We are pleased to present this annual report for Dreyfus Balanced Opportunity Fund, covering the 12-month period from December 1, 2017 through November 30, 2018. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.
The reporting period began with major global economies achieving above-trend growth. In the United States, a robust economy and strong labor markets encouraged the Federal Reserve to continue moving away from its accommodative monetary policy while other major central banks also began to consider monetary tightening. In the equity sphere, both U.S. and non-U.S. markets remained on an uptrend, though investor concerns about U.S. inflation and its effect on interest rates later began to weigh on global returns. Interest rates rose across the yield curve, putting pressure on bond prices.
Later in the reporting period, global growth trends began to diverge and market volatility returned. While the U.S. economy continued to grow at a healthy rate, Japan rebounded, but only briefly, from a weak first quarter, and the Eurozone economy began to moderate. Robust growth and strong corporate earnings continued to support U.S. stocks while other developed markets declined. Late in the reporting period, a broad sell-off occurred, partially offsetting earlier U.S. gains. Emerging markets remained under pressure as weakness in their currencies relative to the U.S. dollar added to investors’ uneasiness.
Fixed income markets continued to struggle as interest rates rose; the yield on the benchmark
10-year Treasury bond breached 3.2% despite only moderate inflation, but investor concerns about slowing global growth brought yields down toward the end of the reporting period.
Despite continuing doubts regarding trade, U.S. inflationary pressures and global growth, we are optimistic that the U.S. economy will remain strong in the near term. However, we remain attentive to signs that indicate potential changes on the horizon. As always, we encourage you to discuss the risks and opportunities in today’s investment environment with your financial advisor.
Thank you for your continued confidence and support.
DISCUSSION OF FUND PERFORMANCE(Unaudited)
For the period from December 1, 2017 through November 30, 2018, as provided by Vassilis Dagioglu and Torrey Zaches, Asset Allocation Portfolio Managers, Brian Ferguson, John C. Bailer, George E. DeFina, Mark A. Bogar, CFA, James A. Lydotes, CFA, Andrew Leger and David Bowser, Portfolio Managers
Market and Fund Performance Overview
For the 12-month period ended November 30, 2018, Dreyfus Balanced Opportunity Fund’s Class A shares, Class C shares, Class I shares, Class J shares, Class Y shares, and Class Z shares produced total returns of 3.24%, 2.43%, 3.51%, 3.46%, 3.52%, and 3.44%, respectively.1 In comparison, the S&P 500® Index and the Bloomberg Barclays U.S. Aggregate Bond Index (the “Bloomberg Index”), produced total returns of 6.27% and -1.34%, respectively, for the same period.2,3 Separately, a Customized Blended Index composed of 60% S&P 500® Index and 40% Bloomberg Index produced a total return of 3.32% for the same period.4
Stocks advanced moderately, and bonds generally lost a degree of value over the reporting period, amid economic growth and rising interest rates. The fund’s Class I, Class J, Class Y, and Class Z shares outperformed the Customized Blended Index, in part due to successful stock picking in the equity portfolio and a slight emphasis on equities over bonds.
On November 9, 2018, Vassilis Dagioglu and Torrey Zaches became asset allocation portfolio managers for the fund.
The Fund’s Investment Approach
The fund seeks high total return through a combination of capital appreciation and current income. To pursue its goal, the fund invests in a diversified mix of stocks and fixed-income securities. The fund varies the mix of stocks and bonds, but normally the fund allocates between 25% and 50% to fixed-income securities and between 50% and 75% in equities. The fund has appointed two asset allocation managers who will allocate fund assets among the fund’s equity portfolio managers and the fund’s fixed-income portfolio managers, based on an assessment of the relative return and risk of each asset class, analyzing several factors, including general economic conditions, anticipated future changes in interest rates and the outlook for stocks generally.
Among stocks, we strive to create a broadly diversified portfolio that includes a blend of growth and value stocks. Stock selection is made through extensive quantitative and fundamental research. The fund may invest up to 20% of its assets in foreign equity securities.
In the fixed-income portion of the fund’s portfolio, we may include corporate bonds, debentures, notes, mortgage-related securities, including collateralized mortgage obligations (CMOs), asset-backed securities, convertible securities, municipal obligations, zero coupon bonds, and money market instruments.
Economic Growth Amid Rising Volatility
A positive economic backdrop supported U.S. equity markets in late 2017, including sustained GDP growth, robust labor markets, and higher growth forecasts from the Federal Reserve Board (the “Fed”) for 2018. Passage of tax-reform legislation in December 2017
3
DISCUSSION OF FUND PERFORMANCE(Unaudited) (continued)
sparked additional market gains, driving the S&P 500® Index to new, all-time highs in January 2018. Some of the more economically sensitive market segments, such as the information technology and financials sectors, led the market’s advance at the time.
In the first few months of 2018, volatility entered the picture, as concerns over inflation and the potential for trade disputes roiled markets. However, U.S. markets were able to stabilize, resulting in an upward trend on the back of continued, positive economic data, corporate earnings strength, and robust consumer spending. Non-U.S. markets, however, slowed as the rate of economic improvement in areas such as the Eurozone stalled. In late summer, continued political rhetoric in the U.S. regarding trade and midterm elections, and concerns over issues abroad in areas such as Italy, Turkey, Argentina, and the United Kingdom weighed on sentiment. Despite strong underlying fundamentals, volatility crept back into the picture in U.S. markets. Tight labor markets, tightening monetary policy, and the possibility of slowing growth provoked a defensive sentiment among investors. In October, markets reversed and started to move lower. Continued worries over rising interest rates, trade disputes, and falling commodity prices pressured equity markets throughout the rest of the period.
In contrast, bonds produced negative returns, on average, in an environment of moderate economic growth, rising interest rates, a flattening yield curve, and accelerating inflation. Corporate debt, mortgages, and securitized instruments lagged Treasuries. Commercial mortgages and asset-backed securities performed in line with like-duration Treasuries.
Stock Allocation and Selections Buoyed Relative Results
The fund’s asset allocation strategy, including an emphasis on U.S. stocks, helped its performance during the reporting period. In addition, the fund’s stock selection strategies proved effective, particularly in the information technology, health care, and communication services sectors. Cisco Systems, HubSpot,ServiceNow, IDEXX Laboratories, and Verizon Communications were among top performers for the period. Underweight exposure to bond proxy sectors, such as utilities, real estate, and consumer staples, also helped relative results during the period. Conversely, overweights to the financials, materials, and energy sectors detracted from relative returns, as did an underweight to consumer discretionary. In addition, stock selection within the consumer discretionary and financials sectors detracted. In particular, an underweight to Amazon.com and exposure to banks and insurance companies weighed on results.
The fund’s bond portfolio performed in line with its index. The bond portfolio’s relatively short yield-curve positioning and holdings of 10-year Treasury Inflation-Protected Securities helped returns. Security selection, particularly in mortgages, was the largest detractor from relative performance. Credit selection in corporates also weighed on results.
A Cautious Investment Posture
From an asset-allocation perspective, we are conscious of valuation levels in some areas of the stock and bond markets. We believe that while bonds provide much needed diversification, they are richly valued. Therefore, while we have retained the fund’s emphasis on stocks over bonds, we also have maintained a cash position which we will continue to deploy at opportune times to increase the portfolio’s bond allocation as rates continue to rise.
4
Within the fund’s stock portfolio, we have established overweight exposure to sectors exhibiting lower valuations and that are cyclically sensitive, such as financials, materials, energy, and communication services. Conversely, we are underweight to information technology, consumer discretionary, industrials, and the bond proxy sectors such as consumer staples, utilities, real estate, and health care. Among bonds, we have maintained a modestly short average duration, as well as a small overweight to corporate bonds and relatively light holdings of mortgage-backed securities.
December 17, 2018
1 Total return includes reinvestment of dividends and any capital gains paid, and does not take into consideration the maximum initial sales charge in the case of Class A shares, or the applicable contingent deferred sales charge imposed on redemptions in the case of Class C 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. Return figures for the fund provided reflect the absorption of certain fund expenses by The Dreyfus Corporation pursuant to an undertaking in effect through March 29, 2019, 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. — The S&P 500® Index is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. Investors cannot invest directly in any index.
3 Source: Lipper Inc. — The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate, taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and nonagency). Investors cannot invest directly in any index.
4 The source for the Customized Blended Index is FactSet.
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.
Investing internationally involves special risks, including changes in currency exchange rates, political, economic, and social instability, a lack of comprehensive company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging-market countries than with more economically and politically established foreign countries.
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.
5
FUND PERFORMANCE(Unaudited)
Comparison of change in value of $10,000 investment in Dreyfus Balanced Opportunity Fund Class A shares, Class C shares, Class I shares, Class J shares, Class Y shares and Class Z shares and the S&P 500® Index, Bloomberg Barclays U.S. Aggregate Bond Index and an index comprised of 60% S&P 500® Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index (the “Customized Blended Index”)
† Source: Lipper Inc.
†† Source: FactSet
††† The total return figures presented for Class Y shares of the fund reflect the performance of the fund’s Class I shares for the period prior to 9/30/16 (the inception date for Class Y shares).
The above graph compares a $10,000 investment made in each of the Class A, Class C, Class I, Class J, Class Y and Class Z shares of Dreyfus Balanced Opportunity Fund on 11/30/08 to a $10,000 investment made in the S&P 500® Index, Bloomberg Barclays U.S. Aggregate Bond Index and Customized Blended Index on that date. All dividends and capital gain distributions are reinvested. Returns for the Customized Blended Index are re-balanced monthly.
The fund’s performance shown in the line graph above takes into account the maximum initial sales charge on Class A shares and all other applicable fees and expenses on all classes. The S&P 500® Index is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization. The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and nonagency). Unlike a mutual fund, the indices are 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.
6
| | | | | | |
Average Annual Total Returns as of 11/30/18 |
| | Inception
Date | 1 Year | 5 Years | 10 Years |
Class A shares | | | | | |
with maximum sales charge (5.75%) | | 1/30/04 | -2.70% | 5.04% | 9.17% |
without sales charge | | 1/30/04 | 3.24% | 6.29% | 9.81% |
Class C shares | | | | | |
with applicable redemption charge† | | 1/30/04 | 1.44% | 5.48% | 8.96% |
without redemption | | 1/30/04 | 2.43% | 5.48% | 8.96% |
Class I shares | | 1/30/04 | 3.51% | 6.55% | 10.09% |
Class J shares | | 3/16/87 | 3.46% | 6.54% | 10.02% |
Class Y shares | | 9/30/16 | 3.52% | 6.56%†† | 10.10%†† |
Class Z shares | | 12/17/04 | 3.44% | 6.48% | 9.91% |
S&P 500® Index | | | 6.27% | 11.11% | 14.31% |
Bloomberg Barclays U.S. Aggregate Bond Index | | | -1.34% | 2.03% | 3.67% |
Customized Blended Index | | | 3.32% | 7.54% | 10.18% |
† The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the date of purchase.
†† The total return performance figures presented for Class Y shares of the fund reflect the performance of the fund’s Class I shares for the period prior to 9/30/16 (the inception date for Class Y shares).
The performance data quoted represents past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. Current performance may be lower or higher than the performance quoted. Go to Dreyfus.com for the fund’s most recent month-end returns.
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. In addition to the performance of Class A shares shown with and without a maximum sales charge, the fund’s performance shown in the table takes into account all other applicable fees and expenses on all classes.
7
UNDERSTANDING YOUR FUND’S EXPENSES(Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Balanced Opportunity Fund from June 1, 2018 to November 30, 2018. 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 November 30, 2018 |
| | | | Class A | Class C | Class I | Class J | Class Y | Class Z |
Expenses paid per $1,000† | | $6.04 | | $9.79 | | $4.78 | | $4.78 | | $4.78 | | $5.23 |
Ending value (after expenses) | | $1,006.90 | | $1,003.00 | | $1,008.20 | | $1,007.80 | | $1,008.20 | | $1,007.80 |
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 November 30, 2018 |
| | | | | | | | | |
| | | | Class A | Class C | Class I | Class J | Class Y | Class Z |
Expenses paid per $1,000† | | $6.07 | | $9.85 | | $4.81 | | $4.81 | | $4.81 | | $5.27 |
Ending value (after expenses) | | $1,019.05 | | $1,015.29 | | $1,020.31 | | $1,020.31 | | $1,020.31 | | $1,019.85 |
† Expenses are equal to the fund’s annualized expense ratio of 1.20% for Class A, 1.95% for Class C, .95% for Class I, .95% for Class J, .95% for Class Y and 1.04% for Class Z, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
8
STATEMENT OF INVESTMENTS
November 30, 2018
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Bonds and Notes - 31.0% | | | | | |
Agriculture - .0% | | | | | |
Reynolds American,
Gtd. Notes | | 4.85 | | 9/15/2023 | | 75,000 | | 76,050 | |
Asset-Backed Certificates - .6% | | | | | |
CNH Equipment Trust,
Ser. 2018-B, Cl. A4 | | 3.37 | | 5/15/2024 | | 495,000 | | 496,542 | |
Dell Equipment Finance Trust,
Ser. 2017-2, Cl. A3 | | 2.19 | | 10/24/2022 | | 205,000 | a | 203,178 | |
Starwood Waypoint Homes Trust,
Ser. 2017-1, Cl. A, 1 Month LIBOR + .95% | | 3.26 | | 1/17/2035 | | 369,941 | a,b | 369,293 | |
Tricon American Homes,
Ser. 2017-SFR2, Cl. A | | 2.93 | | 1/17/2036 | | 244,739 | a | 233,206 | |
Verizon Owner Trust,
Ser. 2017-3A, Cl. A1A | | 2.06 | | 4/20/2022 | | 400,000 | a | 394,512 | |
Verizon Owner Trust,
Ser. 2018-1A, Cl. A1A | | 2.82 | | 9/20/2022 | | 360,000 | a | 357,788 | |
| | 2,054,519 | |
Asset-Backed Ctfs./Auto Receivables - .8% | | | | | |
AmeriCredit Automobile Receivables Trust,
Ser. 2015-3, Cl. C | | 2.73 | | 3/8/2021 | | 435,000 | | 434,404 | |
AmeriCredit Automobile Receivables Trust,
Ser. 2017-4, Cl. A3 | | 2.04 | | 7/18/2022 | | 500,000 | | 493,721 | |
CarMax Auto Owner Trust,
Ser. 2017-4, Cl. A4 | | 2.33 | | 5/15/2023 | | 170,000 | | 166,325 | |
Enterprise Fleet Financing,
Ser. 2017-3, Cl. A2 | | 2.13 | | 5/20/2023 | | 151,745 | a | 150,234 | |
Hyundai Auto Lease Securitization Trust,
Ser. 2017-C, Cl. A3 | | 2.12 | | 2/16/2021 | | 315,000 | a | 312,533 | |
Hyundai Auto Lease Securitization Trust,
Ser. 2017-C, Cl. A4 | | 2.21 | | 9/15/2021 | | 295,000 | a | 291,893 | |
OSCAR US Funding Trust IX,
Ser. 2018-2A, Cl. A4 | | 3.63 | | 9/10/2025 | | 320,000 | a | 319,794 | |
OSCAR US Funding Trust VII,
Ser. 2017-2A, Cl. A3 | | 2.45 | | 12/10/2021 | | 40,000 | a | 39,522 | |
OSCAR US Funding Trust VII,
Ser. 2017-2A, Cl. A4 | | 2.76 | | 12/10/2024 | | 50,000 | a | 49,077 | |
OSCAR US Funding Trust VIII,
Ser. 2018-1A, Cl. A4 | | 3.50 | | 5/12/2025 | | 380,000 | a | 380,426 | |
| | 2,637,929 | |
9
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Bonds and Notes - 31.0% (continued) | | | | | |
Asset-Backed Ctfs./Credit Cards - .1% | | | | | |
Delamare Cards MTN Issuer,
Ser. 2018-1A, Cl. A1, 1 Month LIBOR + .70% | | 3.16 | | 11/19/2025 | | 425,000 | a,b | 425,203 | |
Banks - 1.6% | | | | | |
Bank of America,
Sr. Unscd. Notes | | 3.00 | | 12/20/2023 | | 229,000 | | 219,700 | |
Bank of America,
Sr. Unscd. Notes | | 3.42 | | 12/20/2028 | | 200,000 | | 184,642 | |
Bank of America,
Sr. Unscd. Notes | | 3.50 | | 5/17/2022 | | 60,000 | | 59,609 | |
Bank of America,
Sr. Unscd. Notes | | 3.97 | | 3/5/2029 | | 330,000 | | 317,840 | |
Bank of America,
Sr. Unscd. Notes | | 4.00 | | 4/1/2024 | | 68,000 | | 67,823 | |
Citigroup,
Sr. Unscd. Notes | | 3.88 | | 10/25/2023 | | 325,000 | | 322,494 | |
Citigroup,
Sr. Unscd. Notes | | 4.50 | | 1/14/2022 | | 180,000 | | 183,236 | |
Citigroup,
Sr. Unscd. Notes | | 4.65 | | 7/30/2045 | | 260,000 | | 248,412 | |
Goldman Sachs Group,
Sr. Unscd. Notes | | 3.69 | | 6/5/2028 | | 100,000 | | 92,660 | |
Goldman Sachs Group,
Sr. Unscd. Notes | | 3.81 | | 4/23/2029 | | 190,000 | | 176,666 | |
Goldman Sachs Group,
Sr. Unscd. Notes, 3 Month LIBOR + 1.60% | | 4.31 | | 11/29/2023 | | 395,000 | b | 399,503 | |
JPMorgan Chase & Co,
Sr. Unscd. Notes | | 4.45 | | 12/5/2029 | | 335,000 | | 335,600 | |
JPMorgan Chase & Co.,
Sr. Unscd. Notes | | 4.50 | | 1/24/2022 | | 235,000 | | 240,672 | |
KeyBank,
Sr. Unscd. Notes | | 2.50 | | 11/22/2021 | | 250,000 | | 243,288 | |
KFW,
Gtd. Notes | | 2.38 | | 12/29/2022 | | 565,000 | | 551,813 | |
Lloyds Banking Group,
Sub. Notes | | 4.65 | | 3/24/2026 | | 200,000 | | 188,049 | |
Morgan Stanley,
Sr. Unscd. Bonds | | 3.70 | | 10/23/2024 | | 85,000 | | 82,746 | |
Morgan Stanley,
Sr. Unscd. Notes | | 3.75 | | 2/25/2023 | | 310,000 | | 307,231 | |
Morgan Stanley,
Sr. Unscd. Notes | | 4.00 | | 7/23/2025 | | 75,000 | | 73,449 | |
Morgan Stanley,
Sr. Unscd. Notes, 3 Month LIBOR + 1.18% | | 3.65 | | 1/20/2022 | | 110,000 | b | 110,378 | |
10
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Bonds and Notes - 31.0% (continued) | | | | | |
Banks - 1.6% (continued) | | | | | |
PNC Financial Services Group,
Sr. Unscd. Notes | | 3.30 | | 3/8/2022 | | 210,000 | | 207,778 | |
Wells Fargo & Co.,
Sr. Unscd. Notes | | 3.07 | | 1/24/2023 | | 175,000 | | 169,127 | |
Wells Fargo & Co.,
Sub. Notes | | 4.30 | | 7/22/2027 | | 410,000 | | 398,409 | |
| | 5,181,125 | |
Beverage Products - .1% | | | | | |
Anheuser-Busch InBev Worldwide,
Gtd. Notes | | 3.65 | | 2/1/2026 | | 45,000 | a | 42,583 | |
Anheuser-Busch InBev Worldwide,
Gtd. Notes | | 4.00 | | 4/13/2028 | | 110,000 | | 105,339 | |
Anheuser-Busch InBev Worldwide,
Gtd. Notes | | 4.90 | | 2/1/2046 | | 245,000 | a | 229,534 | |
Keurig Dr Pepper,
Gtd. Notes | | 4.06 | | 5/25/2023 | | 35,000 | a | 34,549 | |
| | 412,005 | |
Chemicals - .1% | | | | | |
Dow Chemical,
Sr. Unscd. Notes | | 4.63 | | 10/1/2044 | | 320,000 | | 284,339 | |
Commercial & Professional Services - .1% | | | | | |
ERAC USA Finance,
Gtd. Notes | | 7.00 | | 10/15/2037 | | 280,000 | a | 345,016 | |
Commercial Mortgage Pass-Through Ctfs. - .4% | | | | | |
Commercial Mortgage Trust,
Ser. 2015-LC19, Cl. A4 | | 3.18 | | 2/10/2048 | | 555,000 | | 540,115 | |
Commercial Mortgage Trust,
Ser. 2017-CD3, Cl. A4 | | 3.63 | | 2/10/2050 | | 465,000 | | 458,399 | |
DBCG Mortgage Trust,
Ser. 2017-BBG, Cl. A | | 3.01 | | 6/15/2034 | | 335,000 | a | 334,641 | |
| | 1,333,155 | |
Diversified Financials - .2% | | | | | |
American Express Credit,
Sr. Unscd. Notes, Ser. F | | 2.60 | | 9/14/2020 | | 185,000 | | 182,512 | |
Capital One Bank USA,
Sub. Notes | | 3.38 | | 2/15/2023 | | 300,000 | | 288,183 | |
Visa,
Sr. Unscd. Notes | | 3.15 | | 12/14/2025 | | 155,000 | | 149,881 | |
| | 620,576 | |
Electronic Components - .1% | | | | | |
Corning,
Sr. Unscd. Notes | | 4.38 | | 11/15/2057 | | 155,000 | | 125,421 | |
Energy - .8% | | | | | |
BP Capital Markets,
Gtd. Bonds | | 2.32 | | 2/13/2020 | | 550,000 | | 544,364 | |
11
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Bonds and Notes - 31.0% (continued) | | | | | |
Energy - .8% (continued) | | | | | |
Concho Resources,
Gtd. Notes | | 4.88 | | 10/1/2047 | | 60,000 | | 56,155 | |
ConocoPhillips,
Gtd. Notes | | 4.95 | | 3/15/2026 | | 280,000 | c | 296,088 | |
Energy Transfer Operating,
Sr. Unscd. Notes | | 4.90 | | 2/1/2024 | | 340,000 | | 341,582 | |
Energy Transfer Operating,
Sr. Unscd. Notes | | 5.95 | | 10/1/2043 | | 90,000 | | 84,207 | |
EQT,
Sr. Unscd. Notes | | 3.90 | | 10/1/2027 | | 105,000 | | 92,233 | |
Kinder Morgan Energy Partners,
Gtd. Notes | | 5.00 | | 3/1/2043 | | 140,000 | | 126,284 | |
Kinder Morgan Energy Partners,
Sr. Unscd. Notes | | 6.55 | | 9/15/2040 | | 210,000 | | 223,392 | |
MPLX,
Sr. Unscd. Notes | | 4.13 | | 3/1/2027 | | 110,000 | | 103,310 | |
MPLX,
Sr. Unscd. Notes | | 5.20 | | 3/1/2047 | | 210,000 | | 190,084 | |
Spectra Energy Partners,
Sr. Unscd. Notes | | 4.75 | | 3/15/2024 | | 75,000 | | 76,200 | |
TransCanada PipeLines,
Sr. Unscd. Notes | | 4.25 | | 5/15/2028 | | 275,000 | | 267,922 | |
Western Gas Partners,
Sr. Unscd. Notes | | 4.50 | | 3/1/2028 | | 65,000 | | 61,083 | |
Western Gas Partners,
Sr. Unscd. Notes | | 5.30 | | 3/1/2048 | | 45,000 | | 38,683 | |
| | 2,501,587 | |
Environmental Control - .1% | | | | | |
Republic Services,
Sr. Unscd. Notes | | 3.38 | | 11/15/2027 | | 75,000 | | 70,737 | |
Waste Management,
Gtd. Notes | | 4.60 | | 3/1/2021 | | 80,000 | | 81,831 | |
| | 152,568 | |
Food Products - .1% | | | | | |
Kraft Heinz Foods,
Gtd. Notes | | 3.95 | | 7/15/2025 | | 305,000 | | 292,939 | |
Kraft Heinz Foods,
Gtd. Notes | | 6.88 | | 1/26/2039 | | 65,000 | | 72,984 | |
| | 365,923 | |
Foreign/Governmental - .5% | | | | | |
Asian Development Bank,
Sr. Unscd. Notes | | 2.25 | | 1/20/2021 | | 315,000 | | 310,867 | |
Colombian Government,
Sr. Unscd. Notes | | 4.50 | | 3/15/2029 | | 200,000 | | 195,902 | |
European Investment Bank,
Sr. Unscd. Notes | | 2.50 | | 3/15/2023 | | 310,000 | | 303,630 | |
12
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Bonds and Notes - 31.0% (continued) | | | | | |
Foreign/Governmental - .5% (continued) | | | | | |
Inter-American Development Bank,
Unscd. Notes | | 2.50 | | 1/18/2023 | | 300,000 | | 294,449 | |
International Bank For Reconstruction & Development,
Unscd. Notes | | 2.00 | | 1/26/2022 | | 320,000 | | 310,867 | |
| | 1,415,715 | |
Health Care - .8% | | | | | |
Abbott Laboratories,
Sr. Unscd. Notes | | 4.90 | | 11/30/2046 | | 170,000 | | 176,264 | |
Aetna,
Sr. Unscd. Notes | | 2.80 | | 6/15/2023 | | 525,000 | | 497,118 | |
AmerisourceBergen,
Sr. Unscd. Notes | | 3.25 | | 3/1/2025 | | 130,000 | | 122,678 | |
CVS Health,
Sr. Unscd. Notes | | 4.30 | | 3/25/2028 | | 320,000 | | 312,295 | |
Gilead Sciences,
Sr. Unscd. Notes | | 3.65 | | 3/1/2026 | | 75,000 | | 72,930 | |
Gilead Sciences,
Sr. Unscd. Notes | | 4.75 | | 3/1/2046 | | 110,000 | | 106,167 | |
Medtronic,
Gtd. Notes | | 4.63 | | 3/15/2045 | | 345,000 | | 352,637 | |
Mylan,
Gtd. Notes | | 3.15 | | 6/15/2021 | | 195,000 | | 190,505 | |
Shire Acquisitions Investments Ireland,
Gtd. Notes | | 2.88 | | 9/23/2023 | | 295,000 | | 276,454 | |
Thermo Fisher Scientific,
Sr. Unscd. Notes | | 2.95 | | 9/19/2026 | | 195,000 | | 177,963 | |
UnitedHealth Group,
Sr. Unscd. Notes | | 4.75 | | 7/15/2045 | | 155,000 | | 160,985 | |
| | 2,445,996 | |
Insurance - .5% | | | | | |
American International Group,
Sr. Unscd. Notes | | 4.88 | | 6/1/2022 | | 460,000 | | 472,328 | |
MassMutual Global Funding II,
Scd. Notes | | 2.95 | | 1/11/2025 | | 200,000 | a | 190,617 | |
Metropolitan Life Global Funding I,
Sr. Scd. Notes | | 2.40 | | 1/8/2021 | | 405,000 | a | 396,692 | |
Metropolitan Life Global Funding I,
Sr. Scd. Notes | | 3.00 | | 9/19/2027 | | 545,000 | a | 507,939 | |
Principal Financial Group,
Gtd. Notes | | 4.30 | | 11/15/2046 | | 125,000 | | 113,111 | |
| | 1,680,687 | |
Internet Software & Services - .1% | | | | | |
Amazon.com,
Sr. Unscd. Notes | | 4.05 | | 8/22/2047 | | 175,000 | | 165,113 | |
13
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Bonds and Notes - 31.0% (continued) | | | | | |
Media - .5% | | | | | |
21st Century Fox America,
Gtd. Notes | | 4.00 | | 10/1/2023 | | 55,000 | | 55,649 | |
21st Century Fox America,
Gtd. Notes | | 6.65 | | 11/15/2037 | | 245,000 | | 312,281 | |
Charter Communication Operating,
Sr. Scd. Notes | | 4.91 | | 7/23/2025 | | 185,000 | | 184,434 | |
Comcast,
Gtd. Notes | | 6.50 | | 11/15/2035 | | 210,000 | | 246,588 | |
Cox Communications,
Sr. Unscd. Notes | | 4.60 | | 8/15/2047 | | 140,000 | a | 125,263 | |
NBCUniversal Media,
Gtd. Notes | | 5.15 | | 4/30/2020 | | 240,000 | | 246,070 | |
Sky,
Gtd. Notes | | 3.75 | | 9/16/2024 | | 265,000 | a | 261,192 | |
Warner Media,
Gtd. Debs. | | 5.35 | | 12/15/2043 | | 225,000 | | 211,765 | |
| | 1,643,242 | |
Metals & Mining - .0% | | | | | |
Glencore Funding,
Gtd. Notes | | 3.00 | | 10/27/2022 | | 95,000 | a | 90,924 | |
Municipal Bonds - .3% | | | | | |
Los Angeles Department of Water and Power System,
Revenue Bonds (Build America Bonds) | | 5.72 | | 7/1/2039 | | 120,000 | | 143,314 | |
Metropolitan Transportation Authority,
Dedicated Tax Fund Revenue Bonds (Build America Bonds) | | 6.09 | | 11/15/2040 | | 10,000 | | 12,055 | |
Metropolitan Transportation Authority,
Revenue Bonds (Build America Bonds) | | 6.55 | | 11/15/2031 | | 225,000 | | 270,585 | |
New Jersey Economic Development Authority,
School Facilities Construction Revenue Bonds | | 4.45 | | 6/15/2020 | | 425,000 | | 430,687 | |
New York City,
GO (Build America Bonds) | | 5.99 | | 12/1/2036 | | 135,000 | | 160,896 | |
| | 1,017,537 | |
Real Estate - .4% | | | | | |
Alexandria Real Estate Equities,
Gtd. Notes | | 3.95 | | 1/15/2027 | | 40,000 | | 38,360 | |
Alexandria Real Estate Equities,
Gtd. Notes | | 4.50 | | 7/30/2029 | | 165,000 | | 162,773 | |
Digital Realty Trust,
Gtd. Notes | | 3.70 | | 8/15/2027 | | 255,000 | | 237,425 | |
Simon Property Group,
Sr. Unscd. Notes | | 3.50 | | 9/1/2025 | | 300,000 | | 290,987 | |
14
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Bonds and Notes - 31.0% (continued) | | | | | |
Real Estate - .4% (continued) | | | | | |
Ventas Realty,
Gtd. Notes | | 3.10 | | 1/15/2023 | | 210,000 | | 204,286 | |
Vereit Operating Partnership,
Gtd. Notes | | 3.95 | | 8/15/2027 | | 190,000 | | 175,217 | |
| | 1,109,048 | |
Retailing - .0% | | | | | |
Dollar Tree,
Sr. Unscd. Notes | | 4.20 | | 5/15/2028 | | 110,000 | | 102,792 | |
Semiconductors & Semiconductor Equipment - .1% | | | | | |
Broadcom,
Gtd. Notes | | 3.00 | | 1/15/2022 | | 390,000 | | 375,470 | |
Technology Hardware & Equipment - .1% | | | | | |
Dell International,
Sr. Scd. Notes | | 6.02 | | 6/15/2026 | | 175,000 | a | 177,240 | |
Hewlett Packard Enterprise,
Sr. Unscd. Notes | | 4.40 | | 10/15/2022 | | 75,000 | | 76,269 | |
| | 253,509 | |
Telecommunication Services - .3% | | | | | |
AT&T,
Sr. Unscd. Notes | | 5.35 | | 9/1/2040 | | 85,000 | | 80,498 | |
AT&T,
Sr. Unscd. Notes | | 5.45 | | 3/1/2047 | | 325,000 | c | 308,980 | |
Sprint Spectrum,
Sr. Scd. Notes | | 4.74 | | 3/20/2025 | | 200,000 | a | 199,250 | |
Telefonica Emisiones,
Gtd. Notes | | 5.21 | | 3/8/2047 | | 150,000 | | 136,647 | |
Verizon Communications,
Sr. Unscd. Notes | | 3.38 | | 2/15/2025 | | 349,000 | | 336,347 | |
| | 1,061,722 | |
Transportation - .2% | | | | | |
CSX,
Sr. Unscd. Notes | | 2.60 | | 11/1/2026 | | 380,000 | | 340,032 | |
CSX,
Sr. Unscd. Notes | | 3.35 | | 11/1/2025 | | 205,000 | | 196,488 | |
FedEx,
Gtd. Notes | | 4.40 | | 1/15/2047 | | 205,000 | | 182,649 | |
| | 719,169 | |
U.S. Government Agencies - .3% | | | | | |
Federal Home Loan Bank,
Bonds | | 1.88 | | 11/29/2021 | | 445,000 | | 432,505 | |
Federal National Mortgage Association,
Notes | | 2.38 | | 1/19/2023 | | 575,000 | d | 562,965 | |
| | 995,470 | |
15
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Bonds and Notes - 31.0% (continued) | | | | | |
U.S. Government Agencies Mortgage-Backed - 6.7% | | | | | |
Federal Home Loan Mortgage Corp.: | | | |
3.00%, 11/1/46-12/1/46 | | | 1,300,121 | d | 1,241,321 | |
3.50%, 12/1/41-11/1/44 | | | 2,624,695 | d | 2,590,223 | |
5.50%, 4/1/22-1/1/36 | | | 92,079 | d | 98,280 | |
Federal National Mortgage Association: | | | |
2.87%, 1/1/48 | | | 571,776 | d | 567,724 | |
2.89%, 12/1/47 | | | 503,423 | d | 500,036 | |
3.00%, 5/1/30-7/1/43 | | | 2,025,016 | d | 1,978,625 | |
3.50%, 5/1/38-2/1/48 | | | 7,480,432 | d | 7,364,929 | |
4.00%, 7/1/42-6/1/47 | | | 1,130,718 | d | 1,145,588 | |
4.50%, 2/1/39-9/1/43 | | | 1,689,180 | d | 1,756,584 | |
5.00%, 8/1/20-7/1/39 | | | 385,651 | d | 407,959 | |
5.50%, 9/1/34-5/1/39 | | | 68,259 | d | 74,161 | |
8.00%, 3/1/30 | | | 107 | d | 108 | |
Government National Mortgage Association I: | | | |
5.50%, 4/15/33 | | | 19,850 | | 21,771 | |
Government National Mortgage Association II: | | | |
3.00%, 1/20/45-11/20/47 | | | 1,578,211 | | 1,523,768 | |
4.00%, 10/20/47-1/20/48 | | | 1,293,971 | | 1,311,639 | |
4.50%, 7/20/48 | | | 972,975 | | 1,004,846 | |
| | 21,587,562 | |
U.S. Government Securities - 14.6% | | | | | |
U.S. Treasury Bonds | | 3.13 | | 5/15/2048 | | 4,630,000 | | 4,470,572 | |
U.S. Treasury Bonds | | 4.50 | | 2/15/2036 | | 2,755,000 | c | 3,265,159 | |
U.S. Treasury Floating Rate Notes,
3 Month T-Bill FLAT | | 2.38 | | 1/31/2020 | | 5,020,000 | b | 5,022,127 | |
U.S. Treasury Inflation Protected Securities,
Bonds | | 0.88 | | 2/15/2047 | | 371,245 | e | 337,432 | |
U.S. Treasury Inflation Protected Securities,
Notes | | 0.38 | | 1/15/2027 | | 1,212,246 | e | 1,148,043 | |
U.S. Treasury Notes | | 2.38 | | 4/15/2021 | | 14,005,000 | | 13,865,224 | |
U.S. Treasury Notes | | 2.50 | | 3/31/2023 | | 8,535,000 | | 8,416,977 | |
U.S. Treasury Notes | | 2.63 | | 2/28/2023 | | 2,120,000 | | 2,101,947 | |
U.S. Treasury Notes | | 2.75 | | 2/15/2028 | | 8,780,000 | | 8,604,057 | |
| | 47,231,538 | |
Utilities - .5% | | | | | |
Berkshire Hathaway Energy,
Sr. Unscd. Notes | | 3.25 | | 4/15/2028 | | 170,000 | | 160,100 | |
Dominion Energy,
Sr. Unscd. Notes | | 3.90 | | 10/1/2025 | | 165,000 | | 161,205 | |
Duke Energy,
Sr. Unscd. Notes | | 3.15 | | 8/15/2027 | | 275,000 | | 252,969 | |
16
| | | | | | | | | | |
| |
Description | Coupon
Rate (%) | | Maturity
Date | | Principal
Amount ($) | | Value ($) | |
Bonds and Notes - 31.0% (continued) | | | | | |
Utilities - .5% (continued) | | | | | |
Exelon Generation,
Sr. Unscd. Notes | | 6.25 | | 10/1/2039 | | 440,000 | | 457,063 | |
Kentucky Utilities,
First Mortgage Bonds | | 4.38 | | 10/1/2045 | | 105,000 | | 103,241 | |
Louisville Gas & Electric,
First Mortgage Bonds | | 4.38 | | 10/1/2045 | | 125,000 | | 122,906 | |
NiSource,
Gtd. Notes | | 5.65 | | 2/1/2045 | | 230,000 | | 240,457 | |
Sempra Energy,
Sr. Unscd. Notes | | 3.40 | | 2/1/2028 | | 170,000 | | 154,984 | |
Sierra Pacific Power,
Mortgage Notes, Ser. P | | 6.75 | | 7/1/2037 | | 25,000 | | 31,044 | |
| | 1,683,969 | |
TotalBonds and Notes
(cost $101,777,222) | | 100,094,879 | |
Description | | | | | Shares | | Value ($) | |
Common Stocks - 64.6% | | | | | |
Advertising - .8% | | | | | |
Omnicom Group | | | | | | 34,998 | c | 2,693,796 | |
Aerospace & Defense - 1.8% | | | | | |
L3 Technologies | | | | | | 4,366 | | 800,244 | |
Raytheon | | | | | | 5,795 | | 1,016,095 | |
United Technologies | | | | | | 32,862 | | 4,003,906 | |
| | 5,820,245 | |
Airlines - 1.2% | | | | | |
Delta Air Lines | | | | | | 63,582 | | 3,860,063 | |
Automobiles & Components - .3% | | | | | |
General Motors | | | | | | 23,810 | | 903,590 | |
Banks - 7.3% | | | | | |
Bank of America | | | | | | 183,323 | | 5,206,373 | |
Citigroup | | | | | | 62,458 | | 4,046,654 | |
JPMorgan Chase & Co. | | | | | | 73,754 | | 8,200,707 | |
U.S. Bancorp | | | | | | 63,762 | | 3,472,479 | |
Wells Fargo & Co. | | | | | | 48,285 | | 2,620,910 | |
| | 23,547,123 | |
Beverage Products - 1.3% | | | | | |
Coca-Cola European Partners | | | | | | 10,339 | | 501,855 | |
CVS Health | | | | | | 32,236 | | 2,585,327 | |
PepsiCo | | | | | | 10,123 | | 1,234,399 | |
| | 4,321,581 | |
Chemicals - 4.3% | | | | | |
CF Industries Holdings | | | | | | 47,830 | | 2,017,948 | |
DowDuPont | | | | | | 44,122 | | 2,552,458 | |
Linde | | | | | | 8,962 | | 1,425,406 | |
17
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | | | | | Shares | | Value ($) | |
Common Stocks - 64.6%(continued) | | | | | |
Chemicals - 4.3% (continued) | | | | | |
Martin Marietta Materials | | | | | | 8,509 | c | 1,622,581 | |
Mosaic | | | | | | 95,369 | | 3,433,284 | |
Vulcan Materials | | | | | | 26,730 | | 2,825,628 | |
| | 13,877,305 | |
Commercial & Professional Services - .7% | | | | | |
Cintas | | | | | | 5,116 | | 958,636 | |
FleetCor Technologies | | | | | | 6,194 | f | 1,197,920 | |
| | 2,156,556 | |
Consumer Discretionary - .9% | | | | | |
Chipotle Mexican Grill | | | | | | 2,289 | f | 1,083,178 | |
Las Vegas Sands | | | | | | 35,550 | | 1,953,117 | |
| | 3,036,295 | |
Consumer Durables & Apparel - .3% | | | | | |
PVH | | | | | | 8,758 | | 967,847 | |
Consumer Staples - .2% | | | | | |
Colgate-Palmolive | | | | | | 9,935 | | 631,071 | |
Diversified Financials - 2.8% | | | | | |
American Express | | | | | | 6,959 | | 781,287 | |
Ameriprise Financial | | | | | | 8,657 | | 1,123,246 | |
Capital One Financial | | | | | | 8,345 | | 748,380 | |
Goldman Sachs Group | | | | | | 6,252 | | 1,192,194 | |
LPL Financial Holdings | | | | | | 11,952 | | 766,960 | |
Morgan Stanley | | | | | | 30,376 | | 1,348,391 | |
Raymond James Financial | | | | | | 8,054 | | 642,145 | |
Voya Financial | | | | | | 51,704 | | 2,324,095 | |
| | 8,926,698 | |
Electronic Components - .9% | | | | | |
Honeywell International | | | | | | 9,557 | | 1,402,490 | |
Quanta Services | | | | | | 43,196 | f | 1,516,180 | |
| | 2,918,670 | |
Energy - 5.2% | | | | | |
Anadarko Petroleum | | | | | | 29,382 | | 1,554,308 | |
Apergy | | | | | | 19,184 | | 657,628 | |
Hess | | | | | | 52,286 | | 2,817,693 | |
Marathon Petroleum | | | | | | 65,702 | | 4,281,142 | |
Occidental Petroleum | | | | | | 54,042 | | 3,797,531 | |
Phillips 66 | | | | | | 21,826 | | 2,041,168 | |
Schlumberger | | | | | | 18,024 | | 812,882 | |
Valero Energy | | | | | | 9,541 | | 762,326 | |
| | 16,724,678 | |
Food & Staples Retailing - .5% | | | | | |
Costco Wholesale | | | | | | 6,968 | | 1,611,559 | |
18
| | | | | | | | | | |
| |
Description | | | | | Shares | | Value ($) | |
Common Stocks - 64.6%(continued) | | | | | |
Food Products - 1.2% | | | | | |
ConAgra Brands | | | | | | 68,583 | | 2,217,974 | |
Kellogg | | | | | | 7,720 | | 491,378 | |
Kraft Heinz | | | | | | 9,951 | | 508,695 | |
Mondelez International, Cl. A | | | | | | 11,839 | | 532,518 | |
| | 3,750,565 | |
Food Service - .5% | | | | | |
McDonald's | | | | | | 8,034 | | 1,514,489 | |
Health Care - 8.9% | | | | | |
Abbott Laboratories | | | | | | 14,279 | | 1,057,360 | |
Becton Dickinson and Co. | | | | | | 5,045 | | 1,275,124 | |
Biogen | | | | | | 4,153 | f | 1,385,939 | |
BioMarin Pharmaceutical | | | | | | 4,231 | f | 406,303 | |
Boston Scientific | | | | | | 14,630 | f | 551,112 | |
Bristol-Myers Squibb | | | | | | 9,600 | | 513,216 | |
Centene | | | | | | 3,619 | f | 514,803 | |
Cigna | | | | | | 2,441 | | 545,271 | |
DaVita | | | | | | 9,974 | f | 658,882 | |
Edwards Lifesciences | | | | | | 10,131 | f | 1,641,323 | |
HCA Healthcare | | | | | | 3,630 | | 522,684 | |
Humana | | | | | | 1,531 | | 504,419 | |
Illumina | | | | | | 3,545 | f | 1,196,438 | |
Jazz Pharmaceuticals | | | | | | 6,768 | f | 1,023,322 | |
McKesson | | | | | | 4,008 | | 498,996 | |
Medtronic | | | | | | 16,269 | | 1,586,716 | |
Merck & Co. | | | | | | 88,637 | | 7,032,460 | |
Pfizer | | | | | | 80,500 | | 3,721,515 | |
Quest Diagnostics | | | | | | 5,888 | | 521,500 | |
UnitedHealth Group | | | | | | 6,257 | | 1,760,470 | |
Vertex Pharmaceuticals | | | | | | 5,222 | f | 944,085 | |
WellCare Health Plans | | | | | | 3,592 | f | 915,529 | |
| | 28,777,467 | |
Industrials - .4% | | | | | |
Dover | | | | | | 5,890 | | 500,002 | |
General Electric | | | | | | 31,091 | | 233,183 | |
Xerox | | | | | | 17,623 | | 474,411 | |
| | 1,207,596 | |
Information Technology - 4.2% | | | | | |
Activision Blizzard | | | | | | 20,841 | | 1,039,549 | |
HubSpot | | | | | | 6,308 | f | 877,001 | |
International Business Machines | | | | | | 23,078 | | 2,867,903 | |
Microsoft | | | | | | 45,020 | | 4,992,268 | |
Oracle | | | | | | 25,644 | | 1,250,401 | |
Teradata | | | | | | 13,594 | c,f | 511,542 | |
19
STATEMENT OF INVESTMENTS (continued)
| | | | | | | | | | |
| |
Description | | | | | Shares | | Value ($) | |
Common Stocks - 64.6%(continued) | | | | | |
Information Technology - 4.2% (continued) | | | | | |
Visa, Cl. A | | | | | | 15,128 | | 2,143,789 | |
| | 13,682,453 | |
Insurance - 3.6% | | | | | |
American International Group | | | | | | 30,935 | | 1,337,939 | |
Assurant | | | | | | 7,569 | | 736,010 | |
Athene Holding | | | | | | 10,573 | f | 459,820 | |
Berkshire Hathaway | | | | | | 38,210 | f | 8,338,950 | |
Hartford Financial Services Group | | | | | | 20,484 | | 905,188 | |
| | 11,777,907 | |
Internet Software & Services - 3.2% | | | | | |
Alphabet, Cl. A | | | | | | 718 | f | 796,729 | |
Alphabet, Cl. C | | | | | | 4,297 | f | 4,702,766 | |
Amazon.com | | | | | | 2,536 | f | 4,286,271 | |
GrubHub | | | | | | 6,368 | f | 498,551 | |
| | 10,284,317 | |
Media - 1.1% | | | | | |
Comcast, Cl. A | | | | | | 91,780 | | 3,580,338 | |
Metals & Mining - .7% | | | | | |
Freeport-McMoRan | | | | | | 132,297 | | 1,579,626 | |
Newmont Mining | | | | | | 23,538 | | 761,219 | |
| | 2,340,845 | |
Real Estate - 1.1% | | | | | |
Lamar Advertising, Cl. A | | | | | | 28,617 | g | 2,170,313 | |
Outfront Media | | | | | | 65,866 | g | 1,368,695 | |
| | 3,539,008 | |
Retailing - .3% | | | | | |
O'Reilly Automotive | | | | | | 3,050 | f | 1,057,679 | |
Semiconductors & Semiconductor Equipment - .5% | | | | | |
Broadcom | | | | | | 2,291 | | 543,906 | |
NVIDIA | | | | | | 3,119 | | 509,738 | |
Texas Instruments | | | | | | 5,215 | | 520,718 | |
| | 1,574,362 | |
Technology Hardware & Equipment - 5.1% | | | | | |
Apple | | | | | | 14,971 | | 2,673,521 | |
Cisco Systems | | | | | | 156,720 | | 7,502,186 | |
Corning | | | | | | 66,965 | | 2,157,612 | |
Harris | | | | | | 6,921 | | 989,357 | |
Palo Alto Networks | | | | | | 3,990 | f | 690,071 | |
Qualcomm | | | | | | 40,993 | | 2,388,252 | |
| | 16,400,999 | |
Telecommunication Services - 3.7% | | | | | |
AT&T | | | | | | 156,988 | | 4,904,305 | |
20
| | | | | | | | | | |
| |
Description | | | | | Shares | | Value ($) | |
Common Stocks - 64.6%(continued) | | | | | |
Telecommunication Services - 3.7% (continued) | | | | | |
Verizon Communications | | | | | | 115,962 | | 6,992,509 | |
| | 11,896,814 | |
Transportation - .5% | | | | | |
Union Pacific | | | | | | 10,971 | | 1,687,120 | |
Utilities - 1.1% | | | | | |
FirstEnergy | | | | | | 19,577 | c | 740,598 | |
PG&E | | | | | | 4,032 | f | 106,364 | |
PPL | | | | | | 94,622 | c | 2,894,487 | |
| | 3,741,449 | |
TotalCommon Stocks
(cost $181,120,434) | | 208,810,485 | |
| | 1-Day
Yield (%) | | | | | | | |
Investment Companies - 7.7% | | | | | |
Registered Investment Companies - 7.7% | | | | | |
Dreyfus Institutional Preferred Government Plus Money Market Fund
(cost $24,739,980) | | 2.23 | | | | 24,739,980 | h | 24,739,980 | |
| | | | | | | | | |
Investment of Cash Collateral for Securities Loaned - .3% | | | | | |
Registered Investment Companies - .3% | | | | | |
Dreyfus Institutional Preferred Government Money Market Fund, Institutional Shares
(cost $1,036,358) | | 2.19 | | | | 1,036,358 | h | 1,036,358 | |
Total Investments(cost $308,673,994) | | 103.6% | 334,681,702 | |
Liabilities, Less Cash and Receivables | | (3.6%) | (11,602,615) | |
Net Assets | | 100.0% | 323,079,087 | |
LIBOR—London Interbank Offered Rate
a Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2018, these securities were valued at $6,462,099 or 2.0% of net assets.
b Variable rate security—rate shown is the interest rate in effect at period end.
c Security, or portion thereof, on loan. At November 30, 2018, the value of the fund’s securities on loan was $8,149,274 and the value of the collateral held by the fund was $8,352,180, consisting of cash collateral of $1,036,358 and U.S. Government & Agency securities valued at $7,315,822.
d The Federal Housing Finance Agency (“FHFA”) placed the Federal Home Loan Mortgage Corporation and Federal National Mortgage Association into conservatorship with FHFA as the conservator. As such, the FHFA oversees the continuing affairs of these companies.
e Principal amount for accrual purposes is periodically adjusted based on changes in the Consumer Price Index.
f Non-income producing security.
g Investment in real estate investment trust.
h Investment in affiliated issuer. The investment objective of this investment company is publicly available and can be found within the investment company’s prospectus.
21
STATEMENT OF INVESTMENTS (continued)
| | |
Portfolio Summary (Unaudited)† | Value (%) |
Financial | 18.1 |
Government | 15.7 |
Consumer, Non-cyclical | 13.9 |
Communications | 12.2 |
Investment Companies | 8.0 |
Mortgage Securities | 7.1 |
Technology | 6.0 |
Energy | 5.9 |
Industrial | 5.6 |
Consumer, Cyclical | 4.0 |
Basic Materials | 3.8 |
Utilities | 1.7 |
Asset Backed Securities | 1.6 |
| | 103.6 |
† Based on net assets.
See notes to financial statements.
22
STATEMENT OF INVESTMENTS IN AFFILIATED ISSUERS
| | | | | | | |
Registered Investment Companies | Value
11/30/17 ($) | Purchases ($) | Sales ($) | Value
11/30/18 ($) | Net
Assets (%) | Dividends/
Distributions ($) |
Dreyfus Institutional Preferred Government Money Market Fund, Institutional Shares | 1,079,769 | 36,729,416 | 36,772,827 | 1,036,358 | .3 | — |
Dreyfus Institutional Preferred Government Plus Money Market Fund | 39,957,405 | 51,210,491 | 66,427,916 | 24,739,980 | 7.7 | 464,665 |
Total | 41,037,174 | 87,939,907 | 103,200,743 | 25,776,338 | 8.0 | 464,665 |
23
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2018
| | | | | | | |
| | | | | | |
| | | Cost | | Value | |
Assets ($): | | | | |
Investments in securities—See Statement of Investments
(including securities on loan, valued at $8,149,274)—Note 1(c): | | | |
Unaffiliated issuers | 282,897,656 | | 308,905,364 | |
Affiliated issuers | | 25,776,338 | | 25,776,338 | |
Cash denominated in foreign currency | | | 2,513 | | 2,484 | |
Receivable for investment securities sold | | 1,251,127 | |
Dividends, interest and securities lending income receivable | | 914,842 | |
Receivable for shares of Beneficial Interest subscribed | | 240,214 | |
Prepaid expenses | | | | | 64,252 | |
| | | | | 337,154,621 | |
Liabilities ($): | | | | |
Due to The Dreyfus Corporation and affiliates—Note 3(c) | | | | 267,204 | |
Payable for investment securities purchased | | 12,520,760 | |
Liability for securities on loan—Note 1(c) | | 1,036,358 | |
Payable for shares of Beneficial Interest redeemed | | 147,850 | |
Trustees fees and expenses payable | | 3,031 | |
Accrued expenses | | | | | 100,331 | |
| | | | | 14,075,534 | |
Net Assets ($) | | | 323,079,087 | |
Composition of Net Assets ($): | | | | |
Paid-in capital | | | | | 272,494,351 | |
Total distributable earnings (loss) | | | | | 50,584,736 | |
Net Assets ($) | | | 323,079,087 | |
| | | | | | | | |
Net Asset Value Per Share | Class A | Class C | Class I | Class J | Class Y | Class Z | |
Net Assets ($) | 240,417,842 | 11,805,034 | 21,301,140 | 16,414,958 | 11,157 | 33,128,956 | |
Shares Outstanding | 10,355,262 | 509,696 | 914,061 | 704,391 | 478.7 | 1,430,572 | |
Net Asset Value Per Share ($) | 23.22 | 23.16 | 23.30 | 23.30 | 23.31 | 23.16 | |
| | | | | | | | |
See notes to financial statements. | | | | | | | |
24
STATEMENT OF OPERATIONS
Year Ended November 30, 2018
| | | | | | | |
| | | | | | |
| | | | | | |
Investment Income ($): | | | | |
Income: | | | | |
Dividends: | |
Unaffiliated issuers | | | 3,945,972 | |
Affiliated issuers | | | 464,665 | |
Interest | | | 2,613,054 | |
Income from securities lending—Note 1(c) | | | 15,765 | |
Total Income | | | 7,039,456 | |
Expenses: | | | | |
Management fee—Note 3(a) | | | 2,556,800 | |
Shareholder servicing costs—Note 3(c) | | | 912,951 | |
Professional fees | | | 108,804 | |
Registration fees | | | 98,783 | |
Distribution fees—Note 3(b) | | | 87,660 | |
Prospectus and shareholders’ reports | | | 31,703 | |
Trustees’ fees and expenses—Note 3(d) | | | 23,867 | |
Custodian fees—Note 3(c) | | | 16,455 | |
Loan commitment fees—Note 2 | | | 7,752 | |
Miscellaneous | | | 68,104 | |
Total Expenses | | | 3,912,879 | |
Less—reduction in expenses due to undertaking—Note 3(a) | | | (127,261) | |
Less—reduction in fees due to earnings credits—Note 3(c) | | | (240) | |
Net Expenses | | | 3,785,378 | |
Investment Income—Net | | | 3,254,078 | |
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | | |
Net realized gain (loss) on investments and foreign currency transactions | 22,730,156 | |
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions | | | (15,737,006) | |
Net Realized and Unrealized Gain (Loss) on Investments | | | 6,993,150 | |
Net Increase in Net Assets Resulting from Operations | | 10,247,228 | |
| | | | | | | |
See notes to financial statements. | | | | | |
25
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | | | |
| | | | Year Ended November 30, |
| | | | 2018 | | 2017a | |
Operations ($): | | | | | | | | |
Investment income—net | | | 3,254,078 | | | | 2,611,988 | |
Net realized gain (loss) on investments | | 22,730,156 | | | | 16,246,236 | |
Net unrealized appreciation (depreciation)
on investments | | (15,737,006) | | | | 13,244,493 | |
Net Increase (Decrease) in Net Assets
Resulting from Operations | 10,247,228 | | | | 32,102,717 | |
Distributions ($): | |
Distributions to shareholders: | | | | | | | | |
Class A | | | (11,614,705) | | | | (1,996,036) | |
Class C | | | (503,581) | | | | (92,761) | |
Class I | | | (721,852) | | | | (158,197) | |
Class J | | | (905,473) | | | | (231,241) | |
Class Y | | | (570) | | | | (135) | |
Class Z | | | (1,739,172) | | | | (434,947) | |
Total Distributions | | | (15,485,353) | | | | (2,913,317) | |
Beneficial Interest Transactions ($): | |
Net proceeds from shares sold: | | | | | | | | |
Class A | | | 32,757,703 | | | | 55,527,584 | |
Class C | | | 3,160,504 | | | | 2,780,740 | |
Class I | | | 16,090,044 | | | | 19,319,417 | |
Class J | | | 314,875 | | | | 444,478 | |
Class Z | | | 694,665 | | | | 1,201,092 | |
Distributions reinvested: | | | | | | | | |
Class A | | | 11,029,625 | | | | 1,873,917 | |
Class C | | | 420,894 | | | | 67,037 | |
Class I | | | 583,590 | | | | 149,003 | |
Class J | | | 866,126 | | | | 220,656 | |
Class Z | | | 1,652,497 | | | | 413,294 | |
Cost of shares redeemed: | | | | | | | | |
Class A | | | (31,130,074) | | | | (28,834,649) | |
Class C | | | (14,845,011) | | | | (10,404,613) | |
Class I | | | (9,478,136) | | | | (14,740,977) | |
Class J | | | (2,686,979) | | | | (1,948,035) | |
Class Z | | | (4,079,577) | | | | (4,465,224) | |
Increase (Decrease) in Net Assets
from Beneficial Interest Transactions | 5,350,746 | | | | 21,603,720 | |
Total Increase (Decrease) in Net Assets | 112,621 | | | | 50,793,120 | |
Net Assets ($): | |
Beginning of Period | | | 322,966,466 | | | | 272,173,346 | |
End of Period | | | 323,079,087 | | | | 322,966,466 | |
26
| | | | | | | | | | |
| | | | Year Ended November 30, |
| | | | 2018 | | 2017a | |
Capital Share Transactions (Shares): | |
Class Ab | | | | | | | | |
Shares sold | | | 1,394,363 | | | | 2,477,504 | |
Shares issued for distributions reinvested | | | 483,543 | | | | 87,281 | |
Shares redeemed | | | (1,336,283) | | | | (1,291,745) | |
Net Increase (Decrease) in Shares Outstanding | 541,623 | | | | 1,273,040 | |
Class Cb | | | | | | | | |
Shares sold | | | 135,211 | | | | 125,519 | |
Shares issued for distributions reinvested | | | 18,371 | | | | 3,112 | |
Shares redeemed | | | (629,414) | | | | (464,499) | |
Net Increase (Decrease) in Shares Outstanding | (475,832) | | | | (335,868) | |
Class I | | | | | | | | |
Shares sold | | | 686,253 | | | | 879,188 | |
Shares issued for distributions reinvested | | | 25,551 | | | | 6,934 | |
Shares redeemed | | | (408,972) | | | | (667,383) | |
Net Increase (Decrease) in Shares Outstanding | 302,832 | | | | 218,739 | |
Class J | | | | | | | | |
Shares sold | | | 13,389 | | | | 19,754 | |
Shares issued for distributions reinvested | | | 37,921 | | | | 10,268 | |
Shares redeemed | | | (115,462) | | | | (86,420) | |
Net Increase (Decrease) in Shares Outstanding | (64,152) | | | | (56,398) | |
Class Z | | | | | | | | |
Shares sold | | | 29,924 | | | | 53,722 | |
Shares issued for distributions reinvested | | | 72,765 | | | | 19,340 | |
Shares redeemed | | | (176,760) | | | | (201,175) | |
Net Increase (Decrease) in Shares Outstanding | (74,071) | | | | (128,113) | |
| | | | | | | | | | |
aDistributions to shareholders include only distributions from net investment income. Undistributed investment income—net was $2,737,575 in 2017 and is no longer presented as a result of the adoption of SEC’s Disclosure Update and Simplification Rule. | |
bDuring the period ended November 30, 2018, 63,866 Class C shares representing $1,512,815 were automatically converted for 63,650 Class A shares. | |
See notes to financial statements. | | | | | | | | |
27
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund’s financial statements.
| | | | | | | | | | | | |
| | | | | |
| | |
| | Year Ended November 30, |
Class A Shares | | 2018 | 2017 | 2016 | 2015 | 2014 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | | 23.61 | 21.42 | 21.35 | 22.86 | 21.43 |
Investment Operations: | | | | | | |
Investment income—neta | | .24 | .20 | .22 | .18 | .19 |
Net realized and unrealized
gain (loss) on investments | | .50 | 2.22 | 1.02 | .21 | 1.71 |
Total from Investment Operations | | .74 | 2.42 | 1.24 | .39 | 1.90 |
Distributions: | | | | | | |
Dividends from investment income—net | | (.20) | (.23) | (.19) | (.18) | (.19) |
Dividends from net realized
gain on investments | | (.93) | — | (.98) | (1.72) | (.28) |
Total Distributions | | (1.13) | (.23) | (1.17) | (1.90) | (.47) |
Net asset value, end of period | | 23.22 | 23.61 | 21.42 | 21.35 | 22.86 |
Total Return (%)b | | 3.24 | 11.42 | 6.25 | 1.84 | 8.99 |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | | 1.24 | 1.26 | 1.30 | 1.27 | 1.27 |
Ratio of net expenses
to average net assets | | 1.20 | 1.20 | 1.20 | 1.20 | 1.20 |
Ratio of net investment income
to average net assets | | 1.01 | .90 | 1.09 | .86 | .86 |
Portfolio Turnover Rate | | 98.95 | 97.15 | 105.77 | 114.35 | 110.18 |
Net Assets, end of period ($ x 1,000) | | 240,418 | 231,677 | 182,935 | 185,781 | 183,228 |
a Based on average shares outstanding.
b Exclusive of sales charge.
See notes to financial statements.
28
| | | | | | | | |
| | |
| | |
| | Year Ended November 30, |
Class C Shares | | 2018 | 2017 | 2016 | 2015 | 2014 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | | 23.52 | 21.34 | 21.26 | 22.77 | 21.34 |
Investment Operations: | | | | | | |
Investment income—neta | | .05 | .03 | .07 | .02 | .02 |
Net realized and unrealized
gain (loss) on investments | | .52 | 2.22 | 1.02 | .21 | 1.70 |
Total from Investment Operations | | .57 | 2.25 | 1.09 | .23 | 1.72 |
Distributions: | | | | | | |
Dividends from investment income—net | | — | (.07) | (.03) | (.02) | (.01) |
Dividends from net realized
gain on investments | | (.93) | — | (.98) | (1.72) | (.28) |
Total Distributions | | (.93) | (.07) | (1.01) | (1.74) | (.29) |
Net asset value, end of period | | 23.16 | 23.52 | 21.34 | 21.26 | 22.77 |
Total Return (%)b | | 2.43 | 10.62 | 5.46 | 1.05 | 8.16 |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | | 1.99 | 2.02 | 2.05 | 2.02 | 2.01 |
Ratio of net expenses
to average net assets | | 1.95 | 1.95 | 1.95 | 1.95 | 1.95 |
Ratio of net investment income
to average net assets | | .22 | .14 | .34 | .11 | .11 |
Portfolio Turnover Rate | | 98.95 | 97.15 | 105.77 | 114.35 | 110.18 |
Net Assets, end of period ($ x 1,000) | | 11,805 | 23,183 | 28,203 | 32,403 | 33,966 |
a Based on average shares outstanding.
b Exclusive of sales charge.
See notes to financial statements.
29
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | | | | |
| | | | | |
| | |
| | Year Ended November 30, |
Class I Shares | | 2018 | 2017 | 2016 | 2015 | 2014 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | | 23.68 | 21.49 | 21.41 | 22.93 | 21.49 |
Investment Operations: | | | | | | |
Investment income—neta | | .27 | .26 | .28 | .24 | .24 |
Net realized and unrealized
gain (loss) on investments | | .54 | 2.21 | 1.02 | .20 | 1.72 |
Total from Investment Operations | | .81 | 2.47 | 1.30 | .44 | 1.96 |
Distributions: | | | | | | |
Dividends from investment income—net | | (.26) | (.28) | (.24) | (.24) | (.24) |
Dividends from net realized
gain on investments | | (.93) | — | (.98) | (1.72) | (.28) |
Total Distributions | | (1.19) | (.28) | (1.22) | (1.96) | (.52) |
Net asset value, end of period | | 23.30 | 23.68 | 21.49 | 21.41 | 22.93 |
Total Return (%) | | 3.51 | 11.64 | 6.57 | 2.07 | 9.27 |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | | 1.00 | 1.06 | 1.06 | 1.02 | 1.01 |
Ratio of net expenses
to average net assets | | .95 | .95 | .95 | .95 | .95 |
Ratio of net investment income
to average net assets | | 1.22 | 1.14 | 1.39 | 1.11 | 1.09 |
Portfolio Turnover Rate | | 98.95 | 97.15 | 105.77 | 114.35 | 110.18 |
Net Assets, end of period ($ x 1,000) | | 21,301 | 14,476 | 8,433 | 4,860 | 4,099 |
a Based on average shares outstanding.
See notes to financial statements.
30
| | | | | | | | | | |
| | | | | |
| | |
| | Year Ended November 30, |
Class J Shares | | 2018 | 2017 | 2016 | 2015 | 2014 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | | 23.68 | 21.49 | 21.41 | 22.93 | 21.49 |
Investment Operations: | | | | | | |
Investment income—neta | | .29 | .26 | .27 | .24 | .24 |
Net realized and unrealized
gain (loss) on investments | | .51 | 2.21 | 1.03 | .20 | 1.71 |
Total from Investment Operations | | .80 | 2.47 | 1.30 | .44 | 1.95 |
Distributions: | | | | | | |
Dividends from investment income—net | | (.25) | (.28) | (.24) | (.24) | (.23) |
Dividends from net realized
gain on investments | | (.93) | — | (.98) | (1.72) | (.28) |
Total Distributions | | (1.18) | (.28) | (1.22) | (1.96) | (.51) |
Net asset value, end of period | | 23.30 | 23.68 | 21.49 | 21.41 | 22.93 |
Total Return (%) | | 3.46 | 11.69 | 6.56 | 2.07 | 9.24 |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | | .99 | 1.00 | 1.04 | 1.00 | .99 |
Ratio of net expenses
to average net assets | | .95 | .95 | .95 | .95 | .95 |
Ratio of net investment income
to average net assets | | 1.25 | 1.15 | 1.34 | 1.11 | 1.11 |
Portfolio Turnover Rate | | 98.95 | 97.15 | 105.77 | 114.35 | 110.18 |
Net Assets, end of period ($ x 1,000) | | 16,415 | 18,203 | 17,725 | 17,879 | 20,184 |
a Based on average shares outstanding.
See notes to financial statements.
31
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | | |
| |
| |
| | Year Ended November 30, |
Class Y Shares | | | | 2018 | 2017 | 2016a |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | | | | 23.69 | 21.47 | 20.89 |
Investment Operations: | | | | | | |
Investment income—netb | | | | . 29 | .26 | .04 |
Net realized and unrealized
gain (loss) on investments | | | | .52 | 2.24 | .54 |
Total from Investment Operations | | | | .81 | 2.50 | .58 |
Distributions: | | | | | | |
Dividends from investment income—net | | | | (.26) | (.28) | — |
Dividends from net realized
gain on investments | | | | (.93) | — | — |
Total Distributions | | | | (1.19) | (.28) | — |
Net asset value, end of period | | | | 23.31 | 23.69 | 21.47 |
Total Return (%) | | | | 3.52 | 11.74 | 2.83c |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | | | | 1.09 | .93 | 1.08d |
Ratio of net expenses
to average net assets | | | | .95 | .93 | .95d |
Ratio of net investment income
to average net assets | | | | 1.26 | 1.17 | 1.00d |
Portfolio Turnover Rate | | | | 98.95 | 97.15 | 105.77 |
Net Assets, end of period ($ x 1,000) | | | | 11 | 11 | 10 |
a From September 30, 2016 (commencement of initial offering) to November 30, 2016.
b Based on average shares outstanding.
c Not annualized.
d Annualized.
See notes to financial statements.
32
| | | | | | | | | | | |
| | | | | |
| | |
| | Year Ended November 30, |
Class Z Shares | | 2018 | 2017 | 2016 | 2015 | 2014 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | | 23.54 | 21.36 | 21.29 | 22.81 | 21.37 |
Investment Operations: | | | | | | |
Investment income—neta | | .28 | .24 | .26 | .22 | .23 |
Net realized and unrealized
gain (loss) on investments | | .50 | 2.21 | 1.01 | .21 | 1.70 |
Total from Investment Operations | | .78 | 2.45 | 1.27 | .43 | 1.93 |
Distributions: | | | | | | |
Dividends from investment income—net | | (.23) | (.27) | (.22) | (.23) | (.21) |
Dividends from net realized
gain on investments | | (.93) | — | (.98) | (1.72) | (.28) |
Total Distributions | | (1.16) | (.27) | (1.20) | (1.95) | (.49) |
Net asset value, end of period | | 23.16 | 23.54 | 21.36 | 21.29 | 22.81 |
Total Return (%) | | 3.44 | 11.59 | 6.51 | 1.96 | 9.18 |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assets | | 1.07 | 1.10 | 1.13 | 1.12 | 1.10 |
Ratio of net expenses
to average net assets | | 1.01 | 1.02 | 1.02 | 1.03 | 1.01 |
Ratio of net investment income
to average net assets | | 1.19 | 1.08 | 1.27 | 1.03 | 1.05 |
Portfolio Turnover Rate | | 98.95 | 97.15 | 105.77 | 114.35 | 110.18 |
Net Assets, end of period ($ x 1,000) | | 33,129 | 35,416 | 34,868 | 37,073 | 39,991 |
a Based on average shares outstanding.
See notes to financial statements.
33
NOTES TO FINANCIAL STATEMENTS
NOTE 1—Significant Accounting Policies:
Dreyfus Balanced Opportunity Fund (the “fund”) is the sole series of Dreyfus Manager Funds II (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified open-end management investment company. The fund’s investment objectiveis to seek a high total return through a combination of capital appreciation and current income.The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.
MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares. The fund is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Class A, Class C, Class I, Class J, Class T, Class Y and Class Z. Class A and Class T shares generally are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class C shares redeemed within one year of purchase. Class C shares automatically convert to Class A shares ten years after the date of purchase, without the imposition of a sales charge. Class I, Class J and Class Z shares are sold at net asset value per share generally to certain shareholders of the fund. Class I and Class Y shares are sold generally to institutional investors and Class J and Class Z shares generally are not available for new accounts. As of the date of this report, the fund did not offer Class T shares for purchase. 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 November 30, 2018, MBC Investments Corp., an indirect subsidiary of BNY Mellon, held all of the outstanding Class Y shares of the fund.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification is 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 fund’s financial statements are prepared in accordance with
34
GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The Companyenters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.
(a) Portfolio valuation: 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 the 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 fund’s 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.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:
Investments in debt 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 Company’s Board of Trustees (the “Board”). Investments for which quoted bid prices are
35
NOTES TO FINANCIAL STATEMENTS(continued)
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 as determined by the Service, based on methods which include consideration of the following: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. These securities are generally categorized within Level 2 of the fair value hierarchy.
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. For open short positions, asked prices are 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 value. All of the preceding securities are generally categorized within Level 1 of the fair value hierarchy.
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. These securities are generally categorized within Level 2 of the fair value hierarchy.
The Service is engaged under the general supervision of the 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 American Depository Receipts and futures. Utilizing these techniques may result in transfers between Level 1 and Level 2 of the fair value hierarchy.
When market quotations or official closing prices are not readily available, or are determined not to accurately reflect fair value, such as when the value of a 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 fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which
36
the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.
For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.
Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange.
The following is a summary of the inputs used as of November 30, 2018in valuing the fund’s investments:
| | | | | | |
| | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total |
Assets ($) |
Investments in Securities: |
Asset-Backed | — | 5,117,651 | — | 5,117,651 |
Commercial Mortgage-Backed | — | 1,333,155 | — | 1,333,155 |
Corporate Bonds† | — | 21,396,251 | — | 21,396,251 |
Equity Securities―
Common Stocks† | 208,810,485 | — | — | 208,810,485 |
Foreign Government | — | 1,415,715 | — | 1,415,715 |
Investment Companies | 25,776,338 | — | — | 25,776,338 |
Municipal Bonds† | — | 1,017,537 | — | 1,017,537 |
U.S. Government Agencies/Mortgage-Backed | — | 22,583,032 | — | 22,583,032 |
U.S. Treasury | — | 47,231,538 | — | 47,231,538 |
† See Statement of Investments for additional detailed categorizations.
At November 30, 2018, there were no transfers between levels of the fair value hierarchy. It is the fund’s policy to recognize transfers between levels at the end of the reporting period.
(b) Foreign currency transactions: The fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized on securities transactions
37
NOTES TO FINANCIAL STATEMENTS(continued)
between trade and settlement date, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments resulting from changes in exchange rates. Foreign currency gains and losses on foreign currency transactions are also included with net realized and unrealized gain or loss on investments.
(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. 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.
Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by Dreyfus, or U.S. Government and Agency securities. The fund is entitled to receive all dividends, interest and distributions on securities loaned, in addition to income earned as a result of the lending transaction. Should a borrower fail to return the securities in a timely manner, The Bank of New York Mellon is required to replace the securities for the benefit of the fund or credit the fund with the market value of the unreturned securities and is subrogated to the fund’s rights against the borrower and the collateral. Additionally, the contractual maturity of security lending transactions are on an overnight and continuous basis. During the period ended November 30, 2018, The Bank of New York Mellon earned $2,871 from lending portfolio securities, pursuant to the securities lending agreement.
(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are considered “affiliated” under the Act.
(e) Dividends and distributions to shareholders: Dividends and distributions are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make
38
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, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
(f) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.
As of and during the period ended November 30, 2018, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended November 30, 2018, the fund did not incur any interest or penalties.
Each tax year in the four-year period ended November 30, 2018 remains subject to examination by the Internal Revenue Service and state taxing authorities.
At November 30, 2018, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $6,585,161, undistributed capital gains $19,872,761 and unrealized appreciation $24,126,814.
The tax character of distributions paid to shareholders during the fiscal periods ended November 30, 2018 and November 30, 2017 were as follows: ordinary income $4,984,112 and $2,913,317, and long-term capital gains $10,501,241 and $0, respectively.
(g) New Accounting Pronouncements: In March 2017, the FASB issued Accounting Standards Update 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization On Purchased Callable Debt Securities (“ASU 2017-08”). The update shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. ASU 2017-08 will be effective for annual periods beginning after December 15, 2018.
Also in August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The update provides guidance that eliminates, adds and
39
NOTES TO FINANCIAL STATEMENTS(continued)
modifies certain disclosure requirements for fair value measurements. ASU 2018-13 will be effective for annual periods beginning after December 15, 2019. Management is currently assessing the potential impact of these changes to future financial statements.
NOTE 2—Bank Lines of Credit:
The fund participates with other Dreyfus-managed long-term open-end funds in an $1.030 billion unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by The Bank of New York Mellon (the “BNYM Credit Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $830 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is in amount equal to $200 million and is available only to the Dreyfus Floating Rate Income Fund, a series of The Dreyfus/Laurel Funds, Inc. Prior to October 3, 2018, the unsecured credit facility with Citibank, N.A. was $830 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended November 30, 2018, the fund did not borrow under the Facilities.
NOTE 3—Management Fee and Other Transactions with Affiliates:
(a)Pursuant to a management agreement with Dreyfus, the management fee is computed at the annual rate of .80% of the value of the fund’s average daily net assets and is payable monthly. Dreyfus has contractually agreed, from December 1, 2017 through March 29, 2019, to waive receipt of its fees and/or assume the direct expenses of the fund, so that the direct expenses of none of the classes (excluding Rule 12b-1 Distribution Plan fees, Shareholder Services Plan fees, taxes, interest expense, brokerage commissions, commitment fees on borrowings and extraordinary expenses) exceed .95% of the value of the fund’s average daily net assets. On or after March 29, 2019, Dreyfus may terminate this expense limitation at any time. The reduction in expenses, pursuant to the undertaking, amounted to $127,261 during the period ended November 30, 2018.
During the period ended November 30, 2018, the Distributor retained $10,097 from commissions earned on sales of the fund’s Class A shares and $742 from CDSC fees on redemptions of the fund’s Class C shares.
40
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of its average daily net assets. During the period ended November 30, 2018, Class C shares were charged $87,660 pursuant to the Distribution Plan.
(c)Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an annual rate of .25% of the value of their average daily net assets for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended November 30, 2018, Class A and Class C shares were charged $613,455and $29,220, respectively, pursuant to the Shareholder Services Plan.
Under the Shareholder Services Plan, Class Z shares reimburse the Distributor at an amount not to exceed an annual rate of .25% of the value of Class Z shares’ average daily net assets for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding Class Z shares and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended November 30, 2018,Class Z shares were charged $21,178 pursuant to the Shareholder Services Plan.
The fund has arrangements with the transfer agent and the custodian whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency and custody fees. For financial reporting purposes, the fund includes net earnings credits, if any, as an expense offset in the Statement of Operations.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing transfer agency and cash management services for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended November 30, 2018, the fund was charged $105,709 for transfer agency services. These fees are included in Shareholder servicing costs in the Statement of Operations.
41
NOTES TO FINANCIAL STATEMENTS(continued)
The fund compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended November 30, 2018, the fund was charged $16,455 pursuant to the custody agreement. These fees were partially offset by earnings credits of $240.
During the period ended November 30, 2018, the fund was charged $15,336 for services performed by the Chief Compliance Officer and his staff. These fees are included in Miscellaneous in the Statement of Operations.
The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $209,346, Distribution Plan fees $7,133, Shareholder Services Plan fees $42,398, custodian fees $9,595, Chief Compliance Officer fees $6,289 and transfer agency fees $17,571, which are offset against an expense reimbursement currently in effect in the amount of $25,128.
(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 4—Securities Transactions:
The aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities during the period ended November 30, 2018, amounted to $307,814,247 and $288,497,000, respectively.
At November 30, 2018, the cost of investments for federal income tax purposes was $310,554,859; accordingly, accumulated net unrealized appreciation on investments was $24,126,843, consisting of $35,292,977 gross unrealized appreciation and $11,166,134 gross unrealized depreciation.
42
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of Dreyfus Balanced Opportunity Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Dreyfus Balanced Opportunity Fund (the “Fund”) (sole fund constituting Dreyfus Manager Funds II), including the statements of investments and investments in affiliated issuers, as of November 30, 2018, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (sole fund constituting Dreyfus Manager Funds II) at November 30, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Dreyfus investment companies since at least 1957, but we are unable to determine the specific year.
New York, New York
January 28, 2019
43
IMPORTANT TAX INFORMATION(Unaudited)
For federal tax purposes the fund hereby reports 72.58% of the ordinary dividends paid during the fiscal year ended November 30, 2018 as qualifying for the corporate dividends received deduction. Also, certain dividends paid by the fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year, $3,531,910 represents the maximum amount that may be considered qualified dividend income. Shareholders will receive notification in early 2019 of the percentage applicable to the preparation of their 2018 income tax returns. Also, the fund hereby reports $.1640 per share as a short-term capital gain distribution and $.7670 per share as a long-term capital gain distribution paid on December 29, 2017.
44
BOARD MEMBERS INFORMATION(Unaudited)
INDEPENDENT BOARD MEMBERS
Joseph S. DiMartino (75)
Chairman of the Board (2003)
Principal Occupation During Past 5 Years:
· Corporate Director and Trustee (1995-present)
Other Public Company Board Memberships During Past 5 Years:
· CBIZ (formerly, Century Business Services, Inc.), a provider of outsourcing functions for small and medium size companies, Director (1997-present)
No. of Portfolios for which Board Member Serves:123
———————
Peggy C. Davis (75)
Board Member (2006)
Principal Occupation During Past 5 Years:
· Shad Professor of Law, New York University School of Law (1983-present)
No. of Portfolios for which Board Member Serves: 45
———————
David P. Feldman (79)
Board Member (2003)
Principal Occupation During Past 5 Years:
· Corporate Director and Trustee (1985-present)
Other Public Company Board Memberships During Past 5 Years:
· BBH Mutual Funds Group (5 registered mutual funds), Director (1992-2014)
No. of Portfolios for which Board Member Serves:31
———————
Joan Gulley (71)
Board Member (2017)
Principal Occupation During Past 5 Years:
· PNC Financial Services Group, Inc.(1993-2014), Executive Vice President and Chief Human Resources Officer and Executive Committee Member (2008-2014)
No. of Portfolios for which Board Member Serves:52
———————
45
BOARD MEMBERS INFORMATION (Unaudited) (continued)
INDEPENDENT BOARD MEMBERS (continued)
Ehud Houminer (78)
Board Member (2006)
Principal Occupation During Past 5 Years:
· Board of Overseers at the Columbia Business School, Columbia University (1992-present)
· Trustee, Ben Gurion University
No. of Portfolios for which Board Member Serves: 52
———————
Lynn Martin (78)
Board Member (2012)
Principal Occupation During Past 5 Years:
· President of The Martin Hall Group LLC, a human resources consulting firm (2005-2012)
No. of Portfolios for which Board Member Serves:31
———————
Robin A. Melvin (55)
Board Member (2012)
Principal Occupation During Past 5 Years:
· Co-chairman, Illinois Mentoring Partnership, non-profit organization dedicated to increasing the quantity and quality of mentoring services in Illinois; (2014-present; board member since 2013)
No. of Portfolios for which Board Member Serves:99
———————
Dr. Martin Peretz (79)
Board Member (2006)
Principal Occupation During Past 5 Years:
· Editor-in-Chief Emeritus of The New Republic Magazine (2011-2012) (previously,
Editor-in-Chief, 1974-2011)
· Lecturer at Harvard University (1968-2010)
No. of Portfolios for which Board Member Serves:31
———————
Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80. The address of the Board Members and Officers is c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board Member 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-DREYFUS.
James F. Henry, Emeritus Board Member
Philip L. Toia, Emeritus Board Member
46
OFFICERS OF THE FUND(Unaudited)
BRADLEY J. SKAPYAK, President since January 2010.
Chief Operating Officer and a director of the Manager since June 2009, Chairman of Dreyfus Transfer, Inc., an affiliate of the Manager and the transfer agent of the funds, since May 2011 and Chief Executive Officer of MBSC Securities Corporation since August 2016. He is an officer of 62 investment companies (comprised of 123 portfolios) managed by the Manager. He is 60 years old and has been an employee of the Manager since February 1988.
BENNETT A. MACDOUGALL, Chief Legal Officer since October 2015.
Chief Legal Officer of the Manager and Associate General Counsel and Managing Director of BNY Mellon since June 2015; from June 2005 to June 2015, he served in various capacities with Deutsche Bank – Asset & Wealth Management Division, including as Director and Associate General Counsel, and Chief Legal Officer of Deutsche Investment Management Americas Inc. from June 2012 to May 2015. He is an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since June 2015.
JAMES BITETTO, Vice President since August 2005 and Secretary since February 2018.
Managing Counsel of BNY Mellon and Secretary of the Manager, and an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since December 1996.
SONALEE CROSS, Vice President and Assistant Secretary since March 2018.
Counsel of BNY Mellon since October 2016; Associate at Proskauer Rose LLP from April 2016 to September 2016; Attorney at EnTrust Capital from August 2015 to February 2016; Associate at Sidley Austin LLP from September 2013 until August 2015. She is an officer of 63 investment companies (comprised of 148 portfolios) managed by Dreyfus. She is 31 years old and has been an employee of the Manager since October 2016.
MAUREEN E. KANE, Vice President and Assistant Secretary since April 2015.
Managing Counsel of BNY Mellon since July 2014; from October 2004 until July 2014, General Counsel, and from May 2009 until July 2014, Chief Compliance Officer of Century Capital Management. She is an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. She is 56 years old and has been an employee of the Manager since July 2014.
SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.
Managing Counsel of BNY Mellon since December 2017, from March 2013 to December 2017, Senior Counsel of BNY Mellon. She is an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since March 2013.
JEFF PRUSNOFSKY, Vice President and Assistant Secretary since September 2003.
Senior Managing Counsel of BNY Mellon, and an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since October 1990.
NATALYA ZELENSKY, Vice President and Assistant Secretary since March 2017.
Counsel of BNY Mellon since May 2016; Attorney at Wildermuth Endowment Strategy Fund/Wildermuth Advisory, LLC from November 2015 until May 2016; Assistant General Counsel at RCS Advisory Services from July 2014 until November 2015; Associate at Sutherland, Asbill & Brennan from January 2013 until January 2014. She is an officer of 63 investment companies (comprised of 148 portfolios) managed by Dreyfus. She is 33 years old and has been an employee of the Manager since May 2016.
JAMES WINDELS, Treasurer since September 2003.
Director – Mutual Fund Accounting of the Manager, and an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. He is 60 years old and has been an employee of the Manager since April 1985.
47
OFFICERS OF THE FUND (Unaudited)(continued)
GAVIN C. REILLY, Assistant Treasurer since December 2005.
Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since April 1991.
ROBERT S. ROBOL, Assistant Treasurer since August 2005.
Senior Accounting Manager – Dreyfus Financial Reporting of the Manager, and an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. He is 54 years old and has been an employee of the Manager since October 1988.
ROBERT SALVIOLO, Assistant Treasurer since July 2007.
Senior Accounting Manager – Equity Funds of the Manager, and an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since June 1989.
ROBERT SVAGNA, Assistant Treasurer since September 2002.
Senior Accounting Manager – Fixed Income and Equity Funds of the Manager, and an officer of 63 investment companies (comprised of 148 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since November 1990.
JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.
Chief Compliance Officer of the Manager, the Dreyfus Family of Funds and BNY Mellon Funds Trust (63 investment companies, comprised of 148 portfolios). He is 61 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.
CARIDAD M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016.
Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust since January 2016; from May 2015 to December 2015, Interim Anti-Money Laundering Compliance Officer of the Dreyfus Family of Funds and BNY Mellon Funds Trust and the Distributor; from January 2012 to May 2015, AML Surveillance Officer of the Distributor and from 2007 to December 2011, Financial Processing Manager of the Distributor. She is an officer of 57 investment companies (comprised of 142 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Distributor since 1997.
48
NOTES
49
Dreyfus Balanced Opportunity Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
200 Park Avenue
New York, NY 10166
Distributor
MBSC Securities Corporation
200 Park Avenue
New York, NY 10166
| | |
Ticker Symbols: | Class A: DBOAX Class C: DBOCX Class I: DBORX
Class J: THPBX Class Y: DBOYX Class Z: DBOZX |
Telephone Call your financial representative or 1-800-DREYFUS
Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
E-mailSend your request toinfo@dreyfus.com
InternetInformation can be viewed online or downloaded atwww.dreyfus.com
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website atwww.sec.gov.
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 atwww.dreyfus.com and on the SEC’s website atwww.sec.gov and without charge, upon request, by calling 1-800-DREYFUS.
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© 2019 MBSC Securities Corporation
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