DREYFUS PREMIER AGGRESSIVE GROWTH FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Dreyfus Premier Aggressive Growth Fund has completed its latest
fiscal period, the 12 months ended September 30, 1997. While the Fund still
lags behind its baseline index, we believe that, looking forward, the kinds
of stocks chosen for the portfolio could benefit from favorable economic and
market conditions.
For the year ended September 30, 1997, the performance for your Fund is
shown in the following table:
<TABLE>
<CAPTION>
Total Return*
______________________
<S> <C>
Class A shares 7.63%
Class B shares 6.86%
Class C shares 6.27%
Class R shares 7.95%
Standard & Poor's 500 Composite
Stock Price Index** 40.43%
</TABLE>
Economic Review
A major surprise this year has been that the rate of inflation has
continued to moderate. This has occurred despite a tightening labor market
and consecutive quarters of strong economic growth. Moreover, overall
corporate profits have continued to surprise on the up side. Slowing
inflation has kept short-term interest rates steady and it has pulled
long-term interest rates lower in recent months. Although the Federal Reserve
Board ("the Fed") has held a bias toward tightening for more than a year,
slowing inflation has kept the Fed in a "wait and see" mode since it last
raised short-term rates in March.
Virtually all measures of price inflation-consumer prices, producer
prices and industrial commodity prices-have been subdued this year. Factors
suppressing inflation have been the strong dollar that has reduced prices in
import-competing industries, lower oil prices and economic problems overseas.
Additionally, the downtrend in health care inflation has continued to help
pull core inflation lower. Yet the labor market remains quite tight: the
unemployment rate has held below 5% since the spring and wage inflation in
some sectors has been steadily accelerating.
The economy has grown by a nearly 4% rate since the summer of 1996.
Consumer spending has been strong, fueled by rising real incomes and reduced
job insecurity. A broad-based rebound in capital spending has developed this
year following a brief slowdown over the winter. Exports have been rising at
double-digit rates. Even housing activity has remained at high levels,
although this sector has not strengthened significantly further. The strength
in domestic demand has fueled rapid import growth that, in turn, should help
mitigate some of the economic weakness overseas. Corporate profits have
continued to trend higher in this setting.
In effect, lower inflation with no change in the Federal Funds rate
policy implies a higher real Fed Funds rate, after adjusting for price
changes. That acts as a light brake on inflation. Whether stronger brake
pressure will be required is not yet determined by the monetary authorities.
Market Overview
The securities markets generally rose during the last year, though they
experienced several corrections along the way, including a small correction
in late 1996, a sharper broad-based drop in March-May and a decline primarily
in large capitalization shares in August. While earnings growth was solid
throughout the year, shifts in expectations for economic growth and interest
rates had the most impact on market moves.
When economic growth expectations began to favor much stronger growth and
the Federal Reserve Board raised short-term interest rates in early 1997,
fears of much higher interest rates caused a sharp stock market correction
similar to the decline in mid-1996 when interest rates also rose for a couple
of months. Later, when commodity prices declined and
interest rates again declined, stocks rallied once more, supported by solid
first-quarter earnings results. The equity market rally continued into the
summer as second-quarter results were also generally above expectations. Only
in August, when a few major companies like Coca-Cola and Gillette indicated
some disappointing fundamental growth prospects, did the year-long leadership
of large capitalization stocks seem to pause.
The extreme outperformance of larger capitalization shares during the
September fiscal year, following the sharp market correction in 1996, and
fostered by investors' fears of smaller capitalization illiquidity, pushed
large cap valuations to a very high multiple valuation of growth rates. This
made them very vulnerable to any earnings disappointments. Recently there has
been more positive performance by smaller capitalization aggressive growth
stocks with strong, far above-average earnings growth prospects in 1997 and
1998. This reinforced our confidence in our long-term investment philosophy
that focuses on earnings growth prospects over the next 12 to 24 months.
Investment Strategy
The Dreyfus Premier Aggressive Growth Fund seeks to achieve its objective
of capital appreciation through a growth-oriented approach to investing in
stocks based on the philosophy that, over time, relative stock performance is
driven by relative earnings performance. The Fund primarily looks for
companies which will experience earnings growth at an above-average rate for
the upcoming 12 to 24 months.
The Fund may and will, from time to time, seek to invest in small,
medium, and large capitalization companies with growth potential. While there
are no company size guideline targets for the portfolio, a focus on the
fastest growing industry sectors and specific companies under present market
conditions currently leads to emphasis on smaller capitalization stocks,
including small cap companies of under $200 million market capitalization. As
a result of this focus, the Fund may tend to be more volatile than other
equity funds and you should consider whether the Fund's risk profile is
consistent with your investment needs.
The Fund's investment orientation has tended to generate a significant
portfolio weighting in what we believe are high growth areas such as health
care, technology, consumer growth and services. Attractive aggressive growth
companies in these sectors are often described as innovative organizations on
the cutting edge of new product development or new focused business
approaches. These companies are often highly dependent on new business
innovations that are critical to the companies' future growth prospects.
Shares of such companies are often volatile, compared with the general
market, and may react sharply to key news announcements about new product and
business developments which influence growth expectations and the multiple of
earnings at which such shares trade.
Portfolio Focus
In some measure, the Fund's underperformance for the year was due to
downside earnings surprises caused by delayed new product or new service
introductions that caused negative revenue and earnings results. Even in a
bullish market environment, companies, regardless of capitalization size, can
be affected by such factors.
Some of the stocks that contributed to the Fund's more recent improved
performance included Mylan Laboratories (generic pharmaceuticals), Crystal
Systems Solutions (software), Complete Management (physician practice
management), Chromatics Color Science (medical technology), Microvision
(health technology), MRV Communications (network technology), Cinar Films,
Cl.B (entertainment) and Sepracor (pharmaceuticals).
Significant positions that negatively impacted performance during the
fiscal year included ONCOR (biotechnology), Commodore Applied Technologies
(pollution technology), Four Media (entertainment), Larson Davis (industrial
technology), Fuisz Technologies (health care), Ultrafem (consumer products),
TriTeal (technology) and Interneuron Pharmaceuticals (health care).
The portfolio's heaviest overweightings were in technology and health
care, focusing on small companies with promising new products and business
opportunities in 1997 and 1998. The sharpest period of underperformance,
during February-April, occurred during the overall market correction and was
exaggerated by both investor liquidation of smaller company shares in favor
of larger companies and by disappointment in smaller companies where expected
positive news had not yet occurred to spur positive investor interest. During
the May-June market rally, large and small capitalization shares broadly
rebounded on a more even basis. By August, the negative surprises hurt
performance of some larger companies, while more positive news for smaller
stocks led to a performance reversal strongly favoring successful, aggressive
growth companies in the Fund's portfolio.
The six largest portfolio holdings, representing over 27% of the Fund's
assets, reflect the aggressive growth emphasis on pharmaceuticals (Teva
Pharmaceuticals Industries, A.D.R., Mylan Laboratories), medical services
(Complete Management), entertainment (Cinar Films, Cl.B), electronic software
technology (Crystal Systems Solutions) and specialty industry chemicals
(Crompton & Knowles). These are companies with what we believe are
significant growth opportunities via new product introductions and acquisition
s that we believe will generate far above-average revenue and earnings growth
over the next 12 to 24 months.
We appreciate your support and will strive to produce rewarding returns
over the long term.
Sincerely,
[Michael Schonberg signature logo]
Michael Schonberg
Portfolio Manager
October 20, 1997
New York, N.Y.
* 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 U.S. stock market performance.
<TABLE>
<CAPTION>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND SEPTEMBER 30, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER
AGGRESSIVE GROWTH FUND CLASS A SHARES AND THE STANDARD & POOR'S 500 COMPOSITE
STOCK PRICE INDEX
[Exhibit A:
Dollars
$283,790
Standard & Poor's 500
Composite Stock Price
Index*
$167,504
Dreyfus Premier
Aggressive Growth
Fund (Class A Shares)
(Years shown above are as of September 30th)
*Source: Lipper Analytical Services, Inc.]
Average Annual Total Returns
Class A Shares Class B Shares
_______________________________________________________ _______________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 9/30/97 Sales Charge Sales Charge (5.75%) Period Ended 9/30/97 Redemption Redemption*
____________________ ______________ _________________ ____________________ ___________ _________________
<S> <C> <C> <C> <C> <C>
1 Year 7.63% 1.46% 1 Year 6.86% 2.86%
5 Years 5.57 4.34 From Inception (1/3/96) 3.44 1.18
10 Years 5.86 5.24
From Inception (6/23/69) 10.71 10.48
Class C Shares Class R Shares
_______________________________________________________ _______________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 9/30/97 Redemption Redemption** Period Ended 9/30/97
____________________ ______________ _________________ ____________________
1 Year 6.27% 5.27% 1 Year 7.95%
From Inception (1/3/96) 3.52 3.52 From Inception (1/3/96) 4.50
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Dreyfus Premier Aggressive Growth Fund on 6/23/69 (Inception Date) to a
$10,000 investment made in the Standard and Poor's 500 Composite Stock Price
Index on that date. For comparative purposes, the value of the Index on
6/30/69 is used as the beginning value on 6/23/69. All dividends and capital
gain distributions are reinvested. Performance for Class B, Class C, and
Class R shares will vary from the performance of Class A shares shown above
due to differences in charges and expenses.
The Fund's performance shown in the line graph takes into account the maximum
initial sales charge on Class A shares and all other applicable fees and
expenses. The Standard and Poor's 500 Composite Stock Price Index is a
widely accepted, unmanaged index of overall stock market performance, which
does not take into account charges, fees and other expenses. Further
information relating to Fund performance, including expense reimbursements,
if applicable, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1997
Common Stocks-101.6% Shares Value
_____________ _____________
<S> <C> <C> <C>
Commercial Services-4.5% Four Media........................... 605,000 (a,b) $ 4,840,000
Mer Telemanagement Solutions......... 200,000 (a) 1,475,000
Quintel Entertainment................ 810,000 (a) 9,315,000
Wiztec Solutions..................... 250,000 (a) 2,812,500
_____________
18,442,500
_____________
Consumer Non-durables-3.3% Famous Dave's of America............. 380,000 (a) 7,220,000
Ultrafem............................. 700,000 (a,b) 6,212,500
_____________
13,432,500
_____________
Consumer Services-6.3% Alma International................... 170,000 (a) 47,814
Cinar Films, Cl. B................... 400,000 (a) 15,250,000
Home Security International.......... 230,000 (a) 3,105,000
Network Event Theater................ 330,000 (a) 2,041,875
Sun International Hotels............. 147,700 (a) 5,095,650
_____________
25,540,339
_____________
Electronic Technology-14.7% Advanced Photonix, Cl. A............. 975,000 (a,b) 1,828,125
FieldWorks........................... 400,000 (a) 2,750,000
Gilat Satellite Networks............. 100,000 (a) 3,689,063
Imaging Technologies................. 650,000 (a,b) 4,225,000
Intel................................ 100,000 9,231,250
Larson Davis......................... 675,000 (a,b) 5,273,437
MRV Communications................... 325,000 (a) 11,862,500
Nexar Technologies................... 250,000 (a) 1,312,500
Sheldahl............................. 585,000 (a,b) 12,577,500
Ultralife Batteries.................. 390,000 (a) 6,971,250
_____________
59,720,625
_____________
Energy Minerals-3.0% TransMontaigne Oil................... 579,000 (a) 10,711,500
U.S. Energy Corporation of Wyoming... 100,000 (a) 1,250,000
_____________
11,961,500
_____________
Finance-1.5% Hooper Holmes........................ 310,000 3,778,125
Preferred Employers Holdings......... 237,400 (a,b) 2,374,000
_____________
6,152,125
_____________
Health Services-8.7% Complete Management.................. 960,000 (a,b) 18,180,000
Comprehensive Care................... 132,560 (a) 1,458,160
Core................................. 250,000 (a) 2,750,000
HemaCare............................. 600,000 (a,b) 600,000
Northstar Health Services............ 460,000 (a,b) 1,150,000
OMEGA Health Systems................. 360,000 (a) 3,105,000
OnGard Systems....................... 570,000 (a,b) 356,250
OncorMed............................. 770,000 (a,b) 5,775,000
Pace Health Management Systems....... 200,000 (a) 350,000
Patient Infosystems.................. 370,000 (a) 1,572,500
_____________
35,296,910
_____________
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997
Common Stocks (continued) Shares Value
_____________ _____________
Health Technology- 23.2% Atlantic Pharmaceuticals 30,000 (a) $ 240,000
Atlantic Pharmaceuticals............. 110,000 (a,c) 748,000
Bentley Pharmaceuticals.............. 150,000 (a) 450,000
Biovail.............................. 295,000 (a) 8,573,437
Boston Life Sciences................. 200,000 (a) 1,437,500
Cytogen.............................. 983 (a) 3,871
Fuisz Technologies................... 960,000 (a) 13,560,000
Hemispherx BioPharmaceutical......... 600,000 (a) 2,775,000
Interneuron Pharmaceuticals.......... 540,000 (a) 6,480,000
MacroChem/Delaware................... 875,000 (a,b) 7,656,250
Microvision.......................... 185,000 (a) 2,613,125
Microvision (Warrants)............... 105,000 (a) 682,500
Mylan Labs........................... 850,000 19,071,875
NeoPharm............................. 440,000 (a,b) 2,200,000
NeoPharm (Warrants).................. 55,000 (a) 103,125
ONCOR................................ 2,430,000 (a,b) 12,150,000
Pacific Pharmaceuticals.............. 400,000 (a) 725,000
ProxyMed............................. 56,200 (a) 590,100
Sepracor............................. 200,000 (a) 6,575,000
Transcend Therapeutics............... 300,000 (a,b) 2,550,000
VIMRx Pharmaceuticals................ 1,900,000 (a) 4,928,125
_____________
94,112,908
_____________
Industrial Services-1.5%A.C.S. Electronics Limited 125,000 (a) 890,625
Commodore Applied Technologies....... 935,000 (a) 5,142,500
_____________
6,033,125
_____________
Oil & Gas Producers-1.8% Nuevo Energy......................... 150,000 (a) 7,181,250
_____________
Process Industries-8.8% Chromatics Color Science............. 720,000 (a,b) 9,090,000
Conservers Corp. of America.......... 335,000 (a) 2,763,750
Crompton & Knowles................... 550,000 14,609,375
Eco Soil Systems..................... 520,000 (a) 3,510,000
Ocal................................. 90,000 (a) 250,312
Stelax Industries.................... 1,680,000 (a,b) 2,284,800
TST/Impreso.......................... 250,000 (a) 3,375,000
_____________
35,883,237
_____________
Technology Services- 16.0% Crystal Systems Solutions............ 560,000 (a,b) 14,980,000
EA Industries........................ 800,000 (a,b) 6,750,000
ImNET Systems........................ 150,000 (a) 4,031,250
Image Guided Technologies............ 280,000 (a,b) 1,225,000
Level 8 Systems...................... 335,000 (a) 7,705,000
McAfee Associates.................... 200,000 (a) 10,600,000
Newcom............................... 350,000 (a) 5,206,250
Newcom (Warrants).................... 100,000 (a) 450,000
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997
Common Stocks (continued) Shares Value
_____________ _____________
Technology Services (continued) Smallworldwide, A.D.S 310,000 (a,b) $ 6,355,000
Triteal.............................. 900,000 (a,b) 7,537,500
_____________
64,840,000
_____________
Utilities-.8% Amnex................................ 800,000 (a) 1,850,000
Intellicell.......................... 205,000 (a) 1,537,500
_____________
3,387,500
_____________
Foreign-7.5% Image Processing Systems............. 850,000 (a) 1,384,565
Teva Pharmaceutical Industries, A.D.R 520,000 28,990,000
_____________
30,374,565
_____________
TOTAL COMMON STOCKS
(cost $350,201,145)................ $412,359,084
=============
Convertible Preferred Stocks-.0%
Health Technology; Fresenius Medical, Cl. D
(cost $27,904)..................... 149,700 (a)$ 8,233
=============
Principal
Short-Term Investments-3.1% Amount
_____________
U.S. Treasury Bills: 4.88%, 11/28/97...................... $ 2,946,000 $ 2,922,609
4.86%, 12/11/97...................... 1,002,000 992,321
4.90%, 12/26/97...................... 8,779,000 8,675,671
_____________
TOTAL SHORT-TERM INVESTMENTS
(cost $12,591,268)................. $ 12,590,601
=============
TOTAL INVESTMENTS (cost $362,820,317)..................................... 104.7% $424,957,918
======= ==============
LIABILITIES, LESS CASH AND RECEIVABLES.................................... (4.7%) $ (19,065,007)
======= ==============
NET ASSETS................................................................ 100.0% $405,892,911
======= ==============
Notes to Statement of Investments:
(a) Non-income producing.
(b) Investment in non-controlled affiliates (cost $128,452,874)-see Note
1(d).
(c) Security restricted as to public resale. Investment in restricted
security, with an aggregate value of $748,000, represents approximately
.18% 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 .18% 85%
of 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 SEPTEMBER 30, 1997
Cost Value
______________ ____________
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $362,820,317 $424,957,918
Cash....................................... 1,554,558
Dividends receivable....................... 34,000
Receivable for investment securities sold.. 17,187
Receivable for shares of Common Stock subscribed 5,000
Prepaid expenses and other assets.......... 22,727
_____________
426,591,390
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 261,901
Due to Distributor......................... 85,417
Payable for investment securities purchased 11,059,667
Payable for shares of Common Stock redeemed 9,083,383
Loan commitment fees payable-Note 2........ 14,375
Accrued expenses and other liabilities..... 193,736
_____________
20,698,479
_____________
NET ASSETS.................................................................. $405,892,911
=============
REPRESENTED BY: Paid-in capital............................ $353,708,577
Accumulated investment (loss).............. (6,087,354)
Accumulated net realized gain (loss) on investments (3,865,913)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4....................... 62,137,601
_____________
NET ASSETS.................................................................. $405,892,911
=============
NET ASSET VALUE PER SHARE
__________________________________________________________
Class A Class B Class C Class R
______________ ______________ _____________ _____________
Net Assets................................. $405,599,438 $276,144 $1,973 $15,356
Shares Outstanding......................... 25,438,997 17,549 125.20 958.45
NET ASSET VALUE PER SHARE.................. $15.94 $15.74 $15.76 $16.02
======= ======= ======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1997
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $41,286 foreign taxes
withheld at source).................... $ 798,236
Interest................................... 145,748
____________
Total Income......................... $ 943,984
EXPENSES: Management fee-Note 3(a)................... 3,168,792
Interest expense-Note 2.................... 1,924,010
Shareholder servicing costs-Note 3(c)...... 1,555,587
Professional fees.......................... 104,617
Directors' fees and expenses-Note 3(d)..... 67,289
Loan commitment fees-Note 2................ 58,000
Prospectus and shareholders' reports....... 53,432
Custodian fees-Note 3(c)................... 51,291
Distribution fees-Note 3(b)................ 2,108
Miscellaneous.............................. 46,212
____________
Total Expenses....................... 7,031,338
____________
INVESTMENT (LOSS)........................................................... (6,087,354)
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments:
Unaffiliated issuers................... $12,276,832
Affiliated issuers..................... (6,723,337) 5,553,495
____________
Net unrealized appreciation (depreciation)
on investments:
Unaffiliated issuers................... 19,724,215
Affiliated issuers..................... 7,264,675 26,988,890
____________ ____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 32,542,385
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $26,455,031
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
September 30, 1997 September 30, 1996
__________________ __________________
<S> <C> <C>
OPERATIONS:
Investment (loss)................................................... $ (6,087,354) $ (3,488,652)
Net realized gain (loss) on investments............................. 5,553,495 (9,627,390)
Net unrealized appreciation (depreciation) on investments........... 26,988,890 10,612,018
______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations. 26,455,031 (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.................................................... 261,013,384 119,742,311
Class B shares.................................................... 160,108 13,886
Class C shares.................................................... 55,481 2,731
Class R shares.................................................... 8,115 5,239
Dividends reinvested:
Class A shares.................................................... ---- 42,442,019
Cost of shares redeemed:
Class A shares.................................................... (392,860,490) (203,500,906)
Class B shares.................................................... (257,314) ----
Class C shares.................................................... (70,507) ----
Class R shares.................................................... (14,074) ----
Net assets received in connection with reorganization-Note 1........ 30,745,645 ----
______________ ______________
Increase (Decrease) in Net Assets from Capital Stock Transactions (101,219,652) (41,294,720)
______________ ______________
Total Increase (Decrease) in Net Assets....................... (74,764,621) (91,419,937)
NET ASSETS:
Beginning of Period................................................. 480,657,532 572,077,469
______________ ______________
End of Period....................................................... $ 405,892,911 $ 480,657,532
============== ==============
Investment (loss)..................................................... $ (6,087,354) ----
______________ ______________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
______________________________________
Year Ended Year Ended
September 30, 1997 September 30, 1996
__________________ __________________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold....................................................... 17,802,990 7,915,922
Shares issued in connection with reorganization-Note 1............ 2,158,851 ---
Shares issued for dividends reinvested............................ --- 2,844,638
Shares redeemed................................................... (26,966,317) (13,395,848)
___________ ___________
Net Increase (Decrease) in Shares Outstanding (7,004,476) (2,635,288)
=========== ===========
Class B*
_______
Shares sold....................................................... 11,338 858
Shares issued in connection with reorganization-Note 1............ 24,105 ---
Shares redeemed................................................... (18,752) ---
___________ ___________
Net Increase (Decrease) in Shares Outstanding 16,691 858
=========== ===========
Class C*
_______
Shares sold....................................................... 3,536 98
Shares issued in connection with reorganization-Note 1............ 1,501 ---
Shares redeemed................................................... (5,010) ---
___________ ___________
Net Increase (Decrease) in Shares Outstanding 27 98
=========== ===========
Class R*
----
Shares sold....................................................... 569 350
Shares issued in connection with reorganization-Note 1............ 975 ---
Shares redeemed................................................... (936) ---
___________ ___________
Net Increase (Decrease) in Shares Outstanding 608 350
=========== ===========
* 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
______________________________________________________
Year Ended September 30,
______________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $14.81 $16.31 $15.35 $18.53 $18.11
______ ______ ______ ______ ______
Investment Operations:
Investment income (loss)-net................. (.33) (.12) .40 .40 .21
Net realized and unrealized gain (loss)
on investments............................. 1.46 .01 1.23 (.56) 1.82
______ ______ ______ ______ ______
Total from Investment Operations............. 1.13 (.11) 1.63 (.16) 2.03
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net......... .- (.28) (.44) (.80) (.24)
Dividends from net realized gain on investments .- (1.11) (.23) (2.22) (1.37)
______ ______ ______ ______ ______
Total Distributions.......................... .- (1.39) (.67) (3.02) (1.61)
______ ______ ______ ______ ______
Net asset value, end of period............... $15.94 $14.81 $16.31 $15.35 $18.53
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (1)...................... 7.63% (.71%) 11.21% (1.50%) 12.04%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 1.20% 1.11% 1.03% 1.03% 1.02%
Ratio of interest expense, loan commitment fees and
dividends on securities sold short to average net assets .47% .39% .08% .09% .04%
Ratio of net investment income (loss)
to average net assets...................... (1.44%) (.66%) 2.55% 2.10% 1.24%
Portfolio Turnover Rate...................... 76.28% 131.43% 298.60% 158.05% 102.23%
Average commission rate paid (2)............. $.0531 $.0961 .- .- .-
Net Assets, end of period (000's Omitted).... $405,599 $480,638 $572,077 $570,360 $596,369
(1) Exclusive of sales load.
(2) 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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
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
__________________________
Year Ended September 30,
__________________________
PER SHARE DATA: 1997 1996(1)
______ ______
<S> <C> <C>
Net asset value, beginning of period.................................... $14.73 $14.84
______ ______
Investment Operations:
Investment (loss)....................................................... (.22) (.10)
Net realized and unrealized gain (loss)
on investments........................................................ 1.23 (.01)
______ ______
Total from Investment Operations........................................ 1.01 (.11)
______ ______
Net asset value, end of period.......................................... $15.74 $14.73
====== ======
TOTAL INVESTMENT RETURN(2).................................................. 6.86% (.74%)(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets....................... 1.95% 1.47%(3)
Ratio of interest expense and loan commitment
fees to average net assets............................................ .43% .49%(3)
Ratio of investment (loss)
to average net assets................................................. (2.22%) (1.40%)(3)
Portfolio Turnover Rate................................................. 76.28% 131.43%
Average commission rate paid (4)........................................ $.0531 $.0961
Net Assets, end of period (000's Omitted)............................... $276 $13
(1) From January 3, 1996 (commencement of initial offering) 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.
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
__________________________
Year Ended September 30,
__________________________
PER SHARE DATA: 1997 1996(1)
______ ______
Net asset value, beginning of period.................................... $14.83 $14.84
______ ______
Investment Operations:
Investment (loss)....................................................... (.37)(2) (.24)(2)
Net realized and unrealized gain (loss)
on investments........................................................ 1.30 .23
______ ______
Total from Investment Operations........................................ .93 (.01)
______ ______
Net asset value, end of period.......................................... $15.76 $14.83
====== ======
TOTAL INVESTMENT RETURN(3).................................................. 6.27% (.07%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets....................... 1.99% 1.42%(4)
Ratio of interest expense and loan commitment
fees to average net assets............................................ .53% .47%(4)
Ratio of investment (loss)
to average net assets................................................. (2.37%) (1.32%)(4)
Portfolio Turnover Rate................................................. 76.28% 131.43%
Average commission rate paid (5)........................................ $.0531 $.0961
Net Assets, end of period (000's Omitted)............................... $2 $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
__________________________
Year Ended September 30,
__________________________
PER SHARE DATA: 1997 1996(1)
______ ______
Net asset value, beginning of period.................................... $14.84 $14.84
______ ______
Investment Operations:
Investment (loss)....................................................... (.10) (.02)
Net realized and unrealized gain (loss)
on investments........................................................ 1.28 .02
______ ______
Total from Investment Operations........................................ 1.18 .-
______ ______
Net asset value, end of period.......................................... $16.02 $14.84
====== ======
TOTAL INVESTMENT RETURN..................................................... 7.95% .-
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets....................... .76% .73%(2)
Ratio of interest expense and loan commitment
fees to average net assets............................................ .30% .35%(2)
Ratio of investment (loss)
to average net assets................................................. (.90%) (.56%)(2)
Portfolio Turnover Rate................................................. 76.28% 131.43%
Average commission rate paid (3)........................................ $.0531 $.0961
Net Assets, end of period (000's Omitted)............................... $15 $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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
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 Funds, Inc. to
Dreyfus Premier Equity Funds, 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 $30,745,645
(including $9,350,340 net unrealized depreciation on investments), 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 ("CDSC") imposed on Class B share
redemptions made within six years of purchase, Class C shares are subject to
a CDSC imposed on Class C shares redeemed within one year of purchase 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 (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, and the difference
between the amounts of dividends, interest and foreign withholding taxes
recorded on the Fund's books and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains and losses
arise from changes in the value of assets and liabilities other than investmen
ts 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 September 30,
1997.
<TABLE>
<CAPTION>
Shares
__________________________________________________________
Beginning Purchases/ Sales/ End of Dividend Market Value
Name of issuer of Period Increases Decreases Period Income 9/30/97
_____________ ___________ ___________ ____________ ______________ _____________ _______________
<S> <C> <C> <C> <C> <C> <C>
Advanced Photonix, Cl. A...... 515,000 460,000 --- 975,000 --- $ 1,828,125
Amnex*........................ 800,000 590,000 590,000 800,000 --- 1,850,000
Chromatics Color Science...... 155,000 565,000 --- 720,000 --- 9,090,000
Cinar Films, Cl. B*........... 508,181 76,819 185,000 400,000 --- 15,250,000
Complete Management........... 450,000 510,000 --- 960,000 --- 18,180,000
Correctional Services Corp.... 275,000 --- 275,000 --- --- ---
Crystal Systems Solutions..... --- 650,000 90,000 560,000 --- 14,980,000
EA Industries................. --- 800,000 --- 800,000 --- 6,750,000
Four Media.................... --- 630,000 25,000 605,000 --- 4,840,000
Fuisz Technologies*........... 1,260,000 270,000 570,000 960,000 --- 13,560,000
HemaCare...................... --- 600,000 --- 600,000 --- 600,000
Image Guided Technologies..... --- 280,000 --- 280,000 --- 1,225,000
Imaging Technologies.......... --- 650,000 --- 650,000 --- 4,225,000
Larson Davis.................. --- 675,000 --- 675,000 --- 5,273,437
Level 8 Systems*.............. --- 335,000 --- 335,000 --- 7,705,000
MacroChem/Delaware............ 662,500 212,500 --- 875,000 --- 7,656,250
Mercury Interactive........... 795,000 110,000 905,000 --- --- ---
Motorcar Parts & Accessories.. 250,000 100,000 350,000 --- --- ---
NeoPharm...................... 200,000 290,000 50,000 440,000 --- 2,200,000
Northstar Health Services..... 235,000 225,000 --- 460,000 --- 1,150,000
OMEGA Health Systems*......... 269,500 90,500 --- 360,000 --- 3,105,000
ONCOR......................... 800,000 1,630,000 --- 2,430,000 --- 12,150,000
OnGard Systems................ 280,000 290,000 --- 570,000 --- 356,250
OncorMed...................... 364,000 406,000 --- 770,000 --- 5,775,000
Personal Computer Products.... 975,000 1,631,000 2,606,000 --- --- ---
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Shares
__________________________________________________________
Beginning Purchases/ Sales/ End of Dividend Market Value
Name of issuer of Period Increases Decreases Period Income 9/30/97
_____________ ___________ ___________ ____________ ______________ _____________ _______________
Preferred Employers Holdings.. --- 237,400 --- 237,400 --- $ 2,374,000
Sheldahl...................... --- 585,000 --- 585,000 --- 12,577,500
Transcend Therapeutics........ --- 300,000 --- 300,000 --- 2,550,000
Stelax Industries............. --- 1,680,000 --- 1,680,000 --- 2,284,800
Smallworldwide, A.D.S......... --- 330,000 20,000 310,000 --- 6,355,000
Triteal....................... 350,000 550,000 --- 900,000 --- 7,537,500
Ultrafem...................... 110,000 590,000 --- 700,000 --- 6,212,500
Vista 2000.................... 550,000 240,000 790,000 --- --- ---
* No longer an affiliated issuer at September 30, 1997.
</TABLE>
(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 $3,603,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1997. 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. At September 30, 1997, there were no
outstanding borrowings under either line of credit.
The average daily amount of borrowings outstanding under both agreements
during the period ended September 30, 1997 was approximately $29,705,000,
with a related weighted average annualized interest rate of 6.48%. The
maximum amount borrowed at any time during the period ended September 30,
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
Q
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 September 30, 1997.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $27,347 during the period ended September 30, 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. During the period ended September
30, 1997, $1,876 was charged to the Fund for the Class B shares and $232 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 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 September 30,
1997, Class A, Class B and Class C shares were charged $1,055,538, $626 and
$77, 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. During the
period ended September 30, 1997, the Fund was charged $348,411 pursuant to
the transfer agency agreement.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended September 30, 1997,
the Fund was charged $51,291 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 September 30, 1997,
amounted to $342,508,618 and $526,436,875, respectively.
At September 30, 1997, accumulated net unrealized appreciation on
investments was $62,137,601, consisting of $104,728,758 gross unrealized
appreciation and $42,591,157 gross unrealized depreciation.
At September 30, 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 PREMIER AGGRESSIVE GROWTH FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Premier Aggressive Growth Fund
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier Aggressive Growth
Fund (one of the Funds constituting Dreyfus Premier Equity Funds, Inc.), as
of September 30, 1997, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years
in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of
September 30, 1997 and confirmation of securities not held by the custodian
by correspondence with others. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Premier Aggressive Growth Fund at September 30, 1997, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[ERNST & YOUNG LLP signature logo]
New York, New York
November 13, 1997
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. 009AR979
Annual Report
Dreyfus Premier
Aggressive
Growth Fund
September 30, 1997
Registration Mark
DREYFUS PREMIER GROWTH AND INCOME FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure for me to introduce the new manager of Dreyfus Premier
Growth and Income Fund, Douglas D. Ramos, who took over the Fund's management
in July. As he explains in the following letter, Doug has begun making some
adjustments to the Fund's investments.
Before coming to Dreyfus, Doug served 12 years at Loomis, Sayles & Co. in
Pasadena, where he managed $1.9 billion in equity assets, including the
equity portions of balanced funds, and set allocation policy for one of their
major funds. Earlier Doug was a portfolio manager and analyst at Lloyd's
Bank. He began his career with Manufacturers Hanover Trust as an analyst,
after graduating from the University of Rhode Island. He is a Chartered
Financial Analyst (CFA) and a Chartered Investment Counselor (CIC).
At Dreyfus, Doug Ramos has been named a senior vice president, senior
equity portfolio manager and head of Growth and Income equities.
We have great confidence in Doug's ability to pursue rewarding returns
for your investment in Dreyfus Premier Growth and Income Fund.
Sincerely,
[Stephen E. Canter signature logo]
Stephen E. Canter
Chief Investment Officer
DREYFUS PREMIER GROWTH AND INCOME FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
This is my first letter to you as manager of the Dreyfus Premier Growth
and Income Fund. As mentioned in the introductory letter from Stephen Canter,
I assumed management of the Fund in mid-July. It is a pleasure to report that
the Fund's total return is now solidly in positive territory. We are making
some changes in portfolio strategy that are intended to continue the
performance improvement in the foreseeable future.
Total returns for the various share classes during the fiscal year ended
September 30, 1997, are shown in the following table:
<TABLE>
<CAPTION>
Total Return*
------------
<S> <C>
Class A shares 20.90%
Class B shares 20.08%
Class C shares 19.89%
Class R shares 22.25%
</TABLE>
During this time, the Standard & Poor's 500 Composite Stock Price Index
produced a total return of 40.43%.**
Economic Review
A major surprise this year has been that the rate of inflation has
continued to moderate. This has occurred despite a tightening labor market
and consecutive quarters of strong economic growth. Moveover, overall
corporate profits have continued to surprise on the up side. Slowing
inflation has kept short-term interest rates steady and it has pulled
long-term interest rates lower in recent months. Although the Federal Reserve
Board ("the Fed") has held a bias toward tightening for more than a year,
slowing inflation has kept the Fed in a "wait and see" mode since it last
raised short-term rates in March.
Virtually all measures of price inflation-consumer prices, producer
prices and industrial commodity prices-have been subdued this year. Factors
suppressing inflation have been the strong dollar that has reduced prices in
import-competing industries, lower oil prices and economic problems overseas.
Additionally, the down trend in health care inflation has continued to help
pull core inflation lower. Yet the labor market remains quite tight: the
unemployment rate has held below 5% since the spring, and wage inflation in
some sectors has been steadily accelerating.
The economy has grown by a nearly 4% rate since the summer of 1996.
Consumer spending has been strong, fueled by rising real incomes and reduced
job insecurity. A broad-based rebound in capital spending has developed this
year following a brief slowdown over the winter. Exports have been rising at
double-digit rates. Even housing activity has remained at high levels,
although this sector has not shown further strengthening. The strength in
domestic demand has fueled rapid import growth that, in turn, should help
mitigate some of the economic weakness overseas. Corporate profits have
continued to trend higher in this setting.
In effect, lower inflation with no change in the Federal Funds rate
policy implies a higher real Fed Funds rate, after adjusting for price
changes. That acts as a light brake on inflation. Whether stronger brake
pressure will be required is not yet determined by the monetary authorities.
Market Overview
Through thick and thin, the equity markets continued advancing for the
12-month period that ended September 30. The upward path was not a straight
line. There was a major interruption in March, when the Federal Reserve
raised short-
term interest rates as a precautionary step. Another retreat occurred in
August, when a few corporations signaled disappointing profits and fears of
inflation were briefly renewed. On balance, however, the fiscal year ended
with stock price barometers considerably higher than a year earlier.
Without counting income, the Dow Jones Industrial Average gained 35.1%
for the year ended September 30, the Standard & Poor's 500 rose 37.8%, the
Nasdaq Composite 37.4% and the Russell 2000 index of small cap stocks
advanced by 31.42%.
Early in the 12-month period, the large capitalization stocks led the
parade. However, as the months went by and stocks continued climbing,
investors began to question the high price/earnings multiples of many of the
largest corporations. During the summer, small cap issues-long out of
favor-started to pick up strength. As the autumn season began, small caps
were the stocks of choice for many investors.
The economic background for the equity markets remained favorable for
virtually the entire period under review. Many commentators described it as a
"Goldilocks economy"-not too hot and not too cold. Even corporate profits, in
spite of the extremely competitive environment, were on balance a plus
factor.
To be sure, volatility was an outstanding characteristic of the markets
during this period. Swings of 1% or more in major stock averages during a
single day were not uncommon. However, on balance, upside volatility
prevailed over downside volatility during the year.
One factor in the equation was the new tax law passed by Congress during
the summer, which cut capital gains taxes for assets held more than 18
months. This may have contributed to some selling in August and September.
Yet, as the market averages show, there apparently was enough strength in the
market to more than offset the selling.
At today's high price levels, unexpected developments can bring sharp
reactions. For the future, much depends on whether the economy can maintain
its "Goldilocks" condition, and not bring on another dose of anti-inflation
actions from the monetary authorities.
Portfolio Focus
In recent months, we have been shifting the portfolio strategy to
emphasize a disciplined low P/E approach to common stock investments. We
consider this to be a more conservative posture for the current volatile
market environment. During August and September, the first two full months in
which the new emphasis was in place, the Fund's portfolio outperformed both
the Standard & Poor's 500 Stock Index and the average for the Growth and
Income Fund category in the fund rankings published by Lipper Analytical
Services, Inc.
The make-up of the portfolio as of September 30, 1997 showed a number of
significant changes compared to holdings six months ago at the time of the
last semi-annual report, March 31, 1997. For example, we reduced holdings in
health care and transportation. At the same time, we increased the percentage
of the portfolio in financials and technology. Overall, there has been more
emphasis on value stocks and less on issues held primarily for income.
During the past year, holdings that detracted from total performance
included the French company, Groupe AB, A.D.S.; Viatel; Mesa Air Group and
Micron Technology. Issues that strengthened performance included Corporate
Express, Santa Fe International, Louisiana Land Exploration, Westinghouse
Electric and Pennzoil.
The equity market at this writing does not appear to be cheap on a
fundamental basis. However, good value can still be found issue-by-issue.
Stock selection is the key-a process that will continue to have our full
attention in the months to come.
Sincerely,
[Douglas D. Ramos signature logo]
Douglas D. Ramos
Portfolio Manager
October 20, 1997
New York, N.Y.
* 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 AND INCOME FUND SEPTEMBER 30, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER GROWTH
AND INCOME FUND
CLASS A SHARES, CLASS B SHARES, CLASS C SHARES AND CLASS R SHARES
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A:
$18,139
Dreyfus Premier Growth
and Income Fund
(Class R Shares)
Dollars
$17,657
Dreyfus Premier Growth
and Income Fund
(Class C Shares)
$17,270
Dreyfus Premier Growth
and Income Fund
(Class B Shares)
$16,895
Dreyfus Premier Growth
and Income Fund
(Class A Shares)
$15,937
Standard & Poor's 500
Composite Stock
Price Index*
*Source: Lipper Analytical Services, Inc.]
Average Annual Total Returns
Class A Shares Class B Shares
- ------------------------------------------------------------ ------------------------------------------------------------
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 9/30/97 Sales Charge Sales Charge (5.75%) Period Ended 9/30/97 Redemption Redemption*
- -------------------- ---------------- -------------------- -------------------- ------------- --------------------
<S> <C> <C> <C> <C> <C>
1 Year 20.90% 13.98% 1 Year 20.08% 16.08%
From Inception (12/29/95) 39.31 34.71 From Inception (12/29/95) 38.19 36.40
Class C Shares Class R Shares
- ------------------------------------------------------------ ------------------------------------------------------------
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 9/30/97 Redemption Redemption** Period Ended 9/30/97
- ------------------- --------------- ---------------- -------------------
1 Year 19.89% 18.89% 1 Year 22.25%
From Inception (12/29/95) 38.13 38.13 From Inception (12/29/95) 40.26
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Class A,
Class B, Class C and Class R shares of Dreyfus Premier Growth and Income Fund
on 12/29/95 (Inception Date) to a $10,000 investment made in the Standard &
Poor's 500 Composite Stock Price Index on that date. All dividends and
capital gain distributions are reinvested.
The Fund's performance shown in the line graph takes into account the maximum
initial sales charge on Class A shares, the maximum contingent deferred sales
charge on Class B and Class C shares and all other applicable fees and
expenses on all classes. The Standard & Poor's 500 Composite Stock Price
Index is a widely accepted, unmanaged index of overall stock market
performance, which does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including
expense reimbursements, if applicable, is contained in the Financial
Highlights section of the Prospectus and elsewhere in this report.
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
DREYFUS PREMIER GROWTH AND INCOME FUND
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1997
Common Stocks-95.4% Shares Value
------- -------
<S> <C> <C> <C>
Consumer Durables-2.3% Leggett & Platt............................. 59,000 $ 2,629,188
-------
Consumer Non Durables-5.5% Kimberly-Clark.............................. 41,000 2,006,438
Philip Morris Cos........................... 47,000 (a) 1,953,437
Warnaco Group, Cl. A........................ 79,000 2,508,250
-------
6,468,125
-------
Consumer Services-3.9% Carnival, Cl. A............................. 53,000 2,451,250
Groupe AB, A.D.S............................ 125,000 (a) 1,046,875
Tele-Communications International, Cl. A ... 65,000 (a) 1,064,375
-------
4,562,500
-------
Electronic Technology-14.9% Adaptec..................................... 20,000 (a) 935,000
Boeing...................................... 47,000 2,558,562
EMC......................................... 31,000 (a) 1,809,625
General Motors, Cl. H....................... 30,000 1,989,375
Intel....................................... 23,000 2,123,187
Lockheed Martin............................. 25,000 2,665,625
Micron Technology........................... 58,000 2,011,875
3COM........................................ 25,000 1,281,250
United Technologies......................... 26,000 2,106,000
-------
17,480,499
-------
Energy Minerals-6.7% Exxon....................................... 30,000 (a) 1,921,875
Pennzoil.................................... 30,000 (a) 2,390,625
Santa Fe International...................... 75,800 (a) 3,524,700
-------
7,837,200
-------
Finance-19.9% BankBoston.................................. 30,000 2,653,125
Chase Manhattan............................. 20,000 2,360,000
Equity Office Properties Trust.............. 43,400 1,472,888
Fannie Mae.................................. 40,000 1,880,000
First Union................................. 35,500 1,777,219
Fleet Financial Group....................... 39,000 2,556,937
Freddie Mac................................. 52,000 1,833,000
Money Store................................. 50,000 1,425,000
Rouse....................................... 75,000 2,325,000
Standard & Poor's Depositary Receipts....... 32,500 3,071,250
Standard & Poor's MidCap Depositary Receipts 30,000 1,935,000
-------
23,289,419
-------
Health Services-4.6% Beverly Enterprises......................... 104,100 (a) 1,808,738
IDX Systems................................. 45,000 (a) 1,555,313
PacifiCare Health Systems, Cl. B............ 30,300 (a) 2,064,188
-------
5,428,239
-------
Health Technology-2.0% Biogen...................................... 72,000 (a) 2,335,500
-------
Non-Energy Minerals-4.1% Edperbrascan, Cl. A......................... 112,500 1,954,687
Georgia-Pacific............................. 15,000 (a) 1,565,625
ISPAT International......................... 45,700 1,308,162
-------
4,828,474
-------
DREYFUS PREMIER GROWTH AND INCOME FUND
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1997
Common Stocks (continued) Shares Value
------- -------
Process Industries-8.1% Archer-Daniels-Midland...................... 105,000 $ 2,513,437
duPont (E.I.) de Nemours.................... 31,000 1,908,437
Great Lakes Chemical........................ 49,000 2,416,312
Westinghouse Electric....................... 100,000 2,706,250
-------
9,544,436
-------
Producer Manufacturing-12.1% AlliedSignal................................ 60,000 2,550,000
Armstrong World Industries.................. 36,000 2,414,250
Corporate Express........................... 50,000 (a) 1,056,250
Ingersoll-Rand.............................. 37,500 1,614,844
Masco....................................... 3,100 142,019
Thermo Electron............................. 50,000 2,000,000
Tyco International.......................... 27,000 2,215,688
Xerox....................................... 26,000 2,188,875
-------
14,181,926
-------
Retail Trade-2.1% General Nutrition........................... 86,000 (a) 2,504,750
-------
Transportation-.3% Hertz, Cl. A................................ 9,400 354,263
-------
Utilities-8.9% Duke Energy................................. 60,000 2,966,250
GTE......................................... 60,000 2,722,500
UGI......................................... 120,000 3,315,000
Viatel...................................... 300,000 (a) 1,387,500
-------
10,391,250
-------
TOTAL COMMON STOCKS
(cost $102,767,618)....................... $111,835,769
=======
Principal
Convertible Corporate Notes & Bonds-1.3% Amount
-------
Financial: Xerox Credit, Sub. Notes,
2.875%, 7/1/2002
(cost $1,500,525)......................... $ 1,500,000 $ 1,554,375
=======
Short-Term Investments-2.1%
U.S. Treasury Bills: 5.14%, 12/4/1997............................ $ 636,000 $ 630,454
4.90%, 12/26/1997........................... 1,792,000 1,770,908
-------
TOTAL SHORT-TERM INVESTMENTS
(cost $2,402,232)......................... $ 2,401,362
=======
TOTAL INVESTMENTS (cost $106,670,375)............................................ 98.8% $115,791,506
==== =======
CASH AND RECEIVABLES (NET)....................................................... 1.2% $ 1,446,797
==== =======
NET ASSETS....................................................................... 100.0% $117,238,303
==== =======
Notes to Statement of Investments:
(a) Non-income producing.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER GROWTH AND INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1997
Cost Value
-------- --------
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $106,670,375 $115,791,506
Receivable for investment securities sold....... 3,958,635
Receivable for shares of Common Stock subscribed 208,959
Dividends and interest receivable............... 178,383
Prepaid expenses................................ 49,916
--------
120,187,399
--------
LIABILITIES: Due to The Dreyfus Corporation and affiliates... 80,850
Due to Distributor.............................. 69,348
Cash overdraft due to Custodian................. 317,524
Payable for investment securities purchased..... 2,405,041
Payable for shares of Common Stock redeemed..... 28,840
Accrued expenses................................ 47,493
--------
2,949,096
--------
NET ASSETS....................................................................... $117,238,303
========
REPRESENTED BY: Paid-in capital................................. $ 98,227,899
Accumulated distributions in
excess of investment income-net......... (23,584)
Accumulated net realized gain (loss) on investments 9,912,857
Accumulated net unrealized appreciation (depreciation)
.................... on investments-Note 4(b) 9,121,131
--------
NET ASSETS....................................................................... $117,238,303
========
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
--------------------------------
Class A Class B Class C Class R
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Assets................................. $42,308,895 $69,330,232 $5,340,082 $259,094
Shares Outstanding......................... 2,020,008 3,324,743 255,913 12,275
NET ASSET VALUE PER SHARE.................. $20.94 $20.85 $20.87 $21.11
==== ==== ==== ====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER GROWTH AND INCOME FUND
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1997
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Interest................................... $ 1,280,775
Cash dividends (net of $8,959 foreign taxes
withheld at source).................... 1,181,870
-------
Total Income......................... $ 2,462,645
EXPENSES: Management fee-Note 3(a)................... 736,630
Distribution fees-Note 3(b)................ 448,658
Shareholder servicing costs-Note 3(c)...... 371,450
Registration fees.......................... 131,065
Professional fees.......................... 26,815
Custodian fees-Note 3(c)................... 25,106
Directors' fees and expenses-Note 3(d)..... 24,827
Prospectus and shareholders' reports....... 10,518
Loan commitment fees-Note 2................ 1,097
Miscellaneous.............................. 5,074
-------
Total Expenses....................... 1,781,240
Less-reduction in management fee due to
undertaking-Note 3(a).................. (104,847)
-------
Net Expenses......................... 1,676,393
-------
INVESTMENT INCOME-NET....................................................... 786,252
-------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments:
Long transactions...................... $12,358,216
Short sale transactions................ 21,992
Net realized gain (loss) on
forward currency exchange contracts.... (46,904)
-------
Net Realized Gain (Loss)............. 12,333,304
Net unrealized appreciation (depreciation) on investments 6,103,441
-------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 18,436,745
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $19,222,997
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER GROWTH AND INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
September 30, 1997 September 30, 1996*
---------- -----------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 786,252 $ 185,128
Net realized gain (loss) on investments............................. 12,333,304 1,566,861
Net unrealized appreciation (depreciation) on investments........... 6,103,441 3,017,690
-------- -------
Net Increase (Decrease) in Net Assets Resulting from Operations 19,222,997 4,769,679
-------- -------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares.................................................... (489,113) (109,766)
Class B shares.................................................... (312,112) (49,896)
Class C shares.................................................... (28,180) (1,244)
Class R shares.................................................... (3,378) (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............................................... (4,820,091) (162,181)
-------- -------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................... 20,228,297 34,427,601
Class B shares.................................................... 35,546,757 38,453,822
Class C shares.................................................... 4,748,666 3,604,147
Class R shares.................................................... 161,295 664,097
Dividends reinvested:
Class A shares.................................................... 1,937,255 100,028
Class B shares.................................................... 2,129,131 41,499
Class C shares.................................................... 128,219 829
Class R shares.................................................... 14,759 1,275
Cost of shares redeemed:
Class A shares.................................................... (15,559,198) (6,181,710)
Class B shares.................................................... (14,190,548) (2,996,279)
Class C shares.................................................... (2,874,632) (1,311,627)
Class R shares.................................................... (114,833) (730,951)
-------- -------
Increase (Decrease) in Net Assets from Capital Stock Transactions 32,155,168 66,072,731
-------- -------
Total Increase (Decrease) in Net Assets...... 46,558,074 70,680,229
NET ASSETS:
Beginning of Period................................................. 70,680,229 ----
-------- -------
End of Period....................................................... $ 117,238,303 $ 70,680,229
======== =======
Undistributed investment income (distributions in excess of investment income)-net $ (23,584) $ 22,947
-------- -------
*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
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
--------------------------------------------
Year Ended Year Ended
September 30, 1997 September 30, 1996*
-------------------- ---------------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
----
Shares sold....................................................... 1,096,093 1,979,771
Shares issued for dividends reinvested............................ 108,196 5,502
Shares redeemed................................................... (828,597) (340,957)
----- -----
Net Increase (Decrease) in Shares Outstanding 375,692 1,644,316
===== =====
Class B
----
Shares sold....................................................... 1,921,817 2,212,839
Shares issued for dividends reinvested............................ 120,246 2,293
Shares redeemed................................................... (760,602) (171,850)
----- -----
Net Increase (Decrease) in Shares Outstanding 1,281,461 2,043,282
===== =====
Class C
----
Shares sold....................................................... 256,807 216,822
Shares issued for dividends reinvested............................ 7,233 46
Shares redeemed................................................... (151,697) (73,298)
----- -----
Net Increase (Decrease) in Shares Outstanding 112,343 143,570
===== =====
Class R
----
Shares sold....................................................... 8,448 49,451
Shares issued for dividends reinvested............................ 824 74
Shares redeemed................................................... (6,434) (40,088)
----- -----
Net Increase (Decrease) in Shares Outstanding 2,838 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
-------------------------- --------------------------
Year Ended September 30, Year Ended September 30,
-------------------------- --------------------------
PER SHARE DATA: 1997 1996(1) 1997 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................................. .24 .10 .10 .03
Net realized and unrealized gain (loss)
on investments...................................... 3.39 5.94 3.38 5.87
---- ---- ---- ----
Total from Investment Operations...................... 3.63 6.04 3.48 5.90
---- ---- ---- ----
Distributions:
Dividends from investment income-net.................. (.25) (.09) (.11) (.03)
Dividends from net realized gain on investments....... (.89) .- (.89) .-
---- ---- ---- ----
Total Distributions................................... (1.14) (.09) (1.00) (.03)
---- ---- ---- ----
Net asset value, end of period........................ $20.94 $18.45 $20.85 $18.37
==== ==== ==== ====
TOTAL INVESTMENT RETURN (2)............................... 20.90% 48.24%(3) 20.08% 47.14%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... 1.24% .94%(3) 2.00% 1.52%(3)
Ratio of net investment income
to average net assets............................... 1.27% .92%(3) .50% .34%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.................. .11% .30%(3) .11% .30%(3)
Portfolio Turnover Rate............................... 265.33% 205.64%(3) 265.33% 205.64%(3)
Average commission rate paid (4)...................... $.0572 $.0585(5) $.0572 $.0585(5)
Net Assets, end of period (000's Omitted)............. $42,309 $30,330 $69,330 $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.
(5) Restated to reflect current years presentation.
SEE NOTES TO FINANCIAL STATEMENTS.
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
-------------------------- --------------------------
Year Ended September 30, Year Ended September 30,
-------------------------- --------------------------
PER SHARE DATA: 1997 1996(1) 1997 1996(1)
---- ---- ---- ----
Net asset value, beginning of period.................. $18.40 $12.50 $18.42 $12.50
---- ---- ---- ----
Investment Operations:
Investment income-net................................. .09 .03 .20 .43
Net realized and unrealized gain (loss)
on investments...................................... 3.38 5.88 3.67 5.61
---- ---- ---- ----
Total from Investment Operations...................... 3.47 5.91 3.87 6.04
---- ---- ---- ----
Distributions:
Dividends from investment income-net.................. (.11) (.01) (.29) (.12)
Dividends from net realized gain on investments....... (.89) .- (.89) .-
---- ---- ---- ----
Total Distributions................................... (1.00) (.01) (1.18) (.12)
---- ---- ---- ----
Net asset value, end of period........................ $20.87 $18.40 $21.11 $18.42
==== ==== ==== ====
TOTAL INVESTMENT RETURN (2)............................... 19.89% 47.27%(3) 22.25% 48.38%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... 2.00% 1.52%(3) .99% .79%(3)
Ratio of net investment income
to average net assets............................... .52% .30%(3) 1.50% 1.01%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.................. .11% .30%(3) .12% .30%(3)
Portfolio Turnover Rate............................... 265.33% 205.64%(3) 265.33% 205.64%(3)
Average commission rate paid (4)...................... $.0572 $.0585(5) $.0572 $.0585(5)
Net Assets, end of period (000's Omitted)............. $5,340 $2,642 $259 $174
(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.
(5) Restated to reflect current years presentation.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER GROWTH AND INCOME FUND
NOTES TO FINANCIAL STATEMENTS
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 operat
es 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 ("CDSC") imposed on Class B share
redemptions made within six years of purchase, Class C shares are subject to
a CDSC imposed on Class C shares redeemed within one year of purchase 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 and the difference
between the amounts of dividends, interest, and foreign withholding taxes
recorded on the Fund's books and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains or losses
arise from changes in the value of assets and liabilities other than investmen
ts in securities, resulting from changes in exchange rates. Such gains and
losses are included with net realized and unrealized gain or loss on
investments.
DREYFUS PREMIER GROWTH AND INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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) 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-BANK 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 rates in effect at the time of borrowings. For the
period ended September 30, 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 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, interest on borrowings (which, in
the view of Stroock & Stroock & Lavan, counsel to the Fund, also contemplates
commitment fees and 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 $104,847 during the period ended September 30,
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 September 30, 1997, $413,795 was charged to the Fund
for the Class B shares and $34,863 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 Fund 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, 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
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
DREYFUS PREMIER GROWTH AND INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
be paid to Service Agents. During the period ended September 30, 1997, Class
A, Class B and Class C shares were charged $95,472, $137,932 and $11,621,
respectively, pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended September 30, 1997, the Fund was charged $78,542 pursuant to the
transfer agency agreement.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended September 30, 1997,
the Fund was charged $25,106 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
September 30, 1997:
<TABLE>
<CAPTION>
Purchases Sales
--------------- ---------------
<S> <C> <C>
Long transactions....................................... $267,741,208 $235,819,651
Short sale transactions................................. 2,757,372 2,779,364
--------------- ---------------
Total............................................... $270,498,580 $238,599,015
=============== ===============
</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. At September 30, 1997, there were no
securities sold short outstanding.
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. At September 30, 1997, there were no
open forward currency exchange contracts.
(b) At September 30, 1997, accumulated net unrealized appreciation on
investments was $9,121,131, consisting of $11,837,164 gross unrealized
appreciation and $2,716,033 gross unrealized depreciation.
At September 30, 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 PREMIER GROWTH AND INCOME FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Premier Growth and Income Fund
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier Growth and Income
Fund (one of the Funds constituting Dreyfus Premier Equity Funds, Inc.) as of
September 30, 1997, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of
September 30, 1997 and confirmation of securities not held by the custodian
by correspondence with others. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Premier Growth and Income Fund at September 30, 1997, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[ERNST & YOUNG LLP signature logo]
New York, New York
November 13, 1997
DREYFUS PREMIER GROWTH AND INCOME FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
The Fund hereby designates 10.07% of the ordinary dividends paid during
the fiscal year ended September 30, 1997 as qualifying for the corporate
dividends received deduction. Shareholders will receive notification in
January 1998 of the percentage applicable to the preparation of their 1997
income tax return.
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. 320AR979
Annual Report
Dreyfus Premier
Growth and Income
Fund
September 30, 1997
Registration Mark
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER AGGRESSIVE GROWTH FUND CLASS A SHARES
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
STANDARD DREYFUS PREMIER
& POOR'S 500 AGGRESSIVE
PERIOD COMPOSITE STOCK GROWTH FUND
PRICE INDEX * (CLASS A SHARES)
6/23/69 10,000 9,427
9/30/69 9,609 9,487
9/30/70 9,023 8,974
9/30/71 10,882 11,733
9/30/72 12,598 13,714
9/30/73 12,729 12,463
9/30/74 7,772 7,926
9/30/75 10,736 10,764
9/30/76 14,004 13,179
9/30/77 13,436 14,387
9/30/78 15,044 17,918
9/30/79 16,938 21,802
9/30/80 20,527 29,643
9/30/81 19,983 26,036
9/30/82 21,964 30,244
9/30/83 31,703 39,903
9/30/84 33,202 42,826
9/30/85 38,016 51,696
9/30/86 50,083 65,796
9/30/87 71,829 94,734
9/30/88 62,929 78,019
9/30/89 83,664 92,962
9/30/90 75,934 86,544
9/30/91 99,541 112,741
9/30/92 110,531 127,718
9/30/93 124,867 143,090
9/30/94 129,462 140,949
9/30/95 167,963 156,747
9/30/96 202,093 155,630
9/30/97 283,790 167,504
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
PREMIER GROWTH AND INCOME FUND CLASS A SHARES, CLASS B
SHARES, CLASS C SHARES AND CLASS R SHARES AND THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
DREYFUS DREYFUS DREYFUS DREYFUS
STANDARD PREMIER PREMIER PREMIER PREMIER
& POOR'S GROWTH GROWTH GROWTH GROWTH
500 AND AND AND AND
COMPOSITE INCOME INCOME INCOME INCOME
STOCK FUND FUND FUND FUND
PERIOD PRICE (CLASS A (CLASS B (CLASS C (CLASS R
INDEX* SHARES) SHARES) SHARES) SHARES)
12/29/9 10,000 9,427 10,000 10,000 10,000
3/31/96 10,537 12,302 13,002 13,008 13,054
6/30/96 11,009 13,582 14,328 14,339 14,422
9/30/96 11,349 13,974 14,714 14,727 14,838
12/31/9 12,295 14,011 14,733 14,725 14,893
3/31/97 12,625 13,984 14,680 14,672 14,995
6/30/97 14,827 15,728 16,482 16,472 16,877
9/30/97 15,937 16,895 17,270 17,657 18,139
*Source: Lipper Analytical Services, Inc.
