Dreyfus to Merge Two Funds

By Staff Writer

June 27, 2002 at 08:00 PM

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June 24, 2002 — Dreyfus Corp. plans to merge a stock and a bond fund of existence in an effort to eliminate duplicate products.

In the reorganization, Dreyfus Premier Small Company Stock Fund/A (DPSAX) would be combined with MPAM Mid Cap Stock Fund/Inv (MIMSX), and Dreyfus Premier Ltd Term Municipal Fund/A (PLTMX) would be absorbed by MPAM Natl Intermediate Muni Bond Fund/MPAM (MPNIX). The MPAM funds are run by Dreyfus' Mpam Advisers division.

The mergers, which are subject to shareholder approval, would result in larger funds that could be managed more efficiently, Dreyfus said in regulatory filings.

Dreyfus Premier Limited Term Municipal was up 3.4% this year through May, while the average long-term national municipal bond fund returned 3.1%. The Dreyfus fund posted a total return of 4.7% last year, compared to 3.9% for its peers.

Dreyfus Premier Small Company, classified as a mid-cap growth fund by Standard & Poor's, returned 0.8% through May, and lost 2.6% last year. The fund's peers lost 7.2% and 19.8%, respectively, during those periods.

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