DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
Dreyfus Premier Aggressive Growth Fund completed its latest fiscal year
September 30, 1998, on the heels of one of the steepest drops in stock price
averages in many years. Inevitably, this was among the factors affecting the
Fund's performance.
For the 12 months ended September 30, 1998, total return for the various
classes of shares was as follows:*
Dreyfus Premier
Aggressive Growth Fund
____________________
Class A -55.08%
Class B -55.46%
Class C -55.20%
Class R -55.31%
Standard & Poor's 500 Index** 9.08%
As shareholders were informed last spring, I have been managing the Fund since
early April 1998. I took over at a time when small-capitalization stocks, which
were the Fund's principal holdings at that time, had already started to weaken.
Since then, I have changed most of the Fund's holdings, placing emphasis on
mid-cap stocks. However, in the declining market of recent months, the new
holdings have not yet had a chance to show how they might perform in more
favorable market conditions.
ECONOMIC REVIEW
So far in 1998, the main regions of the world have had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board (the "Fed") to contemplate a rise in interest rates
early in the year. The U.S. economy cooled enough that the Fed decided to stand
pat for a number of months before cutting the Federal Funds rate in September
and October. Evidence of economic cooling continued to accumulate, and worries
about the world economy intensified. World economic weakness then shifted
expectations towards monetary easing. After many years of subpar economic
growth, continental Europe moved into a better economic expansion. Unlike the
U.S., Europe has substantial excess capacity of productive plant and labor. In
Asia, weak economies were pervasive as a result of the Asian financial crisis.
The Latin American economies weakened as the financial stresses spread
throughout that region.
A main influence on the U.S. economy this year was the foreign financial
crisis and cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The fall
in inflation helped the consumer sector as more of the growth in consumer income
remained after inflation to buy goods and services. Consumers benefited from a
combination of good growth in income after inflation, a strong labor market and
past increases in the prices of assets they owned.
The negative effect of Asian weakness was directed towards the industrial
sector more than the consumer sector. Corporate profits weakened, especially in
sectors sensitive to Asia such as world-traded commodities (oil, metals and
paper) and exports. One result of the industrial weakness was to cool off a U.S.
economy that had been growing rapidly.
The major change in the economic outlook over recent months has been a
downward shift in expectations for world economic growth. A credit crunch
developed in emerging countries and former communist countries, sharply reducing
the economic outlook for Asia and Latin America as well as for
commodity-exporting countries throughout the world. The effect on Europe and the
U.S. has been to lower expectations of profit growth and drive down bond yields
Market sentiment now anticipates further monetary easing in the U.S. and other
industrial countries as the evidence of a weaker world economy has accumulated.
There appears to be a shift in the priorities of key policymakers from fighting
potential inflation to restimulating future world economic growth.
Market Overview
The 12 months ended September 30, 1998 encompassed some very different market
phases, with stock market strength during much of the period followed by a sharp
decline towards the end of the period. Over the 12 months, the total return on
the Standard and Poor's 500 Composite Stock Price Index was 9.08%. Returns on
mid-cap and small-cap stock indices were weaker, with a negative total return on
small-cap indices.
Three key trends influenced stock market behavior during the fiscal year.
First, the Fed kept the Federal Funds rate flat at 5.5% for most of the fiscal
year, before 25 basis-point cuts in both September and October. Sentiment
changed from expectations of a possible Fed Funds rate increase to widespread
expectations of lower interest rates, especially after the Fed easing in late
September. Second, weakness in emerging country economies contributed to
declining commodity prices and a drop in long-term Treasury bond yields to
multidecade lows. Third, expectations for corporate profits dropped, first in
the sectors sensitive to Asian developments such as oil, basic materials and
exports and then for a broader list of stocks.
The trigger for the sharp decline in stocks at the end of the period appeared
to be the Russian default in the summer of 1998. This resulted in deepening
concerns about weaker economic growth and corporate profits. There was also a
global margin call on risky assets held by hedge funds and financial
institutions. This raised the cost of debt financing for many corporations and
many emerging countries. Expectations for economic activity in emerging
countries in Asia and Latin America shifted down sharply while expectations for
U.S. corporate profits weakened somewhat. Despite the fall in Treasury bond
yields, financial stocks led the summer sell-off due to concerns about financial
contagion from emerging countries and potential loan losses by financial
institutions.
The erosion of expectations about corporate profit growth over the last year
contributed to an outperformance by a small group of super-cap growth stocks
until late in the fiscal year. Investors had more confidence in the prospect for
strong persistent earnings growth for this small group of stocks than for the
broad market. Value stocks, which often have greater cyclical sensitivity to
earnings fluctuations, lagged behind these super-growth stocks. In addition,
many financial stocks in the value category fell sharply following the Russian
default.
The fiscal year ended September 30, 1998 was characterized by very different
performances of the various market sectors. The largest-cap growth stocks did
best, followed by large-cap stocks in general with mid-cap and small-cap stocks
lagging behind. For example, the total return for the fiscal year on the Russell
1000 Index with a heavy large-cap representation was 7.36%, with the Russell
1000 Growth Index returning 11.11%, while the Russell 1000 Value Index returned
3.59% . The return on the Russell Midcap Index was -6.01%, while the small-cap
Russell 2000 Index return was -19.02%.***
Portfolio Focus
The dominant factor in the Fund's total return over the past year has been the
dramatic underperformance of small- and mid-capitalization stocks relative to
the S&P 500 Index. As investors shifted into the largest-capitalization issues,
which they believed offered less risk, the smaller- and medium-cap stocks came
under added pressure. Small- and mid-cap growth stocks, which comprised most of
the Fund's holdings, were particularly hard hit as the market decline continued
During the first three quarters of the fiscal year, the Fund's investment
focus centered on small-capitalization stocks. In April, when I was appointed
portfolio manager, I began shifting, under then current market conditions, the
Fund' s emphasis to mid-cap stocks. However, this group also fell into a decline
nearly as much as the small-cap issues.
In general, my investment style is grounded in the firm belief that a
diversified portfolio of rapidly growing companies with sustainable growth
prospects will outperform the market averages over a period of years. Currently,
the Fund is concentrating on mid-cap companies that range from $1 billion to $5
billion in asset size. I use a "bottom up" approach, which means that I focus on
individual stock selection before considering economic trends. I also factor
into the mix the Fund's sector weightings versus its peer group.
More specifically, when evaluating new prospects for the Fund, we typically
screen for companies with innovative products and services, and earnings growth
rates of approximately 20% or better. When such companies are identified, we
evaluate sustainability of growth vis-a-vis the company's competitive position
within its industry. We seek to maintain close relationships with company
management, often meeting with them directly to evaluate their ability to manage
and deliver high levels of growth.
I generally sell securities from the Fund when there is an expected or actual
change in growth prospects, when valuation levels have become extreme, or when I
believe there are superior alternative investments. During recent months, I
repositioned the Fund by eliminating several poorly performing stocks, as well
as stocks where the risk of future disappointment was deemed to be high.
In addition, since April, approximately three quarters of the Fund's assets
have been invested in companies that are new to the Fund. Many of these
companies are in the mid-cap range, which we believe provided buying
opportunities due to the weakness in the mid-cap market this year. Some examples
of new investments included Total Renal Care Holdings, Associates First Capital,
Cl. A, and Linens 'n Things.
While the Fund currently is more diversified by sector and industry, having
added investments in financial services, commercial services and consumer growth
companies, the median market capitalization of the Fund has increased
substantially with aggressive growth remaining its focus. The Fund continues to
be designed for those investors with a tolerance for high risk and a long-term
investment horizon.
Going forward, I believe that a disciplined approach to identifying rapidly
growing companies will position the Fund favorably for the future. Thank you for
remaining a valued Dreyfus shareholder.
Sincerely,
[Paul A. LaRocco signature logo]
Paul A. LaRocco
Portfolio Manager
October 19, 1998
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid,
without taking into account the maximum initial sales charge in the case of
Class A shares or the applicable 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.
***SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- The Russell 1000 Index measures
the performance of the 1,000 largest companies in the Russell 3000 Index, which
represents approximately 89% of the total market capitalization of the Russell
3000 Index. The Russell 1000 Growth Index measures the performance of those
Russell 1000 companies with higher price-to-book ratios and higher forecasted
growth values. The Russell 1000 Value Index measures the performance of those
Russell 1000 companies with lower price-to-book ratios and lower forecasted
growth values. The Russell Midcap Index consists of the bottom 800 securities in
the Russell 1000 Index as ranked by total market capitalization and is a widely
accepted measure of medium-cap stock market performance. The Russell 2000 Index
is composed of the 2,000 smallest companies in the Russell 3000 Index. The
Russell 3000 Index is composed of 3,000 of the largest U.S. companies by market
capitalization. All indices are unmanaged and include reinvested dividends.
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND SEPTEMBER 30, 1998
- -----------------------------------------------------------------------------
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
Dollars
$309,566
Standard & Poor's 500 Composite Stock Price Index*
$75,240
Dreyfus Premier Aggressive Growth Fund (Class A Shares)
*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 9/30/98 Sales Charge Sales Charge (5.75%) Period Ended 9/30/98 Redemption Redemption*
___________________ ____________ ________________ ________________ __________ _________________
<S> <C> <C> <C> <C> <C>
1 Year (55.08)% (57.66)% 1 Year (55.46)% (57.24)%
5 Years (12.06) (13.10) From Inception (1/3/96) (23.95) (24.79)
10 Years (0.36) (0.95)
From Inception (6/23/69) 7.35 7.14
Class C Shares Class R Shares
_______________________________________________________ _________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 9/30/98 No Redemption Redemption** Period Ended 9/30/98
___________________ ____________ __________________ ________________
1 Year (55.20)% (55.65)% 1 Year (55.31)%
From Inception (1/3/96) (23.75) (23.75) From Inception (1/3/96) (23.36)
- ------------------------
Past performance is not predictive of future performance.
</TABLE>
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>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1998
Common Stocks--97.6% Shares Value
- -----------------------------------------------------
_____________ _____________
<C> <C>
Apparel--2.0% Jones Apparel Group. . . . . . . . . . . . . . . . 48,875 (a) $ 1,121,070
Tommy Hilfiger . . . . . . . . . . . . . . . . . . 30,000 (a) 1,230,000
_____________
2,351,070
_____________
Banking--1.5% Downey Financial . . . . . . . . . . . . . . . . . 75,000 1,785,938
_____________
Biotechnology--1.4% Atlantic Pharmaceuticals . . . . . . . . . . . . . 127,975 (a) 223,956
Biomatrix . . . . . . . . . . . . . . . . . . . . 16,000 (a) 624,000
Gene Logic . . . . . . . . . . . . . . . . . . . . 220,613 (a) 868,665
_____________
1,716,621
_____________
Business Services--11.6% Affiliated Computer Services, Cl. A. . . . . . . . 39,000 (a) 1,189,500
Cambridge Technology Partners . . . . . . . . . . 49,775 (a) 1,110,605
Concord EFS . . . . . . . . . . . . . . . . . . . 24,000 (a) 619,500
Fiserv . . . . . . . . . . . . . . . . . . . . . . 55,999 (a) 2,579,454
Four Media . . . . . . . . . . . . . . . . . . . . 120,000 (a) 450,000
Gartner Group, Cl. A . . . . . . . . . . . . . . . 65,000 (a) 1,356,875
Renaissance Worldwide . . . . . . . . . . . . . . 139,000 (a) 1,824,375
Sterling Commerce . . . . . . . . . . . . . . . . 72,000 (a) 2,493,000
SunGard Data Systems . . . . . . . . . . . . . . . 34,000 (a) 1,071,000
Young & Rubicam . . . . . . . . . . . . . . . . . 48,600 (a) 1,379,025
_____________
14,073,334
_____________
Chemicals--1.2% CCA Cos. . . . . . . . . . . . . . . . . . . . . . 673,325 (a,b) 1,430,815
_____________
Computer Equipment--3.1% Compaq Computer. . . . . . . . . . . . . . . . . . 58,000 1,834,250
Micron Electronics . . . . . . . . . . . . . . . . 110,000 (a) 1,925,000
_____________
3,759,250
_____________
Computer Products--1.8% Blyth Industries . . . . . . . . . . . . . . . . . 81,000 (a) 2,222,438
_____________
Computer Software/
Services--16.2% AXENT Technologies . . . . . . . . . . . . . . . . 153,100 (a) 2,851,488
Aspen Technology . . . . . . . . . . . . . . . . . 24,100 (a) 644,675
CBT Group, A.D.S. . . . . . . . . . . . . . . . . 61,325 (a) 827,888
Citrix Systems . . . . . . . . . . . . . . . . . . 40,000 (a) 2,840,000
Compuware . . . . . . . . . . . . . . . . . . . . 42,500 (a) 2,502,187
JDA Software Group . . . . . . . . . . . . . . . . 181,950 (a) 2,513,184
Keane . . . . . . . . . . . . . . . . . . . . . . 7,000 (a) 245,875
Microsoft . . . . . . . . . . . . . . . . . . . . 6,000 (a) 660,375
Network Associates . . . . . . . . . . . . . . . . 73,750 (a) 2,618,125
Patient Infosystems . . . . . . . . . . . . . . . 253,700 (a) 459,831
Saville Systems, A.D.S. . . . . . . . . . . . . . 162,025 (a) 2,349,362
Visio . . . . . . . . . . . . . . . . . . . . . . 43,000 (a) 1,034,688
_____________
19,547,678
_____________
Consumer Services--.3% Cendant. . . . . . . . . . . . . . . . . . . . . . 29,000 (a) 337,125
_____________
Electronics--.1% Image Processing Systems . . . . . . . . . . . . . 283,650 (a) 120,607
_____________
Environmental Services--1.4% Waste Management . . . . . . . . . . . . . . . . . 36,000 1,730,250
_____________
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Common Stocks (continued) Shares Value
- -----------------------------------------------------
_____________ _____________
Financial Services--6.8% Associates First Capital, Cl. A. . . . . . . . . . 38,000 $ 2,479,500
Capital One Financial . . . . . . . . . . . . . . 5,000 517,500
FINOVA Group . . . . . . . . . . . . . . . . . . . 57,000 2,846,438
Nationwide Financial Services, Cl. A . . . . . . . 38,500 1,749,344
Resource America, Cl. A . . . . . . . . . . . . . 57,575 579,348
_____________
8,172,130
_____________
Healthcare Services--12.8% Biogen . . . . . . . . . . . . . . . . . . . . . . 10,000 (a) 658,125
Cardinal Health . . . . . . . . . . . . . . . . . 23,000 2,374,750
Comprehensive Care . . . . . . . . . . . . . . . . 35,700 (a) 131,644
Concentra Managed Care . . . . . . . . . . . . . . 64,500 (a) 516,000
HEALTHSOUTH . . . . . . . . . . . . . . . . . . . 172,500 (a) 1,822,031
HemaCare . . . . . . . . . . . . . . . . . . . . . 530,500 (a,b) 174,070
Omega Orthodontics . . . . . . . . . . . . . . . . 49,800 (a) 38,906
Omega Orthodontics (Warrants) . . . . . . . . . . 66,250 (a) 5,176
PAREXEL International . . . . . . . . . . . . . . 58,000 (a) 2,262,000
Pharmaceutical Product Development . . . . . . . . 28,000 (a) 784,000
Quintiles Transnational . . . . . . . . . . . . . 60,775 (a) 2,658,906
Total Renal Care Holdings . . . . . . . . . . . . 168,500 (a) 4,044,000
_____________
15,469,608
_____________
Information Services--1.1% Chromatics Color Sciences International. . . . . . 470,575 (a) 1,382,314
_____________
Insurance--1.7% Conseco. . . . . . . . . . . . . . . . . . . . . . 68,844 2,104,045
_____________
Leisure & Entertainment--4.0% American Classic Voyages . . . . . . . . . . . . . 254,475 (a) 3,753,506
Royal Caribbean Cruises . . . . . . . . . . . . . 40,300 1,070,469
_____________
4,823,975
_____________
Manufacturing--1.6% Tyco International . . . . . . . . . . . . . . . . 35,000 1,933,750
_____________
Medical Supplies--.8% ONCOR. . . . . . . . . . . . . . . . . . . . . . . 1,907,825 (a,b) 238,478
OnGard Systems . . . . . . . . . . . . . . . . . . 570,000 (a,b) --
Sybron International . . . . . . . . . . . . . . . 37,000 (a) 707,625
_____________
946,103
_____________
Mining & Metals--.8% STELAX Industries. . . . . . . . . . . . . . . . . 2,229,950 (a,b) 936,579
_____________
Oil Services--.7% Halliburton. . . . . . . . . . . . . . . . . . . . 28,000 799,750
_____________
Paper & Forest Products--.2% TST/Impreso. . . . . . . . . . . . . . . . . . . . 86,200 (a) 228,969
_____________
Pharmaceuticals--6.4% Bentley Pharmaceuticals. . . . . . . . . . . . . . 307,725 (a) 288,492
IDEC Pharmaceuticals . . . . . . . . . . . . . . . 24,000 (a) 570,000
Medicis Pharmaceuticals, Cl. A . . . . . . . . . . 57,000 (a) 2,258,625
Mylan Laboratories . . . . . . . . . . . . . . . . 100,000 2,950,000
Teva Pharmaceutical Industries, A.D.R. . . . . . . 40,000 1,515,000
Transcend Therapeutics . . . . . . . . . . . . . . 236,300 (a) 177,225
_____________
7,759,342
_____________
Publishing & Broadcasting--5.7% Cinar Films, Cl. B . . . . . . . . . . . . . . . . 200,000 (a) 3,587,500
MediaOne Group . . . . . . . . . . . . . . . 48,500 (a) 2,155,219
Tele-Communications, Cl. A . . . . . . . . . . . . 30,000 (a) 1,173,750
_____________
6,916,469
_____________
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 1998
Common Stocks (continued) Shares Value
- -----------------------------------------------------
_____________ _____________
Restaurants--4.5% CKE Restaurants. . . . . . . . . . . . . . . . . . 75,000 $ 2,231,250
Outback Steakhouse . . . . . . . . . . . . . . . . 64,000 (a) 1,688,000
Starbucks . . . . . . . . . . . . . . . . . . . . 41,400 (a) 1,498,162
_____________
5,417,412
_____________
Retail--5.6% American Eagle Outfitters. . . . . . . . . . . . . 23,000 (a) 796,375
Meyer (Fred) . . . . . . . . . . . . . . . . . . . 32,000 (a) 1,244,000
Intellicell . . . . . . . . . . . . . . . . . . . 52,350 (a) 52,350
Intellicell (Warrants) . . . . . . . . . . . . . . 102,500 (a) --
Kmart . . . . . . . . . . . . . . . . . . . . . . 60,000 (a) 716,250
Linens 'n Things . . . . . . . . . . . . . . . . . 58,500 (a) 1,608,750
Micro Warehouse . . . . . . . . . . . . . . . . . 56,000 (a) 843,500
Rental Service . . . . . . . . . . . . . . . . . . 30,000 (a) 540,000
United Rentals . . . . . . . . . . . . . . . . . . 42,350 (a) 1,013,753
_____________
6,814,978
_____________
Semiconductors &
Equipment--2.9% Amkor Technology . . . . . . . . . . . . . . . . . 63,225 (a) 308,222
Uniphase . . . . . . . . . . . . . . . . . . . . . 42,500 (a) 1,742,500
Vitesse Semiconductor . . . . . . . . . . . . . . 63,000 (a) 1,488,375
_____________
3,539,097
_____________
Telecommunication
Equipment--1.4% NewCom . . . . . . . . . . . . . . . . . . . . . . 220,000 (a) 990,000
NewCom (Warrants) . . . . . . . . . . . . . . . . 32,348 (a) 28,305
Tellabs . . . . . . . . . . . . . . . . . . . . . 18,000 (a) 716,625
_____________
1,734,930
_____________
TOTAL COMMON STOCKS
(cost $180,211,316) . . . . . . . . . . . . . $118,054,577
=============
Convertible Preferred Stocks--.0%
- -----------------------------------------------------
Medical Supplies; Fresenius Medical Care Holdings, Ser. D
(cost $27,904) . . . . . . . . . . . . . . . . 149,700 (a) $ 5,988
=============
Principal
Short-Term Investments--.3% Amount
- ---------------------------------------------------------------------------------------
_____________
U.S. Treasury Bills; 4.48%, 12/17/98
(cost $300,989) . . . . . . . . . . . . . . . $ 304,000 $ 301,288
=============
TOTAL INVESTMENTS (cost $180,540,209). . . . . . . . . . . . . . . . . . . . . . . . . 97.9% $118,361,853
======= =============
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1% $ 2,543,342
======= =============
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $120,905,195
======= =============
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
(b) Investment in non-controlled affiliates (total cost $24,299,022)--see Note
1(d).
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $180,540,209 $118,361,853
Receivable for investment securities sold . . . . . . . . 4,313,448
Dividends receivable . . . . . . . . . . . . . . . . . . 28,806
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 24,138
_____________
122,728,245
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 114,786
Due to Distributor . . . . . . . . . . . . . . . . . . . 26,718
Cash overdraft due to Custodian . . . . . . . . . . . . . 8,737
Payable for investment securities purchased . . . . . . . 1,399,063
Payable for shares of Common Stock redeemed . . . . . . . 131,588
Accrued expenses and other liabilities . . . . . . . . . 142,158
_____________
1,823,050
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,905,195
=============
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $241,921,754
Accumulated net realized gain (loss) on investments . . . (58,838,203)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . (62,178,356)
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,905,195
=============
NET ASSET VALUE PER SHARE
_____________________________
Class A Class B Class C Class R
_____________ _____________ _____________ _____________
Net Assets . . . . . . . . . . . . . . . . . . . . . . $120,782,464 $93,827 $19,924 $8,980
Shares Outstanding . . . . . . . . . . . . . . . . . . 16,877,160 13,390 2,824 1,254
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . $7.16 $7.01 $7.06 $7.16
===== ===== ===== =====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED SEPTEMBER 30, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME: Interest . . . . . . . . . . . . . . . . . . . . . . . . $ 773,857
Cash dividends (net of $7,565 foreign taxes
withheld at source) . . . . . . . . . . . . . . . . . 209,675
______________
Total Income . . . . . . . . . . . . . . . . . . . $ 983,532
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . 1,904,346
Shareholder servicing costs--Note 3(c) . . . . . . . . . 1,045,135
Interest expense--Note 2 . . . . . . . . . . . . . . . . 341,966
Loan commitment fees--Note 2 . . . . . . . . . . . . . . 133,689
Directors' fees and expenses--Note 3(d) . . . . . . . . . 62,245
Prospectus and shareholders' reports . . . . . . . . . . 43,730
Custodian fees--Note 3(c) . . . . . . . . . . . . . . . . 37,694
Professional fees . . . . . . . . . . . . . . . . . . . . 28,358
Registration fees . . . . . . . . . . . . . . . . . . . . 19,549
Distribution fees--Note 3(b) . . . . . . . . . . . . . . 1,440
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 3,684
______________
Total Expenses . . . . . . . . . . . . . . . . . . 3,621,836
______________
INVESTMENT (LOSS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,638,304)
______________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments:
Unaffiliated issuers . . . . . . . . . . . . . . . . . $ (35,877,118)
Affiliated issuers . . . . . . . . . . . . . . . . . . (19,095,172) (54,972,290)
______________
Net unrealized appreciation (depreciation) on investments:
Unaffiliated issuers . . . . . . . . . . . . . . . . . (95,079,390)
Affiliated issuers . . . . . . . . . . . . . . . . . . (29,236,567) (124,315,957)
______________ ______________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . (179,288,247)
______________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . $(181,926,551)
==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
September 30, 1998 September 30, 1997
__________________ __________________
<S> <C> <C>
OPERATIONS:
Investment (loss)--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2,638,304) $ (6,087,354)
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . (54,972,290) 5,553,495
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . (124,315,957) 26,988,890
______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . (181,926,551) 26,455,031
______________ ______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,176,835 261,013,384
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,530 160,108
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,895 55,481
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,812 8,115
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (443,227,993) (392,860,490)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (133,256) (257,314)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (70,507)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,988) (14,074)
Net assets received in connection with reorganization--Note 1 . . . . . . . . . -- 30,745,645
______________ ______________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . (103,061,165) (101,219,652)
______________ ______________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . (284,987,716) (74,764,621)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405,892,911 480,657,532
______________ ______________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,905,195 $405,892,911
============== ==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_________________________________________
Year Ended Year Ended
September 30, 1998 September 30, 1997
__________________ __________________
CAPITAL SHARE TRANSACTIONS:
Class A
________
<S> <C> <C>
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,800,679 17,802,990
Shares issued in connection with reorganization--Note 1 . . . . . . . . . . . . -- 2,158,851
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37,362,516) (26,966,317)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . (8,561,837) (7,004,476)
=========== ===========
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,745 11,338
Shares issued in connection with reorganization--Note 1 . . . . . . . . . . . . -- 24,105
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,904) (18,752)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . (4,159) 16,691
=========== ===========
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,699 3,536
Shares issued in connection with reorganization--Note 1 . . . . . . . . . . . . -- 1,501
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (5,010)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . 2,699 27
=========== ===========
Class R
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 618 569
Shares issued in connection with reorganization--Note 1 . . . . . . . . . . . . -- 975
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (322) (936)
___________ ___________
Net Increase (Decrease) in Shares Outstanding . . 296 608
=========== ===========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $15.94 $14.81 $16.31 $15.35 $18.53
______ ______ ______ ______ ______
Investment Operations:
Investment income (loss)--net . . . . . . . . . . . . . . (.12)(1) (.33) (.12) .40 .40
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . (8.66) 1.46 .01 1.23 (.56)
______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . (8.78) 1.13 (.11) 1.63 (.16)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . -- -- (.28) (.44) (.80)
Dividends from net realized gain on investments . . . . . -- -- (1.11) (.23) (2.22)
______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . -- -- (1.39) (.67) (3.02)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $ 7.16 $15.94 $14.81 $16.31 $15.35
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . (55.08%) 7.63% (.71%) 11.21% (1.50%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . 1.24% 1.20% 1.11% 1.03% 1.03%
Ratio of interest expense, loan commitment fees
and dividends on securities sold short to
average net assets . . . . . . . . . . . . . . . . . .19% .47% .39% .08% .09%
Ratio of net investment income (loss)
to average net assets . . . . . . . . . . . . . . . . (1.04%) (1.44%) (.66%) 2.55% 2.10%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 106.58% 76.28% 131.43% 298.60% 158.05%
Net Assets, end of period (000's Omitted) . . . . . . . . $120,782 $405,599 $480,638 $572,077 $570,360
- ------------------------
(1) Based on average shares outstanding at each month end.
(2) Exclusive of sales load.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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 Shares
__________________________________
Year Ended September 30,
__________________________________
PER SHARE DATA: 1998 1997 1996(1)
______ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . $15.74 $14.73 $14.84
______ ______ ______
Investment Operations:
Investment (loss)--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.22)(2) (.22) (.10)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.51) 1.23 (.01)
______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . . . . . . . . (8.73) 1.01 (.11)
______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.01 $15.74 $14.73
====== ====== ======
TOTAL INVESTMENT RETURN(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55.46%) 6.86% (.74%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . . . . . . . . . . . . . . . 2.09% 1.95% 1.47%(4)
Ratio of interest expense and loan commitment
fees to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .19% .43% .49%(4)
Ratio of net investment (loss)
to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.89%) (2.22%) (1.40%)(4)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.58% 76.28% 131.43%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . . . $94 $276 $13
- ------------------------
(1) From January 3, 1996 (commencement of initial offering) to September 30, 1996.
(2) Based on average shares outstanding at each month end.
(3) Exclusive of sales load.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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 Shares
______________________________
Year Ended September 30,
______________________________
PER SHARE DATA: 1998 1997 1996(1)
______ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . $15.76 $14.83 $14.84
______ ______ ______
Investment Operations:
Investment (loss)--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.18)(2) (.37)(2) (.24)(2)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.52) 1.30 .23
______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . . . . . . . . (8.70) .93 (.01)
______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.06 $15.76 $14.83
====== ====== ======
TOTAL INVESTMENT RETURN(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55.20%) 6.27% (.07%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . . . . . . . . . . . . . . . 2.39% 1.99% 1.42%(4)
Ratio of interest expense and loan commitment
fees to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .07% .53% .47%(4)
Ratio of net investment (loss)
to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.90%) (2.37%) (1.32%)(4)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.58% 76.28% 131.43%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . . . $20 $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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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 Shares
__________________________________
Year Ended September 30,
__________________________________
PER SHARE DATA: 1998 1997 1996(1)
______ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . $16.02 $14.84 $14.84
______ ______ ______
Investment Operations:
Investment (loss)--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.15)(2) (.10) (.02)
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.71) 1.28 .02
______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . . . . . . . . (8.86) 1.18 --
______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.16 $16.02 $14.84
====== ====== ======
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55.31%) 7.95% --
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . . . . . . . . . . . . . . . 1.57% .76% .73%(3)
Ratio of interest expense and loan commitment fees
to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16% .30% .35%(3)
Ratio of net investment (loss)
to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.30%) (.90%) (.56%)(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.58% 76.28% 131.43%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . . . $9 $15 $5
- ------------------------
(1) From January 3, 1996 (commencement of initial offering) to September 30, 1996.
(2) Based on average shares outstanding at each month end.
(3) Not annualized.
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 separate diversified
series of Dreyfus Premier Equity Funds, Inc., (the "Company" ) which is
registered under the Investment Company Act of 1940, as amended (the "Act") as
an open-end management investment company and operates as a series company
currently offering four series, including the Fund. The Fund's investment
objective is capital growth. The Dreyfus Corporation (the "Manager") serves as
the Fund' s investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A. ("Mellon").
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 50 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.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of exchange.
Forward currency exchange contracts are valued at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion of
the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities
of short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the Fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custodian agreement, the Fund received net
earnings credits of $6,219 during the period ended September 30, 1998 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(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,
1998:
<TABLE>
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 9/30/98
_____________ ___________ ___________ __________ _____________ ___________ ____________
<S> <C> <C> <C> <C> <C> <C>
Advanced Photonix, Cl. A . . . . . . . 975,000 -- 975,000 -- -- --
American Classic Voyages*. . . . . . . -- 835,000 580,525 254,475 -- $3,753,506
Bentley Pharmaceuticals* . . . . . . . 150,000 220,000 62,275 307,725 -- 288,492
CCA Cos. . . . . . . . . . . . . . . . 335,000 345,000 6,675 673,325 -- 1,430,815
Celerity Systems . . . . . . . . . . . -- 260,000 260,000 -- -- --
Chromatics Color Sciences International* . 720,000 442,500 691,925 470,575 -- 1,382,314
Complete Management. . . . . . . . . . 960,000 64,500 1,024,500 -- -- --
Crystal Systems Solutions. . . . . . . 560,000 -- 560,000 -- -- --
EA Industries. . . . . . . . . . . . . 800,000 20,000 820,000 -- -- --
Four Media*. . . . . . . . . . . . . . 605,000 -- 485,000 120,000 -- 450,000
HemaCare . . . . . . . . . . . . . . . 600,000 -- 69,500 530,500 -- 174,070
Hemispherx BioPharmaceutical . . . . . 600,000 575,000 1,175,000 -- -- --
Home Security International. . . . . . 230,000 67,500 297,500 -- -- --
Image Guided Technologies. . . . . . . 280,000 -- 280,000 -- -- --
Imaging Technologies . . . . . . . . . 650,000 -- 650,000 -- -- --
Larson Davis . . . . . . . . . . . . . 675,000 -- 675,000 -- -- --
MacroChem. . . . . . . . . . . . . . . 875,000 140,000 1,015,000 -- -- --
Microvision. . . . . . . . . . . . . . 185,000 115,000 300,000 -- -- --
NeoPharm . . . . . . . . . . . . . . . 440,000 -- 440,000 -- -- --
Newcom*. . . . . . . . . . . . . . . . 350,000 300,000 430,000 220,000 -- 990,000
Northstar Health Services. . . . . . . 460,000 -- 460,000 -- -- --
ONCOR. . . . . . . . . . . . . . . . . 2,430,000 160,000 682,175 1,907,825 -- 238,478
OnGard Systems . . . . . . . . . . . . 570,000 -- -- 570,000 -- --
OncorMed . . . . . . . . . . . . . . . 770,000 -- 770,000 -- -- --
Preferred Employers Holdings . . . . . 237,400 19,400 256,800 -- -- --
Sheldahl . . . . . . . . . . . . . . . 585,000 10,000 595,000 -- -- --
Smallworldwide, A.D.S. . . . . . . . . 310,000 -- 310,000 -- -- --
STELAX Industries. . . . . . . . . . . 1,680,000 1,145,000 595,050 2,229,950 -- 936,579
Transcend Therapeutics*. . . . . . . . 300,000 -- 63,700 236,300 -- 177,225
Triteal. . . . . . . . . . . . . . . . 900,000 -- 900,000 -- -- --
Ultrafem . . . . . . . . . . . . . . . 700,000 25,000 725,000 -- -- --
Ultralife Batteries. . . . . . . . . . 390,000 135,000 525,000 -- -- --
____________________________
</TABLE>
*No longer an affiliated issuer at September 30, 1998.
(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 of 1986, as amended (the "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 Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $2,409,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1998. The
carryover does not include net realized securities losses from November 1, 1997
through September 30, 1998 which are treated for Federal income tax purposes as
arising in fiscal 1999. If not applied, the carryover expires in fiscal 2004.
During the period ended September 30, 1998, the Fund reclassified $8,725,658
from accumulated investment loss to paid-in capital. Net assets were not
affected by this reclassification.
NOTE 2--BANK LINES OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. Prior to August 16, 1998 the Fund also could borrow up to $76
million for leveraging purposes under a short-term unsecured line of credit.
Interest on the leverage line was charged to the Fund based on Federal Funds
rates in effect at the time of borrowing and this line also included a
commitment fee based on the unused portion of the first $46 million.
The average daily amount of borrowings outstanding under both agreements
during the period ended
September 30, 1998 was approximately $5,175,000, with a related weighted average
annualized interest rate of 6.61%.
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 LLP, counsel to the Fund, also includes loan commitment fees and
dividends on securities sold short), brokerage commissions and extraordinary
expenses, exceed 11_2% of the average value of Class A net assets, the Fund may
deduct from payments to be made to the Manager, or the Manager will bear such
excess expense. No expense reimbursement was required for the period ended
September 30, 1998.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $16,473 during the period ended September 30, 1998 from commissions
earned on sales of Fund shares.
(B) Under the Distribution Plan, adopted pursuant to Rule 12b-1 under the Act,
Class B and Class C shares pay the Distributor for distributing their shares at
an annual rate of .75 of 1% of the value of the average daily net assets of
Class B and Class C shares. During the period ended September 30, 1998, Class B
and Class C shares were charged $1,369 and $71, respectively, pursuant to the
Distribution Plan.
(C) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor at the annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may DREYFUS PREMIER AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 1998, Class A, Class B and Class C shares
were charged $634,269, $456 and $24, 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, 1998, the Fund was charged $257,527 pursuant to the transfer
agency agreement.
The Fund compensates Mellon under a custody agreement for providing custodial
services for the Fund. During the period ended September 30, 1998, the Fund was
charged $37,694 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:
<TABLE>
The following summarizes the aggregate amount of purchases and sales of
investment securities, excluding short-term securities, during the period ended
September 30, 1998:
Purchases Sales
______________ ______________
<S> <C> <C>
Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . $221,276,506 $333,194,589
Affiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . 39,594,207 42,672,230
______________ ______________
TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $260,870,713 $375,866,819
============== ==============
</TABLE>
At September 30, 1998, accumulated net unrealized depreciation on investments
was $62,178,356, consisting of $4,998,578 gross unrealized appreciation and
$67,176,934 gross unrealized depreciation.
At September 30, 1998, 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, 1998, 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, 1998 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, 1998, 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.
New York, New York
November 11, 1998
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. 009AR989
Annual Report
- -------------------------------------------------------------------------------
DREYFUS PREMIER
AGGRESSIVE GROWTH
FUND
- -------------------------------------------------------------------------------
September 30, 1998
[lion "d" logo reg. tm]
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
9/30/98 309,566 75,240
*Source: Lipper Analytical Services, Inc.
