DREYFUS PREMIER AGGRESSIVE GROWTH FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to announce that Paul A. LaRocco was appointed primary
portfolio manager of Dreyfus Premier Aggressive Growth Fund on April 8, 1998.
A nine-year veteran of the financial services industry, Mr. LaRocco
joined Dreyfus on April 1, 1998. Mr. LaRocco also serves as a portfolio
manager for Founders Asset Management LLC, which was recently acquired by
Mellon Bank Corporation, Dreyfus's parent company. Mr. LaRocco's appointment
as portfolio manager of the Fund is the first strategic integration move
stemming from the acquisition of Founders.
Mr. LaRocco joins Dreyfus and Founders from Oppenheimer Funds, New York,
where he was a vice president and portfolio manager of the $950 million
Capital Appreciation Fund (variable annuity). He was also portfolio manager
of the Oppenheimer MidCap Fund and associate manager of Oppenheimer Discovery
Fund. A graduate of the University of California at Santa Barbara with a B.A.
in biological sciences and a B.S. in physiological psychology, Mr. LaRocco
also received an MBA with a concentration in finance from the University of
Chicago Graduate School of Business. He is a Chartered Financial Analyst
(CFA).
Please note that the objective and policies of the Dreyfus Premier
Aggressive Growth Fund have not changed. The Fund will continue to be managed
in an aggressive growth style with an emphasis on selecting rapidly growing
companies from a range of market capitalizations. Because of the volatile
nature of the securities that comprise the Fund's portfolio, this type of
investment continues to be appropriate for investors with a tolerance for
high risk and a long-term investment horizon.
While Michael Schonberg will continue to serve as a portfolio manager for
the Fund, we believe that you can look forward to Paul LaRocco's leadership
in managing the Dreyfus Premier Aggressive Growth Fund. Thank you for
allowing us to serve your investment needs.
Sincerely,
[Stephen E. Canter signature logo]
Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Dreyfus Premier Aggressive Growth Fund completed the first half of
its current fiscal year on March 31, 1998. The total return for the six-month
period lagged the general stock market.
For the six months ended March 31, 1998, the performance for your Fund is
shown in the following table:
Total Return*
____________
Class A Shares -21.20%
Class B Shares -21.54%
Class C Shares -22.02%
Class R Shares -21.35%
Standard & Poor's 500 Composite Stock Price Index**
17.21%
The Fund's underperformance of the last six months resulted from a number
of the Fund's holdings that experienced fundamental disappointments, such as
negative earnings surprises and delayed new product introductions, or
specific market trading pressures, including secondary share offerings
and year-end tax-loss selling.
Economic Review
A shift to a slower economy may have started this spring, ending nearly
two years of above-trend real growth. Slowing economic growth in the late
phase of this business cycle is not accompanied by accelerating price
inflation; rather it is accompanied by rising cost pressures. This hot and
cold mix in the economy has kept Federal Reserve Board (the "Fed") policy in
neutral in recent months, with equal concern over rising wage inflation and
slowing growth. In turn, stable short-term rates have thwarted the market's
attempts to reduce long-term rates. Meanwhile, a slowing economy without
pricing power threatened to curb corporate revenue growth this year. Rising
costs already have begun to squeeze corporate profit margins in some sectors.
The industrial sector is leading the economic slowdown, as evidenced by
weak orders for exports and capital goods and cutbacks in automobile
production. Manufacturers are bearing the brunt of Asia's economic turmoil,
the strong dollar, and pricing constraints due to import competition. The
household sector, which benefits from these factors, has enjoyed strong
purchasing power that has fueled a boom in housing demand and consumer
spending. This mix has kept the labor market quite tight, exerting upward
pressure on wages, especially in the service economy.
The Fed abandoned its bias towards tighter monetary policy earlier this
year. However, by keeping short-term interest rates stable, the Fed has
effectively created a floor for longer-term rates. Demand for U.S. Treasury
bonds has periodically increased this year as investors sought refuge in
higher quality instruments. And the shift to a Federal budget surplus has
curtailed the new supply of bonds. The Fed's neutral stance has had the
effect of forcing a higher range of interest rates than the market might
otherwise bear.
As for corporate profits, a very mixed picture has begun to emerge. The
risk to this year's overall profit growth, and hence to the total economy, is
that slower economic growth may coexist for some time with rising cost
pressures.
Market Overview
The equity market experienced several sharp swings over the last 12-month
and six-month periods. Following a downward market correction during
February-April 1997, coinciding with a rise in long-term bond rates to over
7.1%, stocks rallied from the April low to new high levels in the
August-October period boosted by a combination of strong corporate earnings
growth and declining interest rates.
In mid-October, however, the Asian economic problems became the focus for
all equity markets, raising fears of depression in parts of Asia and a
potential global recession in 1998. Stock markets dropped sharply for two
weeks from mid- to late October, with most U.S. market indices declining 10%
or more during that time. While share prices recovered during November and
early December, the lower overall investor confidence levels contributed to
outperformance by larger-capitalization shares which rallied to near previous
record-high levels, but smaller-capitalization shares lagged in the recovery.
Stocks that had made recent disappointing earnings announcements were
severely hurt during the market decline and often failed to recover much at
all during the fourth quarter.
In 1998, equity markets got off to a poor start as increased fear of
earnings disappointments caused another market drop in early January. From
the mid-January lows for most stocks, share prices began to rally as severe
U.S. recession fears moderated, and U.S. corporate earnings reports and 1998
outlook comments provided positive news for equities. By the end of March,
many stock market indices had reached new record high levels reflecting the
positive combination of low inflation and low interest rates along with
still-positive prospects for earnings growth in 1998 as domestic economic
growth remained strong, led by strength in the consumer sector.
Portfolio Focus
The portfolio's primary overweightings have been in health care,
technology and process industries, emphasizing smaller-capitalization
companies. Many of the stock holdings have a market capitalization under $250
million, a group that has lagged behind the performance of
large-capitalization stocks.
The eight largest portfolio holdings as of March represented over 30% of
the Fund's assets and reflect the growth emphasis on consumer (Cinar Films,
Cl.B), health care (Macro Chem/Delaware, Biovail), technology (Newcom),
process industries (Chromatics Color Science, Eco Soil Systems), niche
transportation (American Classic Voyages) and financial (Downey Financial)
companies. These are corporations that appear to have strong above-average
growth prospects through important new business introductions in 1998 and
1999.
Earnings disappointments in late 1997 or early 1998 occurred at Sheldahl
(technology), ONCOR (medical technology), Triteal (technology), Ultrafem
(consumer products), Famous Dave's of America (restaurants) and Larson Davis
(process technology). Secondary share offerings pressured Complete Management
(medical services), Crystal Systems Solutions (technology), Image Guided
Technologies (technology) and Eco Soil Systems (process industries).
A number of actions have already been taken in an effort to enhance the
potential return prospects of the Fund. Several poorly performing stocks were
eliminated from the Fund as were stocks where the risk of future
disappointment was deemed to be high. More specifically, we sold securities
where we believe (1) the timing of expected positive developments is unclear
for the near term (generally six months); and (2) performance and/or earnings
have been strong but volatile, and valuations have reached a level where the
near-term upside potential looks limited, even though long-term prospects may
remain bright. Also, we have added positions to the Fund that (1) we believe
have greater likelihood of near-term positive developments plus strong
long-term prospects or (2) are larger holdings with high liquidity and the
potential for greater near-term Wall Street coverage.
With these and other changes still to come, we believe that patient
investors will be rewarded for their investment in this Fund.
Sincerely,
[Paul A. LaRocco signature logo] [Michael Schonberg signature logo]
Paul A. LaRocco Michael Schonberg
Portfolio Manager Portfolio Manager
April 21, 1998
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 widely accepted
unmanaged index of U.S. stock market performance.
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS MARCH 31, 1998 (UNAUDITED)
Common Stocks-75.9% Shares Value
_____________ _____________
<S> <C> <C>
Commercial Services-1.8% Four Media 260,000 (a) $ 2,437,500
Intellicell 187,200 (a) 585,000
Intellicell (Warrants) 102,500 (a) -
Wiztec Solutions 170,000 (a) 1,933,750
_____________
4,956,250
_____________
Consumer Non-durables-.3% Ultrafem 725,000 (a,b) 611,719
Vista 2000 631,078 (a) 39,442
_____________
651,161
_____________
Consumer Services-6.6% Alma International 170,000 (a) 34,000
Cinar Films, Cl. B 300,000 (a) 12,787,500
Home Security International 297,500 (a,b) 3,123,750
Hotel Discovery 71,600 (a) 201,375
Hotel Discovery (Warrants) 97,500 (a) 88,359
Network Event Theater 385,800 (a) 1,687, 875
_____________
17,922,859
_____________
Electronic Technology-9.6% Advanced Photonix, Cl. A 975,000 (a,b) 1,157,813
Celerity Systems 260,000 (a,b) 755,625
FieldWorks 239,200 (a) 1,121,250
Image Processing Systems 850,000 (a) 1,347,590
Imaging Technologies 545,000 (a) 1,566,875
iMALL 150,000 (a) 1,500,000
LarsonDavis 560,000 (a) 1,610,000
Sheldahl 255,700 (a) 2,844,663
TAVATechnologies 525,000 (a) 6,890,625
Ultralife Batteries 475,800 (a,b) 7,077,525
_____________
25,871,966
_____________
Energy Minerals-.2% U.S. Energy 55,500 (a) 464,813
_____________
Finance-4.7%. Downey Financial 333,000 10,780,875
Preferred Employers Holdings 256,800 (a,b) 2,054,400
_____________
12,835,275
_____________
Health Services-6.9%. Complete Management 850,200 (a,b) 7,226,700
Comprehensive Care 132,560 (a) 1,358,740
HemaCare 600,000 (a,b) 412,500
Intelligent Polymers (Units) 110,000 (a) 3,382,500
Northstar Health Services 425,000 (a,b) 318,750
Omega Orthodontics 122,000 (a) 381,250
Omega Orthodontics (Warrants) 90,000 (a) 53,437
OnGard Systems 570,000 (a,b) -
OncorMed 770,000 (a,b) 3,898,125
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31,1998 (UNAUDITED)
Common Stocks (continued) Shares Value
________________ ______________
Health Services (continued) Pace Health Management Systems 200,000 (a) $ 62,500
Patient Infosystems 370,000 (a) 1,665,000
_____________
18,759,502
_____________
Health Technology-14.8% Atlantic Pharmaceuticals 140,000 (a) 910,000
Bentley Pharmaceuticals 370,000 (a,b) 1,063,750
Biovail 160,000 (a) 7,720,000
Hemispherx BioPharmaceutical 1,175,000 (a,b) 3,598,438
MacroChem 1,000,000 (a,b) 11,187,500
NeoPharm 350,000 (a) 1,334,375
NeoPharm (Warrants) 56,000 (a) 112,000
ONCOR 2,590,000 (a,b) 4,532,500
Pacific Pharmaceuticals 400,000 (a) 225,000
Sepracor 120,000 (a) 5,115,000
Transcend Therapeutics 300,000 (a,b) 1,050,000
VIMRx Pharmaceuticals 1,620,000 (a) 3,290,625
_____________
40,139,188
_____________
Industrial Services-1.5% Commodore Applied Technologies 940,000 (a) 4,112,500
_____________
Process Industries-9.5% Chromatics Color Science 1,104,000 (a,b) 13,662,000
Eco Soil Systems 750,000 (a) 7,312,500
Stelax Industries 2,800,000 (a,b) 2,996,000
TST/Impreso 206,600 (a) 1,859,400
_____________
25,829,900
_____________
Producer Manufacturing-1.9% CCACos. 680,000 (a,b) 5,015,000
_____________
Technology Services-11.5% A.C.S. Electronics Limited 46,200 (a) 141,487
Crystal Systems Solutions 167,500 (a) 3,088,281
EA Industries 740,000 (a,b) 4,255,000
Image Guided Technologies 280,000 (a,b) 770,000
Level 8 Systems 279,000 (a) 3,382,875
Microvision 237,500 (a) 3,443,750
Microvision (Warrants) 105,000 (a) 800,625
Network Associates 30,000 (a) 1,987,500
Newcom 650,000 (a,b) 10,075,000
Newcom (Warrants) 100,000 (a) 550,000
Smallworldwide, A.D.S. 140,000 (a) 2,730,000
_____________
31,224,518
_____________
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998 (UNAUDITED)
Common Stocks (continued) Shares Value
________________ ______________
Transportation-6.6% American Classic Voyages 779,700 (a,b) $ 17,933,100
_____________
TOTAL COMMON STOCKS
(cost $218,543,009) $205,716,032
=============
Convertible Preferred Stocks-.0%
Health Technology; Fresenius Medical Care Holdings, Ser. D
(cost $27,904) 149,700 (a) $ 8,608
=============
Principal
Short-Term Investments-19.2% Amount
________________
U.S. Treasury Bills: 5.40%, 4/16/98 $ 5,337,000 $ 5,324,885
5.34%, 4/23/98 32,600,000 32,493,398
5.04%, 5/28/98 14,250,000 14,135,715
_____________
TOTAL SHORT-TERM INVESTMENTS
(cost $51,955,438) $ 51,953,998
=============
TOTAL INVESTMENTS (cost $270,526,351) 95.1% $257,678,638
======= =============
CASH AND RECEIVABLES (NET) 4.9% $ 13,381,067
======= =============
NETASSETS 100.0% $271,059,705
======= =============
Notes to Statement of Investments:
(a) Non-income producing.
(b) Investment in non-controlled affiliates (cost $124,205,882)-see Note 1(d).
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $270,526,351 $257,678,638
Cash....................................... 7,604,681
Receivable for investment securities sold.. 6,339,306
Receivable for shares of Common Stock subscribed 21,215
Prepaid expenses and other assets 37,757
_____________
271,681,597
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 204,779
Due to Distributor......................... 57,767
Payable for shares of Common Stock redeemed 201,824
Accrued expenses and other liabilities..... 157,522
_____________
621,892
_____________
NET ASSETS.................................................................. $271,059,705
============
REPRESENTED BY: Paid-in capital............................ $302,213,829
Accumulated investment (loss).............. (8,084,631)
Accumulated net realized gain (loss) on investments (10,221,780)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4 (12,847,713)
_____________
NET ASSETS.................................................................. $271,059,705
============
NET ASSET VALUE PER SHARE
_____________________________
Class A Class B Class C Class R
_____________ _____________ _____________ _____________
Net Assets...................................... $270,844,978 $189,694 $10,946 $14,087
Shares Outstanding.............................. 21,556,755 15,356 891 1,117
NET ASSET VALUE PER SHARE....................... $12.56 $12.35 $12.29 $12.61
======= ======= ======= =======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1998 (UNAUDITED)
INVESTMENT INCOME
INCOME: Cash dividends (net of $7,082 foreign taxes
<S> <C> <C>
withheld at source).............. $ 89,640
Interest............................. 177,458
_____________
Total Income................... $ 267,098
EXPENSES: Management fee-Note 3(a)............. 1,180,235
Shareholder servicing costs-Note 3(c) 598,414
Interest expense-Note 2.............. 341,966
Loan commitment fees-Note 2.......... 67,463
Directors' fees and expenses-Note 3(d) 29,422
Prospectus and shareholders' reports. 24,431
Custodian fees-Note 3(c)............. 13,743
Registration fees.................... 5,219
Distribution fees-Note 3(b).......... 841
Professional fees.................... 286
Miscellaneous........................ 2,355
_____________
Total Expenses................. 2,264,375
_____________
INVESTMENT (LOSS)-NET................................................. (1,997,277)
_____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments:
Unaffiliated issuers........... $ 1,959,655
Affiliated issuers............. (8,315,522) (6,355,867)
_____________
Net unrealized appreciation (depreciation) on
investments:
Unaffiliated issuers........... (53,554,628)
Affiliated issuers............. (21,430,686) (74,985,314)
_____________ _____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (81,341,181)
_____________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................ $(83,338,458)
==============
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 1998 Year Ended
(Unaudited) September 30, 1997
_________________ __________________
<S> <C> <C>
OPERATIONS:
Investment (loss)-net.............................................. $ (1,997,277) $ (6,087,354)
Net realized gain (loss) on investments............................ (6,355,867) 5,553,495
Net unrealized appreciation (depreciation) on investments.......... (74,985,314) 26,988,890
______________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations.. (83,338,458) 26,455,031
______________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares................................................... 226,693,300 261,013,384
Class B shares................................................... 69,721 160,108
Class C shares................................................... 9,638 55,481
Class R shares................................................... 5,330 8,115
Cost of shares redeemed:
Class A shares................................................... (278,176,917) (392,860,490)
Class B shares................................................... (92,820) (257,314)
Class C shares................................................... - (70,507)
Class R shares................................................... (3,000) (14,074)
Net assets received in connection with reorganization-Note 1....... - 30,745,645
______________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions (51,494,748) (101,219,652)
______________ _____________
Total Increase (Decrease) in Net Assets........................ (134,833,206) (74,764,621)
NET ASSETS:
Beginning of Period................................................ 405,892,911 480,657,532
______________ _____________
End of Period...................................................... $ 271,059,705 $ 405,892,911
============== =============
Investment (loss).................................................... $ (8,084,631) $ (6,087,354)
============== =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
________________________________________
Six Months Ended
March 31, 1998 Year Ended
(Unaudited) September 30, 1997
__________ __________________
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold............................................................ 17,390,145 17,802,990
Shares issued in connection with reorganization-Note 1................. ---- 2,158,851
Shares redeemed........................................................ (21,272,387) (26,966,317)
___________ ___________
Net Increase (Decrease) in Shares Outstanding............... (3,882,242) (7,004,476)
=========== ===========
Class B
________
Shares sold............................................................ 4,959 11,338
Shares issued in connection with reorganization-Note 1................. ---- 24,105
Shares redeemed........................................................ (7,152) (18,752)
___________ ___________
Net Increase (Decrease) in Shares Outstanding............... (2,193) 16,691
=========== ===========
Class C
________
Shares sold............................................................ 766 3,536
Shares issued in connection with reorganization-Note 1................. ---- 1,501
Shares redeemed........................................................ ---- (5,010)
___________ ___________
Net Increase (Decrease) in Shares Outstanding............... 766 27
=========== ===========
Class R
________
Shares sold............................................................ 393 569
Shares issued in connection with reorganization-Note 1................. ---- 975
Shares redeemed........................................................ (234) (936)
___________ ___________
Net Increase (Decrease) in Shares Outstanding............... 159 608
=========== ===========
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 Shares
____________________________________________________________________
Six Months Ended
March 31, 1998 Year Ended September 30,
_______________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
__________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.94 $14.81 $16.31 $15.35 $18.53 $18.11
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income (loss)-net........ (.21) (.33) (.12) .40 .40 .21
Net realized and unrealized gain (loss)
on investments.................... (3.17) 1.46 .01 1.23 (.56) 1.82
_______ _______ _______ _______ _______ _______
Total from Investment Operations.... (3.38) 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...... $12.56 $15.94 $14.81 $16.31 $15.35 $18.53
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN(1).............. (21.20%)(2) 7.63% (.71%) 11.21% (1.50%) 12.04%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to
average net assets................ .59%(2) 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................ .13%(2) .47% .39% .08% .09% .04%
Ratio of net investment income (loss) to
average net assets................ (.63%)(2) (1.44%) (.66%) 2.55% 2.10% 1.24%
Portfolio Turnover Rate............. 25.17%(2) 76.28% 131.43% 298.60% 158.05% 102.23%
Average commission rate paid(3)..... $.0502 $.0531 $.0961 .- .- .-
Net Assets, end of period (000's Omitted) $270,845 $405,599 $480,638 $572,077 $570,360 $596,369
(1) Exclusive of sales load.
(2) Not annualized.
(3) For fiscal years beginning October 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and sales
of investment securities.
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
__________________________________________
Six Months Ended
March 31, 1998 Year Ended September 30,
_______________________
PER SHARE DATA: (Unaudited) 1997 1996(1)
__________ _______ _______
<S> <C> <C> <C>
Net asset value, beginning of period........................... $15.74 $14.73 $14.84
_______ _______ _______
Investment Operations:
Investment (loss)-net.......................................... (.19) (.22) (.10)
Net realized and unrealized gain (loss) on investments......... (3.20) 1.23 (.01)
_______ _______ _______
Total from Investment Operations............................... (3.39) 1.01 (.11)
_______ _______ _______
Net asset value, end of period................................. $12.35 $15.74 $14.73
======= ======= =======
TOTAL INVESTMENT RETURN(2)......................................... (21.54%)(3) 6.86% (.74%)(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets.............. .98%(3) 1.95% 1.47%(3)
Ratio of interest expense and loan commitment fees to average net assets .13%(3) .43% .49%(3)
Ratio of investment (loss)-net to average net assets........... (1.02%)(3) (2.22%) (1.40%)(3)
Portfolio Turnover Rate........................................ 25.17%(3) 76.28% 131.43%
Average commission rate paid(4)................................ $.0502 $.0531 $.0961
Net Assets, end of period (000's Omitted)...................... $190 $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.
</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
__________________________________________
Six Months Ended
March 31, 1998 Year Ended September 30,
_______________________
PER SHARE DATA: (Unaudited) 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......... (3.29) 1.30 .23
_______ _______ _______
Total from Investment Operations............................... (3.47) .93 (.01)
_______ _______ _______
Net asset value, end of period................................. $12.29 $15.76 $14.83
======= ======= =======
TOTAL INVESTMENT RETURN(3)......................................... (22.02%)(4) 6.27% (.07%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets.............. 1.46%(4) 1.99% 1.42%(4)
Ratio of interest expense and loan commitment fees to average net assets .08%(4) .53% .47%(4)
Ratio of investment (loss)-net to average net assets........... (1.34%)(4) (2.37%) (1.32%)(4)
Portfolio Turnover Rate........................................ 25.17%(4) 76.28% 131.43%
Average commission rate paid(5)................................ $.0502 $.0531 $.0961
Net Assets, end of period (000's Omitted)...................... $11 $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.
</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 RShares
__________________________________________
Six Months Ended
March 31, 1998 Year Ended September 30,
_______________________
PER SHARE DATA: (Unaudited) 1997 1996(1)
__________ _______ _______
<S> <C> <C> <C>
Net asset value, beginning of period........................... $16.02 $14.84 $14.84
_______ _______ _______
Investment Operations:
Investment (loss)-net.......................................... (.07) (.10) (.02)
Net realized and unrealized gain (loss) on investments......... (3.34) 1.28 .02
_______ _______ _______
Total from Investment Operations............................... (3.41) 1.18 -
_______ _______ _______
Net asset value, end of period................................. $12.61 $16.02 $14.84
======= ======= =======
TOTAL INVESTMENT RETURN............................................ (21.29%)(2) 7.95% -
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets.............. .68%(2) .76% .73%(2)
Ratio of interest expense and loan commitment fees to average net assets .12%(2) .30% .35%(2)
Ratio of investment (loss)-net to average net assets........... (.71%)(2) (.90%) (.56%)(2)
Portfolio Turnover Rate........................................ 25.17%(2) 76.28% 131.43%
Average commission rate paid(3)................................ $.0502 $.0531 $.0961
Net Assets, end of period (000's Omitted)...................... $14 $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 (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Aggressive Growth Fund (the "Fund") is a series of
Dreyfus Premier Equity Fund's, 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 three 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 September 9, 1996, the Board of Directors of the Fund approved an
Agreement and Plan of Reorganization providing for the transfer of all or
substantially all of the assets and liabilities of Premier Strategic Growth
Fund to the Fund, in a tax free exchange for shares of Common Stock of the
Fund at net asset value and the assumption of stated liabilities (the
"Exchange"). The Exchange was approved by Premier Strategic Growth Fund
shareholders on December 16, 1996, and became effective after the close of
business on December 27, 1996, at which time the Fund issued 2,158,851 Class
A shares valued at $14.07 per share, 24,105 Class B shares valued at $13.97
per share, 1,501 Class C shares valued at $14.03 per share and 975 Class R
shares valued at $14.12 per share to the respective Class A, Class B, Class C
and Class R shareholders of Premier Strategic Growth Fund.
With respect to Premier Strategic Growth Fund 1,031,060 Class A shares
valued at $29.46 per share, 11,517 Class B shares valued at $29.24 per share,
720 Class C shares valued at $29.24 per share and 467 Class R shares valued
at $29.51 per share representing combined net assets of $30,746,605, were
exchanged for the respective Class A, Class B, Class C and Class R shares of
the Fund.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue 200 million shares of
$1.00 par value Common Stock in each of the following classes of shares:
Class A, Class B, Class C and Class R shares. Class A shares are subject to a
sales charge imposed at the time of purchase, Class B shares are subject to a
contingent deferred sales charge ("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.
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.
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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 March 31,
1998:
<TABLE>
Shares
BeginningPurchases/ Sales/ End of Dividend Market Value
Name of issuer of PeriodIncreases Decreases Period Income 3/31/98
_____________ _____________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Advanced Photonix, Cl. A 975,000 - - 975,000 - $ 1,157,813
American Classic Voyages - 835,000 55,300 779,700 - 17,933,100
Bentley Pharmaceuticals 150,000 220,000 - 370,000 - 1,063,750
CCA Cos. 335,000 345,000 - 680,000 - 5,015,000
Celerity Systems - 260,000 - 260,000 - 755,625
Chromatics Color Science 720,000 442,500 58,500 1,104,000 - 13,662,000
Complete Management 960,000 64,500 174,300 850,200 - 7,226,700
Crystal Systems Solutions* 560,000 - 392,500 167,500 - 3,088,281
EA Industries 800,000 20,000 80,000 740,000 - 4,255,000
Four Media* 605,000 - 345,000 260,000 - 2,437,500
HemaCare 600,000 - - 600,000 - 412,500
Hemispherx BioPharmaceutical 600,000 575,000 - 1,175,000 - 3,598,438
Home Security International 230,000 67,500 - 297,500 - 3,123,750
Image Guided Technologies 280,000 - - 280,000 - 770,000
Imaging Technologies* 650,000 - 105,000 545,000 - 1,566,875
Larson Davis* 675,000 - 115,000 560,000 - 1,610,000
MacroChem 875,000 140,000 15,000 1,000,000 - 11,187,500
Microvision* 185,000 115,000 62,500 237,500 - 3,443,750
NeoPharm* 440,000 - 90,000 350,000 - 1,334,375
Newcom 350,000 300,000 - 650,000 - 10,075,000
Northstar Health Services 460,000 - 35,000 425,000 - 318,750
ONCOR 2,430,000 160,000 - 2,590,000 - 4,532,500
OnGard Systems 570,000 - - 570,000 - -
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Shares
BeginningPurchases/ Sales/ End of Dividend Market Value
Name of issuer of PeriodIncreases Decreases Period Income 3/31/98
_____________ _____________________________________________________________________________
OncorMed 770,000 - - 770,000 - $ 3,898,125
Preferred Employers Holdings 237,400 19,400 - 256,800 - 2,054,400
Sheldahl* 585,000 10,000 339,300 255,700 - 2,844,663
Smallworldwide, A.D.S.* 310,000 - 170,000 140,000 - 2,730,000
Stelax Industries 1,680,000 1,145,000 25,000 2,800,000 - 2,996,000
Transcend Therapeutics 300,000 - - 300,000 - 1,050,000
Triteal 900,000 - 900,000 - - -
Ultrafem 700,000 25,000 - 725,000 - 611,719
Ultralife Batteries 390,000 135,000 49,200 475,800 - 7,077,525
* No longer an affiliated issuer at March 31, 1998.
</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 LINE 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.
The average daily amount of borrowings outstanding under both agreements
during the period ended March 31, 1998 was approximately $10,379,000, with a
related weighted average annualized interest rate of 6.60%.
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
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Class A net assets, the Fund may deduct from payments to be made to the
Manager, or the Manager will bear such excess expense. No expense
reimbursement was required for the period ended March 31, 1998.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $10,436 during the period ended March 31, 1998 from commissions
earned on sales of the Fund's 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 March 31,
1998, Class B and Class C shares were charged $829 and $12, respectively,
pursuant to the Distribution Plan.
(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 March 31, 1998,
Class A, Class B and Class C shares were charged $393,113, $277 and $4,
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 March 31,1998, the Fund was charged $152,940 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 March 31, 1998, the
Fund was charged $13,743 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 following summarizes the aggregate amount of purchases and sales of
investment securities, excluding short-term securities, during the period
ended March 31, 1998:
<TABLE>
Purchases Sales
____________ ______________
<S> <C> <C>
Unaffiliated issuers.................................... $40,146,461 $192,430,215
Affiliated issuers...................................... 39,594,207 12,605,209
____________ ______________
TOTAL............................................... $79,740,668 $205,035,424
============ ==============
</TABLE>
At March 31, 1998, accumulated net unrealized depreciation on investments
was $12,847,713, consisting of $51,412,318 gross unrealized appreciation and
$64,260,031 gross unrealized depreciation.
At March 31, 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).
Registration Mark
[Dreyfus lion "d" logo]
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 009SA983
Registration Mark
[Dreyfus logo]
Semi-Annual Report
DREYFUS PREMIER
AGGRESSIVE
GROWTH FUND
March 31, 1998
Registration Mark
