Dreyfus
Premier NexTech
Fund
SEMIANNUAL REPORT
October 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
8 Statement of Assets and Liabilities
9 Statement of Operations
10 Statement of Changes in Net Assets
12 Financial Highlights
13 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
Dreyfus Premier
NexTech Fund
The Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this report for Dreyfus Premier NexTech Fund, covering
the period from the fund's inception date on June 26, 2000 to October 31, 2000.
Inside, you'll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's primary portfolio
manager, Mark Herskovitz.
The Standard & Poor's 500 Composite Stock Price Index, a broad measure of
large-cap stock performance, dropped approximately 1% during the reporting
period. Investor enthusiasm over technology stocks drove most major stock market
indices to new highs; however, the equity investment environment was marked by
dramatic price fluctuations. Additionally, the moderating effects of the Federal
Reserve Board's (the "Fed") interest-rate hikes during the first half of 2000
helped the Fed to achieve its goal of slowing the U.S. economy. Other factors
such as higher energy prices and a weak euro also served to slow economic
growth.
Since stocks provided returns well above their historical averages during the
second half of the 1990s, some investors may have developed unrealistic
expectations in equities. Recent volatility has reminded investors of both the
risks of investing and the importance of fundamental research and investment
selection.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620.
Thank you for investing in Dreyfus Premier NexTech Fund.
Sincerely,
Stephen E. Canter
[Canter signature logo]
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 2000
DISCUSSION OF FUND PERFORMANCE
Mark Herskovitz, Primary Portfolio Manager
HOW DID DREYFUS PREMIER NEXTECH FUND PERFORM RELATIVE TO ITS BENCHMARK?
During the period between the fund's inception on June 26, 2000 and October
31, 2000, Dreyfus Premier NexTech Fund produced a total return of -3.04% for
Class A shares, -3.28% for Class B shares, -3.28% for Class C shares and -3.04%
for Class T shares. (1) In comparison, the fund's benchmark, the Nasdaq
Composite Index, produced a total return of -15.00% from June 30, 2000 to
October 31, 2000.(2)
We generally manage the fund with a long-term perspective. We believe that the
reporting period of approximately four months since the fund's inception is too
short a time to realistically assess the fund's performance. With that said,
however, we believe the fund's outperformance of its benchmark was due to our
holdings in higher quality communications-related companies that in general
performed well despite market volatility. The fund's near-term absolute
performance we believe was due to heightened market volatility caused by a shift
in investor sentiment away from the technology sector. In addition, some
investors may have accelerated the technology sector's recent decline by selling
stocks at a loss, thereby offsetting taxable gains realized earlier in the year.
WHAT IS THE FUND'S INVESTMENT APPROACH?
The fund seeks capital appreciation. To pursue this goal, we invest primarily in
stocks of growth companies that we believe have the potential to become leading
producers or beneficiaries of technological innovation. The fund generally holds
between 30 and 40 securities in specialized technology sectors, and has no
restrictions on the size of the companies in which it can invest.
Among the specific high-tech sectors we currently evaluate for the fund are
optical communications equipment and components, wired and wireless
communications services, equipment and component suppliers, data storage devices
and networks, computer hardware and software, and semiconductors. The fund also
seeks to participate in the initial public offerings of companies in these
sectors. Some companies whose shares are purchased during an IPO will likely be
sold shortly after their purchase. In addition, we may invest up to 25% of the
fund's assets in foreign securities and up to an aggregate of 10% of its assets
in private equity securities of venture capital companies and in venture capital
funds.
When choosing investments, we look for emerging technology sectors that we
believe may outperform on a relative scale. Although we look for companies that
we believe have the potential for good earnings growth rates, some of the fund's
investments may currently be experiencing losses.
WHAT OTHER FACTORS INFLUENCED THE FUND'S PERFORMANCE?
Since the fund began operations, a shift in market sentiment adversely
influenced the performance of technology stocks, including stocks which trade on
the Nasdaq. Technology stocks drove the stock market's advance well before the
fund's inception and, as a result, some technology companies had appreciated to
lofty valuations that may not have been justified by their current business
fundamentals. After the fund's inception, market sentiment shifted dramatically
away from technology stocks after investors became concerned that the Federal
Reserve Board's efforts to slow economic growth might cause demand for new
technologies to slacken.
Despite near-term market conditions, and consistent with our long-term
perspective, we invested the fund's assets in technology businesses that we
believe have future growth potential. Approximately 90% of the fund's assets
since its inception were invested in fast-growing companies producing or
benefiting from technologies that are less than three years old. Core
investments include young technology companies such as Palm, the maker of
popular hand-held computers; JDS Uniphase, a designer and manufacturer of
advanced fiber optic products for the telecommunications and cable television
industries; and AudioCodes, ADR, a key participant in the exploding market for
Internet-based telephony services. Our investment in Kestrel Solutions, a
company that is focused on supplying equipment for the ultra-long haul optical
communications sector, was the fund's first investment in a private equity
offering.
WHAT IS THE FUND'S CURRENT STRATEGY?
We have continued to focus primarily on companies that our research indicates
may benefit from the development and commercialization of new technologies.
Accordingly, as of October 31, 2000, we have primarily emphasized companies in
the optical communications, digital data storage and wireless Internet segments
of the technology sector.
Because of the high valuations that characterize many of today's fast-growing
technology companies, we would like to again remind our shareholders that
technology stocks are likely to experience high levels of volatility, and
investors should not be surprised to see periodic and significant advances and
declines. We strive to manage these risks by focusing on fundamentally sound
companies over the long term.
November 15, 2000
(1) Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charges in
the case of Class A and Class T shares, or the applicable contingent
deferred sales charges imposed on redemptions in the case of Class B and
Class C shares. Had these charges been reflected, returns would have been
lower. Past performance is no guarantee of future results. Share price and
investment return fluctuate such that upon redemption, fund shares may be
worth more or less than their original cost.
(2) SOURCE: LIPPER INC. -- Reflects the reinvestment of gross dividends and,
where applicable, capital gain distributions. The Nasdaq Composite Index
measures the market value of all the domestic and foreign common stocks
listed on the Nasdaq stock market. Price changes in each security affect
either a rise or fall in the index, in proportion to the security's market
value. The market value -- the last sale price multiplied by total shares
outstanding -- is calculated continually throughout the day. The index
includes the securities of more than 5,300 companies representing a wide
array of industries. Total return figures for the fund's benchmark are
calculated monthly and therefore, return figures can only be provided on a
month-end basis.
The Fund
STATEMENT OF INVESTMENTS
October 31, 2000 (Unaudited)
COMMON STOCKS--68.5% Shares Value ($)
BIOTECHNOLOGY--2.9%
Human Genome Sciences 110,000 a 9,722,969
DATA STORAGE--7.1%
Brocade Communications Systems 52,000 a 11,823,500
Network Appliance 100,000 a 11,900,000
23,723,500
HARDWARE--5.6%
Palm 175,000 a 9,373,437
Research in Motion 93,000 a 9,300,000
18,673,437
INTERNET--2.2%
VeriSign 57,000 a 7,524,000
NETWORKING--10.0%
Finisar 40,000 a 1,152,500
Juniper Networks 62,000 a 12,090,000
Proxim 200,000 a 12,125,000
Sycamore Networks 127,500 a 8,064,375
33,431,875
SEMICONDUCTORS--7.7%
ARM Holdings, ADR 270,000 a 8,100,000
PMC-Sierra 45,000 a 7,627,500
Xilinx 140,000 a 10,141,250
25,868,750
SEMIEQUIPMENT--2.2%
Cree 74,000 a 7,344,500
SOFTWARE--8.4%
Ariba 75,000 a 9,478,125
Art Technology Group 60,000 a 3,765,000
BEA Systems 158,000 a 11,336,500
Nuance Communications 40,000 a 3,450,000
28,029,625
TECHNOLOGY--2.4%
Altera 200,000 a 8,187,500
TELECOMMUNICATION EQUIPMENT--15.8%
AudioCodes, ADR 190,000 a 7,516,875
CIENA 80,000 a 8,410,000
GlobeSpan 90,000 a 6,924,375
JDS Uniphase 80,800 a 6,575,100
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
TELECOMMUNICATION EQUIPMENT (CONTINUED)
Microtune 221,500 a 6,229,688
Redback Networks 75,000 a 7,982,813
SDL 35,500 a 9,203,375
52,842,226
TELECOMMUNICATION SERVICES--4.2%
ITXC 670,000 a 7,076,875
McLeodUSA, Cl. A 365,000 a 7,026,250
14,103,125
TOTAL COMMON STOCKS
(cost $220,352,493) 229,451,507
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Principal
CORPORATE BONDS--1.2% Amount ($) Value ($)
--------------------------------------------------------------------------------
Kestrel Solutions, Conv. Sub.Notes,
5.50%, 7/15/2005
(cost $4,000,000) 4,000,000 b 3,980,000
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--44.2%
--------------------------------------------------------------------------------
U.S. TREASURY BILLS:
6.04%, 11/16/2000 100,000 99,752
5.85%, 11/24/2000 10,000,000 9,961,900
6.12%, 12/7/2000 10,835,000 10,769,232
6.04%, 12/14/2000 16,169,000 16,052,098
5.97%, 12/21/2000 6,897,000 6,836,237
5.98%, 12/28/2000 17,240,000 17,071,220
6.10%, 1/4/2001 921,000 910,989
6.04%, 1/11/2001 3,212,000 3,173,167
--------------------------------------------------------------------------------
6.14%, 1/18/2001 72,169,000 71,206,987
6.15%, 1/25/2001 12,000,000 11,824,900
TOTAL SHORT-TERM INVESTMENTS
(cost $147,919,733) 147,906,482
--------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $372,272,226) 113.9% 381,337,989
LIABILITIES, LESS CASH AND RECEIVABLES (13.9%) (46,455,623)
NET ASSETS 100.0% 334,882,366
(a) Non-income producing.
(b) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be sold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
2000, this security amounted to $3,980,000 or approximately 1.2% of net
assets.
See notes to financial statements.
The Fund
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000 (Unaudited)
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Cost Value
--------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS ($):
Investments in securities--See Statement of Investments 372,272,226 381,337,989
Cash 1,172,490
Receivable for investment securities sold 7,073,215
Receivable for shares of Beneficial Interest subscribed 1,875,171
Interest receivable 57,444
Prepaid expenses and other assets 55,451
391,571,760
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 678,669
Payable for investment securities purchased 55,018,304
Payable for shares of Beneficial Interest redeemed 709,794
Accrued expenses and other liabilities 282,627
56,689,394
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NET ASSETS ($) 334,882,366
---------------------------------------------------------------------------------------
COMPOSITON OF NET ASSETS ($):
Paid-in capital 372,555,712
Accumulated investment (loss) (1,548,991)
Accumulated net realized gain (loss) on investments (45,190,118)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4(b) 9,065,763
----------------------------------------------------------------------------------------
NET ASSETS ($) 334,882,366
----------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Class B Class C Class T
Net Assets ($) 131,220,180 140,050,526 54,628,277 8,983,383
Shares Outstanding 10,822,488 11,580,486 4,517,419 740,924
----------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 12.12 12.09 12.09 12.12
See notes to financial statements.
</TABLE>
8
STATEMENT OF OPERATIONS
From June 26, 2000 (commencement of operations) to
October 31, 2000 (Unaudited)
INVESTMENT INCOME ($):
INTEREST INCOME 1,206,885
EXPENSES:
Management fee--Note 3(a) 1,567,537
Distribution fees--Note 3(b) 468,686
Shareholder servicing costs--Note 3(c) 350,373
Registration fees 116,693
Auditing fees 40,150
Custodian fees-Note 3(c) 11,727
Trustees' fees and expenses--Note 3(d) 7,812
Legal fees 6,667
Prospectus and shareholders' reports 5,133
Miscellaneous 2,098
TOTAL EXPENSES 2,576,876
INVESTMENT (LOSS) (1,369,991)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net Realized gain (loss) on investments:
Long transactions (43,464,204)
Short sale transactions (1,725,914)
NET REALIZED GAIN (LOSS) (45,190,118)
Net unrealized appreciation (depreciation) on investments 9,065,763
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (36,124,355)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (37,494,346)
See notes to financial statements.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
From June 26, 2000 (commencement of operations) to
October 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (1,369,991)
Net realized gain (loss) on investments (45,190,118)
Net unrealized appreciation (depreciation) on investments 9,065,763
NET INCREASE (DECREASE) IN NET ASSETS RESULIING FROM OPERATIONS (37,494,346)
--------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 155,940,947
Class B shares 159,290,283
Class C shares 63,297,897
Class T shares 10,203,184
Cost of shares redeemed:
Class A shares (10,318,018)
Class B shares (3,610,797)
Class C shares (2,114,376)
Class T shares (412,408)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 372,276,712
TOTAL INCREASE (DECREASE) IN NET ASSETS 334,782,366
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 100,000
END OF PERIOD 334,882,366
See notes to financial statements.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 11,559,921
Shares redeemed (739,433)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 10,820,488
--------------------------------------------------------------------------------
CLASS B
Shares sold 11,832,492
Shares redeemed (254,006)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 11,578,486
--------------------------------------------------------------------------------
CLASS C
Shares sold 4,664,074
Shares redeemed (148,655)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 4,515,419
--------------------------------------------------------------------------------
CLASS T
Shares sold 769,497
Shares redeemed (30,573)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 738,924
See notes to financial statements.
The Fund
FINANCIAL HIGHLIGHTS (Unaudited)
The following table describes the performance for each share class for the
period from June 26, 2000 (commencement of of operations to October 31, 2000.
All information (except portfolio turnover rate) reflects financial results for
a single fund share. Total return shows how much your investment in the fund
would be increased (or decreased) during each period assuming you had reinvested
all dividends and distributions. These figures have been derived from the fund's
financial statements.
<TABLE>
------------------------------------------------------------------------------------
Class A Class B Class C Class T
Shares Shares Shares Shares
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 12.50 12.50 12.50 12.50
Investment Operations:
Investment (loss) (a) (.04) (.08) (.08) (.06)
Net realized and unrealized gain (loss)
on investments (.34) (.33) (.33) (.32)
Total from Investment Operations (.38) (.41) (.41) (.38)
Net asset value, end of period 12.12 12.09 12.09 12.12
-------------------------------------------------------------------------------------
TOTAL RETURN (%) B,C (3.04) (3.28) (3.28) (3.04)
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets c .71 .97 .97 .80
Ratio of investment (loss)
to average net assets (c) (.30) (.56) (.57) (.39)
Portfolio Turnover Rate (c) 176.88 176.88 176.88 176.88
-------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 131,220 140,051 54,628 8,983
(a) Based on average shares outstanding at each month end.
(b) Exclusive of sales charge.
(c) Not annualized.
See notes to financial statements.
</TABLE>
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Opportunity Funds (the "Company") had no operations until June
26, 2000 (commencement of operations) other than matters relating to its
organization and registration as a diversified open-end management investment
company under the Investment Company Act of 1940 (the "Act") and the securities
Act of 1933 and the sale and issuance of 2,000 shares of Beneficial Interest
("Initial Shares") to each of Class A, Class B, Class C and Class T,
respectively, of the Dreyfus Premier NexTech Fund (the "fund") to The Dreyfus
Corporation (the "Manager"). The Company operates as a series company currently
offering two series. The fund's investment objective is capital appreciation.
The Manager serves as the fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. ("Mellon"), which is a wholly-owned subsidiary
of Mellon Financial Corporation. Dreyfus Service Corporation (the "Distributor")
is the distributor of the fund's shares. The fiscal year end of the fund is
April 30.
The fund is authorized to issue an unlimited number of $.001 par value shares of
Beneficial Interest in the following classes of shares: Class A, Class B, Class
C and Class T shares. Class A and Class T shares are subject to a sales charge
imposed at the time of purchase, Class B shares are subject to a contingent
deferred sales charge ("CDSC") imposed on Class B share redemptions made within
six years of purchase, Class C shares are subject to a CDSC imposed on Class C
shares redeemed within one year of purchase. Other differences between the
classes include the service offered to and the expenses borne by each class and
certain voting rights.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
The Fund
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last sales price on the
national securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices, except for open
short positions, where the asked price is used for valuation purposes. Bid price
is used when no asked price is available. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Trustees. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of exchange.
Forward currency exchange contracts are valued at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund received net
earnings credits of $12,653 during the period ended October 31, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain, if any, are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the fund to qualify as a regulated
investment company, if such qualification is in the best interests of its
shareholders, by complying with the applicable provisions of the Code, and to
make distributions of taxable income sufficient to relieve it from substantially
all Federal income and excise taxes.
NOTE 2--BANK LINE OF CREDIT:
The fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. During the period ended October 31, 2000, the fund did not borrow
under the line of credit.
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of 1.50% of the value of the fund's average daily
net assets and is payable monthly. After the funds first year of operations, it
may vary from .50% to 2.50% depending on the fund's performance compared to the
NASDAQ Composite Index.
The Fund
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the Distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares, and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
October 31, 2000, Class B, Class C and Class T shares were charged $335,238,
$125,717 and $7,731 respectively, pursuant to the Plan.
(C) Under the Shareholder Service Plan, Class A, Class B, Class C and Class T
shares pay the Distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or industry professional) in respect of these
services. The Distributor determines the amounts to be paid to Service Agents.
During the period ended October 31, 2000, Class A, Class B, Class C and Class T
shares were charged $99,873, $111,746, $41,906 and $7,731, respectively,
pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 2000, the fund was charged $73,219 pursuant to the transfer
agency agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended October 31, 2000, the fund was
charged $11,727 pursuant to the custody agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not
an "affiliated person" as defined in the Act receives an annual fee of $25,000
and an attendance fee of $4,000 for each meeting attended and $500 for telephone
meetings. These fees are allocated among the funds in the Fund Group. The
Chairman of the Board receives an additional 25% of such compensation. Subject
to the fund's Emeritus Program Guidelines, Emeritus Board members, if any,
receive 50% of the annual retainer fee and per meeting fee paid at the time the
Board member achieves emeritus status.
(E) During the period ended October 31, 2000, the fund incurred total brokerage
commissions of $213,959, of which, $40,244 was paid to Dreyfus Brokerage
Services, a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--SECURITIES TRANSACTIONS:
(a) The following summarizes the amount of purchases and sales of investment
securities, excluding short-term securities, during the period ended October 31,
2000:
Purchases ($) Sales ($)
--------------------------------------------------------------------------------
Long transactions 664,315,540 396,550,671
Short sale transactions 229,411,344 227,685,430
TOTAL 893,726,884 624,236,101
The fund is engaged in short-selling which obligates the fund to replace the
security borrowed by purchasing the security at current market value. The fund
would incur a loss if the price of the security increases between the date of
the short sale and the date on which the fund replaces the borrowed security.
The fund would realize a gain if the price of the declines between those dates.
Until the fund replaces the borrowed security, the fund will maintain daily, a
segregated account with a broker and custodian, of permissible liquid assets
sufficient to cover its short position. At October 31, 2000, there were no open
securities sold short.
(B) At October 31, 2000, accumulated net unrealized appreciation on investments
was $9,065,763, consisting of $26,829,684 gross unrealized appreciation and
$17,763,921 gross unrealized depreciation.
At October 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
FOR MORE INFORMATION
DREYFUS PREMIER
NEXTECH FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To Obtain Information:
BY TELEPHONE
Call your financial
representative or
1-800-554-4611
BY MAIL Write to:
The Dreyfus Premier
Family of Funds
144 Glenn Curtis Boulevard
Uniondale, NY 11556-0144
