Dreyfus
Premier Aggressive
Growth Fund
ANNUAL REPORT September 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
16 Financial Highlights
21 Notes to Financial Statements
27 Report of Independent Auditors
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Premier Aggressive Growth Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Aggressive
Growth Fund, covering the 12-month period from October 1, 1999 through September
30, 2000. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Kevin Sonnett, CFA.
The Standard & Poor' s 500 Composite Stock Price Index ("S&P 500 Index") rose
more than 13% over the past 12 months, mostly during the fourth quarter of 1999.
Investor enthusiasm over technology stocks drove most major stock market indices
to new highs. Conversely, in the first nine months of 2000, the equity
investment environment was marked by dramatic price fluctuations. Additionally,
the moderating effects of the Federal Reserve Board's (the "Fed") interest-rate
hikes during the first half of 2000 helped the Fed to achieve its goal of
slowing the U.S. economy. Other factors such as higher energy prices and a weak
euro also served to slow economic growth.
Since stocks provided returns well above their historical averages during the
second half of the 1990s, some investors may have developed unrealistic
expectations. Recent volatility has reminded investors of both the risks of
investing and the importance of fundamental research and investment selection.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620
Thank you for investing in Dreyfus Premier Aggressive Growth Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF FUND PERFORMANCE
Kevin Sonnett, CFA, Portfolio Manager
How did Dreyfus Premier Aggressive Growth Fund perform relative to its
benchmark?
For the 12-month period ended September 30, 2000, Dreyfus Premier Aggressive
Growth Fund produced a total return of 32.33% for Class A shares, 30.91% for
Class B shares, 31.20% for Class C shares and 32.14% for Class R shares. In
addition, from its February 1, 2000 inception through September 30, 2000, the
fund' s Class T shares produced a total return of 0.26%.(1) This compares
favorably to a total return of 13.27% for the fund's benchmark, the Standard &
Poor' s 500 Composite Stock Price Index ("S&P 500 Index"). The Russell Midcap
Growth Index also produced a total return of 60.37% for the same period.(2)
We attribute the fund's strong performance to our "bottom-up" stock selection
strategy. During the first half of the reporting period, the fund's performance
was fueled by our technology holdings, an area in which the fund made some very
good stock selections. Although technology stocks moved in and out of favor
during the months that followed, many of these stocks made a strong comeback
toward the end of the period, which benefited the fund's performance. In
addition, our investments in the health care sector and consumer finance
industry group boosted performance.
What is the fund's investment approach?
The fund seeks capital appreciation by investing in the stocks of growth
companies of any size. Currently, the fund is focusing primarily on midcap
companies. In choosing stocks, the fund uses a "bottom-up" approach that
emphasizes individual stock selection over economic and industry trends. In
particular, the fund looks for companies with strong management, innovative
products and services, superior industry positions and the potential for strong
revenue and/or earnings growth rates. The fund's investments in small- and
mid-cap companies The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
carry additional risks because their earnings are less predictable, their share
prices more volatile and their securities less liquid than those of larger
companies.
What other factors influenced the fund's performance?
During the first half of the reporting period, the main factor influencing
performance was the strong gains achieved by technology stocks relative to the
overall stock market. By mid-April, however, a broad-based sell-off in
technology stocks contributed to a decline in many major stock market indices.
In response, we took advantage of this large-scale selling by adding to some of
our favorite technology positions. At the same time, we reduced or eliminated
our holdings of stocks in which we had less confidence. As a result, we were
able to improve the overall quality of the technology stocks that the fund has
invested in. When technology stocks rebounded during July and August, we enjoyed
attractive returns.
Health care stocks also contributed positively to the fund's performance,
particularly those within the biotech and specialty pharmaceutical industries.
While we added incrementally to this area during the year, which also helped the
fund's overall return, our selection of individual stocks drove performance. For
example, the fund benefited from its holdings in Andrx Corporation, a
pharmaceutical company that produces and sells generic versions of currently
marketed drugs. Andrx' s stock price rose during the period in response to its
generic version of Prilosec, a treatment for ulcers and reflux disease which is
currently the best-selling drug in the world. In addition, toward the end of the
period we benefited from our holdings in Ivax Corporation based on news of their
soon-to-be launched generic chemotherapy drug.
Although financial stocks did not perform very well during the first half of the
reporting period, our limited exposure to the area helped cushion the effects of
declines in this area on overall fund performance.
What is the fund's current strategy?
We have been concentrating on identifying attractively valued stocks of
companies, that in our view, have strong secular growth prospects, solid
management teams and compelling valuations. Despite the broad-based technology
sell-off, we have continued to find many such companies within the technology
sector. Specifically, we have invested in many companies participating in
building the Internet infrastructure. These include network equipment,
communications semi-conductors and enterprise software companies. Furthermore,
we have found many exciting opportunities in the specialty pharmaceutical and
biotech areas. Of course, stock prices of companies in these sectors can be
highly volatile and carry greater risks than more established sectors.
As of the end of the reporting period, the fund's assets were allocated among
market sectors as follows: Technology -- 34.9%; Healthcare -- 18.9%; Business
Services -- 16.6% ; Telecommunications Services -- 9.3%; Consumer Cyclicals --
6.3% ; Utilities -- 2.7%; and Capital Goods --4.2%, with the balance in cash and
short-term investments. Of course, fund composition is subject to change at any
time.
October 16, 2000
(1) 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 AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD
THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
(2) SOURCE: LIPPER INC. -- REFLECTS THE REINVESTMENT OF 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. THE RUSSELL MIDCAP GROWTH INDEX IS A WIDELY ACCEPTED,
UNMANAGED INDEX OF MEDIUM-CAP STOCK MARKET PERFORMANCE AND MEASURES THE
PERFORMANCE OF THOSE RUSSELL MIDCAP COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS
AND HIGHER FORECASTED GROWTH VALUES.
The Fund
FUND PERFORMANCE
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
((+)) SOURCE: LIPPER INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES OF DREYFUS
PREMIER AGGRESSIVE GROWTH FUND ON 6/23/69 (INCEPTION DATE) TO A $10,000
INVESTMENT MADE IN THE STANDARD & 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, CLASS R AND CLASS T 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 & POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A WIDELY
ACCEPTED, UNMANAGED INDEX OF U.S. 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.
<TABLE>
<CAPTION>
Average Annual Total Returns AS OF 9/30/00
Inception From
Date 1 Year 5 Years 10 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
<S> <C> <C> <C> <C> <C>
WITH SALES CHARGE (5.75%) 6/23/69 24.66% (5.66)% 3.08% 8.39%
WITHOUT SALES CHARGE 6/23/69 32.33% (4.53)% 3.69% 8.60%
CLASS B SHARES
WITH REDEMPTION((+)) 1/3/96 26.91% -- -- (5.90)%
WITHOUT REDEMPTION 1/3/96 30.91% -- -- (5.50)%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 1/3/96 30.20% -- -- (5.27)%
WITHOUT REDEMPTION 1/3/96 31.20% -- -- (5.27)%
CLASS R SHARES 1/3/96 32.14% -- -- (4.72)%
Actual Aggregate Total Returns as of 9/30/00
------------------------------------------------------------------------------------------------------------------------------------
CLASS T SHARES
WITH SALES CHARGE (4.5%) 2/1/00 -- -- -- (4.26)%
WITHOUT SALES CHARGE 2/1/00 -- -- -- 0.26%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4% AND
IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
The Fund
STATEMENT OF INVESTMENTS
September 30, 2000
STATEMENT OF INVESTMENTS
COMMON STOCKS--92.7% Shares Value ($)
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AUTO PARTS & EQUIPMENT--.9%
Gentex 53,775 (a) 1,344,375
BIOTECHNOLOGY--5.1%
Alexion Pharmaceuticals 6,875 (a) 783,750
Cephalon 20,950 (a) 1,016,075
Genzyme-General Division 32,075 (a) 2,187,114
Maxygen 13,775 714,578
Myriad Genetics 19,350 (a) 1,664,100
PE Corp.-Celera Genomics 10,075 (a) 1,003,722
7,369,339
BUSINESS SERVICES--16.6%
Amdocs 34,750 (a) 2,167,531
Catalina Marketing 63,450 (a) 2,387,306
Convergys 45,100 (a) 1,753,263
Diamond Technology Partners 41,750 (a) 3,099,938
Digex 19,825 (a) 929,297
Exodus Communications 24,775 (a) 1,223,266
Lamar Advertising 28,675 (a) 1,086,066
Sapient 26,000 (a) 1,057,875
Scient 90,600 (a) 1,896,937
TMP Worldwide 26,425 (a) 2,127,212
True North Communications 54,350 1,943,013
Wireless Facilities 75,925 4,379,923
24,051,627
COMPUTER NETWORKING--1.6%
Turnstone Systems 49,875 2,312,953
COMPUTER SOFTWARE/SERVICES--10.1%
CNET Networks 53,975 (a) 1,314,797
Interwoven 17,975 2,032,298
Macromedia 8,470 (a) 684,482
Macrovision 27,425 (a) 2,221,425
Mercury Interactive 18,850 (a) 2,954,737
Quest Software 21,550 (a) 1,338,457
Rational Software 60,150 (a) 4,172,906
14,719,102
DISTRIBUTION--.6%
Patterson Dental 41,300 (a) 929,250
COMMON STOCKS (CONTINUED) Shares Value ($)
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ELECTRONICS--1.4%
Technitrol 14,350 1,449,350
Titan 37,950 (a) 626,175
2,075,525
FINANCIAL SERVICES--2.3%
Metris Cos. 85,875 3,392,062
HEALTHCARE SERVICES--4.2%
Andrx Group 40,625 (a) 3,793,359
Laboratory Corporation of America Holdings 18,825 (a) 2,254,294
6,047,653
MANUFACTURING--.1%
Zomax 26,050 (a) 182,350
MEDICAL SUPPLIES & EQUIPMENT--1.3%
MiniMed 20,475 (a) 1,829,953
OIL SERVICES--2.8%
BJ Services 23,675 (a) 1,447,134
Nabors Industries 50,425 (a) 2,642,270
4,089,404
PHARMACEUTICALS--9.6%
Allergan 18,125 1,530,430
Celgene 54,125 (a) 3,220,437
Forest Laboratories 24,625 (a) 2,824,180
IVAX 91,050 (a) 4,188,300
King Pharmaceuticals 25,100 (a) 839,281
Regeneron Pharmaceuticals 42,425 (a) 1,384,116
13,986,744
PUBLISHING & BROADCASTING--1.4%
Pegasus Communications 40,775 (a) 1,969,942
RETAIL--1.0%
Men's Wearhouse 51,050 (a) 1,445,353
SEMICONDUCTORS & EQUIPMENT--10.9%
Atmel 91,500 (a) 1,389,656
Brooks Automation 35,900 (a) 1,189,188
Cree 12,700 (a) 1,476,375
Integrated Device Technology 19,650 (a) 1,778,325
Intersil Holding 36,175 1,804,228
Microchip Technology 54,825 (a) 1,812,652
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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SEMICONDUCTORS & EQUIPMENT (CONTINUED)
NVIDIA 13,475 (a) 1,103,266
Novellus Systems 20,575 (a) 958,023
Semtech 35,650 (a) 1,537,406
TranSwitch 28,025 (a) 1,786,594
Virata 15,375 1,016,672
15,852,385
TELECOMMUNICATION EQUIPMENT--10.8%
ADTRAN 42,525 (a) 1,809,306
CIENA 14,750 (a) 1,811,484
DMC Stratex Networks 123,100 (a) 1,977,294
Ditech Communications 34,475 (a) 1,413,475
Efficient Networks 19,975 (a) 745,317
Extreme Networks 21,025 (a) 2,407,363
Harris 102,900 2,926,219
Netro 7,850 (a) 465,113
Tekelec 66,225 (a) 2,177,147
15,732,718
TELECOMMUNICATION SERVICES--9.3%
Crown Castle International 107,375 (a) 3,335,336
Focal Communications 33,300 (a) 514,069
Focus Affiliates (Warrants-expire 12/10/2000) 102,500 (a) --
Inet Technologies 86,350 (a) 2,525,738
McLeodUSA, Cl. A 112,900 (a) 1,615,881
Partner Communications, ADR 132,200 1,016,288
Spectrasite Holdings 117,125 2,174,133
TeleCorp PCS 23,775 451,725
Time Warner Telecom, Cl. A 27,375 (a) 1,322,555
Tritel 33,475 479,111
13,434,836
UTILITIES--2.7%
Calpine 11,150 (a) 1,163,781
Dynegy, Cl. A 20,150 1,148,550
Southern Energy 50,500 1,584,437
3,896,768
TOTAL COMMON STOCKS
(cost $130,909,874) 134,662,339
Principal
SHORT-TERM INVESTMENTS--6.5% Amount ($) Value ($)
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COMMERCIAL PAPER;
American General Finance,
6.68%, 10/2/2000 7,370,000 7,368,632
Household Finance,
6.65%, 10/2/2000 2,045,000 2,044,622
TOTAL SHORT-TERM INVESTMENTS
(cost $9,413,255) 9,413,254
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TOTAL INVESTMENTS (cost $140,323,129) 99.2% 144,075,593
CASH AND RECEIVABLES (NET) .8% 1,150,847
NET ASSETS 100.0% 145,226,440
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 140,323,129 144,075,593
Receivable for investment securities sold 9,131,033
Receivable for shares of Common Stock subscribed 38,633
Dividends receivable 8,475
Prepaid expenses 12,015
153,265,749
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 167,496
Cash overdraft due to Custodian 281,577
Payable for investment securities purchased 4,385,460
Payable for shares of Common Stock redeemed 3,108,474
Accrued expenses 96,302
8,039,309
--------------------------------------------------------------------------------
NET ASSETS ($) 145,226,440
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 191,032,960
Accumulated net realized gain (loss) on investments (49,558,984)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 3,752,464
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSETS ($) 145,226,440
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 142,756,285 1,639,585 806,020 23,548 1,002.17
Shares Outstanding 12,064,452 143,950 70,181 1,995 85.837
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 11.83 11.39 11.48 11.80 11.68
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Year Ended September 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 676,723
Cash dividends 101,162
TOTAL INCOME 777,885
EXPENSES:
Management fee--Note 3(a) 1,162,038
Shareholder servicing costs--Note 3(c) 660,493
Professional fees 62,212
Registration fees 42,655
Prospectus and shareholders' reports 41,878
Custodian fees--Note 3(c) 35,584
Directors' fees and expenses--Note 3(d) 24,637
Distribution fees--Note 3(b) 12,332
Interest expense--Note 2 485
Miscellaneous 4,750
TOTAL EXPENSES 2,047,064
INVESTMENT (LOSS) (1,269,179)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 52,135,694
Net unrealized appreciation (depreciation) on investments (8,528,069)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 43,607,625
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 42,338,446
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended September 30,
-----------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (1,269,179) (1,177,210)
Net realized gain (loss) on investments 52,135,694 (42,856,475)
Net unrealized appreciation (depreciation)
on investments (8,528,069) 74,458,889
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 42,338,446 30,425,204
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 290,405,169 430,006,751
Class B shares 1,775,283 248,030
Class C shares 845,514 70,596
Class R shares 6,262 12,535
Class T shares 1,000 --
Cost of shares redeemed:
Class A shares (324,038,034) (447,139,797)
Class B shares (269,294) (216,349)
Class C shares (121,431) (17,414)
Class R shares (8,927) (2,299)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (31,404,458) (17,037,947)
TOTAL INCREASE (DECREASE) IN NET ASSETS 10,933,988 13,387,257
--------------------------------------------------------------------------------
NET ASSETS ($)
Beginning of Period 134,292,452 120,905,195
END OF PERIOD 145,226,440 134,292,452
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30,
2000 FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended September 30,
-----------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(B)
Shares sold 26,869,924 50,297,987
Shares redeemed (29,795,988) (52,184,629)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,926,064) (1,886,642)
--------------------------------------------------------------------------------
CLASS B(B)
Shares sold 147,587 32,602
Shares redeemed (22,826) (26,803)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 124,761 5,799
--------------------------------------------------------------------------------
CLASS C
Shares sold 71,422 8,244
Shares redeemed (10,229) (2,080)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 61,193 6,164
--------------------------------------------------------------------------------
CLASS R
Shares sold 457 1,352
Shares redeemed (786) (282)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (329) 1,070
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 86 --
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30,
2000 FOR CLASS T SHARES.
(B) DURING THE PERIOD ENDED SEPTEMBER 30, 2000, 1,641 CLASS B SHARES
REPRESENTING $19,449 WERE AUTOMATICALLY CONVERTED TO 1,583 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended September 30,
--------------------------------------------------------------------
CLASS A SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 8.94 7.16 15.94 14.81 16.31
Investment Operations:
Investment (loss)--net (.10)(a) (.08)(a) (.12)(a) (.33) (.12)
Net realized and unrealized gain (loss)
on investments 2.99 1.86 (8.66) 1.46 .01
Total from Investment Operations 2.89 1.78 (8.78) 1.13 (.11)
Distributions:
Dividends from investment
income--net -- -- -- -- (.28)
Dividends from net realized
gain on investments -- -- -- -- (1.11)
Total Distributions -- -- -- -- (1.39)
Net asset value, end of period 11.83 8.94 7.16 15.94 14.81
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) 32.33 24.86 (55.08) 7.63 (.71)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.31 1.41 1.24 1.20 1.11
Ratio of interest expense and
loan commitment fees
to average net assets .00(c) .00(c) .19 .47 .39
Ratio of net investment income
(loss) to average net assets (.81) (.90) (1.04) 1.44 (.66)
Portfolio Turnover Rate 217.69 165.12 106.58 76.28 131.43
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 142,756 134,027 120,782 405,599 480,638
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
(C) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TOIAL STATEMENTS.
Year Ended September 30,
--------------------------------------------------------------------
CLASS B SHARES 2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 8.67 7.01 15.74 14.73 14.84
Investment Operations:
Investment (loss)--net (.19)(b) (.15)(b) (.22)(b) (.22) (.10)
Net realized and unrealized gain
(loss) on investments 2.91 1.81 (8.51) 1.23 (.01)
Total from Investment Operations 2.72 1.66 (8.73) 1.01 (.11)
Net asset value, end of period 11.39 8.67 7.01 15.74 14.73
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 30.91 23.68 (55.46) 6.86 (.74)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 2.10 2.31 2.09 1.95 1.47(d)
Ratio of interest expense and
loan commitment fees
to average net assets .00(e) .00(e) .19 .43 .49(d)
Ratio of net investment (loss)
to average net assets (1.60) (1.81) (1.89) (2.22) (1.40)(d)
Portfolio Turnover Rate 217.69 165.12 106.58 76.28 131.43
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,640 166 94 276 13
(A) FROM JANUARY 3, 1996 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
(E) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended September 30,
--------------------------------------------------------------------
CLASS C SHARES 2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 8.75 7.06 15.76 14.83 14.84
Investment Operations:
Investment (loss)--net (b) (.20) (.15) (.18) (.37) (.24)
Net realized and unrealized gain
(loss) on investments 2.93 1.84 (8.52) 1.30 .23
Total from Investment Operations 2.73 1.69 (8.70) .93 (.01)
Net asset value, end of period 11.48 8.75 7.06 15.76 14.83
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 31.20 23.94 (55.20) 6.27 (.07)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 2.05 2.25 2.39 1.99 1.42(d)
Ratio of interest expense
and loan commitment fees
to average net assets .00(e) .00(e) .07 .53 .47(d)
Ratio of net investment (loss)
to average net assets (1.57) (1.70) (1.90) (2.37) (1.32)(d)
Portfolio Turnover Rate 217.69 165.12 106.58 76.28 131.43
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 806 79 20 2 1
(A) FROM JANUARY 3, 1996 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
(E) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended September 30,
--------------------------------------------------------------------
CLASS R SHARES 2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 8.93 7.16 16.02 14.84 14.84
Investment Operations:
Investment (loss)-- net (.11)(b) (.10)(b) (.15)(b) (.10) (.02)
Net realized and unrealized gain
(loss) on investments 2.98 1.87 (8.71) 1.28 .02
Total from Investment Operations 2.87 1.77 (8.86) 1.18 --
Net asset value, end of period 11.80 8.93 7.16 16.02 14.84
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 32.14 24.72 (55.31) 7.95 --
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.38 1.70 1.57 .76 .73(c)
Ratio of interest expense and
loan commitment fees
to average net assets .00(d) .00(d) .16 .30 .35(c)
Ratio of net investment (loss)
to average net assets (.89) (1.16) (1.30) (.90) (.56)(c)
Portfolio Turnover Rate 217.69 165.12 106.58 76.28 131.43
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 24 21 9 15 5
(A) FROM JANUARY 3, 1996 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
(D) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
</TABLE>
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended
CLASS T SHARES September 30, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.65
Investment Operations:
Investment (loss)-net (.23)(b)
Net realized and unrealized gain (loss)
on investments .26
Total from Investment Operations .03
Net asset value, end of period 11.68
--------------------------------------------------------------------------------
TOTAL RETURN (%) .26(c,d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio expenses to average net assets 2.17(c)
Ratio of net investment (loss)
to average net assets (1.85)(c
Portfolio Turnover Rate 217.69(c)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30,
2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
(D) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
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 Fund' s, 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 three 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"), which is a wholly-owned subsidiary of Mellon Financial
Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue 100 million shares of $1.00 par value Common Stock in
each of the following classes of shares: Class A, Class B, Class C, Class R and
Class T shares. Class A and Class T shares are subject to a sales charge imposed
at the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase, (Class B shares automatically convert to Class A shares after six
years) , 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 series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 custody
agreement, the fund received net earnings credits of $5,791 during the period
ended September 30, 2000 based on available cash balances left on deposit.
Income earned under this arrangement is included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain 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.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the 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 $49,476,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 2000. If not
applied, the carryover expires in fiscal 2007.
During the period ended September 30, 2000, the fund reclassed $1,269,179 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The average daily amount of borrowings outstanding during the period ended
September 30, 2000 was approximately $7,100, with a related weighted average
annualized interest rate of 6.82% .
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, 2000.
DSC retained $14,411 during the period ended September 30, 2000 from commissions
earned on sales of fund shares.
(b) Under the Distribution Plan (the "Plan"), adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
average daily net assets of Class T shares. During the period ended September
30, 2000, Class B, Class C and Class T shares were charged $7,387, $4,943 and
$2, respectively, pursuant to the Plan, of which $6,146, $4,018 and $1 for Class
B, Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
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 ser
vices. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the fund
and providing reports and other information, and services related to the
maintenance of shareholder accounts. The distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The distributor determines the
amounts to be paid to Service Agents. During the period ended September 30,
2000, Class A, Class B, Class C and Class T shares were charged $383,171,
$2,462, $1,648 and $2, respectively, pursuant to the Shareholder Services Plan,
of which $226,531, $2,047, $1,339 and $1 for Class A, Class B, Class C and Class
T shares, respectively, were paid to DSC.
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, 2000, the fund was charged $195,131 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, 2000, the fund was
charged $35,584 pursuant to the custody agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective January 1, 2000,
each Board member who is not an "affiliated person" as defined in the Act
receives an annual fee of $40,000 and an attendance fee of $6,000 for each in
person meeting and $500 for telephone meetings. These fees are allocated among
the funds in the Fund Group. The Chairman of the Board receives an additional
25% of such compensation. Prior to January 1, 2000, each Board member who was
not an "affiliated person" as defined in the Act received from the Company an
annual fee of $4,500 and an attendance fee of $250 per meeting. The Chairman of
the Board received an additional 25% of The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
such compensation. Subject to the Company' s Emeritus Program Guidelines,
Emeritus Board members, if any, receive 50% of the fund's annual retainer fee
and per meeting fee paid at the time the Board member achieves emeritus status.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 2000, amounted to
$307,352,871 and $327,776,805, respectively.
At September 30, 2000, accumulated net unrealized appreciation on investments
was $3,752,464, consisting of $20,544,433 gross unrealized appreciation and
$16,791,969 gross unrealized depreciation.
At September 30, 2000, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
REPORT OF 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 series constituting Dreyfus Premier Equity Funds, Inc.) as of September 30,
2000, 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 auditing standards generally accepted
in the United States. 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, 2000 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, 2000, 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 accounting principals generally accepted
in the United States.
New York, New York
November 7, 2000
The Fund
NOTES
For More Information
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
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 009AR009
Premier Emerging Markets Fund
ANNUAL REPORT September 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
16 Financial Highlights
21 Notes to Financial Statements
27 Report of Independent Auditors
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Emerging Markets Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Emerging
Markets Fund, covering the 12-month period from October 1, 1999 through
September 30, 2000. Inside, you'll find valuable information about how the fund
was managed during the reporting period, including a discussion with the fund's
portfolio manager, Daniel Beneat.
The Morgan Stanley Capital International Emerging Markets Index fell over the
past 12 months in an investment environment marked by dramatic price
fluctuations. International stocks were adversely influenced by slowing economic
growth in the U.S. and Europe. Additionally, the moderating effects of the
Federal Reserve Board' s interest-rate hikes during 2000 to prevent domestic
inflationary pressures from reemerging also affected global economies along with
higher energy prices and a weak euro.
Since U.S. stocks provided returns well above their historical averages during
the second half of the 1990s, some investors may have developed unrealistic
expectations. Recent volatility has reminded investors of both the risks of
investing and the importance of fundamental research and investment selection.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620
Thank you for investing in Dreyfus Premier Emerging Markets Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF FUND PERFORMANCE
Daniel Beneat, Portfolio Manager
How did Dreyfus Premier Emerging Markets Fund perform relative to its benchmark
For the 12-month reporting period ended September 30, 2000, Dreyfus Premier
Emerging Markets Fund' s Class A shares produced a 7.91% total return, Class B
shares returned 7.04%, Class C shares returned 7.11% and Class R shares returned
8.16% .(1) This compares with the -1.29% total return provided by the Morgan
Stanley Capital International Emerging Markets Free Index (MSCI EMF) for the
same period.(2) In addition, from its February 1, 2000 inception through
September 30, 2000, the fund's Class T shares produced a total return of -20.19%
.(1)
We attribute the fund's performance to high levels of volatility in the emerging
markets. During the first half of the reporting period, the fund reported very
strong gains, benefiting from a wave of economic and market recoveries within
developing nations. However, beginning in mid-March, performance fell, giving
back many -- but not all -- of the fund's previous gains. The decline was partly
a response to the sharp, market-wide correction within the technology and
telecommunications industry groups. Investing in these market segments can be
volatile, and it can be important for investors to maintain a long-term
perspective.
What is the fund's investment approach?
The fund seeks to achieve long-term capital growth by investing in the stocks of
companies organized, or with a majority of their assets or businesses, in
emerging market countries. Normally, the fund will not invest more than 25% of
its total assets in the securities of companies in any single emerging market
country.
When selecting stocks for the fund, we use a macroeconomic, "top-down" country
allocation approach. We strive to identify and forecast key trends in global
economic variables, such as gross domestic product, inflation and interest
rates; investment themes, such as the impact of new technologies and the
globalization of industries and brands; rel The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
ative values of equity securities, bonds and cash; and long-term trends in
currency movements.
In addition, we use a "bottom-up" approach to company and sector analysis which
focuses on companies that exhibit strong growth and are reasonably valued. The
" bottom-up" approach evaluates growth factors for each company such as revenue
prospects, operating cash flow, ability to achieve consistent earnings and
management's ability to achieve higher operating margins.
What other factors influenced the fund's performance?
Two major factors influenced our performance over the past year. First, rising
oil prices negatively affected many emerging market countries, particularly
those that are net importers of oil, including South Korea, India and Brazil.
However, the fund was able to avoid the full brunt of these adverse effects
through our country allocation strategy. We chose to avoid those countries that
are net importers of oil, and instead we focused on Russian oil and gas
production companies, a move that proved beneficial for the fund. In response to
the global oil shortages, the United States agreed to release some of its oil
reserves and Saudi Arabia agreed to increase production. As a result, oil prices
began to stabilize toward the end of the reporting period. We continue to watch
the situation closely for events that could trigger a spike in oil prices,
including international events and the upcoming winter season.
The second major event affecting performance was the decline in technology and
telecommunications stocks that began in late March with the Microsoft verdict.
The fund was negatively influenced by its technology holdings in India and
Taiwan, two countries that depend on U.S. technology companies for much of their
business. In India, our investments were concentrated in companies that produce
software for major U.S. and international companies. When U.S. technology stocks
began to tumble, many of our Indian technology stocks also fell. The same was
true for many of the fund's holdings in Taiwan, an area that specializes in
outsourced manufacturing of U.S. semiconductors.
Within the telecommunications industry group, several developing global
companies saw their stock prices fall as they struggled to finance
the costly 3G licenses required for operation in the next stage of cellular
communication. Although the fund does not invest in these developing
telecommunications companies, their decline during the reporting period
negatively impacted global telecommunications stocks overall, which negatively
impacted the fund.
What is the fund's current strategy?
Toward the end of the reporting period, we began to selectively increase the
fund' s exposure to technology and telecommunications companies, largely because
we believed that many of these stocks were priced at levels that represented
excellent investment opportunities. In addition, we have begun to add to our
holdings within the financial sector -- primarily in banks. Now that central
banks have intervened in an attempt to help stabilize the euro and the U.S.
economy seems to be slowing, we have felt more comfortable investing in this
sector.
As of the end of the period, we have continued to emphasize our investments in
Latin America, especially in Brazil, Mexico and Chile. We have taken a more
cautious approach with respect to our investments in Europe, with the exception
of Russian oil and gas companies. Finally, we have continued to de-emphasize our
investments in Asia and South Africa, preferring to wait until these areas
present more positive investment environments.
October 16, 2000
(1) 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 AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD
THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE
DREYFUS CORPORATION PURSUANT TO AN AGREEMENT IN EFFECT THROUGH SEPTEMBER 30,
2001, AT WHICH TIME IT MAY BE EXTENDED, TERMINATED OR MODIFIED. HAD THESE
EXPENSES NOT BEEN ABSORBED, THE FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF NET DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY CAPITAL INTERNATIONAL
EMERGING MARKETS FREE (MSCI EMF) INDEX IS A MARKET CAPITALIZATION-WEIGHTED INDEX
COMPOSED OF COMPANIES REPRESENTATIVE OF THE MARKET STRUCTURE OF 26 EMERGING
MARKET COUNTRIES IN EUROPE, LATIN AMERICA AND THE PACIFIC BASIN.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Emerging
Markets Fund Class A shares, Class B shares, Class C shares and Class R shares
and the Morgan Stanley Capital International Emerging Markets Free Index
((+)) SOURCE: LIPPER INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE CLASS A, CLASS
B, CLASS C AND CLASS R SHARES OF DREYFUS PREMIER EMERGING MARKETS FUND ON
3/31/98 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE MORGAN STANLEY
CAPITAL INTERNATIONAL EMERGING MARKETS FREE INDEX ON THAT DATE. ALL DIVIDENDS
AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS T SHARES
WILL VARY FROM THE PERFORMANCE OF CLASS A, CLASS B, CLASS C AND CLASS R 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, THE MAXIMUM CONTINGENT DEFERRED SALES
CHARGE ON CLASS B AND CLASS C SHARES, AND ALL OTHER APPLICABLE FEES AND EXPENSES
ON ALL CLASSES. THE MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS FREE
INDEX, WHICH IS THE PROPERTY OF MORGAN STANLEY & CO. INCORPORATED, IS A MARKET
CAPITALIZATION WEIGHTED INDEX COMPOSED OF COMPANIES REPRESENTATIVE OF THE MARKET
STRUCTURE OF 26 EMERGING MARKET COUNTRIES IN EUROPE, LATIN AMERICA, AND THE
PACIFIC BASIN. THE MSCI/EMF INDEX EXCLUDES CLOSED MARKETS AND THOSE SHARES IN
OTHERWISE FREE MARKETS WHICH ARE NOT PURCHASABLE BY FOREIGNERS. THE INDEX DOES
NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES AND INCLUDES GROSS
DIVIDENDS REINVESTED. 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.
<TABLE>
<CAPTION>
Average Annual Total Returns AS OF 9/30/00
Inception From
Date 1 Year Inception
------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
<S> <C> <C> <C>
WITH SALES CHARGE (5.75%) 3/31/98 1.68% (1.42)%
WITHOUT SALES CHARGE 3/31/98 7.91% 0.92%
CLASS B SHARES
WITH REDEMPTION((+)) 3/31/98 3.04% (1.12)%
WITHOUT REDEMPTION 3/31/98 7.04% 0.08%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 3/31/98 6.11% 0.18%
WITHOUT REDEMPTION 3/31/98 7.11% 0.18%
CLASS R SHARES 3/31/98 8.16% 1.14%
Actual Aggregate Total Returns as of 9/30/00
------------------------------------------------------------------------------------------------------------------------------------
CLASS T SHARES
WITH SALES CHARGE (4.5%) 2/1/00 -- (23.77)%
WITHOUT SALES CHARGE 2/1/00 -- (20.19)%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4% AND
IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
The Fund
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
September 30, 2000
STATEMENT OF INVESTMENTS
COMMON STOCKS--94.2% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
BRAZIL--7.7%
<S> <C> <C>
Brasil Telecom Participacoes, ADR 1,000 58,250
Companhia Paranaense de Energia-Copel, ADR 10,000 88,750
Tele Norte Leste Participacoes, ADR 4,068 93,055
Uniao de Bancos Brasileiros, GDR 3,200 105,600
345,655
CHILE--3.5%
Compania de Telecomunicaciones de Chile, ADR 9,000 (a) 156,375
CHINA--3.9%
Huaneng Power International, ADR 7,000 112,000
Shanghai Petrochemical, ADR 4,800 63,900
175,900
CZECH REPUBLIC--1.4%
Ceske Radiokomunikace, GDR 1,000 (a) 37,500
Cesky Telecom, GDR 2,000 (a) 26,700
64,200
GREECE--3.8%
Hellenic Bottling 5,000 64,797
Hellenic Telecommunications Organization 1,000 19,134
National Bank of Greece 1,540 63,376
STET Hellas Telecommunications, ADR 1,600 (a) 23,800
171,107
HONG KONG--6.6%
Cheung Kong 4,000 48,353
China Mobile (Hong Kong), ADR 4,000 (a) 129,750
HSBC 8,555 119,600
297,703
HUNGARY--1.1%
MOL Magyar Olaj-es Gazipari, GDR 1,500 24,750
Magyar Tavkozlesi, ADR 1,000 23,563
48,313
INDIA--8.5%
Global Tele-Systems 2,000 50,418
Himachal Futuristic Communications 3,000 88,704
Polaris Software Lab 4,000 51,613
Sterlite Industries 4,000 14,929
Sterlite Optical Technologies 4,000 75,735
Sun Pharmaceutical Industries 3,000 28,359
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INDIA (CONTINUED)
Trigyn Technologies 2,000 22,495
Videsh Sanchar Nigam, GDR 1,200 9,750
Zee Telefilms 4,000 39,056
381,059
ISRAEL--5.2%
Bank Hapoalim 6,700 20,546
Bank Leumi Le-Israel 9,500 21,342
Bezeq Israeli Telecommunication 15,000 90,246
Teva Pharmaceutical Industries, ADR 1,400 102,463
234,597
MALAYSIA--4.0%
Malaysian Pacific Industries 5,000 32,949
Tenaga Nasional 50,000 147,454
180,403
MEXICO--11.6%
Corporacion Interamericana de Entretenimiento, Cl. B 12,898 (a) 62,516
Fomento Economico Mexicano, ADR 2,000 78,000
Grupo Financiero Banamex Accival, Cl. O 12,000 (a) 55,048
Grupo Televisa, GDR 2,000 (a) 115,375
Telefonos de Mexico, Cl. L, ADR 4,000 212,750
523,689
PERU--1.1%
Credicorp 7,000 50,750
RUSSIA--3.9%
AO Tatneft, ADR 4,000 39,750
OAO Lukoil, ADR 2,000 115,750
Surgutneftegaz, ADR 1,500 22,085
177,585
SINGAPORE--1.0%
DBS 4,000 44,156
SOUTH AFRICA--4.6%
Anglovaal Industries 50,000 53,822
Anglovaal Mining 4,000 13,283
DataTec 3,000 (a) 22,829
Profurn 76,735 45,654
Sappi 9,600 71,062
206,650
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA--10.3%
H&CB, GDR 1,700 (b) 40,460
Hite Brewery 1,664 67,073
Kookmin Bank, GDR 7,000 (b) 86,975
Korea Electric Power, ADR 5,000 65,313
Korea Telecom, ADR 1,000 33,625
Locus 1,210 (a) 30,816
SK Telecom, ADR 3,000 76,875
Samsung Electronics 350 63,399
464,536
TAIWAN--11.1%
Bank Sinopac 27,473 (a) 14,736
China Steel, GDR 2,550 32,066
Far Eastern Textile 39,547 42,299
Hitron Technology 23,400 56,780
Macronix International, ADR 1,129 (a) 17,358
Pacific Electrical Wire & Cable 23,835 (a) 12,252
Procomp Informatics 24,400 (a) 116,076
Siliconware Precision Industries, ADR 9,467 (a) 46,747
Taiwan Semiconductor Manufacturing, ADR 3,200 (a) 65,200
United Microelectronics 24,000 (a) 51,339
Winbond Electronics, GDR 3,000 (a) 44,625
499,478
TURKEY--2.7%
Akbank, ADR 50,000 48,750
Haci Omer Sabanci, ADR 13,560 27,459
Tansas Izmir Buyuksehir Belediyesi Ic ve Dis Ticaret 400,000 (a) 45,740
121,949
UNITED KINGDOM--2.2%
Dimension Data 10,500 (a) 97,067
TOTAL COMMON STOCKS
(cost $5,103,672) 4,241,172
PREFERRED STOCKS--5.2% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
BRAZIL;
Caemi Mineracao e Metalurgica 1,790 233,225
(cost $156,665)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $5,260,337) 99.4% 4,474,397
CASH AND RECEIVABLES (NET) .6% 28,024
NET ASSETS 100.0% 4,502,421
(A) NON-INCOME PRODUCING.
(B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER 30, 2000,
THESE SECURITIES AMOUNTED TO $127,435 OR APPROXIMATELY 2.8% OF NETS ASSETS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 5,260,337 4,474,397
Cash 81,363
Cash denominated in foreign currencies 260 136
Receivable for investment securities sold 52,136
Dividends receivable 10,611
Prepaid expenses 4,801
Due from The Dreyfus Corporation and affiliates 4,164
4,627,608
--------------------------------------------------------------------------------
LIABILITIES ($):
Payable for investment securities purchased 91,300
Accrued expenses 33,887
125,187
--------------------------------------------------------------------------------
NET ASSETS ($) 4,502,421
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 4,748,032
Accumulated net realized gain (loss) on investments and
foreign currency transactions 540,469
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (786,080)
--------------------------------------------------------------------------------
NET ASSETS ($) 4,502,421
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Assets ($) 2,135,280 1,651,287 677,164 37,891.36 799
Shares Outstanding 168,467 132,551 54,157 2,977.707 63.492
NET ASSET VALUE
PER SHARE ($) 12.67 12.46 12.50 12.73 12.58
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Year Ended September 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $5,911 foreign taxes withheld at source) 105,866
Interest 2,967
TOTAL INCOME 108,833
EXPENSES:
Management fee--Note 3(a) 60,978
Registration fees 44,769
Custodian fees 44,111
Shareholder servicing costs--Note 3(c) 23,801
Auditing fees 23,228
Distribution fees--Note 3(b) 17,494
Prospectus and shareholders' reports 12,019
Directors' fees and expenses--Note 3(d) 1,083
Legal fees 928
Loan commitment fees--Note 2 14
Miscellaneous 4,791
TOTAL EXPENSES 233,216
Less--expense reimbursement due to undertaking from
The Dreyfus Corporation--Note 3(a) 106,186
NET EXPENSES 127,030
INVESTMENT (LOSS) (18,197)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency transactions
708,587
Net realized gain (loss) on forward currency exchange contracts (8)
NET REALIZED GAIN (LOSS) 708,579
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions (924,438)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (215,859)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (234,056)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended September 30,
--------------------------------
2000 (a) 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss)--net (18,197) (10,612)
Net realized gain (loss) on investments 708,579 510,762
Net unrealized appreciation (depreciation)
on investments (924,438) 318,405
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (234,056) 818,555
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares -- (8,004)
Class B shares -- (883)
Class C shares -- (464)
Class R shares -- (1,296)
TOTAL DIVIDENDS -- (10,647)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 3,062,176 719,143
Class B shares 1,768,873 1,317,475
Class C shares 1,074,137 263,874
Class R shares 92,600 1,000
Class T shares 1,000 --
Dividends reinvested:
Class A shares -- 8,004
Class B shares -- 883
Class C shares -- 464
Class R shares -- 1,296
Cost of shares redeemed:
Class A shares (2,639,253) (471,947)
Class B shares (469,138) (979,889)
Class C shares (656,835) (60,989)
Class R shares (218,393) (60,000)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 2,015,167 739,314
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,781,111 1,547,222
--------------------------------------------------------------------------------
NET ASSETS ($)
Beginning of Period 2,721,310 1,174,088
END OF PERIOD 4,502,421 2,721,310
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30,
2000 FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended September 30,
-------------------------------
2000 (a) 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 202,647 62,781
Shares issued for dividends reinvested -- 1,016
Shares redeemed (172,200) (39,398)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 30,447 24,399
--------------------------------------------------------------------------------
CLASS B
Shares sold 114,172 114,896
Shares issued for dividends reinvested -- 112
Shares redeemed (31,232) (82,097)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 82,940 32,911
--------------------------------------------------------------------------------
CLASS C
Shares sold 66,574 22,322
Shares issued for dividends reinvested -- 59
Shares redeemed (45,710) (5,088)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 20,864 17,293
--------------------------------------------------------------------------------
CLASS R
Shares sold 6,006 100
Shares issued for dividends reinvested -- 164
Shares redeemed (14,329) (4,963)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (8,323) (4,699)
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 63 --
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30,
2000 FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended September 30,
--------------------------------------------
CLASS A SHARES 2000 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C>
Net asset value, beginning of period 11.75 7.24 12.50
Investment Operations:
Investment income (loss)--net (.03)(b) (.04)(b) .04
Net realized and unrealized gain (loss)
on investments .95 4.62 (5.30)
Total from Investment Operations .92 4.58 (5.26)
Distributions:
Dividends from investment income-net -- (.07) --
Net asset value, end of period 12.67 11.75 7.24
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 7.91 63.71 (42.08)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.25 2.25 1.15(d)
Ratio of net investment income (loss)
to average net assets (.17) (.37) .35(d)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 2.21 7.26 2.44(d)
Portfolio Turnover Rate 140.07 194.20 234.00(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 2,135 1,622 822
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended September 30,
----------------------------------------------
CLASS B SHARES 2000 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.64 7.21 12.50
Investment Operations:
Investment income (loss)--net (.10)(b) (.12)(b) .00(c)
Net realized and unrealized gain (loss)
on investments .92 4.59 (5.29)
Total from Investment Operations .82 4.47 (5.29)
Distributions:
Dividends from investment income--net -- (.04) --
Net asset value, end of period 12.46 11.64 7.21
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (D) 7.04 62.29 (42.32)(e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 3.00 3.00 1.54(e)
Ratio of net investment (loss)
to average net assets (.65) (1.10) (.04)(e)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 2.19 7.60 2.48(e)
Portfolio Turnover Rate 140.07 194.20 234.00(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,651 578 120
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(D) EXCLUSIVE OF SALES CHARGE.
(E) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended September 30,
-----------------------------------------
CLASS C SHARES 2000 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.68 7.21 12.50
Investment Operations:
Investment income (loss)--net (.08)(b) (.11)(b) .00(c)
Net realized and unrealized gain (loss)
on investments .90 4.61 (5.29)
Total from Investment Operations .82 4.50 (5.29)
Distributions:
Dividends from investment income--net -- (.03) --
Net asset value, end of period 12.50 11.68 7.21
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (D) 7.11 62.59 (42.32)(e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 3.00 3.00 1.53(e)
Ratio of net investment (loss)
to average net assets (.50) (1.21) (.03)(e)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 2.12 7.65 2.43(e)
Portfolio Turnover Rate 140.07 194.20 234.00(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 677 389 115
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(D) EXCLUSIVE OF SALES CHARGE.
(E) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended September 30,
------------------------------------------
CLASS R SHARES 2000 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.77 7.25 12.50
Investment Operations:
Investment income (loss)-- net (.01)(b) (.01)(b) .05
Net realized and unrealized gain (loss)
on investments .97 4.61 (5.30)
Total from Investment Operations .96 4.60 (5.25)
Distributions:
Dividends from investment income--net -- (.08) --
Net asset value, end of period 12.73 11.77 7.25
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 8.16 64.01 (42.00)(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.00 2.00 1.03(c)
Ratio of net investment income (loss)
to average net assets (.05) (.08) .47(c)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 2.22 6.93 2.44(c)
Portfolio Turnover Rate 140.07 194.20 234.00(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 38 133 116
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30,1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended
CLASS T SHARES September 30, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 15.75
Investment Operations:
Investment (loss)-- net (.08)(b)
Net realized and unrealized gain (loss)
on investments (3.09)
Total from Investment Operations (3.17)
Net asset value, end of period 12.58
--------------------------------------------------------------------------------
TOTAL RETURN (%) (C) (20.19)(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.66(d)
Ratio of net investment (loss)
to average net assets (.53)(d)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 1.28
Portfolio Turnover Rate 140.07
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30,
2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Emerging Markets Fund (the "fund") is a separate non-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 three series, including the fund. The fund's investment
objective is long-term 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., which is a wholly-owned subsidiary of Mellon Financial
Corporation.
On September 13, 1999, the Board of Directors approved the addition of Class T
shares, which became effective February 1, 2000.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. 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, Class R and Class
T shares. Class A and Class T shares are subject to a sales charge imposed at
the time of purchase, Class B shares are subject to a contingent deferred sales
charge (" CDSC" ) imposed on Class B share redemptions made within six years of
purchase, Class C shares are subject to a CDSC imposed on Class C shares
redeemed within one year of purchase 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 series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
The 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 custody agreement, the fund received net
earnings credits of $835 during the period ended September 30, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to 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.
During the period ended September 30, 2000, the fund increased accumulated
undistributed investment income net by $23,415 and decreased accumulated net
realized gain (loss) on investments by $253 and decreased paid-in capital by
$23,162. Net assets were not affected by this reclassification.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) primarily to be uti
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
lized for temporary or emergency purposes, including the financing of
redemptions. In connection therewith, the fund has agreed to pay commitment fees
on its pro rata portion of the Facility. Interest is charged to the fund at
rates based on prevailing market rates in effect at the time of borrowings.
During the period ended September 30, 2000, the fund did not borrow under the
Facility.
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 1.25% of the value of the
fund' s average daily net assets and is payable monthly. The Manager has
undertaken from October 1, 1999 through September 30, 2001 to reduce the
management fee paid by or reimburse such excess expenses of the fund, to the
extent that the fund's aggregate expenses, excluding 12b-1 distribution fees,
shareholder service plan fees, taxes, brokerage fees, interest on borrowings,
loan commitment fees and extraordinary expenses exceed an annual rate of 2% of
the value of the fund's average daily net assets. The expense reimbursement,
pursuant to the undertaking, amounted to $106,186 during the period ended
September 30, 2000.
DSC retained $1,882 during the period ended September 30, 2000 from commissions
earned on sales of the fund's shares.
(b) Under the Distribution Plan, (the "Plan"), adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1%, of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
September 30, 2000, Class B, Class C and Class T shares were charged $11,405,
$6,087 and $2, respectively, pursuant to the Plan, of which $8,123, $4,384 and
$1 for Class B, Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at the annual rate of .25 of 1% of th
value of their average daily net assets for the provision of certain services.
The services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The distributor may make payments to Service Agents (a
securities dealer, financial institution or 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, 2000, Class A, Class B,
Class C, and Class T shares were charged $6,139, $3,802, $2,029 and $2,
respectively, pursuant to the Shareholder Services Plan, of which $3,645, $858,
$1,462 and $1 for Class A, Class B, Class C and Class T shares, respectively,
were paid to DSC.
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, 2000, the fund was charged $5,322 pursuant to the transfer
agency agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective January 1, 2000,
each Board member who is not an "affiliated person" as defined in the Act
receives an annual fee of $40,000 and an attendance fee of $6,000 for each in
person meeting and $500 for telephone meetings.These fees are allocated among
the funds in the Fund Group. The Chairman of the Board receives an additional
25% of such compensation. Prior to January 1, 2000, each Board member who was
not an "affiliated person" as defined in the Act received from the fund an
annual fee of $4,500 and an attendance fee of $250 per meeting. The Chairman of
the Board received an additional 25% of such compensation. Subject to the fund's
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
fund's annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(e) During the period ended September 30, 2000, the fund incurred total
brokerage commissions of $45,361, of which $35, was paid to Dreyfus Brokerage
Services, a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended September 30, 2000, amounted to
$8,537,160 and $6,524,237, respectively.
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings. When executing forward currency exchange contracts, the fund is
obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The fund realizes a gain if the value of the
contract increases between those dates. The fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract. At September 30, 2000, there were no open forward currency exchange
contracts.
At September 30, 2000, accumulated net unrealized depreciation on investments
was $785,940, consisting of $339,660 gross unrealized appreciation and
$1,125,600 gross unrealized depreciation.
At September 30, 2000, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Premier Emerging Markets Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Premier Emerging Markets Fund (one of
the series constituting Dreyfus Premier Equity Funds, Inc.) as of September 30,
2000, 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 auditing standards generally accepted
in the United States. 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
confirmation of securities owned as of September 30, 2000 by correspondence with
the custodian and brokers. 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 Emerging Markets Fund at September 30, 2000, 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 accounting principles generally accepted
in the United States.
New York, New York
November 7, 2000
The Fund
NOTES
For More Information
Dreyfus Premier Emerging Markets Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 329AR009
Dreyfus
Premier Growth and Income Fund
ANNUAL REPORT September 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
17 Financial Highlights
22 Notes to Financial Statements
28 Report of Independent Auditors
29 Important Tax Information
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Growth and Income Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Growth and
Income Fund, covering the 12-month period from October 1, 1999 through September
30, 2000. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Douglas Ramos, CFA.
The Standard & Poor' s 500 Composite Stock Price Index ("S&P 500 Index") rose
more than 13% over the past 12 months, mostly during the fourth quarter of 1999.
Investor enthusiasm over technology stocks drove most major stock market indices
to new highs. Conversely, in the first nine months of 2000, the equity
investment environment was marked by dramatic price fluctuations. Additionally,
the moderating effects of the Federal Reserve Board's (the "Fed") interest-rate
hikes during the first half of 2000 helped the Fed to achieve its goal of
slowing the U.S. economy. Other factors such as higher energy prices and a weak
euro also served to slow economic growth.
Since stocks provided returns well above their historical averages during the
second half of the 1990s, some investors may have developed unrealistic
expectations. Recent volatility has reminded investors of both the risks of
investing and the importance of fundamental research and investment selection.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620.
Thank you for investing in Dreyfus Premier Growth and Income Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF FUND PERFORMANCE
Douglas Ramos, CFA, Portfolio Manager
How did Dreyfus Premier Growth and Income Fund perform relative to its
benchmark?
For the 12-month period ended September 30, 2000, Dreyfus Premier Growth and
Income Fund produced a total return of 11.58% for Class A shares, 10.77% for
Class B shares, 10.85% for Class C shares, and 11.42% for Class R shares. In
addition, the fund's Class T shares returned 1.37% during the eight months since
inception on February 1, 2000.(1) This compares with a total return of 13.27%
provided by the fund' s benchmark, the Standard & Poor's 500 Composite Stock
Price Index ("S&P 500 Index"), over the same period.(2)
We attribute the fund's positive performance to strength in technology stocks
during the first half of the period, and in financial and health care stocks
throughout the rest of the period. However, our performance relative to the S&P
500 Index suffered slightly as a result of weakness among value-oriented stocks,
to which the fund has more exposure than the Index.
What is the fund's investment approach?
The fund invests primarily in what we believe are low- and moderately-priced
stocks with market capitalizations of $1 billion or more at the time of
purchase. We use fundamental analysis to create a broadly diversified,
value-tilted portfolio with a weighted average price-to-earnings ("P/E") ratio
less than that of the S&P 500 Index, and a long-term projected earnings growth
rate greater than that of the S&P 500 Index.
We examine each company' s fundamentals together with economic and industry
trends. We then gauge a stock's relative value primarily by looking at its price
in relation to the company's business prospects and intrinsic worth, as measured
by a wide range of financial and business data. Typically, we look for companies
with strong positions in their The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
industries that we believe offer potential for advantageous business
developments or the prospect for other changes the market is likely to view
favorably.
What other factors influenced the fund's performance?
From the beginning of the reporting period until early March 2000, the stock
market generally benefited from the U.S. economy's rapid growth. The stock
market' s advance was led by the technology sector, which enjoyed impressive
gains in late 1999 and early 2000. In particular, we benefited from investments
in a wide range of companies providing products and services to facilitate the
build-out of wireless communications systems and the Internet. Our holdings
included software providers such as Oracle; LSI Logic, a semiconductor
manufacturer; and Ericcson (LM) Telephone, a cellular equipment provider.
As valuations of several of the fund's technology stocks climbed beyond levels
we considered reasonable as gauged by our investment discipline, we reduced our
holdings in this area. In mid-March, rising interest rates took a toll on
technology stocks, which quickly gave back a substantial portion of their
earlier gains. By that time, we had sold many of the fund's most highly valued
technology holdings, and our remaining technology stocks performed relatively
well in a difficult environment.
During the rest of the period, some of the fund's holdings benefited while
others lagged. Relatively steady short-term interest rates and rising activity
in the financial markets boosted the revenues of many of our financial holdings,
including Citigroup and Morgan Stanley Dean Witter. Health care holdings were
another positive note, with hospital groups and HMOs such as Columbia/HCA
Healthcare and Wellpoint Health Networks enjoying improved pricing fundamentals.
On the other hand, our investments in communications services companies lost
ground in the face of rising costs and competition. Our consumer cyclical and
basic materials holdings also suffered as a result of slowing sales and a
cooling economy.
What is the fund's current strategy?
Although technology remained the fund's largest investment area as of September
30, 2000, we held approximately 10% fewer technology stocks than the Index.
Instead, we built a relatively large position in financial stocks, where we
found what we believe are several attractively priced, quality companies that
may benefit from an environment of stable or lower interest rates. We also
increased the fund's exposure to utility stocks relative to the S&P 500 Index to
take advantage of a shortage of natural gas and rising energy prices.
Although value-oriented stocks have been underappreciated by the market in
recent years, we believe it is critically important to maintain the disciplined
approach that is the foundation of our broadly diversified, value-oriented
portfolio. We continue to seek reasonably valued stocks of fast-growing
companies in technology and other sectors that we believe offer attractive
investment opportunities.
October 16, 2000
(1) 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 AND CLASS T SHARES OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD
THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF 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.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Growth
and Income Fund Class A Shares, Class B Shares, Class C Shares and Class R
Shares and the Standard & Poor's 500 Composite Stock Price Index
((+)) SOURCE: LIPPER INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE CLASS A, CLASS
B, CLASS C AND CLASS R SHARES OF DREYFUS PREMIER GROWTH AND INCOME FUND ON
12/29/95 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE ON THAT DATE IN THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX. ALL DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS T SHARES WILL VARY FROM
THE PERFORMANCE OF CLASS A, CLASS B, CLASS C AND CLASS R 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, THE MAXIMUM CONTINGENT DEFERRED SALES
CHARGE ON CLASS B AND CLASS C SHARES, AND ALL OTHER APPLICABLE FEES AND EXPENSES
ON ALL CLASSES. THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A
WIDELY ACCEPTED, UNMANAGED INDEX OF OVERALL STOCK MARKET PERFORMANCE. THE INDEX
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.
<TABLE>
<CAPTION>
Average Annual Total Returns AS OF 9/30/00
Inception From
Date 1 Year Inception
------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
<S> <C> <C> <C>
WITH SALES CHARGE (5.75%) 12/29/95 5.18% 17.16%
WITHOUT SALES CHARGE 12/29/95 11.58% 18.62%
CLASS B SHARES
WITH REDEMPTION((+)) 12/29/95 6.77% 17.48%
WITHOUT REDEMPTION 12/29/95 10.77% 17.71%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 12/29/95 9.85% 17.73%
WITHOUT REDEMPTION 12/29/95 10.85% 17.73%
CLASS R SHARES 12/29/95 11.42% 18.94%
Actual Aggregate Total Returns as of 9/30/00
--------------------------------------------------------------------------------
CLASS T SHARES
WITH SALES CHARGE (4.5%) 2/1/00 -- (3.21)%
WITHOUT SALES CHARGE 2/1/00 -- 1.37%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4% AND
IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES WILL CONVERT TO
CLASS A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
The Fund
September 30, 2000
STATEMENT OF INVESTMENTS
STATEMENT OF INVESTMENTS
COMMON STOCKS--98.4% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES--1.4%
Lamar Advertising 4,700 (a) 178,012
McGraw-Hill Cos. 16,200 1,029,712
1,207,724
CONSUMER NON--DURABLES--5.5%
Anheuser-Busch Cos. 12,000 507,750
Coca-Cola 9,000 496,125
Intimate Brands 16,000 299,000
Kimberly-Clark 11,000 613,937
PepsiCo 23,500 1,081,000
Philip Morris Cos. 22,000 647,625
Procter & Gamble 9,400 629,800
UST 22,000 503,250
4,778,487
CONSUMER SERVICES--5.8%
Adelphia Communications, Cl. A 10,800 (a) 297,675
Cendant 95,800 (a) 1,041,825
Clear Channel Communications 9,640 (a) 544,660
Disney (Walt) 14,500 554,625
Infinity Broadcasting, Cl. A 8,750 (a) 288,750
Time Warner 11,700 915,525
USA Networks 21,000 (a) 460,687
Viacom, Cl. B 15,190 (a) 888,615
4,992,362
ELECTRONIC TECHNOLOGY--16.3%
American Tower, Cl. A 14,600 (a) 550,237
Amkor Technology 15,000 (a) 391,875
Applied Materials 7,000 (a) 415,187
Cabletron Systems 21,500 (a) 631,563
Compaq Computer 33,800 932,204
Gateway 10,000 (a) 467,500
General Dynamics 6,000 376,875
Hewlett-Packard 5,900 572,300
Intel 52,200 2,169,563
International Business Machines 16,000 1,800,000
KLA-Tencor 8,000 (a) 329,500
LSI Logic 12,000 (a) 351,000
Lucent Technologies 16,000 489,000
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC TECHNOLOGY (CONTINUED)
Micron Technology 8,000 (a) 368,000
Motorola 22,000 621,500
National Semiconductor 13,400 (a) 539,350
Nortel Networks 17,000 1,012,563
Novellus Systems 8,000 (a) 372,500
Sun Microsystems 5,000 (a) 583,750
Teradyne 8,000 (a) 280,000
Texas Instruments 6,000 283,125
United Technologies 7,000 484,750
14,022,342
ENERGY--.2%
Southern Energy 4,800 (a) 150,600
ENERGY MINERALS--6.5%
Anadarko Petroleum 19,000 1,262,740
Conoco, Cl.A 12,000 313,500
Exxon Mobil 23,600 2,103,350
Royal Dutch Petroleum, ADR 23,000 1,378,563
Texaco 9,600 504,000
5,562,153
FINANCE--20.6%
American Express 11,400 692,550
American General 6,300 491,400
American International Group 20,476 1,959,297
Associates First Capital, Cl. A 20,000 760,000
Bank of America 16,000 838,000
Bank of New York 13,000 728,812
Chase Manhattan 9,000 415,688
Citigroup 49,733 2,688,690
Federal Home Loan Mortgage 24,400 1,319,125
Federal National Mortgage Association 20,800 1,487,200
Fleet Boston Financial 21,028 820,092
Goldman Sachs Group 4,000 455,750
Hartford Financial Services Group 5,000 364,688
Household International 9,400 532,275
John Hancock Financial Services 20,200 (a) 542,875
Knight Trading Group 7,100 (a) 255,600
MBNA 8,000 308,000
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCE (CONTINUED)
Morgan (J.P.) 2,000 326,750
Morgan Stanley Dean Witter & Co. 15,600 1,426,425
Washington Mutual 5,000 199,063
Wells Fargo 24,000 1,102,500
17,714,780
HEALTH SERVICES--3.4%
HCA-Healthcare 63,400 2,353,725
Wellpoint Health Networks 6,000 (a) 576,000
2,929,725
HEALTH TECHNOLOGY--8.7%
ALZA 5,000 (a) 432,500
Alpharma, Cl. A 5,800 354,525
American Home Products 9,800 554,313
Baxter International 6,000 478,875
Bristol-Myers Squibb 13,000 742,625
Johnson & Johnson 6,000 563,625
Merck & Co. 24,500 1,823,719
Pfizer 29,250 1,314,422
Pharmacia 8,946 538,437
Schering-Plough 15,000 697,500
7,500,541
INDUSTRIAL SERVICES--1.0%
Schlumberger 11,000 905,438
NON-ENERGY MINERALS--.3%
Alcoa 10,000 253,125
PHARMACEUTICAL--.2%
King Pharmaceuticals 5,200 (a) 173,875
PROCESS INDUSTRIES--1.7%
Dow Chemical 16,000 399,000
duPont (E.I.) deNemours 6,000 248,625
International Paper 13,000 372,938
Rohm & Haas 15,000 435,938
1,456,501
PRODUCER MANUFACTURING--7.3%
Emerson Electric 7,000 469,000
General Electric 68,200 3,934,288
Honeywell International 7,875 280,547
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
PRODUCER MANUFACTURING (CONTINUED)
Masco 20,300 378,087
Tyco International 23,300 1,208,687
6,270,609
RETAIL TRADE--2.7%
Costco Wholesale 3,700 (a) 129,269
Gap 10,000 201,250
Lowe's Cos. 10,600 475,675
May Department Stores 9,950 203,975
TJX Cos. 29,500 663,750
Target 24,000 615,000
2,288,919
TECHNOLOGY SERVICES--5.8%
Charter Communications, Cl. A 46,000 (a) 748,218
Computer Associates International 20,100 506,269
Computer Sciences 15,600 (a) 1,158,300
Electronic Data Systems 20,700 859,050
First Data 2,700 105,469
Network Associates 19,200 (a) 434,400
Oracle 14,600 (a) 1,149,750
4,961,456
UTILITIES--11.0%
AT&T 13,500 396,562
AT&T--Liberty Media Group, Cl. A 20,000 (a) 360,000
BellSouth 12,000 483,000
Coastal 21,500 1,593,687
Duke Energy 14,000 1,200,500
Dynegy, Cl. A 8,600 490,200
Enron 6,000 (a) 525,750
Niagara Mohawk Power 25,400 400,050
SBC Communications 28,000 1,400,000
TXU 12,000 475,500
Telefonos de Mexico, Cl. L, ADR 5,000 265,938
Verizon Communications 25,300 1,225,469
WorldCom 22,400 (a) 680,400
9,497,056
TOTAL COMMON STOCKS
(cost $68,888,965) 84,665,693
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--1.7% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
5.98%, 12/7/2000 1,310,000 1,295,603
5.98%, 12/21/2000 149,000 147,012
TOTAL SHORT-TERM INVESTMENTS
(cost $1,442,423) 1,442,615
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $70,331,388) 100.1% 86,108,308
LIABILITIES, LESS CASH AND RECEIVABLES (.1%) (52,924)
NET ASSETS 100.0% 86,055,384
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 70,331,388 86,108,308
Cash 32,470
Receivable for investment securities sold 728,700
Dividends receivable 64,682
Receivable for shares of Common Stock subscribed 1,094
Prepaid expenses 12,908
86,948,162
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 131,667
Payable for investment securities purchased 423,120
Payable for shares of Common Stock redeemed 272,387
Accrued expenses 65,604
892,778
--------------------------------------------------------------------------------
NET ASSETS ($) 86,055,384
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 65,843,149
Accumulated net realized gain (loss) on investments 4,435,315
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4(b) 15,776,920
--------------------------------------------------------------------------------
NET ASSETS ($) 86,055,384
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 29,519,650 52,617,241 3,865,997 51,483 1,013.47
Shares Outstanding 1,367,252 2,502,796 183,532 2,367 47.326
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 21.59 21.02 21.06 21.75 21.41
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Year Ended September 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $6,873 foreign taxes withheld at source) 988,023
Interest 86,811
TOTAL INCOME 1,074,834
EXPENSES:
Management fee--Note 3(a) 695,638
Distribution fees--Note 3(b) 452,601
Shareholder servicing costs--Note 3(c) 387,642
Registration fees 45,037
Professional fees 41,809
Prospectus and shareholders' reports 20,267
Directors' fees and expenses--Note 3(d) 17,345
Custodian fees--Note 3(c) 15,135
Loan commitment fees--Note 2 968
Miscellaneous 5,296
TOTAL EXPENSES 1,681,738
INVESTMENT (LOSS) (606,904)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments:
Long transactions 5,237,568
Short sale transactions (64,938)
Net realized gain (loss) on financial futures 171,994
NET REALIZED GAIN (LOSS) 5,344,624
Net unrealized appreciation (depreciation) on investments 5,276,164
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 10,620,788
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 10,013,884
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended September 30,
-----------------------------------
2000 (a) 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss)--net (606,904) (200,325)
Net realized gain (loss) on investments 5,344,624 8,490,097
Net unrealized appreciation (depreciation)
on investments 5,276,164 10,564,61
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 10,013,884 18,854,383
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares -- (3,173)
Class R shares -- (136)
Net realized gain on investments:
Class A shares (2,669,147) (62,028)
Class B shares (4,777,051) (118,673)
Class C shares (282,608) (6,549)
Class R shares (25,616) (492)
TOTAL DIVIDENDS (7,754,422) (191,051)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 6,145,994 4,691,782
Class B shares 6,336,968 5,471,141
Class C shares 1,305,165 838,908
Class R shares 12,737 86,739
Class T shares 1,024 --
Dividends reinvested:
Class A shares 2,418,729 59,473
Class B shares 4,197,222 105,597
Class C shares 196,213 4,503
Class R shares 25,616 627
Cost of shares redeemed:
Class A shares (11,529,952) (11,473,975)
Class B shares (15,944,571) (19,454,642)
Class C shares (900,434) (1,961,486)
Class R shares (299,565) (103,735)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (8,034,854) (21,735,068)
TOTAL INCREASE (DECREASE) IN NET ASSETS (5,775,392) (3,071,736)
--------------------------------------------------------------------------------
NET ASSETS ($)
Beginning of Period 91,830,776 94,902,512
END OF PERIOD 86,055,384 91,830,776
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30,
2000 FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended September 30,
-----------------------------------
2000 (a) 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A (B)
Shares sold 280,034 223,976
Shares issued for dividends reinvested 115,563 3,022
Shares redeemed (524,853) (560,213)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (129,256) (333,215)
--------------------------------------------------------------------------------
CLASS B (B)
Shares sold 296,608 267,228
Shares issued for dividends reinvested 204,743 5,438
Shares redeemed (747,612) (957,634)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (246,261) (684,968)
--------------------------------------------------------------------------------
CLASS C
Shares sold 60,907 40,647
Shares issued for dividends reinvested 9,553 231
Shares redeemed (42,185) (98,456)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 28,275 (57,578)
--------------------------------------------------------------------------------
CLASS R
Shares sold 586 3,998
Shares issued for dividends reinvested 1,212 31
Shares redeemed (13,647) (4,953)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (11,849) (924)
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 47 --
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO SEPTEMBER 30,
2000 FOR CLASS T SHARES.
(B) DURING THE PERIOD ENDED SEPTEMBER 30, 2000, 82,934 CLASS B SHARES
REPRESENTING $1,761,177 WERE AUTOMATICALLY
CONVERTED TO 81,137 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended September 30,
-------------------------------------------------------------------
CLASS A SHARES 2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 21.04 17.39 20.94 18.45 12.50
Investment Operations:
Investment income (loss)--net (.04)(b) .06(b) .10 .24 .10
Net realized and unrealized gain (loss)
on investments 2.42 3.63 (1.44) 3.39 5.94
Total from Investment Operations 2.38 3.69 (1.34) 3.63 6.04
Distributions:
Dividends from investment income-net -- (.00)(c) (.05) (.25) (.09)
Dividends from net realized gain
on investments (1.83) (.04) (2.16) (.89) --
Total Distributions (1.83) (.04) (2.21) (1.14) (.09)
Net asset value, end of period 21.59 21.04 17.39 20.94 18.45
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (D) 11.58 21.22 (7.00) 20.90 48.24(e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.33 1.31 1.25 1.24 .94(e)
Ratio of net investment income (loss)
to average net assets (.17) .29 .47 1.27 .92(e)
Decrease reflected in above expense
ratios due to undertaking by
The Dreyfus Corporation -- -- .01 .11 .30(e)
Portfolio Turnover Rate 51.17 102.85 133.00 265.33 205.64(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 29,520 31,482 31,824 42,309 30,330
(A) FROM DECEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(D) EXCLUSIVE OF SALES CHARGE.
(E) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended September 30,
--------------------------------------------------------------------
CLASS B SHARES 2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 20.67 17.22 20.85 18.37 12.50
Investment Operations:
Investment income (loss)--net (.20)(b) (.09)(b) (.06) .10 .03
Net realized and unrealized gain (loss)
on investments 2.38 3.58 (1.41) 3.38 5.87
Total from Investment Operations 2.18 3.49 (1.47) 3.48 5.90
Distributions:
Dividends from investment income--net -- -- -- (.11) (.03)
Dividends from net realized gain
on investments (1.83) (.04) (2.16) (.89) --
Total Distributions (1.83) (.04) (2.16) (1.00) (.03)
Net asset value, end of period 21.02 20.67 17.22 20.85 18.37
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 10.77 20.26 (7.69) 20.08 47.14(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.08 2.06 2.00 2.00 1.52(d)
Ratio of net investment income (loss)
to average net assets (.92) (.45) (.28) .50 .34(d)
Decrease reflected in above expense
ratios due to undertaking by
The Dreyfus Corporation -- -- .01 .11 .30(d)
Portfolio Turnover Rate 51.17 102.85 133.00 265.33 205.64(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 52,617 56,833 59,144 69,330 37,534
(A) FROM DECEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended September 30,
--------------------------------------------------------------------
CLASS C SHARES 2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 20.70 17.24 20.87 18.40 12.50
Investment Operations:
Investment income (loss)--net (.19)(b) (.08)(b) (.06) .09 .03
Net realized and unrealized gain (loss)
on investments 2.38 3.58 (1.41) 3.38 5.88
Total from Investment Operations 2.19 3.50 (1.47) 3.47 5.91
Distributions:
Dividends from investment income-net -- -- -- (.11) (.01)
Dividends from net realized gain
on investments (1.83) (.04) (2.16) (.89) --
Total Distributions (1.83) (.04) (2.16) (1.00) (.01)
Net asset value, end of period 21.06 20.70 17.24 20.87 18.40
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 10.85 20.29 (7.63) 19.89 47.27(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.04 2.04 1.96 2.00 1.52(d)
Ratio of net investment income (loss)
to average net assets (.87) (.43) (.25) .52 .30(d)
Decrease reflected in above expense
ratios due to undertaking by
The Dreyfus Corporation -- -- .01 .11 .30(d)
Portfolio Turnover Rate 51.17 102.85 133.00 265.33 205.64(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 3,866 3,215 3,670 5,340 2,642
(A) FROM DECEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended September 30,
--------------------------------------------------------------------
CLASS R SHARES 2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 21.21 17.52 21.11 18.42 12.50
Investment Operations:
Investment income (loss)--net (.02)(b) .09(b) .07 .20 .43
Net realized and unrealized gain (loss)
on investments 2.39 3.65 (1.40) 3.67 5.61
Total from Investment Operations 2.37 3.74 (1.33) 3.87 6.04
Distributions:
Dividends from investment income-net -- (.01) (.10) (.29) (.12)
Dividends from net realized gain
on investments (1.83) (.04) (2.16) (.89) --
Total Distributions (1.83) (.05) (2.26) (1.18) (.12)
Net asset value, end of period 21.75 21.21 17.52 21.11 18.42
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 11.42 21.34 (6.89) 22.25 48.38(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.25 1.17 1.15 .99 .79(c)
Ratio of net investment income (loss)
to average net assets (.09) .41 .57 1.50 1.01(c)
Decrease reflected in above expense
ratios due to undertaking by
The Dreyfus Corporation -- -- .01 .12 .30(c)
Portfolio Turnover Rate 51.17 102.85 133.00 265.33 205.64(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 51 302 265 259 174
(A) FROM DECEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended
CLASS T SHARES September 30, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 21.13
Investment Operations:
Investment (loss)--net (.18)(b)
Net realized and unrealized gain (loss)
on investments .46
Total from Investment Operations .28
Net asset value, end of period 21.41
--------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 1.37(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.59(d)
Ratio of net investment (loss)
to average net assets (.79)(d)
Portfolio Turnover Rate 51.17
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) THE FUND COMMENCED SELLING CLASS T SHARES ON FEBRUARY 1, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Growth and Income Fund (the "fund" ) is a separate
non-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 three series, including the fund. The fund's
investment objective is long-term capital growth, current income and growth of
income, consistent with reasonable investment risk. The Dreyfus Corporation (the
" Manager" ) serves as the fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. ("Mellon"), which is a wholly-owned subsidiary
of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. 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, Class R and Class
T shares. Class A and Class T shares are subject to a sales charge imposed at
the time of purchase, Class B shares are subject to a contingent deferred sales
charge (" CDSC" ) imposed on Class B share redemptions made within six years of
purchase, (Class B shares automatically convert to Class A shares after six
years) , 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 series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The fund' s financial statements are prepared in accordance with 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 or losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund receives net
earnings credits based on available cash balances left on deposit.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net are declared and paid on a quarterly basis.
Dividends from net realized capital gain are normally declared and paid
annually, but the fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code of 1986, as
amended (the "Code"). To the extent that net realized capital gain can be offset
by capital loss carryovers, if any, it is the policy of the fund not to
distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the fund to 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.
During the period ended September 30, 2000, the fund reclassed $606,904 from
accumulated net realized gain (loss) on investments to accumulated undistributed
investment income--net. Net assets were not affected by this reclassificaton.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions. In
connection therewith, the fund has agreed to pay commitment fees on its pro rata
portion of the Facility. Interest is charged to the fund at rates based on
prevailing market rates in effect at the time of borrowings. During the period
ended September 30, 2000, the fund did not borrow under the Facility.
NOTE 3 --Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .75 of 1% of the value of the fund's average
daily net assets and is payable monthly.
DSC retained $144 during the period ended September 30, 2000 from commissions
earned on sales of fund shares.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class Tshares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
September 30, 2000, Class B, Class C and Class T shares were charged $425,317,
$27,282 and $2, respectively, pursuant to the Plan, of which $245,591, $16,618
and $1 for Class B, Class C and Class T shares, respectively, were paid to DSC.
(C) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
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 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, 2000, Class A, Class B, Class C
and Class T shares were charged $80,431, $141,772, $9,094 and $2, respectively,
pursuant to the Shareholder Services Plan, of which $46,196, $81,864, $5,539 and
$1 for Class A, Class B, Class C and Class T shares, respectively, were paid to
DSC.
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 The Fun
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
fund. During the period ended September 30, 2000, the fund was charged $83,265
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, 2000, the fund was
charged $15,135 pursuant to the custody agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective January 1, 2000,
each Board member who is not an "affiliated person" as defined in the Act
receives an annual fee of $40,000 and an attendance fee of $6,000 for each in
person meeting and $500 for telephone meetings. These fees are allocated among
the funds in the Fund Group. The Chairman of the Board receives an additional
25% of such compensation. Prior to January 1, 2000, each Board member who was
not an "affiliated person" as defined in the Act received from the Company an
annual fee of $4,500 and an attendance fee of $500 per meeting. The Chairman of
the Board received an additional 25% of such compensation. Subject to the
company' s Emeritus Program Guidelines, Emeritus Board members, if any, receive
50% of the fund's annual retainer fee and per meeting fee paid at the time the
Board member achieves emeritus status.
(E) During the period ended September 30, 2000, the fund incurred total
brokerage commissions of $107,746, of which $5,098, was paid to Dreyfus
Brokerage Services, a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term securities
and financial futures during the period ended September 30, 2000:
Purchases ($) Sales ($)
--------------------------------------------------------------------------------
Long transactions 46,496,809 63,728,067
Short sale transactions 374,795 309,857
TOTAL 46,871,604 64,037,924
The fund is engaged in short-selling which obligates the fund to replace the
securtiy borrowed by purchasing the security at current market value. The fund
would incur a loss if the price of the security increases between the date of
the short sale and the date on which the fund replaces the borrowed security.
The fund would realize a gain if the price of the security declines between
those dates. Until the fund replaces the borrowed security, the fund will
maintain daily, a segregated account with a broker and custodian, of permissible
liquid assets sufficient to cover its short position. At September 30, 2000,
there were no security sold short outstanding.
The fund may invest in financial futures contracts in order to gain exposure to
or protect against changes in the market. The fund is exposed to market risk as
a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the fund to "mark to market" on a daily
basis, which reflects the change in the market value of the contract at the
close of each day's trading. Typically, variation margin payments are received
or made to reflect daily unrealized gains or losses. When the contracts are
closed, the fund recognizes a realized gain or loss. These investments require
initial margin deposits with a custodian, which consist of cash or cash
equivalents, up to approximately 10% of the contract amount. The amount of these
deposits is determined by the exchange or Board of Trade on which the contract
is traded and is subject to change. At September 30, 2000, there were no
financial futures contracts outstanding.
(B) At September 30, 2000, accumulated net unrealized appreciation on
investments was $15,776,920, consisting of $20,889,284 gross unrealized
appreciation and $5,112,364 gross unrealized depreciation.
At September 30, 2000, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus Premier Growth and Income Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Premier Growth and Income Fund (one of
the Funds constituting Dreyfus Premier Equity Funds, Inc.) as of September 30,
2000, 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 auditing standards generally accepted
in the United States. 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, 2000 and confirmation of securities not held by the custodian by
correspondence with others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Growth and Income Fund at September 30, 2000, the results of its
operations for the year ended, the changes in its net assets for each of its two
years in the period then ended, and the financial highlights for each of the
indicated years, in conformity with accounting principles generally accepted in
the United States.
New York, New York
November 7, 2000
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes the fund hereby designates $1.8290 per share as a
long-term capital gain distribution paid on December 13, 1999.
The Fund
For More Information
Dreyfus Premier Growth and Income Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 320AR009
