/30/12 | 5,000,000 b | 5,048,210 | |
Federal National Mortgage Association, Notes | 2.00 | 6/24/13 | 4,880,000 b | 4,927,492 | |
Federal National Mortgage Association, Notes | 2.05 | 4/26/13 | 4,180,000 b | 4,217,060 | |
Federal National Mortgage Association, Unscd. Notes | 3.00 | 7/28/14 | 5,765,000 b | 5,883,361 | |
58,734,662 | |||||
U.S. Government Agencies/Mortgage-Backed—13.6% | |||||
Federal Home Loan Mortgage Corp.: | |||||
3.50%, 9/1/10 | 503,937 b | 502,651 | |||
4.00%, 6/1/11—11/1/11 | 3,315,702 b | 3,395,282 | |||
5.00%, 11/1/10—7/1/12 | 3,766,710 b | 3,882,254 | |||
REMIC, Ser. 2937, Cl. VC, | 5.00%, 6/15/14 | 370,331 b | 397,475 | ||
REMIC, Ser. 3196, Cl. CE, 5.25%, 8/15/11 | 326,795 b | 332,693 | |||
REMIC, Ser. 3020, Cl. MA, | 5.50%, 4/15/27 | 173,881 b | 175,688 | ||
REMIC, Ser. 2625, Cl. JD, 3.25%, 7/15/17 | 1,238,410 b | 1,268,706 | |||
REMIC, Ser. 2619, Cl. YK, | 5.00%, 5/15/16 | 2,800,646 b | 2,837,709 | ||
REMIC, Ser. 2495, Cl. UC, | 5.00%, 7/15/32 | 62,284 b | 67,187 | ||
REMIC, Ser. 3137, Cl. PA, | 5.13%, 12/15/13 | 937,553 b | 959,537 | ||
REMIC, Ser. 2557, Cl. VA, 5.50%, 11/15/13 | 1,207,079 b | 1,217,707 | |||
REMIC, Ser. 1961, Cl. H, 6.50%, 5/15/12 | 17,827 b | 18,032 |
The Funds | 29 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Short-Term U.S. Government Securities Fund (continued) | |||||
Principal | Principal | ||||
Bonds and Notes (continued) | Amount ($) | Value ($) | Amount ($) | Value ($) | |
U.S. Government | U.S. Government Agencies/ | ||||
Agencies/Mortgage-Backed | Mortgage-Backed (continued) | ||||
(continued) | Government National Mortgage | ||||
Federal National | Association I (continued): | ||||
Mortgage Association: | Ser. 2004-12, Cl. BA, | ||||
3.50%, 11/1/10 | 155,877 b | 157,160 | 4.81%, 8/16/32 | 2,250,000 | 2,399,524 |
4.00%, 9/10/10—1/1/11 | 264,255 b | 265,697 | Ser. 2006-32, Cl. A, | ||
4.50%, 11/1/10—8/1/13 | 106,280 b | 108,332 | 5.08%, 1/16/30 | 2,479,505 | 2,620,865 |
5.00%, 12/1/10—11/1/13 | 977,360 b | 1,030,972 | Ser. 2004-60, Cl. C, | ||
Ser. 2002-T11, Cl. A, | 5.24%, 3/16/28 | 4,000,000 c | 4,293,238 | ||
4.77%, 4/25/12 | 196,153 b | 201,998 | Ser. 2004-50, Cl. C, | ||
Ser. 2002-T3, Cl. A, | 5.32%, 8/16/30 | 563,650 c | 601,951 | ||
5.14%, 12/25/11 | 306,507 b | 315,064 | 41,410,456 | ||
Ser. 2001-T6, Cl. A, | U.S. Government Securities—60.4% | ||||
5.70%, 5/25/11 | 10,331 b | 10,454 | |||
Ser. 2002-T3, Cl. B, | U.S. Treasury Notes: | ||||
5.76%, 12/25/11 | 270,000 b | 287,012 | 0.63%, 7/31/12 | 3,500,000 a | 3,511,085 |
Ser. 2001-T2, Cl. B, | 0.75%, 8/15/13 | 10,000,000 | 10,014,060 | ||
6.02%, 11/25/10 | 360,000 b | 363,108 | 0.88%, 5/31/11 | 9,500,000 | 9,546,018 |
0.88%, 2/29/12 | 5,500,000 | 5,540,189 | |||
Government National | 1.00%, 7/31/11 | 11,000,000 | 11,073,480 | ||
Mortgage Association I: | 1.00%, 10/31/11 | 11,000,000 | 11,084,216 | ||
Ser. 2008-45, Cl. A, | 1.00%, 12/31/11 | 11,000,000 | 11,091,960 | ||
3.58%, 11/16/27 | 741,909 | 756,751 | 1.00%, 3/31/12 | 2,250,000 | 2,271,008 |
Ser. 2004-23, Cl. AB, | 1.00%, 7/15/13 | 12,250,000 a | 12,358,131 | ||
3.63%, 9/16/27 | 506,838 | 525,572 | 1.13%, 6/30/11 | 11,000,000 | 11,081,213 |
Ser. 2006-68, Cl. A, | 1.13%, 12/15/12 | 4,250,000 | 4,305,118 | ||
3.89%, 7/16/26 | 1,537,554 | 1,587,800 | 1.13%, 6/15/13 | 6,000,000 | 6,074,076 |
Ser. 2006-67, Cl. A, | 1.38%, 5/15/12 | 6,500,000 | 6,603,343 | ||
3.95%, 11/16/30 | 1,657,860 | 1,725,178 | 1.38%, 10/15/12 | 5,000,000 | 5,091,405 |
Ser. 2005-76, Cl. A, | 1.38%, 1/15/13 | 4,000,000 | 4,075,312 | ||
3.96%, 5/16/30 | 888,191 | 926,194 | 1.38%, 2/15/13 | 5,000,000 | 5,094,530 |
Ser. 2005-29, Cl. A, | 1.38%, 5/15/13 | 5,000,000 | 5,097,285 | ||
4.02%, 7/16/27 | 568,094 | 592,156 | 1.50%, 7/15/12 | 5,000,000 | 5,100,585 |
Ser. 2006-3, Cl. A, | 1.75%, 8/15/12 | 5,000,000 | 5,125,585 | ||
4.21%, 1/16/28 | 326,733 | 333,087 | 1.88%, 6/15/12 | 5,000,000 | 5,128,515 |
Ser. 2003-47, Cl. C, | 4.00%, 11/15/12 | 5,000,000 | 5,387,890 | ||
4.23%, 10/16/27 | 828,171 | 845,662 | 4.50%, 4/30/12 | 9,000,000 | 9,612,774 |
Ser. 2008-78, Cl. B, | 4.63%, 8/31/11 | 7,500,000 | 7,823,437 | ||
4.52%, 6/16/32 | 5,500,000 | 5,895,772 | 4.63%, 2/29/12 | 11,000,000 | 11,696,531 |
Ser. 2005-79, Cl. B, | 4.75%, 5/31/12 | 5,000,000 | 5,377,150 | ||
4.65%, 8/16/39 | 480,000 | 511,988 |
30
BNY Mellon Short-Term U.S. Government Securities Fund (continued) | |||||
principal | investment of cash collateral | ||||
Bonds and Notes (continued) | amount ($) | value ($) | for securities loaned—2.0% | shares | value ($) |
U.S. Government Securities (continued) | registered | ||||
U.S. Treasury Notes (continued): | investment company; | ||||
4.88%, 6/30/12 | 5,000,000 | 5,405,665 | dreyfus | ||
184,570,561 | institutional cash | ||||
Total Bonds and Notes | advantage plus fund | ||||
(cost $297,607,430) | 300,464,775 | (cost $5,970,000) | 5,970,000 d | 5,970,000 | |
total investments | |||||
Other Investment—1.4% | shares | value ($) | (cost $307,925,430) | 101.7% | 310,782,775 |
Registered Investment Company; | liabilities, less cash | ||||
Dreyfus Institutional Preferred | and receivables | (1.7%) | (5,088,662) | ||
Plus Money Market Fund | net assets | 100.0% | 305,694,113 | ||
(cost $4,348,000) | 4,348,000 d | 4,348,000 |
GO—General Obligations
a Security, or portion thereof, on loan.At August 31, 2010, the total market value of the fund’s securities on loan is $5,826,674 and the total market value of the collateral held by |
the fund is $5,970,000. |
b On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Federal National Mortgage Association and Federal Home Loan Mortgage Corporation into |
conservatorship with FHFA as the conservator.As such, the FHFA will oversee the continuing affairs of these companies. |
c Variable rate security—interest rate subject to periodic change. |
d Investment in affiliated money market mutual fund. |
Portfolio Summary (Unaudited)† | |||
Value (%) | Value (%) | ||
U.S. Government & Agencies | 93.2 | Municipal Bonds | .3 |
Corporate Bonds | 4.8 | ||
Money Market Investments | 3.4 | 101.7 | |
† Based on net assets. | |||
See notes to financial statements. |
The Funds | 31 |
STATEMENTS OF ASSETS AND LIABILITIES
August 31, 2010
BNY Mellon | BNY Mellon | |||
BNY Mellon | BNY Mellon | Intermediate | Short-Term | |
Bond | Intermediate | U.S. Government | U.S. Government | |
Fund | Bond Fund | Fund | Securities Fund | |
Assets ($): | ||||
Investments in securities—See Statement of Investments† | ||||
(including securities on loan)††—Note 2(b): | ||||
Unaffiliated issuers | 1,449,670,987 | 976,137,301 | 65,300,614 | 300,464,775 |
Affiliated issuers | 13,181,574 | 24,141,666 | 935,000 | 10,318,000 |
Dividends and interest receivable | 11,538,117 | 8,407,353 | 397,185 | 1,191,830 |
Receivable for shares of Beneficial Interest subscribed | 837,785 | 923,726 | — | 677,934 |
Prepaid expenses | 13,347 | 14,290 | 14,699 | 17,742 |
1,475,241,810 | 1,009,624,336 | 66,647,498 | 312,670,281 | |
Liabilities ($): | ||||
Due to The Dreyfus Corporation and affiliates—Note 4(b) | 518,834 | 348,419 | 21,397 | 95,541 |
Due to Administrator—Note 4(a) | 160,750 | 104,957 | 7,031 | 32,394 |
Cash overdraft due to Custodian | 3,101,775 | 1,272,461 | 67,001 | 303,441 |
Liability for securities on loan—Note 2(b) | 962,574 | 13,308,666 | — | 5,970,000 |
Payable for shares of Beneficial Interest redeemed | 805,227 | 775,730 | 2,821 | 533,582 |
Payable for investment securities purchased | 723,073 | 424,062 | — | — |
Accrued expenses | 85,996 | 67,099 | 34,695 | 41,210 |
6,358,229 | 16,301,394 | 132,945 | 6,976,168 | |
Net Assets ($) | 1,468,883,581 | 993,322,942 | 66,514,553 | 305,694,113 |
Composition of Net Assets ($): | ||||
Paid-in capital | 1,404,883,225 | 954,189,157 | 64,583,410 | 311,662,462 |
Accumulated undistributed investment income—net | 2,360,137 | 1,123,674 | 241,799 | 260,652 |
Accumulated net realized gain (loss) on investments | (11,711,890) | (13,703,735) | (937,359) | (9,086,346) |
Accumulated net unrealized appreciation | ||||
(depreciation) on investments | 73,352,109 | 51,713,846 | 2,626,703 | 2,857,345 |
Net Assets ($) | 1,468,883,581 | 993,322,942 | 66,514,553 | 305,694,113 |
Net Asset Value Per Share | ||||
Class M Shares | ||||
Net Assets ($) | 1,455,912,935 | 988,555,423 | 59,832,268 | 304,707,357 |
Shares Outstanding | 108,958,038 | 75,183,638 | 5,808,368 | 24,581,657 |
Net Asset Value Per Share ($) | 13.36 | 13.15 | 10.30 | 12.40 |
Investor Shares | ||||
Net Assets ($) | 12,970,646 | 4,767,519 | 6,682,285 | 986,756 |
Shares Outstanding | 972,496 | 362,651 | 649,418 | 79,605 |
Net Asset Value Per Share ($) | 13.34 | 13.15 | 10.29 | 12.40 |
† Investments at cost ($): | ||||
Unaffiliated issuers | 1,376,318,878 | 924,423,455 | 62,673,911 | 297,607,430 |
Affiliated issuers | 13,181,574 | 24,141,666 | 935,000 | 10,318,000 |
††Value of securities on loan ($) | 7,260,175 | 16,394,625 | — | 5,826,674 |
See notes to financial statements. |
32
STATEMENTS OF OPERATIONS
Year Ended August 31, 2010
BNY Mellon | BNY Mellon | |||
BNY Mellon | BNY Mellon | Intermediate | Short-Term | |
Bond | Intermediate | U.S. Government | U.S. Government | |
Fund | Bond Fund | Fund | Securities Fund | |
Investment Income ($): | ||||
Income: | ||||
Interest | 54,561,982 | 30,204,966 | 1,503,713 | 3,959,351 |
Income from securities lending—Note 2(b) | 79,436 | 79,227 | — | 22,968 |
Dividends; | ||||
Affiliated issuers | 38,726 | 19,472 | 1,356 | 6,136 |
Total Income | 54,680,144 | 30,303,665 | 1,505,069 | 3,988,455 |
Expenses: | ||||
Investment advisory fee—Note 4(a) | 5,685,901 | 3,704,487 | 319,488 | 874,508 |
Administration fee—Note 4(a) | 1,789,492 | 1,162,796 | 80,229 | 313,666 |
Custodian fees—Note 4(b) | 104,127 | 69,369 | 5,789 | 21,821 |
Trustees’ fees and expenses—Note 4(c) | 82,705 | 59,306 | 3,681 | 11,944 |
Professional fees | 54,935 | 39,437 | 25,155 | 32,578 |
Registration fees | 45,121 | 42,227 | 23,125 | 34,340 |
Loan commitment fees—Note 3 | 23,662 | 10,924 | 692 | 2,284 |
Shareholder servicing costs—Note 4(b) | 21,671 | 7,350 | 17,358 | 2,532 |
Prospectus and shareholders’ reports | 16,859 | 2,952 | 2,001 | 3,443 |
Interest expenses—Note 3 | 119 | — | — | — |
Miscellaneous | 45,578 | 32,678 | 12,035 | 18,691 |
Total Expenses | 7,870,170 | 5,131,526 | 489,553 | 1,315,807 |
Less—reduction in investment advisory fee | ||||
due to undertaking—Note 4(a) | — | — | (57,783) | — |
Less—reduction in fees due to earnings credits—Note 2(b) | (11) | (2) | (9) | (1) |
Net Expenses | 7,870,159 | 5,131,524 | 431,761 | 1,315,806 |
Investment Income—Net | 46,809,985 | 25,172,141 | 1,073,308 | 2,672,649 |
Realized and Unrealized Gain (Loss) | ||||
on Investments—Note 5 ($): | ||||
Net realized gain (loss) on investments | 26,793,639 | 9,510,348 | 718,436 | 1,181,656 |
Net unrealized appreciation (depreciation) on investments | 33,824,361 | 24,451,432 | 1,360,631 | 937,169 |
Net Realized and Unrealized Gain (Loss) on Investments | 60,618,000 | 33,961,780 | 2,079,067 | 2,118,825 |
Net Increase in Net Assets Resulting from Operations | 107,427,985 | 59,133,921 | 3,152,375 | 4,791,474 |
See notes to financial statements. |
The Funds | 33 |
STATEMENTS OF CHANGES IN NET ASSETS
BNY Mellon Bond Fund | BNY Mellon Intermediate Bond Fund | |||
Year Ended August 31, | Year Ended August 31, | |||
2010 | 2009 | 2010 | 2009 | |
Operations ($): | ||||
Investment income—net | 46,809,985 | 54,032,126 | 25,172,141 | 29,239,763 |
Net realized gain (loss) on investments | 26,793,639 | 16,537,787 | 9,510,348 | 12,221,381 |
Net unrealized appreciation | ||||
(depreciation) on investments | 33,824,361 | 39,685,098 | 24,451,432 | 19,208,873 |
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 107,427,985 | 110,255,011 | 59,133,921 | 60,670,017 |
Dividends to Shareholders from ($): | ||||
Investment income—net: | ||||
Class M Shares | (57,273,181) | (58,247,597) | (34,238,003) | (32,576,539) |
Investor Shares | (317,453) | (263,404) | (105,565) | (94,171) |
Total Dividends | (57,590,634) | (58,511,001) | (34,343,568) | (32,670,710) |
Beneficial Interest Transactions ($): | ||||
Net proceeds from shares sold: | ||||
Class M Shares | 367,138,065 | 293,374,520 | 345,023,068 | 241,233,668 |
Investor Shares | 9,726,748 | 4,494,530 | 6,082,988 | 2,047,837 |
Net assets received in connection | ||||
with reorganization—Note 1 | — | 350,017,847 | — | — |
Dividends reinvested: | ||||
Class M Shares | 7,264,737 | 8,215,269 | 6,687,797 | 6,445,031 |
Investor Shares | 230,353 | 216,551 | 94,585 | 89,174 |
Cost of shares redeemed: | ||||
Class M Shares | (308,825,208) | (356,324,127) | (244,678,747) | (204,607,212) |
Investor Shares | (4,008,682) | (3,111,432) | (4,224,495) | (1,117,030) |
Increase (Decrease) in Net Assets from | ||||
Beneficial Interest Transactions | 71,526,013 | 296,883,158 | 108,985,196 | 44,091,468 |
Total Increase (Decrease) in Net Assets | 121,363,364 | 348,627,168 | 133,775,549 | 72,090,775 |
Net Assets ($): | ||||
Beginning of Period | 1,347,520,217 | 998,893,049 | 859,547,393 | 787,456,618 |
End of Period | 1,468,883,581 1,347,520,217 | 993,322,942 | 859,547,393 | |
Undistributed investment income—net | 2,360,137 | 2,615,477 | 1,123,674 | 1,979,117 |
Capital Share Transactions (Shares): | ||||
Class M Shares | ||||
Shares sold | 28,162,871 | 23,339,898 | 26,754,599 | 19,275,702 |
Shares issued in connection with reorganization—Note 1 | — | 27,975,747 | — | — |
Shares issued for dividends reinvested | 555,927 | 657,994 | 517,830 | 519,363 |
Shares redeemed | (23,661,002) | (28,453,495) | (18,985,466) | (16,448,153) |
Net Increase (Decrease) in Shares Outstanding | 5,057,796 | 23,520,144 | 8,286,963 | 3,346,912 |
Investor Shares | ||||
Shares sold | 741,666 | 360,773 | 469,607 | 165,399 |
Shares issued in connection with reorganization—Note 1 | — | 108,612 | — | — |
Shares issued for dividends reinvested | 17,645 | 17,362 | 7,308 | 7,173 |
Shares redeemed | (306,534) | (247,833) | (328,177) | (89,349) |
Net Increase (Decrease) in Shares Outstanding | 452,777 | 238,914 | 148,738 | 83,223 |
See notes to financial statements. |
34
BNY Mellon Intermediate U.S. Government Fund | |||
Year Ended | Eight Months Ended | Year Ended | |
August 31, 2010 | August 31, 2009a | December 31, 2008b | |
Operations ($): | |||
Investment income—net | 1,073,308 | 1,220,786 | 4,827,997 |
Net realized gain (loss) on investments | 718,436 | 2,320,353 | 1,949,660 |
Net unrealized appreciation (depreciation) on investments | 1,360,631 | (3,282,653) | 2,702,619 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,152,375 | 258,486 | 9,480,276 |
Dividends to Shareholders from ($): | |||
Investment income—net: | |||
Class M Shares | (1,804,997) | (1,569,585) | (4,101,999) |
Investor Shares | (190,012) | (109,278) | (208,291) |
Net realized gain on investments: | |||
Class M Shares | (829,682) | (19,870) | — |
Investor Shares | (95,399) | (879) | — |
Total Dividends | (2,920,090) | (1,699,612) | (4,310,290) |
Beneficial Interest Transactions ($): | |||
Net proceeds from shares sold: | |||
Class M Shares | 17,557,948 | 8,784,571 | 86,183,073 |
Investor Shares | 287,498 | 1,346,713 | 332,350 |
Dividends reinvested: | |||
Class M Shares | 890,528 | 473,876 | 2,049,935 |
Investor Shares | 262,075 | 97,947 | 190,880 |
Cost of shares redeemed: | |||
Class M Shares | (14,862,578) | (72,851,270) | (78,823,733) |
Investor Shares | (477,536) | (1,048,361) | (505,041) |
Increase (Decrease) in Net Assets from | |||
Beneficial Interest Transactions | 3,657,935 | (63,196,524) | 9,427,464 |
Total Increase (Decrease) in Net Assets | 3,890,220 | (64,637,650) | 14,597,450 |
Net Assets ($): | |||
Beginning of Period | 62,624,333 | 127,261,983 | 112,664,533 |
End of Period | 66,514,553 | 62,624,333 | 127,261,983 |
Undistributed investment income—net | 241,799 | 286,100 | 28,689 |
Capital Share Transactions (Shares): | |||
Class M Shares | |||
Shares sold | 1,723,129 | 848,517 | 8,579,424 |
Shares issued for dividends reinvested | 87,814 | 45,839 | 203,055 |
Shares redeemed | (1,461,517) | (7,029,874) | (7,859,101) |
Net Increase (Decrease) in Shares Outstanding | 349,426 | (6,135,518) | 923,378 |
Investor Shares | |||
Shares sold | 27,940 | 130,562 | 32,504 |
Shares issued for dividends reinvested | 25,807 | 9,533 | 18,926 |
Shares redeemed | (46,765) | (101,311) | (50,126) |
Net Increase (Decrease) in Shares Outstanding | 6,982 | 38,784 | 1,304 |
a The fund has changed its fiscal year end from December 31 to August 31. |
b Represents information for the fund’s predecessor, BNY Hamilton Intermediate Government Fund, through September 12, 2008. |
See notes to financial statements.
The Funds | 35 |
STATEMENTS OF CHANGES IN NET ASSETS (continued)
BNY Mellon Short-Term U.S. Government Securities Fund | ||
Year Ended August 31, | ||
2010 | 2009 | |
Operations ($): | ||
Investment income—net | 2,672,649 | 3,514,091 |
Net realized gain (loss) on investments | 1,181,656 | 3,388,682 |
Net unrealized appreciation (depreciation) on investments | 937,169 | 153,609 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 4,791,474 | 7,056,382 |
Dividends to Shareholders from ($): | ||
Investment income—net: | ||
Class M Shares | (4,677,556) | (4,765,029) |
Investor Shares | (15,711) | (12,654) |
Total Dividends | (4,693,267) | (4,777,683) |
Beneficial Interest Transactions ($): | ||
Net proceeds from shares sold: | ||
Class M Shares | 257,459,398 | 100,559,540 |
Investor Shares | 903,260 | 1,399,387 |
Dividends reinvested: | ||
Class M Shares | 1,087,611 | 838,600 |
Investor Shares | 3,820 | 8,856 |
Cost of shares redeemed: | ||
Class M Shares | (130,942,023) | (60,522,672) |
Investor Shares | (757,806) | (671,373) |
Increase (Decrease) in Net Assets from | ||
Beneficial Interest Transactions | 127,754,260 | 41,612,338 |
Total Increase (Decrease) in Net Assets | 127,852,467 | 43,891,037 |
Net Assets ($): | ||
Beginning of Period | 177,841,646 | 133,950,609 |
End of Period | 305,694,113 | 177,841,646 |
Undistributed investment income—net | 260,652 | 178,655 |
Capital Share Transactions (Shares): | ||
Class M Shares | ||
Shares sold | 20,783,982 | 8,111,575 |
Shares issued for dividends reinvested | 87,811 | 67,693 |
Shares redeemed | (10,571,625) | (4,876,648) |
Net Increase (Decrease) in Shares Outstanding | 10,300,168 | 3,302,620 |
Investor Shares | ||
Shares sold | 72,868 | 113,080 |
Shares issued for dividends reinvested | 308 | 715 |
Shares redeemed | (61,105) | (53,958) |
Net Increase (Decrease) in Shares Outstanding | 12,071 | 59,837 |
See notes to financial statements. |
36
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class of each BNY Mellon fixed income fund 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 each fund would have increased (or decreased) during the period, assuming you had reinvested all dividends and distributions.These figures have been derived from each fund’s financial statements.
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.90 | 12.38 | 12.24 | 12.23 | 12.66 |
Investment Operations: | |||||
Investment income—neta | .43 | .52 | .60 | .57 | .52 |
Net realized and unrealized | |||||
gain (loss) on investments | .56 | .56 | .15 | .04 | (.38) |
Total from Investment Operations | .99 | 1.08 | .75 | .61 | .14 |
Distributions: | |||||
Dividends from investment income—net | (.53) | (.56) | (.61) | (.60) | (.57) |
Net asset value, end of period | 13.36 | 12.90 | 12.38 | 12.24 | 12.23 |
Total Return (%) | 7.84 | 8.95 | 6.17 | 5.06 | 1.20 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .55 | .56 | .55 | .56 | .56 |
Ratio of net expenses to average net assetsb | .55 | .56 | .55 | .56 | .56 |
Ratio of net investment income to average net assets | 3.29 | 4.15 | 4.78 | 4.67 | 4.27 |
Portfolio Turnover Rate | 99.66 | 62.19 | 60.76 | 134.49 | 104.53c |
Net Assets, end of period ($ x 1,000) | 1,455,913 | 1,340,824 | 995,421 | 944,416 | 885,994 |
a Based on average shares outstanding at each month end. |
b Expense waivers and/or reimbursements amounted to less than .01%. |
c The portfolio turnover rate excluding mortgage dollar roll transactions for the period ended August 31, 2006 was 101.12%. |
See notes to financial statements.
The Funds | 37 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.88 | 12.36 | 12.21 | 12.21 | 12.63 |
Investment Operations: | |||||
Investment income—neta | .39 | .50 | .56 | .53 | .49 |
Net realized and unrealized | |||||
gain (loss) on investments | .57 | .54 | .16 | .04 | (.37) |
Total from Investment Operations | .96 | 1.04 | .72 | .57 | .12 |
Distributions: | |||||
Dividends from investment income—net | (.50) | (.52) | (.57) | (.57) | (.54) |
Net asset value, end of period | 13.34 | 12.88 | 12.36 | 12.21 | 12.21 |
Total Return (%) | 7.60 | 8.74 | 5.81 | 4.82 | 1.01 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .81 | .81 | .80 | .81 | .80 |
Ratio of net expenses to average net assetsb | .81 | .81 | .80 | .81 | .80 |
Ratio of net investment income to average net assets | 3.03 | 3.88 | 4.52 | 4.42 | 4.02 |
Portfolio Turnover Rate | 99.66 | 62.19 | 60.76 | 134.49 | 104.53c |
Net Assets, end of period ($ x 1,000) | 12,971 | 6,696 | 3,472 | 4,621 | 3,319 |
a Based on average shares outstanding at each month end. |
b Expense waivers and/or reimbursements amounted to less than .01%. |
c The portfolio turnover rate excluding mortgage dollar roll transactions for the period ended August 31, 2006 was 101.12%. |
See notes to financial statements.
38
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Intermediate Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.81 | 12.37 | 12.19 | 12.14 | 12.47 |
Investment Operations: | |||||
Investment income—neta | .35 | .46 | .55 | .53 | .46 |
Net realized and unrealized | |||||
gain (loss) on investments | .47 | .50 | .21 | .09 | (.26) |
Total from Investment Operations | .82 | .96 | .76 | .62 | .20 |
Distributions: | |||||
Dividends from investment income—net | (.48) | (.52) | (.58) | (.57) | (.53) |
Net asset value, end of period | 13.15 | 12.81 | 12.37 | 12.19 | 12.14 |
Total Return (%) | 6.52 | 8.07 | 6.19 | 5.22 | 1.69 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .55 | .56 | .55 | .56 | .56 |
Ratio of net expenses to average net assets | .55b | .56b | .55b | .56 | .56 |
Ratio of net investment income to average net assets | 2.72 | 3.75 | 4.43 | 4.36 | 3.79 |
Portfolio Turnover Rate | 44.58 | 53.05 | 53.28 | 84.24 | 86.50 |
Net Assets, end of period ($ x 1,000) | 988,555 | 856,808 | 785,841 | 725,064 | 656,120 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds | 39 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Intermediate Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.81 | 12.36 | 12.19 | 12.14 | 12.47 |
Investment Operations: | |||||
Investment income—neta | .31 | .43 | .53 | .48 | .43 |
Net realized and unrealized | |||||
gain (loss) on investments | .48 | .51 | .18 | .11 | (.26) |
Total from Investment Operations | .79 | .94 | .71 | .59 | .17 |
Distributions: | |||||
Dividends from investment income—net | (.45) | (.49) | (.54) | (.54) | (.50) |
Net asset value, end of period | 13.15 | 12.81 | 12.36 | 12.19 | 12.14 |
Total Return (%) | 6.26 | 7.78 | 5.91 | 4.96 | 1.43 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .81 | .81 | .80 | .81 | .81 |
Ratio of net expenses to average net assets | .81b | .81b | .80b | .81 | .81 |
Ratio of net investment income to average net assets | 2.44 | 3.48 | 4.19 | 4.10 | 3.55 |
Portfolio Turnover Rate | 44.58 | 53.05 | 53.28 | 84.24 | 86.50 |
Net Assets, end of period ($ x 1,000) | 4,768 | 2,740 | 1,616 | 1,931 | 681 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
40
Class M Shares† | ||||||
BNY Mellon Intermediate | Year Ended | Eight Months Ended | Year Ended December 31, | |||
U.S. Government Fund | August 31, 2010 | August 31, 2009a | 2008 | 2007 | 2006 | 2005 |
Per Share Data ($): | ||||||
Net asset value, beginning of period | 10.27 | 10.43 | 9.99 | 9.81 | 9.94 | 10.15 |
Investment Operations: | ||||||
Investment income—netb | .17 | .14 | .42 | .42 | .42 | .39 |
Net realized and unrealized | ||||||
gain (loss) on investments | .33 | (.10) | .39 | .23 | (.08) | (.14) |
Total from Investment Operations | .50 | .04 | .81 | .65 | .34 | .25 |
Distributions: | ||||||
Dividends from investment income—net | (.32) | (.20) | (.37) | (.47) | (.47) | (.46) |
Dividends from net realized gain on investments | (.15) | (.00)c | — | — | — | — |
Total Distributions | (.47) | (.20) | (.37) | (.47) | (.47) | (.46) |
Net asset value, end of period | 10.30 | 10.27 | 10.43 | 9.99 | 9.81 | 9.94 |
Total Return (%) | 5.03 | .41d | 8.31 | 6.80 | 3.58 | 2.51 |
Ratios/Supplemental Data (%): | ||||||
Ratio of total expenses to average net assets | .74 | .78e | .76 | .77 | .78 | .78 |
Ratio of net expenses to average net assets | .65 | .65e | .65 | .65 | .65 | .65 |
Ratio of net investment income | ||||||
to average net assets | 1.71 | 2.08e | 4.12 | 4.31 | 4.27 | 3.88 |
Portfolio Turnover Rate | 60.52 | 56.74d | 85.47 | 57 | 21 | 29 |
Net Assets, end of period ($ x 1,000) | 59,832 | 56,037 | 120,970 | 106,650 | 103,686 | 114,209 |
† Represents information for Institutional shares of the fund’s predecessor, BNY Hamilton Intermediate Government Fund, through September 12, 2008. |
a The fund has changed its fiscal year end from December 31 to August 31. |
b Based on average shares outstanding at each month end. |
c Amount represents less than $.01 per share. |
d Not annualized. |
e Annualized. |
See notes to financial statements.
The Funds | 41 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares† | ||||||
BNY Mellon Intermediate | Year Ended | Eight Months Ended | Year Ended December 31, | |||
U.S. Government Fund | August 31, 2010 | August 31, 2009a | 2008 | 2007 | 2006 | 2005 |
Per Share Data ($): | ||||||
Net asset value, beginning of period | 10.25 | 10.42 | 9.98 | 9.80 | 9.93 | 10.14 |
Investment Operations: | ||||||
Investment income—netb | .15 | .13 | .39 | .40 | .39 | .36 |
Net realized and unrealized | ||||||
gain (loss) on investments | .34 | (.12) | .40 | .23 | (.07) | (.14) |
Total from Investment Operations | .49 | .01 | .79 | .63 | .32 | .22 |
Distributions: | ||||||
Dividends from investment income—net | (.30) | (.18) | (.35) | (.45) | (.45) | (.43) |
Dividends from net realized gain on investments | (.15) | (.00)c | — | — | — | — |
Total Distributions | (.45) | (.18) | (.35) | (.45) | (.45) | (.43) |
Net asset value, end of period | 10.29 | 10.25 | 10.42 | 9.98 | 9.80 | 9.93 |
Total Return (%) | 4.87 | .14d | 8.06 | 6.53 | 3.32 | 2.25 |
Ratios/Supplemental Data (%): | ||||||
Ratio of total expenses to average net assets | .99 | 1.04e | 1.01 | 1.02 | 1.03 | 1.03 |
Ratio of net expenses to average net assets | .90 | .90e | .90 | .90 | .90 | .90 |
Ratio of net investment income | ||||||
to average net assets | 1.46 | 1.89e | 3.87 | 4.06 | 4.02 | 3.62 |
Portfolio Turnover Rate | 60.52 | 56.74d | 85.47 | 57 | 21 | 29 |
Net Assets, end of period ($ x 1,000) | 6,682 | 6,588 | 6,292 | 6,015 | 6,319 | 7,161 |
† Represents information for Class A shares of the fund’s predecessor, BNY Hamilton Intermediate Government Fund, through September 12, 2008. |
a The fund has changed its fiscal year end from December 31 to August 31. |
b Based on average shares outstanding at each month end. |
c Amount represents less than $.01 per share. |
d Not annualized. |
e Annualized. |
See notes to financial statements.
42
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Short-Term U.S. Government Securities Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.39 | 12.19 | 12.02 | 11.99 | 12.14 |
Investment Operations: | |||||
Investment income���neta | .13 | .29 | .46 | .56 | .39 |
Net realized and unrealized | |||||
gain (loss) on investments | .11 | .30 | .23 | .03 | (.06) |
Total from Investment Operations | .24 | .59 | .69 | .59 | .33 |
Distributions: | |||||
Dividends from investment income—net | (.23) | (.39) | (.52) | (.56) | (.48) |
Net asset value, end of period | 12.40 | 12.39 | 12.19 | 12.02 | 11.99 |
Total Return (%) | 1.96 | 4.90 | 5.83 | 5.05 | 2.78 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .53 | .56 | .55 | .55 | .54 |
Ratio of net expenses to average net assets | .53b | .56b | .55b | .55 | .54 |
Ratio of net investment income to average net assets | 1.07 | 2.32 | 3.79 | 4.65 | 3.24 |
Portfolio Turnover Rate | 59.58 | 117.43 | 84.77 | 127.30 | 85.97 |
Net Assets, end of period ($ x 1,000) | 304,707 | 177,005 | 133,857 | 128,628 | 131,885 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds | 43 |
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Short-Term U.S. Government Securities Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.39 | 12.20 | 12.02 | 12.00 | 12.14 |
Investment Operations: | |||||
Investment income—neta | .11 | .23 | .45 | .49 | .41 |
Net realized and unrealized | |||||
gain (loss) on investments | .10 | .32 | .22 | .06 | (.10) |
Total from Investment Operations | .21 | .55 | .67 | .55 | .31 |
Distributions: | |||||
Dividends from investment income—net | (.20) | (.36) | (.49) | (.53) | (.45) |
Net asset value, end of period | 12.40 | 12.39 | 12.20 | 12.02 | 12.00 |
Total Return (%) | 1.73 | 4.63 | 5.55 | 4.67 | 2.62 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .78 | .82 | .79 | .80 | .77 |
Ratio of net expenses to average net assets | .78b | .82b | .79b | .80 | .77 |
Ratio of net investment income to average net assets | .84 | 1.93 | 3.61 | 4.51 | 3.25 |
Portfolio Turnover Rate | 59.58 | 117.43 | 84.77 | 127.30 | 85.97 |
Net Assets, end of period ($ x 1,000) | 987 | 837 | 94 | 140 | 281 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
44
NOTES TO FINANCIAL STATEMENTS
NOTE 1—General:
BNY Mellon Funds Trust (the “Trust”) was organized as a Massachusetts business trust 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 consisting of twenty-five series including the following diversified fixed income funds: BNY Mellon Bond Fund, BNY Mellon Intermediate Bond Fund, BNY Mellon Intermediate U.S. Government Fund and BNY Mellon Short-Term U.S. Government Securities Fund (each, a “fund” and collectively, the “funds”). BNY Mellon Bond Fund’s and BNY Mellon Intermediate Bond Fund’s investment objective seek total return (consisting of capital appreciation and current income). BNY Mellon Intermediate U.S. Government Fund’s and BNY Mellon Short-Term U.S. Government Securities Fund’s investment objective seek to provide as high a level of current income as is consistent with the preservation of capital.
As of the close of business on September 12, 2008, pursuant to an Agreement and Plan of Reorganization previously approved by the Trust’s Board, all of the assets, subject to the liabilities, of BNY Hamilton Core Bond Fund, a series of BNY Hamilton Funds, Inc., were transferred to the BNY Mellon Bond Fund in exchange for the corresponding class of shares of Beneficial Interest of the BNY Mellon Bond Fund of equal value. Shareholders of Institutional and Class A shares of the BNY Hamilton Core Bond Fund received Class M and Investor shares of the BNY Mellon Bond Fund, respectively, in each case in an amount equal to the aggregate net asset value of their investment in the BNY Hamilton Core Bond Fund at the time of the exchange. The exchange ratios for Class M and Investor shares were .783 and .785, respectively.The net asset value of the BNY Mellon Bond Fund’s shares on the close of business September 12, 2008, after the reorganization, was $12.46 for Class M shares and $12.44 for Investor shares, and a total of $27,975,747 Class M shares and 108,612 Investor shares, representing net assets of
$350,017,847 (including $3,889,798 net unrealized appreciation on investments) were issued to shareholders of the BNY Hamilton Core Bond Fund in the exchange. The exchange was a tax-free event to the shareholders of the BNY Hamilton Core Bond Fund.
BNY Mellon Fund Advisers, a division of The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as each fund’s investment adviser (“Investment Adviser”).The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, serves as administrator for the funds pursuant to an Administration Agreement with the Trust (the “Administration Agreement”). The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of New York Mellon pays Dreyfus for performing certain administrative services. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of each fund’s shares, which are sold without a sales charge.
The Trust is authorized to issue an unlimited number of shares of Beneficial Interest, par value $.001 per share, in each of the Class M and Investor shares of each fund. Each class of shares has similar rights and privileges, except with respect to the expenses borne by and the shareholder services offered to each class and the shareholder services plan applicable to the Investor shares, the allocation of certain transfer agency costs and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
TheTrust accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses that are applicable to all series are allocated among them on a pro rata basis.
The Funds | 45 |
NOTES TO FINANCIAL STATEMENTS (continued)
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) has become the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants.The ASC has superseded all existing non-SEC accounting and reporting standards. Each fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assump-tions.Actual results could differ from those estimates.
NOTE 2—Significant Accounting Policies:
(a) Portfolio valuation: Investments in securities excluding short-term investments (other than U.S. Treasury Bills), are valued each business day by an independent pricing service (the “Service”) approved by the Trust’s Board. 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, coup on, maturity and type; indications as to values from dealers; and general market conditions. Restricted securities, as well as securities or other assets for which recent market quotations are not readily available and are not valued by a pricing service approved by the Trust’s Board, or are determined by the funds not to reflect accurately fair value, are valued at fair value as determined in good faith under the direction of the Trust’s Board.The factors that may be considered when fair valuing a security include fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public
trading in similar securities of the issuer or comparable issuers. Short-term investments, excluding U.S. Treasury Bills, are carried at amortized cost, which approximates value. Registered investment companies that are not traded on an exchange are valued at their net asset value.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value.This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of each fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets
for identical investments.
Level 2—other significant observable inputs (includ-
ing quoted prices for similar investments, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including
the funds’ own assumptions in determining the fair
value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Table 1 summarizes the inputs used as of August 31, 2010 in valuing each fund’s investments.
46
Table 1. | |||||||
Investments in Securities | |||||||
Level 2—Other | |||||||
Level 1—Unadjusted | Significant | Level 3—Significant | |||||
Quoted Prices | Observable Inputs | Unobservable Inputs | |||||
Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Total | |
BNY Mellon Bond Fund | |||||||
Asset-Backed | — | — | 49,873,375 | — | — | — | 49,873,375 |
Commercial | |||||||
Mortgage-Backed | — | — | 77,593,562 | — | — | — | 77,593,562 |
Corporate Bonds† | — | — | 374,185,869 | — | — | — | 374,185,869 |
Equity Securities—Domestic† | 65,732 | — | — | — | — | — | 65,732 |
Foreign Government | — | — | 20,298,972 | — | — | — | 20,298,972 |
Municipal Bonds | — | — | 43,505,824 | — | — | — | 43,505,824 |
Mutual Funds | 13,181,574 | — | — | — | — | — | 13,181,574 |
Residential | |||||||
Mortgage-Backed | — | — | 4,655,818 | — | — | — | 4,655,818 |
U.S. Government Agencies/ | |||||||
Mortgage-Backed | — | — | 583,836,944 | — | — | — | 583,836,944 |
U.S. Treasury | — | — | 295,654,891 | — | — | — | 295,654,891 |
BNY Mellon Intermediate | |||||||
Bond Fund | |||||||
Asset-Backed | — | — | 7,165,973 | — | — | — | 7,165,973 |
Corporate Bonds† | — | — | 355,509,569 | — | — | — | 355,509,569 |
Foreign Government | — | — | 14,699,960 | — | — | — | 14,699,960 |
Municipal Bonds | — | — | 15,485,452 | — | — | — | 15,485,452 |
Mutual Funds | 24,141,666 | — | — | — | — | — | 24,141,666 |
U.S. Government | |||||||
Agencies/ | |||||||
Mortgage-Backed | — | — | 135,205,866 | — | — | — | 135,205,866 |
U.S. Treasury | — | — | 448,070,481 | — | — | — | 448,070,481 |
BNY Mellon Intermediate | |||||||
U.S. Government Fund | |||||||
Corporate Bonds† | — | — | 1,374,136 | — | — | — | 1,374,136 |
Mutual Funds | 935,000 | — | — | — | — | — | 935,000 |
U.S. Government Agencies/ | |||||||
Mortgage-Backed | — | — | 26,677,220 | — | — | — | 26,677,220 |
U.S. Treasury | — | — | 37,249,258 | — | — | — | 37,249,258 |
Bny Mellon Short-Term U.S. | |||||||
Government Securities Fund | |||||||
Corporate Bonds† | — | — | 14,696,526 | — | — | — | 14,696,526 |
Municipal Bonds | — | — | 1,052,570 | — | — | — | 1,052,570 |
Mutual Funds | 10,318,000 | — | — | — | — | — | 10,318,000 |
U.S. Government | |||||||
Agencies/ | |||||||
Mortgage-Backed | — | — | 100,145,118 | — | — | — | 100,145,118 |
U.S. Treasury | — | — | 184,570,561 | — | — | — | 184,570,561 |
† | See Statement of Investments for industry classification. |
The Funds | 47 |
NOTES TO FINANCIAL STATEMENTS (continued)
In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the funds. No significant transfers between Level 1 or Level 2 fair value measurements occurred at August 31, 2010.The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. These new and rev ised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have on the funds’ financial statement disclosures.
(b) Securities transactions and investment income:
Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded 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 funds have arrangements with the custodian and cash management bank whereby the funds may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the funds include net earnings credits as an expense offset in the Statements of Operations.
Pursuant to a securities lending agreement withThe Bank of NewYork Mellon, the funds may lend securities to certain qualified institutions. It is the funds’ policy that, at
origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by Dreyfus, U.S. Government and Agency securities or letters of credit. The funds are 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 funds 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. Table 2 summarizes the amount The Bank of NewYork Mellon earned from each relevant fund from lending portfolio securities pursuant to the securities lending agreement during the period ended August 31, 2010.
Table 2. | |
BNY Mellon Bond Fund | $42,773 |
BNY Mellon Intermediate Bond Fund | 42,661 |
BNY Mellon Short-Term U.S. | |
Government Securities Fund | 12,367 |
(c) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” in the Act.
The funds may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Table 3 summarizes each fund’s investments in affiliated investment companies for the period ended August 31, 2010.
(d) Concentration of Risk: The funds invest primarily in debt securities. Failure of an issuer of the debt securities to make timely interest or principal payments, or a decline or the perception of a decline in the credit quality of a debt security, can cause the debt security’s price to fall, potentially lowering each fund’s share price. In addition, the value of the debt securities may decline due to general market conditions that are not specifically
48
related to a particular company, such as real or perceived adverse economic conditions, changes in outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment. They may also decline because of factors that affect a particular industry.
(e) Dividends to shareholders: Dividends payable to shareholders are recorded by the funds on the ex-dividend date. The funds declare and pay dividends from investment income-net monthly. With respect to each series, dividends from net realized capital gains, if any, are normally declared and paid annually, but the funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers of that fund, it is the policy of the funds not to distribute such gains. Income and capital
gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
(f) Federal income taxes: It is the policy of each 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. For federal income tax purposes, each series is treated as a single entity for the purpose of determining such qualification.
As of and during the period ended August 31, 2010, the funds did not have any liabilities for any uncertain tax positions. The funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period, the funds did not incur any interest or penalties.
Table 3. | |||||
Value | Value | Net | |||
8/31/2009 ($) | Purchases ($) | Sales ($) | 8/31/2010 ($) | Assets (%) | |
BNY Mellon Bond Fund | |||||
Dreyfus Institutional Preferred | |||||
Plus Money Market Fund | 15,193,000 | 607,227,000 | 610,201,000 | 12,219,000 | .8 |
Dreyfus Institutional Cash | |||||
Advantage Plus Fund | 322,744,279 | 502,004,365 | 823,786,070 | 962,574 | .1 |
Total | 337,937,279 | 1,109,231,365 | 1,433,987,070 | 13,181,574 | .9 |
BNY Mellon Intermediate Bond Fund | |||||
Dreyfus Institutional Preferred | |||||
Plus Money Market Fund | 12,249,000 | 236,775,000 | 238,191,000 | 10,833,000 | 1.1 |
Dreyfus Institutional Cash | |||||
Advantage Plus Fund | 314,418,725 | 812,491,726 | 1,113,601,785 | 13,308,666 | 1.3 |
Total | 326,667,725 | 1,049,266,726 | 1,351,792,785 | 24,141,666 | 2.4 |
BNY Mellon Intermediate | |||||
U.S. Government Fund | |||||
Dreyfus Institutional Preferred | |||||
Plus Money Market Fund | 501,000 | 24,926,000 | 24,492,000 | 935,000 | 1.4 |
BNY Mellon Short-Term U.S. | |||||
Government Securities Fund | |||||
Dreyfus Institutional Preferred | |||||
Plus Money Market Fund | 1,640,000 | 149,041,000 | 146,333,000 | 4,348,000 | 1.4 |
Dreyfus Institutional Cash | |||||
Advantage Plus Fund | 77,414,121 | 342,187,799 | 413,631,920 | 5,970,000 | 2.0 |
Total | 79,054,121 | 491,228,799 | 559,964,920 | 10,318,000 | 3.4 |
The Funds | 49 |
NOTES TO FINANCIAL STATEMENTS (continued)
Each of the tax years in the four-year period ended August 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.
Table 4 summarizes each fund’s components of accumulated earnings on a tax basis at August 31, 2010.
Table 5 summarizes each relevant fund’s accumulated capital loss carryover available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to August 31, 2010.
Table 6 summarizes each fund’s tax character of distributions paid to shareholders during the fiscal periods ended August 31, 2010 and August 31, 2009.
During the period ended August 31, 2010, as a result of permanent book to tax differences, primarily due to amortization of premiums and paydown gains and losses on mortgage backed securities, the funds increased accumulated undistributed investment income-net and decreased accumulated net realized gain (loss) on invest-
Table 4. | |||||||||
Undistributed | Accumulated | Undistributed | Capital Losses | ||||||
Ordinary | Capital | Capital | Unrealized | Realized After | |||||
Income ($) | Losses ($) | Gains ($) | Appreciation ($) October 31, 2009 ($)† | ||||||
BNY Mellon Bond Fund | 2,360,137 | (7,345,590) | — | 68,985,809 | — | ||||
BNY Mellon Intermediate Bond Fund | 1,123,674 | (3,867,963) | — | 41,878,074 | — | ||||
BNY Mellon Intermediate U.S. | |||||||||
Government Fund | 241,799 | — | 43,689 | 1,645,655 | — | ||||
BNY Mellon Short-Term | |||||||||
U.S. Government Securities Fund | 260,652 | (7,553,245) | — | 1,417,284 | 93,040 | ||||
† These losses were deferred for tax purposes to the first day of the following fiscal year. | |||||||||
Table 5. | |||||||||
Expiring in fiscal | 2014 ($)† | 2015 ($)† | 2016 ($)† | 2017 ($)† | 2018 ($)† | Total ($) | |||
BNY Mellon Bond Fund | — | — | 7,345,590 | — | — | 7,345,590 | |||
BNY Mellon Intermediate Bond Fund | — | 3,867,963 | — | — | — | 3,867,963 | |||
BNY Mellon Short—Term | |||||||||
U.S. Government Securities Fund | 2,822,720 | 4,701,996 | — | — | 28,529 | 7,553,245 | |||
† If not applied, the carryovers expire in the above years. | |||||||||
Table 6. | |||||||||
Ordinary Income ($) | Long Term Capital Gains ($) | ||||||||
2010 | 2009 | 2010 | 2009 | ||||||
BNY Mellon Bond Fund | 57,590,634 | 58,511,001 | — | — | |||||
BNY Mellon Intermediate Bond Fund | 34,343,568 | 32,670,710 | — | — | |||||
BNY Mellon Intermediate U.S. Government Fund | 2,309,590 | 1,678,863† | 610,500 | 20,749† | |||||
BNY Mellon Short—Term | |||||||||
U.S. Government Securities Fund | 4,693,267 | 4,777,683 | — | — |
† | For the eight months ended August 31, 2009. |
50
ments by the same amount for each fund as summarized in Table 7. Net assets and net asset values per share were not affected by these reclassifications.
NOTE 3—Bank Lines of Credit:
The funds participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the funds have agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the funds based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended on August 31, 2010, BNY Mellon Intermediate Bond Fund, BNY Mellon Intermediate U.S. Government Fund and BNY Mellon Short-Term U.S. Government Securities Fund did not borrow under the Facilities.
The average amount of borrowings outstanding under the Facilities during the period ended August 31, 2010 for BNY Mellon Bond Fund was approximately $8,500, with a related weighted average annualized interest rate of 1.40%.
NOTE 4—Investment Advisory Fee, Administration Fee and Other Transactions With Affiliates:
(a) Fees payable by the funds pursuant to the provisions of an investment advisory agreement with the
Investment Adviser are payable monthly, computed on the average daily value of each fund’s net assets at the following annual rates: .40% of BNY Mellon Bond Fund, .40% of BNY Mellon Intermediate Bond Fund, .50% of BNY Mellon Intermediate U.S. Government Fund and .35% of BNY Mellon Short-Term U.S. Government Securities Fund.
The Investment Adviser has contractually agreed, from September 1, 2009 through September 30, 2010, to waive receipt of its fees and/or assume expenses of BNY Mellon Bond Fund so that the direct expenses of Class M shares and Investor shares of the fund (excluding taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) do not exceed .69% and .94% of the value of the average daily net assets of their respective class.There was no expense reimbursement during the period ended August 31, 2010.
The Investment Adviser has contractually agreed, from September 1, 2009 through September 30, 2010, to waive receipt of its fees and/or assume the expenses of BNY Mellon Intermediate U.S. Government Fund so that the direct expenses of neither class (excluding shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings, and extraordinary expenses) do not exceed .65% of the value of the average daily net assets of their respective class. The reduction in investment advisory fee, pursuant to the undertaking, amount to $57,783 during the period ended August 31, 2010.
Table 7. | ||
Accumulated | ||
Undistributed | Accumulated | |
Investment | Net Realized | |
Income—Net ($) | Gain (Loss) ($) | |
BNY Mellon Bond Fund | 10,525,309 | (10,525,309) |
BNY Mellon Intermediate Bond Fund | 8,315,984 | (8,315,984) |
BNY Mellon Intermediate U.S. Government Fund | 877,400 | (877,400) |
BNY Mellon Short-Term U.S. Government Securities Fund | 2,102,615 | (2,102,615) |
The Funds | 51 |
NOTES TO FINANCIAL STATEMENTS (continued)
Pursuant to the Administration Agreement,The Bank of New York Mellon provides or arranges for fund accounting, transfer agency and other fund administration services and receives a fee based on the total net assets of the Trust based on the following rates:
0 up to $6 billion | .15% |
$6 billion up to $12 billion | .12% |
In excess of $12 billion | .10% |
The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of New York Mellon pays Dreyfus for performing certain administrative services.
(b) The funds have adopted a Shareholder Services Plan with respect to its Investor shares. Each fund pays the Distributor for the provision of certain services to holders of Investor shares a fee at an annual rate of .25% of the value of the average daily net assets attributable to Investor shares.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding a fund and providing reports and other information and services related to the maintenance of such shareholder accounts. The Shareholder Services Plan allows the Distributor to make payments from the shareholder services fees it collects from each fund to compensate service agents (certain banks, securities brokers or dealers and other financial institutions) in respect of these services. Table 8 summa-
rizes the amounts Investor shares were charged during the period ended August 31, 2010, pursuant to the Shareholder Services Plan. Additional fees included in shareholder servicing costs in the Statement of Operations include fees paid for cash management charges.
Table 8. | |
BNY Mellon Bond Fund | $20,400 |
BNY Mellon Intermediate Bond | 7,197 |
BNY Mellon Intermediate | |
U.S. Government Fund | 16,427 |
BNY Mellon Short-Term | |
U.S. Government Securities Fund | 2,417 |
The funds compensate The Bank of New York Mellon under cash management agreements for performing cash management services related to fund subscriptions and redemptions. Table 9 summarizes the amount each fund was charged during the period ended August 31, 2010, pursuant to the cash management agreements, which is included in Shareholder servicing costs in the Statements of Operations. These fees were offset by earnings credits pursuant to the cash management agreements, also summarized in Table 9.
The funds also compensate The Bank of New York Mellon under a custody agreement for providing custodial services for the funds. Table 10 summarizes the amount each fund was charged during the period ended August 31, 2010, pursuant to the custody agreement.
Table 9. | ||
Cash Management Fees ($) | Earnings Credits ($) | |
BNY Mellon Bond Fund | 1,043 | (11) |
BNY Mellon Intermediate Bond Fund | 131 | (2) |
BNY Mellon Intermediate U.S. Government Fund | 779 | (9) |
BNY Mellon Short-Term U.S. Government Securities Fund | 104 | (1) |
52
Table 10. | |
BNY Mellon Bond Fund | $104,127 |
BNY Mellon Intermediate Bond Fund | 69,369 |
BNY Mellon Intermediate | |
U.S. Government Fund | 5,789 |
BNY Mellon Short-Term | |
U.S. Government Securities Fund | 21,821 |
During the period ended August 31, 2010, each fund was charged $4,648 for services performed by the Chief Compliance Officer.
Table 11 summarizes the components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities for each fund.
(c) Each trustee who is not an “affiliated person” as defined in the Act receives from the Trust an annual fee of $68,000 and an attendance fee of $7,500 for each in-person meeting attended and $500 for telephone meetings and is reimbursed for travel and out-of-pocket expenses.The Chairman of the Trust’s Board receives an additional annual fee of $15,000 and the Chairman of the Trust’s Audit Committee receives an additional annual fee of $10,000.
NOTE 5—Securities Transactions:
Table 12 summarizes each fund’s aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities, during the period ended August 31, 2010.
Table 11. | |||||
Investment | Shareholder | Chief | (Less) Expense | ||
Advisory | Custodian | Services | Compliance | Reimbursement | |
Fees ($) | Fees ($) | Plan Fees ($) | Officer Fees ($) | Fees ($) | |
BNY Mellon Bond Fund | 498,890 | 16,521 | 2,750 | 673 | — |
BNY Mellon Intermediate Bond Fund | 335,663 | 11,139 | 944 | 673 | — |
BNY Mellon Intermediate | |||||
U.S. Government Fund | 28,107 | 1,225 | 1,414 | 673 | (10,022) |
BNY Mellon Short-Term | |||||
U.S. Government Securities Fund | 90,649 | 4,002 | 217 | 673 | — |
Table 12. | ||
Purchases ($) | Sales ($) | |
BNY Mellon Bond Fund | 1,478,158,765 | 1,402,165,730 |
BNY Mellon Intermediate Bond Fund | 515,552,266 | 404,314,561 |
BNY Mellon Intermediate U.S. Government Fund | 40,343,606 | 37,873,416 |
BNY Mellon Short-Term U.S. Government Securities Fund | 273,728,023 | 145,206,719 |
The Funds | 53 |
NOTES TO FINANCIAL STATEMENTS (continued)
The provisions of ASC Topic 815 “Derivatives and Hedging” require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements.The funds held no derivatives during the period ended
August 31, 2010. These disclosures did not impact the notes to the financial statements.
Table 13 summarizes the cost of investments for federal income tax purposes and accumulated net unrealized appreciation on investments for each fund at August 31, 2010.
Table 13. | ||||
Cost of | Gross | Gross | ||
Investments ($) | Appreciation ($) | Depreciation ($) | Net ($) | |
BNY Mellon Bond Fund | 1,393,866,752 | 75,091,868 | 6,106,059 | 68,985,809 |
BNY Mellon Intermediate Bond Fund | 958,400,893 | 51,835,995 | 9,957,921 | 41,878,074 |
BNY Mellon Intermediate U.S. Government Fund | 64,589,959 | 2,641,872 | 996,217 | 1,645,655 |
BNY Mellon Short-Term U.S. Government Securities Fund | 309,365,491 | 3,042,714 | 1,625,430 | 1,417,284 |
54
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of BNY Mellon Funds Trust
We have audited the accompanying statements of assets and liabilities of BNY Mellon Bond Fund, BNY Mellon Intermediate Bond Fund, BNY Mellon Intermediate U.S. Government Fund, and BNY Mellon Short-Term U.S. Government Securities Fund, each a series of BNY Mellon FundsTrust (collectively “the Funds”), including the statements of investments, as of August 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or period in the two-year period then ended, except for BNY Mellon Intermediate U.S. Government Fund, which was for the year ended August 31, 2010, the eight-month period ended August 31, 2009 and the twelve-month period ended August 31, 2008, and the financial highlights for each of the years or period in the five-year period then ended, except for the BNY Mellon Intermediate U.S. Government Fund, which was for the yea r ended August 31, 2010, the eight-month period ended August 31, 2009 and the year ended August 31, 2008.These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. With respect to the BNY Mellon Intermediate U.S. Government Fund, the financial highlights for each of the years in the three-year period ended December 31, 2007 were audited by other independent registered public accountants whose report thereon, dated February 28, 2008, expressed an unqualified opinion on the statement of changes in net assets and those financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2010 by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BNY Mellon Bond Fund, BNY Mellon Intermediate Bond Fund, BNY Mellon Intermediate U.S. Government Fund, and BNY Mellon Short-Term U.S. Government Securities Fund as of August 31, 2010, and the results of their operations, the changes in their net assets, and the financial highlights for the periods described in the first paragraph above, in conformity with U.S. generally accepted accounting principles.
New York, New York
October 26, 2010
The Funds | 55 |
IMPORTANT TAX INFORMATION (Unaudited)
BNY Mellon Bond Fund
For federal tax purposes the fund designates the maximum amount allowable but not less than 95.87% as interest-related dividends in accordance with Sections 871(k)(1) and 881(e) of the Internal Revenue Code.
BNY Mellon Intermediate Bond Fund
For federal tax purposes the fund designates the maximum amount allowable but not less than 96.35% as interest-related dividends in accordance with Sections 871(k)(1) and 881(e) of the Internal Revenue Code.
BNY Mellon Intermediate U.S. Government Fund
For federal tax purposes the fund designates the maximum amount allowable but not less than 100% as interest-related dividends in accordance with Sections 871(k)(1) and 881(e) of the Internal Revenue Code.Also for state individual income tax purposes, the fund hereby designates 75.49% of the ordinary income dividends paid during its fiscal year ended August 31, 2010 as attributable to interest income from direct obligations of the United States. Such dividends are taxation for individual income tax purposes in most states, including NewYork, California and the District of Columbia. Also the fund designates the maximum amount allowable but not less
than $.0512 per share as a short-term capital gain dividend in accordance with Sections 871(k)(2) and 881(e) of the Internal Revenue Code. Also the fund designates the maximum amount allowable but not less than $.0993 per share as a capital gain dividend in accordance with Section 852(b)(3)(C) of the Internal Revenue Code.
Mellon Short-Term U.S. Government Securities Fund
For federal tax purposes the fund designates the maximum amount allowable but not less than 100% as interest-related dividends in accordance with Sections 871(k)(1) and 881(e) of the Internal Revenue Code. Also for state individual income tax purposes, the 65.61% of the ordinary income dividends paid during its fiscal year ended August 31, 2010 as attributable to interest income from direct obligations of the United States. Such dividends are taxation for individual income tax purposes in most states, including New York, California and the District of Columbia.
Where required by federal tax law rules, shareholders will receive notification of their portion of the funds’ taxable ordinary dividends and capital gains distributions paid for the 2010 calendar year on Form 1099-DIV which will be mailed by early 2011.
56
INFORMATION ABOUT THE REVIEW AND APPROVAL |
OF EACH FUND’S INVESTMENT ADVISORY AGREEMENT (Unaudited) |
At a meeting of the Board of Trustees held on March 9-10, 2010, the Board considered the re-approval of the Trust’s Investment Advisory Agreement for another one year term, pursuant to which BNY Mellon Fund Advisers, a division of Dreyfus, provides the funds with investment advisory services.The Board members also considered the re-approval of the Trust’s Administration Agreement with The Bank of NewYork Mellon for another one year term, pursuant to which The Bank of New York Mellon provides the funds with administrative services.The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of NewYork Mellon pays Dreyfus for performing certain of these administrative services.The Board members who are not “interested persons” (as defined in the Act) of theTrust were assisted in their review by independent legal counsel and met with counsel i n executive session separate from representatives of Dreyfus.
Analysis of Nature, Extent and Quality of Services Provided to the Funds. The Board members received a presentation from representatives of Dreyfus regarding services provided to the funds, and discussed the nature, extent and quality of the services provided to the funds pursuant to the Investment Advisory Agreement. Dreyfus’ representatives reviewed the funds’ distribution of accounts, and noted the diversity of distribution of the funds and Dreyfus’ corresponding need for broad, deep and diverse resources to be able to provide ongoing shareholder services to each of the funds’ distribution channels. Dreyfus also provided the number of shareholder accounts in each fund, as well as each fund’s asset size.
The Board members also considered Dreyfus’ research and portfolio management capabilities and that Dreyfus also provides oversight of day-to-day fund operations and assistance in meeting legal and regulatory requirements, and Dreyfus’ extensive operational and compliance infrastructure. They also considered that The Bank of New York Mellon provides the funds with administrative and
accounting services pursuant to theTrust’s Administration Agreement. The Board also considered Dreyfus’ brokerage policies and practices and the standards applied in seeking best execution.
Comparative Analysis of the Funds’ Advisory Fees, Expense Ratios and Performance
The Board members reviewed reports prepared by Lipper, Inc., an independent provider of investment company data, which included information comparing each fund’s advisory fee and expense ratio with a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), in each case in the same category applicable to the fund, that were selected by Lipper. The Board members also reviewed reports prepared by Lipper which included information comparing each fund’s performance with that of a group of comparable funds (the “Performance Group”) composed of the same funds included in the Expense Group and with that of a broader group of funds (the “Performance Universe”), in each case in the same category applicable to the fund, that were selected by Lipper. Included in these reports were comparisons of contractual and actual advisory fee rates, total operating expenses, total return performance and yield. Dreyfus also provided a comparison of each fund’s calendar year total returns to the performance of the fund’s benchmark.The Board was provided with a description of the methodology Lipper used to select each Expense Group and Expense Universe and each Performance Group and Performance Universe.
BNY Mellon Bond Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile (above the median) of the Expense Group and in the second quartile (below the median) of the Expense
The Funds | 57 |
INFORMATION ABOUT THE REVIEW AND APPROVAL OF EACH FUND’S INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)
Universe. The Board also considered that BNY Mellon Fund Advisers contractually agreed, until September 30, 2010, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of Class M shares and Investor shares (excluding taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) do not exceed 0.69% and 0.94%, respectively.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that the fund’s total return performance for periods ended January 31, 2010, was below the medians of the Performance Group and Performance Universe for the 1-year period and was above the medians for the 2-, 3-, 4- and 5-year periods.The Board also noted that the fund’s yield was above the medians of the Performance Group for each of the 1-year periods ended January 31st for 2004 through 2006 and 2010 and was below the medians for each of the 1-year periods ended January 31st for 2002, 2003 and 2007 through 2009, and was above the medians of the Performance Universe for each of the 1-year periods ended January 31st for 2002 through 2008 and 2010 and was below the median for the 1-year period ended January 31, 2009.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light
of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon Intermediate Bond Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile (equal to the median) of the Expense Group and in the second quartile (below the median) of the Expense Universe.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons.The Board noted that for periods ended January 31, 2010, the fund’s total return performance was below the medians of the Performance Group for the 1- and 2-year periods, was above the medians for the 3- and 4-year periods and was equal to the median for the 5-year period, and was below the median of the Performance Universe for the 1-year period and was above the medians for the 2-, 3-, 4- and 5-year periods.The Board also noted that the fund’s yield was below the medians of the Performance Group for each of the 1-year periods ended January 31st for 2002, 2009 and 2010, was equal to the medians for each of the 1-year periods ended January 31st for 2003 and 2008 and was above the medians for each of the 1-year periods ended January 31st for 2004 through 2007, and was above the medians of the Performance Univ erse for each of the 1-year periods ended January 31st for each of the reported periods.
Representatives of Dreyfus noted that there were no other mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as
58
the fund, nor other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.
BNY Mellon Intermediate U.S. Government Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile of the Expense Group and Expense Universe (above the respective medians of the Expense Group and Expense Universe).The Board also considered that BNY Mellon Fund Advisers contractually agreed, until September 30, 2010, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither class of the fund’s shares (excluding shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) exceed 0.65%.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that for periods ended January 31, 2010, the fund’s total return performance was below the medians of the Performance Group and Performance Universe for the 1-, 2-, 3-, 4- and 5-year periods and was above the medians for the 10-year period. The Board also noted that the fund’s yield was above the medians of the Performance Group for each of the 1-year periods ended January 31st for 2002, 2004 through 2008 and 2010 and was below the medians for each of the 1-year periods ended January 31st for 2001, 2003 and 2009, and was above the medians of the Performance Universe for each of the 1-year periods ended January 31st for 2001
through 2008 and 2010 and was below the median for the 1-year period ended January 31, 2009.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by a mutual fund managed by Dreyfus or its affiliates with a similar investment objective and similar policies and strategies, and included within the same Lipper category, as the fund (the “Similar Fund”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided. The Board members considered the relevance of the fee information provided for the Similar Fund to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon Short-Term U.S. Government Securities Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile of the Expense Group and Expense Universe (equal to the respective Expense Group and Expense Universe medians).
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that for periods ended January 31, 2010, the fund’s total return performance was below the medians of the Performance Group for the reported periods, and
The Funds | 59 |
INFORMATION ABOUT THE REVIEW AND APPROVAL OF EACH FUND’S INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)
was below the median of the Performance Universe for the 1-year period and was above the medians for the 2-, 3-, 4- and 5-year periods.The Board also noted that the fund’s yield was below the medians of the Performance Group for each of the 1-year periods ended January 31st for 2003 and 2010, was above the medians for each of the 1-year periods ended January 31st for 2004 through 2006, 2008 and 2009 and was equal to the medians for each of the 1-year periods ended January 31st for 2002 and 2007, and was above the medians of the Performance Universe for the reported periods.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by a mutual fund managed by Dreyfus or its affiliates with a similar investment objective and similar policies and strategies, and included within the same Lipper category, as the fund (the “Similar Fund”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided. The Board members considered the relevance of the fee information provided for the Similar Fund to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
Analysis of Profitability and Economies of Scale. Dreyfus’ representatives reviewed the dollar amount of expenses allocated and profit received by Dreyfus and its affiliates with respect to each fund and the method used to determine such expenses and profit.The Board previously had been provided with information prepared by an inde-
pendent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus mutual fund complex. The Board members also had been informed that the methodology had been reviewed by an independent registered public accounting firm which, like the consultant, found the methodology to be reasonable.The consulting firm also analyzed where any economies of scale might emerge in connection with the management of the funds. The Board members evaluated the profitability analysis in light of the relevant circumstances for each fund, including any decline in assets. The Board members also considered potential benefits to Dreyfus and its affiliates, including BNY Mellon Fund Advisers, from acting as investment adviser to the funds and noted that there were no soft dollar arrangements with respect to trading each fund’s portfolio.
It was noted that the Board members should consider Dreyfus’ profitability with respect to each fund as part of their evaluation of whether the fees under the Investment Advisory Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services. It was noted that the profitability percentage for managing each fund was within ranges determined by appropriate court cases to be reasonable given the services rendered and that the profitability percentage for managing each fund was not unreasonable given the services provided.The Board also noted the fee waiver and expense reimbursement arrangements pertaining to BNY Mellon Bond Fund and BNY Mellon Intermediate U.S. Government Fund and their effect on the profitability of Dreyfus.
60
At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the continuation of the Trust’s Investment Advisory Agreement with respect to the funds. Based on the discussions and considerations as described above, the Board made the following conclusions and determinations with respect to the funds:
The Board concluded that the nature, extent and quality of the services provided by Dreyfus to each fund are adequate and appropriate.
With respect to BNY Mellon Bond Fund and BNY Mellon Intermediate Bond Fund, the Board was gen- erally satisfied with each fund’s overall performance.
With respect to BNY Mellon Intermediate U.S. Government Fund, while the Board was concerned with the underperformance of the fund’s total returns versus the Performance Group and the Performance Universe, it noted that in certain periods the returns were below the median by only a few basis points and noted the fund’s more competitive yields.
With respect to BNY Mellon Short-Term U.S. Government Securities Fund, while the Board was concerned with the underperformance of the fund’s total returns versus the Performance Group, it noted the fund’s more competitive total returns versus the Performance Universe and its more competitive yields, and was generally satisfied with the fund’s overall performance
The Board concluded that the fee paid to Dreyfus by each fund was reasonable in light of the services pro- vided, comparative performance and expense and advisory fee information, costs of the services provided and profits to be realized and benefits derived or to be derived by Dreyfus and its affiliates from its relationship with the fund.
The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in con- nection with the management of the funds had been adequately considered by Dreyfus in connection with the advisory fee rate charged to each fund, and that, to the extent in the future it were to be determined that material economies of scale had not been shared with a fund, the Board would seek to have those economies of scale shared with the fund.
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 Trust’s Investment Advisory Agreement and Administration Agreement with respect to the funds was in the best interests of each fund and its respective shareholders.
The Funds | 61 |
BOARD MEMBERS INFORMATION (Unaudited)
62
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, NewYork 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-645-6561. For individual account holders for Private Wealth Management clients, please contact your account officer or call 1-888-281-7350.
The Funds | 63 |
OFFICERS OF THE TRUST (Unaudited)
64
The Funds | 65 |
NOTES
For More Information
Ticker Symbols: | ||
BNY Mellon Bond Fund | Class M: MPBFX | Investor: MIBDX |
BNY Mellon Intermediate Bond Fund | Class M: MPIBX | Investor: MIIDX |
BNY Mellon Intermediate U.S. Government Fund | Class M: MGVMX | Investor: MOVIX |
BNY Mellon Short-Term U.S. Government Securities Fund | Class M: MPSUX | Investor: MISTX |
Telephone Wealth Management (WM) Clients, please contact your Account Officer or call 1-888-281-7350. Brokerage Clients of BNY Mellon Wealth Advisors (BNYMWA), please contact your financial representative or call 1-800-830-0549, Option 2. Individual Account holders, please call Dreyfus at 1-800-645-6561.
Mail WM Clients, write to your Account Officer, c/o The Bank of New York Mellon, One Mellon Bank Center, Pittsburgh, PA 15258 BNYMWA Brokerage Clients, write to your financial representative, P.O. Box 9012, Hicksville, NY 11802–9012 Individual Account Holders, write to: BNY Mellon Funds, P.O. Box 55268, Boston, MA 02205–8502
The funds file their 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 funds’ 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 most recent 12-month period ended June 30 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.
© 2010 MBSC Securities Corporation
MFTAR0810-TB
The BNY Mellon Funds
BNY Mellon National Intermediate Municipal Bond Fund |
BNY Mellon National Short-Term Municipal Bond Fund |
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund |
BNY Mellon Massachusetts Intermediate Municipal Bond Fund |
BNY Mellon New York Intermediate Tax-Exempt Bond Fund |
BNY Mellon Municipal Opportunities Fund |
ANNUAL REPORT | August 31, 2010 |
Contents | |
The Funds | |
Letter from the President | 2 |
Discussion of Funds’ Performance | |
BNY Mellon National Intermediate | |
Municipal Bond Fund | 3 |
BNY Mellon National Short-Term | |
Municipal Bond Fund | 6 |
BNY Mellon Pennsylvania Intermediate | |
Municipal Bond Fund | 9 |
BNY Mellon Massachusetts Intermediate | |
Municipal Bond Fund | 12 |
BNY Mellon New York | |
Intermediate Tax-Exempt Bond Fund | 15 |
BNY Mellon Municipal | |
Opportunities Fund | 18 |
Understanding Your Fund’s Expenses | 21 |
Comparing Your Fund’s Expenses | |
With Those of Other Funds | 22 |
Statements of Investments | 23 |
Statements of Financial Futures | 94 |
Statements of Assets and Liabilities | 95 |
Statements of Operations | 97 |
Statements of Changes in Net Assets | 99 |
Financial Highlights | 106 |
Notes to Financial Statements | 120 |
Report of Independent Registered | |
Public Accounting Firm | 134 |
Important Tax Information | 135 |
Information About the Review | |
and Approval of Each Fund’s | |
Investment Advisory Agreement | 137 |
Board Members Information | 142 |
Officers of the Trust | 144 |
For More Information
Back cover
The views expressed herein are current to the date of this report.These views and the composition of the funds’ portfolios are subject to change at any time based on market and other conditions.
Not FDIC-Insured
Not Bank-Guaranteed
May Lose Value
The Funds
LETTER FROM
THE PRESIDENT
Dear Shareholder:
We are pleased to present to you this annual report for the BNY Mellon Funds Trust, covering the reporting period ended August 31, 2010.
As the summer of 2010 cooled off, so did the pace of the U.S. and global economic recoveries. Former engines of growth appeared to stall as large parts of the developed world remained indebted and burdened by weak housing markets. Despite economic challenges and headlines about potential budgetary constraints by state and local municipality issuers, municipal bonds continued to benefit from favorable supply-and-demand dynamics and investors’ demand for higher yields, providing a degree of support absent in other markets.
We currently do not expect a return to recessionary conditions, thanks to record low short-term interest rates and quantitative easing from the Federal Reserve Board. In addition, U.S. Treasury securities appear to offer limited value at current low yields while municipal bonds seem poised to benefit from robust investor demand as local, state and federal government officials consider imposing higher taxes to reduce record budget deficits.With questions still remaining about the potential sunset (or extension or modification of) the 2001 tax cuts, we urge you to speak with your portfolio manager, who is best-suited to help you monitor these developments and evaluate your current asset allocations within this current economic environment.
For information about how each fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance for each fund.
Thank you for your continued confidence and support.
Christopher E. Sheldon
President
BNY Mellon Funds Trust
September 15, 2010
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by John F. Flahive and Mary Collette O’Brien, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon National Intermediate Municipal Bond Fund’s Class M shares produced a total return of 8.96%, Investor shares returned 8.61% and Dreyfus Premier shares returned 8.06%.1 In comparison, the BofA Merrill Lynch 2-17 Year Municipal Bond Index, the fund’s benchmark, returned 8.90% for the same period.2
Despite ongoing fiscal pressures affecting many states and municipalities, municipal bonds generally fared well over the reporting period amid robust demand for a limited supply of securities. The fund’s Class M shares produced returns that were roughly in line with its benchmark.
The Fund’s Investment Approach
The fund seeks to maximize current income exempt from federal income tax to the extent consistent with the preservation of capital.To pursue its goal, the fund normally invests at least 80% of its assets in municipal bonds that provide income exempt from federal income tax.The fund may occasionally, including for temporary defensive purposes, invest in taxable bonds. The fund’s investments in municipal and taxable bonds must be rated investment grade at the time of purchase or, if unrated, deemed of comparable quality by the investment adviser.3 Generally, the fund’s average effective portfolio maturity will be between three and 10 years, and the average effective duration of the fund’s portfolio will not exceed eight years.
Rather than focusing on economic or market trends, we search for securities that, in our opinion, will help us enhance the fund’s yield without sacrificing quality. We use a more tactical approach with respect to the fund’s average duration. If we expect the supply of securities to increase temporarily, we may reduce the fund’s average duration to make cash available for the purchase of higher yielding securities. This is due to the fact that yields generally tend to rise if issuers are competing for investor interest. If we expect demand to surge at a time when we anticipate little issuance and therefore lower yields, we may increase the fund’s average duration to maintain current yields for as long as practical. At other times, we typically try to maintain a neutral average duration.
Supply-and-Demand Factors Supported Municipal Bonds
An improving U.S. economy bolstered confidence among consumers, businesses and investors early in the reporting period. However, in May 2010 certain European nations found themselves unable to finance heavy debt loads, and inflationary pressures in China kindled fears that potential remedial measures might constrain a key engine of global growth.The United States also encountered greater economic uncertainty when employment and housing data sent mixed signals regarding the strength of the domestic recovery, and most states continued to struggle with declining tax revenues and intensifying demand for services. Consequently, investor sentiment generally deteriorated, and the Federal Reserve Board left short-term interest rates unchanged in a historically low range between 0% and 0.25%.
The Funds 3
DISCUSSION OF FUND PERFORMANCE (continued)
Although these developments caused some segments of the taxable bond market to decline over the reporting period’s second half, municipal bonds held up relatively well as a result of positive supply-and-demand dynamics. Issuance of new tax-exempt bonds moderated significantly due to the Build America Bonds program, part of the federal stimulus package that shifted a substantial portion of new issuance to the taxable bond market. Meanwhile, demand intensified as individual and institutional investors sought alternatives to low yielding money market funds. Consequently, longer-term municipal bond prices trended higher, on average, over the reporting period.
Fund Participated Fully in Market Rally
In this environment, we maintained a slight bias toward lower-rated municipal bonds that our analysts determined to be fundamentally sound. Conversely, the fund held relatively light exposure to bonds rated “triple-A.” This relatively constructive investment posture helped bolster the fund’s relative performance through overweighted positions in bonds backed by revenues from health care facilities and public power plants.We found a number of such opportunities in high-issuance states such as California, New York and Texas.
We set the fund’s average duration in a range that was slightly short to in line with the benchmark. We achieved this position by focusing on securities in the one- to three-year maturity range, while deemphasizing those in the seven- to 10-year range. However, this positioning had relatively little impact on the fund’s relative performance during the reporting period.
Maintaining a Constructive Posture
Although state and local governments remain under pressure, we are optimistic regarding the municipal bond market’s long-term prospects. We believe demand seems likely to stay robust as investors grow increasingly concerned about potential income tax increases on the state and federal levels. In addition, the Build America Bonds program may be extended into next year. Consequently, we generally have maintained a constructive investment posture, including a modest tilt toward “triple-B” rated securities.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes, and rate increases can cause price declines. | |
1 | Total return includes reinvestment of dividends and any capital gains paid |
and does not take into consideration the applicable contingent deferred sales | |
charges imposed on redemptions in the case of Dreyfus Premier shares. Past | |
performance is no guarantee of future results. Share price, yield and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. Income may be subject to state and | |
local taxes, and some income may be subject to the federal alternative | |
minimum tax (AMT) for certain investors. Capital gains, if any, are fully | |
taxable. Return figures provided reflect the absorption of certain fund expenses | |
by the investment adviser pursuant to an undertaking in effect until | |
September 30, 2010, at which time it may be extended, terminated or | |
modified. Had these expenses not been absorbed, the fund’s returns would | |
have been lower. | |
2 | SOURCE: MORNINGSTAR — Reflects reinvestment of dividends and, |
where applicable, capital gain distributions.The BofA Merrill Lynch 2-17 | |
Year Municipal Bond Index is a broad-based, unmanaged, market-weighted | |
index of investment grade municipal bonds maturing in the 2-17 year range. | |
Index returns do not reflect the fees and expenses associated with operating a | |
mutual fund. Investors cannot invest directly in any index. | |
3 | The fund may continue to own investment-grade bonds (at the time of |
purchase), which are subsequently downgraded to below investment grade. |
4
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon National Intermediate Municipal Bond Fund Class M shares and the BofA Merrill Lynch 2-17 Year Municipal Bond Index
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 1/1/87 | 8.96% | 4.90% | 5.21% | — |
Investor shares | 7/11/01 | 8.61% | 4.64% | — | 4.70% |
Dreyfus Premier shares | |||||
with applicable redemption †† | 10/11/02 | 5.06% | 3.95% | — | 3.73% |
without redemption | 10/11/02 | 8.06% | 4.12% | — | 3.73% |
BofA Merrill Lynch 2-17 Year | |||||
Municipal Bond Index††† | 9/30/00 | 8.90% | 5.50% | — | 6.00% |
† Source: Bloomberg L.P. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon National Intermediate Municipal Bond Fund on 8/31/00 to a $10,000 |
investment made in the BofA Merrill Lynch 2-17Year Municipal Bond Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund were transferred to the fund. Please note that the performance of the fund’s Class M shares represents the |
performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the actual performance of the CTF |
the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the performance of the fund’s Class M shares |
thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore was not subject to certain investment |
restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher than those estimated prior to the |
conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares and |
Dreyfus Premier shares will vary from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is a broad-based, |
unmanaged, market-weighted index of investment grade municipal bonds maturing in the 2-17 year range. Unlike a mutual fund, the Index is not subject to charges, |
fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, |
is contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
†† The maximum contingent deferred sales charge for Dreyfus Premier shares is 3%.After six years Dreyfus Premier shares convert to Investor shares. |
††† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
The Funds | 5 |
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Timothy J. Sanville and Jeremy N. Baker, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon National Short Term Municipal Bond Fund’s Class M shares produced a total return of 3.22%, and Investor shares produced a total return of 3.05%.1 In comparison, the BofA Merrill Lynch 1-5Year Municipal Bond Index, the fund’s benchmark, produced a total return of 4.51% for the same period.2
Although short-term municipal bonds rallied modestly over the reporting period, they lagged their longer-term counterparts as short-term yields remained anchored by historically low interest rates. The fund produced lower returns than its benchmark for the reporting period, primarily due to a relatively defensive investment posture in a recovering economy.
The Fund’s Investment Approach
The fund seeks to maximize current income exempt from federal income tax to the extent consistent with the preservation of capital.To pursue its goal, the fund normally invests at least 80% of its assets in municipal bonds that provide income exempt from federal income tax.The fund occasionally may invest in taxable bonds, including for temporary defensive purposes.The fund’s investments in municipal and taxable bonds must be rated investment grade at the time of purchase or, if unrated, deemed of comparable quality by the investment adviser.3 Generally, the average effective portfolio maturity and the average effective portfolio duration of the fund’s portfolio will be less than three years.
Rather than focusing on economic or market trends, we search for securities that, in our opinion, will help us enhance the fund’s yield without sacrificing quality. We use a more tactical approach with respect to the fund’s average duration. If we expect the supply of securities to increase temporarily, we may reduce the fund’s average duration to make cash available for the purchase of higher yielding securities.This is due to the fact that yields generally tend to rise if issuers are competing for investor interest. If we expect demand to surge at a time when we anticipate little issuance and therefore lower yields, we may increase the fund’s average duration to maintain current yields for as long as practical.At other times, we typically try to maintain a neutral average duration.
Amid Renewed Uncertainty, Short Rates Remained Stable
An improving U.S. economy bolstered confidence among consumers, businesses and investors early in the reporting period. However, in May 2010 certain European nations found themselves unable to finance heavy debt loads, and inflationary pressures in China kindled fears that remedial measures might constrain a key engine of global growth. In the United States, employment and housing data sent mixed signals regarding the strength of the domestic recovery, and most states struggled with declining tax revenues. Consequently, investor sentiment generally deteriorated, and the Federal Reserve Board (the “Fed”) left short-term interest rates unchanged in a historically low range between 0% and 0.25%.
Although these developments produced rallies in the intermediate and long-term segments of the municipal bond market, yields of short-term municipal bonds remained anchored by low short-term interest rates. In
6
addition, short-term tax-exempt securities benefited more moderately than longer-term municipal bonds from favorable supply-and-demand dynamics. Issuance of new tax-exempt bonds declined significantly due to the Build America Bond program, part of the federal stimulus package that shifted a substantial portion of new issuance to the taxable bond market. Meanwhile, demand intensified as individual and institutional investors sought alternatives to low yielding money market funds. Consequently, longer-term municipal bond prices trended higher, on average, over the reporting period.
Focus on Quality Dampened Returns
A relatively defensive investment posture prevented the fund from participating more fully in the market’s gains over the reporting period, as we had set the fund’s average duration in a range that was slightly shorter than industry averages to cushion the potential effects of rising interest rates in a recovering economy. In addition, we reduced the fund’s holdings of bonds with “triple-B” credit ratings in favor of securities in the “single-A” to “triple-A” range.This shift positions the fund appropriately for what we believe will be an eventual rise in short-term interest rates, it proved mildly detrimental to relative performance during the reporting period.
Maintaining a Defensive Approach
As of the reporting period’s end, we believe that the U.S. economy is unlikely to fall into another recession, but the continued expansion probably will remain slower and choppier than most previous recoveries. In addition, while mixed economic signals could lead to bouts of heightened market volatility, we do not expect the Fed to raise short-term interest rates anytime soon. Still, our analysis of risks and potential rewards in the short-term municipal bond market suggests that a cautious investment posture—including a relatively short average duration and a focus on higher-quality securities—is the more prudent course in today’s uncertain economic and market environments.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes, and rate increases can cause price declines. | |
1 | Total return includes reinvestment of dividends and any capital gains |
paid. 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. Income may be subject | |
to state and local taxes, and some income may be subject to the federal | |
alternative minimum tax (AMT) for certain investors. Capital gains, if | |
any, are fully taxable. | |
2 | SOURCE: MORNINGSTAR. — Reflects reinvestment of dividends |
and, where applicable, capital gain distributions.The BofA Merrill Lynch 1- | |
5Year Municipal Bond Index is a broad-based, unmanaged, market- | |
weighted index of investment-grade municipal bonds maturing in the 1- to | |
(but not including) 5-year range. Index returns do not reflect the fees and | |
expenses associated with operating a mutual fund. Investors cannot invest | |
directly in any index. | |
3 | The fund may continue to own investment-grade bonds (at the time of |
purchase), which are subsequently downgraded to below investment grade. |
The Funds 7
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon National Short-Term Municipal Bond Fund Class M shares and the BofA Merrill Lynch 1-5 Year Municipal Bond Index
Average Annual Total Returns as of 8/31/10 | ||||
Inception | From | |||
Date | 1 Year | 5 Years | Inception | |
Class M shares | 10/2/00 | 3.22% | 3.30% | 3.35% |
Investor shares | 7/11/01 | 3.05% | 3.04% | 2.77% |
BofA Merrill Lynch 1-5 Year | ||||
Municipal Bond Index†† | 9/30/00 | 4.51% | 4.53% | 4.42% |
† Source: Bloomberg L.P. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon National Short-Term Municipal Bond Fund on 10/2/00 (inception |
date) to a $10,000 investment made in the BofA Merrill Lynch 1-5Year Municipal Bond Index (the “Index”) on that date.All dividends and capital gain |
distributions are reinvested. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for Class M shares only. Performance for Investor shares will vary |
from the performance of Class M shares shown above because of the differences in charges and expenses.The Index is a broad-based, unmanaged, market-weighted |
index of investment grade municipal bonds maturing in the 1- to (but not including) 5- year range. Unlike a mutual fund, the Index is not subject to charges, fees and |
other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is |
contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
8
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by Mary Collette O’Brien and Jeremy N. Baker, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Pennsylvania Intermediate Municipal Bond Fund’s Class M shares produced a total return of 8.44%, and Investor shares returned 8.08%.1 In comparison, the BofA Merrill Lynch 2-17 Year Municipal Bond Index (the “Index”), the fund’s benchmark, returned 8.90% for the same period.2
Despite ongoing fiscal pressures affecting many states and municipalities, municipal bonds generally fared well over the reporting period amid robust demand for a limited supply of securities.The fund produced slightly lower returns than its benchmark, which we attribute primarily to differences between Pennsylvania bonds and those of other states contained in the Index.
The Fund’s Investment Approach
The fund seeks as high a level of income exempt from federal and Pennsylvania state income taxes as is consistent with the preservation of capital. To pursue its goal, the fund normally invests at least 80% of its assets in municipal bonds, the interest from which is exempt from federal and Pennsylvania state personal income taxes.The fund may also invest in municipal bonds that are exempt from federal income taxes, but not Pennsylvania personal income taxes, and in taxable bonds.The fund’s investments in municipal and taxable bonds must be rated investment grade at the time of purchase or, if unrated, deemed of comparable quality by the investment adviser.3 Generally, the fund’s average effective portfolio maturity will be between three and 10 years, and the average effective duration of the fund’s portfolio will not exceed eight years.
Rather than focusing on economic or market trends, we search for securities that, in our opinion, will help us enhance the fund’s yield without sacrificing quality. We use a more tactical approach with respect to the fund’s average duration. If we expect the supply of securities to increase temporarily, we may reduce the fund’s average duration to make cash available for the purchase of higher yielding securities. This is due to the fact that yields generally tend to rise if issuers are competing for investor interest. If we expect demand to surge at a time when we anticipate little issuance and therefore lower yields, we may increase the fund’s average duration to maintain current yields for as long as practical.At other times, we typically try to maintain a neutral average duration.
Supply-and-Demand Factors Supported Municipal Bonds
An improving U.S. economy bolstered confidence among consumers, businesses and investors early in the reporting period. However, in May 2010 certain European nations found themselves unable to finance heavy debt loads, and inflationary pressures in China kindled fears that potential remedial measures might constrain a key engine of global growth. The United States also encountered greater economic uncertainty when employment and housing data sent mixed signals, and most states—including Pennsylvania—continued to struggle with declining tax revenues and intensifying demand for services. Consequently, investor sentiment generally deteriorated, and the Federal Reserve Board left short-term interest rates unchanged in a historically low range between 0% and 0.25%.
The Funds 9
DISCUSSION OF FUND PERFORMANCE (continued)
Although these developments caused some segments of the taxable bond market to decline over the reporting period’s second half, municipal bonds held up relatively well due to favorable supply-and-demand dynamics. Issuance of new tax-exempt bonds moderated significantly due to the Build America Bond program, part of the federal stimulus package that shifted a substantial portion of new issuance to the taxable municipal bond market. Meanwhile, demand intensified as individual and institutional investors sought alternatives to low yielding money market funds. Consequently, longer-term municipal bond prices trended higher, on average, over the reporting period.
Fund Participated Fully in Market Rally
In this environment, we maintained a slight bias toward lower-rated municipal bonds from Pennsylvania issuers that our analysts determined to be fundamentally sound. Conversely, the fund held lighter-than-average exposure to bonds rated “triple-A.” This relatively constructive investment posture helped bolster the fund’s performance through overweighted positions in bonds backed by revenues from health care facilities and other projects.
We set the fund’s average duration in a range that was slightly short to in line with the benchmark. We achieved this position by focusing on securities in the one- to three-year maturity range, while deemphasizing those in the seven- to 10-year range. However, this positioning had relatively little impact on the fund’s relative performance during the reporting period.
Maintaining a Constructive Posture
Although Pennsylvania’s state and local governments remain under pressure, we are optimistic regarding the municipal bond market’s long-term prospects. We believe demand seems likely to stay robust as investors grow increasingly concerned about potential income tax increases on the state and federal levels. In addition, the Build America Bond program may be extended into next year. Consequently, we generally have maintained a constructive investment posture, including a modest tilt toward “triple-B” rated securities.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes, and rate increases can cause price declines. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
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. Income may be subject to state and | |
local taxes for non-Pennsylvania residents, and some income may be subject to | |
the federal alternative minimum tax (AMT) for certain investors. Capital | |
gains, if any, are fully taxable. | |
2 | SOURCE: MORNINGSTAR — Reflects reinvestment of dividends and, |
where applicable, capital gain distributions.The BofA Merrill Lynch 2-17 | |
Year Municipal Bond Index is a broad-based, unmanaged, market-weighted | |
index of investment grade municipal bonds maturing in the 2-17 year range. | |
Index returns do not reflect the fees and expenses associated with operating a | |
mutual fund. Investors cannot invest directly in any index. | |
3 | The fund may continue to own investment-grade bonds (at the time of |
purchase), which are subsequently downgraded to below investment grade. |
10
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Pennsylvania Intermediate Municipal Bond Fund Class M shares and the BofA Merrill Lynch 2-17 Year Municipal Bond Index
Average Annual Total Returns as of 8/31/10 | |||||
Inception | From | ||||
Date | 1 Year | 5 Years | 10 Years | Inception | |
Class M shares | 1/1/87 | 8.44% | 4.26% | 4.62% | — |
Investor shares | 7/11/01 | 8.08% | 3.98% | — | 4.07% |
BofA Merrill Lynch 2-17 Year | |||||
Municipal Bond Index†† | 9/30/00 | 8.90% | 5.50% | — | 6.00% |
† Source : Bloomberg L.P. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares of BNY Mellon Pennsylvania Intermediate Municipal Bond Fund on 8/31/00 to a $10,000 |
investment made in the BofA Merrill Lynch 2-17Year Municipal Bond Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
Before the fund commenced operations, substantially all of the assets of a predecessor common trust fund (CTF) that, in all material respects, had the same investment |
objective, policies, guidelines and restrictions as the fund were transferred to the fund. Please note that the performance of the fund’s Class M shares represents the |
performance of the predecessor CTF through October 1, 2000, adjusted to reflect the fund’s fees and expenses, by subtracting from the actual performance of the CTF |
the expenses of the fund’s Class M shares as they were estimated prior to the conversion of the CTF into the fund, and the performance of the fund’s Class M shares |
thereafter.The predecessor CTF was not registered under the Investment Company Act of 1940, as amended, and therefore was not subject to certain investment |
restrictions that might have adversely affected performance. In addition, the expenses of the fund’s Class M shares may be higher than those estimated prior to the |
conversion of the CTF into the fund, which would lower the performance shown in the above line graph. |
Effective July 11, 2001, existing fund shares were designated as Class M shares and the fund began offering a second class of shares designated as Investor shares, |
which are subject to a Shareholder Services Plan. |
The fund invests primarily in Pennsylvania investment-grade municipal bonds.The fund’s performance shown in the line graph takes into account all applicable fees |
and expenses for Class M shares only. Performance for Investor shares will vary from the performance of Class M shares shown above because of the differences in |
charges and expenses.The Index is not limited to investments principally in Pennsylvania municipal obligations.The Index is a broad-based, unmanaged, market- |
weighted index of investment grade municipal bonds maturing in the 2-17 year range.These factors can contribute to the Index potentially outperforming the fund. |
Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund |
performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
†† The Index date is based on the life of Class M shares. For comparative purposes, the value of the Index as of 9/30/00 is used as the beginning value on |
10/2/00 (the inception date for Class M shares). |
The Funds | 11 |
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by John F. Flahive and Mary Collette O’Brien, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Massachusetts Intermediate Municipal Bond Fund’s Class M shares produced a total return of 7.75%, Investor shares produced a total return of 7.49% and Dreyfus Premier shares returned 6.94%.1 In comparison, the BofA Merrill Lynch 2-17Year Municipal Bond Index, the fund’s benchmark, returned 8.90% for the same period.2
Despite ongoing fiscal pressures affecting Massachusetts and its municipalities, Massachusetts municipal bonds generally fared well over the reporting period amid robust demand for a limited supply of securities. The fund produced returns that were lower than its benchmark, primarily due to a relatively defensive investment posture.
The Fund’s Investment Approach
The fund seeks as high a level of income exempt from federal and Massachusetts state income taxes as is consistent with the preservation of capital. To pursue its goal, the fund normally invests at least 80% of its assets in municipal bonds, the interest from which is exempt from federal and Massachusetts state personal income taxes.The fund may also invest in municipal bonds that are exempt from federal income taxes, but not Massachusetts personal income taxes, and in taxable bonds.The fund’s investments in municipal and taxable bonds must be rated investment grade at the time of purchase or, if unrated, deemed of comparable quality by the investment adviser.3 Generally, the f und’s average effective portfolio maturity will be between three and 10 years, and the average effective duration of the fund’s portfolio will not exceed eight years.
Rather than focusing on economic or market trends, we search for securities that, in our opinion, will help us enhance the fund’s yield without sacrificing quality. We use a more tactical approach with respect to the fund’s average duration. If we expect the supply of securities to increase temporarily, we may reduce the fund’s average duration to make cash available for the purchase of higher yielding securities.This is because yields generally tend to rise if issuers are competing for investor interest. If we expect demand to surge at a time when we anticipate little issuance and therefore lower yields, we may increase the fund’s average duration to maintain current yields for as long as practical. At other times, we typically try to maintain a neutral average duration.
Supply-and-Demand Factors Supported Municipal Bonds
An improving U.S. economy bolstered investor confidence early in the reporting period as manufacturing activity improved and corporations posted better-than-expected financial results. However, in May 2010, certain European nations found themselves unable to finance heavy debt loads, and inflationary pressures in China kindled fears that potential remedial measures might constrain a key engine of global growth. The United States also encountered greater economic uncertainty when employment and housing data sent mixed signals, and most states—including Massachusetts—continued to struggle with declining tax revenues. Consequently,
12
investor sentiment generally deteriorated over the reporting period’s second half, and the Federal Reserve Board left short-term interest rates unchanged in a historically low range between 0% and 0.25%.
Although these developments caused some segments of the taxable bond market to decline, municipal bonds held up relatively well as a result of positive supply-and-demand dynamics. Issuance of new tax-exempt bonds moderated significantly due to the Build America Bonds program, part of the federal stimulus package that shifted a substantial portion of new issuance to the taxable bond market. Meanwhile, demand intensified as investors sought alternatives to low yielding money market funds. Consequently, longer-term municipal bond prices trended higher, on average, over the reporting period.
Fund Participated to a Degree in Market Rally
In this environment, we maintained a slight bias toward higher-rated municipal bonds in the “single-A” through “triple-A” categories. Conversely, the fund held relatively light exposure to bonds rated “triple-B.” This defensive investment posture dampened the fund’s performance compared to its benchmark. Although the fund received strong contributions to performance from bonds backed by health care facilities, an underweighted position in the market sector limited their impact.
We set the fund’s average duration in a range that was shorter than the benchmark.We achieved this position by focusing on securities in the one- to three-year maturity range, while deemphasizing those in the seven- to 10-year range. This positioning detracted mildly from the fund’s relative performance over the reporting period.
Maintaining a Defensive Posture
We believe demand for municipal bonds seems likely to stay robust as investors grow increasingly concerned about potential income tax increases on the local, state and federal levels. In addition, the Build America Bonds program may be extended into next year. However, like other states, Massachusetts remains under pressure, a situation that is not likely to be resolved anytime soon. Consequently, we generally have maintained a defensive investment posture, including a bias toward higher-rated securities and a relative short average duration.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes, and rate increases can cause price declines. | |
1 | Total return includes reinvestment of dividends and any capital gains paid |
and does not take into consideration the applicable contingent deferred sales | |
charges imposed on redemptions in the case of Dreyfus Premier shares. Past | |
performance is no guarantee of future results. Share price, yield and | |
investment return fluctuate such that upon redemption, fund shares may be | |
worth more or less than their original cost. Income may be subject to state | |
and local taxes for non-Massachusetts residents, and some income may be | |
subject to the federal alternative minimum tax (AMT) for certain investors. | |
Capital gains, if any, are fully taxable. | |
2 | SOURCE: MORNINGSTAR. — Reflects reinvestment of dividends |
and, where applicable, capital gain distributions.The BofA Merrill Lynch | |
2-17Year Municipal Bond Index is an unmanaged total return | |
performance benchmark for the investment-grade, geographically unrestricted | |
tax-exempt bond market, consisting of municipal bonds with maturities | |
ranging from 2 to 17 years. Index return does not reflect the fees and | |
expenses associated with operating a mutual fund. Investors cannot invest | |
directly in any index. | |
3 | The fund may continue to own investment-grade bonds (at the time of |
purchase), which are subsequently downgraded to below investment grade. |
The Funds 13
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Massachusetts Intermediate Municipal Bond Fund Class M shares, Investor shares and Dreyfus Premier shares and the BofA Merrill Lynch 2-17 Year Municipal Bond Index
Average Annual Total Returns as of 8/31/10 | |||
1 Year | 5 Years | 10 Years | |
Class M shares | 7.75% | 4.79% | 4.98% |
Investor shares | 7.49% | 4.54% | 4.71% |
Dreyfus Premier shares | |||
with applicable redemption †† | 3.94% | 3.84% | 4.42% |
without redemption | 6.94% | 4.02% | 4.42% |
BofA Merrill Lynch 2-17 Year Municipal Bond Index | 8.90% | 5.50% | 5.89% |
† Source : Bloomberg L.P. |
Past performance is not predictive of future performance. |
The above graph compares a $10,000 investment made in Class M shares, Investor shares and Dreyfus Premier shares of BNY Mellon Massachusetts Intermediate |
Municipal Bond Fund (the “BNY Mellon Massachusetts Fund”) on 8/31/00 to a $10,000 investment made in the BofA Merrill Lynch 2-17Year Municipal |
Bond Index (the “Index”) on that date.All dividends and capital gain distributions are reinvested. |
As of the close of business on September 6, 2002, substantially all of the assets of another investment company managed by Dreyfus, Dreyfus Premier Limited |
Term Massachusetts Municipal Fund (the “Premier Massachusetts Fund”), were transferred to the BNY Mellon Massachusetts Fund in a tax-free reorganization |
and the fund commenced operations. The performance shown in the line graph for Class M shares represents the performance of the Premier Massachusetts Fund’s |
Class R shares prior to the commencement of operations of the BNY Mellon Massachusetts Fund and the performance of the BNY Mellon Massachusetts Fund’s |
Class M shares thereafter. |
The performance shown in the line graph for Investor shares represents the performance of the Premier Massachusetts Fund’s Class A shares prior to the commencement |
of operations of the BNY Mellon Massachusetts Fund, and the performance of the BNY Mellon Massachusetts Fund’s Investor shares thereafter. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for all share classes.The Index is a broad-based, unmanaged, |
market-weighted index of investment grade municipal bonds maturing in the 2-17 year range.These factors can contribute to the Index outperforming or |
underperforming the fund. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses and is not limited to investments principally in |
Massachusetts municipal obligations. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, |
if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report. Performance for Dreyfus Premier shares assumes the |
conversion of Dreyfus Premier shares to Investor shares at the end of the sixth year following the date of purchase. |
†† The maximum contingent deferred sales charge for Dreyfus Premier shares is 3%.After six years Dreyfus Premier shares convert to Investor shares. |
14
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by John F. Flahive, Portfolio Manager and Director of Fixed Income
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon New York Intermediate Tax-Exempt Bond Fund’s Class M shares produced a total return of 7.45%, and Investor shares produced a total return of 7.17%.1 In comparison, the BofA Merrill Lynch 2-17 Year Municipal Bond Index, the fund’s benchmark, returned 8.90% for the same period.2
Despite ongoing fiscal pressures affecting New York and its municipalities, New York municipal bonds generally fared well over the reporting period amid robust demand for a limited supply of securities. The fund produced returns that were lower than its benchmark, primarily due to a relatively defensive investment posture.
The Fund’s Investment Approach
The fund seeks as high a level of income exempt from federal, NewYork state and NewYork city income taxes as is consistent with the preservation of capital. This objective may be changed without shareholder approval. To pursue its goal, the fund normally invests at least 80% of its assets in municipal bonds that provide income exempt from federal, NewYork state and NewYork city personal income taxes. These municipal bonds include those issued by New York state and New York city as well as those issued by U.S. territories and possessions.3 Generally, the fund’s average effective portfolio maturity will be between three and 10 years.
Rather than focusing on economic or market trends, we search for securities that, in our opinion, will help us enhance the fund’s yield without sacrificing quality.We use a more tactical approach with respect to the fund’s average duration. If we expect the supply of securities to increase temporarily, we may reduce the fund’s average duration to make cash available for the purchase of higher yielding securities.This is because yields generally tend to rise if issuers are competing for investor interest. If we expect demand to surge at a time when we anticipate little issuance and therefore lower yields, we may increase the fund’s average duration to maintain current yields for as long as practical.At other times, we typically try to maintain a neutral average duration.
Supply-and-Demand Factors Supported Municipal Bonds
An improving U.S. economy bolstered confidence among consumers, businesses and investors early in the reporting period as manufacturing activity improved and corporations posted better-than-expected financial results. However, in May 2010 certain European nations found themselves unable to finance heavy debt loads, and inflationary pressures in China kindled fears that potential remedial measures might constrain a key engine of global growth.The United States also encountered greater economic uncertainty when employment and housing data sent mixed signals regarding the strength of the domestic recovery, and most states- including New York—continued to struggle with declining tax revenues. Consequently, investor sentiment generally deteriorated over the reporting period’s second half, and the Federal Reserve Board left short-term interest rates unchanged in a historically low range between 0% and 0.25%.
Although these developments caused some segments of the taxable bond market to decline over the reporting period’s second half, municipal bonds held up relatively well as a result of positive supply-and-demand dynamics. Issuance of new tax-exempt bonds moderated significantly due to the Build America Bonds program, part of the federal stimulus package that shifted a substantial portion of new issuance to the taxable bond market.
The Funds 15
DISCUSSION OF FUND PERFORMANCE (continued)
Meanwhile, demand intensified as investors sought alternatives to low yielding money market funds. Consequently, longer-term municipal bond prices trended higher, on average, over the reporting period.
Fund Participated to a Degree in Market Rally
In this environment, we maintained a slight bias toward higher-rated municipal bonds in the “single-A” through “triple-A” categories. Conversely, the fund held no exposure to bonds rated “triple-B” or lower. This relatively defensive investment posture dampened the fund’s relative performance. Although the fund received strong contributions to performance from bonds backed by revenues from health care facilities, an underweighted position in the market sector limited their impact on overall results.
We set the fund’s average duration in a range that was shorter than the benchmark.We achieved this position by focusing on securities in the one- to three- year maturity range, while deemphasizing those in the seven-to 10- year range. This positioning detracted mildly from the fund’s relative performance over the reporting period.
Maintaining a Defensive Posture
We believe demand for municipal bonds seems likely to stay robust as investors grow increasingly concerned about potential income tax increases on the local, state and federal levels. In addition, the Build America Bonds program may be extended into next year. However, New York’s state and local governments remain under pressure, a situation that is not likely to be resolved anytime soon. Consequently, we generally have maintained a defensive investment posture, including a bias toward higher-rated securities and a relative short average duration.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes and rate increases can cause price declines. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
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. Income may be subject to state | |
and local taxes for non-NewYork residents, and some income may be | |
subject to the federal alternative minimum tax (AMT) for certain investors. | |
Capital gains, if any, are fully taxable. Return figures provided reflect the | |
absorption of certain fund expenses by BNY Mellon Fund Advisors | |
pursuant to an agreement in effect through September 30, 2011, 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: MORNINGSTAR. — Reflects reinvestment of dividends |
and, where applicable, capital gain distributions.The BofA Merrill Lynch | |
2-17Year Municipal Bond Index is an unmanaged total return | |
performance benchmark for the investment-grade, geographically unrestricted | |
tax-exempt bond market, consisting of municipal bonds with maturities | |
ranging from 2 to 17 years. Index return does not reflect the fees and | |
expenses associated with operating a mutual fund. Investors cannot invest | |
directly in any index. | |
3 | The fund may continue to own investment-grade bonds (at the time of |
purchase), which are subsequently downgraded to below investment grade. |
16
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon New York Intermediate Tax-Exempt Bond Fund, Class M shares and Investor shares and the BofA Merrill Lynch 2-17 Year Municipal Bond Index
Average Annual Total Returns as of 8/31/10 | |||
1 Year | 5 Years | 10 Years | |
Class M shares | 7.45% | 4.89% | 4.93% |
Investor shares | 7.17% | 4.65% | 4.67% |
BofA Merrill Lynch 2-17 Year Municipal Bond Index | 8.90% | 5.50% | 5.89% |
† Source: Bloomberg L.P. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares and Investor shares of BNY Mellon NewYork Intermediate Tax-Exempt Bond Fund on |
8/31/00 to a $10,000 investment made in the BofA Merrill Lynch 2-17Year Municipal Bond Index (the “Index”) on that date.All dividends and capital gain |
distributions are reinvested. |
As of the close of business on September 12, 2008, substantially all of the assets of another investment company advised by an affiliate of the fund’s investment |
adviser, BNY Hamilton NewYork Intermediate Tax-Exempt Fund (the “predecessor fund”), a series of BNY Hamilton Funds, Inc., were transferred to BNY Mellon |
NewYork Intermediate Tax-Exempt Bond Fund in a tax-free reorganization and the fund commenced operations.The performance figures for the fund’s Class M |
shares represent the performance of the predecessor fund’s Institutional shares prior to the commencement of operations for BNY Mellon NewYork Intermediate Tax- |
Exempt Bond Fund and the performance of BNY Mellon NewYork Intermediate Tax-Exempt Bond Fund’s Class M shares thereafter.The performance figures for |
Investor shares represent the performance of the predecessor fund’s Class A shares prior to the commencement of operations for BNY Mellon NewYork Intermediate |
Tax-Exempt Bond Fund and the performance of BNY Mellon NewYork Intermediate Tax-Exempt Bond Fund’s Investor shares thereafter. Investor shares are subject |
to a Shareholder Services Plan. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for all share classes.The Index is not limited to investments principally |
in NewYork municipal obligations.The Index is a broad-based, unmanaged, market-weighted index of investment grade municipal bonds maturing in the 2-17 year |
range. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to |
fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report. |
The Funds 17
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by John F. Flahive, Portfolio Manager and Director of Fixed Income
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Municipal Opportunities Fund’s Class M shares produced a total return of 12.38%, and Investor shares returned 12.19%.1 In comparison, the Barclays Capital Municipal Bond Index (the“Index”), the fund’s benchmark, achieved a total return of 9.78% for the same period.2
Despite renewed economic concerns and ongoing fiscal pressures affecting many states and municipalities, municipal bonds generally fared well over the reporting period amid robust demand for a limited supply of securities.The fund produced returns that were higher than its benchmark, primarily due to a bias toward lower-rated securities that fared particularly well in a rallying market environment.
The Fund’s Investment Approach
The fund seeks to maximize total return consisting of high current income exempt from federal income tax and capital appreciation.This objective may be changed without shareholder approval. To pursue its goal, the fund normally invests at least 80% of its assets in U.S. dollar-denominated fixed-income securities that provide income exempt from federal income tax (municipal bonds). While the fund typically invests in a diversified portfolio of municipal bonds, it may invest up to 20% of its assets in taxable fixed-income securities, including taxable municipal bonds and non-U.S. dollar-denominated foreign debt securities, such as Brady bonds and sovereign debt obligations.
We will seek to deliver value-added excess returns (“alpha”) by applying an investment approach designed to identify and exploit relative value opportunities within the municipal bond market and other fixed-income markets. Although the fund seeks to be diversified by geography and sector, the fund may at times invest a significant portion of its assets in a particular state or region or in a particular sector due to market conditions.
Supply-and-Demand Factors Supported Municipal Bonds
An improving U.S. economy bolstered confidence among consumers, businesses and investors early in the reporting period as manufacturing activity increased and corporations posted better-than-expected financial results. However, in May 2010 a number of developments called the recovery into question. Certain European nations found themselves unable to finance heavy debt loads, requiring intervention from the International Monetary Fund and the European Union. Meanwhile, inflationary pressures in China kindled fears that higher interest rates and other remedial measures might constrain a key engine of global economic growth. In the United States, employment and housing data sent mixed signals regarding the strength of the domestic recovery, and most states continued to struggle with declining tax revenues and intensifying demand for services. Consequently, investor sentiment generally deteriorated in the spring and s ummer, and the Federal Reserve Board left short-term interest rates unchanged in a historically low range between 0% and 0.25%.
Although these developments caused some segments of the taxable bond market to decline over the reporting period’s second half, municipal bonds held up relatively
18
well as a result of positive supply-and-demand dynamics. Issuance of new tax-exempt bonds moderated significantly due to the Build America Bonds program, part of the federal stimulus package that shifted a substantial portion of new issuance to the taxable bond market. Meanwhile, demand intensified as individual and institutional investors sought alternatives to low yielding money market funds. Consequently, longer-term municipal bond prices trended higher, on average, over the reporting period, and lower-rated municipal bonds outperformed their higher-quality counterparts as investors reached for attractive yields.
Fund Participated Fully in Market Rally
In this environment, we maintained a bias toward lower-rated municipal bonds that our analysts determined to be fundamentally sound, including overweighted positions in bonds backed by revenues from health care facilities and other projects. Conversely, the fund held relatively light exposure to bonds in the higher credit-rating tiers.This constructive investment posture helped bolster the fund’s relative performance.
We generally set the fund’s average duration in a range that was in line with the benchmark, but we made frequent tactical adjustments in response to changes in relative values along the market’s maturity range. In addition, we employed futures contracts to establish the fund’s duration positions and hedge against unexpected changes in interest-rate movements. These strategies also contributed positively to the fund’s relative performance.
Maintaining a Constructive Investment Posture
Although state and local governments remain under pressure, we are optimistic regarding the municipal bond market’s long-term prospects. Although economic growth has slowed, the recovery has remained intact.We believe demand for municipal bonds seems likely to stay robust as investors grow increasingly concerned about potential income tax increases on the state and federal levels. In addition, the Build America Bonds program may be extended into next year, effectively limiting the supply of newly issued municipal bonds. Consequently, we generally have maintained a constructive investment posture, including a tilt toward lower-rated securities.
September 15, 2010
Bond funds are subject generally to interest rate, credit, liquidity and market | |
risks, to varying degrees, all of which are more fully described in the fund’s | |
prospectus. Generally, all other factors being equal, bond prices are inversely | |
related to interest-rate changes, and rate increases can cause price declines. | |
1 | Total return includes reinvestment of dividends and any capital gains paid. |
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. Income may be subject to state | |
and local taxes, and some income may be subject to the federal alternative | |
minimum tax (AMT) for certain investors. Capital gains, if any, are fully | |
taxable. Return figures provided reflect the absorption of certain fund | |
expenses by BNY Mellon Fund Advisors pursuant to an agreement in | |
effect through December 31, 2009, at which time it was 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 Barclays Capital Municipal | |
Bond Index is an unmanaged total return performance benchmark for the | |
investment-grade, geographically unrestricted tax-exempt bond market. | |
Index return does not reflect the fees and expenses associated with operating | |
a mutual fund. Investors cannot invest directly in any index. |
The Funds 19
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in BNY Mellon Municipal Opportunities Fund Class M shares and Investor shares and the Barclays Capital Municipal Bond Index
Average Annual Total Returns as of 8/31/10 | |||
Inception | From | ||
Date | 1 Year | Inception | |
Class M shares | 10/15/08 | 12.38% | 20.61% |
Investor shares | 10/15/08 | 12.19% | 20.36% |
Barclays Capital Municipal Bond Index | 9/30/08 | 9.78% | 10.79% |
† Source: Lipper Inc. |
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder |
would pay on fund distributions or the redemption of fund shares. |
The above graph compares a $10,000 investment made in Class M shares and Investor shares of BNY Mellon Municipal Opportunities Fund on 10/15/08 |
(inception date) to a $10,000 investment made in the Barclays Capital Municipal Bond Index (the “Index”) on that date. For comparative purposes, the value of the |
Index on 9/30/08 is used as the beginning value on 10/15/08.All dividends and capital gain distributions are reinvested. |
The fund’s performance shown in the line graph takes into account all applicable fees and expenses for all share classes.The Index is an unmanaged total return |
performance benchmark for the long-term, investment-grade, tax-exempt bond market.These factors can contribute to the Index potentially outperforming or |
underperforming the fund. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further |
information relating to fund performance, including expense reimbursements, if applicable, is contained in the Expense section of the prospectus and elsewhere in this report. |
20
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemptions 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 each class of each BNY Mellon municipal bond fund from March 1, 2010 to August 31, 2010. 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 August 31, 2010 | |||
Dreyfus | |||
Class M Shares | Investor Shares | Premier Shares | |
BNY Mellon National Intermediate | |||
Municipal Bond Fund | |||
Expenses paid per $1,000† | $ 2.58 | $ 3.86 | $ 6.43 |
Ending value (after expenses) | $1,045.70 | $1,044.40 | $1,041.80 |
BNY Mellon National Short-Term | |||
Municipal Bond Fund | |||
Expenses paid per $1,000† | $ 2.54 | $ 3.90 | — |
Ending value (after expenses) | $1,011.80 | $1,011.30 | — |
BNY Mellon Pennsylvania | |||
Intermediate Municipal Bond Fund | |||
Expenses paid per $1,000† | $ 3.40 | $ 4.73 | — |
Ending value (after expenses) | $1,042.90 | $1,041.60 | — |
BNY Mellon Massachusetts | |||
Intermediate Municipal Bond Fund | |||
Expenses paid per $1,000† | $ 2.68 | $ 3.97 | $ 6.53 |
Ending value (after expenses) | $1,045.00 | $1,043.70 | $1,040.20 |
BNY Mellon New York | |||
Intermediate Tax-Exempt Bond Fund | |||
Expenses paid per $1,000† | $ 3.03 | $ 4.32 | — |
Ending value (after expenses) | $1,040.30 | $1,039.90 | — |
BNY Mellon Municipal | |||
Opportunities Fund | |||
Expenses paid per $1,000† | $ 3.58 | $ 4.83 | — |
Ending value (after expenses) | $1,060.90 | $1,060.40 | — |
† Expenses are equal to the BNY Mellon National Intermediate Municipal Bond Fund annualized expense ratio of .50% for Class M, .75% for Investor shares and 1.25% for |
Dreyfus Premier shares, BNY Mellon National Short-Term Municipal Bond Fund .50% for Class M and .77% for Investor shares, BNY Mellon Pennsylvania Intermediate |
Municipal Bond Fund .66% for Class M and .92% for Investor shares and BNY Mellon Massachusetts Intermediate Municipal Bond Fund .52% for Class M, .77% for |
Investor shares and 1.27% for Dreyfus Premier shares, BNY Mellon NewYork Intermediate Tax-Exempt Bond Fund .59% for Class M, .84% for Investor shares and BNY |
Mellon Municipal Opportunities Fund .69% for Class M and .93% for Investor shares, multiplied by the respective fund’s average account value over the period, multiplied by |
184/365 (to reflect the one-half year period). |
The Funds 21
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 August 31, 2010 | |||
Dreyfus | |||
Class M Shares | Investor Shares | Premier Shares | |
BNY Mellon National Intermediate | |||
Municipal Bond Fund | |||
Expenses paid per $1,000† | $ 2.55 | $ 3.82 | $ 6.36 |
Ending value (after expenses) | $1,022.68 | $1,021.42 | $1,018.90 |
BNY Mellon National Short-Term | |||
Municipal Bond Fund | |||
Expenses paid per $1,000† | $ 2.55 | $ 3.92 | — |
Ending value (after expenses) | $1,022.68 | $1,021.32 | — |
BNY Mellon Pennsylvania | |||
Intermediate Municipal Bond Fund | |||
Expenses paid per $1,000† | $ 3.36 | $ 4.69 | — |
Ending value (after expenses) | $1,021.88 | $1,020.57 | — |
BNY Mellon Massachusetts | |||
Intermediate Municipal Bond Fund | |||
Expenses paid per $1,000† | $ 2.65 | $ 3.92 | $ 6.46 |
Ending value (after expenses) | $1,022.58 | $1,021.32 | $1,018.80 |
BNY Mellon New York | |||
Intermediate Tax-Exempt Bond Fund | |||
Expenses paid per $1,000† | $ 3.01 | $ 4.28 | — |
Ending value (after expenses) | $1,022.23 | $1,020.97 | — |
BNY Mellon Municipal | |||
Opportunities Fund | |||
Expenses paid per $1,000† | $ 3.52 | $ 4.74 | — |
Ending value (after expenses) | $1,021.73 | $1,020.52 | — |
† Expenses are equal to the BNY Mellon National Intermediate Municipal Bond Fund annualized expense ratio of .50% for Class M, .75% for Investor shares and 1.25% for |
Dreyfus Premier shares, BNY Mellon National Short-Term Municipal Bond Fund .50% for Class M and .77% for Investor shares, BNY Mellon Pennsylvania Intermediate |
Municipal Bond Fund .66% for Class M and .92% for Investor shares, BNY Mellon Massachusetts Intermediate Municipal Bond Fund .52% for Class M, .77% for Investor |
shares and 1.27% for Dreyfus Premier shares, BNY Mellon NewYork Intermediate Tax-Exempt Bond Fund .59% for Class M, .84% for Investor shares and BNY Mellon |
Municipal Opportunities Bond Fund .69% for Class M and .93% for Investor shares, multiplied by the respective fund’s average account value over the period, multiplied by |
184/365 (to reflect the one-half year period). |
22
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon National Intermediate Municipal Bond Fund | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments—94.8% | Rate (%) | Date | Amount ($) | Value ($) |
Alabama—1.7% | ||||
Birmingham Special Care Facilities Financing Authority-Baptist | ||||
Medical Centers, Revenue (Baptist Health System, Inc.) | 5.00 | 11/15/15 | 5,000,000 | 5,280,700 |
Jefferson County, Limited Obligation School Warrants | 5.25 | 1/1/15 | 1,180,000 | 1,109,188 |
Jefferson County, Limited Obligation School Warrants | 5.25 | 1/1/16 | 4,810,000 | 4,439,582 |
Jefferson County, Limited Obligation School Warrants | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/24 | 13,500,000 | 12,879,270 |
Montgomery BMC Special Care Facilities Financing Authority, | ||||
Revenue (Baptist Health) (Insured; National | ||||
Public Finance Guarantee Corp.) | 5.00 | 11/15/13 | 1,365,000 | 1,539,570 |
Montgomery BMC Special Care Facilities Financing Authority, | ||||
Revenue (Baptist Health) (Insured; National | ||||
Public Finance Guarantee Corp.) | 5.00 | 11/15/14 | 2,500,000 | 2,889,325 |
Alaska—.1% | ||||
Anchorage, Electric Utility Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 8.00 | 12/1/10 | 1,000,000 | 1,018,130 |
Arizona—2.5% | ||||
Arizona Board of Regents, Arizona State University | ||||
System Revenue (Polytechnic Campus Project) | 6.00 | 7/1/25 | 2,500,000 | 2,953,000 |
Arizona Board of Regents, Arizona State University | ||||
System Revenue (Polytechnic Campus Project) | 6.00 | 7/1/26 | 1,000,000 | 1,172,180 |
Arizona Board of Regents, Arizona State University | ||||
System Revenue (Polytechnic Campus Project) | 6.00 | 7/1/28 | 1,100,000 | 1,277,925 |
Arizona Transportation Board, Highway Revenue | 5.00 | 7/1/26 | 5,000,000 | 5,661,600 |
Paradise Valley Unified School District Number 69 of Maricopa | ||||
County, GO (Insured; National Public Finance Guarantee Corp.) | 7.00 | 7/1/11 | 1,905,000 | 2,004,936 |
Phoenix, GO | 6.25 | 7/1/16 | 1,250,000 | 1,580,813 |
Phoenix Civic Improvement Corporation, Transit Excise | ||||
Tax Revenue (Light Rail Project) (Insured; AMBAC) | 5.00 | 7/1/16 | 6,000,000 | 6,713,880 |
Salt Verde Financial Corporation, Senior Gas Revenue | 5.50 | 12/1/29 | 3,060,000 | 3,166,763 |
Scottsdale Industrial Development Authority, | ||||
HR (Scottsdale Healthcare) (Prerefunded) | 5.70 | 12/1/11 | 1,000,000 a | 1,076,690 |
Scottsdale Unified School District Number 48 of | ||||
Maricopa County, School Improvement Bonds | 6.60 | 7/1/12 | 1,250,000 | 1,389,138 |
Tucson, GO | 5.00 | 7/1/12 | 1,265,000 | 1,371,538 |
University Medical Center Corporation, HR | 5.25 | 7/1/16 | 2,310,000 | 2,462,275 |
University of Arizona Board of Regents, System Revenue | 6.20 | 6/1/16 | 10,000,000 | 11,537,500 |
California—14.8% | ||||
Agua Caliente Band, Cahuilla Indians Revenue | 5.60 | 7/1/13 | 1,220,000 b | 1,210,935 |
Alameda Corridor Transportation Authority, | ||||
Revenue (Insured; AMBAC) | 0/5.25 | 10/1/21 | 5,000,000 c | 4,444,450 |
California, Economic Recovery Bonds | 5.00 | 7/1/15 | 2,950,000 | 3,365,743 |
California, Economic Recovery Bonds (Prerefunded) | 5.00 | 7/1/14 | 2,050,000 a | 2,389,172 |
The Funds 23
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
California (continued) | ||||
California, GO | 5.00 | 11/1/12 | 345,000 | 361,077 |
California, GO | 5.50 | 6/1/20 | 270,000 | 270,994 |
California, GO | 5.25 | 11/1/26 | 10,500,000 | 11,256,840 |
California, GO | 5.50 | 11/1/33 | 3,900,000 | 4,037,514 |
California, GO (Prerefunded) | 5.00 | 11/1/11 | 655,000 a | 691,759 |
California, GO (Various Purpose) | 6.00 | 3/1/33 | 10,000,000 | 11,419,200 |
California, GO (Various Purpose) | 6.50 | 4/1/33 | 3,000,000 | 3,522,360 |
California, GO (Various Purpose) | 6.00 | 4/1/38 | 6,000,000 | 6,700,320 |
California, GO (Various Purpose) (Prerefunded) | 5.00 | 2/1/14 | 1,825,000 a | 2,098,695 |
California County Tobacco Securitization Agency, | ||||
Tobacco Settlement Asset-Backed Bonds | ||||
(Golden Gate Tobacco Funding Corporation) | 4.50 | 6/1/21 | 2,520,000 | 2,282,994 |
California County Tobacco Securitization Agency, | ||||
Tobacco Settlement Asset-Backed Bonds | ||||
(Los Angeles County Securitization Corporation) | 0/5.25 | 6/1/21 | 1,250,000 c | 1,122,775 |
California Department of Water Resources, Power Supply Revenue | 5.00 | 5/1/19 | 20,000,000 | 24,399,800 |
California Department of Water Resources, Power Supply Revenue | 5.00 | 5/1/20 | 15,000,000 | 18,353,550 |
California Department of Water Resources, Power Supply Revenue | 5.00 | 5/1/22 | 5,000,000 | 5,987,550 |
California Department of Water Resources, Power Supply | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 5/1/21 | 10,000,000 | 11,474,600 |
California Educational Facilities Authority, | ||||
Revenue (University of Southern California) | 5.25 | 10/1/38 | 2,500,000 | 2,767,600 |
California Health Facilities Financing Authority, | ||||
Revenue (Providence Health and Services) | 6.25 | 10/1/24 | 8,500,000 | 10,119,845 |
California Health Facilities Financing Authority, | ||||
Revenue (Providence Health and Services) | 6.25 | 10/1/28 | 4,000,000 | 4,667,320 |
California Health Facilities Financing Authority, | ||||
Revenue (Providence Health and Services) | 6.50 | 10/1/38 | 3,500,000 | 4,065,005 |
California Infrastructure and Economic Development Bank, | ||||
Clean Water State Revolving Fund Revenue | 5.00 | 10/1/17 | 2,500,000 | 2,709,550 |
California Infrastructure and Economic Development Bank, Revenue | ||||
(California Independent System Operator Corporation Project) | 6.00 | 2/1/30 | 8,000,000 | 8,614,720 |
California Infrastructure and Economic Development Bank, | ||||
Revenue (The J. David Gladstone Institutes Project) | 5.50 | 10/1/22 | 3,990,000 | 4,111,535 |
California State Public Works Board, LR | ||||
(Department of General Services) (Capitol East | ||||
End Complex—Blocks 171-174 and 225) (Insured; AMBAC) | 5.25 | 12/1/19 | 5,000,000 | 5,156,900 |
California State Public Works Board, LR | ||||
(Department of Mental Health-Coalinga State Hospital) | 5.00 | 6/1/24 | 1,500,000 | 1,524,630 |
California Statewide Communities Development Authority, | ||||
Insured Revenue (Saint Joseph Health System) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 4.50 | 7/1/18 | 3,940,000 | 4,194,682 |
California Statewide Communities Development Authority, | ||||
Mortgage Revenue (Methodist Hospital of | ||||
Southern California Project) (Collateralized; FHA) | 6.25 | 8/1/24 | 5,000,000 | 6,011,250 |
24
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
California (continued) | ||||
California Statewide Communities Development Authority, | ||||
Revenue (The California Endowment) | 5.25 | 7/1/15 | 1,740,000 | 1,946,573 |
Golden State Tobacco Securitization Corporation, | ||||
Enhanced Tobacco Settlement Asset-Backed Bonds | 5.00 | 6/1/18 | 590,000 | 590,236 |
Golden State Tobacco Securitization Corporation, | ||||
Tobacco Settlement Asset-Backed Bonds | 4.50 | 6/1/27 | 10,280,000 | 9,309,876 |
Hesperia Public Financing Authority, Revenue | ||||
(Redevelopment and Housing Projects) (Insured; XLCA) | 5.00 | 9/1/37 | 4,200,000 | 3,514,686 |
Kern High School District, GO (Insured; | ||||
National Public Finance Guarantee Corp.) | 6.40 | 2/1/12 | 2,750,000 | 2,864,840 |
Los Angeles Department of Water and Power, | ||||
Power System Revenue | 5.00 | 7/1/30 | 7,500,000 | 7,933,575 |
Los Angeles Unified School District, GO | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 7/1/24 | 2,395,000 | 2,655,289 |
Los Angeles Unified School District, GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.75 | 7/1/16 | 2,000,000 | 2,452,320 |
New Haven Unified School District, GO | ||||
(Insured; Assured Guaranty Municipal Corp.) | 0.00 | 8/1/33 | 4,000,000 d | 1,052,880 |
Newport Beach, Revenue | ||||
(Hoag Memorial Hospital Presbyterian) | 5.00 | 2/7/13 | 5,000,000 | 5,462,750 |
Oakland Joint Powers Financing Authority, LR | ||||
(Oakland Convention Centers) (Insured; AMBAC) | 5.50 | 10/1/13 | 1,500,000 | 1,637,145 |
Oceanside Unified School District, GO | ||||
(Insured; Assured Guaranty Municipal Corp.) | 0.00 | 8/1/36 | 11,100,000 d | 2,484,402 |
Sacramento County Airport System Subordinate | ||||
and Passenger Facility Charges Grant Revenue | 6.00 | 7/1/35 | 3,000,000 | 3,292,020 |
Sacramento County Water Financing Authority, | ||||
Revenue (Sacramento County Water Agency | ||||
Zones 40 and 41 Water System Project) | ||||
(Insured; National Public Finance Guarantee Corp.) | 0.94 | 6/1/34 | 8,000,000 e | 5,186,960 |
Sacramento Municipal Utility District, Electric Revenue | 5.30 | 7/1/12 | 390,000 | 410,303 |
Sacramento Municipal Utility District, Electric Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.25 | 5/15/13 | 3,530,000 | 3,939,056 |
San Francisco City and County Public Utilities | ||||
Commission, San Francisco Water Revenue | 5.00 | 11/1/26 | 5,000,000 | 5,742,050 |
Santa Barbara Financing Authority, Revenue (Airport Project) | 5.00 | 7/1/39 | 3,000,000 | 3,120,360 |
Southern California Public Power Authority, | ||||
Gas Project Revenue (Project Number One) | 5.00 | 11/1/28 | 1,000,000 | 1,008,270 |
Southern California Public Power Authority, Power Project Revenue | ||||
(San Juan Unit 3) (Insured; Assured Guaranty Municipal Corp.) | 5.50 | 1/1/13 | 3,010,000 | 3,347,120 |
Southern California Public Power Authority, Power Project Revenue | ||||
(San Juan Unit 3) (Insured; Assured Guaranty Municipal Corp.) | 5.50 | 1/1/14 | 2,000,000 | 2,306,060 |
Southern California Public Power Authority, | ||||
Revenue (Windy Point/Windy Flats Project) | 5.00 | 7/1/30 | 8,000,000 f | 8,812,240 |
Westside Unified School District, GO (Insured; AMBAC) | 6.00 | 8/1/14 | 385,000 | 441,603 |
The Funds 25
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Colorado—4.3% | ||||
Colorado Health Facilities Authority, | ||||
Revenue (Catholic Health Initiatives) | 6.00 | 10/1/23 | 2,000,000 | 2,338,580 |
Colorado Health Facilities Authority, | ||||
Revenue (Catholic Health Initiatives) | 6.25 | 10/1/33 | 1,600,000 | 1,821,968 |
Colorado Health Facilities Authority, | ||||
Revenue (Vail Valley Medical Center Project) | 5.00 | 1/15/20 | 1,250,000 | 1,294,550 |
Colorado Housing and Finance Authority, SFMR | 4.90 | 11/1/11 | 1,210,000 | 1,247,183 |
Colorado Housing and Finance Authority, | ||||
Single Family Program Senior and Subordinate Bonds | 6.75 | 4/1/15 | 50,000 | 50,916 |
Colorado Housing and Finance Authority, | ||||
Single Family Program Senior and Subordinate Bonds | 6.05 | 10/1/16 | 60,000 | 64,252 |
Colorado Housing and Finance Authority, | ||||
Single Family Program Senior and Subordinate Bonds | 6.70 | 10/1/16 | 25,000 | 26,125 |
Colorado Housing and Finance Authority, Single Family | ||||
Program Senior and Subordinate Bonds (Collateralized; FHA) | 6.75 | 10/1/21 | 145,000 | 159,815 |
Colorado Housing and Finance Authority, Single Family | ||||
Program Senior and Subordinate Bonds (Collateralized; FHA) | 7.15 | 10/1/30 | 35,000 | 35,754 |
Denver City and County, Airport System Revenue | ||||
(Insured: Assured Guaranty Municipal Corp. | ||||
and National Public Finance Guarantee Corp.) | 5.25 | 11/15/19 | 4,445,000 | 4,978,756 |
E-470 Public Highway Authority, Senior Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 0/5.00 | 9/1/16 | 3,565,000 c | 3,876,046 |
E-470 Public Highway Authority, Senior Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.25 | 9/1/16 | 5,000,000 | 5,410,800 |
E-470 Public Highway Authority, Senior Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 0/5.00 | 9/1/17 | 3,500,000 c | 3,819,340 |
Jefferson County School District, GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 6.50 | 12/15/10 | 1,500,000 | 1,526,550 |
Northwest Parkway Public Highway Authority, | ||||
Revenue (Insured; AMBAC) (Prerefunded) | 0/5.45 | 6/15/16 | 7,690,000 a,c | 8,836,271 |
Northwest Parkway Public Highway Authority, | ||||
Revenue (Insured; AMBAC) (Prerefunded) | 0/5.70 | 6/15/16 | 7,345,000 a,c | 8,525,562 |
Northwest Parkway Public Highway Authority, Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) (Prerefunded) | 0/5.55 | 6/15/16 | 10,960,000 a,c | 12,644,881 |
Public Authority for Colorado Energy, Natural Gas Purchase Revenue | 5.75 | 11/15/18 | 3,120,000 | 3,443,170 |
Public Authority for Colorado Energy, Natural Gas Purchase Revenue | 6.13 | 11/15/23 | 4,645,000 | 5,190,648 |
University of Colorado Regents, Enterprise System Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) (Prerefunded) | 4.75�� | 6/1/12 | 2,000,000 a | 2,154,420 |
University of Colorado Regents, Participation Interest (Sempra | ||||
Energy Colorado, Inc., Lease, Development and Operating | ||||
Agreement) (Insured; National Public Finance Guarantee Corp.) | 6.00 | 12/1/22 | 5,000,000 | 5,165,300 |
26
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Connecticut—.4% | ||||
Connecticut, GO (Insured; AMBAC) | 5.25 | 6/1/18 | 1,500,000 | 1,861,830 |
Connecticut Health and Educational Facilities Authority, | ||||
Revenue (Connecticut State University System Issue) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 11/1/14 | 1,260,000 | 1,460,579 |
Connecticut Health and Educational Facilities Authority, | ||||
Revenue (Stamford Hospital Issue) | 5.00 | 7/1/30 | 3,150,000 | 3,281,481 |
District of Columbia—.6% | ||||
District of Columbia, GO (Insured; Assured Guaranty Municipal Corp.) | 2.00 | 6/1/16 | 5,000,000 e | 4,841,800 |
Metropolitan Washington Airports Authority, Airport System | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.25 | 10/1/12 | 2,470,000 | 2,478,423 |
Metropolitan Washington Airports Authority, Airport System | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.75 | 10/1/14 | 2,270,000 | 2,478,658 |
Florida—7.1% | ||||
Citizens Property Insurance Corporation, High-Risk Account Senior | ||||
Secured Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 6/1/15 | 15,000,000 | 16,309,200 |
Florida Department of Transportation, | ||||
State Infrastructure Bank Revenue | 5.00 | 7/1/19 | 4,220,000 | 4,918,748 |
Florida Department of Transportation, | ||||
State Infrastructure Bank Revenue | 5.00 | 7/1/20 | 2,500,000 | 2,881,575 |
Florida Hurricane Catastrophe Fund Finance Corporation, Revenue | 5.00 | 7/1/11 | 5,000,000 | 5,149,800 |
Florida Hurricane Catastrophe Fund Finance Corporation, Revenue | 5.00 | 7/1/15 | 15,000,000 | 16,581,600 |
Florida Municipal Loan Council, Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.75 | 11/1/15 | 520,000 | 528,590 |
Hillsborough County Aviation Authority, Revenue | ||||
(Tampa International Airport) (Insured; AMBAC) | 5.13 | 10/1/20 | 3,540,000 | 3,896,513 |
Hillsborough County Aviation Authority, Revenue | ||||
(Tampa International Airport) (Insured; AMBAC) | 5.13 | 10/1/21 | 3,675,000 | 4,014,643 |
Hillsborough County Educational Facilities Authority, | ||||
Revenue (University of Tampa Project) (Insured; Radian) | 5.75 | 4/1/18 | 2,280,000 | 2,305,673 |
Lee County, Airport Revenue (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.88 | 10/1/10 | 3,000,000 a | 3,041,910 |
Miami-Dade County, Aviation Revenue (Miami International Airport) | 5.00 | 10/1/10 | 3,000,000 | 3,010,140 |
Miami-Dade County, Aviation Revenue (Miami International Airport) | 5.50 | 10/1/41 | 5,000,000 | 5,291,300 |
Miami-Dade County, Subordinate Special Obligation Bonds | ||||
(Insured; National Public Finance Guarantee Corp.) | 0/5.00 | 10/1/22 | 2,000,000 c | 1,802,800 |
Miami-Dade County, Water and Sewer System Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 10/1/39 | 15,000,000 | 15,914,250 |
Orlando Utilities Commission, Utility System Revenue | 2.10 | 10/1/16 | 13,400,000 e | 12,691,676 |
Orlando-Orange County Expressway Authority, | ||||
Revenue (Insured; AMBAC) | 5.00 | 7/1/13 | 4,710,000 | 5,219,575 |
The Funds 27
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Florida (continued) | ||||
Sarasota County, Limited Ad Valorem Tax Bonds | ||||
(Environmentally Sensitive Lands and Parkland Program) | 5.25 | 10/1/25 | 6,895,000 | 7,758,599 |
Seminole Tribe, Special Obligation Revenue | 5.75 | 10/1/22 | 5,000,000 b | 5,043,400 |
Seminole Tribe, Special Obligation Revenue | 5.50 | 10/1/24 | 2,000,000 b | 1,978,660 |
Georgia—3.6% | ||||
Burke County Development Authority, PCR | ||||
(Oglethorpe Power Corporation Vogtle Project) | 7.00 | 1/1/23 | 6,000,000 | 7,308,480 |
Burke County Development Authority, PCR (Oglethorpe | ||||
Power Corporation Vogtle Project) (Insured; | ||||
National Public Finance Guarantee Corp.) | 4.75 | 4/1/11 | 17,500,000 | 17,892,525 |
Chatham County Hospital Authority, HR Improvement | ||||
(Memorial Health University Medical Center, Inc.) | 5.75 | 1/1/29 | 5,000,000 | 5,028,100 |
Crisp County Development Authority, EIR | ||||
(International Paper Company Project) | 5.55 | 2/1/15 | 1,000,000 | 1,068,200 |
Fulton County, Water and Sewerage Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 1/1/35 | 10,000,000 | 10,576,100 |
Fulton County Development Authority, Revenue (Spelman College) | 5.00 | 6/1/24 | 2,010,000 | 2,189,372 |
Georgia, GO | 5.40 | 11/1/10 | 1,000,000 | 1,008,630 |
Main Street Natural Gas Inc., Gas Project Revenue | 6.38 | 7/15/38 | 1,335,000 g | 798,010 |
Municipal Electric Authority of Georgia, GO | ||||
(Project One Subordinated Bonds) | 5.75 | 1/1/20 | 5,000,000 | 6,038,650 |
Private Colleges and Universities Authority, | ||||
Revenue (Emory University) | 5.00 | 9/1/18 | 2,000,000 | 2,290,280 |
Putnam County Development Authority, | ||||
PCR (Georgia Power Company) | 5.10 | 6/1/23 | 6,120,000 | 6,361,250 |
Hawaii—.5% | ||||
Hawaii Department of Budget and Finance, Special Purpose Revenue | ||||
(Hawaiian Electric Company, Inc. and Subsidiary Projects) | 6.50 | 7/1/39 | 7,000,000 | 7,799,960 |
Idaho—.7% | ||||
University of Idaho Regents, General Revenue | 5.25 | 4/1/21 | 10,515,000 f | 11,559,455 |
Illinois—5.6% | ||||
Chicago, GO (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/14 | 5,000,000 | 5,609,350 |
Chicago, GO (Modern Schools Across | ||||
Chicago Program) (Insured; AMBAC) | 5.00 | 12/1/17 | 1,110,000 | 1,288,199 |
Chicago Metropolitan Water Reclamation | ||||
District, GO Capital Improvement | 7.25 | 12/1/12 | 8,500,000 | 9,782,225 |
Cook County, GO Capital Improvement (Insured; AMBAC) | 5.00 | 11/15/25 | 5,000,000 | 5,393,450 |
DuPage, Cook and Will Counties Community | ||||
College District Number 502, GO (Prerefunded) | 5.25 | 6/1/13 | 5,980,000 a | 6,756,862 |
Illinois, GO | 5.00 | 9/1/19 | 7,500,000 | 7,963,425 |
Illinois, GO (Fund for Infrastructure, Roads, School and Transit) | 5.25 | 10/1/15 | 3,000,000 | 3,184,440 |
Illinois, GO (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/20 | 5,000,000 | 5,635,000 |
28
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Illinois (continued) | ||||
Illinois, GO (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/22 | 2,000,000 | 2,203,520 |
Illinois, GO (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/23 | 5,000,000 | 5,471,600 |
Illinois Finance Authority, Gas Supply Revenue (The Peoples | ||||
Gas Light and Coke Company Project) (Insured; AMBAC) | 4.30 | 6/1/16 | 2,500,000 | 2,646,375 |
Illinois Health Facilities Authority, Revenue | ||||
(Loyola University Health System) | 5.75 | 7/1/11 | 540,000 | 556,702 |
Illinois Housing Development Authority, MFHR | ||||
(Lifelink Developments) (Collateralized; GNMA) | 4.13 | 10/20/16 | 850,000 | 882,665 |
Illinois Toll Highway Authority, Toll Highway Senior | ||||
Priority Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/24 | 15,000,000 | 16,438,200 |
Metropolitan Pier and Exposition Authority, | ||||
Dedicated State Tax Revenue (Insured; AMBAC) | 5.38 | 6/1/14 | 5,000,000 | 5,017,400 |
Metropolitan Pier and Exposition Authority, | ||||
Dedicated State Tax Revenue (McCormick | ||||
Place Expansion Project) (Insured; AMBAC) | 5.25 | 6/15/27 | 8,200,000 | 8,208,692 |
Regional Transportation Authority, GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 7.75 | 6/1/12 | 1,890,000 | 2,106,500 |
Will County School District Number 161, GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 1/1/23 | 4,355,000 | 4,655,103 |
Indiana—.5% | ||||
Indiana Finance Authority, Acquisition Revenue | ||||
(National Collegiate Athletic Association Project) | 5.00 | 5/1/15 | 1,000,000 | 1,172,890 |
Indiana Health Facility Financing Authority, HR | ||||
(The Methodist Hospitals, Inc.) | 5.25 | 9/15/10 | 650,000 | 650,435 |
Indiana Health Facility Financing Authority, HR | ||||
(The Methodist Hospitals, Inc.) | 5.25 | 9/15/11 | 750,000 | 761,423 |
Indiana Municipal Power Agency, | ||||
Power Supply System Revenue (Insured; AMBAC) | 5.13 | 1/1/20 | 4,045,000 | 4,214,769 |
Indiana University Trustees, Student Fee Revenue (Indiana | ||||
University) (Insured; National Public Finance Guarantee Corp.) | 5.00 | 8/1/11 | 1,425,000 | 1,486,959 |
Iowa—.2% | ||||
Muscatine, Electric Revenue (Insured; AMBAC) | 5.50 | 1/1/11 | 3,000,000 | 3,048,120 |
Kansas—.3% | ||||
Wyandotte County/Kansas City Unified Government, | ||||
Utility System Revenue (Insured; AMBAC) | 5.65 | 9/1/22 | 5,000,000 | 5,696,850 |
Kentucky—.5% | ||||
Kentucky Housing Corporation, Housing Revenue | 4.80 | 7/1/20 | 3,000,000 | 3,069,270 |
Kentucky Turnpike Authority, EDR | ||||
(Revitalization’s Projects) (Insured; AMBAC) | 5.50 | 7/1/12 | 1,250,000 | 1,366,688 |
Louisville and Jefferson County Metropolitan Sewer District, | ||||
Sewer and Drainage System Revenue (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.50 | 5/15/34 | 4,000,000 | 4,231,120 |
The Funds 29
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Louisiana—2.7% | ||||
Jefferson Sales Tax District, Special Sales | ||||
Tax Revenue (Insured; AMBAC) | 5.25 | 12/1/21 | 4,375,000 | 5,035,275 |
Louisiana, Gasoline and Fuels Tax Second Lien Revenue | 1.05 | 6/1/13 | 5,000,000 e | 5,022,450 |
Louisiana Citizens Property Insurance Corporation, | ||||
Assessment Revenue (Insured; AMBAC) | 5.25 | 6/1/13 | 5,000,000 | 5,394,600 |
Louisiana Citizens Property Insurance Corporation, | ||||
Assessment Revenue (Insured; AMBAC) | 5.00 | 6/1/21 | 5,500,000 | 5,707,570 |
Louisiana Citizens Property Insurance Corporation, Assessment | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 6.13 | 6/1/25 | 14,500,000 | 16,648,320 |
Louisiana Local Government Environmental Facilities and | ||||
Community Development Authority, Revenue (Louisiana Community | ||||
and Technical College System Facilities Corporation Project) | 5.00 | 10/1/22 | 5,000,000 | 5,726,200 |
Louisiana Public Facilities Authority, Revenue | ||||
(CHRISTUS Health Obligated Group) | 6.00 | 7/1/29 | 2,000,000 | 2,184,540 |
Maine—.5% | ||||
Maine Health and Higher Educational | ||||
Facilities Authority, Revenue (Insured; AMBAC) | 5.00 | 7/1/31 | 5,000,000 | 5,289,550 |
Maine Housing Authority, Mortgage Purchase Bonds | 4.75 | 11/15/21 | 2,450,000 | 2,497,457 |
Maine Housing Authority, Mortgage Purchase Bonds | 5.30 | 11/15/23 | 715,000 | 724,946 |
Maryland—.2% | ||||
University System of Maryland, Auxiliary Facility | ||||
and Tuition Revenue (Prerefunded) | 5.00 | 4/1/13 | 2,405,000 a | 2,688,044 |
Massachusetts—3.3% | ||||
Boston Water and Sewer Commission, General Revenue | 5.00 | 11/1/26 | 2,155,000 | 2,517,859 |
Massachusetts, Consolidated Loan | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.50 | 10/1/20 | 3,285,000 | 4,209,103 |
Massachusetts Development Finance Agency, Revenue | ||||
(Combined Jewish Philanthropies of Greater Boston, Inc. Project) | 4.75 | 2/1/15 | 3,085,000 | 3,305,238 |
Massachusetts Development Finance Agency, | ||||
Revenue (Olin College Issue) (Insured; XLCA) | 5.25 | 7/1/33 | 5,000,000 | 5,109,050 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 5.25 | 7/1/29 | 3,500,000 | 3,520,510 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Simmons College Issue) | 7.50 | 10/1/22 | 2,000,000 | 2,498,140 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Simmons College Issue) | 8.00 | 10/1/29 | 5,000,000 | 5,866,300 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Simmons College Issue) | 8.00 | 10/1/39 | 1,500,000 | 1,736,835 |
Massachusetts Housing Finance Agency, Housing Revenue | 5.13 | 12/1/34 | 350,000 | 350,742 |
Massachusetts Municipal Wholesale Electric Company, | ||||
Power Supply Project Revenue (Nuclear Project Number 4 Issue) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.25 | 7/1/12 | 2,000,000 | 2,118,900 |
Massachusetts School Building Authority, | ||||
Dedicated Sales Tax Revenue (Insured; AMBAC) | 5.00 | 8/15/20 | 6,000,000 | 7,039,080 |
30
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts (continued) | ||||
Massachusetts School Building Authority, Dedicated Sales Tax | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 8/15/30 | 15,000,000 | 16,250,250 |
Massachusetts Water Pollution Abatement Trust (Pool Program) | 5.25 | 8/1/17 | 275,000 | 320,103 |
Massachusetts Water Pollution Abatement Trust, | ||||
Water Pollution Abatement Revenue (MWRA Program) | 5.75 | 8/1/29 | 380,000 | 381,516 |
Michigan—1.3% | ||||
Detroit, Water Supply System Second Lien Revenue (Insured; FGIC) | 5.75 | 7/1/22 | 7,000,000 | 8,156,610 |
Michigan Municipal Bond Authority, | ||||
Clean Water Revolving Fund Revenue | 5.25 | 10/1/18 | 2,000,000 | 2,088,400 |
Michigan Municipal Bond Authority, | ||||
Clean Water Revolving Fund Revenue | 5.00 | 10/1/21 | 5,000,000 | 5,227,150 |
Michigan Municipal Bond Authority, | ||||
Drinking Water Revolving Fund Revenue | 5.50 | 10/1/15 | 1,000,000 | 1,205,670 |
Michigan Tobacco Settlement Finance Authority, | ||||
Tobacco Settlement Asset-Backed Bonds | 5.13 | 6/1/22 | 4,945,000 | 4,362,034 |
Minnesota—1.4% | ||||
Minneapolis, Health Care System Revenue (Fairview Health Services) | 6.63 | 11/15/28 | 12,000,000 | 13,920,000 |
Minnesota Higher Education Facilities Authority, | ||||
Revenue (Macalester College) | 5.00 | 3/1/14 | 1,410,000 | 1,615,367 |
University of Minnesota Regents, Special Purpose | ||||
Revenue (State Supported Stadium Debt) | 5.00 | 8/1/19 | 6,300,000 | 7,245,189 |
Mississippi—.2% | ||||
Mississippi Home Corporation, SFMR | ||||
(Collateralized: FHLMC, FNMA and GNMA) | 4.38 | 12/1/18 | 2,065,000 | 2,125,670 |
Mississippi State University Educational Building Corporation, | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.25 | 8/1/16 | 400,000 | 480,300 |
Missouri—.3% | ||||
Curators of the University of Missouri, System Facilities Revenue | 5.00 | 11/1/12 | 2,000,000 | 2,195,740 |
Missouri Environmental Improvement and Energy Resource Authority, | ||||
Water PCR (State Revolving Fund Program—Master Trust) | 5.50 | 7/1/14 | 1,250,000 | 1,469,525 |
Missouri Housing Development Commission, SFMR (Homeownership | ||||
Loan Program) (Collateralized: FNMA and GNMA) | 5.05 | 9/1/24 | 620,000 | 628,705 |
Nebraska—.2% | ||||
Nebraska Investment Finance Authority, SFHR | ||||
(Collateralized: FHLMC, FNMA and GNMA) | 4.70 | 9/1/21 | 1,060,000 | 1,078,444 |
Nebraska Investment Finance Authority, SFHR | ||||
(Collateralized: FHLMC, FNMA and GNMA) | 5.25 | 9/1/22 | 615,000 | 623,309 |
Omaha City, GO (City of Omaha Convention Center/Arena Project) | 6.50 | 12/1/16 | 1,000,000 | 1,295,130 |
Omaha Public Power District, Electric Revenue | 7.63 | 2/1/12 | 935,000 | 992,166 |
Nevada—1.7% | ||||
Clark County, Highway Revenue (Motor Vehicle Fuel Tax) | 5.00 | 7/1/28 | 15,000,000 | 16,187,250 |
Clark County School District, GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 6/15/20 | 10,000,000 | 11,657,400 |
The Funds 31
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New Hampshire—.1% | ||||
Nashua, Capital Improvement Bonds (Prerefunded) | 5.50 | 7/15/12 | 560,000 a | 614,146 |
New Hampshire Business Finance Authority, | ||||
PCR (Central Maine Power Company) | 5.38 | 5/1/14 | 1,000,000 | 1,105,270 |
New Jersey—3.6% | ||||
Garden State Preservation Trust, Open Space and Farmland | ||||
Preservation Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.13 | 11/1/16 | 1,000,000 | 1,211,490 |
Garden State Preservation Trust, Open Space and Farmland | ||||
Preservation Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.80 | 11/1/17 | 2,500,000 | 3,059,925 |
Garden State Preservation Trust, Open Space and Farmland | ||||
Preservation Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.80 | 11/1/18 | 5,000,000 | 6,021,300 |
Garden State Preservation Trust, Open Space and Farmland | ||||
Preservation Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.80 | 11/1/19 | 5,000,000 | 6,021,300 |
Garden State Preservation Trust, Open Space and Farmland | ||||
Preservation Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.80 | 11/1/23 | 5,000,000 | 6,018,550 |
New Jersey Economic Development Authority, Cigarette Tax Revenue | 5.38 | 6/15/15 | 4,400,000 | 4,641,384 |
New Jersey Economic Development Authority, Cigarette Tax Revenue | 5.50 | 6/15/24 | 3,000,000 | 2,998,860 |
New Jersey Economic Development Authority, | ||||
School Facilities Construction Revenue | 5.00 | 3/1/17 | 2,000,000 | 2,274,060 |
New Jersey Economic Development Authority, | ||||
School Facilities Construction Revenue | 5.00 | 3/1/18 | 1,000,000 | 1,137,030 |
New Jersey Educational Facilities Authority, Revenue | ||||
(Rowan University Issue) (Insured; FGIC) (Prerefunded) | 5.25 | 7/1/11 | 100,000 a | 105,179 |
New Jersey Educational Facilities Authority, Revenue | ||||
(Rowan University Issue) (Insured; National | ||||
Public Finance Guarantee Corp.) | 5.25 | 6/30/13 | 900,000 | 940,149 |
New Jersey Educational Facilities Authority, Revenue | ||||
(University of Medicine and Dentistry of New Jersey Issue) | 7.50 | 12/1/32 | 3,750,000 | 4,414,725 |
New Jersey Transit Corporation, COP (Federal Transit | ||||
Administration Grants) (Insured; AMBAC) (Prerefunded) | 6.00 | 9/15/10 | 2,000,000 a | 2,004,520 |
New Jersey Transportation Trust Fund | ||||
Authority (Transportation System) | 0.00 | 12/15/29 | 10,000,000 d | 3,764,200 |
New Jersey Transportation Trust Fund | ||||
Authority (Transportation System) | 0.00 | 12/15/30 | 15,000,000 d | 5,262,300 |
New Jersey Turnpike Authority, Turnpike Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 1/1/19 | 1,000,000 | 1,093,790 |
Tobacco Settlement Financing Corporation of | ||||
New Jersey, Tobacco Settlement Asset-Backed Bonds | 4.50 | 6/1/23 | 8,945,000 | 8,438,534 |
New Mexico—.1% | ||||
New Mexico Finance Authority, Revenue | ||||
(Public Project Revolving Fund) (Insured; AMBAC) | 5.25 | 6/1/17 | 1,000,000 | 1,142,240 |
New York—7.3% | ||||
Albany Industrial Development Agency, Civic Facility | ||||
Revenue (Saint Peter’s Hospital of the City of Albany Project) | 5.75 | 11/15/22 | 1,000,000 | 1,074,410 |
Greece Central School District, GO (Insured; FGIC) | 6.00 | 6/15/11 | 950,000 | 993,956 |
Greece Central School District, GO (Insured; FGIC) | 6.00 | 6/15/12 | 950,000 | 1,047,745 |
32
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York (continued) | ||||
Greece Central School District, GO (Insured; FGIC) | 6.00 | 6/15/13 | 950,000 | 1,097,791 |
Greece Central School District, GO (Insured; FGIC) | 6.00 | 6/15/14 | 950,000 | 1,143,030 |
Greece Central School District, GO (Insured; FGIC) | 6.00 | 6/15/15 | 950,000 | 1,173,506 |
Long Island Power Authority, Electric System General Revenue | 5.25 | 12/1/12 | 4,000,000 | 4,417,400 |
Metropolitan Transportation Authority, Commuter Facilities Revenue | 5.50 | 7/1/11 | 1,000,000 | 1,004,330 |
Metropolitan Transportation Authority, Dedicated Tax Fund | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.00 | 11/15/28 | 2,880,000 | 3,140,755 |
Metropolitan Transportation Authority, | ||||
State Service Contract Revenue | 5.50 | 7/1/16 | 5,000,000 | 5,835,900 |
Metropolitan Transportation Authority, | ||||
State Service Contract Revenue | 5.75 | 1/1/18 | 1,500,000 | 1,841,655 |
Metropolitan Transportation Authority, | ||||
Transit Facilities Revenue (Insured; FGIC) | 0.00 | 7/1/11 | 1,000,000 d | 997,500 |
Metropolitan Transportation Authority, Transportation Revenue | 6.50 | 11/15/28 | 12,000,000 | 14,414,880 |
Monroe County, Public Improvement GO | 6.00 | 6/1/11 | 115,000 | 116,512 |
New York City, GO | 5.75 | 8/1/13 | 215,000 | 217,614 |
New York City, GO | 5.13 | 12/1/24 | 10,000,000 | 11,547,500 |
New York City, GO | 5.13 | 12/1/25 | 10,000,000 | 11,462,600 |
New York City Municipal Water Finance | ||||
Authority, Water and Sewer System Revenue | 5.00 | 6/15/29 | 5,000,000 | 5,415,550 |
New York City Municipal Water Finance Authority, | ||||
Water and Sewer System Second General Resolution Revenue | 5.50 | 6/15/40 | 3,500,000 | 3,989,965 |
New York City Transitional Finance Authority, | ||||
Future Tax Secured Revenue | 5.38 | 11/15/21 | 1,050,000 | 1,151,031 |
New York City Transitional Finance Authority, | ||||
Future Tax Secured Revenue | 5.50/14.00 | 11/1/26 | 3,000,000 h | 3,164,010 |
New York Liberty Development Corporation, | ||||
Revenue (Goldman Sachs Headquarters Issue) | 5.00 | 10/1/15 | 1,000,000 | 1,099,560 |
New York Local Government Assistance Corporation, Revenue | 6.00 | 4/1/12 | 1,370,000 | 1,435,815 |
New York State Dormitory Authority, Revenue | ||||
(Consolidated City University System) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.75 | 7/1/18 | 200,000 | 237,702 |
New York State Dormitory Authority, Third General Resolution | ||||
Revenue (State University Educational Facilities Issue) | 5.25 | 5/15/12 | 3,800,000 | 4,082,340 |
New York State Mortgage Agency, Homeowner Mortgage Revenue | 5.00 | 10/1/18 | 1,500,000 | 1,516,815 |
New York State Power Authority, Revenue (Prerefunded) | 5.00 | 11/15/12 | 2,000,000 a | 2,205,080 |
New York State Thruway Authority, | ||||
Second General Highway and Bridge Trust Fund Bonds | 5.00 | 4/1/15 | 5,000,000 | 5,849,700 |
New York State Thruway Authority, | ||||
Second General Highway and Bridge Trust Fund Bonds | 5.00 | 4/1/16 | 5,000,000 | 5,909,750 |
New York State Thruway Authority, | ||||
Second General Highway and Bridge Trust Fund Bonds | 5.00 | 4/1/21 | 5,000,000 | 5,722,250 |
New York State Thruway Authority, Second General | ||||
Highway and Bridge Trust Fund Bonds (Insured; AMBAC) | 5.00 | 4/1/25 | 3,000,000 | 3,273,210 |
The Funds 33
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York (continued) | ||||
New York State Thruway Authority, Second | ||||
General Highway and Bridge Trust Fund Bonds | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 4/1/24 | 4,500,000 | 4,986,585 |
New York State Urban Development Corporation, | ||||
Correctional and Youth Facilities Service Contract Revenue | 5.00 | 1/1/11 | 5,000,000 | 5,074,550 |
Tobacco Settlement Financing Corporation of New York, | ||||
Asset-Backed Revenue Bonds (State Contingency Contract Secured) | 5.50 | 6/1/19 | 5,000,000 | 5,513,500 |
Tobacco Settlement Financing Corporation of New York, | ||||
Asset-Backed Revenue Bonds (State Contingency Contract | ||||
Secured) (Insured; National Public Finance Guarantee Corp.) | 5.50 | 6/1/18 | 2,000,000 | 2,139,160 |
North Carolina—3.9% | ||||
Charlotte, GO | 5.00 | 4/1/13 | 1,000,000 | 1,119,200 |
Concord, COP (Insured; National Public Finance Guarantee Corp.) | 5.50 | 6/1/11 | 1,000,000 | 1,035,450 |
Durham County, Public Improvement GO (Prerefunded) | 5.00 | 4/1/12 | 2,000,000 a | 2,149,860 |
Guilford County, Public Improvement GO (Prerefunded) | 5.10 | 10/1/10 | 1,500,000 a | 1,536,165 |
North Carolina Eastern Municipal Power | ||||
Agency, Power System Revenue | 5.38 | 1/1/16 | 1,500,000 | 1,633,125 |
North Carolina Eastern Municipal Power | ||||
Agency, Power System Revenue | 5.00 | 1/1/17 | 8,050,000 | 9,609,124 |
North Carolina Eastern Municipal Power | ||||
Agency, Power System Revenue | 5.25 | 1/1/20 | 5,000,000 | 5,689,550 |
North Carolina Eastern Municipal Power | ||||
Agency, Power System Revenue | 5.00 | 1/1/26 | 18,000,000 | 19,502,820 |
North Carolina Eastern Municipal Power Agency, Power System | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 6.00 | 1/1/25 | 4,075,000 | 5,053,408 |
North Carolina Municipal Power Agency | ||||
Number 1, Catawba Electric Revenue | 5.50 | 1/1/13 | 4,055,000 | 4,304,991 |
North Carolina Municipal Power Agency | ||||
Number 1, Catawba Electric Revenue | 5.00 | 1/1/24 | 5,500,000 | 6,104,175 |
Wake County, LOR | 5.00 | 1/1/24 | 5,955,000 | 7,021,600 |
Ohio—1.1% | ||||
Akron, Sanitary Sewer System Special Revenue (Insured; AMBAC) | 6.00 | 12/1/14 | 500,000 | 502,155 |
Cuyahoga County, Revenue (Cleveland Clinic | ||||
Health System Obligated Group) | 6.00 | 1/1/15 | 2,265,000 | 2,535,237 |
Cuyahoga County, Revenue (Cleveland Clinic | ||||
Health System Obligated Group) | 6.00 | 1/1/17 | 3,900,000 | 4,350,957 |
Cuyahoga County, Revenue (Cleveland Clinic | ||||
Health System Obligated Group) | 5.75 | 1/1/24 | 4,000,000 | 4,389,000 |
Montgomery County, Revenue (Catholic Health Initiatives) | 6.00 | 10/1/23 | 3,055,000 | 3,560,511 |
Ohio, Revitalization Project Revenue (Insured; AMBAC) | 5.00 | 10/1/11 | 1,300,000 | 1,360,801 |
Ohio Housing Finance Agency, MFHR (Uptown Towers | ||||
Apartments Project) (Collateralized; GNMA) | 4.75 | 10/20/15 | 930,000 | 981,317 |
Toledo-Lucas County Port Authority, | ||||
Port Facilities Revenue (Cargill, Inc. Project) | 4.50 | 12/1/15 | 900,000 | 979,686 |
34
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Oregon—.2% | ||||
Eagle Point School District Number 9, GO (Prerefunded) | 5.63 | 6/15/11 | 1,500,000 a | 1,564,170 |
Portland, Convention Center Urban Renewal and | ||||
Redevelopment Bonds (Insured; AMBAC) | 5.75 | 6/15/18 | 1,150,000 | 1,165,272 |
Pennsylvania—1.1% | ||||
Allegheny County Hospital Development Authority, | ||||
Revenue (University of Pittsburgh Medical Center) | 5.25 | 6/15/15 | 1,620,000 | 1,869,982 |
Pennsylvania Turnpike Commission, | ||||
Turnpike Subordinate Revenue | 5.00 | 6/1/18 | 5,000,000 | 5,864,000 |
Philadelphia School District, GO | 5.00 | 9/1/13 | 5,000,000 | 5,527,000 |
Philadelphia School District, GO (Insured; AMBAC) | 5.00 | 4/1/17 | 2,165,000 | 2,393,819 |
Swarthmore Borough Authority, Revenue (Swarthmore College) | 5.00 | 9/15/11 | 1,000,000 | 1,049,220 |
Swarthmore Borough Authority, Revenue (Swarthmore College) | 5.00 | 9/15/12 | 1,400,000 | 1,532,440 |
Rhode Island—.1% | ||||
Rhode Island Health and Educational Building | ||||
Corporation, Higher Educational Facility | ||||
Revenue (Providence College Issue) (Insured; XLCA) | 4.50 | 11/1/17 | 795,000 | 843,741 |
Rhode Island Health and Educational Building | ||||
Corporation, Higher Educational Facility | ||||
Revenue (Providence College Issue) (Insured; XLCA) | 5.00 | 11/1/22 | 250,000 | 262,323 |
South Carolina—2.9% | ||||
Greenville County School District, Installment | ||||
Purchase Revenue (Building Equity Sooner for Tomorrow) | 5.25 | 12/1/10 | 10,000,000 | 10,113,900 |
Greenville County School District, Installment | ||||
Purchase Revenue (Building Equity Sooner for Tomorrow) | 5.50 | 12/1/18 | 3,000,000 | 3,654,570 |
Greenville County School District, Installment | ||||
Purchase Revenue (Building Equity Sooner for Tomorrow) | 5.00 | 12/1/24 | 1,000,000 | 1,051,300 |
Greenville County School District, Installment Purchase | ||||
Revenue (Building Equity Sooner for Tomorrow) (Prerefunded) | 5.88 | 12/1/12 | 3,000,000 a | 3,393,960 |
Horry County School District, GO (Insured; South Carolina | ||||
State Department of Education) (Prerefunded) | 5.38 | 3/1/12 | 5,030,000 a | 5,413,185 |
Newberry Investing in Children’s Education, | ||||
Installment Purchase Revenue (School District | ||||
of Newberry County, South Carolina Project) | 5.25 | 12/1/20 | 1,000,000 | 1,064,940 |
Piedmont Municipal Power Agency, Electric Revenue | 5.00 | 1/1/18 | 15,080,000 | 17,410,916 |
South Carolina Jobs and Economic Development | ||||
Authority, Hospital Facilities Revenue | ||||
(Georgetown Memorial Hospital) (Insured; Radian) | 5.25 | 2/1/21 | 1,250,000 | 1,255,713 |
Spartanburg Sanitary Sewer District, Sewer System | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 4.13 | 3/1/26 | 950,000 | 1,002,279 |
Spartanburg Sanitary Sewer District, Sewer System | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 4.25 | 3/1/27 | 3,130,000 | 3,309,255 |
Texas—8.2% | ||||
Austin, Public Improvement Bonds (Insured; | ||||
National Public Finance Guarantee Corp.) (Prerefunded) | 5.00 | 9/1/12 | 3,000,000 a | 3,277,650 |
The Funds 35
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Texas (continued) | ||||
Cities of Dallas and Fort Worth, Dallas/Fort Worth | ||||
International Airport, Joint Revenue Improvement | ||||
Bonds (Insured; National Public Finance Guarantee Corp.) | 5.50 | 11/1/31 | 1,000,000 | 1,010,440 |
Dallas, GO | 5.00 | 2/15/27 | 2,500,000 | 2,807,800 |
Forney Independent School District, Unlimited Tax School | ||||
Building Bonds (Permanent School Fund Guarantee Program) | 5.75 | 8/15/33 | 1,000,000 | 1,156,930 |
Harris County, Toll Road Senior Lien Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 8/15/30 | 12,735,000 | 13,457,966 |
Harris County, Toll Road Senior Lien Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 8/15/25 | 4,000,000 | 4,451,720 |
Harris County, Unlimited Tax Road Bonds | 5.00 | 10/1/21 | 13,705,000 | 16,587,436 |
Harris County Health Facilities Development Corporation, | ||||
HR (Memorial Hermann Healthcare System) | 7.00 | 12/1/27 | 5,000,000 | 5,841,800 |
Houston, Airport System Senior Lien Revenue | 5.50 | 7/1/39 | 6,000,000 | 6,574,440 |
Houston, Combined Utility System | ||||
First Lien Revenue (Insured; AMBAC) | 5.00 | 5/15/11 | 11,000,000 | 11,317,130 |
Houston, Public Improvement GO | 5.00 | 3/1/18 | 5,000,000 | 6,060,800 |
Katy Independent School District, Unlimited Tax Refunding | ||||
Bonds (Permanent School Fund Guarantee Program) | 0.00 | 2/15/16 | 1,505,000 d | 1,353,672 |
Klein Independent School District, Unlimited Tax Schoolhouse | ||||
Bonds (Permanent School Fund Guarantee Program) (Prerefunded) | 5.00 | 8/1/12 | 1,575,000 a | 1,714,482 |
Lower Colorado River Authority, Junior Lien | ||||
Revenue (Seventh Supplemental Series) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/15 | 1,135,000 | 1,323,104 |
Plano Independent School District, Unlimited Tax School Building | ||||
Bonds (Permanent School Fund Guarantee Program) (Prerefunded) | 5.00 | 2/15/12 | 3,000,000 a | 3,205,530 |
Royse City Independent School District, Unlimited Tax School | ||||
Building Bonds (Permanent School Fund Guarantee Program) | 0.00 | 8/15/14 | 3,260,000 d | 3,109,681 |
San Antonio, Electric and Gas Systems Revenue | 5.00 | 2/1/17 | 5,000,000 | 5,993,250 |
San Antonio, Electric and Gas Systems Revenue | 5.00 | 2/1/25 | 10,000,000 | 11,374,600 |
Socorro Independent School District, Unlimited Tax School | ||||
Building Bonds (Permanent School Fund Guarantee Program) | 5.38 | 8/15/19 | 90,000 | 94,019 |
Socorro Independent School District, Unlimited Tax | ||||
School Building Bonds (Permanent School Fund | ||||
Guarantee Program) (Prerefunded) | 5.38 | 8/15/11 | 1,560,000 a | 1,636,955 |
Southwest Higher Educational Authority Inc., | ||||
Higher Educational Revenue (Southern Methodist | ||||
University Project) (Insured; AMBAC) (Prerefunded) | 5.50 | 10/1/12 | 1,000,000 a | 1,106,250 |
Texas A&M University System Board of Regents, | ||||
Financing System Revenue | 5.38 | 5/15/15 | 810,000 | 835,855 |
Texas Department of Housing and Community Affairs, SFMR | ||||
(Collateralized: FNMA and GNMA and Insured; | ||||
National Public Finance Guarantee Corp.) | 5.45 | 9/1/23 | 1,000,000 | 1,015,370 |
Texas Municipal Power Agency, Revenue (Insured; | ||||
National Public Finance Guarantee Corp.) | 4.40 | 9/1/11 | 405,000 | 405,000 |
36
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Texas (continued) | ||||
Texas Public Finance Authority, GO | 5.00 | 10/1/25 | 7,500,000 | 8,900,775 |
Texas Tech University System Board of Regents, | ||||
Finance System and Improvement Revenue (Insured; AMBAC) | 5.00 | 2/15/12 | 2,000,000 | 2,134,300 |
Texas Transportation Commission, | ||||
State Highway Fund First Tier Revenue | 5.00 | 4/1/20 | 15,000,000 | 17,528,700 |
Texas Water Development Board, State | ||||
Revolving Fund Subordinate Lien Revenue | 5.00 | 7/15/24 | 4,500,000 | 5,131,170 |
Vermont—.3% | ||||
Burlington, Electric Revenue (Insured; | ||||
National Public Finance Guarantee Corp.) | 6.25 | 7/1/11 | 2,000,000 | 2,087,140 |
Burlington, Electric Revenue (Insured; | ||||
National Public Finance Guarantee Corp.) | 6.25 | 7/1/12 | 2,500,000 | 2,734,425 |
Vermont Housing Finance Agency, SFHR | ||||
(Insured; Assured Guaranty Municipal Corp.) | 4.85 | 5/1/11 | 545,000 | 547,480 |
Virginia—.2% | ||||
Chesterfield County Industrial Development Authority, | ||||
PCR (Virginia Electric and Power Company Project) | 5.88 | 6/1/17 | 2,500,000 | 2,564,925 |
Newport News Industrial Development Authority, IDR | ||||
(Virginia Advanced Shipbuilding and Carrier Integration Center) | 5.50 | 9/1/10 | 1,000,000 | 1,000,000 |
Washington—1.8% | ||||
Energy Northwest, Electric Revenue (Project Number 1) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.50 | 7/1/13 | 1,000,000 | 1,092,670 |
FYI Properties, LR (State of Washington | ||||
Department of Information Services Project) | 5.25 | 6/1/29 | 5,625,000 | 6,169,950 |
FYI Properties, LR (State of Washington | ||||
Department of Information Services Project) | 5.50 | 6/1/39 | 5,000,000 | 5,414,400 |
Seattle, Municipal Light and Power Revenue | 5.50 | 12/1/10 | 1,000,000 | 1,013,200 |
Tumwater Office Properties, LR (Washington State Office Building) | 5.00 | 7/1/28 | 16,230,000 | 16,944,282 |
West Virginia—.5% | ||||
Monongalia County Building Commission, | ||||
HR (Monongalia General Hospital) | 5.25 | 7/1/20 | 3,630,000 | 3,820,902 |
West Virginia Economic Development Authority, PCR | ||||
(Appalachian Power Company—Amos Project) | 4.85 | 9/4/13 | 1,000,000 | 1,074,400 |
West Virginia Economic Development Authority, PCR | ||||
(Appalachian Power Company—Amos Project) | 4.85 | 9/4/13 | 2,600,000 | 2,793,440 |
Wisconsin—1.9% | ||||
Wisconsin, General Fund Annual Appropriation Bonds | 6.00 | 5/1/36 | 9,500,000 | 10,965,945 |
Wisconsin, GO | 5.00 | 5/1/20 | 5,800,000 | 6,888,022 |
Wisconsin, Transportation Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 7/1/18 | 11,825,000 | 13,492,325 |
U.S. Related—6.3% | ||||
Puerto Rico Commonwealth, Public Improvement GO | 5.00 | 7/1/12 | 2,000,000 | 2,081,860 |
Puerto Rico Commonwealth, Public Improvement GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 6.25 | 7/1/11 | 950,000 | 987,497 |
The Funds 37
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
U.S. Related (continued) | ||||
Puerto Rico Commonwealth, Public Improvement GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 6.25 | 7/1/13 | 1,380,000 | 1,536,892 |
Puerto Rico Electric Power Authority, Power Revenue | 5.00 | 7/1/17 | 5,000,000 | 5,664,650 |
Puerto Rico Electric Power Authority, Power Revenue | 5.25 | 7/1/18 | 5,000,000 | 5,768,650 |
Puerto Rico Electric Power Authority, Power Revenue | 5.25 | 7/1/19 | 2,000,000 | 2,310,720 |
Puerto Rico Electric Power Authority, Power Revenue | 5.25 | 7/1/23 | 5,000,000 | 5,607,450 |
Puerto Rico Electric Power Authority, Power Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.25 | 7/1/15 | 2,000,000 | 2,278,280 |
Puerto Rico Electric Power Authority, | ||||
Power Revenue (Insured; National | ||||
Public Finance Guarantee Corp.) | 5.00 | 7/1/17 | 3,940,000 | 4,328,208 |
Puerto Rico Government Development Bank, Senior Notes | 5.00 | 12/1/12 | 10,000,000 | 10,660,600 |
Puerto Rico Government Development Bank, Senior Notes | 5.00 | 12/1/13 | 4,000,000 | 4,354,840 |
Puerto Rico Housing Finance Authority, | ||||
Capital Fund Program Revenue (Puerto Rico | ||||
Public Housing Administration Projects) | 5.00 | 12/1/11 | 580,000 | 613,443 |
Puerto Rico Housing Finance Authority, | ||||
Capital Fund Program Revenue (Puerto Rico | ||||
Public Housing Administration Projects) | 5.00 | 12/1/11 | 420,000 | 440,790 |
Puerto Rico Public Buildings Authority, Government Facility Revenue | 5.50 | 7/1/14 | 1,000,000 | 1,107,860 |
Puerto Rico Public Buildings Authority, Government Facility Revenue | 5.50 | 7/1/15 | 995,000 | 1,105,913 |
Puerto Rico Public Buildings Authority, Government Facility Revenue | 5.50 | 7/1/15 | 5,000 | 6,042 |
Puerto Rico Public Buildings Authority, Government Facility Revenue | 5.50 | 7/1/16 | 5,000 | 6,149 |
Puerto Rico Public Buildings Authority, Government Facility Revenue | 5.50 | 7/1/16 | 1,995,000 | 2,228,315 |
Puerto Rico Public Buildings Authority, Government Facility Revenue | 5.75 | 7/1/17 | 1,940,000 | 2,200,620 |
Puerto Rico Public Buildings Authority, Government Facility Revenue | 5.75 | 7/1/17 | 5,000 | 6,301 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.75 | 8/1/32 | 11,000,000 c | 9,505,760 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.25 | 8/1/33 | 2,500,000 c | 1,754,375 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0.00 | 8/1/34 | 3,000,000 d | 721,170 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0.00 | 8/1/36 | 10,000,000 d | 2,101,800 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 6.00 | 8/1/39 | 10,000,000 | 11,070,700 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 6.00 | 8/1/42 | 17,500,000 | 19,220,950 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 6.50 | 8/1/44 | 2,500,000 | 2,844,125 |
Virgin Islands Public Finance Authority, Revenue | ||||
(Virgin Islands Matching Fund Loan Note) | 5.00 | 10/1/29 | 5,000,000 | 5,163,800 |
Total Long-Term Municipal Investments | ||||
(cost $1,477,629,938) | 1,585,245,990 |
38
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Short-Term Municipal | Coupon | Maturity | Principal | |
Investments—5.5% | Rate (%) | Date | Amount ($) | Value ($) |
California—.4% | ||||
California Infrastructure and Economic Development Bank, Revenue | ||||
(Jewish Community Center of San Francisco) (LOC; Bank of America) | 0.23 | 9/1/10 | 7,000,000 i | 7,000,000 |
Colorado—.4% | ||||
Colorado Educational and Cultural Facilities Authority, Revenue | ||||
(National Jewish Federation Bond Program) (LOC; Bank of America) | 0.26 | 9/1/10 | 600,000 i | 600,000 |
Colorado Educational and Cultural Facilities Authority, Revenue | ||||
(National Jewish Federation Bond Program) (LOC; Bank of America) | 0.26 | 9/1/10 | 1,000,000 i | 1,000,000 |
Colorado Educational and Cultural Facilities Authority, Revenue (National | ||||
Jewish Federation Bond Program) (LOC; Northern Trust Company) | 0.26 | 9/1/10 | 200,000 i | 200,000 |
Colorado Educational and Cultural Facilities Authority, Revenue | ||||
(National Jewish Federation Bond Program) (LOC; U.S. Bank NA) | 0.26 | 9/1/10 | 2,400,000 i | 2,400,000 |
Colorado Educational and Cultural Facilities Authority, Revenue | ||||
(National Jewish Federation Bond Program) (LOC; U.S. Bank NA) | 0.27 | 9/1/10 | 2,600,000 i | 2,600,000 |
District of Columbia—.1% | ||||
District of Columbia, Revenue, Refunding | ||||
(American University Issue) (LOC; Bank of America) | 0.25 | 9/1/10 | 1,500,000 i | 1,500,000 |
Florida—.7% | ||||
Jacksonville Economic Development Commission, HR (Shands | ||||
Jacksonville Medical Center, Inc. Project) (LOC; Wells Fargo Bank) | 0.25 | 9/1/10 | 2,505,000 i | 2,505,000 |
Orange County Health Facilities Authority, HR (Orlando | ||||
Regional Healthcare System) (Insured; Assured Guaranty | ||||
Municipal Corp. and Liquidity Facility; Dexia Credit Locale) | 0.35 | 9/1/10 | 8,900,000 i | 8,900,000 |
Illinois—.5% | ||||
Illinois Finance Authority, Revenue (Resurrection | ||||
Health Care) (LOC; JPMorgan Chase Bank) | 0.28 | 9/1/10 | 7,575,000 i | 7,575,000 |
Iowa—.6% | ||||
Hills, Health Facilities Revenue (Mercy Hospital | ||||
Project) (LOC; Allied Irish Banks) | 0.25 | 9/1/10 | 2,300,000 i | 2,300,000 |
Iowa Finance Authority, Health Facilities Revenue | ||||
(Great River Medical Center Project) (LOC; Allied Irish Banks) | 0.27 | 9/1/10 | 7,000,000 i | 7,000,000 |
Iowa Higher Education Loan Authority, Private College | ||||
Faciliity Revenue, Refunding (Des Moines | ||||
University Project) (LOC; Allied Irish Banks) | 2.75 | 9/1/10 | 1,330,000 i | 1,330,000 |
Kentucky—.1% | ||||
Lexington-Fayette Urban County Airport Board, General | ||||
Airport Revenue, Refunding (LOC; JPMorgan Chase Bank) | 0.25 | 9/1/10 | 1,440,000 i | 1,440,000 |
Massachusetts—1.2% | ||||
Massachusetts, Consolidated Loan | ||||
(Liquidity Facility; Dexia Credit Locale) | 0.31 | 9/1/10 | 5,600,000 i | 5,600,000 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Harvard University Issue) | 0.20 | 9/1/10 | 4,300,000 i | 4,300,000 |
Massachusetts Water Resources Authority, Multi-Modal | ||||
Subordinated General Revenue, Refunding | ||||
(LOC; Landesbank Baden-Wurttemberg) | 0.25 | 9/1/10 | 5,550,000 i | 5,550,000 |
The Funds 39
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Intermediate Municipal Bond Fund (continued) | ||||
Short-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts (continued) | ||||
Massachusetts Water Resources Authority, Multi-Modal | ||||
Subordinated General Revenue, Refunding | ||||
(LOC; Landesbank Hessen-Thuringen Girozentrale) | 0.28 | 9/1/10 | 5,190,000 i | 5,190,000 |
Montana—.4% | ||||
Forsyth, PCR, Refunding (PacifiCorp Project) | ||||
(LOC; Rabobank Nederland) | 0.28 | 9/1/10 | 1,700,000 i | 1,700,000 |
Montana Board of Regents of Higher Education, Facilities Improvement | ||||
Revenue (Montana State University) (LOC; Wells Fargo Bank) | 0.25 | 9/1/10 | 4,600,000 i | 4,600,000 |
New York—.1% | ||||
New York City, GO Notes (Liquidity Facility; Allied Irish Banks) | 0.60 | 9/1/10 | 1,000,000 i | 1,000,000 |
Ohio—.0% | ||||
Ohio Water Development Authority, PCR, Refunding (FirstEnergy | ||||
Nuclear Generation Corporation Project) (LOC; Wells Fargo Bank) | 0.25 | 9/1/10 | 500,000 i | 500,000 |
Oregon—.3% | ||||
Multnomah County Hospital Facilities Authority, Revenue, | ||||
Refunding (Holladay Park Plaza Project) (LOC; Allied Irish Banks) | 1.15 | 9/1/10 | 4,485,000 i | 4,485,000 |
Pennsylvania—.6% | ||||
Beaver County Industrial Development Authority, PCR | ||||
(FirstEnergy Nuclear Generation Corporation | ||||
Project) (LOC; Barclays Bank PLC) | 0.25 | 9/1/10 | 2,700,000 i | 2,700,000 |
Lancaster County Hospital Authority, Health | ||||
System Revenue (The Lancaster General | ||||
Hospital Refunding Project) (LOC; Bank of America) | 0.29 | 9/1/10 | 7,300,000 i | 7,300,000 |
Tennessee—.1% | ||||
Clarksville Public Building Authority, Pooled Financing Revenue | ||||
(Tennessee Municipal Bond Fund) (LOC; Bank of America) | 0.27 | 9/1/10 | 1,700,000 i | 1,700,000 |
Virginia—.0% | ||||
Peninsula Ports Authority of Virginia, Coal Terminal | ||||
Revenue, Refunding (Dominion Terminal | ||||
Associates Project) (LOC; Barclays Bank PLC) | 0.26 | 9/1/10 | 500,000 i | 500,000 |
Total Short-Term Municipal Investments | ||||
(cost $91,475,000) | 91,475,000 | |||
Total Investments (cost $1,569,104,938) | 100.3% | 1,676,720,990 | ||
Liabilities, Less Cash and Receivables | (.3%) | (4,666,091) | ||
Net Assets | 100.0% | 1,672,054,899 |
a These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in |
escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date. |
b Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in transactions exempt from registration, normally to qualified |
institutional buyers.At August 31, 2010, these securities had a market value of $8,232,995 or 0.5% of net assets. |
c Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. |
d Security issued with a zero coupon. Income is recognized through the accretion of discount. |
e Variable rate security—interest rate subject to periodic change. |
f Purchased on a delayed delivery basis. |
g Non-income producing—security in default. |
h Subject to interest rate change on November 1, 2011. |
i Variable rate demand note—rate shown is the interest rate in effect at August 31, 2010. Maturity date represents the next demand date, or the ultimate maturity date if earlier. |
40
Summary of Abbreviations | ||||||
ABAG | Association of Bay Area Governments | ACA | American Capital Access | |||
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company | |||
AMBAC | American Municipal Bond Assurance Corporation | ARRN | Adjustable Rate Receipt Notes | |||
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement | |||
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation | |||
CP | Commercial Paper | EDR | Economic Development Revenue | |||
EIR | Environmental Improvement Revenue | FGIC | Financial Guaranty Insurance Company | |||
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank | |||
FHLMC | Federal Home Loan Mortgage Corporation | FNMA | Federal National Mortgage Association | |||
GAN | Grant Anticipation Notes | GIC | Guaranteed Investment Contract | |||
GNMA | Government National Mortgage Association | GO | General Obligation | |||
HR | Hospital Revenue | IDB | Industrial Development Board | |||
IDC | Industrial Development Corporation | IDR | Industrial Development Revenue | |||
LOC | Letter of Credit | LOR | Limited Obligation Revenue | |||
LR | Lease Revenue | MFHR | Multi-Family Housing Revenue | |||
MFMR | Multi-Family Mortgage Revenue | PCR | Pollution Control Revenue | |||
PILOT | Payment in Lieu of Taxes | PUTTERS | Puttable Tax-Exempt Receipts | |||
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes | |||
RAW | Revenue Anticipation Warrants | RRR | Resources Recovery Revenue | |||
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement | |||
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue | |||
SONYMA | State of New York Mortgage Agency | SWDR | Solid Waste Disposal Revenue | |||
TAN | Tax Anticipation Notes | TAW | Tax Anticipation Warrants | |||
TRAN | Tax and Revenue Anticipation Notes | XLCA | XL Capital Assurance | |||
Summary of Combined Ratings (Unaudited) | ||||||
Fitch | or | Moody’s | or | Standard & Poor’s | Value (%)† | |
AAA | Aaa | AAA | 31.4 | |||
AA | Aa | AA | 35.4 | |||
A | A | A | 20.7 | |||
BBB | Baa | BBB | 6.6 | |||
BB | Ba | BB | .2 | |||
F1 | MIG1/P1 | SP1/A1 | 5.4 | |||
Not Ratedj | Not Ratedj | Not Ratedj | .3 | |||
100.0 |
† Based on total investments. |
j Securities which, while not rated by Fitch, Moody’s and Standard & Poor’s, have been determined by the Manager to be of |
comparable quality to those rated securities in which the fund may invest. |
See notes to financial statements.
The Funds 41
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon National Short-Term Municipal Bond Fund | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments—91.2% | Rate (%) | Date | Amount ($) | Value ($) |
Alabama—.4% | ||||
Jefferson County, Limited Obligation School Warrants | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.50 | 2/15/16 | 1,370,000 | 1,369,931 |
Jefferson County, Sewer Revenue Warrants | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.25 | 2/1/13 | 3,000,000 | 2,866,920 |
Alaska—.6% | ||||
Alaska Industrial Development and Export | ||||
Authority, Revolving Fund Revenue | 5.00 | 4/1/14 | 2,370,000 | 2,691,182 |
Fairbanks North Star Borough, GO | 5.00 | 11/1/14 | 2,210,000 | 2,589,214 |
North Slope Borough, GO | 5.00 | 6/30/12 | 1,000,000 | 1,079,140 |
Arizona—3.8% | ||||
Arizona Health Facilities Authority, Health | ||||
Facility Revenue (Catholic Healthcare West) | 5.00 | 7/2/12 | 4,000,000 | 4,208,880 |
Arizona School Facilities Board, COP (Lease-to-Own-Agreement) | 5.50 | 9/1/13 | 3,300,000 | 3,727,350 |
Arizona School Facilities Board, COP (Lease-to-Own-Agreement) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 9/1/12 | 1,275,000 | 1,377,586 |
Arizona School Facilities Board, COP (Lease-to-Own-Agreement) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 9/1/13 | 9,950,000 | 11,101,414 |
Arizona Transportation Board, Subordinated Highway Revenue | 5.00 | 7/1/14 | 2,165,000 | 2,511,573 |
Chandler Industrial Development Authority, | ||||
IDR (Intel Corporation Project) | 4.38 | 12/1/10 | 5,200,000 | 5,248,620 |
Salt River Project Agricultural Improvement and Power | ||||
District, Salt River Project Electric System Revenue | 5.00 | 1/1/11 | 3,150,000 | 3,200,180 |
Scottsdale, GO (Projects of 2000 and 2004) | 5.00 | 7/1/13 | 3,000,000 | 3,386,130 |
University of Arizona Board of Regents, System Revenue | 6.20 | 6/1/16 | 5,000,000 | 5,768,750 |
California—5.5% | ||||
California, Economic Recovery Bonds | 5.00 | 1/1/11 | 1,775,000 | 1,802,921 |
California, Economic Recovery Bonds | 2.50 | 7/1/12 | 2,000,000 | 2,075,320 |
California, GO (Various Purpose) | 5.00 | 9/1/12 | 3,220,000 | 3,479,146 |
California Department of Water Resources, Power Supply Revenue | 5.50 | 5/1/11 | 2,000,000 | 2,068,260 |
California Health Facilities Financing Authority, | ||||
Health Facility Revenue (Catholic Healthcare West) | 5.00 | 7/2/12 | 1,500,000 | 1,589,220 |
California Health Facilities Financing Authority, | ||||
Health Facility Revenue (Catholic Healthcare West) | 5.00 | 7/2/12 | 3,000,000 | 3,178,440 |
California Infrastructure and Economic Development | ||||
Bank, Revenue (The J. Paul Getty Trust) | 3.90 | 12/1/11 | 2,000,000 | 2,076,460 |
California Infrastructure and Economic Development | ||||
Bank, Revenue (The J. Paul Getty Trust) | 2.25 | 4/2/12 | 2,500,000 | 2,567,375 |
California Statewide Communities Development Authority, | ||||
MFHR (Clara Park / Cypress Sunrise / Wysong Plaza | ||||
Apartments) (Collateralized; GNMA) | 4.55 | 1/20/16 | 1,155,000 | 1,232,200 |
California Statewide Communities Development Authority, | ||||
PCR (Southern California Edison Company) (Insured; XLCA) | 4.10 | 4/1/13 | 1,000,000 | 1,073,010 |
California Statewide Communities Development | ||||
Authority, Revenue (Kaiser Permanente) | 5.00 | 4/1/13 | 5,000,000 | 5,466,400 |
42
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
California (continued) | ||||
California Statewide Communities Development Authority, | ||||
Revenue (Proposition 1A Receivables Program) | 5.00 | 6/15/13 | 13,000,000 | 14,319,760 |
Golden State Tobacco Securitization Corporation, | ||||
Tobacco Settlement Asset-Backed Bonds | 5.00 | 6/1/11 | 1,005,000 | 1,021,703 |
Los Angeles County Capital Asset Leasing | ||||
Corporation, LR (LAC-CAL Equipment Program) | 5.00 | 6/1/11 | 4,415,000 | 4,551,379 |
Los Angeles County Capital Asset Leasing | ||||
Corporation, LR (LAC-CAL Equipment Program) | 5.00 | 12/1/11 | 3,105,000 | 3,262,734 |
Mount San Antonio Community College District, GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 8/1/15 | 2,000,000 | 2,146,600 |
Newport Beach, Revenue | ||||
(Hoag Memorial Hospital Presbyterian) | 4.00 | 2/8/11 | 2,500,000 | 2,535,650 |
Sacramento County Sanitation Districts Financing | ||||
Authority, Revenue (Sacramento Regional County | ||||
Sanitation District) (Insured; AMBAC) (Prerefunded) | 5.00 | 12/1/14 | 1,000,000 a | 1,172,810 |
San Bernardino County, Transportation | ||||
Authority, Sales Tax Revenue Notes | 5.00 | 5/1/12 | 1,500,000 | 1,604,730 |
Tuolumne Wind Project Authority, | ||||
Revenue (Tuolumne Company Project) | 4.00 | 1/1/13 | 1,000,000 | 1,068,650 |
Colorado—1.7% | ||||
Black Hawk, Device Tax Revenue | 5.00 | 12/1/11 | 600,000 | 614,214 |
Colorado Department of Transportation, Transportation | ||||
RAN (Insured; National Public Finance Guarantee Corp.) | 5.50 | 6/15/11 | 6,300,000 | 6,559,308 |
Colorado Health Facilities Authority, | ||||
Revenue (Catholic Health Initiatives) | 5.00 | 11/12/13 | 5,000,000 | 5,573,950 |
Denver City and County, Airport System Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.50 | 11/15/15 | 5,000,000 | 5,242,250 |
Connecticut—2.6% | ||||
Connecticut, GO (Economic Recovery) | 5.00 | 1/1/13 | 10,000,000 | 11,066,000 |
Connecticut, GO (Economic Recovery) | 5.00 | 1/1/14 | 10,010,000 | 11,452,341 |
Connecticut, GO (Insured; Assured Guaranty Municipal Corp.) | 5.50 | 11/15/11 | 2,000,000 | 2,125,680 |
Connecticut Health and Educational Facilities Authority, | ||||
Revenue (Ascension Health Credit Group) | 3.50 | 2/1/12 | 1,445,000 | 1,496,904 |
Connecticut Health and Educational Facilities Authority, | ||||
Revenue (Quinnipiac University Issue) (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.00 | 7/1/12 | 1,190,000 | 1,278,500 |
Delaware—.2% | ||||
University of Delaware, Revenue | 2.00 | 6/1/11 | 1,675,000 | 1,688,869 |
Florida—6.1% | ||||
Citizens Property Insurance Corporation, | ||||
High-Risk Account Senior Secured Revenue | 5.00 | 6/1/13 | 10,000,000 | 10,555,700 |
Clearwater, Water and Sewer Revenue | 5.00 | 12/1/10 | 1,000,000 | 1,010,980 |
Clearwater, Water and Sewer Revenue | 5.00 | 12/1/11 | 1,000,000 | 1,053,760 |
Escambia County, SWDR (Gulf Power Company Project) | 2.00 | 4/3/12 | 2,500,000 | 2,521,425 |
The Funds 43
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Florida (continued) | ||||
Florida Department of Environmental Protection, Florida Forever | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.00 | 7/1/12 | 1,100,000 | 1,185,789 |
Florida Department of Environmental Protection, Florida Forever | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.00 | 7/1/13 | 6,100,000 | 6,808,942 |
Florida Department of Environmental Protection, Florida Forever | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.25 | 7/1/16 | 3,250,000 | 3,494,985 |
Florida Department of Management Services, Florida Facilities | ||||
Pool Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 9/1/13 | 1,825,000 | 2,038,196 |
Florida Hurricane Catastrophe Fund Finance Corporation, Revenue | 5.00 | 7/1/13 | 4,060,000 | 4,386,180 |
Florida Hurricane Catastrophe Fund Finance Corporation, Revenue | 5.00 | 7/1/15 | 10,000,000 | 11,054,400 |
Florida State Board of Education, Lottery Revenue (Insured; AMBAC) | 5.25 | 7/1/14 | 5,000,000 | 5,797,150 |
Florida State Board of Education, Public Education Capital Outlay | ||||
Bonds (Insured; National Public Finance Guarantee Corp.) | 5.25 | 6/1/13 | 3,000,000 | 3,375,930 |
Miami-Dade County, Double-Barreled Aviation GO | 5.00 | 7/1/14 | 1,000,000 | 1,145,170 |
Miami-Dade County Health Facilities Authority, HR | ||||
(Miami Children’s Hospital Project) (Insured; AMBAC) | 5.50 | 8/15/11 | 2,450,000 | 2,573,039 |
Miami-Dade County School Board, COP (Master Lease | ||||
Purchase Agreement) (Insured; National Public | ||||
Finance Guarantee Corp.) (Prerefunded) | 5.00 | 5/1/11 | 1,885,000 a | 1,961,908 |
Orlando-Orange County Expressway Authority, | ||||
Revenue (Insured; AMBAC) | 5.00 | 7/1/12 | 2,000,000 | 2,145,700 |
Palm Beach County School Board, COP (Master | ||||
Lease Purchase Agreement) (Insured; AMBAC) | 5.25 | 8/1/11 | 1,000,000 | 1,040,170 |
Palm Beach County School Board, COP (Master | ||||
Lease Purchase Agreement) (Insured; FGIC) | 5.00 | 8/1/11 | 2,200,000 | 2,280,520 |
Georgia—3.9% | ||||
Atlanta, Airport General Revenue (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.88 | 1/1/17 | 1,000,000 | 1,014,090 |
Burke County Development Authority, PCR | ||||
(Oglethorpe Power Corporation Vogtle Project) | 6.50 | 4/1/11 | 2,000,000 | 2,062,000 |
Forsyth County, GO | 5.00 | 3/1/12 | 2,000,000 | 2,142,400 |
Georgia, GO | 5.00 | 5/1/12 | 1,270,000 | 1,369,860 |
Georgia, GO | 4.50 | 12/1/12 | 3,125,000 | 3,417,812 |
Georgia, GO | 4.00 | 7/1/13 | 5,000,000 | 5,505,850 |
Georgia, GO (Prerefunded) | 5.00 | 8/1/12 | 5,000,000 a | 5,445,850 |
Gwinnett County School District, GO | 5.00 | 2/1/11 | 1,000,000 | 1,019,870 |
Gwinnett County School District, GO | 5.00 | 2/1/13 | 3,000,000 | 3,335,640 |
Henry County, GO | 5.00 | 7/1/11 | 2,500,000 | 2,598,900 |
Main Street Natural Gas, Inc., Gas Project Revenue | 5.00 | 3/15/11 | 5,000,000 | 5,091,800 |
Main Street Natural Gas, Inc., Gas Project Revenue | 5.00 | 3/15/12 | 5,790,000 | 6,095,017 |
Metropolitan Atlanta Rapid Transit Authority, | ||||
Sales Tax Revenue (Insured; National Public | ||||
Finance Guarantee Corp.) (Prerefunded) | 5.00 | 1/1/13 | 2,000,000 a | 2,212,200 |
44
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Hawaii—1.6% | ||||
Hawaii, GO (Insured; Assured Guaranty | ||||
Municipal Corp.) (Prerefunded) | 5.25 | 7/1/12 | 10,850,000 a | 11,830,080 |
Hawaii, GO (Insured; National Public Finance Guarantee Corp.) | 5.50 | 8/1/11 | 1,000,000 | 1,048,020 |
Hawaii, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 10/1/12 | 1,000,000 | 1,096,330 |
Honolulu City and County, GO (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.00 | 7/1/14 | 3,000,000 | 3,486,450 |
Idaho—.2% | ||||
University of Idaho Regents, General Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 4.38 | 4/1/11 | 2,500,000 | 2,549,900 |
Illinois—3.7% | ||||
Chicago, GO (Project and Refunding Series) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.25 | 1/1/12 | 2,035,000 | 2,169,636 |
Chicago, Senior Lien Water Revenue (Insured; AMBAC) (Prerefunded) | 5.50 | 11/1/11 | 1,750,000 a | 1,856,120 |
Chicago, Senior Lien Water Revenue (Insured; AMBAC) (Prerefunded) | 5.50 | 11/1/11 | 1,000,000 a | 1,060,640 |
Chicago Board of Education, Unlimited Tax GO (Dedicated | ||||
Revenues) (Insured; National Public Finance Guarantee Corp.) | 5.00 | 12/1/14 | 2,000,000 | 2,296,300 |
Chicago O’Hare International Airport, Second Lien | ||||
Passenger Facility Charge Revenue (Insured; AMBAC) | 5.50 | 1/1/14 | 1,000,000 | 1,023,410 |
Chicago Transit Authority, Capital Grant Receipts | ||||
Revenue (Federal Transit Administration | ||||
Section 5307 Formula Funds) (Insured; AMBAC) | 5.00 | 6/1/14 | 3,815,000 | 4,288,747 |
Cook County, GO Capital Equipment Bonds | 5.00 | 11/15/12 | 1,000,000 | 1,094,700 |
Illinois, GO | 5.00 | 1/1/12 | 1,000,000 | 1,044,520 |
Illinois, GO | 5.00 | 1/1/14 | 13,500,000 | 14,831,370 |
Illinois, GO (Fund for Infrastructure, Roads, Schools and | ||||
Transit) (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 10/1/11 | 2,000,000 | 2,087,020 |
Illinois, Sales Tax Revenue (Fund for Infrastructure, | ||||
Roads, Schools and Transit) (Prerefunded) | 5.50 | 6/15/11 | 1,100,000 a | 1,145,705 |
Illinois Finance Authority, Revenue (Northwestern Memorial Hospital) | 5.00 | 8/15/11 | 1,000,000 | 1,034,770 |
Metropolitan Pier and Exposition Authority, | ||||
Dedicated State Tax Revenue (Insured; AMBAC) | 5.38 | 6/1/14 | 2,500,000 | 2,508,700 |
Metropolitan Pier and Exposition Authority, Revenue | ||||
(McCormick Place Expansion Project) (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.75 | 12/15/14 | 3,360,000 | 3,406,637 |
Indiana—1.0% | ||||
Indiana Health and Educational Facility Financing | ||||
Authority, HR (Clarian Health Obligated Group) | 5.00 | 2/15/11 | 1,000,000 | 1,015,410 |
Indiana Transportation Finance Authority, | ||||
Highway Revenue (Insured; FGIC) (Prerefunded) | 5.25 | 6/1/14 | 1,000,000 a | 1,168,590 |
Purdue University Trustees, Purdue University | ||||
Student Facilities System Revenue | 5.25 | 7/1/12 | 2,000,000 | 2,178,740 |
Whiting, Environmental Facilities Revenue | ||||
(BP Products North America, Inc.) | 2.80 | 6/2/14 | 6,000,000 | 5,895,780 |
The Funds 45
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Iowa—.5% | ||||
Iowa Higher Education Loan Authority, Private College | ||||
Facility Revenue (Grinnell College Project) | 2.10 | 12/1/11 | 2,500,000 | 2,551,025 |
Iowa Higher Education Loan Authority, Private College | ||||
Facility Revenue (Grinnell College Project) | 4.00 | 12/1/13 | 1,000,000 | 1,111,830 |
Iowa Higher Education Loan Authority, Private College | ||||
Facility Revenue (Grinnell College Project) | 4.00 | 12/1/14 | 1,250,000 | 1,416,575 |
Kentucky—1.4% | ||||
Kentucky Economic Development Finance Authority, | ||||
Health System Revenue (Norton Healthcare, Inc.) | 6.25 | 10/1/12 | 665,000 | 673,984 |
Kentucky Economic Development Finance Authority, | ||||
Health System Revenue (Norton Healthcare, Inc.) (Prerefunded) | 6.25 | 10/1/10 | 335,000 a | 340,025 |
Kentucky Property and Buildings Commission, | ||||
Revenue (Project Number 67) (Prerefunded) | 5.13 | 9/1/10 | 1,500,000 a | 1,500,000 |
Kentucky Property and Buildings Commission, Revenue | ||||
(Project Number 69) (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 8/1/14 | 1,450,000 | 1,508,333 |
Kentucky Property and Buildings Commission, | ||||
Revenue (Project Number 72) (Insured; National | ||||
Public Finance Guarantee Corp.) (Prerefunded) | 5.38 | 10/1/11 | 1,550,000 a | 1,634,924 |
Kentucky Property and Buildings Commission, Revenue | ||||
(Project Number 82) (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 10/1/13 | 8,480,000 | 9,645,067 |
Louisiana—.2% | ||||
Louisiana Offshore Terminal Authority, | ||||
Deepwater Port Revenue (LOOP LLC Project) | 1.88 | 10/1/13 | 2,000,000 b | 2,003,860 |
Maryland—1.3% | ||||
Maryland, GO (State and Local Facilities | ||||
Loan—Capital Improvement Bonds) | 5.00 | 8/1/12 | 1,195,000 | 1,303,386 |
Maryland, GO (State and Local Facilities | ||||
Loan—Capital Improvement Bonds) | 5.00 | 7/15/13 | 5,000,000 | 5,657,700 |
Maryland Department of Transportation, | ||||
Consolidated Transportation Revenue | 5.00 | 3/1/13 | 4,950,000 | 5,519,151 |
Maryland Health and Higher Educational | ||||
Facilities Authority, Revenue (The Johns | ||||
Hopkins Health System Obligated Group Issue) | 5.00 | 11/15/11 | 1,000,000 | 1,046,130 |
Massachusetts—3.6% | ||||
Massachusetts, Consolidated Loan | 5.25 | 8/1/13 | 1,500,000 | 1,706,280 |
Massachusetts, Consolidated Loan | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.50 | 11/1/12 | 2,000,000 | 2,220,500 |
Massachusetts, Consolidated Loan (Insured; FGIC) (Prerefunded) | 5.25 | 11/1/12 | 2,000,000 a | 2,195,680 |
Massachusetts, Consolidated Loan (Insured; XLCA) (Prerefunded) | 5.25 | 11/1/12 | 15,000,000 a | 16,467,600 |
Massachusetts, Federal Highway, GAN | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.75 | 6/15/12 | 2,000,000 | 2,030,320 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Dana-Farber Cancer Institute Issue) | 4.00 | 12/1/11 | 1,725,000 | 1,790,464 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Northeastern University Issue) | 5.00 | 10/1/10 | 2,500,000 | 2,509,100 |
46
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts (continued) | ||||
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Northeastern University Issue) | 4.13 | 2/16/12 | 1,000,000 | 1,034,290 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Northeastern University Issue) | 4.10 | 4/19/12 | 1,000,000 | 1,044,510 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 5.00 | 7/1/13 | 1,350,000 | 1,496,853 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 5.00 | 7/1/14 | 1,600,000 | 1,818,720 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Simmons College Issue) | 6.13 | 10/1/14 | 1,000,000 | 1,156,270 |
Massachusetts Water Pollution Abatement | ||||
Trust (Pool Program) (Prerefunded) | 5.00 | 8/1/12 | 3,000,000 a | 3,249,420 |
Michigan—.4% | ||||
Michigan, State Trunk Line Fund Revenue (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.50 | 11/1/11 | 4,145,000 a | 4,385,493 |
Minnesota—3.3% | ||||
Minnesota, GO (Prerefunded) | 5.25 | 11/1/12 | 13,175,000 a | 14,554,423 |
Minnesota, GO (State Trunk Highway Bonds) | 5.00 | 8/1/12 | 1,720,000 | 1,874,628 |
Minnesota, GO (Various Purpose) | 4.00 | 8/1/13 | 11,500,000 | 12,690,480 |
Northern Municipal Power Agency, Electric System | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/12 | 2,000,000 | 2,113,640 |
Osseo Independent School District Number 279, GO School Building | ||||
Bonds (Minnesota School District Credit Enhancement Program) | 3.00 | 2/1/12 | 3,325,000 | 3,451,915 |
Mississippi—.3% | ||||
Mississippi, GO | 4.00 | 11/1/11 | 1,000,000 | 1,042,790 |
Mississippi Business Finance Corporation, | ||||
SWDR (Waste Management, Inc. Project) | 4.40 | 3/1/11 | 2,000,000 | 2,023,140 |
Missouri—.3% | ||||
Rockwood R-6 School District, GO | 5.00 | 2/1/12 | 1,035,000 | 1,104,666 |
Saint Louis, Airport Revenue (Lambert-Saint Louis International | ||||
Airport) (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 7/1/13 | 1,800,000 | 1,962,288 |
Montana—.3% | ||||
Montana Board of Regents of Higher Education, University of | ||||
Montana Facilities Improvement Revenue (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.75 | 5/15/24 | 3,000,000 | 3,070,560 |
Nebraska—.7% | ||||
Nebraska Public Power District, General Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/13 | 1,300,000 | 1,432,483 |
University of Nebraska Facilities Corporation, | ||||
Deferred Maintenance Bonds (Insured; AMBAC) | 5.00 | 7/15/13 | 5,125,000 | 5,781,820 |
Nevada—2.1% | ||||
Clark County, Airport System Junior Subordinate Lien Revenue | 5.00 | 7/1/12 | 10,000,000 | 10,640,700 |
Clark County, Limited Tax GO Public Safety Bonds | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/14 | 1,000,000 | 1,127,990 |
The Funds 47
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Nevada (continued) | ||||
Clark County School District, Limited Tax GO | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 6/15/11 | 1,525,000 | 1,581,532 |
Clark County School District, Limited Tax GO | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.50 | 6/15/13 | 5,625,000 | 6,346,969 |
Las Vegas Valley Water District, GO | ||||
(Additionally Secured by Pledged Revenues) | 5.00 | 2/1/13 | 1,000,000 | 1,099,310 |
Las Vegas Valley Water District, GO (Additionally Secured | ||||
by Southern Nevada Water Authority Pledged Revenues) | 5.00 | 6/1/14 | 450,000 | 512,937 |
Truckee Meadows Water Authority, Water Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) (Prerefunded) | 5.50 | 7/1/11 | 1,000,000 a | 1,043,890 |
New Hampshire—1.1% | ||||
Manchester, School Facilities Revenue (Insured; | ||||
National Public Finance Guarantee Corp.) (Prerefunded) | 5.50 | 6/1/13 | 4,465,000 a | 5,029,644 |
New Hampshire Health and Education Facilities | ||||
Authority, Revenue (Center for Life Management | ||||
Issue) (LOC; Ocean National Bank) | 4.05 | 7/1/11 | 2,425,000 | 2,462,297 |
New Hampshire Health and Education Facilities Authority, | ||||
Revenue (Dartmouth-Hitchcock Obligated Group Issue) | 3.50 | 8/1/12 | 2,535,000 | 2,635,462 |
Portsmouth, GO | 5.00 | 9/15/13 | 1,000,000 | 1,102,800 |
New Jersey—2.6% | ||||
New Jersey, COP (Equipment Lease Purchase Agreement) | 5.00 | 6/15/12 | 2,000,000 | 2,132,700 |
New Jersey, GO | 5.25 | 7/1/12 | 2,000,000 | 2,174,880 |
New Jersey, GO | 5.00 | 8/1/13 | 7,880,000 | 8,872,880 |
New Jersey Economic Development Authority, Cigarette Tax Revenue | 5.38 | 6/15/14 | 2,935,000 | 3,100,769 |
New Jersey Economic Development Authority, Cigarette Tax Revenue | 5.63 | 6/15/17 | 110,000 | 110,066 |
New Jersey Economic Development Authority, | ||||
Cigarette Tax Revenue (Insured; FGIC) | 5.00 | 6/15/13 | 5,000,000 | 5,200,100 |
New Jersey Economic Development Authority, School Facilities | ||||
Construction Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 3/1/12 | 2,000,000 | 2,142,520 |
New Jersey Economic Development Authority, School Facilities | ||||
Construction Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 9/1/12 | 2,750,000 | 3,004,513 |
Tobacco Settlement Financing Corporation of | ||||
New Jersey, Tobacco Settlement Asset-Backed Bonds | 5.50 | 6/1/11 | 1,000,000 | 1,039,040 |
New Mexico—1.3% | ||||
Albuquerque Bernalillo County Water Utility Authority, | ||||
Joint Water and Sewer System Revenue | 5.00 | 7/1/12 | 3,700,000 | 4,013,760 |
New Mexico Finance Authority, | ||||
State Transportation Senior Lien Revenue | 5.00 | 6/15/13 | 4,940,000 | 5,554,882 |
New Mexico Finance Authority, State Transportation | ||||
Subordinate Lien Revenue (Insured; AMBAC) | 5.00 | 6/15/11 | 2,750,000 | 2,851,695 |
New Mexico Finance Authority, State Transportation | ||||
Subordinate Lien Revenue (Insured; AMBAC) | 5.00 | 6/15/13 | 1,000,000 | 1,124,470 |
48
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York—10.7% | ||||
Buffalo Fiscal Stability Authority, Sales Tax and State Aid Secured | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.00 | 9/1/11 | 3,090,000 | 3,232,294 |
Metropolitan Transportation Authority, Transportation Revenue | 5.00 | 11/15/13 | 11,125,000 | 12,349,306 |
New York City, GO | 5.00 | 10/1/11 | 4,250,000 | 4,466,368 |
New York City, GO | 5.00 | 8/15/13 | 5,000,000 | 5,618,900 |
New York City, GO | 5.00 | 8/1/14 | 4,000,000 | 4,623,200 |
New York City Transitional Finance Authority, | ||||
Future Tax Secured Revenue | 5.50/14.00 | 11/1/26 | 3,345,000 c | 3,527,871 |
New York City Transitional Finance Authority, Future Tax Secured | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.50 | 11/1/14 | 3,910,000 | 4,314,177 |
New York City Transitional Finance Authority, | ||||
Future Tax Secured Subordinate Revenue | 4.00 | 11/1/11 | 5,000,000 | 5,212,350 |
New York City Trust for Cultural Resources, | ||||
Revenue (The Juilliard School) | 2.75 | 7/1/12 | 3,500,000 | 3,610,635 |
New York State, GO | 3.00 | 2/1/14 | 10,000,000 | 10,774,400 |
New York State Dormitory Authority, FHA-Insured | ||||
Mortgage Hospital Revenue (Albany Medical Center | ||||
Hospital) (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 2/15/11 | 1,075,000 | 1,098,037 |
New York State Dormitory Authority, LR (State | ||||
University Dormitory Facilities Issue) (Insured; XLCA) | 5.25 | 7/1/13 | 1,000,000 | 1,115,000 |
New York State Dormitory Authority, Revenue (New York | ||||
State Association for Retarded Children, Inc.) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 7/1/12 | 1,100,000 | 1,162,491 |
New York State Dormitory Authority, Revenue | ||||
(School Districts Revenue Financing Program) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.75 | 10/1/17 | 2,500,000 | 2,700,300 |
New York State Environmental Facilities Corporation, State | ||||
Clean Water and Drinking Water Revolving Funds Revenue | ||||
(New York City Municipal Water Finance Authority Project) | 5.38 | 6/15/16 | 5,000,000 | 5,404,400 |
New York State Municipal Bond Bank Agency, | ||||
Special School Purpose Revenue (Prior Year Claims) | 5.50 | 6/1/13 | 5,000,000 | 5,630,550 |
New York State Thruway Authority, General Revenue, BAN | 4.00 | 7/15/11 | 4,000,000 | 4,123,160 |
New York State Thruway Authority, Local Highway | ||||
and Bridge Service Contract Bonds | 5.50 | 4/1/15 | 2,675,000 | 2,869,232 |
New York State Urban Development | ||||
Corporation, Service Contract Revenue | 5.00 | 1/1/11 | 1,000,000 | 1,014,720 |
Tobacco Settlement Financing Corporation of New York, | ||||
Asset-Backed Revenue Bonds (State Contingency Contract Secured) | 5.00 | 6/1/12 | 1,055,000 | 1,134,041 |
Tobacco Settlement Financing Corporation of New York, | ||||
Asset-Backed Revenue Bonds (State Contingency Contract Secured) | 5.50 | 6/1/16 | 5,000,000 | 5,151,900 |
Triborough Bridge and Tunnel Authority, General Purpose Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) (Prerefunded) | 5.00 | 1/1/12 | 1,000,000 a | 1,063,390 |
The Funds 49
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York (continued) | ||||
Triborough Bridge and Tunnel Authority, | ||||
General Purpose Revenue (Prerefunded) | 5.13 | 1/1/12 | 2,055,000 a | 2,189,541 |
Triborough Bridge and Tunnel Authority, | ||||
General Revenue (MTA Bridges and Tunnels) | 4.00 | 11/15/12 | 12,325,000 | 13,246,787 |
Troy Industrial Development Authority, Civic Facility | ||||
Revenue (Rensselaer Polytechnic Institute Project) | 5.00 | 9/1/10 | 3,000,000 | 3,000,000 |
Troy Industrial Development Authority, Civic Facility | ||||
Revenue (Rensselaer Polytechnic Institute Project) | 4.05 | 9/1/11 | 3,500,000 | 3,602,445 |
Westchester County, GO | 3.00 | 6/1/13 | 1,350,000 | 1,448,469 |
North Carolina—2.8% | ||||
Brunswick County, GO | 5.00 | 5/1/13 | 2,445,000 | 2,741,970 |
Forsyth County, GO | 3.00 | 7/1/13 | 1,495,000 b | 1,604,613 |
Mecklenburg County, Public Improvement GO | 5.00 | 3/1/12 | 5,000,000 | 5,355,200 |
North Carolina, GO | 5.00 | 6/1/13 | 10,000,000 | 11,261,800 |
North Carolina, Public Improvement GO (Prerefunded) | 5.10 | 9/1/10 | 1,000,000 a | 1,020,000 |
North Carolina Eastern Municipal | ||||
Power Agency, Power System Revenue | 5.38 | 1/1/11 | 1,000,000 | 1,015,360 |
North Carolina Eastern Municipal | ||||
Power Agency, Power System Revenue | 5.50 | 1/1/12 | 3,900,000 | 4,126,980 |
North Carolina Eastern Municipal Power Agency, Power System | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/13 | 2,000,000 | 2,190,840 |
Ohio—1.3% | ||||
American Municipal Power—Ohio, Inc., | ||||
Electricity Purpose Revenue (Prepayment Issue) | 5.00 | 2/1/11 | 3,000,000 | 3,043,830 |
Cincinnati, Water System Revenue (Prerefunded) | 5.00 | 6/1/11 | 1,010,000 a | 1,046,350 |
Lorain County, Hospital Facilities Improvement | ||||
Revenue (Catholic Healthcare Partners) | 5.63 | 10/1/12 | 2,500,000 | 2,637,350 |
Ohio, GO Highway Captial Improvements Bonds | ||||
(Full Faith and Credit/Highway User Receipts) | 5.25 | 5/1/12 | 525,000 | 568,281 |
Ohio, Mental Health Capital Facilities Bonds | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 6/1/13 | 2,230,000 | 2,485,067 |
Ohio Water Development Authority, Fresh Water Revenue | 5.00 | 12/1/12 | 1,905,000 | 2,100,853 |
Ohio Water Development Authority, Water Development | ||||
Revenue (Fresh Water Improvement Series) | 5.00 | 6/1/13 | 2,060,000 | 2,314,369 |
Oklahoma—.6% | ||||
Oklahoma Building Bonds Commission, GO (Insured; | ||||
National Public Finance Guarantee Corp.) (Prerefunded) | 5.00 | 7/15/13 | 5,460,000 a | 6,224,400 |
Oregon—.1% | ||||
Oregon Department of Administrative Services, Oregon | ||||
Appropriation Bonds (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 9/1/11 | 1,140,000 | 1,193,842 |
Pennsylvania—6.2% | ||||
Allegheny County Airport Authority, | ||||
Airport Revenue (Pittsburgh International Airport) | 5.00 | 1/1/13 | 1,400,000 b | 1,478,974 |
50
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Pennsylvania (continued) | ||||
Allegheny County Hospital Development Authority, | ||||
Revenue (University of Pittsburgh Medical Center) | 5.00 | 6/15/13 | 1,000,000 | 1,103,030 |
Allegheny County Hospital Development Authority, | ||||
Revenue (University of Pittsburgh Medical Center) | 5.00 | 5/15/14 | 2,875,000 | 3,240,642 |
Berks County Municipal Authority, Revenue | ||||
(The Reading Hospital and Medical Center Project) | 5.00 | 11/1/13 | 3,035,000 | 3,376,529 |
Delaware County Industrial Development Authority, | ||||
PCR (PECO Energy Company Project) | 4.00 | 12/1/12 | 8,490,000 | 8,936,404 |
Delaware Valley Regional Finance Authority, | ||||
Local Government Revenue | 5.50 | 7/1/12 | 1,500,000 | 1,597,080 |
Montgomery County, GO | 5.00 | 9/15/11 | 2,155,000 | 2,261,479 |
Pennsylvania, GO | 5.00 | 7/15/11 | 5,000,000 | 5,206,850 |
Pennsylvania, GO | 5.50 | 2/1/13 | 1,100,000 | 1,234,640 |
Pennsylvania, GO | 5.00 | 2/15/13 | 10,000,000 | 11,120,300 |
Pennsylvania, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 10/1/10 | 1,055,000 | 1,059,199 |
Pennsylvania, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 1/1/13 | 1,950,000 | 2,158,358 |
Pennsylvania, GO (Insured; National Public | ||||
Finance Guarantee Corp.) (Prerefunded) | 4.00 | 2/1/14 | 5,000,000 a | 5,570,100 |
Pennsylvania Higher Educational Facilities | ||||
Authority, Revenue (The University of | ||||
Pennsylvania Health System) (Insured; AMBAC) | 5.00 | 8/15/12 | 6,325,000 | 6,833,340 |
Pennsylvania Intergovernmental Cooperation Authority, | ||||
Special Tax Revenue (City of Philadelphia Funding Program) | 5.00 | 6/15/12 | 1,500,000 | 1,622,220 |
Philadelphia School District, GO | 5.00 | 9/1/11 | 2,250,000 | 2,336,738 |
Philadelphia School District, GO | 5.00 | 9/1/12 | 5,000,000 | 5,371,250 |
Swarthmore Borough Authority, Revenue (Swarthmore College) | 5.00 | 9/15/13 | 1,500,000 | 1,698,165 |
South Carolina—.9% | ||||
Charleston Educational Excellence Financing Corporation, | ||||
Installment Purchase Revenue (Charleston County | ||||
School District, South Carolina Project) | 5.00 | 12/1/10 | 6,000,000 | 6,071,520 |
Horry County School District, GO (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.00 | 1/1/11 | 1,660,000 | 1,686,560 |
Piedmont Municipal Power Agency, Electric Revenue | 5.00 | 1/1/15 | 2,000,000 | 2,262,480 |
Tennessee—.4% | ||||
Memphis Electric System Subordinate Revenue | 5.00 | 12/1/14 | 4,000,000 | 4,683,360 |
Texas—6.6% | ||||
Austin, Water and Wastewater System Revenue | 4.00 | 11/15/13 | 1,500,000 | 1,660,665 |
Cities of Dallas and Fort Worth, Dallas/Fort Worth | ||||
International Airport, Joint Revenue | 4.00 | 11/1/11 | 1,775,000 | 1,845,361 |
Cities of Dallas and Fort Worth, Dallas/Fort Worth | ||||
International Airport, Joint Revenue | 4.00 | 11/1/12 | 2,220,000 | 2,370,294 |
Cypress-Fairbanks Independent School District, Unlimited Tax | ||||
Schoolhouse Bonds (Permanent School Fund Guarantee Program) | 5.00 | 2/15/13 | 1,550,000 | 1,722,034 |
The Funds 51
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Texas (continued) | ||||
Dallas Area Rapid Transit, Senior Lien | ||||
Sales Tax Revenue (Insured; AMBAC) | 5.38 | 12/1/13 | 2,135,000 | 2,255,627 |
Frisco Independent School District, Unlimited Tax School Building | ||||
Bonds (Permanent School Fund Guarantee Program) (Prerefunded) | 6.25 | 8/15/12 | 1,905,000 a | 2,123,084 |
Gulf Coast Waste Disposal Authority, Environmental Facilities | ||||
Revenue (BP Products North America, Inc. Project) | 2.30 | 9/3/13 | 4,000,000 | 3,889,440 |
Harris County, GO and Revenue (Prerefunded) | 5.00 | 8/15/12 | 15,000,000 a | 16,352,250 |
Harris County, Unlimited Tax Road Bonds | 5.00 | 10/1/12 | 1,000,000 | 1,095,670 |
Harris County, Unlimited Tax Toll Road and Subordinate Lien Revenue | 5.00 | 8/15/12 | 2,100,000 | 2,291,877 |
Harris County Cultural Education Facilities Finance | ||||
Corporation, Revenue (The Methodist Hospital System) | 5.25 | 12/1/12 | 1,800,000 | 1,959,012 |
Lower Colorado River Authority, Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.88 | 5/15/15 | 1,075,000 | 1,079,386 |
Montgomery County, Unlimited Tax Adjustable Rate Road | ||||
Bonds (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 9/1/10 | 1,050,000 | 1,050,000 |
North Texas Tollway Authority, First Tier System Revenue | 5.00 | 1/1/13 | 2,050,000 | 2,211,171 |
Northside Independent School District, Unlimited Tax School | ||||
Building Bonds (Permanent School Fund Guarantee Program) | 1.50 | 8/1/12 | 10,000,000 | 10,078,900 |
Pflugerville Independent School District, Unlimited | ||||
Tax Bonds (Permanent School Fund Guarantee Program) | 4.00 | 8/15/12 | 1,940,000 | 2,076,654 |
Plano, GO | 5.25 | 9/1/14 | 1,225,000 | 1,445,598 |
Texas, Water Financial Assistance | ||||
GO Bonds (Water Infrastructure Fund) | 4.00 | 8/1/11 | 500,000 | 517,145 |
Texas A&M University System Board of | ||||
Regents, Financing System Revenue | 5.00 | 5/15/13 | 1,375,000 | 1,542,296 |
Texas Municipal Gas Acquisition and Supply | ||||
Corporation I, Gas Supply Revenue | 5.00 | 12/15/13 | 720,000 | 774,886 |
University of Texas System Board of Regents, | ||||
Financing System Revenue | 5.25 | 8/15/12 | 4,485,000 | 4,915,964 |
University of Texas System Board of Regents, | ||||
Financing System Revenue | 5.00 | 8/15/13 | 6,485,000 | 7,321,695 |
Utah—1.1% | ||||
Salt Lake County, Sales Tax Revenue | 5.00 | 8/1/12 | 1,000,000 | 1,089,860 |
Timpanogos Special Service District, Sewer Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 6/1/14 | 1,775,000 | 2,034,239 |
Utah, GO | 4.00 | 7/1/13 | 8,000,000 | 8,816,560 |
Virginia—3.1% | ||||
Hampton, Public Improvement GO | 4.25 | 1/15/13 | 4,015,000 | 4,386,588 |
Louisa Industrial Development Authority, PCR | ||||
(Virginia Electric and Power Company Project) | 5.00 | 12/1/11 | 1,500,000 | 1,567,950 |
Newport News, GO General Improvement Bonds and GO Water Bonds | 5.00 | 1/15/13 | 1,000,000 | 1,109,500 |
52
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Virginia (continued) | ||||
Richmond, GO Public Improvement | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.25 | 7/15/16 | 6,040,000 | 6,791,859 |
Virginia Beach, GO Public Improvement | 5.00 | 7/15/11 | 1,000,000 | 1,041,580 |
Virginia College Building Authority, Educational Facilities | ||||
Revenue (21st Century College and Equipment Programs) | 5.00 | 2/1/11 | 2,500,000 | 2,549,975 |
Virginia College Building Authority, Educational Facilities | ||||
Revenue (21st Century College and Equipment Programs) | 5.00 | 2/1/13 | 2,000,000 | 2,222,320 |
Virginia College Building Authority, Educational Facilities | ||||
Revenue (21st Century College and Equipment Programs) | 5.00 | 2/1/14 | 2,610,000 | 2,997,402 |
Virginia College Building Authority, Educational | ||||
Facilities Revenue (21st Century College | ||||
and Equipment Programs) (Prerefunded) | 5.00 | 2/1/12 | 1,200,000 a | 1,278,816 |
Virginia College Building Authority, Educational Facilities | ||||
Revenue (Public Higher Education Financing Program) | 5.00 | 9/1/12 | 1,555,000 | 1,700,128 |
Virginia Commonwealth Transportation Board, Transportation | ||||
Revenue (U.S. Route 58 Corridor Development Program) | 5.25 | 5/15/12 | 5,000,000 | 5,422,500 |
Virginia Resources Authority, Infrastructure | ||||
Revenue (Virginia Pooled Financing Program) | 5.00 | 5/1/12 | 1,430,000 | 1,541,097 |
Washington—2.9% | ||||
Chelan County Public Utility District Number 1, | ||||
Chelan Hydro Consolidated System Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 7/1/12 | 4,000,000 | 4,265,320 |
Energy Northwest, Electric Revenue (Columbia Generating | ||||
Station) (Insured; Assured Guaranty Municipal Corp.) | 5.38 | 7/1/15 | 1,530,000 | 1,603,532 |
Energy Northwest, Electric Revenue | ||||
(Project Number 3) (Insured; AMBAC) | 6.00 | 7/1/16 | 5,000,000 | 5,466,900 |
King County, Limited Tax GO (Baseball Stadium) | 5.50 | 12/1/12 | 5,105,000 | 5,691,820 |
King County, Limited Tax GO (Payable From Sewer Revenues) | 5.00 | 1/1/14 | 1,000,000 | 1,145,160 |
Seattle, Municipal Light and Power Improvement Revenue | 5.00 | 4/1/12 | 1,145,000 | 1,229,089 |
Skagit County Burlington-Edison School District | ||||
Number 100, Unlimited Tax GO (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.63 | 6/1/11 | 2,380,000 a | 2,476,795 |
Snohomish County, Unlimited Tax GO | ||||
(Edmonds School District Number 15) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 12/1/12 | 1,500,000 | 1,652,460 |
Washington, GO (Various Purpose) (Insured; AMBAC) | 5.00 | 7/1/12 | 3,000,000 | 3,255,570 |
Washington, GO (Various Purpose) (Insured; AMBAC) | 5.00 | 1/1/14 | 3,810,000 | 4,358,983 |
Wisconsin—1.1% | ||||
Wisconsin, GO | 5.00 | 5/1/13 | 6,130,000 b | 6,871,056 |
Wisconsin, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 5/1/12 | 1,000,000 | 1,076,710 |
Wisconsin, Petroleum Inspection Fee Revenue | 5.00 | 7/1/13 | 3,500,000 | 3,919,860 |
The Funds 53
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
U.S. Related—2.7% | ||||
Puerto Rico Commonwealth, Public Improvement GO | 5.00 | 7/1/13 | 2,140,000 | 2,307,091 |
Puerto Rico Commonwealth, Public Improvement GO | 5.50 | 7/1/13 | 1,335,000 | 1,457,486 |
Puerto Rico Commonwealth, Public Improvement GO | 5.50 | 7/1/13 | 5,000,000 | 5,458,750 |
Puerto Rico Government Development Bank, GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 4.75 | 12/1/15 | 5,000,000 | 5,220,400 |
Puerto Rico Government Development Bank, Senior Notes | 5.00 | 12/1/13 | 1,800,000 | 1,959,678 |
Puerto Rico Highways and Transportation Authority, Highway | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 6.00 | 7/1/11 | 1,030,000 | 1,050,950 |
Puerto Rico Highways and Transportation Authority, | ||||
Transportation Revenue (Insured; FGIC) | 5.25 | 7/1/14 | 2,250,000 | 2,416,298 |
Puerto Rico Highways and Transportation Authority, | ||||
Transportation Revenue (Prerefunded) | 5.25 | 7/1/12 | 1,000,000 a | 1,086,280 |
Puerto Rico Public Buildings Authority, | ||||
Government Facilities Revenue | 5.50 | 7/1/11 | 2,000,000 | 2,065,720 |
University of Puerto Rico, University System Revenue | 5.00 | 6/1/13 | 2,315,000 | 2,476,286 |
University of Puerto Rico, University System Revenue | 5.00 | 6/1/14 | 2,930,000 | 3,184,851 |
Total Long-Term Municipal Investments | ||||
(cost $951,071,911) | 969,753,306 | |||
Short-Term Municipal Investments—9.5% | ||||
California—.0% | ||||
Irvine Reassessment District Number 85-7, Limited Obligation | ||||
Improvement Bonds (Insured; Assured Guaranty | ||||
Municipal Corp. and Liquidity Facility; Dexia Credit Locale) | 0.22 | 9/1/10 | 100,000 d | 100,000 |
Colorado—.3% | ||||
Colorado Educational and Cultural Facilities Authority, Revenue | ||||
(National Jewish Federation Bond Program) (LOC; U.S. Bank NA) | 0.26 | 9/1/10 | 500,000 d | 500,000 |
Colorado Educational and Cultural Facilities Authority, Revenue | ||||
(National Jewish Federation Bond Program) (LOC; U.S. Bank NA) | 0.26 | 9/1/10 | 1,100,000 d | 1,100,000 |
Colorado Health Facilities Authority, Revenue (The Visiting Nurse | ||||
Corporation of Colorado, Inc.) (LOC; Wells Fargo Bank) | 0.38 | 9/1/10 | 570,000 d | 570,000 |
Pitkin County, IDR, Refunding (Aspen Skiing | ||||
Company Project) (LOC; JPMorgan Chase Bank) | 0.26 | 9/1/10 | 700,000 d | 700,000 |
Florida—1.1% | ||||
Lakeland, Energy System Revenue, Refunding | 1.05 | 9/7/10 | 8,500,000 d | 8,525,585 |
Orange County Health Facilities Authority, HR (Orlando | ||||
Regional Healthcare System) (Insured; Assured Guaranty | ||||
Municipal Corp. and Liquidity Facility; Dexia Credit Locale) | 0.35 | 9/1/10 | 4,150,000 d | 4,150,000 |
54
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Short-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Illinois—.1% | ||||
Illinois Finance Authority, Revenue (Resurrection | ||||
Health Care) (LOC; JPMorgan Chase Bank) | 0.28 | 9/1/10 | 1,500,000 d | 1,500,000 |
Iowa—.4% | ||||
Hills, Health Facilities Revenue (Mercy Hospital | ||||
Project) (LOC; Allied Irish Banks) | 0.25 | 9/1/10 | 3,200,000 d | 3,200,000 |
Iowa Finance Authority, Health Facilities Revenue (Great River | ||||
Medical Center Project) (LOC; Allied Irish Banks) | 0.27 | 9/1/10 | 600,000 d | 600,000 |
Maryland—.2% | ||||
Maryland Economic Development Corporation, EDR, | ||||
Refunding (United States Pharmacopeial | ||||
Convention, Inc. Project) (LOC; Bank of America) | 0.25 | 9/1/10 | 1,800,000 d | 1,800,000 |
Massachusetts—1.0% | ||||
Massachusetts, Consolidated Loan | ||||
(Liquidity Facility; Dexia Credit Locale) | 0.31 | 9/1/10 | 4,115,000 d | 4,115,000 |
Massachusetts, Consolidated Loan (LOC; Bank of America) | 0.30 | 9/1/10 | 2,300,000 d | 2,300,000 |
Massachusetts, GO Notes, Refunding | 0.83 | 9/7/10 | 3,700,000 d | 3,711,544 |
Montana—.8% | ||||
Montana Board of Regents of Higher Education, | ||||
Facilities Improvement Revenue (Montana | ||||
State University) (LOC; Wells Fargo Bank) | 0.25 | 9/1/10 | 8,000,000 d | 8,000,000 |
Nevada—.3% | ||||
Las Vegas, GO Notes (LOC; Lloyds Bank PLC) | 0.25 | 9/1/10 | 3,150,000 d | 3,150,000 |
New Mexico—.3% | ||||
Farmington, PCR, Refunding (Arizona Public Service | ||||
Company Four Corners Project) (LOC; Barclays Bank PLC) | 0.25 | 9/1/10 | 3,400,000 d | 3,400,000 |
New York—.7% | ||||
New York City Municipal Water Finance Authority, Water and | ||||
Sewer System Revenue (Liquidity Facility; Dexia Credit Locale) | 0.26 | 9/1/10 | 7,200,000 d | 7,200,000 |
North Carolina—.5% | ||||
North Carolina Medical Care Commission, Health Care | ||||
Facilities Revenue (Duke University Health System) | 0.60 | 12/1/11 | 5,000,000 | 5,000,000 |
Oregon—.3% | ||||
Multnomah County Hospital Facilities Authority, | ||||
Revenue, Refunding (Holladay Park Plaza | ||||
Project) (LOC; Allied Irish Banks) | 1.15 | 9/1/10 | 2,800,000 d | 2,800,000 |
Pennsylvania—1.1% | ||||
Lancaster County Hospital Authority, Health Center Revenue | ||||
(Masonic Homes Project) (LOC; JPMorgan Chase Bank) | 0.25 | 9/1/10 | 1,000,000 d | 1,000,000 |
The Funds 55
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Short-Term Municipal Bond Fund (continued) | ||||
Short-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Pennsylvania (continued) | ||||
Lancaster County Hospital Authority, Health System | ||||
Revenue (The Lancaster General Hospital | ||||
Refunding Project) (LOC; Bank of America) | 0.29 | 9/1/10 | 840,000 d | 840,000 |
Pennsylvania Turnpike Commission, Turnpike Revenue | 0.92 | 9/7/10 | 10,000,000 d | 9,987,700 |
Tennessee—.6% | ||||
Clarksville Public Building Authority, Pooled Financing Revenue | ||||
(Tennessee Municipal Bond Fund) (LOC; Bank of America) | 0.27 | 9/1/10 | 2,600,000 d | 2,600,000 |
Metropolitan Nashville Airport Authority, | ||||
Airport Improvement Revenue, Refunding | 3.00 | 7/1/11 | 4,000,000 | 4,077,800 |
Texas—1.0% | ||||
Harris County Cultural Education Facilities Finance | ||||
Corporation, Special Facilities Revenue, Refunding | ||||
(Texas Medical Center) (LOC; JPMorgan Chase Bank) | 0.25 | 9/1/10 | 1,400,000 d | 1,400,000 |
Texas, TRAN | 2.00 | 8/31/11 | 10,000,000 | 10,168,700 |
West Virginia—.8% | ||||
West Virginia Hospital Finance Authority, HR, Refunding (West Virginia | ||||
United Health System Obligated Group) (LOC; Bank of America) | 0.25 | 9/1/10 | 8,000,000 d | 8,000,000 |
Total Short-Term Municipal Investments | ||||
(cost $100,468,645) | 100,496,329 | |||
Total Investments (cost $1,051,540,556) | 100.7% | 1,070,249,635 | ||
Liabilities, Less Cash and Receivables | (.7%) | (7,208,968) | ||
Net Assets | 100.0% | 1,063,040,667 |
a These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in |
escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date. |
b Purchased on a delayed delivery basis. |
c Subject to interest rate change on November 1, 2011. |
d Variable rate demand note—rate shown is the interest rate in effect at August 31, 2010. Maturity date represents the next demand date, or the ultimate maturity date if earlier. |
56
Summary of Abbreviations | ||||||
ABAG | Association of Bay Area Governments | ACA | American Capital Access | |||
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company | |||
AMBAC | American Municipal Bond Assurance Corporation | ARRN | Adjustable Rate Receipt Notes | |||
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement | |||
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation | |||
CP | Commercial Paper | EDR | Economic Development Revenue | |||
EIR | Environmental Improvement Revenue | FGIC | Financial Guaranty Insurance Company | |||
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank | |||
FHLMC | Federal Home Loan Mortgage Corporation | FNMA | Federal National Mortgage Association | |||
GAN | Grant Anticipation Notes | GIC | Guaranteed Investment Contract | |||
GNMA | Government National Mortgage Association | GO | General Obligation | |||
HR | Hospital Revenue | IDB | Industrial Development Board | |||
IDC | Industrial Development Corporation | IDR | Industrial Development Revenue | |||
LOC | Letter of Credit | LOR | Limited Obligation Revenue | |||
LR | Lease Revenue | MFHR | Multi-Family Housing Revenue | |||
MFMR | Multi-Family Mortgage Revenue | PCR | Pollution Control Revenue | |||
PILOT | Payment in Lieu of Taxes | PUTTERS | Puttable Tax-Exempt Receipts | |||
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes | |||
RAW | Revenue Anticipation Warrants | RRR | Resources Recovery Revenue | |||
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement | |||
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue | |||
SONYMA | State of New York Mortgage Agency | SWDR | Solid Waste Disposal Revenue | |||
TAN | Tax Anticipation Notes | TAW | Tax Anticipation Warrants | |||
TRAN | Tax and Revenue Anticipation Notes | XLCA | XL Capital Assurance | |||
Summary of Combined Ratings (Unaudited) | ||||||
Fitch | or | Moody’s | or | Standard & Poor’s | Value (%)† | |
AAA | Aaa | AAA | 34.2 | |||
AA | Aa | AA | 36.3 | |||
A | A | A | 21.0 | |||
BBB | Baa | BBB | 1.5 | |||
F1 | MIG1/P1 | SP1/A1 | 6.9 | |||
Not Ratede | Not Ratede | Not Ratede | .1 | |||
100.0 |
† Based on total investments. |
e Securities which, while not rated by Fitch, Moody’s and Standard & Poor’s, have been determined by the Manager to be of comparable quality to those rated securities in which the |
fund may invest. |
See notes to financial statements.
The Funds | 57 |
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments—98.7% | Rate (%) | Date | Amount ($) | Value ($) |
Alabama—1.1% | ||||
Jefferson County, Limited Obligation School Warrants | 5.25 | 1/1/15 | 2,500,000 | 2,349,975 |
Jefferson County, Limited Obligation School Warrants | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.50 | 1/1/21 | 3,500,000 | 3,506,160 |
Arizona—.2% | ||||
University Medical Center Corporation, HR | 5.25 | 7/1/15 | 1,160,000 | 1,253,357 |
California—7.7% | ||||
Agua Caliente Band, Cahuilla Indians Revenue | 6.00 | 7/1/18 | 1,500,000 a | 1,486,125 |
Alameda Corridor Transportation Authority, | ||||
Revenue (Insured; AMBAC) | 0/5.25 | 10/1/21 | 2,000,000 b | 1,777,780 |
California, GO | 5.50 | 6/1/20 | 110,000 | 110,405 |
California, GO | 5.50 | 11/1/33 | 6,300,000 | 6,522,138 |
California, GO (Various Purpose) | 6.50 | 4/1/33 | 1,000,000 | 1,174,120 |
California, GO (Various Purpose) | 6.00 | 4/1/38 | 5,000,000 | 5,583,600 |
California County Tobacco Securitization Agency, | ||||
Tobacco Settlement Asset-Backed Bonds | ||||
(Los Angeles County Securitization Corporation) | 0/5.25 | 6/1/21 | 1,250,000 b | 1,122,775 |
California Department of Water Resources, Power Supply Revenue | 5.00 | 5/1/22 | 5,000,000 | 5,987,550 |
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue | 5.75 | 1/15/40 | 2,000,000 | 1,969,180 |
Foothill/Eastern Transportation Corridor Agency, Toll Road | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.88 | 1/15/27 | 6,000,000 | 6,147,660 |
Foothill/Eastern Transportation Corridor Agency, Toll Road | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.88 | 1/15/29 | 2,000,000 | 2,035,260 |
Golden State Tobacco Securitization Corporation, Enhanced | ||||
Tobacco Settlement Asset-Backed Bonds (Insured; AMBAC) | 5.00 | 6/1/21 | 2,000,000 | 2,003,840 |
Golden State Tobacco Securitization Corporation, | ||||
Tobacco Settlement Asset-Backed Bonds | 4.50 | 6/1/27 | 3,865,000 | 3,500,260 |
Colorado—1.1% | ||||
Northwest Parkway Public Highway Authority, | ||||
Revenue (Insured; AMBAC) (Prerefunded) | 0/5.70 | 6/15/16 | 5,000,000 b,c | 5,803,650 |
Florida—1.6% | ||||
Miami-Dade County, Water and Sewer System Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 10/1/39 | 5,000,000 | 5,304,750 |
Seminole Tribe, Special Obligation Revenue | 5.50 | 10/1/24 | 3,000,000 a | 2,967,990 |
Georgia—.5% | ||||
Burke County Development Authority, PCR | ||||
(Oglethorpe Power Corporation Vogtle Project) | ||||
(Insured; National Public Finance Guarantee Corp.) | 4.75 | 4/1/11 | 2,500,000 | 2,556,075 |
Massachusetts—.1% | ||||
Massachusetts Housing Finance Agency, Housing Revenue | 5.13 | 12/1/34 | 350,000 | 350,742 |
Michigan—1.3% | ||||
Detroit City School District, School Buildings and | ||||
Site Improvement Bonds (Insured; FGIC) | 5.25 | 5/1/17 | 2,000,000 | 2,259,160 |
Michigan Tobacco Settlement Finance Authority, | ||||
Tobacco Settlement Asset-Backed Bonds | 5.13 | 6/1/22 | 5,170,000 | 4,560,509 |
58
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New Jersey—1.6% | ||||
Garden State Preservation Trust, Open Space and Farmland | ||||
Preservation Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.80 | 11/1/21 | 2,000,000 | 2,407,420 |
Garden State Preservation Trust, Open Space and Farmland | ||||
Preservation Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.80 | 11/1/23 | 2,000,000 | 2,407,420 |
Tobacco Settlement Financing Corporation of | ||||
New Jersey, Tobacco Settlement Asset-Backed Bonds | 4.50 | 6/1/23 | 3,425,000 | 3,231,077 |
North Carolina—.6% | ||||
North Carolina Eastern Municipal Power | ||||
Agency, Power System Revenue | 5.30 | 1/1/15 | 1,500,000 | 1,620,045 |
North Carolina Eastern Municipal Power | ||||
Agency, Power System Revenue | 5.13 | 1/1/23 | 1,500,000 | 1,554,765 |
Ohio—1.1% | ||||
Cuyahoga County, Revenue (Cleveland Clinic Health System) | 6.00 | 1/1/16 | 5,000,000 | 5,596,550 |
Pennsylvania—68.0% | ||||
Allegheny County Airport Authority, Airport Revenue (Pittsburgh | ||||
International Airport) (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 1/1/17 | 1,000,000 d | 1,077,730 |
Allegheny County Hospital Development Authority, | ||||
Revenue (University of Pittsburgh Medical Center) | 5.00 | 6/15/14 | 5,000,000 | 5,646,050 |
Allegheny County Port Authority, Special Transportation | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.38 | 3/1/11 | 2,500,000 | 2,561,175 |
Allegheny County Port Authority, Special Transportation | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.50 | 3/1/14 | 2,500,000 | 2,573,425 |
Allegheny County Port Authority, Special Transportation | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.50 | 3/1/16 | 1,360,000 | 1,399,250 |
Allegheny County Sanitary Authority, Sewer Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 12/1/18 | 2,560,000 | 2,777,344 |
Allegheny County Sanitary Authority, Sewer Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 12/1/22 | 6,860,000 | 7,268,170 |
Allentown School District, GO | 5.00 | 2/15/22 | 5,875,000 | 6,593,336 |
Beaver County Industrial Development Authority, PCR | ||||
(Duquesne Light Company Project) (Insured; AMBAC) | 4.50 | 11/1/29 | 6,500,000 | 6,348,615 |
Berks County Municipal Authority, Revenue | ||||
(The Reading Hospital and Medical Center Project) | 5.00 | 11/1/19 | 2,000,000 | 2,270,360 |
Central Bucks School District, GO | 5.00 | 5/15/23 | 5,000,000 | 5,730,600 |
Central Dauphin School District, GO (Insured; National | ||||
Public Finance Guarantee Corp.) (Prerefunded) | 6.75 | 2/1/16 | 5,000,000 c | 6,423,150 |
Central Dauphin School District, GO (Insured; National | ||||
Public Finance Guarantee Corp.) (Prerefunded) | 7.00 | 2/1/16 | 1,630,000 c | 2,124,151 |
Central Dauphin School District, GO (Insured; National | ||||
Public Finance Guarantee Corp.) (Prerefunded) | 7.50 | 2/1/16 | 3,100,000 c | 4,097,890 |
Central York School District, GO (Insured; FGIC) (Prerefunded) | 5.50 | 6/1/12 | 80,000 c | 87,258 |
Chester County, GO | 5.00 | 8/15/18 | 4,545,000 | 5,216,206 |
Chester County, GO | 5.00 | 7/15/25 | 3,060,000 | 3,573,743 |
Chester County, GO (Prerefunded) | 5.00 | 7/15/19 | 1,940,000 c | 2,357,469 |
The Funds 59
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Pennsylvania (continued) | ||||
Coatesville Area School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) | 5.00 | 8/1/21 | 5,000,000 | 5,716,950 |
Coatesville Area School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.25 | 8/15/14 | 1,485,000 c | 1,747,696 |
Coatesville Area School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.25 | 8/15/14 | 6,515,000 c | 7,667,503 |
Commonwealth Financing Authority of Pennsylvania, Revenue | 5.00 | 6/1/24 | 5,000,000 | 5,627,950 |
Delaware County Authority, College Revenue (Haverford College) | 5.88 | 11/15/21 | 1,500,000 | 1,530,930 |
Delaware County Authority, College Revenue (Haverford College) | 5.75 | 11/15/25 | 3,000,000 | 3,060,840 |
Delaware County Authority, University Revenue | ||||
(Villanova University) (Insured; AMBAC) | 5.00 | 8/1/20 | 2,095,000 | 2,342,482 |
Delaware River Joint Toll Bridge Commission, Bridge | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.25 | 7/1/17 | 1,485,000 | 1,731,970 |
Delaware River Port Authority, Revenue | 5.00 | 1/1/27 | 1,295,000 | 1,416,082 |
Delaware River Port Authority, Revenue | 5.00 | 1/1/28 | 2,000,000 | 2,170,620 |
Downingtown Area School District, GO | 5.00 | 11/1/18 | 2,010,000 | 2,466,612 |
East Stroudsburg Area School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 7.50 | 9/1/16 | 2,500,000 c | 3,373,675 |
Easton Area School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) | 7.50 | 4/1/18 | 1,000,000 | 1,275,680 |
Easton Area School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) | 7.50 | 4/1/21 | 3,000,000 | 3,746,550 |
Easton Area School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) | 7.50 | 4/1/22 | 3,000,000 | 3,727,530 |
Easton Area School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) | 5.50 | 4/1/23 | 2,260,000 | 2,654,008 |
Erie County, GO (Insured; National Public Finance Guarantee Corp.) | 5.50 | 9/1/22 | 1,640,000 | 2,051,558 |
Kennett Consolidated School District, | ||||
GO (Insured; FGIC) (Prerefunded) | 5.50 | 2/15/12 | 1,310,000 c | 1,406,861 |
Lancaster County Solid Waste Management Authority, | ||||
Resource Recovery System Revenue (Insured; AMBAC) | 5.25 | 12/15/10 | 2,000,000 | 2,024,620 |
Lancaster Higher Education Authority, College | ||||
Revenue (Franklin and Marshall College Project) | 5.25 | 4/15/16 | 1,815,000 | 1,986,245 |
Lehigh County General Purpose Authority, | ||||
Revenue (Good Shepherd Group) | 5.25 | 11/1/14 | 3,255,000 | 3,468,203 |
Lehigh County Industrial Development Authority, PCR | ||||
(People Electric Utilities Corporation Project) | ||||
(Insured; National Public Finance Guarantee Corp.) | 4.75 | 2/15/27 | 2,000,000 | 2,045,460 |
Lower Merion School District, GO | 5.00 | 9/1/22 | 2,980,000 | 3,464,429 |
Lower Merion School District, GO | 5.00 | 5/15/29 | 5,000,000 | 5,239,850 |
Montgomery County, GO | 5.00 | 12/15/17 | 2,025,000 | 2,493,889 |
Montgomery County Industrial Development Authority, FHA | ||||
Insured Mortgage Revenue (New Regional Medical Center Project) | 5.50 | 8/1/25 | 1,000,000 | 1,110,520 |
60
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Pennsylvania (continued) | ||||
Muhlenberg School District, GO (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.38 | 4/1/15 | 1,000,000 | 1,066,880 |
Owen J. Roberts School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.50 | 8/15/12 | 1,440,000 c | 1,584,734 |
Parkland School District, GO (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.38 | 9/1/14 | 3,110,000 | 3,658,946 |
Parkland School District, GO (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.38 | 9/1/16 | 1,490,000 | 1,806,863 |
Pennsylvania, GO | 5.25 | 2/1/11 | 5,000,000 | 5,104,500 |
Pennsylvania, GO | 5.00 | 7/1/20 | 10,000,000 | 12,348,900 |
Pennsylvania Economic Development Financing | ||||
Authority, SWDR (Waste Management, Inc. Project) | 7.00 | 11/1/10 | 1,000,000 | 1,005,760 |
Pennsylvania Economic Development Financing | ||||
Authority, SWDR (Waste Management, Inc. Project) | 4.70 | 11/1/14 | 5,000,000 | 5,299,000 |
Pennsylvania Higher Educational Facilities Authority, Health | ||||
Services Revenue (Allegheny Delaware Valley Obligated | ||||
Group Project) (Insured; National Public Finance Guarantee Corp.) | 5.60 | 11/15/10 | 2,000,000 | 2,000,780 |
Pennsylvania Higher Educational Facilities Authority, | ||||
Revenue (Bryn Mawr College) (Insured; AMBAC) | 5.25 | 12/1/12 | 3,000,000 | 3,300,960 |
Pennsylvania Higher Educational Facilities Authority, | ||||
Revenue (La Salle University) | 5.50 | 5/1/34 | 2,250,000 | 2,271,442 |
Pennsylvania Higher Educational Facilities Authority, | ||||
Revenue (The Trustees of the University of Pennsylvania) | 5.00 | 9/1/19 | 5,090,000 | 6,265,688 |
Pennsylvania Higher Educational Facilities Authority, | ||||
Revenue (Thomas Jefferson University) (Insured; AMBAC) | 5.25 | 9/1/17 | 1,700,000 | 2,014,449 |
Pennsylvania Higher Educational Facilities Authority, | ||||
Revenue (Thomas Jefferson University) (Insured; AMBAC) | 5.25 | 9/1/18 | 1,485,000 | 1,772,318 |
Pennsylvania Higher Educational Facilities Authority, Revenue | ||||
(University of Scranton) (Insured; AMBAC) (Prerefunded) | 5.75 | 5/1/11 | 1,690,000 c | 1,751,803 |
Pennsylvania Higher Educational Facilities | ||||
Authority, Revenue (UPMC Health System) | 5.13 | 1/15/11 | 1,550,000 | 1,574,893 |
Pennsylvania Industrial Development Authority, EDR (Insured; AMBAC) | 5.50 | 7/1/12 | 5,335,000 | 5,793,437 |
Pennsylvania Intergovernmental Cooperation Authority, | ||||
Special Tax Revenue (City of Philadelphia Funding Program) | 5.00 | 6/15/19 | 2,000,000 | 2,425,820 |
Pennsylvania Intergovernmental Cooperation Authority, | ||||
Special Tax Revenue (City of Philadelphia Funding Program) | 5.00 | 6/15/20 | 3,000,000 | 3,641,160 |
Pennsylvania Intergovernmental Cooperation Authority, | ||||
Special Tax Revenue (City of Philadelphia Funding Program) | 5.00 | 6/15/22 | 3,395,000 | 4,032,411 |
Pennsylvania Turnpike Commission, Oil Franchise | ||||
Tax Subordinated Revenue (Insured; National | ||||
Public Finance Guarantee Corp.) (Prerefunded) | 5.25 | 12/1/13 | 2,500,000 c | 2,876,275 |
Pennsylvania Turnpike Commission, Registration Fee | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 7/15/24 | 5,000,000 | 5,933,650 |
The Funds | 61 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Pennsylvania (continued) | ||||
Pennsylvania Turnpike Commission, Registration Fee | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 7/15/25 | 5,000,000 | 5,933,850 |
Pennsylvania Turnpike Commission, Turnpike Revenue | 5.50 | 6/1/15 | 1,500,000 | 1,565,985 |
Pennsylvania Turnpike Commission, | ||||
Turnpike Revenue (Insured; AMBAC) | 5.00 | 12/1/29 | 5,000,000 | 5,199,300 |
Pennsylvania Turnpike Commission, Turnpike Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.50 | 12/1/11 | 2,510,000 | 2,661,504 |
Pennsylvania Turnpike Commission, Turnpike Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.50 | 12/1/12 | 2,000,000 | 2,216,520 |
Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue | 5.00 | 6/1/26 | 5,000,000 | 5,416,700 |
Pennsylvania Turnpike Commission, Turnpike Subordinate | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 6.00 | 6/1/28 | 1,500,000 | 1,714,230 |
Philadelphia, GO (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 8/1/17 | 12,500,000 | 14,752,500 |
Philadelphia, Water and Wastewater Revenue (Insured; AMBAC) | 5.25 | 12/15/12 | 10,000,000 | 10,924,100 |
Philadelphia, Water and Wastewater Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.25 | 7/1/18 | 5,000,000 | 5,668,450 |
Philadelphia Authority for Industrial Development, | ||||
Revenue (Cultural and Commercial Corridors Program) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 12/1/20 | 3,380,000 | 3,559,917 |
Philadelphia Authority for Industrial Development, Revenue | ||||
(Cultural and Commercial Corridors Program) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 12/1/22 | 3,150,000 | 3,262,518 |
Philadelphia School District, GO (Insured; AMBAC) | 5.00 | 4/1/17 | 5,000,000 | 5,528,450 |
Philadelphia School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.50 | 2/1/12 | 1,770,000 c | 1,900,591 |
Philadelphia School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.50 | 2/1/12 | 1,310,000 c | 1,406,652 |
Pittsburgh School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) | 5.50 | 9/1/16 | 4,000,000 | 4,858,720 |
Pittsburgh School District, GO (Insured; | ||||
Assured Guaranty Municipal Corp.) | 5.50 | 9/1/18 | 1,000,000 | 1,240,450 |
Pocono Mountain School District, GO | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 9/1/22 | 5,270,000 | 5,902,136 |
Saint Mary Hospital Authority, Health System | ||||
Revenue (Catholic Health East Issue) | 5.00 | 11/15/21 | 1,000,000 | 1,040,650 |
Scranton-Lackawanna Health and Welfare Authority, | ||||
Revenue (Community Medical Center Project) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.50 | 7/1/11 | 3,195,000 | 3,204,074 |
State Public School Building Authority, School LR | ||||
(Richland School District Project) (Insured; FGIC) (Prerefunded) | 5.00 | 11/15/14 | 1,265,000 c | 1,483,592 |
State Public School Building Authority, School LR | ||||
(The School District of Philadelphia Project) (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.00 | 6/1/13 | 5,000,000 c | 5,612,400 |
62
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Pennsylvania (continued) | ||||
State Public School Building Authority, School Revenue (Tuscarora | ||||
School District Project) (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 4/1/17 | 840,000 | 926,680 |
State Public School Building Authority, School Revenue | ||||
(Tuscarora School District Project) (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 5.25 | 4/1/13 | 195,000 c | 218,074 |
Susquehanna Area Regional Airport | ||||
Authority, Airport System Revenue | 5.38 | 1/1/18 | 6,000,000 | 5,620,920 |
Susquehanna Area Regional Airport Authority, | ||||
Airport System Revenue (Insured; AMBAC) | 5.50 | 1/1/20 | 4,370,000 | 4,482,528 |
Susquehanna Area Regional Airport Authority, | ||||
Airport System Revenue (Insured; AMBAC) | 5.00 | 1/1/33 | 2,290,000 | 2,071,351 |
Swarthmore Borough Authority, College Revenue | 5.25 | 9/15/17 | 1,000,000 | 1,088,660 |
Twin Valley School District, GO (Insured; Assured | ||||
Guaranty Municipal Corp.) (Prerefunded) | 5.25 | 10/1/15 | 1,000,000 c | 1,203,240 |
University of Pittsburgh of the Commonwealth | ||||
System of Higher Education, University Capital Project Bonds | 5.50 | 9/15/21 | 2,500,000 | 3,093,825 |
Upper Darby School District, GO (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.00 | 5/1/18 | 2,870,000 | 3,232,625 |
Upper Merion Area School District, GO (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.00 | 2/15/19 | 1,165,000 | 1,319,584 |
West Mifflin Area School District, GO | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.50 | 4/1/24 | 1,060,000 | 1,239,808 |
Wilson School District, GO (Insured; Assured | ||||
Guaranty Municipal Corp.) (Prerefunded) | 5.38 | 5/15/12 | 1,785,000 c | 1,939,153 |
Wilson School District, GO (Insured; Assured | ||||
Guaranty Municipal Corp.) (Prerefunded) | 5.38 | 5/15/12�� | 1,500,000 c | 1,629,540 |
York County, GO (Insured; AMBAC) | 5.00 | 6/1/17 | 1,100,000 | 1,215,786 |
York County Solid Waste and Refuse Authority, Solid Waste | ||||
System Revenue (Insured; National Public Finance Guarantee Corp.) | 5.50 | 12/1/14 | 1,000,000 | 1,175,040 |
South Carolina—.5% | ||||
Greenville County School District, Installment Purchase | ||||
Revenue (Building Equity Sooner for Tomorrow) | 5.50 | 12/1/18 | 2,000,000 | 2,436,380 |
Texas—.4% | ||||
Cities of Dallas and Fort Worth, Dallas/Fort Worth | ||||
International Airport, Joint Revenue Improvement | ||||
Bonds (Insured; National Public Finance Guarantee Corp.) | 5.50 | 11/1/31 | 2,000,000 | 2,020,880 |
U.S. Related—12.9% | ||||
Government of Guam, LOR (Section 30) | 5.63 | 12/1/29 | 1,000,000 | 1,063,260 |
Puerto Rico Commonwealth, Public Improvement GO | 5.25 | 7/1/23 | 4,090,000 | 4,286,197 |
Puerto Rico Commonwealth, Public Improvement GO (Insured; FGIC) | 5.50 | 7/1/18 | 9,545,000 | 10,790,241 |
Puerto Rico Commonwealth, Public Improvement GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.50 | 7/1/14 | 7,500,000 | 8,323,425 |
The Funds 63
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
U.S. Related (continued) | ||||
Puerto Rico Electric Power Authority, Power Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.25 | 7/1/14 | 7,875,000 | 8,889,300 |
Puerto Rico Electric Power Authority, Power Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.50 | 7/1/17 | 6,000,000 | 6,998,940 |
Puerto Rico Electric Power Authority, Power Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.50 | 7/1/19 | 2,290,000 | 2,694,322 |
Puerto Rico Government Development Bank, Senior Notes | 5.00 | 12/1/12 | 3,000,000 | 3,198,180 |
Puerto Rico Government Development Bank, Senior Notes | 5.00 | 12/1/13 | 3,000,000 | 3,266,130 |
Puerto Rico Highways and Transportation Authority, Highway | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.50 | 7/1/13 | 1,500,000 | 1,585,830 |
Puerto Rico Highways and Transportation Authority, Highway | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.50 | 7/1/13 | 4,000,000 | 4,228,880 |
Puerto Rico Infrastructure Financing Authority, Special Tax Revenue | 5.00 | 7/1/21 | 5,000,000 | 5,277,550 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.75 | 8/1/32 | 1,000,000 b | 864,160 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.25 | 8/1/33 | 500,000 b | 350,875 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0.00 | 8/1/36 | 3,750,000 e | 788,175 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 5.38 | 8/1/39 | 1,000,000 | 1,056,300 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 6.00 | 8/1/42 | 1,500,000 | 1,647,510 |
Total Long-Term Municipal Investments | ||||
(cost $471,437,357) | 503,632,280 | |||
Short-Term Municipal Investments—.9% | ||||
Florida—.2% | ||||
Orange County Health Facilities Authority, HR (Orlando | ||||
Regional Healthcare System) (Insured; Assured Guaranty | ||||
Municipal Corp. and Liquidity Facility; Dexia Credit Locale) | 0.35 | 9/1/10 | 1,100,000 f | 1,100,000 |
Oregon—.0% | ||||
Medford Hospital Facilities Authority, Revenue | ||||
(Cascade Manor Project) (LOC; KBC Bank) | 0.28 | 9/1/10 | 100,000 f | 100,000 |
64
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund (continued) | ||||
Short-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Pennsylvania—.5% | ||||
Lancaster County Hospital Authority, Health Center Revenue | ||||
(Masonic Homes Project) (LOC; JPMorgan Chase Bank) | 0.25 | 9/1/10 | 800,000 f | 800,000 |
Lehigh County General Purpose Authority, HR | ||||
(Lehigh Valley Health Network) (LOC; Bank of America) | 0.25 | 9/1/10 | 1,400,000 f | 1,400,000 |
Virginia—.2% | ||||
Peninsula Ports Authority of Virginia, Coal Terminal | ||||
Revenue, Refunding (Dominion Terminal | ||||
Associates Project) (LOC; Barclays Bank PLC) | 0.26 | 9/1/10 | 1,100,000 f | 1,100,000 |
Total Short-Term Municipal Investments | ||||
(cost $4,500,000) | 4,500,000 | |||
Total Investments (cost $475,937,357) | 99.6% | 508,132,280 | ||
Cash and Receivables (Net) | .4% | 2,144,168 | ||
Net Assets | 100.0% | 510,276,448 |
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 August 31, 2010, these securities had a market value of $4,454,115 or 0.9% of net assets. |
b Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. |
c These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in |
escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date. |
d Purchased on a delayed delivery basis. |
e Security issued with a zero coupon. Income is recognized through the accretion of discount. |
f Variable rate demand note—rate shown is the interest rate in effect at August 31, 2010. Maturity date represents the next demand date, or the ultimate maturity date if earlier. |
The Funds 65
STATEMENT OF INVESTMENTS (continued)
Summary of Abbreviations | ||||||
ABAG | Association of Bay Area Governments | ACA | American Capital Access | |||
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company | |||
AMBAC | American Municipal Bond Assurance Corporation | ARRN | Adjustable Rate Receipt Notes | |||
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement | |||
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation | |||
CP | Commercial Paper | EDR | Economic Development Revenue | |||
EIR | Environmental Improvement Revenue | FGIC | Financial Guaranty Insurance Company | |||
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank | |||
FHLMC | Federal Home Loan Mortgage Corporation | FNMA | Federal National Mortgage Association | |||
GAN | Grant Anticipation Notes | GIC | Guaranteed Investment Contract | |||
GNMA | Government National Mortgage Association | GO | General Obligation | |||
HR | Hospital Revenue | IDB | Industrial Development Board | |||
IDC | Industrial Development Corporation | IDR | Industrial Development Revenue | |||
LOC | Letter of Credit | LOR | Limited Obligation Revenue | |||
LR | Lease Revenue | MFHR | Multi-Family Housing Revenue | |||
MFMR | Multi-Family Mortgage Revenue | PCR | Pollution Control Revenue | |||
PILOT | Payment in Lieu of Taxes | PUTTERS | Puttable Tax-Exempt Receipts | |||
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes | |||
RAW | Revenue Anticipation Warrants | RRR | Resources Recovery Revenue | |||
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement | |||
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue | |||
SONYMA | State of New York Mortgage Agency | SWDR | Solid Waste Disposal Revenue | |||
TAN | Tax Anticipation Notes | TAW | Tax Anticipation Warrants | |||
TRAN | Tax and Revenue Anticipation Notes | XLCA | XL Capital Assurance | |||
Summary of Combined Ratings (Unaudited) | ||||||
Fitch | or | Moody’s | or | Standard & Poor’s | Value (%)† | |
AAA | Aaa | AAA | 43.1 | |||
AA | Aa | AA | 26.7 | |||
A | A | A | 21.5 | |||
BBB | Baa | BBB | 5.9 | |||
F1 | MIG1/P1 | SP1/A1 | .9 | |||
Not Ratedg | Not Ratedg | Not Ratedg | 1.9 | |||
100.0 |
† Based on total investments. |
g Securities which, while not rated by Fitch, Moody’s and Standard & Poor’s, have been determined by the Manager to be of comparable quality to those rated securities in which the |
fund may invest. |
See notes to financial statements.
66
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments—97.8% | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts—87.7% | ||||
Ashland, GO (Insured; AMBAC) | 5.25 | 5/15/21 | 1,305,000 | 1,489,488 |
Auburn, GO (Insured; AMBAC) | 5.13 | 6/1/20 | 1,225,000 | 1,384,397 |
Boston, GO | 5.00 | 3/1/20 | 1,700,000 | 1,991,890 |
Boston, GO | 5.00 | 3/1/21 | 2,000,000 | 2,324,300 |
Boston Water and Sewer Commission, General Revenue | 5.00 | 11/1/17 | 2,000,000 | 2,450,460 |
Boston Water and Sewer Commission, General Revenue | 5.00 | 11/1/18 | 1,500,000 | 1,854,780 |
Boston Water and Sewer Commission, General Revenue | 5.00 | 11/1/19 | 2,170,000 | 2,471,847 |
Boston Water and Sewer Commission, General Revenue | 5.00 | 11/1/23 | 3,920,000 | 4,290,401 |
Boston Water and Sewer Commission, General Revenue | 5.00 | 11/1/25 | 5,000,000 | 5,885,950 |
Boston Water and Sewer Commission, System Revenue | 9.25 | 1/1/11 | 55,000 | 56,553 |
Brockton, GO (Municipal Purpose Loan) (Insured; AMBAC) | 5.00 | 6/1/19 | 1,430,000 | 1,613,741 |
Burlington, GO | 5.25 | 2/1/12 | 200,000 | 214,080 |
Burlington, GO | 5.25 | 2/1/13 | 250,000 | 279,280 |
Cambridge, GO (Municipal Purpose Loan) | 5.00 | 12/15/11 | 510,000 | 541,324 |
Cohasset, GO | 5.00 | 6/15/22 | 895,000 | 1,006,768 |
Cohasset, GO | 5.00 | 6/15/23 | 895,000 | 972,194 |
Everett, GO (Insured; National Public Finance Guarantee Corp.) | 5.38 | 12/15/17 | 1,250,000 | 1,461,450 |
Haverhill, GO (State Qualified Municipal Purpose Loan) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 6/1/16 | 1,580,000 | 1,898,765 |
Haverhill, GO (State Qualified Municipal Purpose Loan) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 6/1/18 | 505,000 | 592,612 |
Hingham, GO (Municipal Purpose Loan) | 5.38 | 4/1/17 | 1,645,000 | 1,757,436 |
Hopedale, GO (Insured; AMBAC) | 5.00 | 11/15/19 | 650,000 | 728,045 |
Ipswich, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 11/15/14 | 500,000 | 587,645 |
Lynnfield, GO (Municipal Purpose Loan) | 5.00 | 7/1/20 | 505,000 | 570,998 |
Lynnfield, GO (Municipal Purpose Loan) | 5.00 | 7/1/21 | 525,000 | 593,612 |
Lynnfield, GO (Municipal Purpose Loan) | 5.00 | 7/1/22 | 585,000 | 658,885 |
Lynnfield, GO (Municipal Purpose Loan) | 5.00 | 7/1/23 | 585,000 | 636,223 |
Mansfield, GO (Insured; AMBAC) | 5.00 | 8/15/17 | 1,395,000 | 1,616,052 |
Marblehead, GO | 5.00 | 8/15/18 | 1,340,000 | 1,520,565 |
Marblehead, GO | 5.00 | 8/15/22 | 1,750,000 | 1,977,885 |
Mashpee, GO (Insured; FGIC) (Prerefunded) | 5.63 | 11/15/10 | 500,000 a | 510,605 |
Massachusetts, Consolidated Loan | 5.50 | 11/1/16 | 1,000,000 | 1,233,940 |
Massachusetts, Consolidated Loan | 5.00 | 8/1/20 | 4,000,000 | 4,758,400 |
Massachusetts, Consolidated Loan (Insured; | ||||
Assured Guaranty Municipal Corp.) | 5.25 | 8/1/22 | 5,825,000 | 6,813,561 |
Massachusetts, Consolidated Loan (Insured; Assured | ||||
Guaranty Municipal Corp.) (Prerefunded) | 5.25 | 1/1/13 | 5,000,000 a | 5,522,500 |
Massachusetts, Consolidated Loan (Insured; Assured | ||||
Guaranty Municipal Corp.) (Prerefunded) | 5.00 | 12/1/14 | 5,000,000 a | 5,800,400 |
Massachusetts, Consolidated Loan (Insured; FGIC) | 5.50 | 8/1/18 | 1,035,000 | 1,303,220 |
The Funds 67
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Massachusetts Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts (continued) | ||||
Massachusetts, Consolidated Loan (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.50 | 1/1/12 | 1,300,000 | 1,389,427 |
Massachusetts, Consolidated Loan (Insured; National | ||||
Public Finance Guarantee Corp.) (Prerefunded) | 5.00 | 8/1/12 | 420,000 a | 454,919 |
Massachusetts, Consolidated Loan (Insured; National | ||||
Public Finance Guarantee Corp.) (Prerefunded) | 5.00 | 8/1/12 | 1,580,000 a | 1,711,361 |
Massachusetts, Consolidated Loan (Prerefunded) | 5.25 | 11/1/12 | 2,000,000 a | 2,195,680 |
Massachusetts, Consolidated Loan (Prerefunded) | 5.25 | 10/1/13 | 10,000,000 a | 11,341,100 |
Massachusetts, Consolidated Loan (Prerefunded) | 5.00 | 3/1/15 | 1,500,000 a | 1,762,065 |
Massachusetts, Consolidated Loan (Prerefunded) | 5.00 | 3/1/15 | 1,800,000 a | 2,123,172 |
Massachusetts, Consolidated Loan (Prerefunded) | 5.00 | 8/1/16 | 1,000,000 a | 1,212,580 |
Massachusetts, Federal Highway, GAN | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.13 | 12/15/12 | 1,500,000 | 1,505,655 |
Massachusetts, GO (Insured; AMBAC) | 5.50 | 10/1/18 | 225,000 | 284,022 |
Massachusetts, GO (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 9/1/23 | 5,000,000 | 6,282,350 |
Massachusetts, GO (Insured; XLCA) | 2.27 | 12/1/12 | 2,470,000 b | 2,448,511 |
Massachusetts, Special Obligation Dedicated Tax | ||||
Revenue (Insured; FGIC) (Prerefunded) | 5.25 | 1/1/14 | 2,500,000 a | 2,870,975 |
Massachusetts, Special Obligation Dedicated Tax Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 1.75 | 1/1/16 | 3,540,000 b | 3,453,553 |
Massachusetts, Special Obligation Revenue | 5.38 | 6/1/11 | 5,000,000 | 5,191,800 |
Massachusetts, Special Obligation Revenue | 5.50 | 6/1/13 | 1,000,000 | 1,136,530 |
Massachusetts Bay Transportation Authority, Assessment Revenue | 5.00 | 7/1/18 | 4,000,000 | 4,908,240 |
Massachusetts Bay Transportation Authority, | ||||
Assessment Revenue (Prerefunded) | 5.25 | 7/1/14 | 1,045,000 a | 1,230,822 |
Massachusetts Bay Transportation Authority, | ||||
Assessment Revenue (Prerefunded) | 5.25 | 7/1/14 | 1,000,000 a | 1,177,820 |
Massachusetts Bay Transportation Authority, GO | ||||
(General Transportation System) (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.25 | 3/1/15 | 1,000,000 | 1,179,930 |
Massachusetts Bay Transportation | ||||
Authority, Senior Sales Tax Revenue | 5.00 | 7/1/15 | 3,500,000 | 4,138,050 |
Massachusetts Bay Transportation | ||||
Authority, Senior Sales Tax Revenue | 5.50 | 7/1/16 | 2,500,000 | 3,068,250 |
Massachusetts Bay Transportation | ||||
Authority, Senior Sales Tax Revenue | 5.25 | 7/1/21 | 2,000,000 | 2,532,100 |
Massachusetts Bay Transportation | ||||
Authority, Senior Sales Tax Revenue | 5.25 | 7/1/22 | 2,430,000 | 3,097,910 |
Massachusetts Bay Transportation | ||||
Authority, Senior Sales Tax Revenue | 5.25 | 7/1/22 | 3,415,000 | 4,353,647 |
Massachusetts College Building Authority, Project Revenue | 5.00 | 5/1/23 | 1,000,000 | 1,152,260 |
Massachusetts Development Finance Agency, Education | ||||
Revenue (Belmont Hill School Issue) (Prerefunded) | 5.00 | 9/1/11 | 500,000 a | 525,360 |
68
BNY Mellon Massachusetts Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts (continued) | ||||
Massachusetts Development Finance Agency, | ||||
Education Revenue (Dexter School Project) | 5.00 | 5/1/23 | 1,400,000 | 1,542,380 |
Massachusetts Development Finance Agency, | ||||
Education Revenue (Dexter School Project) | 5.00 | 5/1/24 | 1,465,000 | 1,602,329 |
Massachusetts Development Finance Agency, | ||||
Higher Education Revenue (Emerson College Issue) | 5.00 | 1/1/16 | 1,000,000 | 1,125,130 |
Massachusetts Development Finance Agency, | ||||
Higher Education Revenue (Emerson College Issue) | 5.00 | 1/1/22 | 2,000,000 | 2,147,840 |
Massachusetts Development Finance Agency, | ||||
Revenue (Belmont Hill School Issue) | 4.50 | 9/1/36 | 1,130,000 | 1,128,621 |
Massachusetts Development Finance Agency, | ||||
Revenue (Boston College Issue) | 5.00 | 7/1/20 | 1,000,000 | 1,153,730 |
Massachusetts Development Finance Agency, | ||||
Revenue (College of the Holy Cross Issue) | 5.00 | 9/1/21 | 1,800,000 | 2,098,206 |
Massachusetts Development Finance Agency, | ||||
Revenue (Combined Jewish Philanthropies | ||||
of Greater Boston, Inc. Project) | 5.25 | 2/1/22 | 980,000 | 1,046,464 |
Massachusetts Development Finance Agency, | ||||
Revenue (Curry College Issue) (Insured; ACA) | 4.75 | 3/1/20 | 530,000 | 534,849 |
Massachusetts Development Finance Agency, | ||||
Revenue (Curry College Issue) (Insured; ACA) | 5.25 | 3/1/26 | 1,000,000 | 1,017,660 |
Massachusetts Development Finance Agency, | ||||
Revenue (Curry College Issue) (Insured; ACA) | 5.00 | 3/1/36 | 1,000,000 | 970,550 |
Massachusetts Development Finance Agency, Revenue | ||||
(Massachusetts College of Pharmacy and Allied Health | ||||
Sciences Issue) (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 7/1/24 | 2,750,000 | 2,980,807 |
Massachusetts Development Finance Agency, Revenue | ||||
(Massachusetts College of Pharmacy and Allied Health | ||||
Sciences Issue) (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 7/1/27 | 1,000,000 | 1,067,730 |
Massachusetts Development Finance Agency, Revenue | ||||
(Massachusetts College of Pharmacy and Allied | ||||
Health Sciences Issue) (Prerefunded) | 6.38 | 7/1/13 | 1,000,000 a | 1,170,430 |
Massachusetts Development Finance Agency, | ||||
Revenue (Milton Academy Issue) (Prerefunded) | 5.00 | 9/1/13 | 1,000,000 a | 1,129,600 |
Massachusetts Development Finance Agency, | ||||
Revenue (Olin College Issue) (Insured; XLCA) | 5.25 | 7/1/33 | 5,000,000 | 5,109,050 |
Massachusetts Development Finance Agency, | ||||
Revenue (The Park School Issue) | 4.50 | 9/1/31 | 1,000,000 | 1,003,200 |
Massachusetts Development Finance Agency, | ||||
Revenue (Worcester Polytechnic Institute Issue) | 5.00 | 9/1/40 | 2,500,000 | 2,616,175 |
Massachusetts Development Finance Agency, | ||||
RRR (Waste Management, Inc. Project) | 3.40 | 12/1/12 | 1,250,000 | 1,272,700 |
Massachusetts Development Finance Agency, | ||||
SWDR (Dominion Energy Brayton Point Issue) | 5.75 | 5/1/19 | 2,000,000 | 2,225,440 |
The Funds 69
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Massachusetts Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts (continued) | ||||
Massachusetts Development Finance Agency, | ||||
SWDR (Waste Management, Inc. Project) | 5.45 | 6/1/14 | 1,000,000 | 1,078,310 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Berklee College of Music Issue) | 5.00 | 10/1/32 | 2,000,000 | 2,069,820 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Berklee College of Music Issue) | 5.00 | 10/1/37 | 3,250,000 | 3,333,622 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Boston College Issue) | 5.13 | 6/1/37 | 2,000,000 | 2,170,460 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Cape Cod Healthcare Obligated Group Issue) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.13 | 11/15/35 | 1,000,000 | 1,036,310 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (CareGroup Issue) (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.25 | 7/1/20 | 1,000,000 | 1,072,860 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (CareGroup Issue) (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.25 | 7/1/23 | 1,000,000 | 1,052,700 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Dana-Farber Cancer Institute Issue) | 5.25 | 12/1/22 | 2,750,000 | 3,118,885 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Dana-Farber Cancer Institute Issue) | 5.25 | 12/1/27 | 2,000,000 | 2,216,300 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Dana-Farber Cancer Institute Issue) | 5.00 | 12/1/37 | 2,500,000 | 2,615,875 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Dartmouth-Hitchcock Obligated Group Issue) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.13 | 8/1/22 | 2,000,000 | 2,064,300 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Harvard University Issue) | 5.00 | 12/15/25 | 2,500,000 | 2,963,875 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Harvard University Issue) | 5.00 | 12/15/27 | 3,230,000 | 3,771,574 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Harvard University Issue) | 5.00 | 7/15/36 | 1,000,000 | 1,105,040 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Isabella Stewart Gardner Museum Issue) | 5.00 | 5/1/26 | 2,525,000 | 2,756,568 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Isabella Stewart Gardner Museum Issue) | 5.00 | 5/1/27 | 1,000,000 | 1,083,240 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Jordan Hospital Issue) | 5.00 | 10/1/10 | 500,000 | 500,135 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Massachusetts Institute of Technology Issue) | 5.50 | 7/1/22 | 1,500,000 | 1,982,850 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Massachusetts Institute of Technology Issue) | 5.00 | 7/1/23 | 3,335,000 | 4,174,520 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Massachusetts Institute of Technology Issue) | 5.00 | 7/1/38 | 2,000,000 | 2,182,740 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Milford Regional Medical Center Issue) | 5.00 | 7/15/11 | 500,000 | 506,800 |
70
BNY Mellon Massachusetts Intermediate Municipal Bond Fund (continued)
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($ |
Massachusetts (continued) | ||||
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Milford Regional Medical Center Issue) | 5.00 | 7/15/22 | 500,000 | 486,835 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Northeastern University Issue) | 4.13 | 2/16/12 | 1,500,000 | 1,551,435 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Northeastern University Issue) | 5.00 | 10/1/12 | 975,000 | 1,052,464 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Northeastern University Issue) | 5.00 | 10/1/24 | 2,495,000 | 2,770,273 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Northeastern University Issue) | 5.63 | 10/1/29 | 3,000,000 | 3,324,720 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Northeastern University Issue) | 5.00 | 10/1/30 | 3,000,000 | 3,185,400 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Northeastern University Issue) | 5.00 | 10/1/35 | 2,500,000 | 2,623,075 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 6.00 | 7/1/14 | 1,460,000 | 1,528,970 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 5.00 | 7/1/16 | 1,045,000 | 1,123,124 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 5.00 | 7/1/18 | 1,500,000 | 1,724,010 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 5.00 | 7/1/21 | 1,235,000 | 1,356,894 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 5.75 | 7/1/21 | 2,325,000 | 2,422,069 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 5.00 | 7/1/22 | 250,000 | 269,140 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Partners HealthCare System Issue) | 5.25 | 7/1/29 | 2,350,000 | 2,363,771 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Simmons College Issue) | 7.50 | 10/1/22 | 1,000,000 | 1,249,070 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Simmons College Issue) | 8.00 | 10/1/29 | 1,800,000 | 2,111,868 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Simmons College Issue) | 8.00 | 10/1/39 | 1,500,000 | 1,736,835 |
Massachusetts Health and Educational | ||||
Facilities Authority, Revenue (Southcoast | ||||
Health System Obligated Group Issue) | 5.00 | 7/1/29 | 1,400,000 | 1,452,542 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Southcoast Health System Obligated Group Issue) | 5.00 | 7/1/39 | 1,500,000 | 1,526,700 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Tufts University Issue) | 5.50 | 8/15/14 | 1,000,000 | 1,183,190 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Tufts University Issue) | 5.25 | 8/15/23 | 1,000,000 | 1,184,040 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Tufts University Issue) | 5.50 | 2/15/36 | 1,000,000 | 1,006,870 |
The Funds | 71 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Massachusetts Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts (continued) | ||||
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Tufts University Issue) | 5.38 | 8/15/38 | 2,000,000 | 2,228,280 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (UMass Memorial Issue) | 5.25 | 7/1/25 | 2,000,000 | 2,069,640 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (UMass Memorial Issue) | 5.00 | 7/1/33 | 1,000,000 | 1,004,190 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Wellesley College Issue) | 5.00 | 7/1/24 | 1,000,000 | 1,097,880 |
Massachusetts Housing Finance Agency, Housing Revenue | 4.00 | 6/1/19 | 3,500,000 | 3,636,115 |
Massachusetts Housing Finance Agency, Housing Revenue | 5.13 | 12/1/34 | 200,000 | 200,424 |
Massachusetts Industrial Finance Agency, Education Revenue | ||||
(Saint John’s High School of Worcester County, Inc. Issue) | 5.70 | 6/1/18 | 1,435,000 | 1,437,282 |
Massachusetts Industrial Finance Agency, | ||||
Revenue (Concord Academy Issue) | 5.45 | 9/1/17 | 500,000 | 500,875 |
Massachusetts Industrial Finance Agency, | ||||
Revenue (Concord Academy Issue) | 5.50 | 9/1/27 | 1,250,000 | 1,251,262 |
Massachusetts Municipal Wholesale Electric Company, | ||||
Power Supply Project Revenue (Nuclear Project Number 4 | ||||
Issue) (Insured; National Public Finance Guarantee Corp.) | 5.25 | 7/1/12 | 2,000,000 | 2,118,900 |
Massachusetts Municipal Wholesale Electric Company, | ||||
Power Supply Project Revenue (Nuclear Project Number 4 | ||||
Issue) (Insured; National Public Finance Guarantee Corp.) | 5.25 | 7/1/14 | 5,000,000 | 5,249,750 |
Massachusetts Municipal Wholesale Electric Company, | ||||
Power Supply Project Revenue (Nuclear Project Number 5 | ||||
Issue) (Insured; National Public Finance Guarantee Corp.) | 5.00 | 7/1/11 | 120,000 | 123,716 |
Massachusetts Port Authority, Revenue | 5.75 | 7/1/11 | 3,500,000 | 3,658,165 |
Massachusetts Port Authority, Revenue | 5.00 | 7/1/28 | 2,500,000 | 2,812,925 |
Massachusetts Port Authority, Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.50 | 7/1/14 | 1,265,000 | 1,267,479 |
Massachusetts School Building Authority, | ||||
Dedicated Sales Tax Revenue (Insured; AMBAC) | 5.00 | 8/15/16 | 2,720,000 | 3,257,010 |
Massachusetts School Building Authority, | ||||
Dedicated Sales Tax Revenue (Insured; AMBAC) | 5.00 | 8/15/20 | 4,000,000 | 4,692,720 |
Massachusetts School Building Authority, Dedicated Sales | ||||
Tax Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 8/15/15 | 1,900,000 | 2,246,446 |
Massachusetts School Building Authority, Dedicated Sales | ||||
Tax Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 8/15/18 | 5,000,000 | 5,792,300 |
Massachusetts School Building Authority, Dedicated Sales | ||||
Tax Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 8/15/21 | 2,000,000 | 2,294,940 |
Massachusetts School Building Authority, Dedicated Sales | ||||
Tax Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 8/15/24 | 1,750,000 | 2,005,045 |
Massachusetts Turnpike Authority, Turnpike Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 1/1/20 | 5,000,000 | 6,111,500 |
Massachusetts Water Pollution Abatement Trust (Pool Program) | 5.63 | 8/1/13 | 25,000 | 25,358 |
72
BNY Mellon Massachusetts Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts (continued) | ||||
Massachusetts Water Pollution Abatement Trust (Pool Program) | 5.25 | 2/1/14 | 1,105,000 | 1,153,311 |
Massachusetts Water Pollution Abatement Trust (Pool Program) | 5.50 | 8/1/14 | 30,000 | 30,127 |
Massachusetts Water Pollution Abatement Trust (Pool Program) | 5.25 | 8/1/17 | 170,000 | 197,882 |
Massachusetts Water Pollution Abatement Trust (Pool Program) | 5.00 | 8/1/18 | 75,000 | 80,765 |
Massachusetts Water Pollution Abatement Trust (Pool Program) | 5.00 | 8/1/21 | 2,625,000 | 3,088,627 |
Massachusetts Water Pollution Abatement Trust (Pool Program) | 5.00 | 8/1/32 | 2,000,000 | 2,056,780 |
Massachusetts Water Pollution Abatement | ||||
Trust (Pool Program) (Prerefunded) | 5.25 | 8/1/11 | 335,000 a | 350,065 |
Massachusetts Water Pollution Abatement | ||||
Trust (Pool Program) (Prerefunded) | 5.00 | 8/1/12 | 3,910,000 a | 4,235,077 |
Massachusetts Water Pollution Abatement | ||||
Trust (Pool Program) (Prerefunded) | 5.25 | 8/1/14 | 1,330,000 a | 1,563,894 |
Massachusetts Water Pollution Abatement Trust, | ||||
Water Pollution Abatement Revenue (MWRA Program) | 5.75 | 8/1/29 | 155,000 | 155,618 |
Massachusetts Water Pollution Abatement Trust, Water Pollution | ||||
Abatement Revenue (New Bedford Loan Program) | 5.25 | 2/1/12 | 500,000 | 534,680 |
Massachusetts Water Pollution Abatement Trust, Water Pollution | ||||
Abatement Revenue (South Essex Sewer District Loan Program) | 6.38 | 2/1/15 | 195,000 | 195,989 |
Massachusetts Water Resources Authority, General Revenue | 5.00 | 8/1/19 | 2,475,000 | 3,044,300 |
Massachusetts Water Resources Authority, General Revenue | 5.00 | 8/1/27 | 7,500,000 | 8,718,825 |
Massachusetts Water Resources Authority, General Revenue | 5.00 | 8/1/39 | 1,000,000 | 1,086,460 |
Massachusetts Water Resources Authority, General | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.25 | 8/1/19 | 1,500,000 | 1,797,240 |
Massachusetts Water Resources Authority, General | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.50 | 8/1/11 | 100,000 | 104,815 |
Massachusetts Water Resources Authority, General | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.25 | 8/1/18 | 500,000 | 623,775 |
Massachusetts Water Resources Authority, General Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 6.00 | 8/1/14 | 1,000,000 | 1,199,810 |
Massachusetts Water Resources Authority, General Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.25 | 8/1/21 | 1,000,000 | 1,177,690 |
Massachusetts Water Resources Authority, General Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.25 | 8/1/24 | 2,500,000 | 2,886,575 |
Middleborough, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 12/15/16 | 1,000,000 | 1,191,210 |
Middleborough, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 12/15/18 | 1,275,000 | 1,479,102 |
Milton, GO School Bonds | 5.00 | 3/1/23 | 500,000 | 551,145 |
Milton, GO School Bonds | 5.00 | 3/1/24 | 500,000 | 548,910 |
Milton, GO School Bonds | 5.00 | 3/1/25 | 500,000 | 546,315 |
Northampton, GO (Insured; National Public Finance Guarantee Corp.) | 5.13 | 10/15/16 | 1,985,000 | 2,269,272 |
Northbridge, GO (Insured; AMBAC) | 5.25 | 2/15/17 | 1,000,000 | 1,071,100 |
Pembroke, GO (Insured; National Public Finance Guarantee Corp.) | 4.50 | 8/1/13 | 695,000 | 768,983 |
Pembroke, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 8/1/20 | 960,000 | 1,081,766 |
The Funds | 73 |
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Massachusetts Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Massachusetts (continued) | ||||
Pittsfield, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 4/15/12 | 1,000,000 | 1,072,320 |
Pittsfield, GO (Insured; National Public Finance | ||||
Guarantee Corp.) (Prerefunded) | 5.50 | 4/15/12 | 500,000 a | 547,120 |
Randolph, GO (Insured; AMBAC) | 5.00 | 9/1/17 | 1,045,000 | 1,164,454 |
Randolph, GO (Insured; AMBAC) | 5.00 | 9/1/24 | 490,000 | 523,374 |
Springfield Water and Sewer Commission, | ||||
General Revenue (Insured; AMBAC) | 5.00 | 7/15/22 | 1,175,000 | 1,289,868 |
Springfield Water and Sewer Commission, | ||||
General Revenue (Insured; AMBAC) | 5.00 | 7/15/23 | 1,235,000 | 1,346,817 |
University of Massachusetts Building Authority, Revenue | 6.88 | 5/1/14 | 1,500,000 | 1,712,820 |
Worcester, GO (Insured; National Public Finance Guarantee Corp.) | 5.25 | 8/15/16 | 1,000,000 | 1,132,000 |
Worcester, GO (Insured; National Public Finance Guarantee Corp.) | 5.25 | 8/15/17 | 1,000,000 | 1,118,400 |
Worcester, GO (Insured; National Public Finance Guarantee Corp.) | 5.00 | 4/1/18 | 625,000 | 692,538 |
U.S. Related—10.1% | ||||
Government of Guam, LOR (Section 30) | 5.63 | 12/1/29 | 1,000,000 | 1,063,260 |
Guam Economic Development Authority, | ||||
Tobacco Settlement Asset-Backed Bonds | 5.15 | 5/15/11 | 250,000 | 258,365 |
Guam Economic Development Authority, | ||||
Tobacco Settlement Asset-Backed Bonds | 5.20 | 5/15/12 | 300,000 | 323,514 |
Guam Economic Development Authority, | ||||
Tobacco Settlement Asset-Backed Bonds | 5.20 | 5/15/13 | 1,175,000 | 1,315,271 |
Puerto Rico Commonwealth, Public Improvement GO | 5.00 | 7/1/14 | 2,500,000 | 2,724,250 |
Puerto Rico Commonwealth, Public Improvement GO | 5.25 | 7/1/22 | 1,500,000 | 1,578,270 |
Puerto Rico Commonwealth, Public Improvement | ||||
GO (Insured; Assured Guaranty Municipal Corp.) | 5.50 | 7/1/15 | 1,350,000 | 1,552,500 |
Puerto Rico Commonwealth, Public Improvement | ||||
GO (Insured; National Public Finance Guarantee Corp.) | 6.25 | 7/1/11 | 1,050,000 | 1,091,444 |
Puerto Rico Commonwealth, Public Improvement | ||||
GO (Insured; National Public Finance Guarantee Corp.) | 5.50 | 7/1/14 | 500,000 | 554,895 |
Puerto Rico Commonwealth, Public Improvement | ||||
GO (Insured; National Public Finance Guarantee Corp.) | 5.50 | 7/1/15 | 1,135,000 | 1,260,974 |
Puerto Rico Electric Power Authority, Power Revenue | 5.25 | 7/1/23 | 2,000,000 | 2,242,980 |
Puerto Rico Electric Power Authority, Power Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 7/1/17 | 1,000,000 | 1,098,530 |
Puerto Rico Government Development Bank, Senior Notes | 5.00 | 12/1/12 | 3,205,000 | 3,416,722 |
Puerto Rico Government Development Bank, Senior Notes | 5.00 | 12/1/13 | 3,000,000 | 3,266,130 |
Puerto Rico Government Development Bank, Senior Notes | 5.25 | 1/1/15 | 2,000,000 | 2,146,560 |
Puerto Rico Highways and Transportation | ||||
Authority, Highway Revenue | 5.00 | 7/1/16 | 1,000,000 | 1,088,940 |
Puerto Rico Highways and Transportation | ||||
Authority, Highway Revenue (Insured; FGIC) | 5.50 | 7/1/16 | 3,265,000 | 3,641,324 |
Puerto Rico Highways and Transportation Authority, Highway | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 6.00 | 7/1/11 | 2,060,000 | 2,101,900 |
74
BNY Mellon Massachusetts Intermediate Municipal Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
U.S. Related (continued) | ||||
Puerto Rico Highways and Transportation Authority, | ||||
Transportation Revenue (Insured; FGIC) | 5.25 | 7/1/15 | 1,905,000 | 2,018,176 |
Puerto Rico Highways and Transportation Authority, | ||||
Transportation Revenue (Insured; FGIC) | 5.25 | 7/1/16 | 1,550,000 | 1,630,616 |
Puerto Rico Infrastructure Financing Authority, Special Tax Revenue | 5.00 | 7/1/20 | 2,260,000 | 2,396,933 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.75 | 8/1/32 | 1,000,000 c | 864,160 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.25 | 8/1/33 | 750,000 c | 526,313 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0.00 | 8/1/36 | 3,000,000 d | 630,540 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 5.38 | 8/1/39 | 1,500,000 | 1,584,450 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 6.00 | 8/1/42 | 1,500,000 | 1,647,510 |
Total Long-Term Municipal Investments | ||||
(cost $378,241,609) | 406,627,859 | |||
Short-Term Municipal Investments—1.2% | ||||
Massachusetts; | ||||
Massachusetts, Consolidated Loan | ||||
(Liquidity Facility; Dexia Credit Locale) | 0.31 | 9/1/10 | 2,100,000 e | 2,100,000 |
Massachusetts, GO Notes (Central Artery/Ted Williams | ||||
Tunnel Infrastructure Loan Act of 2000) (Liquidity | ||||
Facility; Landesbank Baden-Wurttemberg) | 0.33 | 9/1/10 | 300,000 e | 300,000 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Capital Asset Program Issue) (LOC; Bank of America) | 0.23 | 9/1/10 | 500,000 e | 500,000 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Children’s Hospital Issue) (LOC; JPMorgan Chase Bank) | 0.28 | 9/1/10 | 900,000 e | 900,000 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Stonehill College Issue) (LOC; Bank of America) | 0.24 | 9/1/10 | 500,000 e | 500,000 |
Massachusetts Water Resources Authority, Multi-Modal | ||||
Subordinated General Revenue, Refunding (LOC; | ||||
Landesbank Hessen-Thuringen Girozentrale) | 0.28 | 9/1/10 | 800,000 e | 800,000 |
Total Short-Term Municipal Investments | ||||
(cost $5,100,000) | 5,100,000 | |||
Total Investments (cost $383,341,609) | 99.0% | 411,727,859 | ||
Cash and Receivables (Net) | 1.0% | 4,101,892 | ||
Net Assets | 100.0% | 415,829,751 |
a These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in |
escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date. |
b Variable rate security—interest rate subject to periodic change. |
c Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. |
d Security issued with a zero coupon. Income is recognized through the accretion of discount. |
e Variable rate demand note—rate shown is the interest rate in effect at August 31, 2010. Maturity date represents the next demand date, or the ultimate maturity date if earlier. |
The Funds 75
STATEMENT OF INVESTMENTS (continued)
Summary of Abbreviations | ||||||
ABAG | Association of Bay Area Governments | ACA | American Capital Access | |||
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company | |||
AMBAC | American Municipal Bond Assurance Corporation | ARRN | Adjustable Rate Receipt Notes | |||
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement | |||
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation | |||
CP | Commercial Paper | EDR | Economic Development Revenue | |||
EIR | Environmental Improvement Revenue | FGIC | Financial Guaranty Insurance Company | |||
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank | |||
FHLMC | Federal Home Loan Mortgage Corporation | FNMA | Federal National Mortgage Association | |||
GAN | Grant Anticipation Notes | GIC | Guaranteed Investment Contract | |||
GNMA | Government National Mortgage Association | GO | General Obligation | |||
HR | Hospital Revenue | IDB | Industrial Development Board | |||
IDC | Industrial Development Corporation | IDR | Industrial Development Revenue | |||
LOC | Letter of Credit | LOR | Limited Obligation Revenue | |||
LR | Lease Revenue | MFHR | Multi-Family Housing Revenue | |||
MFMR | Multi-Family Mortgage Revenue | PCR | Pollution Control Revenue | |||
PILOT | Payment in Lieu of Taxes | PUTTERS | Puttable Tax-Exempt Receipts | |||
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes | |||
RAW | Revenue Anticipation Warrants | RRR | Resources Recovery Revenue | |||
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement | |||
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue | |||
SONYMA | State of New York Mortgage Agency | SWDR | Solid Waste Disposal Revenue | |||
TAN | Tax Anticipation Notes | TAW | Tax Anticipation Warrants | |||
TRAN | Tax and Revenue Anticipation Notes | XLCA | XL Capital Assurance | |||
Summary of Combined Ratings (Unaudited) | ||||||
Fitch | or | Moody’s | or | Standard & Poor’s | Value (%)† | |
AAA | Aaa | AAA | 41.8 | |||
AA | Aa | AA | 31.0 | |||
A | A | A | 21.4 | |||
BBB | Baa | BBB | 3.7 | |||
BB | Ba | BB | .1 | |||
F1 | MIG1/P1 | SP1/A1 | 1.5 | |||
Not Ratedf | Not Ratedf | Not Ratedf | .5 | |||
100.0 |
† Based on total investments. |
f Securities which, while not rated by Fitch, Moody’s and Standard & Poor’s, have been determined by the Manager to be of comparable quality to those rated securities in which the |
fund may invest. |
See notes to financial statements.
76
STATEMENT OF INVESTMENTS |
August 31, 2010 |
BNY Mellon New York Intermediate Tax-Exempt Bond Fund | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments—92.7% | Rate (%) | Date | Amount ($) | Value ($) |
Arizona—.2% | ||||
Salt Verde Financial Corporation, Senior Gas Revenue | 5.00 | 12/1/32 | 500,000 | 484,305 |
New York—84.4% | ||||
Albany County Airport Authority, Airport Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 12/15/23 | 1,500,000 | 1,676,085 |
Albany Industrial Development Agency, Civic Facility Revenue | ||||
(Saint Peter’s Hospital of the City of Albany Project) | 5.75 | 11/15/22 | 2,500,000 | 2,686,025 |
Battery Park City Authority, Senior Revenue | 5.25 | 11/1/22 | 1,000,000 | 1,116,390 |
Erie County Industrial Development Agency, Revenue | ||||
(City School District of the City of Buffalo Project) | 5.00 | 5/1/17 | 2,500,000 | 2,958,500 |
Katonah-Lewisboro Union Free School District, GO | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 9/15/15 | 1,000,000 | 1,193,420 |
Long Island Power Authority, Electric System General Revenue | 5.25 | 6/1/14 | 2,000,000 | 2,310,760 |
Long Island Power Authority, Electric System General | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 4.00 | 5/1/12 | 850,000 | 898,722 |
Long Island Power Authority, Electric System General Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 12/1/18 | 1,000,000 | 1,158,200 |
Metropolitan Transportation Authority, Dedicated Tax Fund | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.25 | 11/15/15 | 2,000,000 | 2,098,820 |
Metropolitan Transportation Authority, Dedicated Tax Fund | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.00 | 11/15/28 | 5,000,000 | 5,452,700 |
Metropolitan Transportation Authority, | ||||
Transit Facilities Revenue (Insured; FGIC) | 0.00 | 7/1/11 | 1,000,000 a | 997,500 |
Metropolitan Transportation Authority, Transportation Revenue | 5.00 | 11/15/17 | 1,000,000 | 1,156,280 |
Nassau County, GO (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 7/1/22 | 1,000,000 | 1,161,760 |
Nassau County Interim Finance Authority, | ||||
Sales Tax Secured Revenue (Insured; AMBAC) | 5.00 | 11/15/16 | 1,500,000 | 1,666,170 |
Nassau County Interim Finance Authority, | ||||
Sales Tax Secured Revenue (Insured; AMBAC) | 5.00 | 11/15/17 | 1,500,000 | 1,660,200 |
Nassau County Interim Finance Authority, Sales Tax Secured | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.00 | 11/15/16 | 1,000,000 | 1,175,650 |
Nassau County Sewer and Storm Water Finance Authority, System | ||||
Revenue (Insured; Berkshire Hathaway Assurance Corporation) | 5.38 | 11/1/28 | 1,000,000 | 1,154,020 |
New York City, GO | 5.00 | 8/1/17 | 2,835,000 | 3,378,753 |
New York City, GO | 5.00 | 8/1/18 | 1,000,000 | 1,157,170 |
New York City, GO | 5.25 | 9/1/20 | 1,000,000 | 1,194,920 |
New York City, GO | 5.13 | 12/1/22 | 1,000,000 | 1,164,890 |
New York City, GO | 5.25 | 9/1/23 | 1,000,000 | 1,169,440 |
New York City, GO (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 4/1/18 | 1,000,000 | 1,141,010 |
New York City Industrial Development Agency, | ||||
Civic Facility Revenue (United Jewish Appeal—Federation | ||||
of Jewish Philanthropies of New York, Inc. Project) | 5.00 | 7/1/27 | 1,250,000 | 1,358,500 |
New York City Industrial Development Agency, PILOT | ||||
Revenue (Queens Baseball Stadium Project) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 6.50 | 1/1/46 | 500,000 | 568,070 |
The Funds 77
STATEMENT OF INVESTMENTS (continued)
BNY Mellon New York Intermediate Tax-Exempt Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York (continued) | ||||
New York City Industrial Development Agency, PILOT | ||||
Revenue (Yankee Stadium Project) (Insured; | ||||
Assured Guaranty Municipal Corp.) | 7.00 | 3/1/49 | 1,000,000 | 1,185,530 |
New York City Industrial Development Agency, Special Revenue | ||||
(New York City—New York Stock Exchange Project) | 5.00 | 5/1/21 | 1,000,000 | 1,135,820 |
New York City Industrial Development Agency, Special Revenue | ||||
(New York City—New York Stock Exchange Project) | 5.00 | 5/1/29 | 1,000,000 | 1,061,290 |
New York City Municipal Water Finance | ||||
Authority, Water and Sewer System Revenue | 5.75 | 6/15/40 | 1,275,000 | 1,470,432 |
New York City Municipal Water Finance Authority, | ||||
Water and Sewer System Second General Resolution Revenue | 5.00 | 6/15/20 | 2,500,000 | 2,962,700 |
New York City Transitional Finance Authority, Building Aid Revenue | 5.25 | 1/15/25 | 1,545,000 | 1,765,580 |
New York City Transitional Finance Authority, Building Aid Revenue | 5.25 | 1/15/27 | 1,650,000 | 1,866,232 |
New York City Transitional Finance Authority, | ||||
Future Tax Secured Revenue | 5.50 | 11/15/17 | 1,755,000 | 1,929,710 |
New York City Transitional Finance Authority, | ||||
Future Tax Secured Revenue (Prerefunded) | 5.38 | 2/1/11 | 1,000,000 b | 1,031,600 |
New York City Transitional Finance Authority, | ||||
Future Tax Secured Revenue (Prerefunded) | 5.38 | 2/15/12 | 1,000,000 b | 1,073,580 |
New York City Transitional Finance Authority, | ||||
Future Tax Secured Subordinate Revenue | 5.00 | 11/1/18 | 1,750,000 | 2,138,692 |
New York City Trust for Cultural Resources, | ||||
Revenue (Lincoln Center for the Performing Arts, Inc.) | 5.75 | 12/1/16 | 1,000,000 | 1,210,820 |
New York City Trust for Cultural Resources, | ||||
Revenue (The Juilliard School) | 5.00 | 1/1/34 | 1,850,000 | 2,023,104 |
New York City Trust for Cultural Resources, | ||||
Revenue (The Juilliard School) | 5.00 | 1/1/39 | 3,750,000 | 4,084,050 |
New York City Trust for Cultural Resources, | ||||
Revenue (The Museum of Modern Art) | 5.00 | 4/1/25 | 1,150,000 | 1,315,312 |
New York City Trust for Cultural Resources, | ||||
Revenue (The Museum of Modern Art) | 5.00 | 4/1/31 | 1,000,000 | 1,099,980 |
New York Liberty Development Corporation, | ||||
Revenue (Goldman Sachs Headquarters Issue) | 5.00 | 10/1/15 | 1,850,000 | 2,034,186 |
New York Local Government Assistance Corporation, Revenue | 5.00 | 4/1/18 | 2,500,000 | 2,988,175 |
New York Local Government Assistance Corporation, Subordinate | ||||
Lien Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 4/1/13 | 2,000,000 | 2,238,960 |
New York State, GO | 5.00 | 4/15/14 | 1,000,000 | 1,110,360 |
New York State, GO | 5.25 | 3/15/15 | 2,750,000 | 2,840,640 |
New York State, GO | 5.00 | 3/1/19 | 1,000,000 | 1,169,780 |
New York State, GO | 5.00 | 2/15/26 | 2,600,000 | 2,961,816 |
New York State Dormitory Authority, Consolidated Fifth | ||||
General Resolution Revenue (City University System) | 5.00 | 7/1/19 | 1,000,000 | 1,127,650 |
New York State Dormitory Authority, Consolidated | ||||
Revenue (City University System) (Insured; FGIC) | 5.75 | 7/1/18 | 2,370,000 | 2,698,861 |
78
BNY Mellon New York Intermediate Tax-Exempt Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York (continued) | ||||
New York State Dormitory Authority, Court Facilities LR | ||||
(The City of New York Issue) (Prerefunded) | 5.38 | 5/15/13 | 1,000,000 b | 1,134,640 |
New York State Dormitory Authority, LR | ||||
(State University Dormitory Facilities Issue) | 5.00 | 7/1/18 | 1,000,000 | 1,116,980 |
New York State Dormitory Authority, Revenue (Columbia University) | 5.00 | 7/1/12 | 1,000,000 | 1,085,960 |
New York State Dormitory Authority, Revenue (Columbia University) | 5.00 | 7/1/18 | 1,500,000 | 1,770,105 |
New York State Dormitory Authority, Revenue (Columbia University) | 5.00 | 7/1/38 | 500,000 | 548,640 |
New York State Dormitory Authority, Revenue (Fordham University) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 7/1/18 | 405,000 | 423,614 |
New York State Dormitory Authority, Revenue | ||||
(Memorial Sloan-Kettering Cancer Center) | 5.00 | 7/1/11 | 1,000,000 | 1,035,360 |
New York State Dormitory Authority, Revenue | ||||
(Memorial Sloan-Kettering Cancer Center) (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.00 | 7/1/20 | 3,250,000 | 3,575,747 |
New York State Dormitory Authority, Revenue | ||||
(Mount Sinai Hospital Obligated Group) | 5.00 | 7/1/26 | 3,000,000 | 3,215,280 |
New York State Dormitory Authority, Revenue | ||||
(Mount Sinai School of Medicine of New York University) | 5.13 | 7/1/39 | 5,000,000 | 5,157,300 |
New York State Dormitory Authority, | ||||
Revenue (New York University) | 5.25 | 7/1/34 | 2,500,000 | 2,760,825 |
New York State Dormitory Authority, Revenue (New York | ||||
University) (Insured; National Public Finance Guarantee Corp.) | 5.00 | 7/1/21 | 1,500,000 | 1,681,725 |
New York State Dormitory Authority, Revenue | ||||
(State University Educational Facilities) (Insured; | ||||
National Public Finance Guarantee Corp.) | 5.88 | 5/15/11 | 1,500,000 | 1,555,740 |
New York State Dormitory Authority, Revenue | ||||
(State University Educational Facilities) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.25 | 5/15/15 | 500,000 | 573,125 |
New York State Dormitory Authority, | ||||
Revenue (The Rockefeller University) | 5.00 | 7/1/25 | 1,000,000 | 1,171,500 |
New York State Dormitory Authority, | ||||
Revenue (The Rockefeller University) | 5.00 | 7/1/40 | 5,000,000 | 5,479,800 |
New York State Dormitory Authority, Revenue (Vassar College) | 5.00 | 7/1/15 | 675,000 | 794,914 |
New York State Dormitory Authority, | ||||
Secured HR (The Bronx-Lebanon Hospital Center) | 4.00 | 8/15/14 | 1,000,000 | 1,098,930 |
New York State Dormitory Authority, | ||||
State Personal Income Tax Revenue (Education) | 5.00 | 3/15/16 | 1,000,000 | 1,117,840 |
New York State Dormitory Authority, | ||||
State Personal Income Tax Revenue (Education) | 5.75 | 3/15/36 | 1,000,000 | 1,161,220 |
New York State Dormitory Authority, Third General Resolution | ||||
Revenue (State University Educational Facilities Issue) | 5.25 | 5/15/12 | 1,500,000 | 1,611,450 |
New York State Environmental Facilities Corporation, | ||||
State Clean Water and Drinking Water Revolving Funds Revenue | ||||
(New York City Municipal Water Finance Authority Projects) | 5.25 | 6/15/12 | 390,000 | 391,599 |
The Funds 79
STATEMENT OF INVESTMENTS (continued)
BNY Mellon New York Intermediate Tax-Exempt Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York (continued) | ||||
New York State Environmental Facilities Corporation, | ||||
State Clean Water and Drinking Water Revolving Funds Revenue | ||||
(New York City Municipal Water Finance Authority Projects) | 5.25 | 6/15/14 | 1,500,000 | 1,758,060 |
New York State Environmental Facilities Corporation, State | ||||
Clean Water and Drinking Water Revolving Funds Revenue | ||||
(New York City Municipal Water Finance Authority Projects) | 5.38 | 6/15/15 | 1,000,000 | 1,079,390 |
New York State Environmental Facilities Corporation, State | ||||
Clean Water and Drinking Water Revolving Funds Revenue | ||||
(New York City Municipal Water Finance Authority Projects) | 5.25 | 6/15/17 | 1,000,000 | 1,074,950 |
New York State Environmental Facilities Corporation, State | ||||
Clean Water and Drinking Water Revolving Funds Revenue | ||||
(New York City Municipal Water Finance Authority Projects) | 5.25 | 6/15/19 | 775,000 | 836,589 |
New York State Environmental Facilities Corporation, State | ||||
Water Pollution Control Revolving Fund Revenue | ||||
(New York City Municipal Water Finance Authority Project) | 7.00 | 6/15/12 | 150,000 | 150,810 |
New York State Environmental Facilities Corporation, State Water | ||||
Pollution Control Revolving Fund Revenue (Pooled Loan Issue) | 7.20 | 3/15/11 | 5,000 | 5,029 |
New York State Medical Care Facilities Finance Agency, | ||||
Secured Mortgage Revenue (Collateralized; SONYMA) | 6.38 | 11/15/20 | 440,000 | 441,206 |
New York State Mortgage Agency, Homeowner Mortgage Revenue | 5.10 | 10/1/17 | 1,000,000 | 1,006,380 |
New York State Mortgage Agency, Homeowner Mortgage Revenue | 5.38 | 10/1/17 | 970,000 | 971,329 |
New York State Municipal Bond Bank Agency, Recovery Act | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 5/15/16 | 2,000,000 | 2,341,600 |
New York State Power Authority, Revenue (Insured; FGIC) | 5.00 | 11/15/20 | 1,000,000 | 1,140,150 |
New York State Power Authority, Revenue (Prerefunded) | 5.00 | 11/15/12 | 2,500,000 b | 2,756,350 |
New York State Thruway Authority, | ||||
General Revenue (Insured; AMBAC) | 5.00 | 1/1/19 | 1,000,000 | 1,104,420 |
New York State Thruway Authority, Highway and | ||||
Bridge Trust Fund Bonds (Insured; National Public | ||||
Finance Guarantee Corp.) (Prerefunded) | 5.25 | 10/1/11 | 1,000,000 b | 1,055,240 |
New York State Thruway Authority, Local Highway | ||||
and Bridge Service Contract Bonds | 5.50 | 4/1/14 | 1,000,000 | 1,072,610 |
New York State Thruway Authority, Second General | ||||
Highway and Bridge Trust Fund Bonds (Insured; AMBAC) | 5.00 | 4/1/25 | 2,000,000 | 2,182,140 |
New York State Thruway Authority, Second General | ||||
Highway and Bridge Trust Fund Bonds (Insured; | ||||
Assured Guaranty Municipal Corp.) (Prerefunded) | 4.75 | 4/1/13 | 1,000,000 b | 1,099,030 |
New York State Urban Development Corporation, | ||||
Corporate Purpose Senior Lien Revenue | 5.50 | 7/1/16 | 555,000 | 557,314 |
New York State Urban Development | ||||
Corporation, Service Contract Revenue | 5.25 | 1/1/24 | 2,375,000 | 2,671,352 |
Onondaga County, GO | 5.00 | 5/1/17 | 1,150,000 | 1,240,632 |
Onondaga County, GO (Prerefunded) | 5.00 | 5/1/12 | 350,000 b | 377,765 |
Onondaga County Trust for Cultural Resources, | ||||
Revenue (Syracuse University Project) | 5.00 | 12/1/19 | 2,500,000 | 3,042,025 |
80
BNY Mellon New York Intermediate Tax-Exempt Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York (continued) | ||||
Orange County, GO | 5.00 | 7/15/19 | 1,000,000 | 1,134,860 |
Orange County, GO | 5.00 | 7/15/20 | 1,000,000 | 1,122,910 |
Port Authority of New York and New Jersey (Consolidated Bonds, | ||||
125th Series) (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 10/15/19 | 2,000,000 | 2,154,780 |
Port Authority of New York and New Jersey (Consolidated Bonds, | ||||
128th Series) (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 11/1/18 | 1,000,000 | 1,088,500 |
Port Authority of New York and New Jersey (Consolidated Bonds, | ||||
140th Series) (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 12/1/19 | 1,000,000 | 1,147,310 |
Port Authority of New York and New Jersey | ||||
(Consolidated Bonds, 142nd Series) | 5.00 | 7/15/21 | 1,000,000 | 1,143,840 |
Rockland County, GO (Various Purpose) | 5.00 | 10/1/15 | 500,000 | 526,265 |
Sales Tax Asset Receivable Corporation, Sales Tax Asset | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.00 | 10/15/25 | 1,450,000 | 1,618,592 |
Suffolk County, Public Improvement GO (Insured; FGIC) | 5.00 | 10/1/13 | 750,000 | 753,023 |
Suffolk County Industrial Development Agency, Civic Facility | ||||
Revenue (New York Institute of Technology Project) | 5.00 | 3/1/26 | 750,000 | 771,428 |
Suffolk County Water Authority, Water System Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 4.00 | 6/1/14 | 1,000,000 | 1,095,260 |
Tobacco Settlement Financing Corporation, Asset-Backed | ||||
Revenue Bonds (State Contingency Contract Secured) | 5.00 | 6/1/12 | 2,000,000 | 2,149,840 |
Triborough Bridge and Tunnel Authority, General Purpose Revenue | 6.00 | 1/1/12 | 550,000 | 574,965 |
Triborough Bridge and Tunnel Authority, | ||||
General Purpose Revenue | 5.25 | 1/1/16 | 1,000,000 | 1,059,300 |
Triborough Bridge and Tunnel Authority, | ||||
General Purpose Revenue (Prerefunded) | 5.25 | 1/1/22 | 1,000,000 b | 1,279,580 |
Triborough Bridge and Tunnel Authority, General Revenue | 5.25 | 11/15/15 | 1,000,000 | 1,196,950 |
Triborough Bridge and Tunnel Authority, General Revenue | 5.25 | 11/15/16 | 2,000,000 | 2,191,900 |
Triborough Bridge and Tunnel Authority, General Revenue | 5.25 | 11/15/17 | 775,000 | 849,361 |
Troy Industrial Development Authority, Civic Facility | ||||
Revenue (Rensselaer Polytechnic Institute Project) | 5.00 | 9/1/10 | 2,000,000 | 2,000,000 |
Westchester County GO | 4.00 | 11/15/15 | 1,000,000 | 1,123,150 |
Westchester County Health Care | ||||
Corporation, Subordinate Lien Revenue | 5.13 | 11/1/15 | 1,100,000 | 1,107,799 |
U.S. Related—8.1% | ||||
Puerto Rico Commonwealth, Public Improvement GO | 5.50 | 7/1/13 | 1,000,000 | 1,091,750 |
Puerto Rico Electric Power Authority, Power Revenue | 5.25 | 7/1/26 | 2,000,000 | 2,204,920 |
Puerto Rico Government Development Bank, Senior Notes | 5.00 | 12/1/15 | 3,500,000 | 3,813,390 |
Puerto Rico Highways and Transportation Authority, Highway | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 6.00 | 7/1/11 | 515,000 | 525,475 |
Puerto Rico Highways and Transportation Authority, | ||||
Transportation Revenue (Prerefunded) | 5.25 | 7/1/12 | 1,000,000 b | 1,086,280 |
Puerto Rico Housing Finance Authority, Capital Fund Program | ||||
Revenue (Puerto Rico Housing Administration Projects) | 5.00 | 12/1/18 | 260,000 | 278,476 |
The Funds 81
STATEMENT OF INVESTMENTS (continued)
BNY Mellon New York Intermediate Tax-Exempt Bond Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
U.S. Related (continued) | ||||
Puerto Rico Housing Finance Authority, Capital Fund Program | ||||
Revenue (Puerto Rico Housing Administration Projects) | 5.00 | 12/1/19 | 270,000 | 287,461 |
Puerto Rico Housing Finance Authority, | ||||
Capital Fund Program Revenue (Puerto Rico | ||||
Housing Administration Projects) (Prerefunded) | 5.00 | 12/1/13 | 730,000 b | 828,433 |
Puerto Rico Housing Finance Authority, | ||||
Capital Fund Program Revenue (Puerto Rico | ||||
Housing Administration Projects) (Prerefunded) | 5.00 | 12/1/13 | 740,000 b | 839,782 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.75 | 8/1/32 | 1,700,000 c | 1,469,072 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.25 | 8/1/33 | 500,000 c | 350,875 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0.00 | 8/1/34 | 2,000,000 a | 480,780 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0.00 | 8/1/36 | 1,250,000 a | 262,725 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 5.38 | 8/1/39 | 1,000,000 | 1,056,300 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 6.00 | 8/1/42 | 2,500,000 | 2,745,850 |
Total Long-Term Municipal Investments | ||||
(cost $183,323,166) | 198,500,967 | |||
Short-Term Municipal Investments—6.4% | ||||
New York; | ||||
Long Island Power Authority, Electric System Subordinated | ||||
Revenue (LOC; State Street Bank and Trust Co.) | 0.24 | 9/1/10 | 1,400,000 d | 1,400,000 |
Metropolitan Transportation Authority, | ||||
Transportation Revenue (LOC; BNP Paribas) | 0.23 | 9/1/10 | 1,400,000 d | 1,400,000 |
New York City, GO Notes (Insured; Assured Guaranty | ||||
Municipal Corp. and Liquidity Facility; Dexia Credit Locale) | 0.28 | 9/1/10 | 200,000 d | 200,000 |
New York City, GO Notes (Insured; Assured Guaranty Municipal | ||||
Corp. and Liquidity Facility; State Street Bank and Trust Co.) | 0.27 | 9/1/10 | 200,000 d | 200,000 |
New York City, GO Notes (Liquidity Facility; Allied Irish Banks) | 0.60 | 9/1/10 | 3,400,000 d | 3,400,000 |
New York City, GO Notes (LOC; Dexia Credit Locale) | 0.28 | 9/1/10 | 100,000 d | 100,000 |
New York City, GO Notes (LOC; JPMorgan Chase Bank) | 0.24 | 9/1/10 | 600,000 d | 600,000 |
New York City, GO Notes (LOC; Westdeutsche Landesbank) | 0.24 | 9/1/10 | 1,100,000 d | 1,100,000 |
82
BNY Mellon New York Intermediate Tax-Exempt Bond Fund (continued) | ||||
Short-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York (continued) | ||||
New York City Municipal Water Finance Authority, | ||||
Water and Sewer System Second General Resolution | ||||
Revenue (Liquidity Facility; Dexia Credit Locale) | 0.26 | 9/1/10 | 3,000,000 d | 3,000,000 |
New York City Transitional Finance Authority, Revenue (New York | ||||
City Recovery) (Liquidity Facility; Royal Bank of Canada) | 0.24 | 9/1/10 | 600,000 d | 600,000 |
New York City Trust for Cultural Resources, | ||||
Revenue, Refunding (Lincoln Center for the | ||||
Performing Arts, Inc.) (LOC; Bank of America) | 0.24 | 9/1/10 | 500,000 d | 500,000 |
New York State Dormitory Authority, Revenue | ||||
(University of Rochester) (LOC; JPMorgan Chase Bank) | 0.24 | 9/1/10 | 800,000 d | 800,000 |
Syracuse Industrial Development Agency, Civic Facility Revenue | ||||
(Syracuse University Project) (LOC; JPMorgan Chase Bank) | 0.25 | 9/1/10 | 400,000 d | 400,000 |
Total Short-Term Municipal Investments | ||||
(cost $13,700,000) | 13,700,000 | |||
Total Investments (cost $197,023,166) | 99.1% | 212,200,967 | ||
Cash and Receivables (Net) | .9% | 1,945,582 | ||
Net Assets | 100.0% | 214,146,549 |
a Security issued with a zero coupon. Income is recognized through the accretion of discount. |
b These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in |
escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date. |
c Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. |
d Variable rate demand note—rate shown is the interest rate in effect at August 31, 2010. Maturity date represents the next demand date, or the ultimate maturity date if earlier. |
The Funds 83
STATEMENT OF INVESTMENTS (continued)
Summary of Abbreviations | ||||||
ABAG | Association of Bay Area Governments | ACA | American Capital Access | |||
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company | |||
AMBAC | American Municipal Bond Assurance Corporation | ARRN | Adjustable Rate Receipt Notes | |||
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement | |||
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation | |||
CP | Commercial Paper | EDR | Economic Development Revenue | |||
EIR | Environmental Improvement Revenue | FGIC | Financial Guaranty Insurance Company | |||
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank | |||
FHLMC | Federal Home Loan Mortgage Corporation | FNMA | Federal National Mortgage Association | |||
GAN | Grant Anticipation Notes | GIC | Guaranteed Investment Contract | |||
GNMA | Government National Mortgage Association | GO | General Obligation | |||
HR | Hospital Revenue | IDB | Industrial Development Board | |||
IDC | Industrial Development Corporation | IDR | Industrial Development Revenue | |||
LOC | Letter of Credit | LOR | Limited Obligation Revenue | |||
LR | Lease Revenue | MFHR | Multi-Family Housing Revenue | |||
MFMR | Multi-Family Mortgage Revenue | PCR | Pollution Control Revenue | |||
PILOT | Payment in Lieu of Taxes | PUTTERS | Puttable Tax-Exempt Receipts | |||
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes | |||
RAW | Revenue Anticipation Warrants | RRR | Resources Recovery Revenue | |||
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement | |||
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue | |||
SONYMA | State of New York Mortgage Agency | SWDR | Solid Waste Disposal Revenue | |||
TAN | Tax Anticipation Notes | TAW | Tax Anticipation Warrants | |||
TRAN | Tax and Revenue Anticipation Notes | XLCA | XL Capital Assurance | |||
Summary of Combined Ratings (Unaudited) | ||||||
Fitch | or | Moody’s | or | Standard & Poor’s | Value (%)† | |
AAA | Aaa | AAA | 30.0 | |||
AA | Aa | AA | 45.9 | |||
A | A | A | 15.2 | |||
BBB | Baa | BBB | 3.9 | |||
F1 | MIG1/P1 | SP1/A1 | 4.8 | |||
Not Ratede | Not Ratede | Not Ratede | .2 | |||
100.0 |
† Based on total investments. |
e Securities which, while not rated by Fitch, Moody’s and Standard & Poor’s, have been determined by the Manager to be of comparable quality to those rated securities in which the |
fund may invest. |
See notes to financial statements.
84
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon Municipal Opportunities Fund | ||||
Coupon | Maturity | Principal | ||
Bonds and Notes—.2% | Rate (%) | Date | Amount ($) | Value ($) |
U.S. Government Agency; | ||||
Federal National Mortgage Association | ||||
(cost $800,914) | 1.25 | 7/29/13 | 800,000 a | 802,197 |
Long-Term Municipal Investments—86.3% | ||||
Alabama—1.6% | ||||
Jefferson County, Limited Obligation School Warrants | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.50 | 2/15/16 | 5,000,000 | 4,999,750 |
Tuscaloosa Public Educational Building Authority, Student | ||||
Housing Revenue (Ridgecrest Student Housing, LLC | ||||
University of Alabama Ridgecrest Residential Project) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 6.75 | 7/1/33 | 1,100,000 | 1,294,348 |
Arizona—2.2% | ||||
Arizona Board of Regents, Arizona State University | ||||
System Revenue (Polytechnic Campus Project) | 6.00 | 7/1/27 | 750,000 | 874,095 |
Phoenix Civic Improvement Corporation, | ||||
Junior Lien Airport Revenue | 5.00 | 7/1/40 | 7,500,000 b | 7,722,750 |
California—12.7% | ||||
California, GO (Various Purpose) | 6.50 | 4/1/33 | 1,000,000 | 1,174,120 |
California, GO (Various Purpose) | 6.00 | 4/1/38 | 2,250,000 | 2,512,620 |
California, GO (Various Purpose) | 5.50 | 3/1/40 | 2,500,000 | 2,688,525 |
California Educational Facilities Authority, | ||||
Revenue (California Institute of Technology) | 5.00 | 11/1/39 | 2,500,000 | 2,765,950 |
California Educational Facilities Authority, | ||||
Revenue (University of Southern California) | 5.25 | 10/1/38 | 1,000,000 | 1,107,040 |
California Health Facilities Financing Authority, | ||||
Revenue (Providence Health and Services) | 6.50 | 10/1/38 | 500,000 | 580,715 |
California Infrastructure and Economic Development Bank, Revenue | ||||
(California Independent System Operator Corporation Project) | 6.25 | 2/1/39 | 3,000,000 | 3,220,440 |
California Municipal Finance Authority, | ||||
Revenue (Eisenhower Medical Center) | 5.75 | 7/1/40 | 7,000,000 | 7,179,060 |
California Statewide Communities Development Authority, | ||||
Mortgage Revenue (Methodist Hospital of Southern | ||||
California Project) (Collateralized; FHA) | 6.75 | 2/1/38 | 2,500,000 | 2,852,075 |
Golden State Tobacco Securitization Corporation, | ||||
Tobacco Settlement Asset-Backed Bonds | 4.50 | 6/1/27 | 985,000 | 892,046 |
Los Angeles Community College District, GO | 5.25 | 8/1/39 | 5,000,000 | 5,445,350 |
Los Angeles Unified School District, GO | 5.00 | 1/1/34 | 1,000,000 | 1,051,310 |
M-S-R Energy Authority, Gas Revenue | 7.00 | 11/1/34 | 3,730,000 | 4,599,836 |
New Haven Unified School District, GO | ||||
(Insured; Assured Guaranty Municipal Corp.) | 0.00 | 8/1/32 | 6,500,000 c | 1,829,100 |
Northern California Gas Authority Number 1, Gas Project Revenue | 1.08 | 7/1/27 | 660,000 d | 442,002 |
Oceanside Unified School District, GO | ||||
(Insured; Assured Guaranty Municipal Corp.) | 0.00 | 8/1/35 | 8,000,000 c | 1,906,240 |
The Funds 85
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Municipal Opportunities Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
California (continued) | ||||
Sacramento County, Airport System Subordinate | ||||
and Passenger Facility Charges Grant Revenue | 6.00 | 7/1/35 | 3,000,000 | 3,292,020 |
San Diego Regional Building Authority, LR (County | ||||
Operations Center and Annex Redevelopment Project) | 5.38 | 2/1/36 | 2,000,000 | 2,180,640 |
San Diego Unified School District, GO | 0.00 | 7/1/25 | 4,000,000 c | 1,919,960 |
South Bayside Waste Management Authority, Solid Waste | ||||
Enterprise Revenue (Shoreway Environmental Center) | 6.00 | 9/1/36 | 1,000,000 | 1,068,400 |
Colorado—2.3% | ||||
Colorado Health Facilities Authority, | ||||
Revenue (Catholic Health Initiatives) | 6.00 | 10/1/23 | 500,000 | 584,645 |
Denver City and County, Airport System Revenue | ||||
(Insured: Assured Guaranty Municipal Corp. and | ||||
National Public Finance Guarantee Corp.) | 5.25 | 11/15/19 | 1,000,000 | 1,120,080 |
Northern Colorado Water Conservancy District Building | ||||
Corporation, COP (Lease Purchase Agreement) | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.50 | 10/1/16 | 500,000 | 537,385 |
Regional Transportation District, Revenue | ||||
(Denver Transit Partners Eagle P3 Project) | 6.00 | 1/15/41 | 6,500,000 | 6,820,320 |
Connecticut—.6% | ||||
Connecticut Health and Educational Facilities | ||||
Authority, Revenue (Wesleyan University Issue) | 5.00 | 7/1/39 | 2,000,000 | 2,192,720 |
Florida—3.8% | ||||
Brevard County Health Facilities Authority, | ||||
Health Facilities Revenue (Health First, Inc. Project) | 7.00 | 4/1/39 | 1,500,000 | 1,694,925 |
Florida Municipal Power Agency, All-Requirements | ||||
Power Supply Project Revenue | 6.25 | 10/1/31 | 1,000,000 | 1,174,910 |
Miami-Dade County, Aviation Revenue (Miami International Airport) | 5.50 | 10/1/41 | 1,200,000 | 1,269,912 |
Miami-Dade County Educational Facilities Authority, | ||||
Revenue (University of Miami Issue) (Insured; | ||||
Berkshire Hathaway Assurance Corporation) | 5.50 | 4/1/38 | 600,000 | 639,210 |
Miami-Dade County Expressway Authority, Toll System Revenue | 5.00 | 7/1/40 | 2,000,000 | 2,065,780 |
Miami-Dade County School Board, COP (Master | ||||
Lease Purchase Agreement) (Insured; AMBAC) | 5.00 | 11/1/25 | 5,000,000 | 5,213,650 |
Palm Beach County School Board, COP (Master Lease Purchase | ||||
Agreement) (Insured; National Public Finance Guarantee Corp.) | 5.00 | 8/1/12 | 500,000 | 538,615 |
Sarasota County Public Hospital District, HR | ||||
(Sarasota Memorial Hospital Project) | 5.63 | 7/1/39 | 2,000,000 | 2,129,360 |
Georgia—3.5% | ||||
Burke County Development Authority, PCR | ||||
(Oglethorpe Power Corporation Vogtle Project) | 7.00 | 1/1/23 | 1,000,000 | 1,218,080 |
Chatham County Hospital Authority, HR Improvement | ||||
(Memorial Health University Medical Center, Inc.) | 5.75 | 1/1/29 | 2,000,000 | 2,011,240 |
86
BNY Mellon Municipal Opportunities Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Georgia (continued) | ||||
Medical Center Hospital Authority, RAC (Columbus | ||||
Regional Healthcare System, Inc. Project) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 8/1/41 | 2,000,000 b | 2,038,300 |
Medical Center Hospital Authority, RAC (Columbus | ||||
Regional Healthcare System, Inc. Project) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 8/1/45 | 7,000,000 b | 7,100,870 |
Municipal Electric Authority of Georgia, GO | ||||
(Project One Subordinated Bonds) | 5.75 | 1/1/20 | 1,000,000 | 1,207,730 |
Hawaii—1.4% | ||||
Hawaii Department of Budget and Finance, Special | ||||
Purpose Revenue (Hawai’i Pacific Health Obligated Group) | 5.63 | 7/1/30 | 1,000,000 | 1,033,090 |
Hawaii Department of Budget and Finance, Special | ||||
Purpose Revenue (Hawai’i Pacific Health Obligated Group) | 5.75 | 7/1/40 | 1,100,000 | 1,129,832 |
Hawaii Department of Budget and Finance, Special Purpose Revenue | ||||
(Hawaiian Electric Company, Inc. and Subsidiary Projects) | 6.50 | 7/1/39 | 3,000,000 | 3,342,840 |
Illinois—.3% | ||||
Illinois Finance Authority, Revenue (The Art Institute of Chicago) | 6.00 | 3/1/38 | 1,000,000 | 1,107,220 |
Indiana—.4% | ||||
Whiting, Environmental Facilities Revenue | ||||
(BP Products North America, Inc.) | 2.80 | 6/2/14 | 1,570,000 | 1,542,729 |
Kentucky—.1% | ||||
Kentucky Property and Buildings Commission, | ||||
Revenue (Project Number 90) | 5.38 | 11/1/23 | 500,000 | 574,180 |
Louisiana—2.1% | ||||
Louisiana Citizens Property Insurance Corporation, Assessment | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 6.13 | 6/1/25 | 4,000,000 | 4,592,640 |
Louisiana Public Facilities Authority, Revenue | ||||
(CHRISTUS Health Obligated Group) | 6.00 | 7/1/29 | 1,000,000 | 1,092,270 |
New Orleans Aviation Board, Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 6.00 | 1/1/23 | 2,000,000 | 2,360,960 |
Maryland—10.8% | ||||
Maryland, GO (State and Local Facilities Loan) | 5.00 | 8/1/16 | 15,155,000 | 18,345,885 |
Maryland Economic Development | ||||
Corporation, EDR (Terminal Project) | 5.75 | 6/1/35 | 6,000,000 | 6,300,840 |
Maryland Health and Higher Educational Facilities | ||||
Authority, Revenue (Anne Arundel Health System Issue) | 6.75 | 7/1/29 | 2,000,000 | 2,374,620 |
Maryland Health and Higher Educational Facilities | ||||
Authority, Revenue (MedStar Health Issue) | ||||
(Insured; Berkshire Hathaway Assurance Corporation) | 5.25 | 11/15/14 | 10,000,000 e,f | 10,354,700 |
Maryland Health and Higher Educational Facilities Authority, Revenue | ||||
(The Johns Hopkins Health System Obligated Group Issue) | 5.00 | 5/15/40 | 2,500,000 | 2,649,725 |
The Funds 87
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Municipal Opportunities Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Maryland (continued) | ||||
Maryland Health and Higher Educational Facilities Authority, | ||||
Revenue (University of Maryland Medical System Issue) | 5.00 | 7/1/34 | 1,000,000 | 1,036,790 |
Maryland Health and Higher Educational Facilities Authority, | ||||
Revenue (University of Maryland Medical System Issue) | 5.13 | 7/1/39 | 250,000 | 260,530 |
Massachusetts—2.6% | ||||
Massachusetts Development Finance Agency, | ||||
SWDR (Dominion Energy Brayton Point Issue) | 5.75 | 5/1/19 | 2,000,000 | 2,225,440 |
Massachusetts Development Finance Agency, | ||||
SWDR (Waste Management, Inc. Project) | 5.50 | 5/1/14 | 1,000,000 | 1,092,510 |
Massachusetts Health and Educational Facilities Authority, | ||||
Revenue (Isabella Stewart Gardner Museum Issue) | 5.00 | 5/1/25 | 2,305,000 | 2,541,516 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Simmons College Issue) | 7.50 | 10/1/22 | 500,000 | 624,535 |
Massachusetts Health and Educational Facilities | ||||
Authority, Revenue (Simmons College Issue) | 8.00 | 10/1/39 | 2,000,000 | 2,315,780 |
Massachusetts Housing Finance Agency, SFHR | 6.00 | 12/1/37 | 1,000,000 | 1,060,590 |
Massachusetts Water Pollution Abatement Trust, | ||||
Water Pollution Abatement Revenue (MWRA Program) | 5.75 | 8/1/29 | 50,000 | 50,200 |
Michigan—.3% | ||||
Detroit, Water Supply System Second Lien Revenue | ||||
(Insured; Assured Guaranty Municipal Corp.) | 5.00 | 7/1/22 | 950,000 | 1,001,471 |
Minnesota—8.9% | ||||
Minneapolis, Health Care System | ||||
Revenue (Fairview Health Services) | 6.63 | 11/15/28 | 1,000,000 | 1,160,000 |
Minnesota, GO (Various Purpose) | 5.00 | 8/1/20 | 10,000,000 | 12,543,100 |
Minnesota, GO (Various Purpose) | 5.00 | 8/1/23 | 17,125,000 | 20,819,034 |
Mississippi—.5% | ||||
Mississippi Business Finance Corporation, Gulf Opportunity Zone | ||||
IDR (Northrop Grumman Ship Systems, Inc. Project) | 4.55 | 12/1/28 | 500,000 | 490,485 |
Warren County, Gulf Opportunity Zone Revenue | ||||
(International Paper Company Projects) | 5.80 | 5/1/34 | 1,500,000 | 1,587,450 |
Missouri—.1% | ||||
Cape Girardeau County Industrial Development Authority, | ||||
Health Facilities Revenue (Saint Francis Medical Center) | 5.50 | 6/1/34 | 385,000 | 393,589 |
New Jersey—1.8% | ||||
New Jersey, COP (Equipment Lease Purchase Agreement) | 5.25 | 6/15/28 | 1,000,000 | 1,085,620 |
New Jersey Educational Facilities Authority, Revenue | ||||
(University of Medicine and Dentistry of New Jersey Issue) | 7.50 | 12/1/32 | 2,000,000 | 2,354,520 |
New Jersey Transportation Trust Fund | ||||
Authority (Transportation System) | 0.00 | 12/15/29 | 5,000,000 c | 1,882,100 |
New Jersey Transportation Trust Fund | ||||
Authority (Transportation System) | 0.00 | 12/15/30 | 5,000,000 c | 1,754,100 |
88
BNY Mellon Municipal Opportunities Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York—5.3% | ||||
Albany Industrial Development Agency, Civic Facility | ||||
Revenue (Saint Peter’s Hospital of the City of Albany Project) | 5.75 | 11/15/22 | 4,225,000 | 4,539,382 |
Brooklyn Arena Local Development Corporation, | ||||
PILOT Revenue (Barclays Center Project) | 6.00 | 7/15/30 | 5,000,000 | 5,266,850 |
Metropolitan Transportation Authority, Transportation Revenue | 6.50 | 11/15/28 | 500,000 | 600,620 |
New York City, GO | 6.00 | 10/15/23 | 500,000 | 617,750 |
New York City Industrial Development Agency, PILOT | ||||
Revenue (Queens Baseball Stadium Project) | ||||
(Insured; Assured Guaranty Municipal Corp.) | 6.50 | 1/1/46 | 500,000 | 568,070 |
New York City Industrial Development Agency, PILOT | ||||
Revenue (Yankee Stadium Project) (Insured; | ||||
Assured Guaranty Municipal Corp.) | 7.00 | 3/1/49 | 1,300,000 | 1,541,189 |
New York City Municipal Water Finance | ||||
Authority, Water and Sewer System Revenue | 5.75 | 6/15/40 | 1,000,000 | 1,153,280 |
New York City Municipal Water Finance Authority, | ||||
Water and Sewer System Second General Resolution Revenue | 5.50 | 6/15/40 | 1,500,000 | 1,709,985 |
New York State Dormitory Authority, | ||||
Revenue (The Rockefeller University) | 5.00 | 7/1/41 | 3,000,000 b | 3,312,390 |
New York State Dormitory Authority, | ||||
State Personal Income Tax Revenue (Education) | 5.75 | 3/15/36 | 1,000,000 | 1,161,220 |
North Carolina—.9% | ||||
North Carolina Eastern Municipal | ||||
Power Agency, Power System Revenue | 5.00 | 1/1/26 | 2,500,000 | 2,708,725 |
North Carolina Eastern Municipal Power Agency, Power System | ||||
Revenue (Insured; Assured Guaranty Municipal Corp.) | 6.00 | 1/1/19 | 250,000 | 287,205 |
North Carolina Eastern Municipal Power | ||||
Agency, Power System Revenue (Insured; FGIC) | 5.50 | 1/1/17 | 500,000 | 501,200 |
Ohio—.3% | ||||
Montgomery County, Revenue (Catholic Health Initiatives) | 6.25 | 10/1/33 | 1,000,000 | 1,157,270 |
Oregon—.6% | ||||
Oregon Health and Science University, Revenue | 5.75 | 7/1/39 | 2,000,000 | 2,148,740 |
Other State—9.2% | ||||
Kansas Department of Transportation, | ||||
Highway Revenue (Build America Bonds) | 4.60 | 9/1/35 | 7,000,000 b | 7,361,830 |
Los Angeles Community College District, GO (Build America Bonds) | 6.75 | 8/1/49 | 15,000,000 | 16,995,900 |
Metropolitan Transportation Authority of New York, | ||||
Transportation Revenue (Build America Bonds) | 6.69 | 11/15/40 | 10,000,000 | 11,132,900 |
Pennsylvania—2.0% | ||||
Delaware County Authority, Revenue (Villanova University) | 5.25 | 12/1/31 | 1,940,000 | 2,138,462 |
Delaware River Port Authority, Revenue | 5.00 | 1/1/40 | 3,000,000 | 3,145,770 |
Philadelphia, Gas Works Revenue | 5.25 | 8/1/40 | 2,500,000 | 2,561,850 |
The Funds 89
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Municipal Opportunities Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Texas—2.9% | ||||
Dallas, GO | 5.00 | 2/15/27 | 515,000 | 578,407 |
Forney Independent School District, Unlimited Tax School Building | ||||
Bonds (Permanent School Fund Guarantee Program) | 5.75 | 8/15/33 | 1,000,000 | 1,156,930 |
Harris County Health Facilities Development | ||||
Corporation, HR (Memorial Hermann Healthcare System) | 7.00 | 12/1/27 | 1,000,000 | 1,168,360 |
Houston, Airport System Senior Lien Revenue | 5.50 | 7/1/39 | 1,000,000 | 1,095,740 |
Texas Private Activity Bond Surface Transportation | ||||
Corporation, Senior Lien Revenue (LBJ Infrastructure | ||||
Group LLC IH-635 Managed Lanes Project) | 7.00 | 6/30/40 | 1,000,000 | 1,092,790 |
Texas Public Finance Authority Charter School Finance | ||||
Corporation, Education Revenue (Cosmos Foundation, Inc.) | 6.20 | 2/15/40 | 5,900,000 | 6,130,631 |
Washington—2.2% | ||||
FYI Properties, LR (State of Washington | ||||
Department of Information Services Project) | 5.50 | 6/1/39 | 5,000,000 | 5,414,400 |
Port of Seattle, Intermediate Lien Revenue | 5.00 | 6/1/40 | 3,000,000 | 3,143,700 |
Wisconsin—1.7% | ||||
Southeast Wisconsin Professional Baseball Park District, Sales Tax | ||||
Revenue (Insured; National Public Finance Guarantee Corp.) | 5.50 | 12/15/23 | 1,000,000 | 1,218,420 |
Wisconsin, General Fund Annual Appropriation Bonds | 5.38 | 5/1/25 | 1,000,000 | 1,154,840 |
Wisconsin, General Fund Annual Appropriation Bonds | 5.75 | 5/1/33 | 1,500,000 | 1,708,830 |
Wisconsin, General Fund Annual Appropriation Bonds | 6.00 | 5/1/33 | 1,000,000 | 1,163,110 |
Wisconsin, General Fund Annual Appropriation Bonds | 6.00 | 5/1/36 | 1,000,000 | 1,154,310 |
U.S. Related—5.2% | ||||
Government of Guam, LOR (Section 30) | 5.75 | 12/1/34 | 1,000,000 | 1,054,160 |
Guam Government Department of Education, | ||||
COP (John F. Kennedy High School Project) | 6.63 | 12/1/30 | 1,000,000 b | 1,014,490 |
Guam Government Department of Education, | ||||
COP (John F. Kennedy High School Project) | 6.88 | 12/1/40 | 1,000,000 b | 1,020,630 |
Puerto Rico Electric Power Authority, Power Revenue | ||||
(Insured; National Public Finance Guarantee Corp.) | 5.00 | 7/1/17 | 750,000 | 823,897 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.75 | 8/1/32 | 1,000,000 g | 864,160 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0/6.25 | 8/1/33 | 750,000 g | 526,312 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0.00 | 8/1/34 | 5,000,000 c | 1,201,950 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 0.00 | 8/1/36 | 2,000,000 c | 420,360 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 5.38 | 8/1/39 | 1,500,000 | 1,584,450 |
Puerto Rico Sales Tax Financing Corporation, | ||||
Sales Tax Revenue (First Subordinate Series) | 6.00 | 8/1/42 | 3,870,000 | 4,250,576 |
Virgin Islands Public Finance Authority, | ||||
Revenue (Virgin Islands Matching Fund Loan Note) | 5.00 | 10/1/29 | 5,000,000 | 5,163,800 |
90
BNY Mellon Municipal Opportunities Fund (continued) | ||||
Long-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
U.S. Related (continued) | ||||
Virgin Islands Public Finance Authority, Subordinated Revenue | ||||
(Virgin Islands Matching Fund Loan Note—Diageo Project) | 6.75 | 10/1/37 | 2,000,000 | 2,266,660 |
Total Long-Term Municipal Investments | ||||
(cost $306,790,279) | 333,219,516 | |||
Short-Term Municipal Investments—22.4% | ||||
Colorado—2.7% | ||||
Colorado Educational and Cultural Facilities Authority, | ||||
Revenue (National Jewish Federation Bond | ||||
Program) (LOC; Northern Trust Company) | 0.26 | 9/1/10 | 5,200,000 h | 5,200,000 |
Colorado Health Facilities Authority, HR, Refunding (North Colorado | ||||
Medical Center, Inc. Project) (LOC; Wells Fargo Bank) | 0.25 | 9/1/10 | 1,000,000 h | 1,000,000 |
Pitkin County, IDR, Refunding (Aspen Skiing | ||||
Company Project) (LOC; JPMorgan Chase Bank) | 0.26 | 9/1/10 | 4,300,000 h | 4,300,000 |
Florida—1.5% | ||||
Jacksonville Economic Development Commission, HR (Shands | ||||
Jacksonville Medical Center, Inc. Project) (LOC; Wells Fargo Bank) | 0.25 | 9/1/10 | 1,900,000 h | 1,900,000 |
Orange County Health Facilities Authority, HR (Orlando Regional | ||||
Healthcare System) (Insured; Assured Guaranty Municipal | ||||
Corp. and Liquidity Facility; Dexia Credit Locale) | 0.30 | 9/1/10 | 3,100,000 h | 3,100,000 |
Orange County School Board, COP (Master Lease | ||||
Purchase Agreement) (LOC; Wachovia Bank) | 0.25 | 9/1/10 | 700,000 h | 700,000 |
Illinois—4.4% | ||||
Chicago Board of Education, Unlimited Tax GO Notes, | ||||
Refunding (Dedicated Revenues) (LOC; U.S. Bank NA) | 0.25 | 9/1/10 | 3,000,000 h | 3,000,000 |
Illinois Finance Authority, Revenue (Resurrection | ||||
Health Care) (LOC; JPMorgan Chase Bank) | 0.28 | 9/1/10 | 4,220,000 h | 4,220,000 |
Romeoville, Revenue (Lewis University) | ||||
(LOC; JPMorgan Chase Bank) | 0.26 | 9/1/10 | 9,800,000 h | 9,800,000 |
Massachusetts—3.3% | ||||
Massachusetts, Consolidated Loan | ||||
(Liquidity Facility; Dexia Credit Locale) | 0.31 | 9/1/10 | 7,400,000 h | 7,400,000 |
Massachusetts Water Resources Authority, | ||||
Multi-Modal Subordinated General Revenue, | ||||
Refunding (LOC; Landesbank Baden-Wurttemberg) | 0.25 | 9/1/10 | 5,200,000 h | 5,200,000 |
Montana—1.5% | ||||
Helena, Higher Education Revenue | ||||
(Carroll College Issue) (LOC; U.S. Bank NA) | 0.25 | 9/1/10 | 5,900,000 h | 5,900,000 |
Nevada—.9% | ||||
Las Vegas, GO Notes (LOC; Lloyds Bank PLC) | 0.25 | 9/1/10 | 3,450,000 h | 3,450,000 |
New York—.9% | ||||
New York City Municipal Water Finance Authority, Water and | ||||
Sewer System Revenue (Liquidity Facility; Dexia Credit Locale) | 0.26 | 9/1/10 | 3,500,000 h | 3,500,000 |
The Funds 91
STATEMENT OF INVESTMENTS (continued)
BNY Mellon Municipal Opportunities Fund (continued) | ||||
Short-Term Municipal | Coupon | Maturity | Principal | |
Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Oregon—1.2% | ||||
Medford Hospital Facilities Authority, Revenue | ||||
(Cascade Manor Project) (LOC; KBC Bank) | 0.28 | 9/1/10 | 1,095,000 h | 1,095,000 |
Multnomah County Hospital Facilities Authority, Revenue, | ||||
Refunding (Holladay Park Plaza Project) (LOC; Allied Irish Banks) | 1.15 | 9/1/10 | 3,510,000 h | 3,510,000 |
Pennsylvania—.2% | ||||
Lancaster County Hospital Authority, Health Center | ||||
Revenue (Masonic Homes Project) (LOC; Wachovia Bank) | 0.25 | 9/1/10 | 100,000 h | 100,000 |
Lancaster County Hospital Authority, Health | ||||
System Revenue (The Lancaster General Hospital | ||||
Refunding Project) (LOC; Bank of America) | 0.29 | 9/1/10 | 700,000 h | 700,000 |
Tennessee—2.1% | ||||
Montgomery County Public Building Authority, Pooled Financing | ||||
Revenue (Tennessee County Loan Pool) (LOC; Bank of America) | 0.27 | 9/1/10 | 2,650,000 h | 2,650,000 |
Sevier County Public Building Authority, Local | ||||
Government Public Improvement Revenue (LOC; KBC Bank) | 0.30 | 9/1/10 | 5,505,000 h | 5,505,000 |
Texas—3.1% | ||||
Dallas Performing Arts Cultural Facilities Corporation, | ||||
Cultural Facility Revenue (Dallas Center for the Performing | ||||
Arts Foundation, Inc. Project) (LOC; Bank of America) | 0.27 | 9/1/10 | 10,750,000 h | 10,750,000 |
Harris County Health Facilities Development Corporation, | ||||
HR (Baylor College of Medicine) (LOC; Wachovia Bank) | 0.25 | 9/1/10 | 1,200,000 h | 1,200,000 |
Vermont—.3% | ||||
Vermont Educational and Health Buildings Financing Agency, | ||||
Revenue (Brattleboro Memorial Hospital Project) (LOC; TD Bank) | 0.25 | 9/1/10 | 1,000,000 h | 1,000,000 |
Vermont Educational and Health Buildings Financing | ||||
Agency, Revenue (Northeastern Vermont Regional | ||||
Hospital Project) (LOC; TD Bank) | 0.25 | 9/1/10 | 200,000 h | 200,000 |
Wisconsin—.3% | ||||
Wisconsin Health and Educational Facilities Authority, Revenue | ||||
(Riverview Hospital Association) (LOC; U.S. Bank NA) | 0.25 | 9/1/10 | 1,200,000 h | 1,200,000 |
Total Short-Term Municipal Investments | ||||
(cost $86,580,000) | 86,580,000 | |||
Total Investments (cost $394,171,193) | 108.9% | 420,601,713 | ||
Liabilities, Less Cash and Receivables | (8.9%) | (34,511,739) | ||
Net Assets | 100.0% | 386,089,974 |
a On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Federal National Mortgage Association and Federal Home Loan Mortgage Corporation into |
conservatorship with FHFA as the conservator.As such, the FHFA will oversee the continuing affairs of these companies. |
b Purchased on a delayed delivery basis. |
c Security issued with a zero coupon. Income is recognized through the accretion of discount. |
d Variable rate security—interest rate subject to periodic change. |
e Collateral for floating rate borrowings. |
f Security exempt from registration under Rule 144A of the Securities Act of 1933.This security may be resold in transactions exempt from registration, normally to qualified |
institutional buyers.At August 31, 2010, this security had a market value of $10,354,700 or 2.7% of net assets. |
g Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. |
h Variable rate demand note—rate shown is the interest rate in effect at August 31, 2010. Maturity date represents the next demand date, or the ultimate maturity date if earlier. |
92
Summary of Abbreviations | ||||||
ABAG | Association of Bay Area Governments | ACA | American Capital Access | |||
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company | |||
AMBAC | American Municipal Bond Assurance Corporation | ARRN | Adjustable Rate Receipt Notes | |||
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement | |||
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation | |||
CP | Commercial Paper | EDR | Economic Development Revenue | |||
EIR | Environmental Improvement Revenue | FGIC | Financial Guaranty Insurance Company | |||
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank | |||
FHLMC | Federal Home Loan Mortgage Corporation | FNMA | Federal National Mortgage Association | |||
GAN | Grant Anticipation Notes | GIC | Guaranteed Investment Contract | |||
GNMA | Government National Mortgage Association | GO | General Obligation | |||
HR | Hospital Revenue | IDB | Industrial Development Board | |||
IDC | Industrial Development Corporation | IDR | Industrial Development Revenue | |||
LOC | Letter of Credit | LOR | Limited Obligation Revenue | |||
LR | Lease Revenue | MFHR | Multi-Family Housing Revenue | |||
MFMR | Multi-Family Mortgage Revenue | PCR | Pollution Control Revenue | |||
PILOT | Payment in Lieu of Taxes | PUTTERS | Puttable Tax-Exempt Receipts | |||
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes | |||
RAW | Revenue Anticipation Warrants | RRR | Resources Recovery Revenue | |||
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement | |||
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue | |||
SONYMA | State of New York Mortgage Agency | SWDR | Solid Waste Disposal Revenue | |||
TAN | Tax Anticipation Notes | TAW | Tax Anticipation Warrants | |||
TRAN | Tax and Revenue Anticipation Notes | XLCA | XL Capital Assurance | |||
Summary of Combined Ratings (Unaudited) | ||||||
Fitch | or | Moody’s | or | Standard & Poor’s | Value (%)† | |
AAA | Aaa | AAA | 24.7 | |||
AA | Aa | AA | 18.9 | |||
A | A | A | 22.0 | |||
BBB | Baa | BBB | 13.7 | |||
B | B | B | .5 | |||
F1 | MIG1/P1 | SP1/A1 | 18.8 | |||
Not Ratedi | Not Ratedi | Not Ratedi | 1.4 | |||
100.0 |
† Based on total investments. |
i Securities which, while not rated by Fitch, Moody’s and Standard & Poor’s, have been determined by the Manager to be of comparable quality to those rated securities in which the |
fund may invest. |
See notes to financial statements.
The Funds | 93 |
STATEMENT OF FINANCIAL FUTURES
August 31, 2010
Market Value | Unrealized | |||
BNY Mellon | Covered by | (Depreciation) | ||
Municipal Opportunities Fund | Contracts | Contracts ($) | Expiration | at 8/31/2010 ($) |
Financial Futures Short | ||||
U.S. Treasury 5 Year Notes | 150 | (18,047,813) | December 2010 | (116,953) |
U.S. Treasury 10 Year Notes | 250 | (31,406,250) | December 2010 | (312,500) |
U.S. Treasury Long Bond | 300 | (40,509,375) | December 2010 | (815,625) |
(1,245,078) |
See notes to financial statements.
94
STATEMENTS OF ASSETS AND LIABILITIES
August 31, 2010
BNY Mellon | BNY Mellon | BNY Mellon | BNY Mellon | |
National | National | Pennsylvania | Massachusetts | |
Intermediate | Short-Term | Intermediate | Intermediate | |
Municipal Bond Fund | Municipal Bond Fund | Municipal Bond Fund | Municipal Bond Fund | |
Assets ($): | ||||
Investments in securities— | ||||
See Statement of Investments† | 1,676,720,990 | 1,070,249,635 | 508,132,280 | 411,727,859 |
Cash | — | 460,286 | — | — |
Interest receivable | 18,551,735 | 10,148,549 | 5,817,769 | 4,204,670 |
Receivable for shares of Beneficial | ||||
Interest subscribed | 1,273,103 | 1,208,400 | 127,500 | 560,300 |
Prepaid expenses and other receivables | 33,047 | 22,298 | 21,000 | 27,916 |
1,696,578,875 | 1,082,089,168 | 514,098,549 | 416,520,745 | |
Liabilities ($): | ||||
Due to The Dreyfus Corporation | ||||
and affiliates—Note 4(c) | 516,244 | 311,821 | 225,872 | 129,917 |
Due to Administrator—Note 4(a) | 175,436 | 110,090 | 54,143 | 43,690 |
Cash overdraft due to Custodian | 3,141,257 | — | 1,470,760 | 381,547 |
Payable for investment securities purchased | 19,397,553 | 11,906,999 | 1,059,090 | — |
Payable for shares of Beneficial Interest redeemed | 1,160,045 | 6,670,114 | 946,729 | 68,763 |
Accrued expenses and other liabilities | 133,441 | 49,477 | 65,507 | 67,077 |
24,523,976 | 19,048,501 | 3,822,101 | 690,994 | |
Net Assets ($) | 1,672,054,899 | 1,063,040,667 | 510,276,448 | 415,829,751 |
Composition of Net Assets ($): | ||||
Paid—in capital | 1,555,756,082 | 1,045,973,729 | 480,598,472 | 385,439,796 |
Accumulated net realized gain (loss) on investments | 8,682,765 | (1,642,141) | (2,516,947) | 2,003,705 |
Accumulated net unrealized appreciation | ||||
(depreciation) on investments | 107,616,052 | 18,709,079 | 32,194,923 | 28,386,250 |
Net Assets ($) | 1,672,054,899 | 1,063,040,667 | 510,276,448 | 415,829,751 |
Net Asset Value Per Share | ||||
Class M Shares | ||||
Net Assets ($) | 1,638,004,026 | 1,060,684,975 | 500,891,865 | 407,666,569 |
Shares Outstanding | 119,136,258 | 81,559,695 | 38,662,262 | 30,446,256 |
Net Asset Value Per Share ($) | 13.75 | 13.01 | 12.96 | 13.39 |
Investor Shares | ||||
Net Assets ($) | 33,931,153 | 2,355,692 | 9,384,583 | 8,143,166 |
Shares Outstanding | 2,470,500 | 181,349 | 725,212 | 608,229 |
Net Asset Value Per Share ($) | 13.73 | 12.99 | 12.94 | 13.39 |
Dreyfus Premier Shares | ||||
Net Assets ($) | 119,720 | — | — | 20,016 |
Shares Outstanding | 8,713 | — | — | 1,491 |
Net Asset Value Per Share ($) | 13.74 | — | — | 13.42 |
† Investments at cost ($) | 1,569,104,938 | 1,051,540,556 | 475,937,357 | 383,341,609 |
See notes to financial statements. |
The Funds | 95 |
STATEMENTS OF ASSETS AND LIABILITIES (continued)
BNY Mellon | ||
New York | BNY Mellon | |
Intermediate | Municipal | |
Tax-Exempt Bond Fund | Opportunities Fund | |
Assets ($): | ||
Investments in securities—See Statement of Investments† | 212,200,967 | 420,601,713 |
Cash on Initial Margin—Note 5 | — | 1,220,000 |
Interest receivable | 2,347,588 | 2,811,238 |
Receivable for investment securites sold | — | 2,418,478 |
Receivable for shares of Beneficial Interest subscribed | 165,000 | — |
Unrealized appreciation on swap contracts—Note 5 | — | 1,526 |
Prepaid expenses and other receivables | 18,024 | 23,118 |
214,731,579 | 427,076,073 | |
Liabilities ($): | ||
Due to The Dreyfus Corporation and affiliates—Note 4(c) | 74,151 | 166,064 |
Due to Administrator—Note 4(a) | 22,595 | 40,550 |
Payable for investment securities purchased | — | 30,966,372 |
Payable for floating rate notes issued—Note 5 | — | 7,500,000 |
Cash overdraft due to Custodian | 418,377 | 760,131 |
Payable for shares of Beneficial Interest redeemed | 9,697 | 257 |
Swaps premium paid—Note 5 | — | 871,548 |
Payable for future variation margin—Note 5 | — | 407,969 |
Unrealized depreciation on swap contracts—Note 5 | — | 198,595 |
Interest and expense payable related | ||
to floating rate notes issued—Note 5 | — | 12,319 |
Accrued expenses and other liabilities | 60,210 | 62,294 |
585,030 | 40,986,099 | |
Net Assets ($) | 214,146,549 | 386,089,974 |
Composition of Net Assets ($): | ||
Paid—in capital | 198,763,342 | 359,908,559 |
Accumulated net realized gain (loss) on investments | 205,406 | 1,193,042 |
Accumulated net unrealized appreciation (depreciation) | ||
on investments [including ($1,245,078) (depreciation) | ||
on financial futures for BNY Mellon Municipal Opportunities Fund] | 15,177,801 | 24,988,373 |
Net Assets ($) | 214,146,549 | 386,089,974 |
Net Asset Value Per Share | ||
Class M Shares | ||
Net Assets ($) | 196,794,523 | 384,933,000 |
Shares Outstanding | 16,960,265 | 30,110,922 |
Net Asset Value Per Share ($) | 11.60 | 12.78 |
Investor Shares | ||
Net Assets ($) | 17,352,026 | 1,156,974 |
Shares Outstanding | 1,494,564 | 90,486 |
Net Asset Value Per Share ($) | 11.61 | 12.79 |
† Investments at cost ($) | 197,023,166 | 394,171,193 |
See notes to financial statements. |
96
STATEMENT OF OPERATIONS
Year Ended August 31, 2010
BNY Mellon | BNY Mellon | BNY Mellon | BNY Mellon | |
National | National | Pennsylvania | Massachusetts | |
Intermediate | Short-Term | Intermediate | Intermediate | |
Municipal Bond Fund | Municipal Bond Fund | Municipal Bond Fund | Municipal Bond Fund | |
Investment Income ($): | ||||
Interest Income | 66,103,966 | 18,652,104 | 22,283,453 | 16,090,067 |
Expenses: | ||||
Investment advisory fee—Note 4(a) | 5,434,044 | 3,094,067 | 2,565,074 | 1,421,688 |
Administration fee—Note 4(a) | 1,949,324 | 1,109,648 | 644,137 | 510,010 |
Custodian fees—Note 4(c) | 103,982 | 59,348 | 39,994 | 31,329 |
Trustees’ fees and expenses—Note 4(d) | 84,841 | 42,341 | 27,902 | 23,114 |
Shareholder servicing costs—Note 4(c) | 77,776 | 3,447 | 15,954 | 21,656 |
Registration fees | 55,673 | 64,636 | 27,960 | 38,656 |
Auditing fees | 24,369 | 25,750 | 32,901 | 30,816 |
Loan commitment fees—Note 3 | 17,740 | 5,580 | 6,642 | 5,092 |
Legal fees | 16,890 | 10,242 | 13,744 | 6,717 |
Prospectus and shareholders’ reports | 11,225 | 4,187 | 3,495 | 6,928 |
Distribution fees—Note 4(b) | 725 | — | — | 96 |
Miscellaneous | 96,375 | 57,386 | 45,587 | 54,937 |
Total Expenses | 7,872,964 | 4,476,632 | 3,423,390 | 2,151,039 |
Less—reduction in fees | ||||
due to earnings credits—Note 2(b) | (19) | — | (1) | (6) |
Net Expenses | 7,872,945 | 4,476,632 | 3,423,389 | 2,151,033 |
Investment Income—Net | 58,231,021 | 14,175,472 | 18,860,064 | 13,939,034 |
Realized and Unrealized Gain (Loss) | ||||
on Investments—Note 5 ($): | ||||
Net realized gain (loss) on investments | 14,257,503 | 114,332 | 855,034 | 4,074,893 |
Net realized gain (loss) on financial futures | (4,628,212) | (538,615) | (1,409,819) | (1,101,788) |
Net Realized Gain (Loss) | 9,629,291 | (424,283) | (554,785) | 2,973,105 |
Net unrealized appreciation | ||||
(depreciation) on investments | 64,308,460 | 13,173,941 | 22,719,500 | 13,368,680 |
Net unrealized appreciation | ||||
(depreciation) on financial futures | 191,938 | — | 75,219 | 57,062 |
Net Unrealized Appreciation (Depreciation) | 64,500,398 | 13,173,941 | 22,794,719 | 13,425,742 |
Net Realized and Unrealized | ||||
Gain (Loss) on Investments | 74,129,689 | 12,749,658 | 22,239,934 | 16,398,847 |
Net Increase in Net Assets | ||||
Resulting from Operations | 132,360,710 | 26,925,130 | 41,099,998 | 30,337,881 |
See notes to financial statements. |
The Funds | 97 |
STATEMENT OF OPERATIONS (continued)
BNY Mellon | BNY Mellon | |
New York Intermediate | Municipal | |
Tax-Exempt Bond Fund | Opportunities Fund | |
Investment Income ($): | ||
Interest Income | 7,544,592 | 8,953,598 |
Expenses: | ||
Investment advisory fee—Note 4(a) | 962,494 | 928,002 |
Administration fee—Note 4(a) | 241,688 | 232,951 |
Registration fees | 46,980 | 44,128 |
Shareholder servicing costs—Note 4(c) | 46,596 | 3,119 |
Auditing fees | 30,665 | 30,657 |
Custodian fees—Note 4(c) | 15,190 | 16,316 |
Prospectus and shareholders’ reports | 14,889 | 4,427 |
Trustees’ fees and expenses—Note 4(d) | 11,941 | 9,244 |
Legal fees | 2,932 | 6,369 |
Loan commitment fees—Note 3 | 1,862 | 1,764 |
Interest and expense for floating rate notes issued—Note 5 | — | 12,219 |
Miscellaneous | 45,901 | 27,683 |
Total Expenses | 1,421,138 | 1,316,879 |
Less—reduction in investment advisory fee | ||
due to undertaking—Note 4(a) | (240,614) | (1,423) |
Less—reduction in fees due to earnings credits—Note 2(b) | (22) | — |
Net Expenses | 1,180,502 | 1,315,456 |
Investment Income—Net | 6,364,090 | 7,638,142 |
Realized and Unrealized Gain (Loss) on Investments—Note 5 ($): | ||
Net realized gain (loss) on investments | 180,657 | 6,371,897 |
Net realized gain (loss) on financial futures | — | (3,777,087) |
Net realized gain (loss) on swap transactions | — | 489 |
Net Realized Gain (Loss) | 180,657 | 2,595,299 |
Net unrealized appreciation (depreciation) on investments | 7,406,706 | 16,371,003 |
Net unrealized appreciation (depreciation) on financial futures | — | (1,180,234) |
Net unrealized appreciation (depreciation) on swap transactions | — | (197,069) |
Net Unrealized Appreciation (Depreciation) | 7,406,706 | 14,993,700 |
Net Realized and Unrealized Gain (Loss) on Investments | 7,587,363 | 17,588,999 |
Net Increase in Net Assets Resulting from Operations | 13,951,453 | 25,227,141 |
See notes to financial statements. |
98
STATEMENT OF CHANGES IN NET ASSETS
BNY Mellon National Intermediate | BNY Mellon National Short-Term | |||
Municipal Bond Fund | Municipal Bond Fund | |||
Year Ended August 31, | Year Ended August 31, | |||
2010 | 2009 | 2010 | 2009 | |
Operations ($): | ||||
Investment income—net | 58,231,021 | 51,439,713 | 14,175,472 | 6,792,496 |
Net realized gain (loss) on investments | 9,629,291 | (1,708,007) | (424,283) | (249,037) |
Net unrealized appreciation (depreciation) on investments | 64,500,398 | 27,999,266 | 13,173,941 | 4,588,956 |
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 132,360,710 | 77,730,972 | 26,925,130 | 11,132,415 |
Dividends to Shareholders from ($): | ||||
Investment income—net: | ||||
Class M Shares | (56,871,848) | (50,464,046) | (14,102,984) | (6,762,108) |
Investor Shares | (1,053,314) | (867,184) | (19,519) | (41,553) |
Dreyfus Premier Shares | (4,354) | (5,392) | — | — |
Net realized gain on investments: | ||||
Class M Shares | — | (716,062) | — | — |
Investor Shares | — | (13,330) | — | — |
Dreyfus Premier Shares | — | (93) | — | — |
Total Dividends | (57,929,516) | (52,066,107) | (14,122,503) | (6,803,661) |
Beneficial Interest Transactions ($): | ||||
Net proceeds from shares sold: | ||||
Class M Shares | 508,110,745 | 371,564,559 | 1,122,401,893 | 500,950,361 |
Investor Shares | 12,382,325 | 11,902,232 | 5,081,076 | 2,651,537 |
Dreyfus Premier Shares | 783 | 536 | — | — |
Net assets received in connection | ||||
with reorganization—Note 1 | — | 211,751,479 | — | — |
Dividends reinvested: | ||||
Class M Shares | 6,841,545 | 6,367,289 | 3,498,579 | 1,468,864 |
Investor Shares | 735,891 | 650,851 | 17,320 | 22,049 |
Dreyfus Premier Shares | 1,064 | 750 | — | — |
Cost of shares redeemed: | ||||
Class M Shares | (316,873,597) | (292,337,140) | (614,591,338) | (138,362,528) |
Investor Shares | (7,014,088) | (8,921,567) | (4,186,369) | (1,947,619) |
Dreyfus Premier Shares | (54,912) | (14,589) | — | — |
Increase (Decrease) in Net Assets from | ||||
Beneficial Interest Transactions | 204,129,756 | 300,964,400 | 512,221,161 | 364,782,664 |
Total Increase (Decrease) in Net Assets | 278,560,950 | 326,629,265 | 525,023,788 | 369,111,418 |
Net Assets ($): | ||||
Beginning of Period | 1,393,493,949 | 1,066,864,684 | 538,016,879 | 168,905,461 |
End of Period | 1,672,054,899 | 1,393,493,949 | 1,063,040,667 | 538,016,879 |
The Funds 99
STATEMENT OF CHANGES IN NET ASSETS (continued)
BNY Mellon National Intermediate | BNY Mellon National Short-Term | |||
Municipal Bond Fund | Municipal Bond Fund | |||
Year Ended August 31, | Year Ended August 31, | |||
2010 | 2009 | 2010 | 2009 | |
Capital Share Transactions: | ||||
Class M Shares | ||||
Shares sold | 37,999,991 | 29,475,523 | 86,959,713 | 39,490,102 |
Shares received in connection | ||||
with reorganization—Note 1 | — | 16,401,596 | — | — |
Shares issued for dividends reinvested | 510,831 | 508,182 | 270,826 | 116,169 |
Shares redeemed | (23,686,559) | (23,439,871) | (47,599,781) | (10,932,253) |
Net Increase (Decrease) in Shares Outstanding | 14,824,263 | 22,945,430 | 39,630,758 | 28,674,018 |
Investor Sharesa | ||||
Shares sold | 926,442 | 940,288 | 394,015 | 210,933 |
Shares received in connection | ||||
with reorganization—Note 1 | — | 44,887 | — | — |
Shares issued for dividends reinvested | 54,999 | 51,832 | 1,343 | 1,748 |
Shares redeemed | (525,254) | (711,751) | (325,131) | (153,798) |
Net Increase (Decrease) in Shares Outstanding | 456,187 | 325,256 | 70,227 | 58,883 |
Dreyfus Premier Sharesa | ||||
Shares sold | 58 | 43 | — | — |
Shares issued for dividends reinvested | 80 | 59 | — | — |
Shares redeemed | (4,088) | (1,207) | — | — |
Net Increase (Decrease) in Shares Outstanding | (3,950) | (1,105) | — | — |
a During the year ended August 31, 2010, 2 Dreyfus Premier shares of BNY Mellon National Intermediate Municipal Bond Fund representing $24 were automatically converted |
to 2 Investor shares and during the period ended August 31, 2009, 5 Dreyfus Premier shares representing $60 were automatically converted to 5 Investor shares. |
See notes to financial statements.
100
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund | ||
Year Ended August 31, | ||
2010 | 2009 | |
Operations ($): | ||
Investment income—net | 18,860,064 | 20,523,434 |
Net realized gain (loss) on investments | (554,785) | (1,012,218) |
Net unrealized appreciation (depreciation) on investments | 22,794,719 | 2,179,197 |
Net Increase (Decrease) in Net Assets | ||
Resulting from Operations | 41,099,998 | 21,690,413 |
Dividends to Shareholders from ($): | ||
Investment income—net: | ||
Class M Shares | (18,568,757) | (20,513,024) |
Investor Shares | (229,463) | (75,753) |
Net realized gain on investments: | ||
Class M Shares | (113,887) | (1,796,517) |
Investor Shares | (939) | (6,158) |
Total Dividends | (18,913,046) | (22,391,452) |
Beneficial Interest Transactions ($): | ||
Net proceeds from shares sold: | ||
Class M Shares | 77,631,357 | 57,316,170 |
Investor Shares | 8,956,905 | 1,983,197 |
Dividends reinvested: | ||
Class M Shares | 834,142 | 1,919,555 |
Investor Shares | 81,604 | 65,349 |
Cost of shares redeemed: | ||
Class M Shares | (101,436,721) | (123,278,606) |
Investor Shares | (2,518,488) | (972,684) |
Increase (Decrease) in Net Assets from | ||
Beneficial Interest Transactions | (16,451,201) | (62,967,019) |
Total Increase (Decrease) in Net Assets | 5,735,751 | (63,668,058) |
Net Assets ($): | ||
Beginning of Period | 504,540,697 | 568,208,755 |
End of Period | 510,276,448 | 504,540,697 |
Capital Share Transactions (Shares): | ||
Class M Shares | ||
Shares sold | 6,152,736 | 4,767,113 |
Shares issued for dividends reinvested | 66,009 | 164,733 |
Shares redeemed | (8,031,887) | (10,342,797) |
Net Increase (Decrease) in Shares Outstanding | (1,813,142) | (5,410,951) |
Investor Shares | ||
Shares sold | 706,411 | 166,647 |
Shares issued for dividends reinvested | 5,835 | 5,454 |
Shares redeemed | (200,092) | (82,116) |
Net Increase (Decrease) in Shares Outstanding | 512,154 | 89,985 |
See notes to financial statements. |
The Funds 101
STATEMENT OF CHANGES IN NET ASSETS (continued)
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | ||
Year Ended August 31, | ||
2010 | 2009 | |
Operations ($): | ||
Investment income—net | 13,939,034 | 13,751,852 |
Net realized gain (loss) on investments | 2,973,105 | (352,735) |
Net unrealized appreciation (depreciation) on investments | 13,425,742 | 8,219,562 |
Net Increase (Decrease) in Net Assets | ||
Resulting from Operations | 30,337,881 | 21,618,679 |
Dividends to Shareholders from ($): | ||
Investment income—net: | ||
Class M Shares | (13,669,090) | (13,535,532) |
Investor Shares | (267,539) | (291,281) |
Dreyfus Premier Shares | (516) | (530) |
Total Dividends | (13,937,145) | (13,827,343) |
Beneficial Interest Transactions ($): | ||
Net proceeds from shares sold: | ||
Class M Shares | 100,466,494 | 101,511,126 |
Investor Shares | 1,526,575 | 1,819,862 |
Dividends reinvested: | ||
Class M Shares | 3,506,780 | 3,143,859 |
Investor Shares | 167,469 | 166,187 |
Dreyfus Premier Shares | 516 | 530 |
Cost of shares redeemed: | ||
Class M Shares | (93,496,329) | (105,233,545) |
Investor Shares | (2,986,356) | (1,662,085) |
Increase (Decrease) in Net Assets from | ||
Beneficial Interest Transactions | 9,185,149 | (254,066) |
Total Increase (Decrease) in Net Assets | 25,585,885 | 7,537,270 |
Net Assets ($): | ||
Beginning of Period | 390,243,866 | 382,706,596 |
End of Period | 415,829,751 | 390,243,866 |
102
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | ||
Year Ended August 31, | ||
2010 | 2009 | |
Capital Share Transactions: | ||
Class M Shares | ||
Shares sold | 7,724,233 | 8,128,041 |
Shares issued for dividends reinvested | 268,880 | 252,022 |
Shares redeemed | (7,182,891) | (8,500,977) |
Net Increase (Decrease) in Shares Outstanding | 810,222 | (120,914) |
Investor Shares | ||
Shares sold | 117,346 | 145,881 |
Shares issued for dividends reinvested | 12,845 | 13,318 |
Shares redeemed | (229,363) | (133,834) |
Net Increase (Decrease) in Shares Outstanding | (99,172) | 25,365 |
Dreyfus Premier Shares | ||
Shares issued for dividends reinvested | 39 | 42 |
See notes to financial statements. |
The Funds 103
STATEMENT OF CHANGES IN NET ASSETS (continued)
BNY Mellon New York Intermediate Tax-Exempt Bond Fund | |||
Year Ended | Eight Months Ended | Year Ended | |
August 31, 2010 | August 31, 2009a | December 31, 2008b | |
Operations ($): | |||
Investment income—net | 6,364,090 | 3,377,709 | 4,144,055 |
Net realized gain (loss) on investments | 180,657 | (1,062) | 20,068 |
Net unrealized appreciation (depreciation) on investments | 7,406,706 | 6,064,628 | (938,532) |
Net Increase (Decrease) in Net Assets | |||
Resulting from Operations | 13,951,453 | 9,441,275 | 3,225,591 |
Dividends to Shareholders from ($): | |||
Investment income—net: | |||
Class M Shares | (5,819,185) | (3,024,865) | (3,598,570) |
Investor Shares | (527,436) | (343,793) | (543,884) |
Net realized gain on investments: | |||
Class M Shares | (1,490) | (3,144) | (68,788) |
Investor Shares | (152) | (365) | (10,087) |
Total Dividends | (6,348,263) | (3,372,167) | (4,221,329) |
Beneficial Interest Transactions ($): | |||
Net proceeds from shares sold: | |||
Class M Shares | 65,072,584 | 49,340,472 | 126,073,812 |
Investor Shares | 1,610,885 | 1,079,875 | 4,658,301 |
Dividends reinvested: | |||
Class M Shares | 779,460 | 391,474 | 565,070 |
Investor Shares | 418,543 | 271,144 | 418,905 |
Cost of shares redeemed: | |||
Class M Shares | (29,785,020) | (15,041,278) | (110,021,230) |
Investor Shares | (2,148,320) | (1,412,553) | (5,889,948) |
Increase (Decrease) in Net Assets from | |||
Beneficial Interest Transactions | 35,948,132 | 34,629,134 | 15,804,910 |
Total Increase (Decrease) in Net Assets | 43,551,322 | 40,698,242 | 14,809,172 |
Net Assets ($): | |||
Beginning of Period | 170,595,227 | 129,896,985 | 115,087,813 |
End of Period | 214,146,549 | 170,595,227 | 129,896,985 |
Capital Share Transactions (Shares): | |||
Class M Shares | |||
Shares sold | 5,743,485 | 4,496,047 | 11,647,326 |
Shares issued for dividends reinvested | 68,768 | 35,549 | 53,897 |
Shares redeemed | (2,628,307) | (1,367,809) | (10,149,397) |
Net Increase (Decrease) in Shares Outstanding | 3,183,946 | 3,163,787 | 1,551,826 |
Investor Shares | |||
Shares sold | 142,185 | 98,135 | 429,958 |
Shares issued for dividends reinvested | 36,891 | 24,626 | 39,188 |
Shares redeemed | (189,528) | (128,758) | (543,832) |
Net Increase (Decrease) in Shares Outstanding | (10,452) | (5,997) | (74,686) |
a The Fund has changed its fiscal year end from December 31st to August 31st. |
b Represents information for the predecessor fund, BNY Hamilton Intermediate NewYork Tax-Exempt Fund, through September 12, 2008. |
See notes to financial statements.
104
BNY Mellon Municipal Opportunities Fund | ||
Year Ended August 31, | ||
2010 | 2009a | |
Operations ($): | ||
Investment income—net | 7,638,142 | 3,138,399 |
Net realized gain (loss) on investments | 2,595,299 | 2,968,508 |
Net unrealized appreciation (depreciation) on investments | 14,993,700 | 9,994,673 |
Net Increase (Decrease) in Net Assets | ||
Resulting from Operations | 25,227,141 | 16,101,580 |
Dividends to Shareholders from ($): | ||
Investment income—net: | ||
Class M Shares | (7,435,840) | (2,966,027) |
Investor Shares | (48,955) | (11,049) |
Net realized gain on investments: | ||
Class M Shares | (4,605,769) | (20,208) |
Investor Shares | (48,090) | (14) |
Total Dividends | (12,138,654) | (2,997,298) |
Beneficial Interest Transactions ($): | ||
Net proceeds from shares sold: | ||
Class M Shares | 256,211,257 | 142,375,488 |
Investor Shares | 688,290 | 1,145,000 |
Dividends reinvested: | ||
Class M Shares | 4,694,015 | 819,865 |
Investor Shares | 87,415 | 10,686 |
Cost of shares redeemed: | ||
Class M Shares | (29,907,595) | (15,358,591) |
Investor Shares | (866,650) | (1,975) |
Increase (Decrease) in Net Assets from | ||
Beneficial Interest Transactions | 230,906,732 | 128,990,473 |
Total Increase (Decrease) in Net Assets | 243,995,219 | 142,094,755 |
Net Assets ($): | ||
Beginning of Period | 142,094,755 | — |
End of Period | 386,089,974 | 142,094,755 |
Capital Share Transactions (Shares): | ||
Class M Shares | ||
Shares sold | 20,613,460 | 12,782,290 |
Shares issued for dividends reinvested | 381,307 | 70,402 |
Shares redeemed | (2,410,868) | (1,325,669) |
Net Increase (Decrease) in Shares Outstanding | 18,583,899 | 11,527,023 |
Investor Shares | ||
Shares sold | 54,942 | 98,086 |
Shares issued for dividends reinvested | 7,093 | 895 |
Shares redeemed | (70,361) | (169) |
Net Increase (Decrease) in Shares Outstanding | (8,326) | 98,812 |
a From October 15, 2008 (commencement of initial offering) to August 31, 2009. | ||
See notes to financial statements. |
The Funds | 105 |
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class of each fund for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in each fund would have increased (or decreased) during the period, assuming you had reinvested all dividends and distributions. These figures have been derived from each fund’s financial statements.
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon National Intermediate Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 13.10 | 12.84 | 12.81 | 13.01 | 13.25 |
Investment Operations: | |||||
Investment income—neta | .50 | .52 | .52 | .50 | .50 |
Net realized and unrealized | |||||
gain (loss) on investments | .65 | .27 | .02 | (.20) | (.16) |
Total from Investment Operations | 1.15 | .79 | .54 | .30 | .34 |
Distributions: | |||||
Dividends from investment income—net | (.50) | (.52) | (.51) | (.50) | (.50) |
Dividends from net realized gain on investments | — | (.01) | — | — | (.08) |
Total Distributions | (.50) | (.53) | (.51) | (.50) | (.58) |
Net asset value, end of period | 13.75 | 13.10 | 12.84 | 12.81 | 13.01 |
Total Return (%) | 8.96 | 6.37 | 4.32 | 2.36 | 2.64 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .50 | .51 | .51 | .51 | .51 |
Ratio of net expenses to average net assetsb | .50 | .51 | .51 | .51 | .51 |
Ratio of net investment income | |||||
to average net assets | 3.76 | 4.11 | 4.01 | 3.90 | 3.87 |
Portfolio Turnover Rate | 42.75 | 42.82 | 49.50 | 27.18 | 28.19 |
Net Assets, end of period ($ x 1,000) | 1,638,004 | 1,366,960 | 1,045,019 | 944,909 | 807,634 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
106
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon National Intermediate Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 13.09 | 12.83 | 12.80 | 13.00 | 13.23 |
Investment Operations: | |||||
Investment income—neta | .47 | .49 | .48 | .47 | .47 |
Net realized and unrealized | |||||
gain (loss) on investments | .64 | .27 | .03 | (.20) | (.15) |
Total from Investment Operations | 1.11 | .76 | .51 | .27 | .32 |
Distributions: | |||||
Dividends from investment income—net | (.47) | (.49) | (.48) | (.47) | (.47) |
Dividends from net realized gain on investments | — | (.01) | — | — | (.08) |
Total Distributions | (.47) | (.50) | (.48) | (.47) | (.55) |
Net asset value, end of period | 13.73 | 13.09 | 12.83 | 12.80 | 13.00 |
Total Return (%) | 8.61 | 6.11 | 4.06 | 2.11 | 2.47 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .75 | .76 | .76 | .76 | .76 |
Ratio of net expenses to average net assetsb | .75 | .76 | .76 | .76 | .76 |
Ratio of net investment income | |||||
to average net assets | 3.51 | 3.88 | 3.77 | 3.65 | 3.62 |
Portfolio Turnover Rate | 42.75 | 42.82 | 49.50 | 27.18 | 28.19 |
Net Assets, end of period ($ x 1,000) | 33,931 | 26,368 | 21,668 | 25,262 | 27,084 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds 107
FINANCIAL HIGHLIGHTS (continued)
Dreyfus Premier Shares | |||||
Year Ended August 31, | |||||
BNY Mellon National Intermediate Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 13.10 | 12.84 | 12.81 | 13.00 | 13.24 |
Investment Operations: | |||||
Investment income—neta | .40 | .42 | .41 | .39 | .40 |
Net realized and unrealized | |||||
gain (loss) on investments | .64 | .27 | .04 | (.17) | (.16) |
Total from Investment Operations | 1.04 | .69 | .45 | .22 | .24 |
Distributions: | |||||
Dividends from investment income—net | (.40) | (.42) | (.42) | (.41) | (.40) |
Dividends from net realized gain on investments | — | (.01) | — | — | (.08) |
Total Distributions | (.40) | (.43) | (.42) | (.41) | (.48) |
Net asset value, end of period | 13.74 | 13.10 | 12.84 | 12.81 | 13.00 |
Total Return (%)b | 8.06 | 5.66 | 3.46 | 1.68 | 1.88 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.25 | 1.26 | 1.26 | 1.26 | 1.26 |
Ratio of net expenses to average net assetsc | 1.25 | 1.26 | 1.26 | 1.26 | 1.26 |
Ratio of net investment income | |||||
to average net assets | 3.02 | 3.37 | 3.27 | 3.13 | 3.12 |
Portfolio Turnover Rate | 42.75 | 42.82 | 49.50 | 27.18 | 28.19 |
Net Assets, end of period ($ x 1,000) | 120 | 166 | 177 | 327 | 2,474 |
a | Based on average shares outstanding at each month end. |
b | Exclusive of sales charge. |
c | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
108
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon National Short-Term Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.80 | 12.69 | 12.59 | 12.59 | 12.63 |
Investment Operations: | |||||
Investment income—neta | .21 | .31 | .41 | .40 | .33 |
Net realized and unrealized | |||||
gain (loss) on investments | .21 | .14 | .10 | — | (.04) |
Total from Investment Operations | .42 | .45 | .51 | .40 | .29 |
Distributions: | |||||
Dividends from investment income—net | (.21) | (.34) | (.41) | (.40) | (.33) |
Net asset value, end of period | 13.01 | 12.80 | 12.69 | 12.59 | 12.59 |
Total Return (%) | 3.22 | 3.61 | 4.09 | 3.21 | 2.36 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .51 | .54 | .54 | .55 | .53 |
Ratio of net expenses to average net assets | .51b | .54b | .54b | .54 | .53b |
Ratio of net investment income | |||||
to average net assets | 1.60 | 2.50 | 3.23 | 3.14 | 2.65 |
Portfolio Turnover Rate | 16.46 | 12.61 | 22.93 | 33.74 | 49.94 |
Net Assets, end of period ($ x 1,000) | 1,060,685 | 536,597 | 168,243 | 145,395 | 160,551 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds 109
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon National Short-Term Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.78 | 12.68 | 12.58 | 12.58 | 12.62 |
Investment Operations: | |||||
Investment income—neta | .19 | .31 | .38 | .37 | .31 |
Net realized and unrealized | |||||
gain (loss) on investments | .20 | .10 | .10 | (.01) | (.05) |
Total from Investment Operations | .39 | .41 | .48 | .36 | .26 |
Distributions: | |||||
Dividends from investment income—net | (.18) | (.31) | (.38) | (.36) | (.30) |
Net asset value, end of period | 12.99 | 12.78 | 12.68 | 12.58 | 12.58 |
Total Return (%) | 3.05 | 3.28 | 3.83 | 2.95 | 2.10 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .77 | .80 | .80 | .80 | .79 |
Ratio of net expenses to average net assetsb | .77 | .80 | .80 | .80 | .79 |
Ratio of net investment income | |||||
to average net assets | 1.39 | 2.38 | 2.99 | 2.94 | 2.47 |
Portfolio Turnover Rate | 16.46 | 12.61 | 22.93 | 33.74 | 49.94 |
Net Assets, end of period ($ x 1,000) | 2,356 | 1,420 | 662 | 635 | 277 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
110
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.40 | 12.35 | 12.43 | 12.66 | 12.92 |
Investment Operations: | |||||
Investment income—neta | .46 | .48 | .48 | .48 | .48 |
Net realized and unrealized | |||||
gain (loss) on investments | .56 | .09 | (.06) | (.20) | (.18) |
Total from Investment Operations | 1.02 | .57 | .42 | .28 | .30 |
Distributions: | |||||
Dividends from investment income—net | (.46) | (.48) | (.48) | (.48) | (.48) |
Dividends from net realized gain on investments | (.00)b | (.04) | (.02) | (.03) | (.08) |
Total Distributions | (.46) | (.52) | (.50) | (.51) | (.56) |
Net asset value, end of period | 12.96 | 12.40 | 12.35 | 12.43 | 12.66 |
Total Return (%) | 8.44 | 4.90 | 3.43 | 2.23 | 2.41 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .66 | .67 | .66 | .66 | .66 |
Ratio of net expenses to average net assetsc | .66 | .67 | .66 | .66 | .66 |
Ratio of net investment income | |||||
to average net assets | 3.68 | 4.02 | 3.87 | 3.83 | 3.81 |
Portfolio Turnover Rate | 7.11 | 12.75 | 10.14 | 20.18 | 13.80 |
Net Assets, end of period ($ x 1,000) | 500,892 | 501,978 | 566,767 | 610,618 | 646,610 |
a | Based on average shares outstanding at each month end. |
b | Amount represents less than $.01 per share. |
c | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds 111
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.39 | 12.33 | 12.41 | 12.65 | 12.91 |
Investment Operations: | |||||
Investment income—neta | .44 | .46 | .46 | .45 | .46 |
Net realized and unrealized | |||||
gain (loss) on investments | .54 | .09 | (.07) | (.21) | (.19) |
Total from Investment Operations | .98 | .55 | .39 | .24 | .27 |
Distributions: | |||||
Dividends from investment income—net | (.43) | (.45) | (.45) | (.45) | (.45) |
Dividends from net realized gain on investments | (.00)b | (.04) | (.02) | (.03) | (.08) |
Total Distributions | (.43) | (.49) | (.47) | (.48) | (.53) |
Net asset value, end of period | 12.94 | 12.39 | 12.33 | 12.41 | 12.65 |
Total Return (%) | 8.08 | 4.72 | 3.17 | 1.89 | 2.15 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .92 | .92 | .91 | .91 | .91 |
Ratio of net expenses to average net assetsc | .92 | .92 | .91 | .91 | .91 |
Ratio of net investment income | |||||
to average net assets | 3.42 | 3.76 | 3.63 | 3.59 | 3.57 |
Portfolio Turnover Rate | 7.11 | 12.75 | 10.14 | 20.18 | 13.80 |
Net Assets, end of period ($ x 1,000) | 9,385 | 2,563 | 1,442 | 1,295 | 3,586 |
a | Based on average shares outstanding at each month end. |
b | Amount represents less than $.01 per share. |
c | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
112
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.86 | 12.57 | 12.42 | 12.58 | 12.75 |
Investment Operations: | |||||
Investment income—neta | .45 | .46 | .47 | .47 | .47 |
Net realized and unrealized | |||||
gain (loss) on investments | .53 | .29 | .14 | (.16) | (.14) |
Total from Investment Operations | .98 | .75 | .61 | .31 | .33 |
Distributions: | |||||
Dividends from investment income—net | (.45) | (.46) | (.46) | (.47) | (.47) |
Dividends from net realized gain on investments | — | — | — | — | (.03) |
Total Distributions | (.45) | (.46) | (.46) | (.47) | (.50) |
Net asset value, end of period | 13.39 | 12.86 | 12.57 | 12.42 | 12.58 |
Total Return (%) | 7.75 | 6.18 | 5.02 | 2.47 | 2.65 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .52 | .54 | .52 | .53 | .54 |
Ratio of net expenses to average net assets | .52b | .54b | .52b | .50 | .50 |
Ratio of net investment income | |||||
to average net assets | 3.44 | 3.70 | 3.71 | 3.72 | 3.73 |
Portfolio Turnover Rate | 21.44 | 16.78 | 8.75 | 18.85 | 20.57 |
Net Assets, end of period ($ x 1,000) | 407,667 | 381,129 | 374,115 | 342,583 | 299,263 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds 113
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.86 | 12.57 | 12.42 | 12.58 | 12.75 |
Investment Operations: | |||||
Investment income—neta | .42 | .43 | .44 | .44 | .44 |
Net realized and unrealized | |||||
gain (loss) on investments | .53 | .29 | .14 | (.16) | (.14) |
Total from Investment Operations | .95 | .72 | .58 | .28 | .30 |
Distributions: | |||||
Dividends from investment income—net | (.42) | (.43) | (.43) | (.44) | (.44) |
Dividends from net realized gain on investments | — | — | — | — | (.03) |
Total Distributions | (.42) | (.43) | (.43) | (.44) | (.47) |
Net asset value, end of period | 13.39 | 12.86 | 12.57 | 12.42 | 12.58 |
Total Return (%) | 7.49 | 5.92 | 4.76 | 2.21 | 2.40 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .77 | .79 | .77 | .78 | .79 |
Ratio of net expenses to average net assets | .77b | .79b | .77b | .75 | .75 |
Ratio of net investment income | |||||
to average net assets | 3.20 | 3.45 | 3.47 | 3.48 | 3.49 |
Portfolio Turnover Rate | 21.44 | 16.78 | 8.75 | 18.85 | 20.57 |
Net Assets, end of period ($ x 1,000) | 8,143 | 9,096 | 8,574 | 9,024 | 9,854 |
a | Based on average shares outstanding at each month end. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
114
Dreyfus Premier Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 12.89 | 12.60 | 12.45 | 12.61 | 12.78 |
Investment Operations: | |||||
Investment income—neta | .35 | .37 | .38 | .35 | .37 |
Net realized and unrealized | |||||
gain (loss) on investments | .53 | .29 | .14 | (.14) | (.14) |
Total from Investment Operations | .88 | .66 | .52 | .21 | .23 |
Distributions: | |||||
Dividends from investment income—net | (.35) | (.37) | (.37) | (.37) | (.37) |
Dividends from net realized gain on investments | — | — | — | — | (.03) |
Total Distributions | (.35) | (.37) | (.37) | (.37) | (.40) |
Net asset value, end of period | 13.42 | 12.89 | 12.60 | 12.45 | 12.61 |
Total Return (%)b | 6.94 | 5.38 | 4.25 | 1.71 | 1.89 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | 1.28 | 1.29 | 1.27 | 1.28 | 1.29 |
Ratio of net expenses to average net assets | 1.27 | 1.29c | 1.27c | 1.25 | 1.25 |
Ratio of net investment income | |||||
to average net assets | 2.69 | 2.95 | 2.97 | 2.96 | 2.99 |
Portfolio Turnover Rate | 21.44 | 16.78 | 8.75 | 18.85 | 20.57 |
Net Assets, end of period ($ x 1,000) | 20 | 19 | 18 | 17 | 165 |
a | Based on average shares outstanding at each month end. |
b | Exclusive of sales charge. |
c | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds 115
FINANCIAL HIGHLIGHTS (continued)
Class M Shares† | ||||||
BNY Mellon New York Intermediate | Year Ended | Eight Months Ended | Year Ended December 31, | |||
Tax-Exempt Bond Fund | August 31, 2010 | August 31, 2009a | 2008 | 2007 | 2006 | 2005 |
Per Share Data ($): | ||||||
Net asset value, beginning of period | 11.16 | 10.71 | 10.81 | 10.75 | 10.74 | 10.89 |
Investment Operations: | ||||||
Investment income—netb | .38 | .25 | .37 | .38 | .37 | .35 |
Net realized and unrealized | ||||||
gain (loss) on investments | .44 | .45 | (.09) | .07 | .01 | (.14) |
Total from Investment Operations | .82 | .70 | .28 | .45 | .38 | .21 |
Distributions: | ||||||
Dividends from investment income—net | (.38) | (.25) | (.37) | (.38) | (.37) | (.35) |
Dividends from net realized gain on investments | (.00)c | (.00)c | (.01) | (.01) | (.00)c | (.01) |
Total Distributions | (.38) | (.25) | (.38) | (.39) | (.37) | (.36) |
Net asset value, end of period | 11.60 | 11.16 | 10.71 | 10.81 | 10.75 | 10.74 |
Total Return (%) | 7.45 | 6.58d | 2.64 | 4.33 | 3.64 | 2.01 |
Ratios/Supplemental Data (%): | ||||||
Ratio of total expenses to average net assets | .72 | .72e | .75 | .75 | .76 | .77 |
Ratio of net expenses to average net assets | .59 | .59e | .59 | .59 | .59 | .59 |
Ratio of net investment income | ||||||
to average net assets | 3.33 | 3.40e | 3.49 | 3.56 | 3.46 | 3.26 |
Portfolio Turnover Rate | 4.80 | 1.47d | 6 | 17 | 13 | 16 |
Net Assets, end of period ($ x 1,000) | 196,795 | 153,785 | 113,699 | 97,935 | 94,789 | 95,160 |
† Represents information for Institutional shares of the fund’s predecessor, BNY Hamilton Intermediate NewYork Tax-Exempt Fund, through September 12, 2008. |
a The fund has changed its fiscal year end from December 31 to August 31. |
b Based on average shares outstanding at each month end. |
c Amount represents less than $.01 per share. |
d Not annualized. |
e Annualized. |
See notes to financial statements.
116
Investor Shares† | ||||||
BNY Mellon New York Intermediate | Year Ended | Eight Months Ended | Year Ended December 31, | |||
Tax-Exempt Bond Fund | August 31, 2010 | August 31, 2009a | 2008 | 2007 | 2006 | 2005 |
Per Share Data ($): | ||||||
Net asset value, beginning of period | 11.17 | 10.72 | 10.82 | 10.76 | 10.75 | 10.90 |
Investment Operations: | ||||||
Investment income—netb | .35 | .23 | .34 | .35 | .34 | .33 |
Net realized and unrealized | ||||||
gain (loss) on investments | .44 | .45 | (.08) | .08 | .01 | (.14) |
Total from Investment Operations | .79 | .68 | .26 | .43 | .35 | .19 |
Distributions: | ||||||
Dividends from investment income—net | (.35) | (.23) | (.35) | (.36) | (.34) | (.33) |
Dividends from net realized gain on investments | (.00)c | (.00)c | (.01) | (.01) | (.00)c | (.01) |
Total Distributions | (.35) | (.23) | (.36) | (.37) | (.34) | (.34) |
Net asset value, end of period | 11.61 | 11.17 | 10.72 | 10.82 | 10.76 | 10.75 |
Total Return (%) | 7.17 | 6.40d | 2.39e | 4.07e | 3.38e | 1.76e |
Ratios/Supplemental Data (%): | ||||||
Ratio of total expenses to average net assets | .97 | .96f | 1.00 | 1.00 | 1.01 | 1.02 |
Ratio of net expenses to average net assets | .84 | .84f | .84 | .84 | .84 | .84 |
Ratio of net investment income | ||||||
to average net assets | 3.08 | 3.15f | 3.24 | 3.31 | 3.21 | 3.00 |
Portfolio Turnover Rate | 4.80 | 1.47d | 6 | 17 | 13 | 16 |
Net Assets, end of period ($ x 1,000) | 17,352 | 16,810 | 16,198 | 17,153 | 18,131 | 20,164 |
† Represents information for Class A shares of the fund’s predecessor, BNY Hamilton Intermediate NewYork Tax-Exempt Fund, through September 12, 2008. |
a The fund has changed its fiscal year end from December 31 to August 31. |
b Based on average shares outstanding at each month end. |
c Amount represents less than $.01 per share. |
d Not annualized. |
e Exclusive of sales charge. |
f Annualized. |
See notes to financial statements.
The Funds 117
FINANCIAL HIGHLIGHTS (continued)
Class M Shares | ||
Year Ended August 31, | ||
BNY Mellon Municipal Opportunities Fund | 2010 | 2009a |
Per Share Data ($): | ||
Net asset value, beginning of period | 12.22 | 10.00 |
Investment Operations: | ||
Investment income—netb | .50 | .43 |
Net realized and unrealized | ||
gain (loss) on investments | .95 | 2.19 |
Total from Investment Operations | 1.45 | 2.62 |
Distributions: | ||
Dividends from investment income—net | (.52) | (.39) |
Dividends from net realized gain on investments | (.37) | (.01) |
Total Distributions | (.89) | (.40) |
Net asset value, end of period | 12.78 | 12.22 |
Total Return (%) | 12.38 | 26.58c |
Ratios/Supplemental Data (%): | ||
Ratio of total expenses to average net assets | .71 | .87d |
Ratio of net expenses to average net assets | .71e | .75d |
Ratio of interest and expense related to | ||
floating rate notes issued to average net assets | .01 | — |
Ratio of net investment income | ||
to average net assets | 4.12 | 4.36d |
Portfolio Turnover Rate | 145.57 | 161.70c |
Net Assets, end of period ($ x 1,000) | 384,933 | 140,887 |
a | From October 15, 2008 (commencement of initial offering) to August 31, 2009. |
b | Based on average shares outstanding at each month end. |
c | Not annualized. |
d | Annualized. |
e | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
118
Investor Shares | ||
Year Ended August 31, | ||
BNY Mellon Municipal Opportunities Fund | 2010 | 2009a |
Per Share Data ($): | ||
Net asset value, beginning of period | 12.22 | 10.00 |
Investment Operations: | ||
Investment income—netb | .50 | .42 |
Net realized and unrealized | ||
gain (loss) on investments | .93 | 2.18 |
Total from Investment Operations | 1.43 | 2.60 |
Distributions: | ||
Dividends from investment income—net | (.49) | (.37) |
Dividends from net realized gain on investments | (.37) | (.01) |
Total Distributions | (.86) | (.38) |
Net asset value, end of period | 12.79 | 12.22 |
Total Return (%) | 12.19 | 26.29c |
Ratios/Supplemental Data (%): | ||
Ratio of total expenses to average net assets | .96 | 1.11d |
Ratio of net expenses to average net assets | .95 | .99d |
Ratio of interest and expense related to | ||
floating rate notes issued to average net assets | .00e | — |
Ratio of net investment income | ||
to average net assets | 4.00 | 4.48d |
Portfolio Turnover Rate | 145.57 | 161.70c |
Net Assets, end of period ($ x 1,000) | 1,157 | 1,208 |
a | From October 15, 2008 (commencement of initial offering) to August 31, 2009. |
b | Based on average shares outstanding at each month end. |
c | Not annualized. |
d | Annualized. |
e | Amount represents less than .01%. |
See notes to financial statements.
The Funds 119
NOTES TO FINANCIAL STATEMENTS
NOTE 1—General:
BNY Mellon Funds Trust (the “Trust”) was organized as a Massachusetts business trust 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 comprised of twenty-five series, including the following non-diversified municipal bond funds: BNY Mellon National Intermediate Municipal Bond Fund, BNY Mellon National Short-Term Municipal Bond Fund, BNY Mellon Pennsylvania Intermediate Municipal Bond Fund, BNY Mellon Massachusetts Intermediate Municipal Bond Fund, BNY Mellon New York Intermediate Tax-Exempt Bond Fund and BNY Mellon Municipal Opportunities Fund, (each, a “fund” and collectively, the “funds”). BNY Mellon National Intermediate Municipal Bond Fund, BNY Mellon National Short-Term Municipal Bond Fund and BNY Mellon Municipal Opportunities Fund seek to maximi ze current income exempt from federal income tax to the extent consistent with the preservation of capital. BNY Mellon Pennsylvania Intermediate Municipal Bond Fund seeks as high a level of income exempt from federal and Pennsylvania state income taxes as is consistent with the preservation of capital. BNY Mellon Massachusetts Intermediate Municipal Bond Fund seeks as high a level of income exempt from federal and Massachusetts state income taxes as is consistent with the preservation of capital. BNY Mellon New York Intermediate Tax-Exempt Bond Fund seeks as high a level of current income exempt from federal, New York State and New York City personal income taxes as is consistent with the preservation of capital.
BNY Mellon Fund Advisers, a division of The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as each fund’s investment adviser (“Investment Adviser”).The Bank of New York Mellon, a subsidiary of BNY Mellon and an
affiliate of Dreyfus, serves as administrator for the funds pursuant to an Administration Agreement with the Trust (the “Administration Agreement”). The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to whichThe Bank of New York Mellon pays Dreyfus for performing certain administrative services. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of each fund’s shares.
As of the close of business on September 12, 2008, pursuant to an Agreement and Plan of Reorganization previously approved by the Trust’s Board of Trustees, all of the assets, subject to the liabilities, of BNY Hamilton Intermediate Tax-Exempt Fund, a series of BNY Hamilton Funds, Inc. (the “Intermediate Tax-Exempt Fund”) were transferred to BNY Mellon National Intermediate Municipal Bond Fund (the “Acquiring Fund”) in exchange for the corresponding class of shares of Beneficial Interest of the Acquiring Fund of equal value. Shareholders of Institutional and Class A shares of the Intermediate Tax-Exempt Fund received Class M and Investor shares, respectively, of the Acquiring Fund, in each case in an amount equal to the aggregate net asset value of their investment in the Intermediate Tax—Exempt Fund at the time of the exchange.The exchange ratios for Class M and Investor shares are . 769 and .771, respectively.The net asset value of the Acquiring Fund’s shares on the close of business on September 12, 2008, after the reorganization, was $12.88 for Class M Shares and $12.86 for Investor Shares, and a total of 16,401,596 Class M shares and 44,887 Investor shares, representing net assets of $211,751,479 (including $3,851,505 net unrealized appreciation on investments) were issued to the Intermediate Tax-Exempt Fund shareholders in the exchange. The exchange was a tax-free event to shareholders of the Intermediate Tax-Exempt Fund.
The Trust is authorized to issue an unlimited number of shares of beneficial interest, par value $.001 per share, in each of the Class M and Investor class shares of each fund
120
and in the Dreyfus Premier class shares of BNY Mellon National Intermediate Municipal Bond Fund and BNY Mellon Massachusetts Intermediate Municipal Bond Fund. Dreyfus Premier shares of BNY Mellon National Intermediate Municipal Bond Fund and BNY Mellon Massachusetts Intermediate Municipal Bond Fund are subject to a contingent deferred sales charge (“CDSC”) imposed on redemptions of Dreyfus Premier shares made within six years of purchase and automatically convert to Investor class shares after six years. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
TheTrust 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) has become the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants.The ASC has superseded all existing non-SEC accounting and reporting standards. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assump-tions.Actual results could differ from those estimates.
NOTE 2—Significant Accounting Policies:
(a) Portfolio valuation: Investments in municipal securities (excluding options and financial futures on
municipal, U.S. Treasury securities and swaps) 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 are valued by the Service, based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Options and financial futures on municipal and U.S. Treasury securities are valued at the last sales price on the securities exchang e on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Swap transactions are valued based on future cash flows and other factors, such as interest rates and underlying securities.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
The Funds 121
NOTES TO FINANCIAL STATEMENTS (continued)
Various inputs are used in determining the value of each fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Table 1 summarizes the inputs used as of August 31, 2010 in valuing each fund’s investments.
In January 2010, FASB issued Accounting Standards Update (ASU) No. 2010-06 “Improving Disclosures about Fair Value Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair
Table 1. | |||||||
Investments in Securities | |||||||
Level 2—Other | Level 3— | ||||||
Level 1—Quoted | Significant | Significant | |||||
Prices | Observable Inputs | Unobservable Inputs | |||||
Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Assets ($) | Liabilities ($) | Total | |
BNY Mellon National | |||||||
Intermediate Municipal | |||||||
Bond Fund | |||||||
Municipal Bonds | — | — | 1,676,720,990 | — | — | — | 1,676,720,990 |
BNY Mellon National | |||||||
Short-Term Municipal | |||||||
Bond Fund | |||||||
Municipal Bonds | — | — | 1,070,249,635 | — | — | — | 1,070,249,635 |
BNY Mellon Pennsylvania | |||||||
Intermediate Municipal | |||||||
Bond Fund | |||||||
Municipal Bonds | — | — | 508,132,280 | — | — | — | 508,132,280 |
BNY Mellon Massachusetts | |||||||
Intermediate Municipal | |||||||
Bond Fund | |||||||
Municipal Bonds | — | — | 411,727,859 | — | — | — | 411,727,859 |
BNY Mellon New York | |||||||
Intermediate Tax-Exempt | |||||||
Bond Fund | |||||||
Municipal Bonds | — | — | 212,200,967 | — | — | — | 212,200,967 |
BNY Mellon Municipal | |||||||
Opportunities Fund | |||||||
Municipal Bonds | — | — | 419,799,516 | — | — | — | 419,799,516 |
U.S. Government Agency | — | — | 802,197 | — | — | — | 802,197 |
Other Financial Instruments†: | |||||||
Futures | — | (1,245,078) | — | — | — | — | (1,245,078) |
Swaps | — | — | 1,526 | (198,595) | — | — | (197,069) |
† | Amounts shown represent unrealized appreciation (depreciation) at period end. |
122
value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at August 31, 2010.The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. These new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have on the funds’ financial statement disclosures.
(b) 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. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when issued or delayed-delivery basis may be settled a month or more after the trade date.
The funds have arrangements with the custodian and cash management bank whereby the funds may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the funds include net earnings credits as expense offsets in the Statement of Operations.
(c) Concentration of risk: BNY Mellon Pennsylvania Intermediate Municipal Bond Fund, BNY Mellon Massachusetts Intermediate Municipal Bond Fund and BNY Mellon New York Intermediate Tax-Exempt Bond Fund each follow an investment policy of investing primarily in municipal obligations of one state.
Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the fund.
(d) Dividends to shareholders: The funds declare dividends daily from investment income-net; such dividends are paid monthly. With respect to each series, dividends from net realized capital gain, if any, are normally declared and paid annually, but the funds 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 of that fund, 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 GAAP.
(e) Federal income taxes: It is the policy of each fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes, each series is treated as a single entity for the purpose of determining such qualification.
As of and during the period ended August 31, 2010, the funds did not have any liabilities for any uncertain tax positions. The funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the funds did not incur any interest or penalties.
Each of the tax years in the four-year period ended August 31, 2010, and December 31, 2008 as to BNY Mellon New York Intermediate Tax-Exempt Bond Fund, remain subject to examination by the Internal Revenue Service and state taxing authorities.
The Funds 123
NOTES TO FINANCIAL STATEMENTS (continued)
Table 2 summarizes each fund’s components of accumulated earnings on a tax basis at August 31, 2010.
Table 3 summarizes BNY Mellon National Short-Term Municipal Bond Fund and BNY Mellon New York Intermediate Tax-Exempt Bond Fund unused capital loss carryover available to be applied against future net securities profits, if any, realized subsequent to August 31, 2010.
Table 4 summarizes each relevant fund’s tax character of distributions paid to shareholders during the fiscal periods ended August 31, 2010 and August 31, 2009, respectively.
During the period ended August 31, 2010, as a result of permanent book to tax differences, primarily due to the tax treatment for amortization of premiums/discounts,
the funds increased (decreased) accumulated undistributed investment income—net, increased (decreased) accumulated net realized gain (loss) on investments and increased (decreased) paid-in capital as summarized in Table 5 Net assets and net asset value per share were not affected by this reclassification.
NOTE 3—Bank Lines of Credit:
The funds participate with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon, (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing
Table 2. | |||||
Undistributed | Undistributed | Undistributed | Unrealized | Capital Losses | |
Tax Exempt | Ordinary | Capital Gains | Appreciation | Realized After | |
Income ($) | Income ($) | (Losses) ($) | (Depreciation) ($) | October 31, 2009† | |
BNY Mellon National Intermediate | |||||
Municipal Bond Fund | 325,122 | 8,104,647 | — | 108,194,170 | — |
BNY Mellon National Short-Term | |||||
Municipal Bond Fund | 32,677 | — | (1,275,018) | 18,777,102 | 435,146 |
BNY Mellon Pennsylvania Intermediate | |||||
Municipal Bond Fund | 100,348 | — | (2,277,946) | 32,271,276 | 315,354 |
BNY Mellon Massachusetts Intermediate | |||||
Municipal Bond Fund | 2,764 | — | 1,987,989 | 28,401,966 | — |
BNY Mellon New York Intermediate | |||||
Tax-Exempt Bond Fund | 668 | 68,356 | 113,729 | 15,201,122 | — |
BNY Mellon Municipal Opportunities Fund | 11,106 | — | — | 26,470,731 | 288,946 |
† | These losses were deferred for tax purposes to the first day of the following fiscal year. |
Table 3. | ||||||
Expiring in fiscal† | 2014 ($)† | 2015 ($)† | 2016 ($)† | 2017 ($)† | 2018 ($)† | Total ($) |
BNY Mellon National Short-Term | ||||||
Municipal Bond Fund | 439,406 | 501,053 | 99,584 | 62,757 | 172,218 | 1,275,018 |
BNY Mellon Pennsylvania Intermediate | ||||||
Municipal Bond Fund | — | — | — | — | 2,277,946 | 2,277,946 |
† | If not applied, the carryovers expire in the above years. |
124
of redemptions. In connection therewith, the funds have agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the funds based on rates determined pursuant to the terms of the respective Facility at the time of borrowings. During the period ended August 31, 2010, the funds did not borrow under the Facilities.
NOTE 4—Investment Advisory Fee, Administration Fee and Other Transactions with Affiliates:
(a) Fees payable by the funds pursuant to the provisions of an Investment Advisory Agreement with the Investment Adviser are payable monthly, computed on the average daily value of each fund’s net assets at the following annual rates: .35% of the BNY Mellon National Intermediate Municipal Bond Fund, .35% of
the BNY Mellon National Short-Term Municipal Bond Fund, .50% of the BNY Mellon Pennsylvania Intermediate Municipal Bond Fund, .35% of the BNY Mellon Massachusetts Intermediate Municipal Bond Fund, .50% of the BNY Mellon NewYork Intermediate Tax-Exempt Bond Fund and .50% of the BNY Mellon Municipal Opportunities Fund.
Pursuant to the Administration Agreement,The Bank of New York Mellon provides or arranges for fund accounting, transfer agency and other fund administration services and receives a fee based on the total net assets of the Trust based on the following rates:
0 up to $6 billion | .15% |
$6 billion up to $12 billion | .12% |
In excess of $12 billion | .10% |
Table 4. | ||||||
Ordinary | Long-Term | |||||
Tax-Exempt Income ($) | Income ($) | Capital Gains ($) | ||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
BNY Mellon National Intermediate | ||||||
Municipal Bond Fund | 57,913,238 | 51,111,783 | 16,278 | 234,557 | — | 719,767 |
BNY Mellon National Short-Term | ||||||
Municipal Bond Fund | 14,122,455 | 6,803,661 | 48 | — | — | — |
BNY Mellon Pennsylvania Intermediate | ||||||
Municipal Bond Fund | 18,775,417 | 20,588,777 | 137,629 | 241,773 | — | 1,560,902 |
BNY Mellon Massachusetts Intermediate | ||||||
Municipal Bond Fund | 13,937,145 | 13,827,343 | — | — | — | — |
BNY Mellon New York Intermediate | ||||||
Tax-Exempt Bond Fund | 6,346,621 | 3,368,658 | — | — | 1,642 | 3,509 |
BNY Mellon Municipal Opportunities Fund | 7,155,802 | 2,868,487 | 4,895,650 | 128,811 | 87,202 | — |
Table 5. | ||||||
Accumulated | Accumulated | |||||
Undistributed | Net Realized | Paid-in | ||||
Investment Income—Net ($) | Gain (Loss) ($) | Capital ($) | ||||
BNY Mellon National Intermediate Municipal Bond Fund | (301,505) | 301,265 | 240 | |||
BNY Mellon National Short-Term Municipal Bond Fund | (52,969) | 52,914 | 55 | |||
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund | (61,844) | 35,281 | 26,563 | |||
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | (1,889) | 1,889 | — | |||
BNY Mellon New York Intermediate Tax-Exempt Bond Fund | (17,469) | 16,801 | 668 | |||
BNY Mellon Municipal Opportunities Fund | (87,094) | 87,216 | (122) |
The Funds | 125 |
NOTES TO FINANCIAL STATEMENTS (continued)
The Bank of NewYork Mellon had entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of New York Mellon pays Dreyfus for performing certain administrative services.
For the BNY Mellon National Intermediate Municipal Bond Fund, the Investment Adviser has contractually agreed until September 30, 2010, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of Class M shares and Investor shares of the Fund, excluding taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses, do not exceed .69% and .94%, respectively.
For BNY Mellon New York Intermediate Tax-Exempt Bond, the Investment Adviser has contractually agreed until September 30, 2011, to waive receipt of its fees and/or assume the expenses of the BNY fund so that the direct expenses of neither class, excluding shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses do not exceed .59%. The reduction in investment advisory fee, pursuant to the undertaking, amounted to $240,614, during the period ended August 31, 2010.
For the BNY Mellon Municipal Opportunities Fund, the Investment Adviser had contractually agreed from October 15, 2008 through December 31, 2009, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither class, excluding shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses did not exceed .75%. This undertaking is no longer in effect.The reduction in investment advisory fee pursuant to the undertaking amounted to $1,423, during the period ended August 31, 2010.
(b) BNY Mellon National Intermediate Municipal Bond Fund and BNY Mellon Massachusetts Intermediate Municipal Bond Fund have adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act for distributing its Dreyfus Premier shares.The funds each pay the Distributor a fee at an annual rate of .50% of the value of the fund’s average daily net assets attributable to its Dreyfus Premier shares. During the period ended August 31, 2010, BNY Mellon National Intermediate Municipal Bond Fund’s and BNY Mellon Massachusetts Intermediate Municipal Bond Fund’s Dreyfus Premier shares were charged $725 and $96, respectively, pursuant to the Plan.
(c) The funds have adopted a Shareholder Services Plan with respect to its Investor shares, and BNY Mellon National Intermediate Municipal Bond Fund and BNY Mellon Massachusetts Intermediate Municipal Bond Fund have adopted a Shareholder Services Plan with respect to its Dreyfus Premier shares. Each fund pays the Distributor for the provision of certain services to holders of Investor shares and Dreyfus Premier shares a fee at an annual rate of .25% of the value of the average daily net assets attributable to Investor shares and Dreyfus Premier shares.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding a fund, and providing reports and other information and services related to the maintenance of such shareholder accounts.The Shareholder Servi ces Plan allows the Distributor to make payments from the shareholder services fees it collects from each fund to compensate service agents (certain banks, securities brokers or dealers and other financial institutions) in respect of these services. Table 6 summarizes the amounts Investor
126
shares and Dreyfus Premier shares were charged during the period ended August 31, 2010, pursuant to the Shareholder Services Plan. Additional fees included in shareholder servicing costs in the Statement of Operations include fees paid for cash management charges.
Table 6. | |
BNY Mellon National Intermediate | |
Municipal Bond Fund | |
(Dreyfus Premier Shares) | 362 |
BNY Mellon National Intermediate | |
Municipal Bond Fund (Investor Shares) | 75,381 |
BNY Mellon National Short-Term | |
Municipal Bond Fund (Investor Shares) | 3,536 |
BNY Mellon Pennsylvania Intermediate | |
Municipal Bond Fund (Investor Shares) | 16,847 |
BNY Mellon Massachusetts Intermediate | |
Municipal Bond Fund (Investor Shares) | 20,924 |
BNY Mellon Massachusetts Intermediate | |
Municipal Bond Fund | |
(Dreyfus Premier Shares) | 48 |
BNY Mellon New York Intermediate | |
Tax-Exempt Bond Fund | |
(Investor Shares) | 42,898 |
BNY Mellon Municipal Opportunities | |
Fund (Investor Shares) | 3,085 |
The funds compensate The Bank of New York Mellon under a cash management agreements for performing cash management services related to fund subscriptions and redemptions. Table 7 summarizes the amount each fund was charged during the period ended August 31, 2010 pursuant to the cash management agreements, which is included in Shareholder servicing costs in the Statement of Operations.These fees were partially offset by earnings credits, also summarized in Table 7.
The funds also compensate The Bank of New York Mellon under a custody agreement for providing custodial services for the funds. Table 8 summarizes the amount each fund was charged during the period ended August 31, 2010, pursuant to the custody agreement.
Table 8. | |
BNY Mellon National Intermediate | |
Municipal Bond Fund | 103,982 |
BNY Mellon National Short-Term | |
Municipal Bond Fund | 59,348 |
BNY Mellon Pennsylvania Intermediate | |
Municipal Bond Fund | 39,994 |
BNY Mellon Massachusetts Intermediate | |
Municipal Bond Fund | 31,329 |
BNY Mellon New York Intermediate | |
Tax-Exempt Bond Fund | 15,190 |
BNY Mellon Municipal | |
Opportunities Fund | 16,316 |
Cash Management Fees ($) | Earnings Credits ($) | |
BNY Mellon National Intermediate Municipal Bond Fund | 1,757 | 19 |
BNY Mellon National Short-Term Municipal Bond Fund | 72 | — |
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund | 96 | 1 |
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | 571 | 6 |
BNY Mellon New York Intermediate Tax-Exempt Bond Fund | 1,996 | 22 |
BNY Mellon Municipal Opportunities Fund | 33 | — |
The Funds 127
NOTES TO FINANCIAL STATEMENTS (continued)
During the period ended August 31, 2010, each fund was charged $4,648 for services performed by the Chief Compliance Officer.
Table 9 summarizes the components of “Due to The Dreyfus Corporation and affiliates” in the Statements of Assets and Liabilities for each fund.
(d) Each trustee who is not an “affiliated person” as defined in the Act receives from theTrust an annual fee of $68,000 and an attendance fee of $7,500 for each in person meeting attended and $500 for telephone meetings and is reimbursed for travel and out-of-pocket expenses. The Chairman of the Trust’s Board receives an additional annual fee of $15,000 and the Chairman of the Trust’s Audit Committee receives an additional fee of $10,000.
NOTE 5—Securities Transactions:
Table 10 summarizes each fund’s aggregate amount of purchases and sales of investment securities, excluding short-term securities, financial futures and swap transactions, during the period ended August 31, 2010.
Inverse Floater Securities: The BNY Mellon Municipal Opportunities Fund may participate in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds purchased by the fund are transferred to a trust. The trust subsequently issues two or more variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One or more of these variable rate securities pays interest based on a short-
Table 9. | ||||||
Investment | Rule 12b-1 | Shareholder | Chief | |||
Advisory | Distribution | Services | Custodian | Compliance | Expense | |
Fees ($) | Plan Fees ($) | Plan Fees ($) | Fees ($) | Officer Fees ($) | Reimbursement ($) | |
BNY Mellon National Intermediate | ||||||
Municipal Bond Fund | 490,926 | 53 | 7,151 | 17,441 | 673 | — |
BNY Mellon National Short-Term | ||||||
Municipal Bond Fund | 308,022 | — | 497 | 2,629 | 673 | — |
BNY Mellon Pennsylvania Intermediate | ||||||
Municipal Bond Fund | 216,544 | — | 1,983 | 6,672 | 673 | — |
BNY Mellon Massachusetts Intermediate | ||||||
Municipal Bond Fund | 122,261 | 8 | 1,719 | 5,256 | 673 | — |
BNY Mellon New York Intermediate | ||||||
Tax-Exempt Bond Fund | 90,246 | — | 3,659 | 2,323 | 673 | (22,750) |
BNY Mellon Municipal Opportunities Fund | 162,103 | — | 241 | 3,047 | 673 | — |
Table 10. | ||||||
Purchases ($) | Sales ($) | |||||
BNY Mellon National Intermediate Municipal Bond Fund | 777,198,334 | 635,313,673 | ||||
BNY Mellon National Short-Term Municipal Bond Fund | 630,196,262 | 131,210,573 | ||||
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund | 35,440,837 | 45,964,197 | ||||
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | 94,239,899 | 84,980,776 | ||||
BNY Mellon New York Intermediate Tax-Exempt Bond Fund | 39,698,379 | 8,588,889 | ||||
BNY Mellon Municipal Opportunities Fund | 409,702,705 | 249,152,476 |
128
term floating rate set by a remarketing agent at predetermined intervals.A residual interest tax-exempt security is also created by the trust, which is transferred to the fund, and is paid interest based on the remaining cash flow of the trust, after payment of interest on the other securities and various expenses of the fund.
Fair value of derivative instruments as of August 31, 2010 is shown below:
The fund accounts for the transfer of bonds to the trust as secured borrowings, with the securities transferred remaining in the fund’s investments, and the related floating rate certificate securities reflected as fund liabilities under the caption, “Payable for floating rate notes issued” in the Statement of Assets and Liabilities.
Derivative | Derivative | ||
Assets ($) | Liabilities ($) | ||
Interest rate risk | — | Interest rate risk1,3 | (1,320,458) |
Credit risk2 | 1,526 | Credit risk3 | (123,215) |
Gross fair value of derivatives contracts | 1,526 | (1,443,673) |
Statement of Assets and Liabilities location: |
1 Includes cumulative appreciation/depreciation on futures contracts as reported in the Statement of Financial Futures, but only the unpaid variation margin is reported in |
the Statement of Assets and Liabilities. |
2 Unrealized appreciation on swap contracts. |
3 Unrealized depreciation on swap contracts. |
The effect of derivative instruments in the Statement of Operations during the period ended August 31, 2010 is shown below:
Amount of realized gain or (loss) on derivatives recognized in income ($) | |||
Underlying risk | Futures4 | Swaps5 | Total |
Interest rate | (3,777,087) | — | (3,777,087) |
Credit | — | 489 | 489 |
Total | (3,777,087) | 489 | (3,776,598) |
Change in unrealized appreciation or (depreciation) on derivatives recognized in income ($) | |||
Underlying risk | Futures6 | Swaps7 | Total |
Interest rate | (1,180,234) | (75,380) | (1,255,614) |
Credit | — | (123,215) | (123,215) |
Total | (1,180,234) | (198,595) | (1,378,829) |
Statement of Operations location: | |
4 | Net realized gain (loss) on financial futures. |
5 | Net realized gain (loss) on swap transactions. |
6 | Net unrealized appreciation (depreciation) on financial futures. |
7 | Net unrealized appreciation (depreciation) on swap transactions. |
The Funds 129
NOTES TO FINANCIAL STATEMENTS (continued)
The average amount of borrowings outstanding under the inverse floater structure during the period ended August 31, 2010, was approximately $1,250,000, with a related weighted average annualized interest rate of .98%.
The provisions of ASC Topic 815 “Derivatives and Hedging” require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. The disclosure requirements distinguish between derivatives, which are accounted for as “hedges” and those that do not qualify for hedge accounting. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of Operations, they do not qualify for such accounting.Accordingly, even though a fund’s investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of this disclosure.The following tables show the BNY Mellon Municipal Opportunities Fund 146;s exposure to different types of market risk as it relates to the Statement of Assets and Liabilities and the Statement of Operations, respectively.
Table 11 summarizes each relevant fund’s average market value and percentage of average net assets, during the period ended August 31, 2010.
Table 12 summarizes each relevant fund’s average notional value and percentage of average net assets of swap contracts outstanding for the period ended August 31, 2010:
Futures Contracts: In the normal course of pursuing their investment objectives, the funds are exposed to market risk, including interest rate risk, as a result of changes in value of underlying financial instruments. The funds invest in financial futures contracts in order to manage their exposure to or protect against changes in the market. A futures contract represents a commitment for the future purchase or a sale of an asset at a specified date. Upon entering into such contracts, 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. Accordingly, variation margin payments are received or made to reflect daily unrealized gains or losses which are recorded in the Statement of Operations. Futures contracts are valued daily at the last sales price established by the Board of Trade or exchange upon which they are traded. When the contracts are closed, the fund recognizes a realized gain or loss.There is minimal counterparty credit risk to the funds with futures since futures are exchange traded, and the exchange’s clearinghouse guarantees the futures against default.
Table 11. | ||
Average | ||
Value ($) | Net Assets (%) | |
BNY Mellon Municipal Opportunities Fund | ||
Interest Rate Futures Contracts | 25,099,652 | 13.53 |
Table 12. | ||
Average | ||
Value ($) | Net Assets (%) | |
BNY Mellon Municipal Opportunities Fund | ||
Interest rate swap contracts | 2,307,692 | 1.24 |
Credit default swap contracts | 2,307,692 | 1.24 |
130
Contracts open at August 31, 2010 are set forth each relevant fund’s in Statement of Financial Futures.
Swaps: The BNY Mellon Municipal Opportunities Fund enters 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 enters into these agreements to hedge certain market or interest rate risks, to manage the interest rate sensitivity (sometimes called duration) of fixed income securities, to provide a substitute for purchasing or selling particular securities or to increase potential returns.
The fund accrues for the interim payments on swap contracts on a daily basis, with the net amount recorded within unrealized appreciation (depreciation) on swap contracts in the Statement of Assets and Liabilities. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swaps, in addition to realized gain (loss) recorded upon the termination of swaps contracts in the Statement of Operations. Upfront payments made and/or received by the fund, are recorded as an asset and/or liability in the Statement of Assets and Liabilities and are recorded as a realized gain or loss ratably over the contract’s term/event with the exception of forward starting interest rate swaps which are recorded as realized gains or losses on the termination date. Fluctuations in the value of swap contracts are recorded for financial statement purposes as unrealized appreciation or depreciation on swap transactions.
Interest Rate Swaps: Interest rate swaps involve the exchange of commitments to pay and receive interest based on a notional principal amount. The fund enters
into these agreements for a variety of reasons, including to hedge certain market or interest rate risks, to manage the interest rate sensitivity (sometimes called duration) of fixed income securities, to provide a substitute for purchasing or selling particular securities or to increase potential returns.The fund may elect to pay a fixed rate and receive a floating rate, or receive a fixed rate and pay a floating rate on a notional principal amount. The net interest received or paid on interest rate swap agreements is included within unrealized appreciation (depreciation) on swap contracts in the Statement of Assets and Liabilities. Interest rate swaps are valued daily and the change, if any, is recorded as an unrealized gain or loss in the Statement of Operations. When a swap contract is terminated early, the fund records a realized gain or loss equal to the difference between the current realized value and the expected cash flows.
The fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that the amount is positive.This risk is mitigated by having a master netting arrangement between the fund and the counterparty and by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty. Table 13 summarizes open interest rate swaps entered into by the BNY Mellon Municipal Opportunities Fund at August 31, 2010.
Credit Default Swaps: Credit default swaps involve commitments to pay a fixed interest rate in exchange for payment if a credit event affecting a third party (the referenced company, obligation or index) occurs. Credit
Table 13. | |||||
Unrealized | |||||
Reference | (Pay)/Receive | Appreciation | |||
Notional Amount ($) | Entity/Currency | Counterparty ($) | Fixed Rate (%) | Expiration | (Depreciation) ($) |
15,000,000 | USD—3 Month Libor | Citibank | 0.48 | 7/29/2020 | (75,380) |
The Funds 131
NOTES TO FINANCIAL STATEMENTS (continued)
events may include a failure to pay interest or principal, bankruptcy, or restructuring.The fund enters into these agreements to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. For those credit default swaps in which the fund is paying a fixed rate, the fund is buying credit protection on the instrument. In the event of a credit event, the fund would receive the full notional amount for the reference obligation. For those credit default swaps in which the fund is receiving a fixed rate, the fund is selling credit protection on the underlying instrument. The maximum payouts for these contracts are limited to the notional amount of each swap. Credit default swaps may involve greater risks than if the fund had invested in the refe rence obligation directly and are subject to general market risk, liquidity risk, counter-party risk and credit risk.
The maximum potential amount of future payments (undiscounted) that a fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement which may exceed the amount of unrealized appreciation or depreciation reflected in the Statement of Assets and Liabilities. Notional amounts of all credit default swap agreements are disclosed in the following chart, which summarizes open credit default swaps on index issues entered into by the fund. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, underlying securities comprising the referenced index, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the fund for the same referenced entity or entities. Table 14 summarizes open credit default swaps entered into by the BNY Mellon Municipal Opportunities Fund at August 31, 2010.
Table 14. | ||||||
Upfront | ||||||
Implied | Premiums | Unrealized | ||||
Notional | (Pay) Receive | Credit | Market | Receivable | Appreciation | |
Reference Obligation | Amount ($)2 | Fixed Rate (%) | Spread (%)3 | Value ($) | (Paid) ($) | (Depreciation) ($) |
Sale Contracts:1 | ||||||
Dow Jones CDX.NA.HY.14 | ||||||
Index 6/20/2015† | 5,000,000a | 1.00 | 2.34 | (237,262) | (238,788) | 1,526 |
Dow Jones CDX.NA.HY.14 | ||||||
Index 6/20/2020† | 10,000,000a | 1.00 | 2.45 | (755,975) | (632,760) | (123,215) |
Gross Unrealized Appreciation | 1,526 | |||||
Gross Unrealized Depreciation | (123,215) |
† Expiration Date |
Counterparties: |
a Goldman, Sachs & Co. |
1 If the fund is a seller of protection and a credit event occurs, as defined under the terms of the swap agreement, the fund will either (i) pay to the buyer of protection an |
amount equal to the notional amount of the swap and take delivery of the reference obligation or (ii) pay a net settlement amount in the form of cash or securities equal |
to the notional amount of the swap less the recovery value of the reference obligation. |
2 The maximum potential amount the fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as |
defined under the terms of the swap agreement. |
3 Implied credit spreads, represented in absolute terms, utilized in determining the market value as of the period end serve as an indicator of the current status of the |
payment/performance risk and represent the likelihood of risk of default for the credit derivative.The credit spread of a particular referenced entity reflects the cost of |
buying/selling protection and may include upfront payments required to be made to enter into the agreement.Wider credit spreads represent a deterioration of the |
referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.A credit spread |
identified as “Defaulted” indicates a credit event has occurred for the referenced entity. |
132
GAAP requires disclosure for (i) the nature and terms of the credit derivative, reasons for entering into the credit derivative, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative, (ii) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative, (iii) the fair
value of the credit derivative, and (iv) the nature of any recourse provisions and assets held either as collateral or by third parties. All required disclosures have been made and are incorporated within the current period as part of the Notes to the Statement of Investments and disclosures within this Note.
Table 15 summarizes accumulated net unrealized appreciation on investments for each fund at August 31, 2010.
Table 15. | ||||
Cost of | Gross | Gross | ||
Investments ($) | Appreciation ($) | Depreciation ($) | Net ($) | |
BNY Mellon National Intermediate Municipal Bond Fund | 1,568,526,820 | 112,405,057 | 4,210,887 | 108,194,170 |
BNY Mellon National Short-Term Municipal Bond Fund | 1,051,472,533 | 19,401,882 | 624,780 | 18,777,102 |
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund | 475,861,004 | 34,003,307 | 1,732,031 | 32,271,276 |
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | 383,325,893 | 28,654,314 | 252,348 | 28,401,966 |
BNY Mellon New York Intermediate Tax-Exempt Bond Fund | 196,999,845 | 15,201,197 | 75 | 15,201,122 |
BNY Mellon Municipal Opportunities Fund | 386,401,830 | 26,700,173 | 290 | 26,699,883 |
The Funds 133
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Trustees and Shareholders BNY Mellon Funds Trust:
We have audited the accompanying statements of assets and liabilities of BNY Mellon National Intermediate Municipal Bond Fund, BNY Mellon National Short-Term Municipal Bond Fund, BNY Mellon Pennsylvania Intermediate Municipal Bond Fund, BNY Mellon Massachusetts Intermediate Municipal Bond Fund, BNY Mellon NewYork IntermediateTax-Exempt Bond Fund, and BNY Mellon Municipal Opportunities Fund, each a series of BNY Mellon Funds Trust (collectively “the Funds”), including the statements of investments and statement of financial futures as of August 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or period in the two-year period then ended, and the financial highlights for each of the years or period in the five-year period then ended, except for the BNY Mellon NewYork Intermediate Tax-Exempt Bond Fund, which was for the eight-month period ended August 31, 2009.These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. With respect to the BNY Mellon New York IntermediateTax-Exempt Bond Fund, the financial highlights for each of the years in the three-year period ended December 31, 2007 were audited by other independent registered public accountants whose report thereon, dated February 28, 2008, expressed an unqualified opinion on the statement of changes in net assets and those financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.Our procedures included confirmation of securities owned as of August 31, 2010 by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BNY Mellon National Intermediate Municipal Bond Fund, BNY Mellon National Short-Term Municipal Bond Fund, BNY Mellon Pennsylvania Intermediate Municipal Bond Fund, BNY Mellon Massachusetts Intermediate Municipal Bond Fund, BNY Mellon New York IntermediateTax-Exempt Bond Fund, and BNY Mellon Municipal Opportunities Fund as of August 31, 2010, and the results of their operations, the changes in their net assets, and the financial highlights for the periods described in the first paragraph above, in conformity with U.S. generally accepted accounting principles.
New York, New York
October 26, 2010
134
IMPORTANT TAX INFORMATION (Unaudited)
BNY Mellon National Intermediate Municipal Bond Fund
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended August 31, 2010 as “exempt-interest dividends” (not generally subject to regular federal income tax), except $16,278 that is being designated as an ordinary income distribution for reporting purposes. Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2010 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for the 2010 calendar year on Form 1099-INT, both of which will be mailed by early 2011.
BNY Mellon National Short-Term Municipal Bond Fund
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended August 31, 2010 as “exempt-interest dividends” (not generally subject to regular federal income tax), except $48 that is being designated as an ordinary income distribution for reporting purposes. Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2010 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for the 2010 calendar year on Form 1099-INT, both of which will be mailed by early 2011.
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended August 31, 2010 as “exempt-interest dividends” (not generally subject to regular federal income tax), except $22,803 that is being designated as an ordinary income distribution for reporting purposes.Also the fund designates the maximum amount allowable but not less than $.0028 per share as a short-term capital gain
dividend in accordance with Sections 871(k)(2) and 881(e) of the Internal Revenue Code.Where required by Federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2010 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for the 2010 calendar year on Form 1099-INT, both of which will be mailed by early 2011.
BNY Mellon Massachusetts Intermediate Municipal Bond Fund
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended August 31, 2010 as “exempt-interest dividends” (not generally subject to regular federal income tax). Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2010 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for the 2010 calendar year on Form 1099-INT, both of which will be mailed by early 2011.
BNY Mellon New York Intermediate Tax-Exempt Bond Fund
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended August 31, 2010 as “exempt-interest dividends” (not generally subject to regular federal income tax). Also the fund designates the maximum amount allowable but not less than $.0001 per share as a capital gain dividend in accordance with Section 852(b)(3)(C) of the Internal Revenue Code. Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2010 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for the 2010 calendar year on Form 1099-INT, both of which will be mailed by early 2011.
The Funds 135
IMPORTANT TAX INFORMATION (Unaudited) (continued)
BNY Mellon Municipal Opportunities Fund
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended August 31, 2010 as “exempt-interest dividends” (not generally subject to regular federal income tax), except $328,993 that is being designated as an ordinary income distribution for reporting purposes. Also the fund designates the maximum amount allowable but not less than $.3649 per share as a short-term capital gain dividend in accordance with Sections 871(k)(2) and 881(e) of the Internal Revenue
Code. Also the fund designates the maximum amount allowable but not less than $.0070 per share as a capital gain dividend in accordance with Section 852(b)(3)(C) of the Internal Revenue Code.Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2010 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for the 2010 calendar year on Form 1099-INT, both of which will be mailed by early 2011.
136
INFORMATION ABOUT THE REVIEW AND APPROVAL |
OF EACH FUND’S INVESTMENT ADVISORY AGREEMENT (Unaudited) |
At a meeting of the Board of Trustees held on March 9-10, 2010, the Board considered the re-approval of the Trust’s Investment Advisory Agreement for another one year term, pursuant to which BNY Mellon Fund Advisers, a division of Dreyfus, provides the funds with investment advisory services.The Board members also considered the re-approval of the Trust’s Administration Agreement with The Bank of NewYork Mellon for another one year term, pursuant to which The Bank of New York Mellon provides the funds with administrative services.The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of NewYork Mellon pays Dreyfus for performing certain of these administrative services.The Board members who are not “interested persons” (as defined in the Act) of theTrust were assisted in their review by independent legal counsel and met with counsel i n executive session separate from representatives of Dreyfus.
Analysis of Nature, Extent and Quality of Services Provided to the Funds. The Board members received a presentation from representatives of Dreyfus regarding services provided to the funds, and discussed the nature, extent and quality of the services provided to the funds pursuant to the Investment Advisory Agreement. Dreyfus’ representatives reviewed the funds’ distribution of accounts, and noted the diversity of distribution of the funds and Dreyfus’ corresponding need for broad, deep and diverse resources to be able to provide ongoing shareholder services to each of the funds’ distribution channels. Dreyfus also provided the number of shareholder accounts in each fund, as well as each fund’s asset size.
The Board members also considered Dreyfus’ research and portfolio management capabilities and that Dreyfus also provides oversight of day-to-day fund operations and assistance in meeting legal and regulatory requirements, and Dreyfus’ extensive operational and compliance infrastructure. They also considered that The Bank of New York Mellon provides the funds with administrative and accounting services pursuant to the Trust’s Administration Agreement.The Board also considered Dreyfus’ brokerage
policies and practices and the standards applied in seeking best execution.
Comparative Analysis of the Funds’ Advisory Fees, Expense Ratios and Performance
The Board members reviewed reports prepared by Lipper, Inc., an independent provider of investment company data, which included information comparing each fund’s advisory fee and expense ratio with a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), in each case in the same category applicable to the fund, that were selected by Lipper. The Board members also reviewed reports prepared by Lipper which included information comparing each fund’s performance with that of a group of comparable funds (the “Performance Group”) composed of the same funds included in the Expense Group and with that of a broader group of funds (the “Performance Universe”), in each case in the same category applicable to the fund, that were selected by Lipper. Included in these reports were comparisons of contractual and actual advisory fee rates, total operating expenses, total return performance and yield. Dreyfus also provided a comparison of each fund’s calendar year total returns to the performance of the fund’s bench-mark.The Board was provided with a description of the methodology Lipper used to select each Expense Group and Expense Universe and each Performance Group and Performance Universe.
BNY Mellon National Intermediate Municipal Bond Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the second quartile of the Expense Group and Expense Universe (below the respective medians of the Expense Group and Expense Universe).The Board also considered that BNY Mellon Fund Advisers contractually agreed, until
The Funds 137
INFORMATION ABOUT THE REVIEW AND APPROVAL OF EACH FUND’S |
INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued) |
September 30, 2010, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of Class M shares and Investor shares (excluding taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) do not exceed 0.69% and 0.94%, respectively.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that the fund’s total return performance was above the respective medians of the Performance Group and Performance Universe for the reported periods ended January 31, 2010. The Board also noted that the fund’s yield was below the medians of the Performance Group for each of the 1-year periods ended January 31st for each of the reported periods, except 2007, and was equal to the median for the 1-year period ended January 31, 2007, and was above the medians of the Performance Universe for each of the 1-year periods ended January 31st for each of the reported periods.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund. The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund���s advisory fees.
BNY Mellon National Short-Term Municipal Bond Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons. The Board reviewed the range of advisory fees and expense ratios
of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile of the Expense Group and Expense Universe (above the respective medians of the Expense Group and Expense Universe).
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that for periods ended January 31, 2010, the fund’s total return performance was below the median of the Performance Group for the 1-year period, was above the medians for the 2-, 3- and 5-year periods and was equal to the median for the 4-year period, and was above the medians of the Performance Universe for the reported periods. The Board also noted that the fund’s yield was below the medians of the Performance Group for each of the 1-year periods ended January 31st for each of the reported periods, except 2003, and was equal to the median for the 1-year period ended January 31, 2003, and was above the medians of the Performance Universe for each of the 1-year periods ended January 31st for 2002 through 2005, 2009 and 2010, was below the medians for each of the 1-year periods ended January 31st for 2006 and 2007 and was equal to the median for the 1-year period ended January 31, 2008.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by a mutual fund managed by Dreyfus or its affiliates with a similar investment objective and similar policies and strategies, and included within the same Lipper category, as the fund (the “Similar Fund”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided. The Board members considered the relevance of the fee information provided for the Similar Fund to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
138
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratio of the funds in the Expense Group and in the Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile of the Expense Group and Expense Universe (above the respective medians of the Expense Group and Expense Universe).
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that the fund’s total return performance was above the medians for the Performance Group and Performance Universe for the reported periods ended January 31, 2010. The Board also noted that the fund’s yield was below the medians of the Performance Group for each of the 1-year periods ended January 31st for 2002 and 2003, and was above the medians for each of the 1-year periods ended January 31st for 2004 through 2010, and was above the medians of the Performance Universe for each of the 1-year periods ended 31st for each of the reported periods, except 2002, and was below the median for the 1-year period ended January 31, 2002.
Representatives of Dreyfus noted that there were no other mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund, nor other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.
BNY Mellon Massachusetts Intermediate Municipal Bond Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted
that the fund’s expense ratio ranked in the second quartile of the Expense Group and Expense Universe (below the respective medians of the Expense Group and Expense Universe).
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that for periods ended January 31, 2010, the fund’s total return performance was below the median of the Performance Group for the 1-year period and was above the medians for the 2-, 3-, 4-, 5- and 10-year periods, and was above the medians of the Performance Universe for the reported periods.The Board also noted that the fund’s yield was above the medians of the Performance Group for each of the 1-year periods ended January 31st for 2001 through 2008 and 2010 and was below the median for the 1-year period ended January 31, 2009, and was above the medians of the Performance Universe for each of the 1-year periods ended January 31st for each of the reported periods.
Representatives of Dreyfus noted that there were no other mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund, nor other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.
BNY Mellon New York Intermediate Tax-Exempt Bond Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the second quartile of the Expense Group and Expense Universe (below the respective medians of the Expense Group and Expense Universe).The Board also considered that BNY Mellon Fund Advisers contractually agreed, until
The Funds 139
INFORMATION ABOUT THE REVIEW AND APPROVAL OF EACH FUND’S |
INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued) |
September 30, 2010, to waive receipt of its fees and/or assume the expenses of the fund so that the direct expenses of neither class of the fund’s shares (excluding shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) exceed 0.59%.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons.The Board noted that for periods ended January 31, 2010, the fund’s total return performance was below the medians of the Performance Group for the 1- and 10-year periods and was above the medians for the 2-, 3-, 4- and 5-year periods, and was below the median of the Performance Universe for 1-year period and was above the medians for the 2-, 3-, 4-, 5- and 10-year periods.The Board also noted that the fund’s yield was below the medians of the Performance Group for each of the 1-year periods ended January 31st for 2001 through 2003 and 2005 through 2010 and was above the median for the 1-year period ended January 31, 2004, and was below the medians of the Performance Universe for each of the 1-year periods ended January 31st for 2001, 2002 and 2006 and was above the medians for each of the 1-year periods end ed January 31st for 2003 through 2005 and 2007 through 2010.
Representatives of Dreyfus noted that there were no other mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund, nor other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.
BNY Mellon Municipal Opportunities Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the fourth quartile of the Expense Group and Expense Universe (above the respective medians of the Expense Group and Expense Universe). The Board considered the contractual undertaking by BNY Mellon Fund Advisers which
reduced the fund’s total expenses for the measurement period from 0.87% to 0.75% for Class M shares and from 1.11% to 0.99% for Investor shares for the fund’s fiscal year ended August 31, 2009, and noted that this undertaking is no longer in effect.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that the fund’s total return performance was above the medians of the Performance Group and Performance Universe for the reported period ended January 31, 2010. The Board also noted that the fund’s yield was below the medians of the Performance Group and Performance Universe for the 1-year period ended January 31, 2010.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives and similar policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund.The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided. The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
Analysis of Profitability and Economies of Scale. Dreyfus’ representatives reviewed the dollar amount of expenses allocated and profit received by Dreyfus and its affiliates with respect to each fund and the method used to determine such expenses and profit.The Board previously had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus mutual fund complex. The Board members also had been informed that the methodology had been reviewed by an independent registered public account-
140
ing firm which, like the consultant, found the methodology to be reasonable. The consulting firm also analyzed where any economies of scale might emerge in connection with the management of the funds. The Board members evaluated the profitability analysis in light of the relevant circumstances for each fund, including any decline in assets.The Board members also considered potential benefits to Dreyfus and its affiliates, including BNY Mellon Fund Advisers, from acting as investment adviser to the funds and noted that there were no soft dollar arrangements with respect to trading each fund’s portfolio.
It was noted that the Board members should consider Dreyfus’ profitability with respect to each fund as part of their evaluation of whether the fees under the Investment Advisory Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services. It was noted that the profitability percentage for managing each fund was within ranges determined by appropriate court cases to be reasonable given the services rendered and that the profitability percentage for managing each fund was not unreasonable given the services provided.The Board also noted the fee waiver and expense reimbursement arrangements pertaining to BNY Mellon National Intermediate Municipal Bond Fund, BNY Mellon New York Intermediate Tax-Exempt Bond Fund and BNY Mellon Municipal Opportunities Fund and their effect on the profitability of Dreyfus.
At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the continuation of the Trust’s Investment Advisory Agreement with respect to the funds. Based on the discussions and considerations as described above, the Board made the following conclusions and determinations with respect to the funds:
The Board concluded that the nature, extent and quality of the services provided by Dreyfus to each fund are adequate and appropriate.
With respect to BNY Mellon National Intermediate Municipal Bond Fund and BNY Mellon Municipal Opportunities Fund, the Board was satisfied with each fund’s overall performance.
With respect to BNY Mellon National Short-Term Municipal Bond Fund and BNY Mellon New York Intermediate Tax-Exempt Bond Fund, the Board was generally satisfied with each fund’s overall performance.
With respect to BNY Mellon Pennsylvania Intermediate Municipal Bond Fund and BNY Mellon Massachusetts Intermediate Municipal Bond Fund, the Board was satisfied with each fund’s performance.
The Board concluded that the fee paid to Dreyfus by each fund was reasonable in light of the services pro- vided, comparative performance and expense and advisory fee information, costs of the services provided and profits to be realized and benefits derived or to be derived by Dreyfus and its affiliates from its relation- ship with the fund.
The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in con- nection with the management of the funds had been adequately considered by Dreyfus in connection with the advisory fee rate charged to each fund, and that, to the extent in the future it were to be determined that material economies of scale had not been shared with a fund, the Board would seek to have those economies of scale shared with the fund.
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 Trust’s Investment Advisory Agreement and Administration Agreement with respect to the funds was in the best interests of each fund and its respective shareholders.
The Funds 141
BOARD MEMBERS INFORMATION (Unaudited)
142
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, NewYork 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-645-6561. For individual account holders for Private Wealth Management clients, please contact your account officer or call 1-888-281-7350.
The Funds 143
OFFICERS OF THE TRUST (Unaudited)
144
The Funds 145
NOTES
For More Information
Ticker Symbols: | |||
BNY Mellon National Intermediate Municipal Bond Fund | Class M: MPNIX | Investor: MINMX | Dreyfus Premier: MNMBX |
BNY Mellon National Short-Term Municipal Bond Fund | Class M: MPSTX | Investor: MINSX | |
BNY Mellon Pennsylvania Intermediate Municipal Bond Fund | Class M: MPPIX | Investor: MIPAX | |
BNY Mellon Massachusetts Intermediate Municipal Bond Fund | Class M: MMBMX | Investor: MMBIX | Dreyfus Premier: MMBPX |
BNY Mellon New York Intermediate Tax-Exempt Bond Fund | Class M: MNYMX | Investor: MNYIX | |
BNY Mellon Municipal Opportunities Fund | Class M: MOTMX | Investor: MOTIX |
Telephone Wealth Management (WM) Clients, please contact your Account Officer or call 1-888-281-7350. Brokerage Clients of BNY Mellon Wealth Advisors (BNYMWA), please contact your financial representative or call 1-800-830-0549, Option 2. Individual Account holders, please call Dreyfus at 1-800-645-6561.
Mail WM Clients, write to your Account Officer, c/o The Bank of New York Mellon, One Mellon Bank Center, Pittsburgh, PA 15258 BNYMWA Brokerage Clients, write to your financial representative, P.O. Box 9012, Hicksville, NY 11802–9012 Individual Account Holders, write to: BNY Mellon Funds, P.O. Box 55268, Boston, MA 02205–8502
The funds file their 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 funds’ 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.
Information regarding how the funds voted proxies relating to portfolio securities for the most recent 12-month period ended June 30 is available on the SEC’s website at http://www.sec.gov and without charge, upon request, by calling 1-800-645-6561.
© 2010 MBSC Securities Corporation
MFTAR0810-MB
The BNY Mellon Funds
BNY Mellon Money Market Fund |
BNY Mellon National Municipal Money Market Fund |
ANNUAL REPORT | August 31, 2010 |
Contents | |
The Funds | |
Letter from the President | 2 |
Discussion of Funds’ Performance | |
BNY Mellon Money Market Fund | 3 |
BNY Mellon National Municipal | |
Money Market Fund | 5 |
Understanding Your Fund’s Expenses | 7 |
Comparing Your Fund’s Expenses | |
With Those of Other Funds | 7 |
Statements of Investments | 8 |
Statements of Assets and Liabilities | 18 |
Statements of Operations | 19 |
Statements of Changes in Net Assets | 20 |
Financial Highlights | 21 |
Notes to Financial Statements | 25 |
Report of Independent Registered | |
Public Accounting Firm | 31 |
Important Tax Information | 32 |
Information About the Review | |
and Approval of Each Fund’s | |
Investment Advisory Agreement | 33 |
Board Members Information | 36 |
Officers of the Fund | 38 |
For More Information
Back cover
The views expressed herein are current to the date of this report. These views and the composition of the funds’ portfolios are subject to change at any time based on market and other conditions.
Not FDIC-Insured
Not Bank-Guaranteed
May Lose Value
The Funds
LETTER FROM
THE PRESIDENT
Dear Shareholder:
We are pleased to present to you this annual report for the BNY Mellon Funds Trust, covering the reporting period ended August 31, 2010.
As the summer of 2010 cooled off, so did the pace of the U.S. and global economic recoveries. Former engines of growth appeared to stall as large parts of the developed world remained indebted and burdened by weak housing markets.While some emerging markets have posted more impressive growth rates, their developing economies have not yet provided a meaningful boost to global economic activity.The result has been a subpar U.S. recovery with stubbornly high unemployment rates, low levels of consumer confidence and muted corporate investment.
We do not expect a return to recessionary conditions, thanks to record low short-term interest rates and quantitative easing from the Federal Reserve Board (the “Fed”). Indeed, with inflationary pressures currently negligible, we do not expect the Fed to raise short-term interest rates anytime soon, and money market yields seem likely to stay near historical lows.We have identified higher return opportunities in the stock and bond markets, stemming from improved valuations, healthy corporate balance sheets, better-than-expected earnings and the global search for yield.As always, your portfolio manager is best-suited to help you evaluate and adjust your current asset allocations and potentially seize opportunities in this slow-growth economic context.
For information about how each fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance for each fund.
Thank you for your continued confidence and support.
Christopher E. Sheldon
President
BNY Mellon Funds Trust
September 15, 2010
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by J. Christopher Nicholl and John F. Flahive, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon Money Market Fund’s Class M shares produced a yield of 0.07%, and Investor shares produced a yield of 0.00%.Taking into account the effects of compounding, the fund’s Class M and Investor shares also produced effective yields of 0.07% and 0.00%, respectively.1
With economic growth moderating, inflationary pressures minimal and the overnight federal funds rate remaining unchanged in a range between 0.00% and 0.25% throughout the reporting period, yields of money market instruments stayed at historically low levels.
The Fund’s Investment Approach
The fund seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.To pursue its goal, the fund invests in a diversified portfolio of high-quality, short-term debt securities, including U.S. government securities; certificates of deposit, time deposits, bankers’ acceptances and other short-term domestic or foreign bank obligations; repurchase agreements; high-grade commercial paper and other short-term corporate obligations; and taxable municipal obligations. Normally, the fund invests at least 25% of its net assets in bank obligations.
Money Market Yields Stayed at Historical Lows
The reporting period began in the midst of an economic recovery: after four consecutive quarters of contraction, U.S. GDP returned to growth during the third
quarter of 2009, and the economy continued to expand throughout the reporting period. Although unemployment levels remained stubbornly high, manufacturing activity rebounded, helping to bolster confidence among consumers, businesses and investors. In addition, credit markets thawed in response to massive government intervention and improving investor confidence.
Still, the economic rebound generally has proved to be milder than most previous recoveries, and inflationary pressures have been negligible. In addition, during the spring of 2010, several new developments threatened the U.S. and global economic recoveries, causing economic growth to moderate between the first and second quarters of the year. Europe was roiled by a sovereign debt crisis when Greece found itself unable to finance a heavy debt burden, requiring intervention from the International Monetary Fund and the European Union. Robust economic growth and soaring property values in China seemed to spark local inflationary pressures, and investors worried that higher interest rates and other remedial measures might dampen a major engine of global growth. In the United States, mixed data regarding unemployment and housing markets suggested that these stubborn economic headwinds might continue to constrain alread y mild domestic growth.
In light of these ongoing challenges, the Federal Reserve Board (the “Fed”) left short-term interest rates unchanged from the historically low range it first established in December 2008. Longer-term interest rates generally trended downward over the course of the reporting period as credit markets continued to thaw and investors responded to reports of subpar economic growth and negligible inflationary pressures.
The Funds 3
DISCUSSION OF FUND PERFORMANCE (continued)
Maintaining a Conservative Posture
We proceeded cautiously in this challenging environment. Early in the reporting period, relatively narrow yield differences along the market’s maturity spectrum gave us little incentive to purchase longer-dated money market instruments, resulting in a weighted average maturity that was shorter than historical and industry averages.We found a number of opportunities early in the reporting period among short-term taxable municipal securities—including those issued as part of the federal Build America Bonds program—that further contributed to the fund’s relatively short weighted average maturity.
However, the fund’s weighted average maturity gradually increased over the remainder of the reporting period as we redeployed assets away from taxable municipal securities, and steeper yield differences along the market’s maturity range during the summer of 2010 produced more opportunities to pick up additional yield among longer-dated money market instruments.
Safety and Liquidity Remain Paramount
Although we remain concerned regarding recent economic weakness, we do not expect a return to recessionary conditions. Indeed, inflationary pressures have
remained minimal, and the Fed has repeatedly indicated that it is likely to keep short-term interest rates near historical lows for an extended period in order to stimulate higher rates of economic growth. Therefore, as we have for some time, we believe the prudent course continues to be a conservative investment strategy with an emphasis on preservation of capital and liquidity.
September 15, 2010
An investment in the fund is not insured or guaranteed by the FDIC or any | |
other government agency. Although the fund seeks to preserve the value of | |
your investment at $1.00 per share, it is possible to lose money by investing | |
in the fund. | |
Short-term corporate and asset-backed securities holdings, while rated in the | |
highest rating category by one or more NRSRO (or unrated, if deemed of | |
comparable quality by Dreyfus), involve credit and liquidity risks and risk of | |
principal loss. | |
1 | Effective yield is based upon dividends declared daily and reinvested monthly. |
Past performance is no guarantee of future results.Yields fluctuate.Yields | |
provided reflect the absorption of certain fund expenses by the investment | |
adviser pursuant to an undertaking, which is voluntary and temporary, not | |
contractual, and can be terminated at any time without notice. Had these | |
expenses not been absorbed, fund yields would have been lower, and in some | |
cases, 7-day yields during the reporting period would have been negative | |
absent the expense absorption. |
4
DISCUSSION OF
FUND PERFORMANCE
For the period of September 1, 2009, through August 31, 2010, as provided by J. Christopher Nicholl and John F. Flahive, Portfolio Managers
Fund and Market Performance Overview
For the 12-month period ended August 31, 2010, BNY Mellon National Municipal Money Market Fund’s Class M shares produced an annualized yield of 0.05%, and Investor shares produced an annualized yield of 0.00%. Taking into account the effects of compounding, the fund’s Class M and Investor shares also produced annualized effective yields of 0.05% and 0.00%, respectively.1
Money market yields remained at historical lows as U.S. economic growth moderated and inflationary pressures remained negligible, prompting the Federal Reserve Board (the “Fed”) to maintain an aggressively accommodative monetary policy. Robust demand for a limited supply of tax-exempt money market instruments also contributed to low yields.
The Fund’s Investment Approach
The fund seeks as high a level of current income exempt from federal income tax as is consistent with the preservation of capital and maintenance of liquidity.To pursue its goal, the fund invests at least 80% of its assets in short-term municipal obligations that provide income exempt from federal income tax. Among these are municipal notes, short-term municipal bonds, tax-exempt commercial paper and municipal leases. The fund may invest up to 20% of its total assets in taxable money market securities, such as U.S. government obligations, bank and corporate obligations and commercial paper.The fund also may invest in custodial receipts.
Money Market Yields Hovered Near Historical Lows
Manufacturing activity continued to rebound early in the reporting period, helping to bolster confidence among consumers, businesses and investors. Still, the economic recovery throughout the reporting period proved to be milder than most previous recoveries, as unemployment remained stubbornly high and housing markets have yet to recover meaningfully. Indeed, the domestic economic growth rate, while still positive, moderated in the second quarter of 2010 compared to the first quarter of the year.
The U.S. and global economies were constrained by several new influences during the reporting period, including turmoil in European sovereign debt markets and inflationary pressures in China.These global developments added to ongoing economic concerns regarding lackluster consumer spending and high unemployment levels in the United States. In light of these challenges, the Fed retained the aggressively accommodative monetary policy it first established in December 2008.
In the municipal securities market, the supply of variable-rate demand notes (VRDNs) and tender option bonds remained relatively low, due mainly to tighter lending restrictions and credit-rating downgrades. Instead, issuers continued to turn to longer-term bonds, including securities through the federally subsidized Build America Bonds program, which diverted a substantial amount of new municipal issuance to the taxable bond market. Meanwhile, demand for tax-exempt money market instruments remained robust from investors concerned about potential tax increases, putting additional downward pressure on already low tax-exempt money market yields.
Finally, most states and municipalities continued to face fiscal challenges stemming from reduced tax receipts and greater demand for services, further limiting the supply of instruments meeting our investment criteria.
Maintaining a Conservative Investment Posture
We proceeded cautiously in this challenging environment, focusing primarily on high-quality municipal obligations. Over the course of the reporting period,
The Funds 5
DISCUSSION OF FUND PERFORMANCE (continued)
we found opportunities meeting our investment criteria at the shorter end of the market’s maturity spectrum, where we gradually increased the fund’s holdings of VRDNs on which yields are reset daily or weekly. Conversely, the fund’s exposure to tax-exempt commercial paper and municipal notes declined modestly. However, we continued to find opportunities for what we believed were relatively attractive yields among municipal notes when California and Florida came to market with new issues at prices designed to attract investor interest in these economically hard-hit states.
We set the fund’s weighted average maturity in a range that was roughly in line with industry averages. In addition, we prepared the fund for new Securities and Exchange Commission regulations that took effect during the reporting period, including a reduction in the fund’s maximum weighted average maturity from 90 days to 60 days.
Safety and Liquidity Remain Paramount
The Fed repeatedly has indicated that it is likely to keep short-term interest rates near historical lows for an extended period to stimulate stronger economic growth. Therefore, we believe the prudent course continues to be an emphasis on preservation of capital and liquidity.
However, we expect the supply of newly issued tax-exempt money market instruments to trend higher in the months ahead, which could support higher yields.We also are mindful that when the Fed eventually begins to raise the federal funds rate, a relatively defensive maturity-management strategy may enable the fund to capture higher yields more quickly as they become available, and we are prepared to adjust the fund’s duration management strategy as market conditions evolve.
September 15, 2010
An investment in the fund is not insured or guaranteed by the FDIC or any | |
other government agency.Although the fund seeks to preserve the value of | |
your investment at $1.00 per share, it is possible to lose money by investing | |
in the fund. | |
Short-term municipal securities holdings, while rated in the highest rating | |
category by one or more NRSRO (or unrated, if deemed of comparable quality | |
by Dreyfus), involve credit and liquidity risks and risk of principal loss. | |
1 | Effective yield is based upon dividends declared daily and reinvested monthly. |
Past performance is no guarantee of future results.Yields fluctuate. Income | |
may be subject to state and local taxes, and some income may be subject to | |
the federal alternative minimum tax (AMT) for certain investors.Yields | |
provided reflect the absorption of certain fund expenses by the investment | |
adviser pursuant to an undertaking, which is voluntary and temporary, not | |
contractual, and can be terminated at any time without notice. Had these | |
expenses not been absorbed, fund yields would have been lower, and in some | |
cases, 7-day yields during the reporting period would have been negative | |
absent the expense absorption. |
6
UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial advisor.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in each class of each BNY Mellon money market fund from March 1, 2010 to August 31, 2010. 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 August 31, 2010 | ||
Class M Shares | Investor Shares | |
BNY Mellon Money Market Fund | ||
Expenses paid per $1,000† | $ 1.46 | $ 1.81 |
Ending value (after expenses) | $1,000.30 | $1,000.00 |
BNY Mellon National Municipal Money Market Fund | ||
Expenses paid per $1,000† | $ 1.46 | $ 1.87 |
Ending value (after expenses) | $1,000.40 | $1,000.00 |
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 August 31, 2010 | ||
Class M Shares | Investor Shares | |
BNY Mellon Money Market Fund | ||
Expenses paid per $1,000† | $ 1.48 | $ 1.84 |
Ending value (after expenses) | $1,023.74 | $1,023.39 |
BNY Mellon National Municipal Money Market Fund | ||
Expenses paid per $1,000† | $ 1.48 | $ 1.89 |
Ending value (after expenses) | $1,023.74 | $1,023.34 |
† Expenses are equal to the BNY Mellon Money Market Fund’s annualized expense ratio of .29% for Class M and .36% for Investor Shares and BNY Mellon National |
Municipal Money Market Fund, .29% for Class M and .37% for Investor Shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the |
one-half year period). |
The Funds | 7 |
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon Money Market Fund | ||||
Principal | Principal | |||
Bond Anticipation Notes—2.5% Amount ($) | Value ($) | Commercial Paper (continued) | Amount ($) | Value ($) |
Groton CT | ||
0.75%, 1/26/11 | 15,400,000 | 15,410,468 |
Winchester MA | ||
1.00%, 12/30/10 | 12,020,000 | 12,040,417 |
Total Bond Anticipation Notes | ||
(cost $27,450,885) | 27,450,885 | |
Negotiable Bank Certificates | ||
of Deposit—2.3% | ||
Fortis Bank SA/NV (Yankee) | ||
0.47%, 11/2/10 | ||
(cost $25,000,000) | 25,000,000 | 25,000,000 |
Commercial Paper—44.2% | ||
Abbey National NA | ||
0.43%—0.73%, | ||
9/27/10—2/25/11 | 45,000,000 | 44,920,453 |
Argento Variable Funding LLC | ||
0.38%, 10/28/10 | 20,000,000 a | 19,987,967 |
Banco Bilbao | ||
Vizcaya Argentaria | ||
0.64%—0.75%, | ||
9/22/10—2/7/11 | 43,000,000 a | 42,916,346 |
Bank of Nova Scotia | ||
0.19%, 9/1/10 | 40,000,000 | 40,000,000 |
Barclays Bank PLC | ||
0.60%, 12/21/10 | 25,000,000 | 24,953,750 |
CRC Funding | ||
0.52%, 9/15/10 | 25,000,000 a | 24,994,944 |
Crown Point Capital Co. LLC | ||
0.55%, 11/2/10 | 25,000,000 a | 24,976,319 |
Fortis Funding LLC | ||
0.20%, 9/1/10 | 25,000,000 a | 25,000,000 |
Govco | ||
0.62%, 11/16/10 | 20,000,000 a | 19,973,822 |
Intesa Funding LLC | ||
0.50%—0.61%, | ||
9/8/10—10/6/10 | 50,000,000 | 49,982,743 |
Lloyds TSB Bank | ||
0.21%, 9/1/10 | 20,000,000 | 20,000,000 |
Natexis U.S. Financial Co. | ||
0.65%, 9/1/10 | 25,000,000 | 25,000,000 |
Natixis | ||
0.17%, 9/1/10 | 25,000,000 a | 25,000,000 |
Skandinaviska Enskilda Banken | ||
0.39%, 10/13/10 | 25,000,000 a | 24,988,625 |
Societe Generale N.A. Inc. | ||
0.23%, 9/1/10 | 50,000,000 | 50,000,000 |
Unicredit U.S. Finance Inc. | ||
0.60%, 10/1/10 | 20,000,000 a | 19,990,000 |
Total Commercial Paper | ||
(cost $482,684,969) | 482,684,969 | |
Commercial Paper– | ||
Municipal—9.1% | ||
Rutgers State University NJ | ||
0.68%, 9/8/10 | 34,600,000 | 34,600,000 |
Tennessee | ||
0.38%—0.43%, 9/8/10 | 14,927,000 | 14,927,000 |
Tennessee School Bond Authority | ||
0.35%, 9/14/10 | 7,325,000 | 7,325,000 |
Vermont Economic | ||
Development Authority | ||
0.47%, 10/12/10 | 42,300,000 | 42,300,000 |
Total Commercial Paper—Municipal | ||
(cost $99,152,000) | 99,152,000 | |
General Obligation Notes—3.8% | ||
Hudson County NJ | ||
Improvement Authority | ||
2.25%, 8/31/11 | 14,700,000 | 14,808,189 |
Kent County MI | ||
1.00%, 4/1/11 | 27,000,000 | 27,040,383 |
Total General Obligation Notes | ||
(cost $41,848,572) | 41,848,572 |
8
BNY Mellon Money Market Fund (continued) | ||||||
Variable Rate | Principal | Principal | ||||
Demand Notes—38.0% | Amount ($) | Value ($) | Amount ($) | Value ($) | ||
Andrew W. Mellon Foundation NY | Nassau County NY Industrial | |||||
0.35%, 9/7/10 | 23,950,000 b | 23,950,000 | Development Authority | |||
Athens Clarke County GA | 0.60%, 9/7/10 | 4,875,000 b | 4,875,000 | |||
0.25%, 9/1/10 | 5,480,000 b | 5,480,000 | New Mexico Finance Authority | |||
Chicago IL Midway Airport | 0.28%, 9/7/10 | 10,000,000 b | 10,000,000 | |||
0.25%—0.29%, 9/1/10 | 21,475,000 b | 21,475,000 | New York City NY Housing | |||
Cleveland OH Airport System | Development Corporation | |||||
0.29%—0.36%, 9/7/10 | 8,370,000 b | 8,370,000 | 0.29%, 9/7/10 | 7,730,000 b | 7,730,000 | |
Colorado Educational and | New York City NY Housing | |||||
Cultural Facilities Authority | Development Corporation | |||||
0.34%, 9/7/10 | 44,627,000 b | 44,627,000 | 0.37%, 9/7/10 | 37,565,000 b | 37,565,000 | |
Denver CO | New York City | |||||
0.45%, 9/7/10 | 20,000,000 b | 20,000,000 | NY Transitional | |||
Fulton County GA | Finance Authority | |||||
0.45%, 9/7/10 | 2,400,000 b | 2,400,000 | 0.39%, 9/7/10 | 48,500,000 b | 48,500,000 | |
Greensboro NC | Palm Bay FL | |||||
0.35%, 9/7/10 | 7,735,000 b | 7,735,000 | 0.50%, 9/7/10 | 34,195,000 b | 34,195,000 | |
Indiana Health and | Portland ME | |||||
Educational Facility | 0.35%, 9/7/10 | 30,100,000 b | 30,100,000 | |||
0.60%, 9/7/10 | 35,000,000 b | 35,000,000 | Roanoke Rapids NC | |||
Meharry Medical College TN | 0.35%, 9/7/10 | 10,820,000 b | 10,820,000 | |||
0.45%, 9/7/10 | 6,565,000 b | 6,565,000 | Texas | |||
Michigan Strategic Fund | 0.35%, 9/7/10 | 19,780,000 b | 19,780,000 | |||
0.33%, 9/7/10 | 13,500,000 b | 13,500,000 | Total Variable Rate | |||
Minnesota Higher Education | Demand Notes | |||||
Coordinating Board | (cost $415,667,000) | 415,667,000 | ||||
0.28%, 9/7/10 | 11,000,000 b | 11,000,000 | Total Investments | |||
Missouri Development Finance Board | (cost $1,091,803,426) | 99.9% | 1,091,803,426 | |||
0.39%, 9/7/10 | 5,400,000 b | 5,400,000 | ||||
Cash and Receivables (Net) | .1% | 1,279,828 | ||||
Missouri Development Finance Board | ||||||
0.45%, 9/7/10 | 6,600,000 b | 6,600,000 | Net Assets | 100.0% | 1,093,083,254 |
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 August 31, 2010, these securities amounted to $227,828,023 or 20.8% of net assets. |
b Variable rate security—interest rate subject to periodic change. |
Portfolio Summary (Unaudited) † | |||
Value (%) | Value (%) | ||
Banking | 40.1 | City-Municipal General Obligations | 5.3 |
Education | 7.5 | Housing | 4.1 |
Asset-Backed/Multi-Seller Programs | 6.4 | Health Care | 3.8 |
State General Obligations | 5.6 | Other | 21.7 |
Special Tax | 5.4 | 99.9 |
† Based on net assets. |
See notes to financial statements. |
The Funds | 9 |
STATEMENT OF INVESTMENTS
August 31, 2010
BNY Mellon National Municipal Money Market Fund | ||||
Coupon | Maturity | Principal | ||
Short-Term Investments—99.9% | Rate (%) | Date | Amount ($) | Value ($) |
Alabama—1.6% | ||||
Mobile Infirmary Health System Special Care Facilities | ||||
Financing Authority, Revenue (Infirmary Health | ||||
System, Inc.) (LOC; Bank of Nova Scotia) | 0.28 | 9/7/10 | 25,000,000 a | 25,000,000 |
California—8.7% | ||||
California Infrastructure and Economic Development Bank, | ||||
Revenue, Refunding (Los Angeles County Museum of | ||||
Natural History Foundation) (LOC; Allied Irish Banks) | 1.00 | 9/1/10 | 17,000,000 a | 17,000,000 |
California School Cash Reserve Program Authority, Revenue | 2.50 | 12/30/10 | 23,025,000 | 23,137,422 |
California School Cash Reserve Program Authority, Revenue | 2.00 | 6/1/11 | 30,860,000 | 31,111,486 |
California Statewide Communities Development Authority, | ||||
Revenue (John Muir Health) (LOC; UBS AG) | 0.27 | 9/7/10 | 10,000,000 a | 10,000,000 |
California Statewide Communities Development | ||||
Authority, Revenue, CP (Kaiser Permanente) | 0.37 | 3/10/11 | 25,000,000 | 25,000,000 |
Los Angeles, GO Notes, TRAN | 2.00 | 5/31/11 | 29,000,000 | 29,257,626 |
Colorado—2.9% | ||||
Colorado School of Mines Board of Trustees, | ||||
Enterprise Revenue, Refunding (LOC; Dexia Credit Locale) | 0.32 | 9/7/10 | 26,325,000 a | 26,325,000 |
Commerce City Northern Infrastructure General | ||||
Improvement District, GO Notes (LOC; U.S. Bank NA) | 0.31 | 9/7/10 | 6,150,000 a | 6,150,000 |
Commerce City Northern Infrastructure General Improvement | ||||
District, GO Notes, Refunding (LOC; U.S. Bank NA) | 0.31 | 9/7/10 | 9,390,000 a | 9,390,000 |
Parker Automotive Metropolitan | ||||
District, GO Notes (LOC; U.S. Bank NA) | 0.31 | 9/7/10 | 3,200,000 a | 3,200,000 |
Connecticut—.4% | ||||
Connecticut Health and Educational Facilities | ||||
Authority, Revenue (Yale University Issue) | 0.22 | 9/1/10 | 6,000,000 a | 6,000,000 |
Delaware—.7% | ||||
Delaware Health Facilities Authority, | ||||
Revenue (Christiana Care Health Services) | 0.23 | 9/1/10 | 10,500,000 a | 10,500,000 |
District of Columbia—2.9% | ||||
District of Columbia, GO Notes, Refunding (LOC; TD Bank) | 0.32 | 9/7/10 | 5,900,000 a | 5,900,000 |
District of Columbia, Multimodal Revenue | ||||
(Medlantic/Helix Issue) (LOC; Wachovia Bank) | 0.25 | 9/1/10 | 38,400,000 a | 38,400,000 |
Florida—9.2% | ||||
Alachua County Health Facilities Authority, Continuing | ||||
Care Retirement Community Revenue (Oak Hammock | ||||
at the University of Florida Project) (LOC; Bank of Scotland) | 0.27 | 9/1/10 | 200,000 a | 200,000 |
Citizens Property Insurance Corporation, | ||||
High-Risk Account Senior Secured Revenue | 5.00 | 6/1/11 | 21,575,000 | 22,165,866 |
Jacksonville, Transportation Revenue (LOC; Wachovia Bank) | 0.29 | 9/7/10 | 13,000,000 a | 13,000,000 |
Jacksonville Health Facilities Authority, HR, Refunding | ||||
(Baptist Medical Center Refunding) (LOC; Bank of America) | 0.25 | 9/1/10 | 12,700,000 a | 12,700,000 |
10
BNY Mellon National Municipal Money Market Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Short-Term Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Florida (continued) | ||||
Orange County Health Facilities Authority, HR (Orlando | ||||
Regional Healthcare System) (Insured; Assured Guaranty | ||||
Municipal Corp. and Liquidity Facility; Dexia Credit Locale) | 0.30 | 9/1/10 | 11,580,000 a | 11,580,000 |
Orlando Utilities Commission, Utility System Revenue | ||||
(Liquidity Facility; Banco Bilbao Vizcaya Argenteria) | 0.30 | 9/7/10 | 50,000,000 a | 50,000,000 |
Palm Beach County, IDR (Gulfstream Goodwill | ||||
Industies, Inc. Project) (LOC; Wells Fargo Bank) | 0.39 | 9/7/10 | 1,155,000 a | 1,155,000 |
Polk County Industrial Development Authority, | ||||
Health Care Facilities Revenue, Refunding | ||||
(Winter Haven Hospital Project) (LOC; PNC Bank) | 0.29 | 9/7/10 | 10,200,000 a | 10,200,000 |
Port Orange, Revenue (Palmer College of | ||||
Chiropractic Florida Project) (LOC; ABN-AMRO) | 0.31 | 9/7/10 | 8,770,000 a | 8,770,000 |
Tohopekaliga Water Authority, Utility System Revenue | ||||
(LOC; Landesbank Hessen-Thuringen Girozentrale) | 0.30 | 9/7/10 | 12,800,000 a | 12,800,000 |
Georgia—4.1% | ||||
Clayton County Housing Authority, MFHR, Refunding | ||||
(Chateau Forest Apartments Project) (Insured; Assured | ||||
Guaranty Municipal Corp. and Liquidity Facility; Societe Generale) | 1.10 | 9/7/10 | 6,530,000 a | 6,530,000 |
Gainesville and Hall County Hospital Authority, RAC (Northeast | ||||
Georgia Health System, Inc. Project) (LOC; Wells Fargo Bank) | 0.25 | 9/1/10 | 15,700,000 a | 15,700,000 |
Main Street Natural Gas, Inc., Gas Project | ||||
Revenue (LOC; Royal Bank of Canada) | 0.31 | 9/7/10 | 20,000,000 a | 20,000,000 |
Metropolitan Atlanta Rapid Transit Authority, Sales Tax | ||||
Revenue (Second Indenture Series) (LOC: Bayerische | ||||
Landesbank and Westdeutsche Landesbank) | 0.27 | 9/7/10 | 10,000,000 a | 10,000,000 |
Municipal Electric Authority of Georgia, Project One | ||||
Subordinated Bonds (Insured; Assured Guaranty | ||||
Municipal Corp. and Liquidity Facility; Dexia Credit Locale) | 0.35 | 9/7/10 | 11,200,000 a | 11,200,000 |
Hawaii—.3% | ||||
Hawaii Housing Finance and Development Corporation, | ||||
MFHR (Lokahi Ka’u) (Liquidity Facility; FHLMC) | 0.29 | 9/7/10 | 5,200,000 a | 5,200,000 |
Idaho—.6% | ||||
Coeur D’Alene Tribe, Revenue (LOC; Bank of America) | 0.31 | 9/7/10 | 9,200,000 a | 9,200,000 |
Illinois—6.6% | ||||
Chicago, Second Lien Water Revenue, Refunding | ||||
(LOC; California Public Employees Retirement System) | 0.31 | 9/7/10 | 14,750,000 a | 14,750,000 |
Chicago, Second Lien Water Revenue, | ||||
Refunding (LOC; State Street Bank and Trust Co.) | 0.32 | 9/7/10 | 3,200,000 a | 3,200,000 |
Chicago O’Hare International Airport, General Airport | ||||
Third Lien Revenue (LOC; Dexia Credit Locale) | 0.31 | 9/7/10 | 30,000,000 a | 30,000,000 |
Illinois Educational Facilities Authority, Revenue (ACI/Cultural | ||||
Pooled Financing Program) (LOC; Bank of America) | 0.31 | 9/7/10 | 10,790,000 a | 10,790,000 |
The Funds 11
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Municipal Money Market Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Short-Term Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Illinois (continued) | ||||
Illinois Finance Authority, PCR, Refunding (Commonwealth | ||||
Edison Company Project) (LOC; JPMorgan Chase Bank) | 0.31 | 9/7/10 | 8,305,000 a | 8,305,000 |
Illinois Finance Authority, Revenue | ||||
(OSF Healthcare System) (LOC; National City Bank) | 0.26 | 9/7/10 | 7,100,000 a | 7,100,000 |
Illinois Finance Authority, Revenue (Resurrection | ||||
Health Care) (LOC; JPMorgan Chase Bank) | 0.28 | 9/1/10 | 10,500,000 a | 10,500,000 |
Illinois Finance Authority, Revenue, Refunding | ||||
(Bradley University) (LOC; PNC Bank NA) | 0.26 | 9/7/10 | 8,600,000 a | 8,600,000 |
Illinois Finance Authority, Student Housing Revenue | ||||
(Collegiate Housing Foundation-DeKalb, L.L.C. Project | ||||
at Northern Illinois University) (LOC; Banco Santander) | 0.40 | 9/7/10 | 9,825,000 a | 9,825,000 |
Indiana—1.2% | ||||
Indiana Finance Authority, Revenue | ||||
(Ascension Health Senior Credit Group) | 0.26 | 9/7/10 | 10,000,000 a | 10,000,000 |
Lawrenceburg, PCR, Refunding (Indiana Michigan | ||||
Power Company Project) (LOC; Royal Bank of Scotland) | 0.35 | 9/7/10 | 8,600,000 a | 8,600,000 |
Iowa—1.8% | ||||
Hills, Health Facilities Revenue (Mercy Hospital | ||||
Project) (LOC; Allied Irish Banks) | 0.25 | 9/1/10 | 12,365,000 a | 12,365,000 |
Iowa Higher Education Loan Authority, Private College Facility | ||||
Revenue (Des Moines University Project) (LOC; Allied Irish Banks) | 2.75 | 9/1/10 | 15,855,000 a | 15,855,000 |
Louisiana—1.3% | ||||
East Baton Rouge Parish, Road and Street Improvement | ||||
Sales Tax Revenue, Refunding (LOC; Dexia Credit Locale) | 0.40 | 9/7/10 | 20,000,000 a | 20,000,000 |
Maryland—2.2% | ||||
Baltimore Mayor and City Council Industrial Development | ||||
Authority, Revenue (City of Baltimore Capital | ||||
Acquisition Program) (LOC; Bayerische Landesbank) | 0.37 | 9/7/10 | 10,400,000 a | 10,400,000 |
Howard County, Revenue, Refunding (Glenelg | ||||
Country School, Inc. Facility) (LOC; PNC Bank NA) | 0.29 | 9/7/10 | 10,225,000 a | 10,225,000 |
Maryland Health and Higher Educational Facilities | ||||
Authority, Revenue (University of Maryland | ||||
Medical System Issue) (LOC; Bank of America) | 0.27 | 9/7/10 | 13,330,000 a | 13,330,000 |
Massachusetts—.7% | ||||
Massachusetts, Consolidated Loan | ||||
(Liquidity Facility; Dexia Credit Locale) | 0.31 | 9/1/10 | 2,000,000 a | 2,000,000 |
Massachusetts Development Finance Agency, | ||||
Revenue (Worcester Polytechnic Institute) (LOC; TD Bank) | 0.27 | 9/7/10 | 1,500,000 a | 1,500,000 |
Massachusetts Water Resources Authority, | ||||
Multi-Modal Subordinated General Revenue, | ||||
Refunding (LOC; Landesbank Baden-Wurttemberg) | 0.25 | 9/1/10 | 8,000,000 a | 8,000,000 |
Michigan—.7% | ||||
Lenawee County Economic Development Corporation, Revenue, | ||||
Refunding (Siena Heights University Project) (LOC; FHLB) | 0.31 | 9/7/10 | 8,580,000 a | 8,580,000 |
12
BNY Mellon National Municipal Money Market Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Short-Term Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Michigan (continued) | ||||
Michigan Strategic Fund, LOR, Refunding (Waterfront | ||||
Reclamation and Development Project) (LOC; Deutsche Bank AG) | 0.29 | 9/7/10 | 2,810,000 a | 2,810,000 |
Minnesota—1.3% | ||||
Minnesota Higher Education Facilities Authority, Revenue | ||||
(Gustavus Adolphus College) (LOC; Allied Irish Banks) | 0.28 | 9/7/10 | 13,450,000 a | 13,450,000 |
Saint Paul Housing and Redevelopment Authority, Revenue | ||||
(Minnesota Public Radio Project) (LOC; Allied Irish Banks) | 2.75 | 9/1/10 | 6,115,000 a | 6,115,000 |
New Hampshire—.8% | ||||
New Hampshire Housing Finance Authority, MFHR, Refunding | ||||
(EQR-Bond Partnership— Manchester Project) (LOC; FNMA) | 0.26 | 9/7/10 | 12,700,000 a | 12,700,000 |
New Jersey—2.0% | ||||
Hudson County Improvement Authority, County | ||||
Guaranteed Pooled Notes (Local Unit Loan Program) | 1.50 | 8/31/11 | 30,450,000 | 30,694,026 |
New Jersey Turnpike Authority, Turnpike | ||||
Revenue (LOC; Bank of Nova Scotia) | 0.23 | 9/7/10 | 500,000 a | 500,000 |
New Mexico—1.3% | ||||
Alamogordo, Hospital Improvement Revenue, Refunding (Gerald | ||||
Champion Regional Medical Center Project) (LOC; Bank of America) | 0.31 | 9/7/10 | 20,000,000 a | 20,000,000 |
New York—15.3% | ||||
Long Island Power Authority, Electric System | ||||
Subordinated Revenue (LOC: Bayerische | ||||
Landesbank and Westdeutsche Landesbank) | 0.27 | 9/1/10 | 17,595,000 a | 17,595,000 |
Metropolitan Transportation Authority, Dedicated Tax | ||||
Fund Revenue, Refunding (LOC; KBC Bank) | 0.26 | 9/7/10 | 14,250,000 a | 14,250,000 |
New York City, GO Notes (LOC; Bayerische Landesbank) | 0.24 | 9/1/10 | 17,800,000 a | 17,800,000 |
New York City, GO Notes (LOC; TD Bank) | 0.25 | 9/7/10 | 12,345,000 a | 12,345,000 |
New York City, GO Notes (LOC; Westdeutsche Landesbank) | 0.24 | 9/1/10 | 11,000,000 a | 11,000,000 |
New York City Housing Development Corporation, | ||||
MFMR (The Crest Project) (LOC; Landesbank | ||||
Hessen-Thuringen Girozentrale) | 0.32 | 9/7/10 | 17,010,000 a | 17,010,000 |
New York City Municipal Water Finance Authority, | ||||
Water and Sewer System Second General Resolution | ||||
Revenue (Liquidity Facility: California State Teachers | ||||
Retirement System and State Street Bank and Trust Co.) | 0.26 | 9/1/10 | 30,000,000 a | 30,000,000 |
New York City Municipal Water Finance Authority, | ||||
Water and Sewer System Second General Resolution | ||||
Revenue (Liquidity Facility; Dexia Credit Locale) | 0.26 | 9/1/10 | 17,100,000 a | 17,100,000 |
New York City Transitional Finance Authority, Future Tax | ||||
Secured Revenue (Liquidity Facility; Dexia Credit Locale) | 0.36 | 9/7/10 | 12,755,000 a | 12,755,000 |
New York City Transitional Finance Authority, Future Tax | ||||
Secured Revenue (LOC; Bank of Nova Scotia) | 0.25 | 9/7/10 | 16,000,000 a | 16,000,000 |
New York City Transitional Finance Authority, | ||||
Revenue (New York City Recovery) (Liquidity | ||||
Facility; Landesbank Baden-Wurttemberg) | 0.24 | 9/1/10 | 29,000,000 a | 29,000,000 |
The Funds 13
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Municipal Money Market Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Short-Term Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
New York (continued) | ||||
New York Liberty Development Corporation, | ||||
Multi-Modal Liberty Revenue (World Trade Center Project) | 0.50 | 1/18/11 | 30,600,000 | 30,600,000 |
New York Local Government Assistance Corporation, Subordinate | ||||
Lien Revenue, Refunding (Insured; Assured Guaranty Municipal | ||||
Corp. and Liquidity Facility; Westdeutsche Landesbank) | 0.33 | 9/7/10 | 11,950,000 a | 11,950,000 |
North Carolina—.8% | ||||
North Carolina Medical Care Commission, Health Care | ||||
Facilities Revenue (Union Regional Medical | ||||
Center Project) (LOC; Wells Fargo Bank) | 0.31 | 9/7/10 | 13,000,000 a | 13,000,000 |
Ohio—1.9% | ||||
Cleveland-Cuyahoga County Port Authority, Cultural Facility | ||||
Revenue (The Cleveland Museum of Art Project) | ||||
(Liquidity Facility; JPMorgan Chase Bank) | 0.26 | 9/7/10 | 20,000,000 a | 20,000,000 |
Warren County, Health Care Facilities Improvement | ||||
Revenue (Otterbein Homes Project) (LOC; U.S. Bank NA) | 0.27 | 9/7/10 | 9,500,000 a | 9,500,000 |
Oregon—1.9% | ||||
Medford Hospital Facilities Authority, Revenue | ||||
(Rogue Valley Manor Project) (LOC; Bank of America) | 0.26 | 9/1/10 | 28,800,000 a | 28,800,000 |
Pennsylvania—14.2% | ||||
Allegheny County Hospital Development Authority, Revenue | ||||
(University of Pittsburgh Medical Center) (LOC; Deutsche Bank AG) | 0.23 | 9/7/10 | 15,000,000 a | 15,000,000 |
Allegheny County Hospital Development Authority, Revenue | ||||
(University of Pittsburgh Medical Center) (LOC; PNC Bank NA) | 0.24 | 9/7/10 | 7,500,000 a | 7,500,000 |
Allegheny County Industrial Development Authority, Revenue | ||||
(The Watson Institute Friendship Academy Project) (LOC; PNC Bank) | 0.29 | 9/7/10 | 3,750,000 a | 3,750,000 |
Allegheny County Industrial Development Authority, | ||||
Senior Health and Housing Facilities Revenue | ||||
(Longwood at Oakmont, Inc.) (LOC; Allied Irish Banks) | 2.15 | 9/1/10 | 16,160,000 a | 16,160,000 |
Beaver County Industrial Development Authority, PCR, | ||||
Refunding (FirstEnergy Nuclear Generation | ||||
Corporation Project) (LOC; Bank of Nova Scotia) | 0.28 | 9/7/10 | 30,000,000 a | 30,000,000 |
Beaver County Industrial Development Authority, PCR, | ||||
Refunding (FirstEnergy Nuclear Generation | ||||
Corporation Project) (LOC; Citibank NA) | 0.28 | 9/7/10 | 12,600,000 a | 12,600,000 |
Lancaster County, GO Notes (Insured; Assured Guaranty | ||||
Municipal Corp. and Liquidity Facility; Royal Bank of Canada) | 0.30 | 9/7/10 | 20,695,000 a | 20,695,000 |
Lower Merion School District, GO Notes | ||||
(LOC; State Street Bank and Trust Co.) | 0.28 | 9/7/10 | 8,400,000 a | 8,400,000 |
Luzerne County, GO Notes (Insured; Assured Guaranty | ||||
Municipal Corp. and Liquidity Facility; JPMorgan Chase Bank) | 0.30 | 9/7/10 | 56,500,000 a | 56,500,000 |
Luzerne County Industrial Development Authority, Revenue | ||||
(The Methodist Homes for the Aging of the Wyoming | ||||
Conference Project) (LOC; Banco Santander) | 0.40 | 9/7/10 | 15,055,000 a | 15,055,000 |
14
BNY Mellon National Municipal Money Market Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Short-Term Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Pennsylvania (continued) | ||||
Pennsylvania State University, Revenue | ||||
(Liquidity Facility; JPMorgan Chase Bank) | 0.25 | 9/7/10 | 25,000,000 a | 25,000,000 |
Pittsburgh Water and Sewer Authority, Water and Sewer | ||||
System First Lien Revenue, Refunding (LOC; PNC Bank NA) | 0.26 | 9/7/10 | 9,000,000 a | 9,000,000 |
South Carolina—.6% | ||||
South Carolina Jobs-Economic Development | ||||
Authority, HR, Refunding (Tuomey Regional | ||||
Medical Center) (LOC; Wells Fargo Bank) | 0.29 | 9/7/10 | 10,000,000 a | 10,000,000 |
Tennessee—1.3% | ||||
Tennessee, CP | 0.30 | 11/9/10 | 20,000,000 | 20,000,000 |
Texas—5.5% | ||||
Harris County Flood Control District, CP | ||||
(LOC; Landesbank Hessen-Thuringen Girozentrale) | 0.30 | 9/1/10 | 50,000,000 | 50,000,000 |
Harris County Health Facilities Development Corporation, | ||||
HR (Baylor College of Medicine) (LOC; Wachovia Bank) | 0.25 | 9/1/10 | 6,800,000 a | 6,800,000 |
Travis County Health Facilities Development Corporation, | ||||
Retirement Facilities Revenue (Longhorn Village | ||||
Project) (LOC; Bank of Scotland) | 0.27 | 9/7/10 | 28,400,000 a | 28,400,000 |
Utah—.2% | ||||
Utah Housing Corporation, MFHR (Timbergate | ||||
Apartments Project) (LOC; FHLMC) | 0.31 | 9/7/10 | 3,125,000 a | 3,125,000 |
Vermont—1.2% | ||||
Vermont Educational and Health Buildings Financing | ||||
Agency, HR (Northeastern Vermont Regional | ||||
Hospital Project) (LOC; TD Bank) | 0.25 | 9/1/10 | 6,865,000 a | 6,865,000 |
Vermont Educational and Health Buildings Financing | ||||
Agency, Revenue (Southwestern Vermont | ||||
Medical Center Project) (LOC; TD Bank) | 0.25 | 9/1/10 | 1,000,000 a | 1,000,000 |
Vermont Housing Finance Agency, Student Housing | ||||
Facilities Revenue (West Block University of | ||||
Vermont Apartments Project) (LOC; Scotia Bank) | 0.40 | 9/7/10 | 10,000,000 a | 10,000,000 |
Virginia—1.7% | ||||
Albemarle County Economic Development | ||||
Authority, HR (Martha Jefferson Hospital) | ||||
(LOC; Branch Banking and Trust Co.) | 0.29 | 9/7/10 | 5,900,000 a | 5,900,000 |
Clarke County Industrial Development Authority, | ||||
Hospital Facility Revenue (Winchester Medical | ||||
Center, Inc.) (Insured; Assured Guaranty | ||||
Municipal Corp. and and Liquidity Facility; | ||||
Branch Banking and Trust Co.) | 0.31 | 9/7/10 | 1,000,000 a | 1,000,000 |
Fairfax County Economic Development Authority, Revenue | ||||
(Public Broadcasting Service Project) (LOC; Bank of America) | 0.27 | 9/7/10 | 11,720,000 a | 11,720,000 |
The Funds 15
STATEMENT OF INVESTMENTS (continued)
BNY Mellon National Municipal Money Market Fund (continued) | ||||
Coupon | Maturity | Principal | ||
Short-Term Investments (continued) | Rate (%) | Date | Amount ($) | Value ($) |
Virginia (continued) | ||||
Williamsburg Industrial Development Authority, Revenue | ||||
(The Colonial Williamsburg Foundation) (LOC; Wells Fargo Bank) | 0.29 | 9/7/10 | 8,200,000 a | 8,200,000 |
Washington—2.2% | ||||
Tulalip Tribes of the Tulalip Reservation, Revenue, | ||||
Refunding (Capital Projects) (LOC; Wells Fargo Bank) | 0.31 | 9/7/10 | 30,000,000 a | 30,000,000 |
Vancouver Housing Authority, Pooled Housing Revenue, | ||||
Refunding (Liquidity Facility; FHLMC and LOC; FHLMC) | 0.29 | 9/7/10 | 4,400,000 a | 4,400,000 |
Wisconsin—1.8% | ||||
Wisconsin Health and Educational Facilities Authority, | ||||
Revenue (Alverno College Project) (LOC; Allied Irish Banks) | 2.75 | 9/1/10 | 6,200,000 a | 6,200,000 |
Wisconsin Health and Educational Facilities Authority, | ||||
Revenue (Saint Luke’s Medical Center Project) (LOC; KBC Bank) | 0.30 | 9/7/10 | 21,100,000 a | 21,100,000 |
Total Investments (cost $1,550,041,426) | 99.9% | 1,550,041,426 | ||
Cash and Receivables (Net) | .1% | 1,233,952 | ||
Net Assets | 100.0% | 1,551,275,378 |
a Variable rate demand note—rate shown is the interest rate in effect at August 31, 2010. Maturity date represents the next demand date, or the ultimate maturity date if earlier.
16
Summary of Abbreviations | |||
ABAG | Association of Bay Area Governments | ACA | American Capital Access |
AGC | ACE Guaranty Corporation | AGIC | Asset Guaranty Insurance Company |
AMBAC | American Municipal Bond Assurance Corporation | ARRN | Adjustable Rate Receipt Notes |
BAN | Bond Anticipation Notes | BPA | Bond Purchase Agreement |
CIFG | CDC Ixis Financial Guaranty | COP | Certificate of Participation |
CP | Commercial Paper | EDR | Economic Development Revenue |
EIR | Environmental Improvement Revenue | FGIC | Financial Guaranty Insurance Company |
FHA | Federal Housing Administration | FHLB | Federal Home Loan Bank |
FHLMC | Federal Home Loan Mortgage Corporation | FNMA | Federal National Mortgage Association |
GAN | Grant Anticipation Notes | GIC | Guaranteed Investment Contract |
GNMA | Government National Mortgage Association | GO | General Obligation |
HR | Hospital Revenue | IDB | Industrial Development Board |
IDC | Industrial Development Corporation | IDR | Industrial Development Revenue |
LOC | Letter of Credit | LOR | Limited Obligation Revenue |
LR | Lease Revenue | MFHR | Multi-Family Housing Revenue |
MFMR | Multi-Family Mortgage Revenue | PCR | Pollution Control Revenue |
PILOT | Payment in Lieu of Taxes | PUTTERS | Puttable Tax-Exempt Receipts |
RAC | Revenue Anticipation Certificates | RAN | Revenue Anticipation Notes |
RAW | Revenue Anticipation Warrants | RRR | Resources Recovery Revenue |
SAAN | State Aid Anticipation Notes | SBPA | Standby Bond Purchase Agreement |
SFHR | Single Family Housing Revenue | SFMR | Single Family Mortgage Revenue |
SONYMA | State of New York Mortgage Agency | SWDR | Solid Waste Disposal Revenue |
TAN | Tax Anticipation Notes | TAW | Tax Anticipation Warrants |
TRAN | Tax and Revenue Anticipation Notes | XLCA | XL Capital Assurance |
Summary of Combined Ratings (Unaudited) | |||||
Fitch | or | Moody’s | or | Standard & Poor’s | Value (%)† |
F1+,F1 | VMIG1,MIG1,P1 | SP1+,SP1,A1+,A1 | 83.2 | ||
F2 | VMIG2,MIG3,P2 | SP2,A2 | 1.0 | ||
AAA,AA,Ab | Aaa,Aa,Ab | AAA,AA,Ab | 15.2 | ||
Not Ratedc | Not Ratedc | Not Ratedc | .6 | ||
100.0 |
† Based on total investments. |
b Notes which are not F, MIG and SP rated are represented by bond ratings of the issuers. |
c Securities which, while not rated by Fitch, Moody’s and Standard & Poor’s, have been determined by the Manager to be of comparable quality to those rated securities in which the |
fund may invest. |
See notes to financial statements.
The Funds 17
STATEMENTS OF ASSETS AND LIABILITIES
August 31, 2010
BNY Mellon | BNY Mellon | |
Money Market | National Municipal | |
Fund | Money Market Fund | |
Assets ($): | ||
Investments in securities—See Statement of Investments† | 1,091,803,426 | 1,550,041,426 |
Cash | 1,169,448 | 4,566,046 |
Interest receivable | 456,834 | 1,116,977 |
Prepaid expenses | 18,111 | 16,284 |
1,093,447,819 | 1,555,740,733 | |
Liabilities ($): | ||
Due to The Dreyfus Corporation and affiliates—Note 3(b) | 158,745 | 216,060 |
Due to Administrator—Note 3(a) | 119,649 | 166,636 |
Payable for investment securities purchased | — | 3,984,286 |
Accrued expenses | 86,171 | 98,373 |
364,565 | 4,465,355 | |
Net Assets ($) | 1,093,083,254 | 1,551,275,378 |
Composition of Net Assets ($): | ||
Paid-in capital | 1,093,087,149 | 1,552,826,398 |
Accumulated net realized gain (loss) on investments | (3,895) | (1,551,020) |
Net Assets ($) | 1,093,083,254 | 1,551,275,378 |
Net Asset Value Per Share | ||
Class M Shares | ||
Net Assets ($) | 1,092,770,774 | 1,551,274,271 |
Shares Outstanding | 1,092,774,664 | 1,552,826,204 |
Net Asset Value Per Share ($) | 1.00 | 1.00 |
Investor Shares | ||
Net Assets ($) | 312,480 | 1,107 |
Shares Outstanding | 312,485 | 1,109 |
Net Asset Value Per Share ($) | 1.00 | 1.00 |
† Investments at cost ($) | 1,091,803,426 | 1,550,041,426 |
See notes to financial statements. |
18
STATEMENTS OF OPERATIONS
Year Ended August 31, 2010
BNY Mellon | BNY Mellon | |
Money Market | National Municipal | |
Fund | Money Market Fund | |
Investment Income ($): | ||
Interest Income | 5,250,379 | 5,346,336 |
Expenses: | ||
Investment advisory fee—Note 3(a) | 2,166,666 | 2,435,297 |
Administration fee—Note 3(a) | 1,813,893 | 2,038,296 |
Custodian fees—Note 3(b) | 132,188 | 114,312 |
Trustees’ fees and expenses—Note 3(c) | 98,351 | 100,820 |
Professional fees | 47,572 | 47,236 |
Registration fees | 26,749 | 26,795 |
Treasury insurance expense—Note 2(f) | 23,854 | 43,056 |
Prospectus and shareholders’ reports | 14,561 | 6,922 |
Shareholder servicing costs—Note 3(b) | 2,054 | 31 |
Miscellaneous | 34,003 | 49,406 |
Total Expenses | 4,359,891 | 4,862,171 |
Less—reduction in expenses due to undertaking—Note 3(a) | (132,808) | (236,316) |
Less—reduction in fees due to earnings credits—Note 2(b) | (6,608) | — |
Net Expenses | 4,220,475 | 4,625,855 |
Investment Income—Net | 1,029,904 | 720,481 |
Net Realized Gain (Loss) on Investments—Note 2(b) ($) | 1,161 | — |
Net Increase in Net Assets Resulting from Operations | 1,031,065 | 720,481 |
See notes to financial statements. |
The Funds 19
STATEMENTS OF CHANGES IN NET ASSETS
BNY Mellon National Municipal | ||||
BNY Mellon Money Market Fund | Money Market Fund | |||
Year Ended August 31, | Year Ended August 31, | |||
2010 | 2009 | 2010 | 2009 | |
Operations ($): | ||||
Investment income—net | 1,029,904 | 18,010,555 | 720,481 | 16,894,482 |
Net realized gain (loss) from investments | 1,161 | (5,056) | — | (499,770) |
Net Increase (Decrease) in Net Assets | ||||
Resulting from Operations | 1,031,065 | 18,005,499 | 720,481 | 16,394,712 |
Dividends to Shareholders from ($): | ||||
Investment income—net: | ||||
Class M Shares | (1,029,904) | (18,018,849) | (720,481) | (16,894,476) |
Investor Shares | — | (18,655) | — | (6) |
Total Dividends | (1,029,904) | (18,037,504) | (720,481) | (16,894,482) |
Beneficial Interest Transactions ($1.00 per share): | ||||
Net proceeds from shares sold: | ||||
Class M Shares | 2,172,447,209 | 2,900,077,126 | 3,010,169,507 | 4,077,069,214 |
Investor Shares | 132,684 | 798,722 | — | — |
Dividends reinvested: | ||||
Class M Shares | 80 | 1,447 | 70 | 5,127 |
Investor Shares | — | 18,653 | — | 6 |
Cost of shares redeemed: | ||||
Class M Shares | (3,014,416,869) | (2,141,172,968) | (3,229,503,661) | (3,935,897,580) |
Investor Shares | (1,520,918) | (704,556) | — | — |
Increase (Decrease) in Net Assets from | ||||
Beneficial Interest Transactions | (843,357,814) | 759,018,424 | (219,334,084) | 141,176,767 |
Total Increase (Decrease) In Net Assets | (843,356,653) | 758,986,419 | (219,334,084) | 140,676,997 |
Net Assets ($): | ||||
Beginning of Period | 1,936,439,907 | 1,177,453,488 | 1,770,609,462 | 1,629,932,465 |
End of Period | 1,093,083,254 | 1,936,439,907 | 1,551,275,378 | 1,770,609,462 |
See notes to financial statements. |
20
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class of each BNY Mellon money market fund for the fiscal periods indicated.All information 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.
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Money Market Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Investment Operations: | |||||
Investment income—net | .001 | .012 | .037 | .050 | .043 |
Distributions: | |||||
Dividends from investment income—net | (.001) | (.012) | (.037) | (.050) | (.043) |
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Total Return (%) | .07 | 1.24 | 3.72 | 5.16 | 4.35 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .30 | .33 | .30 | .30 | .31 |
Ratio of net expenses to average net assets | .29 | .33a | .30a | .30a | .31 |
Ratio of net investment income to average net assets | .07 | 1.08 | 3.53 | 5.04 | 4.29 |
Net Assets, end of period ($ x 1,000) | 1,092,771 | 1,934,739 | 1,175,866 | 843,242 | 754,727 |
a Expense waivers and/or reimbursements amounted to less than .01%. | |||||
See notes to financial statements. |
The Funds 21
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon Money Market Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Investment Operations: | |||||
Investment income—net | .000a | .010 | .034 | .048 | .040 |
Distributions: | |||||
Dividends from investment income—net | (.000)a | (.010) | (.034) | (.048) | (.040) |
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Total Return (%) | .00b | .99 | 3.47 | 4.89 | 4.09 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .55 | .58 | .55 | .55 | .56 |
Ratio of net expenses to average net assets | .38 | .58c | .55c | .55c | .56 |
Ratio of net investment income to average net assets | .00b | .97 | 3.39 | 4.80 | 4.09 |
Net Assets, end of period ($ x 1,000) | 312 | 1,701 | 1,588 | 1,354 | 890 |
a | Amount represents less than $.001 per share. |
b | Amount represents less than .01%. |
c | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
22
Class M Shares | |||||
Year Ended August 31, | |||||
BNY Mellon National Municipal Money Market Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Investment Operations: | |||||
Investment income—net | .000a | .008 | .024 | .033 | .028 |
Distributions: | |||||
Dividends from investment income—net | (.000)a | (.008) | (.024) | (.033) | (.028) |
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Total Return (%) | .05 | .79 | 2.39 | 3.40 | 2.88 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .30 | .35 | .31 | .30 | .32 |
Ratio of net expenses to average net assets | .28 | .34 | .28 | .30b | .31 |
Ratio of net investment income to average net assets | .04 | .80 | 2.24 | 3.35 | 2.86 |
Net Assets, end of period ($ x 1,000) | 1,551,274 | 1,770,608 | 1,629,931 | 940,257 | 734,525 |
a | Amount represents less than $.001 per share. |
b | Expense waivers and/or reimbursements amounted to less than .01%. |
See notes to financial statements.
The Funds 23
FINANCIAL HIGHLIGHTS (continued)
Investor Shares | |||||
Year Ended August 31, | |||||
BNY Mellon National Municipal Money Market Fund | 2010 | 2009 | 2008 | 2007 | 2006 |
Per Share Data ($): | |||||
Net asset value, beginning of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Investment Operations: | |||||
Investment income—net | .000a | .006 | .021 | .031 | .026 |
Distributions: | |||||
Dividends from investment income—net | (.000)a | (.006) | (.021) | (.031) | (.026) |
Net asset value, end of period | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Total Return (%) | .00b | .60 | 2.13 | 3.15 | 2.62 |
Ratios/Supplemental Data (%): | |||||
Ratio of total expenses to average net assets | .55 | .60 | .56 | .56 | .57 |
Ratio of net expenses to average net assets | .33 | .53 | .53 | .55 | .57 |
Ratio of net investment income to average net assets | .00b | .57 | 2.05 | 3.16 | 2.60 |
Net Assets, end of period ($ x 1,000) | 1 | 1 | 1 | 1 | 1 |
a | Amount represents less than $.001 per share. |
b | Amount represents less than .01%. |
See notes to financial statements.
24
NOTES TO FINANCIAL STATEMENTS
NOTE 1—General:
BNY Mellon Funds Trust (the “Trust”) was organized as a Massachusetts business trust 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 consisting of twenty-five series, including the following diversified money market funds: BNY Mellon Money Market Fund and BNY Mellon National Municipal Money Market Fund (each, a “fund” and collectively, the “funds”). BNY Mellon Money Market Fund’s investment objective is to provide investors with as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity. BNY Mellon National Municipal Money Market Fund’s investment objective is to provide investors with as high a level of current income exempt from federal income tax as is consistent with the preservat ion of capital and the maintenance of liquidity.
BNY Mellon Fund Advisers, a division of The Dreyfus Corporation (the “Manager” or “Dreyfus), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as each fund’s investment adviser (“Investment Adviser”).The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, serves as administrator for the funds pursuant to an Administration Agreement with the Trust (the “Administration Agreement”). The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to whichThe Bank of New York Mellon pays Dreyfus for performing certain administrative services. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of each fund’s shares, which are sold without a sales charge.
The Trust is authorized to issue an unlimited number of shares of Beneficial Interest, par value $.001 per share, in each of the Class M and Investor Class shares of each fund. Each class of shares has similar rights and privileges, except with respect to the expenses borne by and the
shareholder services offered to each class and the shareholder services plan applicable to the Investor shares, the allocation of certain transfer agency costs, and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized gains or losses on investments are allocated to each class of shares based on its relative net assets.
As of August 31, 2010, MBC Investments Corp., an indirect subsidiary of BNY Mellon, held all of the Investor shares of the BNY Mellon National Municipal Money Market Fund.
TheTrust accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses that are applicable to all series are allocated among them on a pro rata basis.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) has become the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants.The ASC has superseded all existing non-SEC accounting and reporting standards. Each fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assump-tions.Actual results could differ from those estimates.
NOTE 2—Significant Accounting Policies:
(a) Portfolio valuation: Investments in securities are valued at amortized cost in accordance with Rule 2a-7 of the Act, which has been determined by the Trust’s Board to represent the fair value of the funds’ investments.
It is the funds’ policy to maintain a continuous net asset value per share of $1.00; the funds have adopted certain investment, portfolio valuation and dividend and distri-
The Funds 25
NOTES TO FINANCIAL STATEMENTS (continued)
bution policies to enable them to do so. There is no assurance, however, that the funds will be able to maintain a stable net asset value per share of $1.00.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of each fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets
for identical investments.
Level 2—other significant observable inputs (includ-
ing quoted prices for similar investments, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including
the funds’ own assumptions in determining the fair
value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market securities are valued using amortized cost, in accordance with rules under the Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
Table 1 summarizes the inputs used as of August 31, 2010 in valuing each fund’s investments.
(b) Securities transactions and investment income:
Securities transactions are recorded on a trade date basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Cost of investments represents amortized cost.
The funds have arrangements with the custodian and cash management bank whereby the funds may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the funds include net earnings credits as an expense offset in the Statements of Operations.
(c) Repurchase agreements: The funds may engage in repurchase agreement transactions. Under the terms of a typical repurchase agreement, a fund, through its custodian and sub-custodian, takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and the fund to resell, the obligation at an
Table 1. | ||||
Short-Term Investments ($)† | ||||
Level 1—Unadjusted | Level 2—Other Significant | Level 3—Significant | ||
Valuation Inputs | Quoted Prices | Observable Inputs | Unobservable Inputs | Total |
BNY Mellon Money Market Fund | — | 1,091,803,426 | — | 1,091,803,426 |
BNY Mellon National Municipal Money Market Fund | — | 1,550,041,426 | — | 1,550,041,426 |
† | See Statements of Investments for additional detailed categorizations. |
26
agreed upon price and time, thereby determining the yield during the fund’s holding period.This arrangement results in a fixed rate of return that is not subject to market fluctuations during the fund’s holding period. The value of the collateral is at least equal, at all times, to the total amount of the repurchase obligation, including interest. In the event of a counterparty default, the fund has the right to use the collateral to offset losses incurred.There is potential loss to the fund in the event the fund is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the fund seeks to assert its rights. The Investment Adviser reviews the value of the collateral and the creditworthiness of those banks and dealers with which the fund enters into repurchase agreemen ts to evaluate potential risks.
(d) Dividends to shareholders: Dividends payable to shareholders are recorded by the funds on the ex-dividend date.The funds declare dividends daily from investment income-net; such dividends are paid monthly.With respect to each series, dividends from net realized capital gains, if any, are normally declared and paid annually, but the funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gains can be offset by capital loss carryovers of that fund, it is the policy of the fund not to distribute such gains.
(e) Federal income taxes: It is the policy of the BNY Mellon Money Market 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. It is the policy of the BNY Mellon National Municipal Money
Market Fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes. For federal income tax purposes, each series is treated as a single entity for the purpose of determining such qualification.
As of and during the period ended August 31, 2010, the funds did not have any liabilities for any uncertain tax positions. The funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period, the funds did not incur any interest or penalties.
Each of the tax years in the four-year period ended August 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.
At August 31, 2010, the components of accumulated earnings on a tax basis were substantially the same as for financial reporting purposes.
BNY Mellon Money Market Fund has an accumulated capital loss carryover of $3,895 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to August 31, 2010. If not applied, the carryover expires in 2017.
BNY Mellon National Municipal Money Market Fund has an accumulated capital loss carryover of $1,551,020 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to August 31, 2010. If not applied, the carryover expires in 2017.
The tax characters of distributions paid to shareholders during the fiscal periods ended August 31, 2010 and August 31, 2009 were all ordinary income for the BNY Mellon Money Market Fund and for the BNY Mellon
The Funds 27
NOTES TO FINANCIAL STATEMENTS (continued)
National Municipal Money Market Fund were as follows: tax exempt income $719,560 and $16,889,717 and ordinary income $921 and $4,765, respectively.
At August 31, 2010, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statements of Investments).
(f) Treasury’s Temporary Guarantee Program:The funds entered into a Guarantee Agreement with the United States Department of theTreasury (the “Treasury”) to participate in the Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”).
Under the Program, the Treasury guaranteed the share price of shares of the fund held by shareholders as of September 19, 2008 at $1.00 per share if the fund’s net asset value per share fell below $0.995 (a “Guarantee Event”) and the fund liquidated. Recovery under the Program was subject to certain conditions and limitations.
Fund shares acquired by investors after September 19, 2008 that increased the number of fund shares the investor held at the close of business on September 19, 2008 were not eligible for protection under the Program. In addition, fund shares acquired by investors who did not hold fund shares at the close of business on September 19, 2008 were not eligible for protection under the Program.
The Program, which was originally set to expire on December 18, 2008, was initially extended by the Treasury until April 30, 2009 and had been further extended by the Treasury until September 18, 2009, at which time the Secretary of the Treasury terminated the Program. Participation in the initial term and the two extended periods of the Program required payments to the Treasury in the amounts of .01%, .015% and .015%, respectively, of the funds’ shares outstanding as of September 19, 2008 (valued at $1.00 per share). This
expense was borne by the funds without regard to any expense limitation in effect.
NOTE 3—Investment Advisory Fee, Administration Fee and Other Transactions With Affiliates:
(a) Fees payable by the funds pursuant to the provisions of an investment advisory agreement with the Investment Adviser are payable monthly, computed on the average daily value of each fund’s net assets at the following annual rates: .15% of the BNY Mellon Money Market Fund and .15% of the BNY Mellon National Municipal Money Market Fund.
Pursuant to the Administration Agreement,The Bank of New York Mellon provides or arranges for fund accounting, transfer agency and other fund administration services and receives a fee based on the total net assets of the Trust based on the following rates:
0 up to $6 billion | .15% |
$6 billion up to $12 billion | .12% |
In excess of $12 billion | .10% |
The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of New York Mellon pays Dreyfus for performing certain administrative services.
BNY Mellon Fund Advisors has undertaken to reimburse expenses in the event that current yields drop below a certain level. Such limitation may fluctuate daily, is voluntary and not contractual and may be terminated at any time.The reduction in expenses, pursuant to the undertaking, amounted to $132,808 for the BNY Mellon Money Market Fund and $236,316 for the BNY Mellon National Municipal Money Market Fund, respectively, during the period ended August 31, 2010.
(b) The funds have adopted a Shareholder Services Plan with respect to its Investor shares pursuant to
28
Table 5. | |||||
Investment | Shareholder | Chief | (Less) Expense | ||
Advisory | Services | Custodian | Compliance | Reimbursement | |
Fees ($) | Plan Fees ($) | Fees ($) | Officer Fees ($) | Fees ($) | |
BNY Mellon Money Market Fund | 143,416 | 66 | 14,624 | 673 | (34) |
BNY Mellon National Municipal | |||||
Money Market Fund | 199,846 | — | 15,541 | 673 | — |
The Funds | 29 |
NOTES TO FINANCIAL STATEMENTS (continued)
(c) Each trustee who is not an “affiliated person” as defined in the Act receives from the Trust an annual fee of $68,000 and an attendance fee of $7,500 for each in-person meeting attended and $500 for telephone meetings and is reimbursed for travel and out-of-pocket expenses.The Chairman of the Trust’s Board receives an additional annual fee of $15,000 and the Chairman of the Trust’s Audit Committee receives an additional annual fee of $10,000.
NOTE 4—Securities Transactions:
The funds are permitted to purchase or sell securities from or to certain related affiliated funds under specified
conditions outlined in procedures adopted by the Trust’s Board.The procedures have been designed to ensure that any purchase or sale of securities by the funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment adviser), common Trustee and/or common officers, complies with Rule 17a-7 of the Act. During the period ended August 31, 2010, BNY Mellon Money Market Fund engaged in purchases of securities pursuant to Rule 17a-7 of the Act amounting to $12,020,000.
30
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Trustees and Shareholders BNY Mellon Funds Trust
We have audited the accompanying statements of assets and liabilities of BNY Mellon Money Market Fund and BNY Mellon National Municipal Money Market Fund, each a series of BNY Mellon Funds Trust (collectively “the Funds”), including the statements of investments as of August 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended.These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2010, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of August 31, 2010, and the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
New York, New York
October 26, 2010
The Funds 31
IMPORTANT TAX INFORMATION (Unaudited)
BNY Mellon Money Market Fund
For federal tax purposes the fund designates the maximum amount allowable but not less than 100% as intertest-related dividends in accordance with Sections 871(k)(1) and 881(e) of the Internal Revenue Code.
BNY Mellon National Municipal Money Market Fund
In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended August 31, 2010 as “exempt-
interest dividends” (not generally subject to regular federal income tax), except $921 that is being designated as an ordinary income distribution for reporting purposes. Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2010 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for the 2010 calendar year on Form 1099-INT, both of which will be mailed by early 2011.
32
INFORMATION ABOUT THE REVIEW AND APPROVAL |
OF EACH FUND’S INVESTMENT ADVISORY AGREEMENT (Unaudited) |
At a meeting of the Board of Trustees held on March 9-10, 2010, the Board considered the re-approval of the Trust’s Investment Advisory Agreement for another one year term, pursuant to which BNY Mellon Fund Advisers, a division of Dreyfus, provides the funds with investment advisory services.The Board members also considered the re-approval of the Trust’s Administration Agreement with The Bank of NewYork Mellon for another one year term, pursuant to which The Bank of New York Mellon provides the funds with administrative services.The Bank of New York Mellon has entered into a Sub-Administration Agreement with Dreyfus pursuant to which The Bank of NewYork Mellon pays Dreyfus for performing certain of these administrative services.The Board members who are not “interested persons” (as defined in the Act) of theTrust were assisted in their review by independent legal counsel and met with counsel i n executive session separate from representatives of Dreyfus.
Analysis of Nature, Extent and Quality of Services Provided to the Funds. The Board members received a presentation from representatives of Dreyfus regarding services provided to the funds, and discussed the nature, extent and quality of the services provided to the funds pursuant to the Investment Advisory Agreement. Dreyfus’ representatives reviewed the funds’ distribution of accounts, and noted the diversity of distribution of the funds and Dreyfus’ corresponding need for broad, deep and diverse resources to be able to provide ongoing shareholder services to each of the funds’ distribution channels. Dreyfus also provided the number of shareholder accounts in each fund, as well as each fund’s asset size.
The Board members also considered Dreyfus’ research and portfolio management capabilities and that Dreyfus also provides oversight of day-to-day fund operations and assistance in meeting legal and regulatory requirements, and Dreyfus’ extensive operational and compliance
infrastructure. They also considered that The Bank of New York Mellon provides the funds with administrative and accounting services pursuant to the Trust’s Administration Agreement.
Comparative Analysis of the Funds’ Advisory Fees, Expense Ratios and Performance
The Board members reviewed reports prepared by Lipper, Inc., an independent provider of investment company data, which included information comparing each fund’s advisory fee and expense ratio with a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”), in each case in the same category applicable to the fund, that were selected by Lipper. The Board members also reviewed reports prepared by Lipper which included information comparing each fund’s performance with that of a group of comparable funds (the “Performance Group”) composed of the same funds included in the Expense Group and with that of a broader group of funds (the “Performance Universe”), in each case in the same category applicable to the fund, that were selected by Lipper. Included in these reports were comparisons of contractual and actual advisory fee rates, total operating expenses and performance. The Board was provided with a description of the methodology Lipper used to select each Expense Group and Expense Universe and each Performance Group and Performance Universe.
BNY Mellon Money Market Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons. The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile (above the median) of the Expense Group and in the second quartile (below the median) of the Expense Universe.
The Funds | 33 |
INFORMATION ABOUT THE REVIEW AND APPROVAL OF EACH FUND’S |
INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued) |
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that the fund’s total return performance was above the medians of the Performance Group and Performance Universe for the reported periods ended January 31, 2010.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund. The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
BNY Mellon National Municipal Money Market Fund
The Board reviewed the results of the Expense Group and Expense Universe comparisons.The Board reviewed the range of advisory fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s expense ratio ranked in the third quartile (above the median) of the Expense Group and in the second quartile (below the median) of the Expense Universe.
The Board also reviewed the results of the Performance Group and Performance Universe comparisons. The Board noted that the fund’s total return performance was below the medians of the Performance Group and Performance Universe for the reported periods ended January 31, 2010. The Board received a presentation
from the fund’s co-primary portfolio manager regarding the factors which, over the past year, influenced the fund’s performance results.The Board expressed concern over the fund’s relative underperformance for the reported periods, and stated its expectation for improved performance results in the future.
Representatives of Dreyfus reviewed with the Board members the fees paid to Dreyfus or its affiliates by mutual funds managed by Dreyfus or its affiliates with similar investment objectives, policies and strategies, and included within the same Lipper category, as the fund (the “Similar Funds”). Representatives of Dreyfus also noted that there were no other accounts managed or sub-advised by Dreyfus or its affiliates with similar investment objectives, policies and strategies as the fund. The Board analyzed the differences in fees paid to Dreyfus and discussed the relationship of the advisory fees paid in light of the services provided.The Board members considered the relevance of the fee information provided for the Similar Funds to evaluate the appropriateness and reasonableness of the fund’s advisory fees.
Analysis of Profitability and Economies of Scale. Dreyfus’ representatives reviewed the dollar amount of expenses allocated and profit received by Dreyfus and its affiliates with respect to each fund and the method used to determine such expenses and profit.The Board previously had been provided with information prepared by an independent consulting firm regarding Dreyfus’ approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus mutual fund complex. The Board members also had been informed that the methodology had been reviewed by an independent registered public accounting firm which, like the consultant, found the methodology to be reasonable.The consulting firm also analyzed where any
34
economies of scale might emerge in connection with the management of the funds. The Board members evaluated the profitability analysis in light of the relevant circumstances for each fund, including any decline in assets. The Board members also considered potential benefits to Dreyfus and its affiliates, including BNY Mellon Fund Advisers, from acting as investment adviser to the funds and noted that there were no soft dollar arrangements with respect to trading each fund’s portfolio.
It was noted that the Board members should consider Dreyfus’ profitability with respect to each fund as part of their evaluation of whether the fees under the Investment Advisory Agreement bear a reasonable relationship to the mix of services provided by Dreyfus, including the nature, extent and quality of such services. It was noted that the profitability percentage for managing each fund was within ranges determined by appropriate court cases to be reasonable given the services rendered and that the profitability percentage for managing each fund was not unreasonable given the services provided.
At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the continuation of the Trust’s Investment Advisory Agreement with respect to the funds. Based on the discussions and considerations as described above, the Board made the following conclusions and determinations with respect to the funds:
The Board concluded that the nature, extent and quality of the services provided by Dreyfus to each fund are adequate and appropriate.
With respect to BNY Mellon Money Market Fund, the Board was satisfied with the fund’s performance.
With respect to BNY Mellon National Municipal Money Market Fund, while the Board was concerned with the fund’s relative underperformance for the reported periods, it considered the presentation of the fund’s portfolio manager regarding the factors which influenced the fund’s performance results, and stated its expectation for improved performance results in the future.
The Board concluded that the fee paid to Dreyfus by each fund was reasonable in light of the services pro- vided, comparative performance and expense and advi- sory fee information, costs of the services provided and profits to be realized and benefits derived or to be derived by Dreyfus and its affiliates from its relationship with the fund.
The Board determined that the economies of scale which may accrue to Dreyfus and its affiliates in con- nection with the management of the funds had been adequately considered by Dreyfus in connection with the advisory fee rate charged to each fund, and that, to the extent in the future it were to be determined that material economies of scale had not been shared with a fund, the Board would seek to have those economies of scale shared with the fund.
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 Trust’s Investment Advisory Agreement and Administration Agreement with respect to the funds was in the best interests of each fund and its respective shareholders.
The Funds 35
BOARD MEMBERS INFORMATION (Unaudited)
36
Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, NewYork 10166.Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-645-6561. For individual account holders for Private Wealth Management clients, please contact your account officer or call 1-888-281-7350.
The Funds 37
OFFICERS OF THE FUND (Unaudited)
38
The Funds 39
For More Information
Telephone Wealth Management (WM) Clients, please contact your Account Officer or call 1-888-281-7350. Brokerage Clients of BNY Mellon Wealth Advisors (BNYMWA), please contact your financial representative or call 1-800-830-0549, Option 2. Individual Account holders, please call Dreyfus at 1-800-645-6561.
Mail WM Clients, write to your Account Officer, c/o The Bank of New York Mellon, One Mellon Bank Center, Pittsburgh, PA 15258 BNYMWA Brokerage Clients, write to your financial representative, P.O. Box 9012, Hicksville, NY 11802–9012 Individual Account Holders, write to: BNY Mellon Funds, P.O. Box 55268, Boston, MA 02205–8502
Each fund will disclose daily, on http://www.dreyfus.com, the fund’s complete schedule of holdings as of the end of the previous business day. The schedule of holdings will remain on the website until the fund files its Form N-Q or Form N-CSR for the period that includes the date of the posted holdings.
The funds file their 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 funds’ 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.
Information regarding how the funds voted proxies relating to portfolio securities for the most recent 12-month period ended June 30 is available on the SEC’s website at http://www.sec.gov and without charge, upon request, by calling 1-800-645-6561.
© 2010 MBSC Securities Corporation
MFTAR0810-MM
Item 2. Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.
Item 3. Audit Committee Financial Expert.
The Registrant's Board has determined that Thomas F. Ryan, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Thomas F. Ryan is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $466,545.00 in 2009 and $546,545.00 in 2010.
(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $70,591.00 in 2009 and $74,330.00 in 2010. These services consisted of one or more of the following: (i) agreed upon procedures related to compliance with Internal Revenue Code section 817(h), (ii) security counts required by Rule 17f-2 under the Investment Company Act of 1940, as amended, (iii) advisory services as to the accounting or disclosure treatment of Registrant transactions or events and (iv) advisory services to the acco unting or disclosure treatment of the actual or potential impact to the Registrant of final or proposed rules, standards or interpretations by the Securities and Exchange Commission, the Financial Accounting Standards Boards or other regulatory or standard-setting bodies.
The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2009 and $0 in 2010.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $40,290.00 in 2009 and $49,770.00 in 2010. These services consisted of review or preparation of U.S. federal, state, local and excise tax returns.
The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates, which required pre-approval by the Audit Committee were $0 in 2009 and $0 in 2010.
(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2009 and $0 in 2010.
The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were $0 in 2009 and $0 in 2010.
(e)(1) Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. The pre-approved services in the Policy can include pre-approved audit services, pre-approved audit-related services, pre-approved tax services and pre-approved all other services. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.
(e)(2) Note: None of the services described in paragraphs (b) through (d) of this Item 4 were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) None of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal account's full-time, permanent employees.
Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $3,557,000.00 in 2009 and $4,710,000.00 in 2010.
Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures applicable to Item 10.
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) Code of ethics referred to in Item 2.
(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.
BNY Mellon Funds Trust
By: /s/ Christopher Sheldon | |
Christopher Sheldon, President
| |
Date: | 10/19/2010 |
| |
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/ Christopher Sheldon | |
Christopher Sheldon, President
| |
Date: | 10/19/2010 |
| |
By: /s/ James Windels___ | |
James Windels, Treasurer
| |
Date: | 10/19/2010 |
|
EXHIBIT INDEX
(a)(1) Code of ethics referred to in Item 2.
(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)