DREYFUS PREMIER AGGRESSIVE GROWTH FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The recent decline in the stock market, particularly in the prices of
midsize and smaller companies, took its toll of the net asset value of shares
in Dreyfus Premier Aggressive Growth Fund.
For the six-month fiscal period ended March 31, 1997, the performance for
your Fund is as shown in the following table:
<TABLE>
<CAPTION>
<S> <S>
Total Return*
____________
Class A Shares -13.84%
Class B Shares -14.12%
Class C Shares -14.43%
Class R Shares -13.68%
</TABLE>
During the same period, the Standard & Poor's 500 Composite Stock Price
Index registered a total return of 11.24%, while the Dow Jones Industrial
Average, composed of 30 large blue chip stocks, returned 13.09%.**
Economic Review
The March 25 hike in the Federal Funds rate signaled that the Federal
Reserve Board finally lost confidence in its earlier prognosis of an imminent
economic slowdown. Measured on a quarterly basis, the economy grew 3.2%
between January 1 and December 31, 1996, and recent evidence suggests a
growth acceleration in early 1997. A tighter labor market is becoming
inevitable, posing the risk that higher wages will ultimately translate into
higher prices. As yet, however, prices are subdued by the strong dollar.
Market interest rates rose in recent weeks in anticipation of the Fed's move
and the Fed remains vigilant in case of any need for more credit tightening.
The updated evidence suggests why the Fed might need to take further
action. First, the tight labor market is fueling strong consumer spending.
Second, the housing industry is buoyant. Third, capital goods and export
orders are recently recovering after several sluggish months. In all, demand
is broadening to more sectors, depleting inventories and boosting production
and imports. Moreover, with this year's pickup in international trade, many
foreign economies are also starting to enjoy faster growth.
Although wage inflation has escalated since last summer, price inflation
has so far remained steady. Hence, real wages are rising, adding to the sense
of well-being that is boosting spending. In many instances, rising wages are
the reward for rising productivity. However, the labor shortage is also
boosting wage offers; those companies which must pay up, but cannot raise
prices, may see their profits slow. Profits are also under pressure at
multinational companies that have not hedged the higher dollar, and are
vulnerable at companies that compete with imports. Overall, however, we
expect profits to grow steadily in 1997.
Market interest rates moved higher in recent weeks, preceding the Fed's
25 basis-point increase in the Federal Funds rate. Both short-term and
long-term rates currently anticipate more tightening in coming months.
Moreover, expectations for further rate hikes are also boosting the dollar. A
rising dollar can suppress price inflation, but it also poses the risks of
strong import growth and a wider trade deficit.
The economy has just begun a seventh year of noninflationary growth for
this business cycle. While the Fed has embarked on a tightening process, the
primary impact is likely to temper strong demand, allowing a more sustainable
growth rate. We continue to believe that a long cycle is likely.
Market Overview
The long-expected correction in stock market prices finally occurred
starting in late March, after the Federal Reserve Open Market Committee
raised interest rates by a quarter point.
Never mind that the Fed's move, the first to increase interest rates in
two years, had been widely heralded. Never mind that only a short time
earlier Fed Chairman Alan Greenspan had told Congress that inflation appeared
to remain under control. Also, never mind that the boost in short-term rates
was the smallest the Fed could authorize _ only 25 basis points.
The Fed's move reminded stock investors and traders that stock prices had
moved to the stratosphere over many months, reaching almost 7100 on the Dow
Jones Industrial Average just before the latest Fed intervention. All of a
sudden, owners even of blue chip stocks, the kind that had been leading the
market lately, had second thoughts about valuations. The less prestigious
NASDAQ stocks, particularly those based on high technology, which had been
lagging the market for several months, went into further retreat.
To be sure, by the end of trading March 31 the DJIA was still up 2.52%
for the year, and the Standard & Poor's 500 was up 2.55% though the NASDAQ
Composite was down 5.7%. Many stocks were hurt much more than these averages.
According to a brokerage firm calculation quoted in The Wall Street Journal,
55% of stocks in the NASDAQ had fallen 20% or more below their recent highs
by March 31. For stocks listed on the New York Stock Exchange, the percentage
was 24%, and for the S&P 500, it was 30%.
Even so, the American economy continued to be strong, as described in the
"Economic Review" section of this letter. Now that the Fed has raised
interest rates once, and may do so again later in the year, the prospects for
corporate profits have become more important than ever for stock market
valuations. So far this year, profit levels, while not as robust as those in
1996, have contained some pleasant surprises for investors. If this can be
maintained for the rest of the year, the recent stock market adjustment may
eventually be regarded as no more than a bump in the upward road. One hopeful
sign is that mutual fund equity investors have not engaged in wholesale
redemptions despite the retreat in net asset values of their shares.
Nonetheless, the tone of the market remains highly nervous, susceptible to
unexpected developments.
Portfolio Focus
The portfolio's primary overweightings continue to be in health care,
technology and consumer shares, emphasizing medium and smaller capitalization
shares. Many of the stock holdings have a market capitalization under one
billion dollars. Smaller capitalization shares that declined sharply during
the June-July 1996 broad market drop were subject to severe tax-loss selling
by mutual funds in October and by general investors in November and December.
Many of the Fund's holdings fell vulnerable to severe liquidation during this
period even though the longer-term fundamental outlook remains favorable. As
positive fundamental news is reported in future months, more positive stock
performance could be expected to develop. The investment focus on a one-year a
nd longer fundamental time horizon continues to represent the Fund's primary
strategic approach.
Seven large portfolio holdings represent over 30% of the Fund's assets
and reflect an aggressive growth emphasis on health care (Teva
Pharmaceuticals, Interneuron Pharmaceuticals), technology (MRV
Communications, Intel), consumer growth (Cinar Films) and specialty
industrials (Culligan Water Technologies, Crompton & Knowles). These are
companies with strong above-average growth opportunities in 1997 and 1998.
The largest Fund holdings all have strong new revenue growth developing
during 1997 as new products continue to be successfully introduced.
Fund holdings that experienced severe price declines contributing to
overall underperformance included Interneuron Pharmaceutical, Fuisz
Technologies, Biovail Corporation International, Complete Management, Sun
International Hotels and Metromedia International Group. We continue to hold
significant positions in these issues based on our assessment of a positive
long-term fundamental growth outlook. Of course, the Fund's holdings are
subject to change at any time in response to market conditions.
We feel that the Fund's strategic approach will, within a reasonable
length of time, reward the patient investor.
Sincerely,
[Michael Schonberg signature logo]
Michael Schonberg
Portfolio Manager
April 16, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, based upon net asset value.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. _ Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. Both the
Dow Jones Industrial Average and the Standard & Poor's 500 Composite Stock
Price Index are widely accepted unmanaged indexes of stock market
performance.
<TABLE>
<CAPTION>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS MARCH 31, 1997 (UNAUDITED)
Common Stocks_111.7% Shares Value
_______ _______
<S> <C> <C>
Commercial Services_3.9% Corrections Corporation of America.. 100,000 (a) $ 2,425,000
Ensec International................. 105,000 (a) 551,250
ICTS International NV............... 270,000 (a,b) 2,176,875
Quintel Entertainment............... 830,000 (a) 9,337,500
_______
14,490,625
_______
Consumer Durables_.1% Black Rock Golf.................... 140,000 (a) 297,500
_______
Consumer Non-durables_2.7% American Craft Brewing International Limited 105,000 (a) 170,625
American Craft Brewing International (Warrants). 65,000 (a) 36,563
Donnkenny........................... 225,000 (a) 618,750
Kenneth Cole Productions, Cl. A..... 100,000 (a) 2,100,000
Ultrafem............................ 500,000 (a,b) 7,187,500
_______
10,113,438
_______
Consumer Services_13.7% Alma International.................. 200,000 (a) 450,000
Casino Data Systems................. 590,000 (a) 2,839,375
Checkfree........................... 320,000 (a) 3,880,000
Cinar Films, Cl. B.................. 585,000 (a,b) 14,332,500
Famous Dave's of America............ 220,000 (a) 2,007,500
Gray Communications Systems, Cl. B.. 227,500 3,867,500
Metromedia International Group...... 1,293,300 (a) 11,235,544
Sun International Hotels............ 325,000 (a) 11,375,000
Wiztec Solutions.................... 270,000 (a) 1,383,750
_______
51,371,169
_______
Electronic Technology_11.9% Advanced Photonix, Cl. A............ 965,000 (a,b) 1,809,375
Allin Communications................ 230,000 (a) 3,220,000
Gilat Satellite Networks............ 195,000 (a) 5,898,750
Intel............................... 95,000 13,216,875
Larson Davis........................ 500,000 (a) 4,625,000
MRV Communications.................. 650,000 (a) 14,462,500
Tridex.............................. 100,000 (a) 1,500,000
_______
44,732,500
_______
Energy Minerals_2.2% Rutherford-Moran Oil................ 35,000 (a) 691,250
TransMontaigne Oil.................. 490,000 (a) 7,656,250
_______
8,347,500
_______
Finance_1.8% ASTA Funding........................ 200,000 (a) 600,000
Hooper Holmes....................... 262,000 4,454,000
Preferred Employers Holdings........ 200,000 (a) 1,550,000
_______
6,604,000
_______
Health Services_6.8% Complete Management................. 925,000 (a,b) 11,100,000
Comprehensive Care.................. 132,560 (a) 1,839,270
Core................................ 350,000 (a) 2,187,500
HemaCare............................ 600,000 (a,b) 1,425,000
Northstar Health Services........... 460,000 (a,b) 1,150,000
OMEGA Health Systems................ 340,000 (a) 2,210,000
OnGard Systems...................... 550,000 (a,b) 1,168,750
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ _______
Health Services (continued) OncorMed............................ 670,000 (a,b) $ 2,763,750
Pace Health Management Systems...... 200,000 (a) 550,000
Patient Infosystems................. 185,000 (a) 1,271,875
_______
25,666,145
_______
Health Technology_20.9% Atlantic Pharmaceuticals............ 30,000 (a) 174,375
Atlantic Pharmaceuticals............ 110,000 (a,c) 543,422
Avigen.............................. 330,000 (a) 1,402,500
BioCryst Pharmaceuticals............ 200,000 (a) 2,375,000
Biovail............................. 475,000 (a) 11,043,750
Boston Life Sciences................ 2,000,000 (a) 1,312,500
Cytoclonal Pharmaceutics............ 50,000 (a) 162,500
Cytoclonal Pharmaceutics, Cl. D (Warrants) 200,000 (a) 100,000
Cytogen............................. 983 (a) 5,714
Fuisz Technologies.................. 1,530,000 (a,b) 8,988,750
Interneuron Pharmaceuticals......... 850,000 (a) 14,981,250
MacroChem/Delaware.................. 875,000 (a,b) 4,320,312
Microvision......................... 185,000 (a) 1,029,063
Microvision (Warrants).............. 85,000 (a) 132,812
Mylan Labs.......................... 450,000 6,581,250
NeoPharm............................ 490,000 (a,b) 3,736,250
NeoPharm (Warrants)................. 55,000 (a) 385,000
ONCOR............................... 1,180,000 (a) 4,277,500
Protein Design Labs................. 75,000 (a) 2,250,000
Sepracor............................ 400,000 (a) 9,225,000
VIMRx Pharmaceuticals............... 1,850,000 (a) 5,318,750
_______
78,345,698
_______
Industrial Services_8.7% Commodore Applied Technologies...... 900,000 (a) 6,412,500
Culligan Water Technologies......... 400,000 (a) 15,650,000
Global Marine....................... 500,000 (a) 10,750,000
_______
32,812,500
_______
Process Industries_5.7% Chromatics Color Science 660,000 (a,b) 3,217,500
Crompton & Knowles.................. 870,000 16,965,000
Ocal................................ 280,000 (a) 1,120,000
_______
21,302,500
_______
Producer Manufacturing_4.0% Motorcar Parts & Accessories....... 350,000 (a,b) 4,943,750
Raychem............................ 125,000 10,296,875
_______
15,240,625
_______
Technology Services_18.6% Crystal Systems Solutions........... 490,000 (a) 5,880,000
Designer Holdings................... 450,000 (a) 3,543,750
EA Industries....................... 370,000 (a) 1,110,000
FieldWorks.......................... 230,000 (a) 1,221,875
Four Media.......................... 500,000 (a,b) 4,000,000
Image Guided Technologies........... 250,000 (a,b) 1,687,500
ImNET Systems....................... 435,000 6,525,000
Integrated Technology U.S.A......... 190,000 (a) 237,500
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
_______ _______
Technology Services (continued) Integrated Technology U.S.A (Warrants) 100,000 (a) $ 15,625
Level 8 Systems..................... 335,000 (a,b) 4,438,750
McAfee Associates................... 250,000 (a) 11,062,500
Mercury Interactive................. 855,000 (a,b) 8,336,250
Microware Systems................... 99,500 (a) 634,312
Personal Computer Products.......... 505,000 (a,b) 1,767,500
Smallworldwide, A.D.S............... 300,000 (a) 4,875,000
TALX................................ 240,000 (a) 1,860,000
TriTeal............................. 825,000 (a,b) 9,693,750
V-One............................... 522,500 (a) 3,004,375
_______
69,893,687
_______
Utilities_1.6% Amnex............................... 1,390,000 (a,b) 3,648,750
Intellicell......................... 185,000 (a) 1,341,250
U.S. Energy Systems................. 200,000 (a) 1,000,000
_______
5,990,000
_______
Foreign_9.1% Teva Pharmaceutical Industries, A.D.R 620,000 34,410,000
_______
TOTAL COMMON STOCKS
(cost $458,955,458)............... $419,617,887
=======
Convertible Preferred Stocks_.0%
Health Services; Fresenius Medical AG, A.D.S
(cost $27,904).................... 149,700 (a) $ 14,970
=======
TOTAL INVESTMENTS (cost $458,983,362).................................... 111.7% $419,632,857
==== =======
LIABILITIES, LESS CASH AND RECEIVABLES................................... (11.7%) $ (44,099,656)
==== =======
NET ASSETS............................................................... 100.0% $375,533,281
==== =======
Notes to Statement of Investments:
(a).Non-income producing.
(b).Investment in non-controlled affiliates (cost
$126,662,546)_see Note 1 (d).
(c)Security restricted to public resale. Investment in restricted security,
with an aggregate value of $543,422, represents approximately .15% of net
assets;
</TABLE>
<TABLE>
<CAPTION>
Acquisition Purchase Percentage of
Issuer Date Price Net Assets Valuation*
___ ____________ __________ ________________ ____________
<S> <C> <C> <C> <C>
Atlantic Pharmaceuticals..................... 8/16/96 $6.115 .15% 15% discount
to market value
*The valuation of this security has been determined in good faith under the
direction of the Board of Directors.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1997 (UNAUDITED)
Cost Value
________ ________
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $458,983,362 $419,632,857
Cash....................................... 47,950
Receivable for investment securities sold.. 6,624,406
Dividends receivable....................... 18,000
Receivable for shares of Common Stock subscribed 143
Prepaid expenses and other assets.......... 55,716
________
426,379,072
________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 252,981
Due to Distributor......................... 87,401
Bank loan payable_Note 2................... 45,200,000
Payable for shares of Common Stock redeemed 3,821,972
Payable for investment securities purchased 1,058,436
Loan commitment fees and interest payable.. 258,271
Accrued expenses and other liabilities..... 166,810
________
50,845,871
________
NET ASSETS.................................................................. $375,533,201
========
REPRESENTED BY: Paid-in capital............................ $410,720,202
Accumulated investment (loss).............. (3,486,326)
Accumulated net realized gain (loss) on investments 7,649,830
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4.................... (39,350,505)
--------
NET ASSETS.................................................................. $375,533,201
========
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
________________________________
Class A Class B Class C Class R
_______ _______ _______ _______
<S> <C> <C> <C> <C>
Net Assets $375,131,722 $317,702 $76,524 $7,253
Shares Outstanding 29,394,297 25,122 6,029 566
NET ASSET VALUE PER SHARE $12.76 $12.65 $12.69 $12.81
==== ==== ==== ====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $20,878 foreign taxes
withheld at source).................... $ 602,222
Interest................................... 13,123
_______
Total Income......................... $ 615,345
EXPENSES: Management fee_Note 3(a)................... 1,700,718
Interest_Note 2............................ 1,428,126
Shareholder servicing costs_Note 3(c)...... 841,954
Professional fees.......................... 50,839
Directors' fees and expenses_Note 3(d)..... 36,082
Custodian fees_Note 3(c)................... 23,246
Prospectus and shareholders' reports....... 18,133
Distribution fees_Note 3(b)................ 986
Miscellaneous.............................. 1,587
_______
Total Expenses....................... 4,101,671
_______
INVESTMENT (LOSS)........................................................... (3,486,326)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments.... $ 17,069,238
Net unrealized appreciation (depreciation)
on investments:
Unaffiliated issuers................... (56,950,851)
Affiliated issuers..................... (26,898,705)
_______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (66,780,318)
_______
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(70,266,644)
=======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF CASH FLOWS SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Dividends received....................................................... $ 927,710
Interest received........................................................ 13,123
Interest, loan commitment fees and dividends on securities sold short paid (1,423,757)
Operating expenses paid.................................................. (1,056,582)
Paid to The Dreyfus Corporation.......................................... (1,727,105)$ (3,266,611)
________
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of portfolio securities........................................ (260,445,691)
Proceeds from sales of portfolio securities.............................. 290,197,120 29,751,429
________
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds form Fund shares sold........................................... 110,908,240
Payments for Fund shares redeemed........................................ (142,496,569)
Net increase of bank loans............................................... 5,100,000 (26,488,329)
________ ________
Decrease in cash......................................................... (3,511)
Cash at beginning of period.............................................. 51,461
________
Cash at end of period.................................................... $ 47,950
========
RECONCILIATION OF NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS TO NET CASH USED BY OPERATING ACTIVITIES:
Net Decrease in Net Assets Resulting From Operations..................... (70,266,644)
Adjustments to reconcile net decrease in net assets resulting from operations
to net cash used by operating activities:
Decrease in dividends receivable..................................... 325,488
Increase in interest, loan commitment fees........................... 4,369
Decrease in accrued operating expenses............................... (25,680)
Increase in prepaid expenses......................................... (39,679)
Decrease in due to The Dreyfus Corporation........................... (44,783)
Net realized loss on investments..................................... (17,069,238)
Net unrealized depreciation on investments........................... 83,849,556
________
Net Cash Used by Operating Activities...................................... $ (3,266,611)
========
EE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 1997 Year Ended
(Unaudited) September 30, 1996
_________ __________
OPERATIONS:
Investment (loss)................................................... $ (3,486,326) $ (3,488,652)
Net realized gain (loss) on investments............................. 17,069,238 (9,627,390)
Net unrealized appreciation (depreciation) on investments........... (83,849,556) 10,612,018
________ _______
Net Increase (Decrease) in Net Assets Resulting from Operations... (70,266,644) (2,504,024)
________ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares.................................................... -- (9,496,919)
Net realized gain on investments:
Class A shares.................................................... -- (38,124,274)
________ _______
Total Dividends................................................... -- (47,621,193)
________ _______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................... 110,172,404 119,742,311
Class B shares.................................................... 615,520 13,886
Class C shares.................................................... 93,393 2,731
Class R shares.................................................... 22,149 5,239
Dividends reinvested:
Class A shares.................................................... -- 42,442,019
Cost of shares redeemed:
Class A shares.................................................... (145,673,422) (203,500,906)
Class B shares.................................................... (74,652) --
Class R shares.................................................... (13,079) --
________ _______
Increase (Decrease) in Net Assets from Capital Stock Transactions. (34,857,687) (41,294,720)
________ _______
Total Increase (Decrease) in Net Assets....................... (105,124,331) (91,419,937)
NET ASSETS:
Beginning of Period................................................. 480,657,532 572,077,469
________ _______
End of Period....................................................... $ 375,533,201 $ 480,657,532
======== =======
Undistributed investment loss........................................... $ (3,486,326) --
________ _______
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
________________________________________
Six Months Ended
March 31, 1997 Year Ended
(Unaudited) September 30, 1996
_________ __________
CAPITAL SHARE TRANSACTIONS:
Class A
____
Shares sold......................................................... 7,058,737 7,915,922
Shares issued for dividends reinvested.............................. -- 2,844,638
Shares redeemed..................................................... (10,107,913) (13,395,848)
______ ______
Net Increase (Decrease) in Shares Outstanding (3,049,176) (2,635,288)
====== ======
Class B*
____
Shares sold......................................................... 29,509 858
Shares redeemed..................................................... (5,245) --
______ ______
Net Increase (Decrease) in Shares Outstanding 24,264 858
====== ======
Class C*
____
Shares sold......................................................... 5,931 98
______ ______
Net Increase (Decrease) in Shares Outstanding 5,931 98
====== ======
Class R*
____
Shares sold......................................................... 1,088 350
Shares redeemed..................................................... (872) --
______ ______
Net Increase (Decrease) in Shares Outstanding 216 350
====== ======
*From January 3, 1996 (commencement of initial offering) to September 30,
1996.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class A
__________________________________________________________________________
Six Months Ended
March 31, 1997 Year Ended September 30,
____________________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
____________ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $14.81 $16.31 $15.35 $18.53 $18.11 $17.72
____ ____ ____ ____ ____ ____
Investment Operations:
Investment income (loss)_net.......... (.15) (.12) .40 .40 .21 .32
Net realized and unrealized gain (loss)
on investments...................... (1.90) .01 1.23 (.56) 1.82 1.83
____ ____ ____ ____ ____ ____
Total from Investment Operations...... (2.05) (.11) 1.63 (.16) 2.03 2.15
____ ____ ____ ____ ____ ____
Distributions:
Dividends from investment income_net.. -- (.28) (.44) (.80) (.24) (.39)
Dividends from net realized gain on investments -- (1.11) (.23) (2.22) (1.37) (1.37)
____ ____ ____ ____ ____ ____
Total Distributions................... -- (1.39) (.67) (3.02) (1.61) (1.76)
____ ____ ____ ____ ____ ____
Net asset value, end of period........ $12.76 $14.81 $16.31 $15.35 $18.53 $18.11
-- -- -- -- -- --
____ ____ ____ ____ ____ ____
TOTAL INVESTMENT RETURN (1)............... (13.84%)(2) (.71%) 11.21% (1.50%) 12.04% 13.28%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets .59%(2) 1.11% 1.03% 1.03% 1.02% .97%
Ratio of interest expense, loan commitment fees
and dividends on securities sold short to
average net assets.................. .31%(2) .39% .08% .09% .04% .10%
Ratio of net investment income (loss)
to average net assets............... (.76%)(2) (.66%) 2.55% 2.10% 1.24% 1.74%
Portfolio Turnover Rate............... 42.08%(2) 131.43% 298.60% 158.05% 102.23% 141.67%
Average commission rate paid (3)...... $.0176 $.0961 -- -- -- --
Net Assets, end of period (000's Omitted) $375,132 $ 480,638 $572,077 $570,360 $596,369 $520,895
(1) Exclusive of sales load.
(2) Not annualized.
(3) For fiscal years beginning October 1, 1995, the Fund is required to disclose its average commission rate paid per share for
purchases and sales of investment securities.
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class B
____________________________________
Six Months Ended Year Ended
March 31, 1997 September 30,
PER SHARE DATA: (Unaudited) 1996(1)
_________ _______
<S> <C> <C>
Net asset value, beginning of period.................................... $14.73 $14.84
____ ____
Investment Operations:
Investment (loss)....................................................... (.16)(2) (.10)
Net realized and unrealized gain (loss)
on investments........................................................ (1.92) (.01)
____ ____
Total from Investment Operations........................................ (2.08) (.11)
____ ____
Net asset value, end of period.......................................... $12.65 $14.73
==== ====
TOTAL INVESTMENT RETURN(3,4)................................................ (14.12%) (.74%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets (4)................... .99% 1.47%
Ratio of interest expense and loan commitment
fees to average net assets (4)........................................ .29% .49%
Ratio of net investment (loss)
to average net assets (4)............................................. (1.20%) (1.40%)
Portfolio Turnover Rate (4)............................................. 42.08% 131.43%
Average commission rate paid (5)........................................ $.0176 $.0961
Net Assets, end of period (000's Omitted)............................... $318 $13
(1) From January 3, 1996 (commencement of initial offering) to September 30, 1996.
(2) Based on average shares outstanding at each month end.
(3) Exclusive of sales load.
(4) Not annualized.
(5) The Fund is required to disclose its average commission rate paid per share for purchases and sales of investment
securities.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class C
____________________________________
Six Months Ended Year Ended
March 31, 1997 September 30,
PER SHARE DATA: (Unaudited) 1996(1)
_________ _______
Net asset value, beginning of period.................................... $14.83 $14.84
____ ____
Investment Operations:
Investment (loss)(2).................................................... (.16) (.24)
Net realized and unrealized gain (loss)
on investments(2)..................................................... 1.98) .23
____ ____
Total from Investment Operations(2)..................................... (2.14) (.01)
____ ____
Net asset value, end of period.......................................... $12.69 $14.83
==== ====
TOTAL INVESTMENT RETURN(3,4)................................................ (14.43%) (.07%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets (4)................... 1.02% 1.42%
Ratio of interest expense and loan commitment
fees to average net assets (4)........................................ .31% .47%
Ratio of net investment (loss)
to average net assets (4)............................................. (1.25%) (1.32%)
Portfolio Turnover Rate (4)............................................. 42.08% 131.43%
Average commission rate paid (5)........................................ $.0176 $.0961
Net Assets, end of period (000's Omitted)............................... $76 $1
(1) From January 3, 1996 (commencement of initial offering) to September 30, 1996.
(2) Based on average shares outstanding at each month end.
(3) Exclusive of sales load.
(4) Not annualized.
(5) The Fund is required to disclose its average commission rate paid per share for purchases and sales of investment
securities.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class R
____________________________________
Six Months Ended Year Ended
March 31, 1997 September 30,
PER SHARE DATA: (Unaudited) 1996(1)
_________ _______
Net asset value, beginning of period.................................... $14.84 $14.84
____ ____
Investment Operations:
Investment (loss)....................................................... (.08) (.02)
Net realized and unrealized gain (loss)
on investments........................................................ (1.95) .02
____ ____
Total from Investment Operations........................................ (2.03) _
____ ____
Net asset value, end of period.......................................... $12.81 $14.84
==== ====
TOTAL INVESTMENT RETURN(2).................................................. (13.68%) .00%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets (2)................... .29% .73%
Ratio of interest expense and loan commitment
fees to average net assets (2)........................................ .19% .35%
Ratio of net investment (loss)
to average net assets (2)............................................. (.41%) (.56%)
Portfolio Turnover Rate (2)............................................. 42.08% 131.43%
Average commission rate paid (3)........................................ $.0176 $.0961
Net Assets, end of period (000's Omitted)............................... $7 $5
(1) From January 3, 1996 (commencement of initial offering) to September 30, 1996.
(2) Not annualized.
(3) The Fund is required to disclose its average commission rate paid per share for purchases and sales of investment
securities.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Aggressive Growth Fund (the "Fund") is a series of
Dreyfus Premier Equity Funds, Inc., (the "Company") which is registered under
the Investment Company Act of 1940 ("Act") as a diversified open-end
management investment company and operates as a series company currently
offering two series, including the Fund. The Fund's investment objective is
capital growth. The Dreyfus Corporation ("Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
("Mellon").
On March 10, 1997, the Company's Directors approved, effective March 31,
1997, a change of the Company's name from Premier Equity Fund's, Inc. to
Dreyfus Premier Equity Fund's, Inc. and a change of the Fund's name from
Premier Aggressive Growth Fund to Dreyfus Premier Aggressive Growth Fund.
On September 9, 1996, the Board of Directors of the Fund approved an
Agreement and Plan of Reorganization providing for the transfer of all or
substantially all of the assets and liabilities of Premier Strategic Growth
Fund to the Fund, in a tax free exchange for shares of Common Stock of the
Fund at net asset value and the assumption of stated liabilities (the
"Exchange"). The Exchange was approved by Premier Strategic Growth Fund
shareholders on December 16, 1996, and became effective after the close of
business on December 27, 1996, at which time the Fund issued 2,158,851 Class
A shares valued at $14.07 per share, 24,105 Class B shares valued at $13.97
per share, 1,501 Class C shares valued at $14.03 per share and 975 Class R
shares valued at $14.12 per share to the respective Class A, Class B, Class C
and Class R shareholders of Premier Strategic Growth Fund.
With respect to Premier Strategic Growth Fund 1,031,060 Class A shares
valued at $29.46 per share, 11,517 Class B shares valued at $29.24 per share,
720 Class C shares valued at $29.24 per share and 467 Class R shares valued
at $29.51 per share representing combined net assets of $30,746,605 were
exchanged for the respective Class A, Class B, Class C and Class R shares of
the Fund.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue 200 million shares of
$1.00 par value Common Stock in each of the following classes of shares:
Class A, Class B, Class C and Class R shares. Class A shares are subject to a
sales charge imposed at the time of purchase, Class B shares are subject to a
contingent deferred sales charge imposed at the time of redemption made
within six years of purchase, Class C shares are subject to a contingent
deferred sales charge imposed at the time of redemption on redemptions made
within one year of purchase and Class R shares are sold at net asset value
per share only to institutional investors. Other differences between the
classes include the services 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 fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(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 Directors.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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, 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.
(d) Affiliated issuers: Issuers in which the Fund held 5% or more of the
outstanding voting securities are defined as "affiliated" in the Act. The
following summarizes affiliated issuers during the period ended March 31,
1997.
<TABLE>
<CAPTION>
Shares
__________________________________________________________
Beginning Purchases/ End of Dividend Market Value
Name of Issuer of Period Increases Sales Period Income 3/31/97
________________ ____________ ____________ ______ ______ ______ _______
<S> <C> <C> <C> <C> <C> <C>
Correctional Services Corp.... 275,000 ___ 275,000 ___ ___ ___
Vista 2000.................... 550,000 ___ 550,000 ___ ___ ___
Cinar Films, Cl. B............ 508,181 76,819 ___ 585,000 ___ $14,332,500
Complete Management........... 450,000 475,000 ___ 925,000 ___ 11,100,000
Fuisz Technologies............ 1,260,000 270,000 ___ 1,530,000 ___ 8,988,750
Northstar Health Services..... 235,000 225,000 ___ 460,000 ___ 1,150,000
OncorMed 364,000 306,000 ___ 670,000 ___ 2,763,750
OMEGA Health Systems*......... 269,500 70,500 ___ 340,000 ___ 2,210,000
ICTS International NV......... ___ 270,000 ___ 270,000 ___ 2,176,875
Ultrafem...................... 110,000 390,000 ___ 500,000 ___ 7,187,500
Advanced Photonix, Cl. A...... 515,000 450,000 ___ 965,000 ___ 1,809,375
HemaCare...................... ___ 600,000 ___ 600,000 ___ 1,425,000
OnGard Systems................ 280,000 270,000 ___ 550,000 ___ 1,168,750
MacroChem/Delaware............ 662,500 212,500 ___ 875,000 ___ 4,320,312
NeoPharm...................... 200,000 290,000 ___ 490,000 ___ 3,736,250
Chromatics Color Science...... 155,000 505,000 ___ 660,000 ___ 3,217,500
Motorcar Parts & Accessories.. 250,000 100,000 ___ 350,000 ___ 4,943,750
Four Media.................... ___ 500,000 ___ 500,000 ___ 4,000,000
Image Guided Technologies..... ___ 250,000 ___ 250,000 ___ 1,687,500
Level 8 Systems............... ___ 335,000 ___ 335,000 ___ 4,438,750
Mercury Interactive........... 795,000 110,000 50,000 855,000 ___ 8,336,250
Personal Computer Pruducts.... ___ 505,000 ___ 505,000 ___ 1,767,500
TriTeal....................... 350,000 475,000 ___ 825,000 ___ 9,693,750
Amnex......................... 800,000 590,000 ___ 1,390,000 ___ 3,648,750
* No longer an affiliated Issuer at March 31, 1997.
</TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(e) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and
dividends from net realized capital gain 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. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $9,419,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1996. If not
applied, the carryover expires in fiscal 2004.
NOTE 2_BANK LINES OF CREDIT:
The Fund may borrow up to $76 million for leveraging purposes under a
short-term unsecured line of credit and 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 and an additional
commitment fee is paid on the unused portion of the first $46 million on the
line of credit utilized for leveraging. Outstanding borrowings under both
arrangements on March 31, 1997 amounted to $45,200,000.
The average daily amount of borrowings outstanding under both agreements
during the period ended March 31, 1997 was approximately $44,496,000, with a
related weighted average annualized interest rate of 6.44%. The maximum
amount borrowed at any time during the period ended March 31, 1997, was
$62,600,000.
NOTE 3_MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .75 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses allocable to
Class A, exclusive of taxes, interest on borrowings (which, in the view of
Stroock & Stroock & Lavan, counsel to the Fund, also includes loan commitment
fees and dividends on securities sold short), brokerage commissions and
extraordinary expenses, exceed 11\2% of the average value of Class A net
assets, the Fund may deduct from payments to be made to the Manager, or the
Manager will bear such excess expense. No expense reimbursement was required
for the period ended March 31, 1997.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $17,761 during the period ended March 31, 1997 from commissions
earned on sales of Fund shares.
(b) Under the Distribution Plan, adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C 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, respectively. During the
period ended March 31, 1997, $877 was charged to the Fund for the Class B
shares and $109 was charged to the Fund for the Class C shares.
(c) Under the Shareholder Services Plan the Fund pays the Distributor,
for the provision of certain services to Class A, Class B and Class C
shareholders, a fee at the annual rate of .25 of 1% of the value of the
average daily net assets of Class A, Class B and Class C shares,
respectively. 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
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
services related to the maintenance of shareholder accounts. The Distributor
may make payments to Service Agents (a securities dealer, financial
institution or other industry professional) in respect of these services. The
Distributor determines the amounts to be paid to Service Agents. During the
period ended March 31, 1997, $566,568, $292 and $37 were charged to Class A,
Class B and Class C shares, respectively, by the Distributor 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. Such
compensation amounted to $250,908 during the period ended March 31, 1997.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended March 31, 1997,
$23,246 was charged by Mellon pursuant to the custody agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $4,500 and an attendance fee of
$500 per meeting. The Chairman of the Board receives an additional 25% of
such compensation.
NOTE 4_SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended March 31, 1997,
amounted to $207,032,301 and $293,735,478, respectively.
At March 31, 1997, accumulated net unrealized depreciation on investments
was $39,350,505, consisting of $58,092,779 gross unrealized appreciation and
$97,443,284 gross unrealized depreciation.
At March 31, 1997, 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).
[Dreyfus lion "d" logo]
DREYFUS PREMIER AGGRESSIVE GROWTH 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
Printed in U.S.A. 009SA973
[Dreyfus logo]
Semi-Annual Report
Dreyfus Premier
Aggressive Growth
Fund
March 31, 1997
Registration Mark
DREYFUS PREMIER GROWTH & INCOME FUND
Letter to Shareholders
Dear Shareholder:
For the six months ended March 31, 1997, the performance of Dreyfus
Premier Growth and Income Fund lagged behind the total return of the broad
market averages. The total returns for the six months under review are as
shown in the following table:
<TABLE>
<CAPTION>
<S> <C>
Total Return*
_______________
Class A Shares -13.84%
Class A shares 0.07%
Class B shares -0.23%
Class C shares -0.37%
Class R shares 1.05%
Standard & Poor's Composite 500
Composite Stock Price Index ** 11.24%
</TABLE>
ECONOMIC REVIEW
The decision by the Federal Reserve Board (the Fed) to increase the
Federal Fund's role shows that it finally lost confidence in its earlier
prognosis of an imminent economic slowdown. Fresh evidence suggests why the
Fed might choose to take further action. First, the tight labor market is
fueling strong consumer spending. Second, the housing industry is buoyant.
Third, capital goods and export orders have recently recovered after several
sluggish months. In all, demand is broadening to more sectors, depleting
inventories and boosting production and imports. Moreover, with this year's
pickup in international trade, many foreign economies are also starting to
enjoy faster growth.
Although wage inflation has escalated since last summer, price inflation
has so far remained steady. Hence, real wages are rising, adding to the sense
of well-being that is boosting spending. In many instances, rising wages are
the reward for rising productivity. However, the labor shortage is also
boosting wage offers; those companies which must pay up, but cannot raise
prices, may see their profits slow. Profits are also under pressure at
multinational companies that have not hedged the higher dollar, and are
vulnerable at companies that compete with imports.
Market interest rates moved higher in recent weeks, preceding the
increase in the Federal Funds rate. Both short-term and long-term rates
currently anticipate more credit tightening in coming months. Moreover,
expectations for further rate hikes are also boosting the dollar. A rising
dollar can suppress price inflation, but it also poses the risks of strong
import growth and a wider trade deficit.
The economy has just begun a seventh year of noninflationary growth for
this business cycle. While the Fed has embarked on a tightening process, the
primary effect will likely be to temper strong demand, allowing a more
sustainable growth rate.
MARKET OVERVIEW
The long-expected correction in stock market prices finally occurred
starting in late March, after the Federal Reserve Open Market Committee
raised interest rates by a quarter point.
Never mind that the Fed's move, the first to increase interest rates in
two years, had been widely heralded. Never mind that only a short time
earlier Fed Chairman Alan Greenspan had told Congress that inflation appeared
to remain "quiescent." Also, never mind that the boost in short-term rates
was the smallest the Fed could authorize _ only 25 basis points.
The Fed's move reminded stock investors and traders that stock prices had
moved sharply higher over many months, reaching almost 7100 on the Dow Jones
Industrial Average just before the latest Fed action. All of a sudden, owners
even
of blue chip stocks, the kind that had been leading the market lately, had
second thoughts about valuations. The less prestigious Nasdaq stocks,
particularly those based on high technology, which had been lagging the
market for several months, went into further retreat.
To be sure, by the end of trading March 31 the DJIA was still up 2.60%
for the year, and the Standard & Poor's 500 was up 2.69% though the Nasdaq
Composite was down 5.4%. Many stocks were hurt much more than these averages.
According to a brokerage firm calculation quoted in the Wall Street Journal,
55% of stocks in the Nasdaq had fallen 20% or more below their recent highs
by March 31. For stocks listed on the New York Stock Exchange, the percentage
was 24%, and for the S&P 500, it was 30%.
Even so, the American economy continued to be strong, as described in the
"Economic Review" section of this letter. Now that the Fed has raised
interest rates, and may do so again later in the year, the prospects for
corporate profits have become more important than ever for stock market
valuations. So far this year, profit levels, while not as robust as those in
1996, have contained some pleasant surprises for investors. If this can be
maintained for the rest of the year, the recent stock market adjustment may
eventually be regarded as no more than a bump in the upward road. One hopeful
sign is that mutual fund equity investors have not engaged in wholesale
redemptions despite the retreat in net asset values of their shares.
Nonetheless, the tone of the market remains highly nervous, susceptible to
unexpected developments.
PORTFOLIO FOCUS
During its existence, your Fund has been characterized by relatively
concentrated positions in key stocks having an average market capitalization
much smaller than for the Standard and Poor's 500 Composite Stock Price
Index. This mix of characteristics has meant that the Fund has not closely
tracked the broad market averages. Since inception there have been periods of
outperformance and periods of underperformance.
The composition of the Fund was part of the reason it trailed the broader
market. It was not a very favorable period for relative performance in
small-cap stocks or convertible securities, in which the Fund has significant
investments. The total return on two key small-cap indices, the Russell 2000
and the Standard and Poor's Small Cap 600, was slightly negative in the six
months ended March 31, 1997. In addition, average cash reserves in the Fund
were held at somewhat above industry average levels during the fiscal half
year in an effort to reduce portfolio risk.
A major portion of the Fund's performance lag was attributable to several
smaller cap stocks which dropped sharply. In a relatively concentrated
portfolio, a few stocks can have a major effect on performance_sometimes
positively, sometimes negatively. During the period under review, the effect
was a drag on performance of the overall portfolio. In general, we have
retained these securities because we remain optimistic about their long-term
investment merits. While the Fund continues to have the flexibility to invest
in a mix of small-cap, mid-cap, and large-cap stocks, we are contemplating
some increase in the average market capitalization in the Fund with the
intention of reducing the volatility of the Fund relative to the broad market
averages.
The Federal Reserve actions raising short-term interest rates have
increased the competition for stocks from money market investments and raised
fears about a future slowdown in profits. There are three things which
usually motivate a central bank to tighten. The first is an excessively weak
currency. That's hardly the case now. The second is when inflation has
already surged to a dangerous level. That's not true either. The third is
when real growth is growing faster than the long-term trend, raising worries
at the central bank about a potential future rise in inflation. That's what
we are now experiencing. The Fed's tightening has occurred prior to any
dramatic upsurge in inflation.
The valuation of common stocks tends to be a function of the level of
inflation, the level of interest rates and expectations about corporate
profits. So far, inflation has remained moderate. Interest rates have risen
somewhat. Current
corporate profitability has been high. However, some of the forces which have
helped the profitability of U.S. corporations may prove less favorable over
the next year. The dollar is not as weak as it was before, somewhat reducing
the advantage U.S. firms had in competing with European and Japanese firms.
The ability to refinance corporate debt at lower interest rates has been
reduced by the rise in interest rates. A great deal of corporate
restructuring has already occurred, to the point where further cost
reductions may be harder to achieve. Corporate profits have benefited from an
economy which has been running above trend. But the Fed seems dedicated to
bringing the period of above-trend economic growth to an end.
We believe that the good news is that U.S. corporations have been more
successful in shifting their resources from old industries to new industries
than have their counterparts in Europe and Japan. U.S. companies are
well-positioned in the new industries which will be the growth engines of the
industrialized economies in the next decade.
We appreciate the willingness of our shareholders to invest in the
Dreyfus Premier Growth and Income Fund. We will endeavor to realize a
favorable return for the shareholders commensurate with a reasonable level of
risk. There is likely to be an alternation of periods where the net asset
value of the Fund declines and periods when the net asset value rises. Our
focus is on achieving a satisfactory return for the shareholders over a
period of time.
Very truly yours,
[Richard B. Hoey signature logo]
Richard B. Hoey
Portfolio Manager
April 22, 1997
New York, NY
* 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 contingent deferred sales charge imposed
on redemptions in the case of Class B and Class C shares.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC._Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of stock market performance.
<TABLE>
<CAPTION>
DREYFUS PREMIER GROWTH & INCOME FUND
Statement of Investments March 31, 1997 (Unaudited)
Common Stocks_60.7% Shares Value
_____________ ____________
<S> <C> <C> <C>
Basic and
Process Industries_5.2% Ciba Specialty Chemicals............... 20,000 (a) $ 1,644,441
Dow Chemical........................... 25,000 2,000,000
Millennium Chemicals................... 75,000 1,406,250
_____________
5,050,691
_____________
Business Services_2.9% ADT Limited............................ 50,000 1,250,000
Corporate Express...................... 150,000 (a) 1,537,500
_____________
2,787,500
_____________
Capital Goods_3.9% Deere & Co............................. 65,000 2,827,500
Thermo Instrument Systems.............. 32,000 (a) 928,000
_____________
3,755,500
_____________
Consumer_7.3% OfficeMax.............................. 200,000 (a) 2,600,000
Sunglass Hut International............. 400,000 (a) 2,800,000
Tupperware............................. 50,000 1,675,000
_____________
7,075,000
_____________
Energy_6.6% Amerada Hess........................... 15,000 795,000
Occidental Petroleum................... 50,000 1,231,250
Pennzoil............................... 30,000 1,552,500
UGI.................................... 120,000 2,850,000
_____________
6,428,750
_____________
Health Care_9.0% Algos Pharmaceutical................... 25,000 418,750
Alkermes............................... 100,000 (a) 1,400,000
ALPHARMA, Cl. A........................ 215,000 2,956,250
IDX Systems............................ 40,000 (a) 1,090,000
Mentor................................. 70,000 1,513,750
Varian Associates...................... 25,000 1,337,500
_____________
8,716,250
_____________
Insurance_4.7% Nac Re................................. 70,000 2,493,750
Nationwide Financial Services, Cl.A.... 33,200 (a) 854,900
Reliance Group Holdings................ 120,000 1,260,000
_____________
4,608,650
_____________
Media/Entertainment_4.2% Groupe AB, A.D.S....................... 250,000 (a) 2,406,250
Viacom, Cl. B.......................... 50,000 (a) 1,656,250
_____________
4,062,500
_____________
Mining and Metals_.6% Brascan, Cl. A......................... 25,000 562,500
_____________
Technology_4.4% CUC International...................... 100,000 (a) 2,250,000
Electronic Data Systems................ 50,000 2,018,750
_____________
4,268,750
_____________
Telecommunications_8.6% LCI International...................... 150,000 (a) 2,512,500
Omnipoint.............................. 125,000 (a) 1,218,750
Tele-Communications International, Cl.A 200,000 (a) 2,575,000
Viatel................................. 300,000 (a) 1,987,500
_____________
8,293,750
_____________
DREYFUS PREMIER GROWTH & INCOME FUND
Statement of Investments (continued) March 31, 1997 (Unaudited)
Common Stocks (continued) Shares Value
_____________ _____________
Transportation_.6% Mesa Air Group......................... 100,000 (a) $ 610,938
_____________
Utilities_2.7% Duke Power............................. 60,000 2,647,500
_____________
TOTAL COMMON STOCKS
(cost $64,342,152)................... $58,868,279
=============
Convertible Preferred Stocks_5.4%
Energy_1.6% McKesson, Ser. A, Cum., $2.50.......... 30,000 (c) $ 1,593,750
_____________
Financial_1.5% National Australia Bank, Ser. A, Cum., $2.125 60,000 1,496,250
_____________
Telecommunications_2.3% AirTouch Communications, Ser., C, 4.25%.. 50,000 2,187,500
_____________
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $5,484,508)...................... $ 5,277,500
=============
Principal
Convertible Corporate Notes & Bonds_19.3% Amount
_____________
Busines Services_3.6% Corporate Express, Sub. Notes,
4.50%, 7/01/2001..................... $..3,000,000 $ 2,553,750
Omnicom Group, Sub. Notes,
4.25%, 1/03/2007..................... 900,000 (c) 951,750
_____________
3,505,500
_____________
Consumer_8.2% Home Depot, Sub. Notes,
3.25%, 10/01/2001.................... 2,000,000 1,997,500
Pep Boys, Sub. Notes,
Zero Coupon, 9/20/2011............... 3,500,000 1,850,625
Saks Holdings, Sub. Notes,
5.50%, 9/15/2006..................... 4,000,000 4,050,000
_____________
7,898,125
_____________
Insurance_2.3% Penn Treaty, Sub. Notes,
6.25%, 12/01/2003.................... 2,000,000 (c) 2,225,000
_____________
Media/Entertainment_1.5% Telecommunication, Sub. Deb.,
4.50%, 2/15/2006..................... 2,000,000 1,490,000
_____________
Mining and Metals_.7% Inco, Yankee Deb.,
5.75%, 7/01/2004..................... 500,000 626,875
_____________
Technology_1.1% Thermo Electron, Euro. Sub. Deb.,
4.25%, 1/01/2003..................... 1,000,000 (c) 1,060,000
_____________
Telecommunications_1.9% U.S. West, Sub. Deb.,
Zero Coupon, 6/25/2011............... 5,000,000 1,843,750
_____________
TOTAL CONVERTIBLE CORPORATE NOTES AND BONDS
(cost $18,762,924)................... $18,649,250
=============
DREYFUS PREMIER GROWTH & INCOME FUND
Statement of Investments (continued) March 31, 1997 (Unaudited)
Principal
Notes & Bonds_3.1% Amount Value
____________ _____________
U.S. Treasury Notes: 5.625%, 11/30/1998
(cost $2,993,271).................... $..3,000,000 $ 2,965,312
=============
Short-Term Investments_9.5%
U.S. Treasury Bills: 5.17%, 4/3/1997........................ $..324,000 $ 323,912
5.292%, 4/10/1997...................... 1,260,000 (b) 1,258,534
5.11%, 4/17/1997....................... 654,000 652,458
5.12%, 4/24/1997....................... 717,000 714,936
5.22%, 5/1/1997........................ 1,213,000 1,207,809
5.08%, 5/8/1997........................ 956,000 950,915
5.26%, 5/15/1997....................... 344,000 341,816
5.05%, 5/22/1997....................... 1,745,000 1,732,182
5.30%, 5/29/1997....................... 2,027,000 2,010,002
_____________
TOTAL SHORT-TERM INVESTMENTS
(cost $9,193,784).................... $ 9,192,565
=============
TOTAL INVESTMENTS (cost $100,776,639)....................................... 98.0% $94,952,906
======= =============
CASH AND RECEIVABLES (NET).................................................. 2.0% $ 1,978,972
======= =============
NET ASSETS.................................................................. 100.0% $96,931,878
======= =============
Notes to Statement of Investments:
(a) Non-income producing.
(b) Partially
held by brokers as collateral for open short positions.
(c) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31, 1997,
these securities amounted to $5,830,500 or approximately 6.0% of net assets.
Statement of Securities Sold Short March 31, 1997 (Unaudited)
Common Stocks Shares Value
_____________ ___________
Complete Management
(proceeds $266,691)....................................................... 21,000 $ 252,000
=============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GROWTH AND INCOME FUND
Statement of Assets and Liabilities March 31, 1997 (Unaudited)
Cost Value
___________ ___________
ASSETS: Investments in securities_See Statement of Investments $100,776,639 $ 94,952,906
Cash....................................... 422,553
Receivable for investment securities sold.. 6,514,251
Receivable for shares of Common Stock subscribed 396,695
Dividends and interest receivable.......... 395,854
Receivable from brokers for proceeds on
securities sold short................... 266,691
Prepaid expenses and other assets.......... 52,377
______________
103,001,327
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 42,920
Due to Distributor......................... 59,805
Payable for investment securities purchased 5,338,797
Payable for shares of Common Stock redeemed 300,262
Securities sold short, at value
(proceeds $266,691)_see statement....... 252,000
Net unrealized depreciation on forward
currency exchange contracts_Note 4(a)... 35,369
Accrued expenses........................... 40,296
______________
6,069,449
______________
NET ASSETS.................................................................. $ 96,931,878
===============
REPRESENTED BY: Paid-in capital............................ $ 97,663,595
Accumulated distributions in excess of
investment income_net.................... (9,463)
Accumulated net realized gain (loss) on investments 5,122,157
Accumulated net unrealized appreciation (depreciation)
on investments_Note 4(b)................. (5,844,411)
______________
NET ASSETS.................................................................. $ 96,931,878
===============
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
___________________________
Class A Class B Class C Class R
______________ ____________ ______________ _____________
<S> <C> <C> <C> <C>
Net Assets................................. $ 37,388,671 $ 54,673,499 $ 4,697,170 $ 172,538
Shares Outstanding......................... 2,144,793 3,149,247 270,437 9,823
NET ASSET VALUE PER SHARE.................. $17.43 $17.36 $17.37 $17.56
======== ======= ======== ========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER GROWTH AND INCOME FUND
Statement of Operations Six Months Ended March 31, 1997 (Unaudited)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Interest................................... $ 737,046
Cash dividends (net of $4,451 foreign taxes
withheld at source).................... 470,624
____________
Total Income......................... $ 1,207,670
EXPENSES: Management fee_Note 3(a)................... 327,685
Distribution fees_Note 3(b)................ 193,074
Shareholder servicing costs_Note 3(c)...... 157,899
Registration fees.......................... 79,272
Custodian fees_Note 3(c)................... 16,950
Directors' fees and expenses_Note 3(d)..... 12,844
Professional fees.......................... 10,536
Prospectus and shareholders' reports....... 5,672
Loan commitment fees_Note 2................ 523
Miscellaneous.............................. 1,707
____________
Total Expenses....................... 806,162
Less_reduction in management fee due to
undertaking_Note 3(a).................. (66,947)
____________
Net Expenses......................... 739,215
____________
INVESTMENT INCOME_NET....................................................... 468,455
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments:
Long transactions...................... $ 6,984,671
Short sale transactions................ 557,933
____________
Net Realized Gain (Loss)............. 7,542,604
Net unrealized appreciation (depreciation) on investments (8,862,101)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (1,319,497)
____________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (851,042)
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER GROWTH AND INCOME FUND
Statement of Changes in Net Assets
Six Months Ended
March 31, 1997 Year Ended
(Unaudited) September 30, 1996*
_________________ ___________________
<S> <C> <C>
OPERATIONS:
Investment income_net.............................................. $ 468,455 $ 185,128
Net realized gain (loss) on investments............................ 7,542,604 1,566,861
Net unrealized appreciation (depreciation) on investments.......... (8,862,101) 3,017,690
_________________ _______________
Net Increase (Decrease) in Net Assets Resulting from Operations (851,042) 4,769,679
_________________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares................................................... (274,603) (109,766)
Class B shares................................................... (205,021) (49,896)
Class C shares................................................... (19,359) (1,244)
Class R shares................................................... (1,882) (1,275)
Net realized gain on investments:
Class A shares................................................... (1,625,160) __
Class B shares................................................... (2,153,920) __
Class C shares................................................... (196,847) __
Class R shares................................................... (11,381) __
_________________ _______________
Total Dividends.............................................. (4,488,173) (162,181)
_________________ _______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares................................................... 15,695,652 34,427,601
Class B shares................................................... 24,593,702 38,453,822
Class C shares................................................... 3,875,615 3,604,147
Class R shares................................................... 111,150 664,097
Dividends reinvested:
Class A shares................................................... 1,740,042 100,028
Class B shares................................................... 2,036,084 41,499
Class C shares................................................... 122,792 829
Class R shares................................................... 13,263 1,275
Cost of shares redeemed:
Class A shares................................................... (8,351,174) (6,181,710)
Class B shares................................................... (6,474,988) (2,996,279)
Class C shares................................................... (1,659,668) (1,311,627)
Class R shares................................................... (111,606) (730,951)
_________________ _______________
Increase (Decrease) in Net Assets from Capital Stock Transactions 31,590,864 66,072,731
_________________ _______________
Total Increase (Decrease) in Net Assets.................... 26,251,649 70,680,229
NET ASSETS:
Beginning of Period................................................ 70,680,229 __
_________________ _______________
End of Period...................................................... $96,931,878 $70,680,229
================ =================
Undistributed investment income (Distributions in excess of investment income)_net $ (9,463) $ 22,947
_________________ _______________
* From December 29, 1995 (commencement of operations) to September 30, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GROWTH AND INCOME FUND
Statement of Changes in Net Assets (continued)
Shares
______________________________________________
Six Months Ended
March 31, 1997 Year Ended
(Unaudited) September 30, 1996*
___________________ _____________________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold....................................................... 853,213 1,979,771
Shares issued for dividends reinvested............................ 98,351 5,502
Shares redeemed................................................... (451,087) (340,957)
________________ ______________
Net Increase (Decrease) in Shares Outstanding 500,477 1,644,316
================ ==============
Class B
________
Shares sold....................................................... 1,341,368 2,212,839
Shares issued for dividends reinvested............................ 115,491 2,293
Shares redeemed................................................... (350,894) (171,850)
________________ ______________
Net Increase (Decrease) in Shares Outstanding 1,105,965 2,043,282
================ ==============
Class C
________
Shares sold....................................................... 210,016 216,822
Shares issued for dividends reinvested............................ 6,954 46
Shares redeemed................................................... (90,103) (73,298)
________________ ______________
Net Increase (Decrease) in Shares Outstanding 126,867 143,570
================ ==============
Class R
________
Shares sold......................................................... 5,917 49,451
Shares issued for dividends reinvested.............................. 750 74
Shares redeemed..................................................... (6,281) (40,088)
________________ ______________
Net Increase (Decrease) in Shares Outstanding 386 9,437
================ ==============
* From December 29, 1995 (commencement of operations) to September 30, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER GROWTH AND INCOME FUND
Financial Highlights
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class A Class B
__________________________________ __________________________________
Six Months Ended Year Ended Six Months Ended Year Ended
March 31, 1997 September 30 March 31, 1997 September 30,
PER SHARE DATA: (Unaudited) 1996(1) (Unaudited) 1996(1)
__________________ ___________ ________________ ___________
<S> <C> <C> <C> <C>
Net asset value, beginning of period $18.45 $12.50 $18.37 $12.50
________ ________ ________ ________
Investment Operations:
Investment income_net.............. .13 .10 .07 .03
Net realized and unrealized gain (loss)
on investments................... (.12) 5.94 (.11) 5.87
________ ________ ________ ________
Total from Investment Operations... .01 6.04 (.04) 5.90
________ ________ ________ ________
Distributions:
Dividends from investment income_net (.14) (.09) (.08) (.03)
Dividends from net realized gain
on investments................... (.89) -- (.89) --
________ ________ ________ ________
Total Distributions................ (1.03) (.09) (.97) (.03)
________ ________ ________ ________
Net asset value, end of period..... $17.43 $18.45 $17.36 $18.37
======== ======= ========= =========
TOTAL INVESTMENT RETURN (2,3).......... .07% 48.24% (.23%) 47.14%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets (3) .62% .94% 1.00% 1.52%
Ratio of net investment income
to average net assets (3)........ .75% .92% .38% .34%
Decrease reflected in above expense ratios
due to undertakings by the Manager (3) .08% .30% .08% .30%
Portfolio Turnover Rate (3)........ 152.83% 205.64% 152.83% 205.64%
Average commission rate paid (4)... $.0568 $.2413 $.0568 $.2413
Net Assets, end of period (000's Omitted) $37,389 $30,330 $54,673 $37,534
(1) From December 29, 1995 (commencement of operations) to September 30, 1996.
(2) Exclusive of sales load.
(3) Not annualized.
(4) The Fund is required to disclose its average commission rate
paid per share for purchases and sales of investment
securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER GROWTH AND INCOME FUND
Financial Highlights (continued)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class C Class R
__________________________________ __________________________________
Six Months Ended Year Ended Six Months Ended Year Ended
March 31, 1997 September 30 March 31, 1997 September 30,
PER SHARE DATA: (Unaudited) 1996(1) (Unaudited) 1996(1)
__________________ ___________ ________________ ___________
<S> <C> <C> <C> <C>
Net asset value, beginning of period $18.40 $12.50 $18.42 $12.50
________ ________ ________ ________
Investment Operations:
Investment income_net.............. .04 .03 .04(4) .24(4)
Net realized and unrealized gain (loss)
on investments................... (.10) 5.88 .15 5.80
________ ________ ________ ________
Total from Investment Operations... (.06) 5.91 .19 6.04
________ ________ ________ ________
Distributions:
Dividends from investment income_net (.08) (.01) (.16) (.12)
Dividends from net realized gain
on investments................... (.89) -- (.89) --
________ ________ ________ ________
Total Distributions................ (.97) (.01) (1.05) (.12)
________ ________ ________ ________
Net asset value, end of period..... $17.37 $18.40 $17.56 $18.42
======== ======== ======== =========
TOTAL INVESTMENT RETURN (2,3).......... (.37%) 47.27% 1.05% 48.38%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets (3) 1.00% 1.52% .48% .79%
Ratio of net investment income
to average net assets (3)........ .39% .30% .88% 1.01%
Decrease reflected in above expense ratios
due to undertakings by the Manager (3) .07% .30% .09% .30%
Portfolio Turnover Rate (3)........ 152.83% 205.64% 152.83% 205.64%
Average commission rate paid (5)... $.0568 $.2413 $.0568 $.2413
Net Assets, end of period (000's Omitted) $4,697 $2,642 $173 $174
(1) From December 29, 1995 (commencement of operations) to September 30, 1996.
(2) Exclusive of sales load.
(3) Not annualized.
(4) Based on average shares outstanding.
(5) The Fund is required to disclose its average commission rate paid
per share for purchases and sales of investment
securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER GROWTH AND INCOME FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Growth and Income Fund (the "Fund") is a series of
Dreyfus Premier Equity Funds, Inc. (the "Company") which is registered under
the Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering two series, including the Fund. The Fund's investment objective is
long-term capital growth, current income and growth of income, consistent
with reasonable investment risk. The Dreyfus Corporation ("Manager") serves
as the Fund's investment adviser. The Manager is a direct subsidiary of
Mellon Bank, N.A. ("Mellon").
On March 10, 1997, the Company's Directors approved, effective March 31,
1997, a change of the Company's name from "Premier Equity Funds, Inc." to
"Dreyfus Premier Equity Funds, Inc." and a change of the Fund's name from
"Premier Growth and Income Fund" to "Dreyfus Premier Growth and Income Fund".
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue 200 million shares of
$1.00 par value Common Stock in each of the following classes of shares:
Class A, Class B, Class C and Class R shares. Class A shares are subject to a
sales charge imposed at the time of purchase, Class B shares are subject to a
contingent deferred sales charge imposed at the time of redemption made
within six years of purchase, Class C shares are subject to a contingent
deferred sales charge imposed at the time of redemption on redemptions made
within one year of purchase and Class R shares are sold at net asset value
per share only to institutional investors. Other differences between the
classes include the services 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 fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(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.
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, 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 or 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
DREYFUS PREMIER GROWTH AND INCOME FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
ex-dividend date and interest income, including, where applicable,
amortization of discount on investments, is recognized on the accrual basis.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid on a
quarterly basis. Dividends from net realized capital gain 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. 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 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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2_LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions. In
connection therewith, the Fund has agreed to pay commitment fees on its pro
rata portion of the Facility. Interest is charged to the Fund at rates based
on prevailing market rate in effect at the time of borrowings. For the period
ended March 31, 1997, 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 .75 of 1% of the value of the Fund's
average daily net assets and is payable monthly. The Manager has currently
undertaken from November 1, 1996 through December 31, 1997 to reduce the
management fee paid by the Fund, to the extent that the Fund's aggregate
expenses, excluding 12b-1 distribution fees, taxes, brokerage, loan
commitment fees, interest on borrowings (which, in the view of Stroock & Stroo
ck & Lavan, counsel to the Fund, also contemplates dividends and interest
accrued on securities sold short) and extraordinary expenses exceed an annual
rate of 1.25% of the value of the Fund's average daily net assets. The
reduction in management fee, pursuant to the undertaking, amounted to $66,947
during the period ended March 31, 1997.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, the Fund pays the Distributor for distributing the
Fund's Class B and Class C 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, respectively.
During the period ended March 31, 1997, $178,104 was charged to the Fund for
the Class B shares and $14,970 was charged to the Fund for the Class C
shares.
(c) Under the Shareholder Services Plan the Funds pays the Distributor
for the provision of certain services to Class A, Class B and Class C
shareholders, at the annual rate of .25 of 1% of the value of the average
daily net assets of Class A, Class B and Class C shares. 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 other industry professional) in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended March 31, 1997, $44,624, $59,368 and $4,990
were charged to Class A, Class B and Class C shares, 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. Such
compensation amounted to $35,143 during the period ended March 31, 1997.
DREYFUS PREMIER GROWTH AND INCOME FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The Fund compensates Mellon under a custody agreement to provide custodial
services for the Fund. During the period ended
March 31, 1997, $16,950 was charged by Mellon pursuant to the custody
agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $4,500 and an attendance fee of
$500 per meeting. The Chairman of the Board receives an additional 25% of
such compensation.
NOTE 4_SECURITIES TRANSACTIONS:
(a) The following summarizes the aggregate amount of purchases and sales
of investment securities and securities sold short, excluding short-term
securities and forward currency exchange contracts, during the period ended
March 31, 1997:
<TABLE>
<CAPTION>
Purchases Sales
________________ ________________
<S> <C> <C>
Long transactions.................................................... $138,609,919 $111,918,114
Short sale transactions.............................................. 1,954,740 2,779,364
________________ ________________
Total............................................................ $140,564,659 $114,697,478
================ ================
</TABLE>
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 security 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 cash and/or U.S. Government securities
sufficient to cover its short position. Securities sold short at March 31,
1997, and their related market values and proceeds are set forth in the
Statement of Securities Sold Short.
The following summarizes open forward currency exchange contracts at
March 31, 1997:
<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Forward Currency Contracts Amount Proceeds Value (Depreciation)
______________ _____________ ___________ ___________ ________________
<S> <C> <C> <C> <C>
Sales:
___
Swiss Francs, expiring 4/4/97............ 2,000,000 $1,346,801 $1,382,170 ($35,369)
=========
</TABLE>
The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency
exchange rates on its foreign portfolio holdings. When executing forward
currency exchange contracts, the Fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the Fund would incur a loss if
the value of the contract increases between the date the forward contract is
opened and the date the forward contract is closed. The Fund realizes a gain
if the value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the Fund would incur a loss
if the value of the contract decreases between the date the forward contract
is opened and the date the forward contract is closed. The Fund realizes a
gain if the value of the contract increases between those dates. The Fund is
also exposed to credit risk associated with counter party nonperformance on
these forward currency exchange contracts which is typically limited to the
unrealized gain on each open contract.
(b) At March 31, 1997, accumulated net unrealized depreciation on
investments, securities sold short and forward currency exchange contracts
was $5,844,411, consisting of $2,022,491 gross unrealized appreciation and
$7,866,902 gross unrealized depreciation.
At March 31, 1997, 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).
[Dreyfus lion "d" logo]
DREYFUS PREMIER GROWTH
AND INCOME 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
Printed in U.S.A. 320SA973
[Dreyfus logo]
Registration Mark
Semi-Annual Report
Dreyfus Premier
Growth and Income
Fund
March 31, 1997
