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Bonds Without Borders: The Case for Going Global Dreyfus/Standish Global Fixed Income Fund CLASS A DHGAX | CLASS C DHGCX | CLASS I SDGIX DREYFUS/STANDISH GLOBAL FIXED INCOME FUND, BONDS WITHOUT BORDERS: THE CASE FOR GOING GLOBAL 1 A long-held bias toward domestic bonds must naturally give way to a new, irreversible reality: The bond market, in our opinion, is at a turning point, and we believe a U.S.-based, traditional, “one-size-fits-all” approach to fixed income investing isn’t likely to provide the benefits that many investors have come to expect. Though American fixed income markets remain low-yielding and are likely to face a rising rate environment, that may not be true everywhere. Borderless Opportunity Outside the U.S., we believe there is plenty of investment opportunity and an array of interest-rate exposures. Investors need to be aware that sidestepping global bond exposure may be the equivalent of turning a blind eye to a growing majority of new bond issues out there today. The fact is, over 60% of bonds are issued outside the U.S. (compared with 46% of equities), and the global bond market is even larger than the U.S. equity market. Over 60% of Bonds Are Issued Outside the U.S. More bonds than stocks are issued beyond our borders U.S. Market Value Non-U.S. Market Value 80% 70% 60.93% 60% 53.80% 50% 40% 46.20% 39.07% 30% 20% 10% 0% Global Bonds Multiverse Index $47.84 trillion With many investors still significantly exposed to the fate of the U.S. economy, taking a globalized position may be an important part of a broader diversification strategy. Consider this: Most of your homes are in the U.S., your wages are paid in U.S. dollars, and your overall investment portfolios are typically skewed heavily Global Stocks MSCI ACW Index $37.62 trillion toward U.S. stocks and bonds. With most of today’s bond investments coming from outside the U.S., we believe the advantage may well go to funds with a global reach simply because they’ll be in a position to tap more diversified sources of investment opportunity and rate exposures. Sources: Bloomberg Index Services Limited (“BISL”) as of 12/30/16 and MSCI All Country World Index (USD) as of 12/31/16. The comparison above is a representative universe as defined by the following indices. The Multiverse Index provides a broad-based measure of the global fixed income bond market. The index represents the union of the Global Aggregate Index and the Global High-Yield Index and captures investment-grade and high-yield securities in all eligible currencies. The MSCI ACW Index captures large- and mid-cap representation across 23 developed market (“DM”) and 23 emerging market (“EM”) countries. With 2,486 constituents, the index covers approximately 85% of the global investable equity opportunity set. An investor cannot invest directly in any index. DREYFUS/STANDISH GLOBAL FIXED INCOME FUND, BONDS WITHOUT BORDERS: THE CASE FOR GOING GLOBAL 2 Active Risk Management In an increasingly volatile and complex economic and geopolitical setting, we believe a core fixed income alternative that combines a global opportunity set with an active currency hedging strategy may help reduce correlations and mitigate portfolio volatility over time. Actively hedging most foreign currency exposure may help protect the U.S. dollar value of the fund’s investments from fluctuations. Hedged Global Bonds Have Historically Provided a ‘Smoother Ride’ Active currency hedging may mitigate portfolio volatility Bloomberg Barclays Global Aggregate Index x USD (U.S. $ Hedged) Bloomberg Barclays Global Aggregate Index x USD (Unhedged) U.S. Dollar Performance (DXY Index) — RIGHT AXIS LEFT AXIS $130 $500 Unhedged index outperformed U.S. $ hedged index by 85% $450 $400 PORTFOLIO VALUE $350 Unhedged index outperformed U.S. $ hedged index by 52% during weak dollar environment $125 $120 $115 $110 $105 $300 $100 $250 $95 $200 $90 $85 $150 U.S. $ hedged index outperformed unhedged index by 75% during strong dollar environment $100 $50 $80 $75 U.S. $ hedged index outperformed unhedged by 37% $70 $65 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 $0 Source: FactSet, January 1990 – December 2016. This example assumes a $100 investment in the Bloomberg Barclays Global Aggregate Index on 12/31/89 to 12/31/16. The Bloomberg Barclays Global Aggregate Index is a measure of global investment-grade debt from 24 local currency markets. The hedged index reflects index results converted to USD. The U.S. Dollar Index (USDX, DXY) is a measure of the value of the U.S. dollar relative to a basket of foreign currencies from its most significant trading partners. This example is for illustrative purposes only. Past performance is no guarantee of future results. An investor cannot invest directly in any index. DREYFUS/STANDISH GLOBAL FIXED INCOME FUND, BONDS WITHOUT BORDERS: THE CASE FOR GOING GLOBAL 3 Active Risk Management CONTINUED Wide gyrations of key indicators in different countries may have been due to the fact that economic and monetary cycles, inflation rates, debt-to-GDP ratios, interest rates and currency performance have varied significantly. This sounds daunting, but we believe it’s actually an opportunity for seasoned portfolio managers to potentially mitigate risk. Since the fund’s inception, it has exhibited low correlation to both U.S. interest rates and several major domestic and international indices. Historically Low Correlation With U.S. Interest Rates Plus the fund outperformed the Bloomberg Barclays U.S. Aggregate Bond Index in 12 of the past 15 quarters when rates rose Dreyfus/Standish Global Fixed Income Fund (Class I) Bloomberg Barclays U.S. Aggregate Bond Index 6% 5.50% In the last seven years, U.S. interest rates rose 15 times over a quarter. The fund had positive returns in 10 of those 15 quarters and outperformed the Bloomberg Barclays U.S. Aggregate Bond Index in 12 quarters. 5% QUARTERLY TOTAL RETURN 4% 3% 2.19% 2% 1.88% 1.78% 1.85% 1.39% 1% 0.41% 0.12% 0.63% 0.42% 0.20% 0.84% 0.73% 0.57% 0.30% 0.21% 0% 0.46% 0.24% -0.12% -0.07% -0.14% -0.57% -1% -1.37%-1.30% -1.68% -2% -1.88% -2.31%-2.32% -3% -2.93% Q1 2009 Q2 2009 Q4 2009 Q4 2010 Q1 2011 Q1 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q2 2015 -2.98% Q4 2015 Q3 2016 Q4 2016 Source: Standish. Interest-rate changes refer to the U.S. 10-Year Treasury rate. Past performance is no guarantee of future results. Portfolio composition is as of 12/31/16 and subject to change at any time. The Bloomberg Barclays U.S. Aggregate Bond Index is an index composed essentially of U.S. bonds, whereas the Bloomberg Barclays Global Aggregate Index is an index composed mostly of non-U.S. bonds. An investor cannot invest directly in any index. DREYFUS/STANDISH GLOBAL FIXED INCOME FUND, BONDS WITHOUT BORDERS: THE CASE FOR GOING GLOBAL 4 Active Risk Management CONTINUED Historically Low Correlation With Major Indices Select domestic and international indices from January 1, 2007 – December 31, 2016 1.00 1.0 0.9 0.79 CORRELATION 0.8 0.7 0.6 0.5 0.44 0.4 0.3 0.2 0.18 0.24 0.29 0.29 MSCI Emerging Markets Index MSCI EAFE Index 0.47 0.1 0.0 S&P 500 Index MSCI World Index BofA ML U.S. HY Master II Constrained (USD Unhedged) Index J.P. Morgan GBI-EM Global Diversified Composite Index Bloomberg Barclays U.S. Aggregate Bond Index Dreyfus/Standish Global Fixed Income Fund (Class I) Source: Morningstar. Correlation measures the degree to which the performance of a given asset class moves in relation to another, on a scale of -1 to 1. Negative 1 indicates a perfectly inverse relationship, 0 indicates no relationship, and 1 indicates a perfectly positive relationship. The data shown represent past performance, which is no guarantee of future results. Along with the potential benefits of low correlations, investors may expect a bond fund to pursue income with moderate overall volatility. To these ends, the fund’s managers selectively build the portfolio bond by bond, using derivatives primarily for hedging and risk management, without relying on them for significant sources of alpha. Another tool in pursuit of income comes in the form of potentially mitigating risks, including liquidity risk. For this, we believe a bond fund’s size matters, absolutely, and smaller funds have the advantage. For extremely large bond funds to access opportunities in smaller, more lightly traded sectors of the fixed income markets, they must assume substantial ownership positions — including all attendant risks. These positions can prove difficult to unwind quickly, especially in a selloff. We believe a right-sized fund can invest with high conviction in smaller bond markets, where U.S. investors are not yet active. Unlike mega-sized funds, smaller funds can take positions in countries that may be undervalued without owning the entire market. Index definitions: Standard & Poor’s 500 (S&P 500) Composite Stock Price Index is a widely accepted, unmanaged index of U.S. stock market performance. Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index is a free float-adjusted market capitalizationweighted index that is designed to measure equity performance in developed markets excluding the U.S. and Canada. The index consists of select designated MSCI national developed market indices. Morgan Stanley Capital International World Index is designed to measure global equity performance of developed markets. The index includes select designated MSCI national developed market indices. Morgan Stanley Capital International Emerging Markets Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity performance in global emerging markets. The index consists of select designated MSCI emerging market national indices. MSCI Indices reflect investable opportunities for global investors by taking into account local market restrictions on share ownership by foreigners. Bloomberg Barclays U.S. Aggregate Bond Index (U.S. Agg) is a widely accepted, unmanaged total return index of U.S. dollar-denominated corporate, government and government-agency debt instruments, mortgage-backed securities, and asset-backed securities with an average maturity of 1–10 years. J.P. Morgan GBI-EM Global Diversified Composite Index tracks regularly traded, liquid, fixed-rate, local currency debt issued by emerging market governments. BofA Merrill Lynch U.S. High Yield Master II Constrained (USD Unhedged) Index is an unmanaged performance benchmark composed of U.S. dollardenominated domestic and Yankee bonds rated below investment grade with at least $100 million par amount outstanding and at least one year remaining to maturity. Bonds are capitalization-weighted. Total allocations to an issuer are capped at 2%. Currency exposure is hedged to the U.S. dollar. An investor cannot invest directly in any index. DREYFUS/STANDISH GLOBAL FIXED INCOME FUND, BONDS WITHOUT BORDERS: THE CASE FOR GOING GLOBAL 5 The Proof Is in the Results Global hedged bonds have historically demonstrated higher returns alongside lower risk than broad, U.S.-only benchmarks. One reason is that in a hedged portfolio, currency volatility may be reduced or eliminated by the use of derivative contracts that seek to negate the effects of currency fluctuations. The fund seeks to benefit from managers who are able to employ an appropriate level of currency hedging versus the dollar, and can also pivot the fund’s foreign currency exposure as market conditions dictate. Global Hedged Bonds Have Historically Bested U.S.-Only Benchmarks With Lower Risk Historical risk/reward comparison 15 years ended 12/31/16 10% 15-YEAR ANNUAL RETURN 9% EMERGING MARKETS BONDS HEDGED 8% 7% BLOOMBERG BARCLAYS U.S. AGGREGATE 6% 5% 4% I.G. CREDIT FOREIGN BONDS GLOBAL BONDS HEDGED 3% HIGH YIELD U.S. TREASURY 2% 1% 0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 15-YEAR STANDARD DEVIATION Source: Morningstar as of 12/31/16. Past performance is no guarantee of future results. Please see the back cover for a description of these indices. An investor cannot invest directly in any index. Average Annual Total Returns 2000 to 2016 15.48% 16% ANNUAL TOTAL RETURN The complexity of today’s global bond marketplace calls for an experienced team in the decisionmaking process, in our opinion. Gross of fees, the fund’s historical year-by-year performance speaks for itself. 12% 9.79% 9.55% 8% 6.94% 6.38% 5.09% 4.98% 4.51% 4% 7.85% 7.50% 3.64% 6.02% 4.30% 3.72% 2.41% 0.11% 0% 00 01 02 03 04 05 06 07 08 09 10 11 12 13 -0.28% 14 15 16 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. Source: Dreyfus. Performance is based on Class I shares, which are available only to certain eligible investors. Other share classes may have achieved different returns. Positive calendar-year returns do not equate with no principal decline, due to the offsetting potential of reinvested dividend income. DREYFUS/STANDISH GLOBAL FIXED INCOME FUND, BONDS WITHOUT BORDERS: THE CASE FOR GOING GLOBAL 6 As the global search for yield continues, investors will increasingly rely on a seasoned lens through which to view the fixed income landscape holistically and realistically. Naturally, a prudent bond investor will seek to provide a buffer against equity market corrections and undue risk, while preserving the potential for capital growth. Likewise, we believe an agile, diversified bond mix will keep a view of opportunity unlimited by borders, and will consider derivative tools for hedging risk without relying on them for alpha. Dreyfus/Standish Global Fixed Income Fund — Class A DHGAX | Class C DHGCX | Class I SDGIX Average Annual Total Returns Period ended 3/31/171 SHARE CLASS/INCEPTION DATE 1 YEAR 3 YEARS 5 YEARS 10 YEARS Class A (NAV) 12/2/09 1.76% 2.68% 3.42% 5.35% Class A (4.50% max. load) -2.83% 1.12% 2.48% 4.86% Class I (NAV) 1/1/94 2.06% 2.97% 3.74% 5.56% Bloomberg Barclays Global Aggregate Index (Hedged) 1.09% 3.60% 3.43% 4.31% 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. Total Expense Ratios: Class A 0.81%, Class I 0.52%. Class I shares are available only to certain eligible investors. 1 he total return performance figures presented for Class A shares of the fund represent the performance of the fund’s Class I shares for periods T prior to December 2, 2009, the inception date for Class A shares, and the performance of Class A from that inception date. Performance reflects the applicable class’s sales load and distribution/servicing fees since the inception date. Had these fees and expenses been reflected for periods prior, performance would have been lower. Investors should consider, when deciding whether to purchase a particular class of shares, the investment amount, anticipated holding period and other relevant factors. DREYFUS/STANDISH GLOBAL FIXED INCOME FUND, BONDS WITHOUT BORDERS: THE CASE FOR GOING GLOBAL 7 Learn more Advisors: Call 1-877-334-6899 or visit dreyfus.com Mutual fund investors: Contact your financial advisor or visit dreyfus.com Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. To obtain a prospectus, or a summary prospectus, if available, that contains this and other information about a fund, contact your financial advisor or visit dreyfus.com. Read the prospectus carefully before investing. Bloomberg Barclays U.S. Aggregate Bond Index (Barclays U.S. Agg) is a widely accepted, unmanaged total return index of U.S. dollar-denominated corporate, government and government-agency debt instruments, mortgage-backed securities, and asset-backed securities with an average maturity of 1–10 years. Bloomberg Barclays Global Aggregate Index Excluding U.S. (Foreign Bonds) provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S. Bloomberg Barclays Global Aggregate Index Hedged (Global Bonds Hedged) provides a broad-based measure of the global investment-grade fixed-income markets. Currency exposure is hedged to the U.S. dollar. Bloomberg Barclays U.S. Treasury Index (U.S. Treasury) measures U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury. Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Bond Index (High Yield) is an issuer-constrained version of the flagship U.S. Corporate High Yield Index, which measures the USD-denominated, high-yield, fixed-rate corporate bond market. Bloomberg Barclays U.S. Aggregate Corporate Index (IG Credit) is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market. Bloomberg Barclays Emerging Markets USD Aggregate Index is a flagship hard-currency emerging market debt benchmark that includes fixed- and floating-rate U.S. dollar-denominated debt issued from sovereign, quasi-sovereign, and corporate EM issuers. An investor cannot invest directly in any index. RISKS Bonds are subject to interest-rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can cause price declines. Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries. High yield bonds involve increased credit and liquidity risk than higher-rated bonds and are considered speculative in terms of the issuer’s ability to pay interest and repay principal on a timely basis. The use of derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets. Derivatives can be highly volatile, illiquid, and difficult to value and there is the risk that changes in the value of a derivative held by the portfolio will not correlate with the underlying instruments or the portfolio’s other investments. Asset allocation and diversification cannot ensure a profit or protect against loss in declining markets. Charts are provided for illustrative purposes only and are not indicative of the past or future performance of any Dreyfus product. BNY Mellon Investment Management is one of the world’s leading investment management organizations and one of the top U.S. wealth managers, encompassing BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular investment, strategy, investment manager or account arrangement. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or investment advisor in order to determine whether an investment product or service is appropriate for a particular situation. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. The Dreyfus Corporation, Standish (the fund’s sub-adviser) and MBSC Securities Corporation are companies of BNY Mellon. © 2017 MBSC Securities Corporation, Distributor, 225 Liberty Street, 19th Fl., New York, NY 10281. MARK-2017-05-03-1612 6940BWBBRO-0317