Dreyfus
Premier Aggressive
Growth Fund
SEMIANNUAL REPORT March 31, 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 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
14 Financial Highlights
19 Notes to Financial Statements
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 semiannual report for Dreyfus Premier Aggressive
Growth Fund, covering the six-month period from October 1, 1999 through March
31, 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 past six months have been highly volatile -- but generally rewarding -- for
investors in small-cap stocks. Although the market's advance through the fourth
quarter of 1999 was led primarily by technology stocks and large-cap growth
stocks in a fast-growing economy, the large-capitalization sector of the stock
market corrected substantially during the first two months of 2000. At the same
time, prices of many small-cap stocks rose, helping small-cap stocks outperform
large-capitalization stocks for the six-month reporting period.
In March, investor sentiment shifted once more, and large companies generally
provided higher returns than small- and mid-cap companies. While it is too soon
to determine whether these volatile changes signify a longer lasting change in
market leadership, we believe that valuations of small-cap stocks continue to be
attractively low relative to their larger counterparts.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Aggressive Growth Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Kevin Sonnett, CFA, Portfolio Manager
How did Dreyfus Premier Aggressive Growth Fund perform relative to its
benchmark?
For the six-month period ended March 31, 2000, Dreyfus Premier Aggressive Growth
Fund produced a total return of 47.43% for Class A shares, 46.83% for Class B
shares, 46.74% for Class C shares and 47.37% for Class R shares.(1) This return
compares favorably to those provided by the fund's benchmark, the Standard &
Poor' s 500 Composite Stock Price Index ("S&P 500"), the Russell 2000 Index and
the Russell Midcap Index, which provided total returns of 17.50%, 26.83% and
29.05%, respectively.(2)
For the period from its February 1, 2000 inception through March 31, 2000, the
fund's Class T shares produced a total return of 12.88%.(1)
We attribute the fund's strong performance to our investment approach of seeking
companies that we believe have excellent secular growth prospects, strong
management teams and are selling at compelling valuations. As it turned out,
many of the stocks that we found with those characteristics were within the
technology sector, an area that produced strong returns during the past six
months. In addition, our limited exposure to financial stocks, an area that
lagged throughout the reporting period, helped to boost our 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 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 earnings growth rates. The
fund' s investments in small- and mid-cap companies carry additional risks
because their earnings are less predictable, their share prices more volatile
and their securities less liquid than those of larger companies.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
While the fund looks for companies with the potential for strong earnings growth
rates, some of the fund's investments currently may be experiencing losses.
What other factors influenced the fund's performance?
As "bottom-up," growth-oriented investors, we choose growth stocks based on
their individual merits rather than according to market or economic trends.
However, we remain fully cognizant of the overall economic environment, and we
are aware of trends that may affect our performance.
That said, the most dominant factor positively influencing the fund' s
performance was the strong gains achieved by technology stocks relative to the
overall stock market. While the technology sector experienced high levels of
volatility toward the end of the period, overall the area produced very high
returns for the six-month period.
We believe there are several reasons for the strong gains achieved within the
technology sector. First, individual investors have preferred technology stocks
most likely because of the compelling returns they previously earned from
investments there. In a momentum-driven market such as the one we've seen this
past year, those stocks that performed the best attracted the most investors,
which caused the stocks to perform even better in a cyclical pattern. And the
current ease of access to capital has helped boost the fundamental strength of
many of these companies, thereby helping them to grow even further.
For example, the fund' s performance was driven by technology stocks such as
Amdocs, a company that provides customer care as well as billing software and
services for both wireline and wireless telecommunications firms, and Verio, a
value-added Internet service provider to small businesses. In addition, our
holdings in Digex, a company that offers a line of secure, scalable,
high-performance web and application-hosting solutions for businesses, benefited
from a surge in Internet start-up ventures. SDL, a company that sells equipment
for fiber-optic data transmission, has benefited from the tremendous growth in
this area.
The second reason for heightened interest in technology investing can be
attributed to the so-called "new economy." The new economy has been driven in
part by the revolution in information technology,
which has created even greater interest in technology stocks. Finally,
technology has largely been credited with increasing productivity by allowing
companies to gain access to information more quickly, which helps to reduce
costs and inventories.
Of course, the technology sector has been among the most volatile sectors of the
market and the extraordinary returns recently experienced in that sector should
not be expected in the future.
What is the fund's current strategy?
We have maintained our exposure to the technology sector because we believe that
technology is fundamentally changing the world's approach to business. As of the
end of the period, approximately half of the portfolio is invested in technology
stocks. This exposure to technology is consistent with the average of our peer
group of midcap growth funds.
Toward the end of the reporting period, market sentiment began to shift in favor
of the value style of investing. Accordingly, we benefited from several of our
holdings in energy services, an area we have continued to emphasize.
April 12, 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
CASES OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASES 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 ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX ("S&P 500 INDEX") IS A WIDELY ACCEPTED,
UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE. THE RUSSELL 2000 INDEX IS AN
UNMANAGED INDEX OF SMALL-CAP STOCK PERFORMANCE AND IS COMPOSED OF THE 2000
SMALLEST COMPANIES IN THE RUSSELL 3000 INDEX. THE RUSSELL 3000 INDEX IS COMPOSED
OF THE 3000 LARGEST U.S. COMPANIES BASED ON TOTAL MARKET CAPITALIZATION.
THE FUND'S INVESTMENTS IN SMALL- AND MID-CAP COMPANIES CARRY ADDITIONAL RISKS
BECAUSE THEIR EARNINGS ARE LESS PREDICTABLE, THEIR SHARE PRICES MORE VOLATILE
AND THEIR SECURITIES LESS LIQUID THAN THOSE OF LARGER COMPANIES.
THE FUND'S RETURNS ARE HISTORICAL FOR THE PERIODS NOTED AND ARE NOT
INDICATIVE OF FUTURE RESULTS. MARKET VOLATILITY AND INTEREST-RATE CHANGES, AMONG
OTHER FACTORS, CAN DRAMATICALLY AFFECT A FUND'S SHORT-TERM RETURNS. INVESTORS
CONSIDERING AN INVESTMENT IN THE FUND SHOULD CAREFULLY REVIEW THE PROSPECTUS FOR
THE FUND'S INVESTMENT APPROACH, FEES, AND THE RISKS OF INVESTING, AND SHOULD
REVIEW THE FUND'S PERFORMANCE OVER TIME. INVESTORS SHOULD CONTACT DREYFUS OR
THEIR FINANCIAL REPRESENTATIVE FOR MORE INFORMATION, INCLUDING THE FUND'S MOST
RECENT PERFORMANCE.
The Fund
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF INVESTMENTS
March 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
COMMON STOCKS--91.2% Shares Value ($)
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BIOTECHNOLOGY--2.6%
ALZA 52,225 (a) 1,961,702
Celera Genomics 9,450 (a) 865,266
Gene Logic 10,200 (a) 429,038
Maxygen 10,350 674,691
Myriad Genteics 5,225 (a) 314,806
Protein Design Labs 3,950 (a) 314,025
4,559,528
BUSINESS SERVICES--11.0%
Amdocs 38,600 (a) 2,844,337
Catalina Marketing 10,425 (a) 1,055,531
Convergys 73,025 (a) 2,820,591
Diamond Technology Partners 34,075 (a) 2,240,431
Digex 14,000 1,553,125
Exodus Communications 20,275 (a) 2,848,637
Luminant Worldwide 82,800 1,376,550
RSA Security 14,375 (a) 744,805
Sapient 22,150 (a) 1,857,831
Verio 36,025 (a) 1,623,377
18,965,215
COMPUTER EQUIPMENT--3.4%
Silicon Storage Technology 42,350 (a) 3,128,606
Visual Networks 47,900 (a) 2,718,325
5,846,931
COMPUTER SOFTWARE/SERVICES--21.1%
Citrix Systems 22,275 (a) 1,475,719
Dendrite International 206,050 (a) 4,314,172
Digital River 43,150 (a) 927,725
Digitas 31,650 775,425
eLoyalty 88,000 2,101,000
Extreme Networks 39,275 3,102,725
Macromedia 47,700 (a) 4,307,906
MarchFirst 30,552 (a) 1,090,324
Mercury Interactive 27,750 (a) 2,199,187
New Era of Networks 21,775 (a) 854,669
Peregrine Systems 43,825 (a) 2,939,014
Rational Software 27,150 (a) 2,076,975
Razorfish 38,750 1,065,625
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES (CONTINUED)
Remedy 31,225 (a) 1,315,353
Symantec 31,425 (a) 2,360,803
TenFold 33,200 2,008,600
USinternetworking 63,525 2,461,594
Xcelera.com 6,300 (a) 1,008,000
36,384,816
DISTRIBUTION--.7%
Patterson Dental 31,000 (a) 1,185,750
ELECTRONICS--4.1%
Gentex 130,475 (a) 4,835,730
Titan 44,175 (a) 2,252,925
7,088,655
FINANCIAL SERVICES--2.7%
iGATE Capital 16,625 (a) 750,203
Metris Cos. 61,875 2,405,391
Silicon Valley Bancshares 21,700 (a) 1,559,687
4,715,281
HEALTHCARE SERVICES--.1%
Heatheon/WebMD 7,075 162,725
MANUFACTURING--1.2%
Zomax 33,975 (a) 2,046,994
MEDICAL SUPPLIES & EQUIPMENT--3.0%
MiniMed 23,575 (a) 3,052,962
Nanogen 9,850 (a) 334,900
Sybron International 64,325 (a) 1,865,425
5,253,287
OIL SERVICES--4.0%
BJ Services 40,000 (a) 2,955,000
Nabor Industries 48,125 (a) 1,867,852
Weatherford International 35,875 (a) 2,114,383
6,937,235
PHARMACEUTICALS--2.8%
Celgene 12,725 (a) 1,266,933
Forest Laboratories 22,850 (a) 1,930,825
IDEC Pharmaceuticals 8,750 (a) 859,687
Regeneron Pharmaceuticals 28,700 (a) 848,444
4,905,889
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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PUBLISHING & BROADCASTING--3.0%
Insight Communications 94,975 1,958,859
Radio One 48,400 3,224,650
5,183,509
RETAIL--1.6%
Dollar Tree Stores 23,675 (a) 1,234,059
Focus Affiliates Warrants 102,500 (a) -
Men's Wearhouse 51,050 (a) 1,512,356
2,746,415
SEMICONDUCTORS & EQUIPMENT--7.8%
ASM Lithography Holding 10,350 (a) 1,156,612
Brooks Automation 45,850 (a) 2,865,625
Cree 7,050 (a) 795,769
Lam Research 56,250 (a) 2,534,766
SDL 15,450 (a) 3,288,919
Teradyne 33,275 (a) 2,736,869
13,378,560
TELECOMMUNICATION EQUIPMENT--7.2%
ADTRAN 14,500 (a) 861,844
CIENA 23,425 (a) 2,954,478
Digital Microwave 99,675 (a) 3,376,491
Harris 118,075 4,080,967
Tekelec 29,875 (a) 1,109,109
12,382,889
TELECOMMUNICATION SERVICES--12.8%
Allegiance Telecom 26,975 (a) 2,174,859
Covad Communications Group 14,150 (a) 1,025,875
Crown Castle International 66,925 (a) 2,534,784
Inet Technologies 29,200 1,545,775
McLeodUSA, Cl. A 27,250 (a) 2,311,141
Partner Communications, ADR 132,200 2,197,825
Pinnacle Holdings 24,000 (a) 1,326,000
Spectrasite Holdings 100,700 (a) 2,851,069
TeleCorp PCS 42,875 2,218,781
Time Warner Telecom, Cl. A 22,550 1,792,725
Tritel 52,875 2,022,469
22,001,303
COMMON STOCKS (CONTINUED) Shares Value ($)
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TRANSPORTATION--1.3%
USFreightways 59,775 2,237,827
UTILITIES--.8%
Calpine 14,200 (a) 1,334,800
TOTAL COMMON STOCKS
(cost $130,959,301) 157,317,609
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Principal
SHORT-TERM INVESTMENTS--4.4% Amount ($) Value ($)
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COMMERCIAL PAPER;
American Express Credit Corp.,
6.35%, 4/3/00
(cost $7,597,319) 7,600,000 7,597,319
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TOTAL INVESTMENTS (cost $138,556,620) 95.6% 164,914,928
CASH AND RECEIVABLES (NET) 4.4% 7,564,574
NET ASSETS 100.0% 172,479,502
(A) NON-INCOME PRODUCING.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 138,556,620 164,914,928
Cash 4,685,145
Receivable for investment securities sold 5,577,556
Receivable for shares of Common Stock subscribed 1,970
Dividends and interest receivable 5,579
Prepaid expenses 32,788
175,217,966
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 160,161
Due to Premier Mutual Fund Services, Inc. 25,873
Payable for investment securities purchased 2,383,411
Payable for shares of Common Stock redeemed 65,745
Accrued expenses 103,724
2,738,914
--------------------------------------------------------------------------------
NET ASSETS ($) 172,479,052
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 202,796,745
Accumulated investment (loss) (656,205)
Accumulated net realized gain (loss) on investments (56,019,796)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4 26,358,308
--------------------------------------------------------------------------------
NET ASSETS ($) 172,479,052
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
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Net Assets ($) 170,327,458 1,186,781 935,596 28,088 1,129
Shares Outstanding 12,922,072 93,230 72,859 2,134 85.837
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 13.18 12.73 12.84 13.16 13.15
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 316,830
Cash dividends 64,989
TOTAL INCOME 381,819
EXPENSES:
Management fee-Note 3(a) 587,264
Shareholder servicing costs-Note 3(c) 335,565
Directors' fees and expenses-Note 3(d) 27,402
Professional fees 26,570
Prospectus and shareholders' reports 19,731
Custodian fees-Note 3(c) 17,395
Registration fees 17,127
Distribution fees-Note 3(b) 3,479
Interest expense--Note 2 485
Miscellaneous 3,006
TOTAL EXPENSES 1,038,024
INVESTMENT (LOSS) (656,205)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-NOTE 4 ($):
Net realized gain (loss) on investments 45,674,882
Net unrealized appreciation (depreciation) on investments 14,077,775
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 59,752,657
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 59,096,452
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 2000(a) Year Ended
(Unaudited) September 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (656,205) (1,177,210)
Net realized gain (loss) on investments 45,674,882 (42,856,475)
Net unrealized appreciation
(depreciation) on investments 14,077,775 74,458,889
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 59,096,452 30,425,204
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 216,339,478 430,006,751
Class B shares 1,009,073 248,030
Class C shares 773,515 70,596
Class R shares 5,638 12,535
Class T shares 1,000 -
Cost of shares redeemed:
Class A shares (238,934,770) (447,139,797)
Class B shares (84,465) (216,349)
Class C shares (12,519) (17,414)
Class R shares (6,802) (2,299)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (20,909,852) (17,037,947)
TOTAL INCREASE (DECREASE) IN NET ASSETS 38,186,600 13,387,257
--------------------------------------------------------------------------------
NET ASSETS ($)
Beginning of Period 134,292,452 120,905,195
END OF PERIOD 172,479,052 134,292,452
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
March 31, 2000 Year Ended
(Unaudited)(a) September 30, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 20,712,245 50,297,987
Shares redeemed (22,780,691) (52,184,629)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,068,446) (1,886,642)
--------------------------------------------------------------------------------
CLASS B
Shares sold 81,357 32,602
Shares redeemed (7,316) (26,803)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 74,041 5,799
--------------------------------------------------------------------------------
CLASS C
Shares sold 64,904 8,244
Shares redeemed (1,033) (2,080)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 63,871 6,164
--------------------------------------------------------------------------------
CLASS R
Shares sold 405 1,352
Shares redeemed (595) (282)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (190) 1,070
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 86 -
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Six Months Ended
March 31, 2000 Year Ended September 30,
----------------------------------------------------------------
CLASS A SHARES (Unaudited) 1999 1998 1997 1996 1995
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PER SHARE DATA ($):
Net asset value,
beginning of period 8.94 7.16 15.94 14.81 16.31 15.35
Investment Operations:
Investment income (loss)--net (.05)(a) (.08)(a) (.12)(a) (.33) (.12) .40
Net realized and unrealized
gain (loss) on investments 4.29 1.86 (8.66) 1.46 .01 1.23
Total from Investment Operations 4.24 1.78 (8.78) 1.13 (.11) 1.63
Distributions:
Dividends from investment
income-net -- -- -- -- (.28) (.44)
Dividends from net realized
gain on investments -- -- -- -- (1.11) (.23)
Total Distributions -- -- -- -- (1.39) (.67)
Net asset value, end of period 13.18 8.94 7.16 15.94 14.81 16.31
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) 47.43(c) 24.86 (55.08) 7.63 (.71) 11.21
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets .66(c) 1.41 1.24 1.20 1.11 1.03
Ratio of interest expense,
loan committment fees
and dividends on
securities sold short to
average net assets .00(c,d) .00(d) .19 .47 .39 .08
Ratio of net investment income
(loss) to average net assets (.42)(c) (.90) (1.04) 1.44 (.66) 2.55
Portfolio Turnover Rate 122.45(c) 165.12 106.58 76.28 131.43 298.60
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Net Assets, end of period
($ x 1,000) 170,327 134,027 120,782 405,599 480,638 572,077
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES LOAD.
(C) NOT ANNUALIZED.
(D) AMOUNT REPRESENTS LESS THAN .01%
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
March 31, 2000 Year Ended September 30,
--------------------------------------------------------------
CLASS B SHARES (Unaudited) 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 8.67 7.01 15.74 14.73 14.84
Investment Operations:
Investment (loss)-net (.10)(b) (.15)(b) (.22)(b) (.22) (.10)
Net realized and unrealized
gain (loss) on investments 4.16 1.81 (8.51) 1.23 (.01)
Total from
Investment Operations 4.06 1.66 (8.73) 1.01 (.11)
Net asset value, end of period 12.73 8.67 7.01 15.74 14.73
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 46.83(d) 23.68 (55.46) 6.86 (.74)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.10(d) 2.31 2.09 1.95 1.47(d)
Ratio of interest expense
and loan committment fees
to average net assets .00(d,e) .00(e) .19 .43 .49(d)
Ratio of net investment (loss)
to average net assets (.89)(d) (1.81) (1.89) (2.22) (1.40)(d)
Portfolio Turnover Rate 122.45(d) 165.12 106.58 76.28 131.43
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Net Assets, end of period
($ x 1,000) 1,187 166 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)
Six Months Ended
March 31, 2000 Year Ended September 30,
--------------------------------------------------------------
CLASS C SHARES (Unaudited) 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 8.75 7.06 15.76 14.83 14.84
Investment Operations:
Investment (loss)-net (b) (.11) (.15) (.18) (.37) (.24)
Net realized and unrealized
gain (loss) on investments 4.20 1.84 (8.52) 1.30 .23
Total from
Investment Operations 4.09 1.69 (8.70) .93 (.01)
Net asset value, end of period 12.84 8.75 7.06 15.76 14.83
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TOTAL RETURN (%) (C) 46.74(d) 23.94 (55.20) 6.27 (.07)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.07(d) 2.25 2.39 1.99 1.42(d)
Ratio of interest expense and
loan committment fees to
average net assets .00(d,e) .00(e) .07 .53 .47(d)
Ratio of net investment (loss)
to average net assets (.88)(d) (1.70) (1.90) (2.37) (1.32)(d)
Portfolio Turnover Rate 122.45(d) 165.12 106.58 76.28 131.43
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Net Assets, end of period
($ x 1,000) 936 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.
Six Months Ended
March 31, 2000 Year Ended September 30,
---------------------------------------------------------------
CLASS R SHARES (Unaudited) 1999 1998 1997 1996(a)
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PER SHARE DATA ($):
Net asset value,
beginning of period 8.93 7.16 16.02 14.84 14.84
Investment Operations:
Investment (loss)- net (.05)(b) (.10)(b) (.15)(b) (.10) (.02)
Net realized and unrealized
gain (loss) on investments 4.28 1.87 (8.71) 1.28 .02
Total from
Investment Operations 4.23 1.77 (8.86) 1.18 --
Net asset value, end of period 13.16 8.93 7.16 16.02 14.84
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 47.37(c) 24.72 (55.31) 7.95 --
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets .63(c) 1.70 1.57 .76 .73(c)
Ratio of interest expense
and loan commitment fees
to average net assets .00(c,d) .00(d) .16 .30 .35(c)
Ratio of net investment (loss)
to average net assets (.40)(c) (1.16) (1.30) (.90) (.56)(c)
Portfolio Turnover Rate 122.45(c) 165.12 106.58 76.28 131.43
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 28 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.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
For the period ended
March 31, 2000
CLASS T SHARES (Unaudited)(a)
-------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.65
Investment Operations:
Investment (loss)-net (.05)(b)
Net realized and unrealized gain (loss)
on investments 1.55
Total from Investment Operations 1.50
Net asset value, end of period 13.15
-------------------------------------------------------------------------------
TOTAL RETURN (%) 12.88(c)
-------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio operating expenses to average net assets .44(c)
Ratio of net investment (loss)
to average net assets (.37)(c)
Portfolio Turnover Rate 122.45(c)
Net Assets, end of period ($ x 1,000) 1
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 2000
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 four series, including the fund. The fund's investment
objective is capital growth. The Dreyfus Corporation (the "Manager") serves as
the fund' s investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A. (" Mellon"), 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 series are allocated
among them on a pro rata basis.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (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 $3,891 during the period ended March 31, 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, if any, 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 $88,629,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1999. The
amount is calculated based on Federal income tax regulations which may differ
from financial reporting in accordance with generally accepted accounting
principles. If not applied, $2,409,000 of the carryover expires in fiscal 2004
and $86,220,000 expires in 2007.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 average daily amount of borrowings outstanding during the period ended March
31, 2000 was approximately $14,200, 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 March
31, 2000 pursuant to the agreement.
DSC retained $6,472 during the period ended March 31, 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 value of the daily net assets of Class T shares. During the period ended
March 31, 2000, Class B, Class C and Class T shares were charged $1,925 and
$1,553 and $1, respectively, pursuant to the Plan, of which $238 and $218 for
Class B and Class C 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 March 31, 2000, Class A, Class B, Class C and
Class T shares were charged $194,563, $642, $518 and $1, respectively, pursuant
to the Shareholder Services Plan, of which $13,191, $79 and $73 for Class A,
Class B and Class C 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 March 31, 2000, the fund was charged $97,989 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 March 31, 2000, the fund was
charged $17,395 pursuant to the custody agreement.
(d) Each Director, who is not an "affiliated person" as defined in the Act, is a
Board member of one or more funds comprising a certain group of funds ("Fund
Group" ) within the Dreyfus complex. Effective January 1, 2000, for their
participation as a Director in a Fund Group, each such Director receives an
annual fee of $40,000, $6,000 for each meeting attended in person and $500 for
each telephonic meeting in which they participate. 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 director who
was not an "affiliated person" as defined in the Act received from the fund an
annual fee
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
of $4,500 and an attendance fee of $250 per meeting. The Chairman of the Board
received an additional 25% of such compensation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended March 31, 2000, amounted to
$172,209,731 and $186,123,426, respectively.
At March 31, 2000, accumulated net unrealized appreciation on investments was
$26,358,308, consisting of $40,571,155 gross unrealized appreciation and
$14,212,847 gross unrealized depreciation.
At March 31, 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).
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 009SA003
Dreyfus
Premier Emerging Markets Fund
SEMIANNUAL REPORT March 31, 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 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
15 Financial Highlights
20 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier Emerging
Markets Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Emerging
Markets Fund, covering the six-month period from October 1, 1999 through March
31, 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.
When the reporting period began, it had become apparent that global economic
growth was substantially stronger than many analysts had expected. In fact,
emerging market countries generally had already rebounded sharply from 1998's
global currency and credit crisis. The rally continued through the fourth
quarter of 1999 and into the first quarter of 2000, before peaking in early
March. The remainder of March saw high levels of volatility as emerging market
countries generally gave back a portion of their year-to-date gains.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Emerging Markets Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Daniel Beneat, Portfolio Manager
How did Dreyfus Premier Emerging Markets Fund perform relative to its benchmark
For the six-month period ended March 31, 2000, Dreyfus Premier Emerging Markets
Fund Class A shares produced a 42.98% total return, Class B shares returned
42.36% , Class C shares returned 42.38% and Class R shares returned 43.16%.(1)
This compares with the 28.48% total return provided by the Morgan Stanley
Capital International Emerging Markets Free Index (MSCI/EMF) for the same
period.(2)
From its February 1, 2000 inception through March 31, 2000, the fund's Class T
shares produced a total return of 6.48%.(1)
We attribute the fund's strong performance during the period to a continuation
of the economic and market recoveries that have occurred in emerging markets and
to the success of our individual stock selection strategy within those markets.
It is noteworthy that these total returns were produced with considerable
volatility during the second half of the reporting period. However, we are
pleased to report that the fund generated positive returns during that time.
Investing in this segment of the market can be volatile and it is 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
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
of new technologies and the globalization of industries and brands; relative
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,
focusing on companies that have exhibited strong growth and that we believe 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?
Over the past six months the fund has benefited from market conditions in
emerging market countries that have exhibited a great deal of resiliency. In
some cases during the reporting period, individual markets have retraced all of
their losses from the 1997/1998 Asian currency and credit crisis. Leading the
way was the Russian market. As oil prices rose during the period, our
investments in Russian oil and gas companies helped drive performance. In
addition, new leadership in Russia has reduced political turmoil and has
fostered a newfound optimism regarding countrywide reform.
In Asia, we are most pleased with the fund's investments in Taiwan, which are
almost all telecommunications- and technology-oriented. After quickly recovering
from a severe earthquake last fall, the Taiwanese government focused a great
deal of its energies on having its technology sector recognized as one of the
best in the world. It accomplished this by continuing to provide outsourcing
services for numerous large semiconductor companies in the United States, Europe
and Japan.
Latin America also exhibited strong growth, particularly in Mexico and Brazil.
The Mexican economy is improving so rapidly that Moody's Investors Service
recently upgraded Mexico's bonds to investment grade. Many of the fund's Mexican
banks produced positive returns because of increased investor confidence in
their financial system. In Brazil, the economy continued to grow and we are
pleased by the strong gains achieved by many of the fund's holdings within the
telecommunications area.
What is the fund's current strategy?
In an attempt to increase portfolio diversification, over the past year we have
gradually increased the number of holdings in the fund. As of March 31, 2000,
the fund had 106 holdings, compared to 81 holdings at the beginning of the
reporting period. Given the strong recovery in emerging markets, we are looking
to emphasize those countries that, in our view, are well positioned for such an
environment. Accordingly, we have increased our exposure in Taiwan, Mexico,
Brazil and Russia and decreased our weightings in Argentina, Venezuela and
Colombia.
We are also pleased that the fund recently received local approval to invest in
India, a country that continued to perform exceptionally well during the period.
We are particularly excited about investment opportunities in software,
telecommunications and media-oriented companies, many of which appear
undervalued in our opinion. Like Taiwan, which specializes in outsourced
manufacturing of semiconductors, India is quickly making a name for itself in
producing software for major U.S. and international companies. We currently plan
to opportunistically seek out those software companies in India that we believe
have the potential to be tomorrow' s leaders.
April 12, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN THE
CASES OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASES 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,
2000, 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 ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY
CAPITAL INTERNATIONAL EMERGING MARKETS FREE INDEX (MSCI/EMF) 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, AND INCLUDES GROSS DIVIDENDS REINVESTED.
THE FUND'S RETURNS ARE HISTORICAL FOR THE PERIODS NOTED AND ARE NOT
INDICATIVE OF FUTURE RESULTS. MARKET VOLATILITY AND INTEREST-RATE CHANGES, AMONG
OTHER FACTORS, CAN DRAMATICALLY AFFECT A FUND'S SHORT-TERM RETURNS. INVESTORS
CONSIDERING AN INVESTMENT IN THE FUND SHOULD CAREFULLY REVIEW THE PROSPECTUS FOR
THE FUND'S INVESTMENT APPROACH, FEES, AND THE RISKS OF INVESTING, AND SHOULD
REVIEW THE FUND'S PERFORMANCE OVER TIME. INVESTORS SHOULD CONTACT DREYFUS OR
THEIR FINANCIAL REPRESENTATIVE FOR MORE INFORMATION, INCLUDING THE FUND'S MOST
RECENT PERFORMANCE.
<TABLE>
<CAPTION>
<S> <C> <C>
The Fund
STATEMENT OF INVESTMENTS
March 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
COMMON STOCKS--96.1% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
BRAZIL--9.1%
Aracruz Celulose, ADR 3,000 (a) 63,563
Companhia Paranaense de Energia-Copel, ADR 5,000 42,500
Companhia Siderurgica Nacional, ADR 5,500 193,187
Petroleo Brasileiro 200 50,691
Tele Norte Leste Participacoes, ADR 4,000 106,500
Uniao de Bancos Brasileiros, GDR 4,400 139,700
596,141
CHILE--1.0%
Enersis, ADR 1,500 30,469
Santa Isabel, ADR 3,000 32,344
62,813
CHINA--.5%
Shanghai Petrochemical, ADR 3,200 35,600
CZECH REPUBLIC--1.5%
Ceske Radiokomunikace, GDR 1,000 (a) 51,550
Cesky Telecom, GDR 2,000 (a) 43,700
95,250
GREECE--3.7%
Alpha Credit Bank 5,600 (a) 93,520
Hellenic Telecommunications Organization 1,000 28,417
National Bank of Greece 1,100 77,164
Stet Hellas Telecommunications, ADR 1,600 (a) 46,000
245,101
HONG KONG--7.7%
ASM Pacific Technology 30,000 101,712
Cathay Pacific Airways 11,000 16,316
China Telecom, ADR 390 (a) 69,128
Computer & Technolgies Holdings 10,000 (a) 19,264
E-New Media 100,000 (a) 32,427
HSBC 8,400 98,167
Henderson Land Development 12,000 56,558
Sun Hung Kai Properties 8,000 69,349
Sunevision 10,000 (a) 16,695
TCC Hong Kong Cement 100,000 29,216
508,832
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
HUNGARY--1.6%
MOL Magyar Olaj-es Gazipari, GDR 1,500 29,025
Magyar Tavkozlesi, ADR 1,750 78,094
107,119
INDIA--9.7%
Global Tele-Systems 2,000 101,493
Himachal Futuristic Communications 3,000 116,480
Leading Edge Systems 2,000 91,571
Polaris Software Lab 2,000 86,821
Sterlite Industries 4,000 71,606
Sun Pharmaceutical Industries 3,000 44,037
Videsh Sanchar Nigam, GDR 1,200 31,740
Zee Telefilms 4,000 93,761
637,509
INDONESIA--.6%
PT Astra International 40,000 (a) 19,155
PT Gudang Garam 5,000 9,544
PT Hanjaya Mandala Sampoerna 8,000 (a) 13,316
42,015
ISRAEL--1.9%
Bank Hapoalim 6,700 21,334
Bank Leumi Le-Israel 9,500 21,996
Bezeq Israeli Telecommunication 15,000 81,037
124,367
MALAYSIA--2.3%
Malaysian Pacific Industries 5,000 65,739
Tenaga Nasional 25,000 82,495
148,234
MEXICO--11.8%
Alfa 12,200 46,804
Cemex, Cl. CPO 10,000 45,496
Coca-Cola Femsa, ADR 3,000 55,687
Corporacion Interamericana de Entretenimiento, Cl. B 12,898 (a) 64,953
Desc, ADR 2,200 (a) 33,000
Fomento Economico Mexicano, ADR 1,000 45,000
Grupo Financiero Banamex Accival, Cl. O 12,000 (a) 55,114
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
MEXICO (CONTINUED)
Grupo Financiero Bancomer, Cl. O 120,000 67,953
Grupo Isma, ADR 6,500 83,281
Grupo Radio Centro, ADR 4,000 53,750
Grupo Televisa, GDR 500 (a) 34,000
Panamerican Beverages, ADR 3,000 52,875
Telefonos de Mexico, Cl. L, ADR 2,000 134,000
771,913
PERU--.7%
Credicorp 4,400 47,575
PHILIPPINES--.3%
Equitable PCI Bank 4,600 6,595
Manila Electric 7,500 13,123
19,718
POLAND--1.4%
Elektrim Spolka Akcyjna 1,800 (a) 26,153
KGHM Polska Miedz, GDR 4,000 64,000
90,153
RUSSIA--2.3%
OAO Lukoil, ADR 1,400 87,850
Surgutneftegaz, ADR 1,500 20,063
Vimpel-Communications, ADR 1,000 (a) 42,313
150,226
SINGAPORE--3.2%
Asia Pulp & Paper, ADR 2,500 (a) 18,437
DBS Group 8,000 105,645
NatSteel 18,000 42,071
Neptune Orient Lines 20,000 (a) 17,646
Overseas Union Bank 6,000 26,995
210,794
SOUTH AFRICA--5.6%
Anglovaal Industries 50,000 48,255
Anglovaal Mining 4,000 28,800
DataTec 3,000 53,310
De Beers, ADR 2,000 (a) 45,875
Profurn 75,691 52,526
Sappi 9,600 74,414
Sasol, ADR 10,000 65,000
368,180
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH KOREA--10.6%
H & CB, GDR 1,700 32,938
Hite Brewery 1,664 (a) 37,187
Korea Electric Power, ADR 7,000 110,687
Korea Telecom, ADR 2,000 87,500
Pohang Iron & Steel, ADR 3,600 99,000
SK 2,600 59,986
SK Telecom, ADR 3,000 117,000
Samsung Electronics 350 106,085
Trigem Computer 594 45,951
696,334
TAIWAN--13.2%
Acer Peripherals 30,000 150,838
Bank Sinopac 24,976 15,759
China Steel, GDR 2,500 35,313
Far Eastern Textile 35,310 73,103
Hitron Technology 10,000 (a) 91,686
Pacific Electrical Wire & Cable 21,000 (a) 26,914
Procomp Informatics 20,000 (a) 193,230
Siliconware Precision Industries, GDR 4,305 (a) 58,656
Taiwan Semiconductor Manufacturing, ADR 2,500 (a) 142,500
United Microelectronics 20,000 (a) 77,555
865,554
THAILAND--1.3%
Samart Corp. 40,000 (a) 35,700
Thai Rung Union Car 50,000 48,922
84,622
TURKEY--4.1%
Akbank, GDR 25,000 91,875
Haci Omer Sabanci, GDR 6,000 88,500
Tansas Izmir Buyuksehir Belediyesi Ic ve Dis Ticaret 400,000 (a) 86,564
266,939
UNITED KINGDOM--1.1%
Antofagasta Holdings 12,000 75,499
VENEZUELA--.9%
Compania Anonima Nacional Telefonos
de Venezuela, ADR 2,000 58,000
TOTAL COMMON STOCKS
(cost $5,782,069) 6,308,488
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
PREFERRED STOCKS--2.8% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
BRAZIL:
Banco do Estado de Sao Paulo 400 (a) 16,198
Caemi Mineracao e Metalurgica 1,000 89,286
Companhia Siderurgica de Tubarao 5,000 (a) 78,629
TOTAL PREFERRED STOCKS
(cost $114,330) 184,113
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $5,896,399) 98.9% 6,492,601
CASH AND RECEIVABLES (NET) 1.1% 74,600
NET ASSETS 100.0% 6,567,201
A NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 5,896,399 6,492,601
Cash 439,504
Cash denominated in foreign currencies 137,198 138,638
Receivable for investment securities sold 32,546
Receivable for shares of Common Stock subscribed 18,440
Dividends receivable 18,178
Prepaid expenses 22,426
7,162,333
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 776
Due to Premier Mutual Fund Services, Inc. 2,305
Payable for investment securities purchased 575,033
Payable for shares of Common Stock redeemed 150
Accrued expenses 16,868
595,132
--------------------------------------------------------------------------------
NET ASSETS ($) 6,567,201
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 5,286,537
Accumulated undistributed investment (loss) (29,752)
Accumulated net realized gain (loss) on investments and
foreign currency transactions 712,808
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 597,608
--------------------------------------------------------------------------------
NET ASSETS ($) 6,567,201
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 3,101,173 2,113,043 1,250,711 101,209 1065.23
Shares Outstanding 184,600 127,485 75,213 6,006 63.492
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 16.80 16.57 16.63 16.85 16.78
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $2,209 foreign taxes withheld at source) 29,299
Interest 4,147
TOTAL INCOME 33,446
EXPENSES:
Management fee--Note 3(a) 28,393
Custodian fees 21,642
Registration fees 20,134
Audit fees 13,266
Shareholder servicing costs--Note 3(c) 10,399
Distribution fees--Note 3(b) 7,028
Prospectus and shareholders' reports 4,927
Directors' fees and expenses--Note 3(d) 561
Legal fees 131
Loan commitment fees--Note 2 8
Miscellaneous 2,427
TOTAL EXPENSES 108,916
Less--expense reimbursement due to undertaking--Note 3(a) 50,936
NET EXPENSES 57,980
INVESTMENT (LOSS) (24,534)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency transactions
880,166
Net realized gain (loss) on forward currency exchange contracts 499
NET REALIZED GAIN (LOSS) 880,665
Net unrealized appreciation (depreciation) on investments and foreign
currency transactions 459,250
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,339,915
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,315,381
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 2000(a) Year Ended
(Unaudited) September 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income (loss)--net (24,534) (10,612)
Net realized gain (loss) on investments 880,665 510,762
Net unrealized appreciation (depreciation)
on investments 459,250 318,405
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,315,381 818,555
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
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 ($):
Net proceeds from shares sold:
Class A shares 2,453,823 719,143
Class B shares 1,518,530 1,317,475
Class C shares 979,039 263,874
Class R shares 92,600 1,000
Class T shares 1,000 --
Dividends reinvested:
Class A shares -- 8,004
Class B shares -- 883
Class C shares -- 464
Class R shares -- 1,296
Cost of shares redeemed:
Class A shares (1,780,842) (471,947)
Class B shares (284,655) (979,889)
Class C shares (273,986) (60,989)
Class R shares (174,999) (60,000)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 2,530,510 739,314
TOTAL INCREASE (DECREASE) IN NET ASSETS 3,845,891 1,547,222
--------------------------------------------------------------------------------
NET ASSETS ($)
Beginning of Period 2,721,310 1,174,088
END OF PERIOD 6,567,201 2,721,310
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
March 31, 2000 Year Ended
(Unaudited)(a) September 30, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 160,121 62,781
Shares issued for dividends reinvested -- 1,016
Shares redeemed (113,541) (39,398)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 46,580 24,399
--------------------------------------------------------------------------------
CLASS B
Shares sold 96,294 114,896
Shares issued for dividends reinvested -- 112
Shares redeemed (18,420) (82,097)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 77,874 32,911
--------------------------------------------------------------------------------
CLASS C
Shares sold 59,952 22,322
Shares issued for dividends reinvested -- 59
Shares redeemed (18,032) (5,088)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 41,920 17,293
--------------------------------------------------------------------------------
CLASS R
Shares sold 6,006 100
Shares issued for dividends reinvested -- 164
Shares redeemed (11,301) (4,963)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (5,295) (4,699)
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 63 --
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
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.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Six Months Ended
March 31, 2000 Year Ended September 30,
---------------------------
CLASS A SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.75 7.24 12.50
Investment Operations:
Investment income (loss)--net (.07)(b) (.04)(b) .04
Net realized and unrealized gain (loss)
on investments 5.12 4.62 (5.30)
Total from Investment Operations 5.05 4.58 (5.26)
Distributions:
Dividends from investment income--net -- (.07) --
Net asset value, end of period 16.80 11.75 7.24
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 42.98(d) 63.71 (42.08)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.12(d) 2.25 1.15(d)
Ratio of net investment income (loss)
to average net assets (.42)(d) (.37) .35(d)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 1.14(d) 7.26 2.44(d)
Portfolio Turnover Rate 74.04(d) 194.20 234.00(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 3,101 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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
March 31, 2000 Year Ended September 30,
----------------------
CLASS B SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.64 7.21 12.50
Investment Operations:
Investment income (loss)--net (.11)(b) (.12)(b) .00(c)
Net realized and unrealized gain (loss)
on investments 5.04 4.59 (5.29)
Total from Investment Operations 4.93 4.47 (5.29)
Distributions:
Dividends from investment income-net -- (.04) --
Net asset value, end of period 16.57 11.64 7.21
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (D) 42.36(e) 62.29 (42.32)(e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.50(e) 3.00 1.54(e)
Ratio of net investment (loss)
to average net assets (.71)(e) (1.10) (.04)(e)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 1.11(e) 7.60 2.48(e)
Portfolio Turnover Rate 74.04(e) 194.20 234.00(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 2,113 578 120
(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$.01 PER SHARE.
(D) EXCLUSIVE OF SALES CHARGE.
(E) NOT ANNUALIZED
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
March 31, 2000 Year Ended September 30,
-------------------------
CLASS C SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.68 7.21 12.50
Investment Operations:
Investment income (loss)--net (.11)(b) (.11)(b) .00(c)
Net realized and unrealized gain (loss)
on investments 5.06 4.61 (5.29)
Total from Investment Operations 4.95 4.50 (5.29)
Distributions:
Dividends from investment income-net -- (.03) --
Net asset value, end of period 16.63 11.68 7.21
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (D) 42.38(e) 62.59 (42.32)(e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.50(e) 3.00 1.53(e)
Ratio of net investment (loss)
to average net assets (.70)(e) (1.21) (.03)(e)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 1.07(e) 7.65 2.43(e)
Portfolio Turnover Rate 74.04(e) 194.20 234.00(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,251 389 115
(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 $.01 PER SHARE.
(D) EXCLUSIVE OF SALES CHARGE.
(E) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
March 31, 2000 Year Ended September 30,
-------------------------
CLASS R SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.77 7.25 12.50
Investment Operations:
Investment income (loss)- net (.06)(b) (.01)(b) .05
Net realized and unrealized gain (loss)
on investments 5.14 4.61 (5.30)
Total from Investment Operations 5.08 4.60 (5.25)
Distributions:
Dividends from investment income-net -- (.08) --
Net asset value, end of period 16.85 11.77 7.25
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 43.16(c) 64.01 (42.00)(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.00(c) 2.00 1.03(c)
Ratio of net investment income (loss)
to average net assets (.41)(c) (.08) .47(c)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 1.15(c) 6.93 2.44(c)
Portfolio Turnover Rate 74.04(c) 194.20 234.00(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 101 133 116
(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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
For the period ended,
March 31, 2000
CLASS T SHARES (Unaudited)(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 16.11
Investment Operations:
Investment (loss)-- net (.02)(b)
Net realized and unrealized gain (loss) on investments .69
Total from Investment Operations .67
Distributions:
Dividends from investment income-net --
Net asset value, end of period 16.78
--------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 6.48(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .41(d)
Ratio of net investment (loss) to average net assets (.12)(d)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation .23(d)
Portfolio Turnover Rate 74.04(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 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 (Unaudited)
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 four series. 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' 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (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 received net
earnings credits of $2,249 during the period ended March 31, 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 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 $140,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1999. This
amount is calculated based on Federal income tax regulations which may differ
from financial reporting in accordance with generally accepted accounting
principles. If not applied, the carryover expires in fiscal 2007.
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 March 31, 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, 2000 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 $50,936 during the period ended March
31, 2000.
(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
March 31, 2000, Class B, Class C and Class T shares were charged $4,569, $2,458
and $1, respectively, pursuant to the Plan, of which $415 and $243 for Class B
and Class C shares, respectively, were paid to DSC.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(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 March 31, 2000, Class A, Class B, Class C, and
Class T shares were charged $3,173, $1,523, $819 and $1, respectively, pursuant
to the Shareholder Services Plan, of which $219, $138 and $81 for Class A, Class
B and Class C 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 March 31, 2000, the fund was charged $1,834 pursuant to the transfer
agency agreement.
(d) Each Director, who is not an "affiliated person" as defined in the Act, is a
Board member of one or more funds comprising a certain group of funds ("Fund
Group" ) within the Dreyfus complex. Effective January 1, 2000, for their
participation as a Director in a Fund Group, each such Director receives an
annual fee of $40,000, $6,000 for each meeting attended in person and $500 for
each telephonic meeting in which they participate. 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 director 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.
(e) During the period ended March 31, 2000, the fund incurred total brokerage
commissions of $29,731, of which $35, was paid to Drefus 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 March 31, 2000, amounted to
$5,685,813 and $3,217,333, respectively.
At March 31, 2000, accumulated net unrealized appreciation on investments was
$596,202, consisting of $1,012,622 gross unrealized appreciation and $416,420
gross unrealized depreciation.
At March 31, 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
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 329/678SA003
Dreyfus
Premier Growth and Income Fund
SEMIANNUAL REPORT March 31, 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 Statement of Investments
11 Statement of Financial Futures
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
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 semiannual report for Dreyfus Premier Growth and
Income Fund, covering the six-month period from October 1, 1999 through March
31, 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 D. Ramos, CFA.
The past six months have been highly volatile -- but generally rewarding -- for
investors in large-cap U.S. stocks. While the market's advance through the
fourth quarter of 1999 was led primarily by technology stocks and large-cap
growth stocks in a fast-growing economy, the large-capitalization sector of the
stock market corrected substantially during the first two months of 2000,
causing small- and mid-cap stocks to generally outperform large-capitalization
stocks.
In March, investor sentiment appeared to shift once more, and large companies
generally provided higher returns than small- and mid-cap companies. In fact,
every economic sector in the large-cap market, as represented by the Standard &
Poor' s 500 Composite Stock Price Index, produced positive returns in March,
reversing the extreme narrowness of the market that had prevailed during most of
the reporting period. Large-cap technology stocks, which had dominated the stock
market as a group during most of the reporting period, displayed high levels of
volatility but relatively modest returns. While it is too soon to determine
whether the broadening of the market is likely to persist, we believe that it is
a positive sign for the stock market overall.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Growth and Income Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
Douglas D. Ramos, CFA, Portfolio Manager
How did Dreyfus Premier Growth and Income Fund perform relative to its
benchmark?
For the six-month period ended March 31, 2000, Dreyfus Premier Growth and Income
Fund produced a total return of 17.01% for Class A shares, 16.56% for Class B
shares, 16.59% for Class C shares, and 17.11% for Class R shares.(1) In
comparison, the fund' s benchmark, the Standard & Poor's 500 Composite Stock
Price Index (" S& P 500" ), produced a total return of 17.50% for the same
period.(2)
From its February 1, 2000 inception through March 31, 2000, the fund's Class T
shares produced a total return of 7.05%.(1)
We attribute the fund' s positive performance primarily to strength in the
volatile technology sector, which accounted for most of the returns generated by
the fund and the S& P 500. Our performance relative to the S&P 500 suffered
slightly as a result of weakness among value-oriented stocks, to which the fund
had more exposure than the Index throughout the reporting period.
What is the fund's investment approach?
The fund invests primarily in 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
that generally exhibits a weighted average price-to-earnings ratio less than,
and a long-term projected earnings growth rate greater than, that of the S&P
500.
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 an array of financial and business data. Typically, we look for companies
with strong positions in their industries The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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?
The fund' s performance was generally supported by the investment environment
that prevailed during the period. Robust consumer spending, low rates of
inflation and technology-driven productivity gains powered the U.S. economy to
its longest peacetime expansion in history. Stock markets benefited from the
economy' s strong growth, particularly the fast-growing technology sector.
Although the fund had fewer technology investments compared to the S&P 500, our
individual stock selections in the technology sector performed relatively
strongly. The fund benefited from investments in companies providing products
and services to facilitate build-out of wireless communications systems and the
Internet. Our holdings included software providers, such as Oracle;
semiconductor manufacturers, such as LSI Logic; and cellular equipment
providers, such as Ericsson (LM) Telephone.
Interest rates rose, a condition that generally undermines financial stocks. The
financial services sector contributed positively to the fund's performance over
the past six months. Interest-rate concerns were offset by the favorable impact
of a strong global economic recovery on the revenues of financial companies.
Greater activity in the financial markets also boosted the revenues of
investment companies, including such holdings as Citigroup and Morgan Stanley
Dean Witter.
Nevertheless, rising interest rates negatively affected most market sectors. The
Federal Reserve Board raised interest rates during the period, in an effort to
slow the U.S. economy and forestall a future rise in inflation. Consumer
cyclical stocks, such as building materials producers and specialty retail
companies, were hurt by fears that economic growth and consumer spending might
slow in response to rising interest rates. Consumer staples stocks also suffered
from product-pricing issues and potential competition from the Internet.
What is the fund's current strategy?
The market has recently appeared to largely ignore most traditional measures of
a company' s intrinsic worth, expanding the gap between the values of growth
stocks and value stocks. As a result, recent performance of value stocks has
been disappointing.
However, we continue to believe it more important to maintain the disciplined
approach that is the foundation of our broadly diversified, value-tilted
portfolio. We believe that some reasonably valued stocks of fast-growing
companies in technology and other sectors offer attractive investment
opportunities. Therefore, we have continued to focus on such stocks, selling
holdings that rise above reasonable valuations while looking for additional
investment opportunities.
April 12, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN THE
CASES OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASES 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 ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX ("S&P 500 INDEX") IS A WIDELY ACCEPTED,
UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE.
THE FUND'S RETURNS ARE HISTORICAL FOR THE PERIODS NOTED AND ARE NOT
INDICATIVE OF FUTURE RESULTS. MARKET VOLATILITY AND INTEREST-RATE CHANGES, AMONG
OTHER FACTORS, CAN DRAMATICALLY AFFECT A FUND'S SHORT-TERM RETURNS. INVESTORS
CONSIDERING AN INVESTMENT IN THE FUND SHOULD CAREFULLY REVIEW THE PROSPECTUS FOR
THE FUND'S INVESTMENT APPROACH, FEES, AND THE RISKS OF INVESTING, AND SHOULD
REVIEW THE FUND'S PERFORMANCE OVER TIME. INVESTORS SHOULD CONTACT DREYFUS OR
THEIR FINANCIAL REPRESENTATIVE FOR MORE INFORMATION, INCLUDING THE FUND'S MOST
RECENT PERFORMANCE.
<TABLE>
<CAPTION>
<S> <C> <C>
The Fund
STATEMENT OF INVESTMENTS
March 31, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
COMMON STOCKS--96.7% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES--.9%
At Home, Cl. A 2,500 (a) 82,344
McGraw-Hill Cos. 11,200 509,600
Valassis Communications 8,500 (a) 283,156
875,100
CONSUMER DURABLES--1.3%
Ford Motor 8,700 399,656
General Motors 7,000 579,687
Leggett & Platt 12,800 275,200
1,254,543
CONSUMER NON-DURABLES--3.4%
Anheuser-Busch Cos. 6,000 373,500
Estee Lauder, Cl. A 5,600 280,350
Intimate Brands 8,000 328,000
Kimberly-Clark 11,000 616,000
PepsiCo 33,500 1,157,844
Procter & Gamble 9,400 528,750
3,284,444
CONSUMER SERVICES--5.5%
AMFM 6,000 (a) 372,750
Adelphia Communications, Cl. A 8,800 (a) 431,200
CBS 20,000 (a) 1,132,500
Carnival 2,000 49,625
Cendant 51,800 (a) 958,300
Clear Channel Communications 4,000 (a) 276,250
Gannett 7,000 492,625
Infinity Broadcasting, Cl. A 8,750 (a) 283,282
McDonald's 4,500 169,031
Time Warner 11,700 1,170,000
5,335,563
ELECTRONIC DATA PROCESSING--6.4%
Apple Computer 3,400 (a) 461,763
Compaq Computer 26,000 692,250
Hewlett-Packard 7,300 967,706
International Business Machines 16,000 1,888,000
Lexmark International Group, Cl. A 11,100 (a) 1,173,825
Sun Microsystems 6,000 (a) 562,219
Unisys 14,000 (a) 357,000
6,102,763
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC TECHNOLOGY--16.7%
American Tower, Cl. A 14,600 (a) 720,874
Applied Materials 16,000 (a) 1,508,000
Boeing 12,000 455,250
Cabletron Systems 15,500 (a) 454,344
Computer Sciences 15,600 (a) 1,234,350
Ericsson (LM) Telephone, Cl. B, ADR 11,000 1,031,937
General Dynamics 6,000 298,500
Intel 29,100 3,839,381
LSI Logic 12,000 (a) 871,500
Motorola 9,000 1,281,375
National Semiconductor 14,400 (a) 873,000
Nortel Networks 9,000 1,134,000
3COM 4,000 (a) 222,500
Teradyne 15,000 (a) 1,233,750
Texas Instruments 3,000 480,000
United Technologies 7,000 442,312
16,081,073
ENERGY MINERALS--5.4%
Burlington Resources 4,000 148,000
Conoco, Cl. A 19,000 467,875
Exxon Mobil 20,100 1,564,031
Kerr-McGee 3,800 219,450
Royal Dutch Petroleum, ADR 30,000 1,726,875
Texaco 16,600 890,175
USX-Marathon Group 8,000 208,500
5,224,906
FINANCE--15.0%
American Express 3,800 565,962
American General 6,300 353,587
American International Group 13,651 1,494,784
Associates First Capital, Cl. A 16,000 343,000
Bank of America 13,200 692,175
Bank of New York 12,000 498,750
Chase Manhattan 16,000 1,395,000
Citigroup 38,050 2,256,841
Federal Home Loan Mortgage 17,400 768,863
Federal National Mortgage Association 22,800 1,286,775
Fleet Boston Financial 12,028 439,022
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCE (CONTINUED)
Household International 4,400 164,175
John Hancock Financial Services 17,200 (a) 310,675
Morgan (J.P.) 4,000 527,000
Morgan Stanley Dean Witter 20,600 1,680,188
UnionBanCal 11,400 314,213
Wells Fargo 24,000 982,500
XL Capital, Cl. A 6,000 332,250
14,405,760
HEALTH SERVICES--2.8%
Columbia/HCA Healthcare 63,400 1,604,812
Wellpoint Health Networks 15,300 (a) 1,069,088
2,673,900
HEALTH TECHNOLOGY--5.7%
American Home Products 10,800 579,150
Baxter International 5,000 313,438
Bristol-Myers Squibb 15,000 866,250
Johnson & Johnson 6,000 420,375
Lilly (Eli) 6,500 409,500
Merck & Co. 24,500 1,522,062
Pharmacia & Upjohn 13,400 793,950
Warner-Lambert 6,000 585,000
5,489,725
INDUSTRIAL SERVICES--1.4%
Schlumberger 17,000 1,300,500
NON-ENERGY MINERALS--.7%
Alcoa 4,000 281,000
Weyerhaeuser 7,100 404,700
685,700
PROCESS INDUSTRIES--1.7%
Dow Chemical 4,000 456,000
duPont (E.I.) deNemours 7,000 370,125
International Paper 3,000 128,250
PPG Industries 5,000 261,563
Rohm & Haas 8,900 397,162
1,613,100
PRODUCER MANUFACTURING--8.5%
Emerson Electric 5,000 264,375
General Electric 25,400 3,941,763
Georgia-Pacific 13,100 518,269
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
PRODUCER MANUFACTURING (CONTINUED)
Honeywell International 31,875 1,679,414
Ingersoll-Rand 4,800 212,400
Masco 20,300 416,150
Tyco International 23,300 1,162,087
8,194,458
RETAIL TRADE--4.1%
Federated Department Stores 2,600 (a) 108,550
Gap 6,000 298,875
Lowes 18,600 1,085,775
May Department Stores 9,950 283,575
TJX Cos. 18,500 410,469
Target 23,000 1,719,250
3,906,494
TECHNOLOGY SERVICES--6.7%
BMC Software 7,100 (a) 350,563
Charter Communications, Cl. A 46,000 (a) 659,094
Computer Associates International 20,100 1,189,669
Electronic Data Systems 20,000 1,283,750
First Data 10,000 442,500
Network Associates 23,300 (a) 751,425
Oracle 21,000 (a) 1,639,312
Synopsys 2,800 (a) 136,500
6,452,813
UTILITIES--10.5%
ALLTEL 6,400 403,600
AT&T 33,500 1,884,375
Bell Atlantic 10,000 611,250
Coastal 25,500 1,173,000
El Paso Energy 4,000 161,500
Enron 5,000 374,375
GTE 24,000 1,704,000
MCI WorldCom 29,400 (a) 1,332,187
Niagara Mohawk Power 7,000 (a) 94,500
SBC Communications 23,000 966,000
Sprint (FON Group) 20,800 1,310,400
Texas Utilities 3,000 89,063
10,104,250
TOTAL COMMON STOCKS
(cost $69,972,467) 92,985,092
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--3.1% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
5.66%, 4/27/2000 2,867,000 (b) 2,855,761
5.65%, 6/15/2000 80,000 79,079
TOTAL SHORT-TERM INVESTMENTS
(cost $2,934,326) 2,934,840
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $72,906,793) 99.8% 95,919,932
CASH AND RECEIVABLES (NET) .2% 183,683
NET ASSETS 100.0% 96,103,615
(A) NON-INCOME PRODUCING.
(B) PARTIALLY HELD BY THE CUSTODIAN IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF FINANCIAL FUTURES
March 31, 2000 (Unaudited)
Market Value
Covered Unrealized
Contracts by Contracts ($) Expiration Appreciation ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL FUTURES LONG
Standard & Poors 500 5 1,894,125 June 2000 35,581
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 72,906,793 95,919,932
Cash 61,761
Receivable for investment securities sold 262,384
Receivable for shares of Common Stock subscribed 154,935
Dividends receivable 70,942
Receivable for futures variation margin--Note 4(a) 13,750
Prepaid expenses 31,434
96,515,138
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 98,152
Due to Premier Mutual Fund Services, Inc. 39,691
Payable for shares of Common Stock redeemed 140,022
Payable for investment securities purchased 81,648
Accrued expenses 52,010
411,523
--------------------------------------------------------------------------------
NET ASSETS ($) 96,103,615
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 71,355,277
Accumulated investment (loss) (342,116)
Accumulated net realized gain (loss) on investments 2,041,734
Accumulated net unrealized appreciation (depreciation)
on investments (including $35,581 net unrealized
appreciation on financial futures) --Note 4(b) 23,048,720
--------------------------------------------------------------------------------
NET ASSETS ($) 96,103,615
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 33,520,746 58,585,103 3,645,822 350,874 1,070
Shares Outstanding 1,480,880 2,648,058 164,488 15,352 47.326
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 22.64 22.12 22.16 22.86 22.61
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $51 foreign taxes withheld at source) 466,920
Interest 54,710
TOTAL INCOME 521,630
EXPENSES:
Management fee--Note 3(a) 354,026
Distribution fees--Note 3(b) 229,078
Shareholder servicing costs--Note 3(c) 204,583
Professional fees 20,995
Registration fees 20,129
Directors' fees and expenses--Note 3(d) 15,543
Prospectus and shareholders' reports 10,313
Custodian fees--Note 3(c) 7,418
Loan commitment fees--Note 2 907
Miscellaneous 754
TOTAL EXPENSES 863,746
INVESTMENT (LOSS) (342,116)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 2,155,365
Net realized gain (loss) on financial futures 188,775
NET REALIZED GAIN (LOSS) 2,344,140
Net unrealized appreciation (depreciation) on investments
(including $35,581 net unrealized appreciation on
financial futures) 12,547,964
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 14,892,104
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 14,549,988
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 2000 (a) Year Ended
(Unaudited) September 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net (342,116) (200,325)
Net realized gain (loss) on investments 2,344,140 8,490,097
Net unrealized appreciation (depreciation)
on investments 12,547,964 10,564,611
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 14,549,988 18,854,383
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares -- (3,173)
Class R shares -- (136)
Net realized gain on investments:
Class A shares (2,669,147) (62,028)
Class B shares (4,777,051) (118,673)
Class C shares (282,608) (6,549)
Class R shares (25,617) (492)
TOTAL DIVIDENDS (7,754,423) (191,051)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 2,625,641 4,691,782
Class B shares 3,428,471 5,471,141
Class C shares 538,140 838,908
Class R shares 12,063 86,739
Class T shares 1,024 --
Dividends reinvested:
Class A shares 2,418,729 59,473
Class B shares 4,197,222 105,597
Class C shares 196,213 4,503
Class R shares 25,616 627
Cost of shares redeemed:
Class A shares (5,496,055) (11,473,975)
Class B shares (9,908,696) (19,454,642)
Class C shares (547,155) (1,961,486)
Class R shares (13,939) (103,735)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (2,522,726) (21,735,068)
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,272,839 (3,071,736)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 91,830,776 94,902,512
END OF PERIOD 96,103,615 91,830,776
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 2000
FOR CLASS T SHARES
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
March 31, 2000 (a) Year Ended
(Unaudited) September 30, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(B)
Shares sold 122,153 223,976
Shares issued for dividends reinvested 115,563 3,022
Shares redeemed (253,344) (560,213)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (15,628) (333,215)
--------------------------------------------------------------------------------
CLASS B(B
Shares sold 162,206 267,228
Shares issued for dividends reinvested 204,743 5,438
Shares redeemed (467,948) (957,634)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (100,999) (684,968)
--------------------------------------------------------------------------------
CLASS C
Shares sold 25,509 40,647
Shares issued for dividends reinvested 9,553 231
Shares redeemed (25,831) (98,456)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 9,231 (57,578)
--------------------------------------------------------------------------------
CLASS R
Shares sold 557 3,998
Shares issued for dividends reinvested 1,212 31
Shares redeemed (633) (4,953)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,136 (924)
--------------------------------------------------------------------------------
CLASS T
Shares sold 47 --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 47 --
(A) FROM FEBRUARY 1, 2000 ( COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 2000
FOR CLASS T SHARES.
(B) DURING THE PERIOD ENDED MARCH 31, 2000, 61,888 CLASS B SHARES REPRESENTING
$1,299,454 WERE AUTOMATICALLY CONVERTED TO 60,673 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Six Months Ended
March 31, 2000 Year Ended September 30,
-------------------------------------------------
CLASS A SHARES (Unaudited) 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 21.04 17.39 20.94 18.45 12.50
Investment Operations:
Investment income (loss)--net (.03)(b) .06(b) .10 .24 .10
Net realized and unrealized gain (loss)
on investments 3.46 3.63 (1.44) 3.39 5.94
Total from Investment Operations 3.43 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 22.64 21.04 17.39 20.94 18.45
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (D) 17.01(e) 21.22 (7.00) 20.90 48.24(e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .67(e) 1.31 1.25 1.24 .94(e)
Ratio of net investment income (loss)
to average net assets (.12)(e) .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 20.12(e) 102.85 133.00 265.33 205.64(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 33,521 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 $.01.
(D) EXCLUSIVE OF SALES CHARGE.
(E) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
March 31, 2000 Year Ended September 30,
---------------------------------------------
CLASS B SHARES (Unaudited) 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 20.67 17.22 20.85 18.37 12.50
Investment Operations:
Investment income (loss)--net (.11)(b) (.09)(b) (.06) .10 .03
Net realized and unrealized gain (loss)
on investments 3.39 3.58 (1.41) 3.38 5.87
Total from Investment Operations 3.28 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 22.12 20.67 17.22 20.85 18.37
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 16.56(d) 20.26 (7.69) 20.08 47.14(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05(d) 2.06 2.00 2.00 1.52(d)
Ratio of net investment income (loss)
to average net assets (.50)(d) (.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 20.12(d) 102.85 133.00 265.33 205.64(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 58,585 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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
March 31, 2000 Year Ended September 30,
---------------------------------------------
CLASS C SHARES (Unaudited) 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 20.70 17.24 20.87 18.40 12.50
Investment Operations:
Investment income (loss)--net (.10) (.08)(b) (.06) .09 .03
Net realized and unrealized
gain (loss) on investments 3.39 3.58 (1.41) 3.38 5.88
Total from Investment Operations 3.29 3.50 (1.47) 3.47 5.91
Distributions:
Dividends from investment income--net -- -- -- (.11) (.01)
Dividends from net realized
gain on investments (1.83) (.04) (2.16) (.89) --
Total Distributions (1.83) (.04) (2.16) (1.00) (.01)
Net asset value, end of period 22.16 20.70 17.24 20.87 18.40
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 16.59(d) 20.29 (7.63) 19.89 47.27(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.03(d) 2.04 1.96 2.00 1.52(d)
Ratio of net investment income (loss)
to average net assets (.47)(d) (.43) (.25) .52 .30(d)
Decrease reflected in above expense ratios
due to undertaking by
The Dreyfus Corporation -- -- .01 .11 .30(d)
Portfolio Turnover Rate 20.12(d) 102.85 133.00 265.33 205.64(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 3,646 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.
Six Months Ended
March 31, 2000 Year Ended September 30,
---------------------------------------------
CLASS R SHARES (Unaudited) 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 21.21 17.52 21.11 18.42 12.50
Investment Operations:
Investment income--net (.01)(b) .09(b) .07 .20 .43
Net realized and unrealized
gain (loss) on investments 3.49 3.65 (1.40) 3.67 5.61
Total from Investment Operations 3.48 3.74 (1.33) 3.87 6.04
Distributions:
Dividends from investment income--net -- (.01) (.10) (.29) (.12)
Dividends from net realized
gain on investments (1.83) (.04) (2.16) (.89) --
Total Distributions (1.83) (.05) (2.26) (1.18) (.12)
Net asset value, end of period 22.86 21.21 17.52 21.11 18.42
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 17.11(c) 21.34 (6.89) 22.25 48.38(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .60(c) 1.17 1.15 .99 .79(c)
Ratio of net investment income
to average net assets (.05)c .41 .57 1.50 1.01(c)
Decrease reflected in above
expense ratios due to undertaking
by The Dreyfus Corporation -- -- .01 .12 .30(c)
Portfolio Turnover Rate 20.12(c) 102.85 133.00 265.33 205.64(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 351 302 265 259 174
(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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
March 31, 2000(a)
CLASS T SHARES (Unaudited)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 21.13
Investment Operations:
Investment (loss)--net (.01)
Net realized and unrealized gain (loss)
on investments 1.49
Total from Investment Operations 1.48
Net asset value, end of period 22.61
--------------------------------------------------------------------------------
TOTAL RETURN (%) (B) 7.05(c)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .23(c)
Ratio of net investment (loss)
to average net assets (.02)(c)
Portfolio Turnover Rate 20.12(c)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) THE FUND COMMENCED SELLING CLASS T SHARES ON FEBRUARY 1, 2000.
(B) EXCLUSIVE OF SALES CHARGE.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 four 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.
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, is 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 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 The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
(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.
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 March 31, 2000, the fund did not borrow under the line of credit.
NOTE 3 --Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .75 of 1% of the value of the fund's average
daily net assets and is payable monthly.
DSC retained $89 during the period ended March 31, 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 may pay the distributor for
distributing their shares at an annual rate of .75 of The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 March 31, 2000, Class B, Class C and Class T shares were
charged $216,149, $12,928 and $1, respectively, pursuant to the Plan, of which
$11,749 and $731 for Class B and Class C shares, respectively, were paid to DSC
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares may 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 March 31, 2000, Class A, Class B, Class
C and Class T shares were charged $41,242, $72,050, $4,309 and $1, respectively,
pursuant to the Shareholder Services Plan, of which $2,260, $3,916 and $244 for
Class A, Class B and Class C 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 March 31, 2000, the fund was charged $42,653 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 March 31, 2000, the fund was
charged $7,418 pursuant to the custody agreement.
(d) Each Director, who is not an "affiliated person" as defined in the Act, is a
Board member of one or more funds comprising a certain group of funds ("Fund
Group" ) within the Dreyfus complex. Effective January 1, 2000, for their
participation as a Director in a Fund Group, each such Director receives an
annual fee of $40,000, $6,000 for each meeting attended in person and $500 for
each telephonic meeting in which they participate. 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 director 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.
(e) During the period ended March 31, 2000, the fund incurred total brokerage
commissions of $49,211, of which $1,970, was paid to Dreyfus Brokerage Services,
a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures during the period ended
March 31, 2000, amounted to $18,583,569 and $31,648,193, respectively.
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. Contracts opened at March 31, 2000, are set
forth in the statement of Financial Futures.
(b) At March 31, 2000, accumulated net unrealized appreciation on investments
and financial futures was $23,048,720, consisting of $26,398,709 gross
unrealized appreciation and $3,349,989 gross unrealized depreciation.At March
31, 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
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 320SA003
Dreyfus Premier
Market Neutral Fund
SEMIANNUAL REPORT March 31, 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 Statement of Investments
11 Statement of Securities Sold Short
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
20 Financial Highlights
25 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier Market Neutral Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Market
Neutral Fund, covering the six-month period from October 1, 1999 through March
31, 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 managers, John S. Cone and David Jiang.
The past six months have been highly volatile -- but generally rewarding -- for
investors in large-cap U.S. stocks. While the market's advance through the
fourth quarter of 1999 was led primarily by technology stocks and large-cap
growth stocks in a fast-growing economy, the large-capitalization sector of the
stock market corrected substantially during the first two months of 2000,
causing small- and mid-cap stocks to generally outperform large-capitalization
stocks.
In March, investor sentiment appeared to shift once more, and large companies
generally provided higher returns than small- and mid-cap companies. In fact,
every economic sector in the large-cap market, as represented by the Standard
and Poor's 500 Composite Stock Price Index, produced positive returns in March,
reversing the extreme narrowness of the market that had prevailed during most of
the reporting period. Large-cap technology stocks, which had dominated the stock
market as a group during most of the reporting period, provided high levels of
volatility with relatively modest returns. While it is too soon to determine
whether the broadening of the market is likely to persist, we believe that it is
a positive sign for the stock market overall.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Market Neutral Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF FUND PERFORMANCE
John S. Cone and David Jiang, Portfolio Co-Managers
How did Dreyfus Premier Market Neutral Fund perform relative to its benchmark?
For the six-month period ended March 31, 2000, Dreyfus Premier Market Neutral
Fund produced a total return of -8.46% for Class A shares, -8.77% for Class B
shares, -8.75% for Class C shares, and -8.38% for Class R shares.(1) This
compares with a 2.65% total return provided by the Merrill Lynch 3-Month U.S.
Treasury Bill Index for the same period.(2)
For the period from its February 1, 2000 inception through March 31, 2000, the
fund's Class T shares produced a total return of 0.74%.(1)
We attribute the fund' s underperformance during the period to investors'
preference for a narrow group of small-cap growth stocks, particularly those
within the technology sector. Because we attempt to maintain a portfolio
invested across many sectors, we were not heavily invested in technology and
therefore did not fully participate in that sector' s strong returns. In
addition, the portfolio maintained a slight tilt toward the value style of
investing, which was out of favor during the period and ultimately held back our
performance.
What is the fund's investment approach?
The term "market neutral" refers to the fund's investment approach of looking to
maintain minimum exposure to general stock market risk in its pursuit of
long-term capital appreciation. To pursue this goal, the fund simultaneously
takes both "long" and "short" positions in equity securities. By "long" we mean
those investment positions that are bought with the anticipation that the
security will appreciate in value. On the other hand, "short" positions are
those securities that the fund does not own but sells in anticipation of a
decline in the market value of the security. To complete a short transaction,
the fund must borrow the security to make delivery to the buyer.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
The strategy behind this two-pronged approach is to initiate long positions that
we believe are undervalued and to sell short those stocks that we believe are
overvalued. In this way, we attempt to construct a portfolio that is expected to
have relatively small net exposure to overall stock market risk. Of course, this
approach may involve more risk than other funds that do not engage in the
sophisticated hedging transactions of the fund.
The fund also attempts to maintain long and short positions that are in equal
dollar amount of securities in an attempt to balance out market-risk
characteristics of the portfolio, including relatively neutral allocations with
respect to industries. For example, if the fund is long 5% within an industry,
it will also tend to be short other securities within that same industry by 5%.
The idea is to buy those stocks that we believe are the better companies within
that particular industry, and sell short those that are considered less
attractive. In doing so, we attempt to generate attractive returns for our
shareholders.
What other factors influenced the fund's performance?
One of the main factors that influenced performance has been the continued
strength of the U.S. economy. Much of this continued growth can be attributed to
the so-called "new economy," where it is believed possible for the U.S. to
achieve higher long-term growth rates. Continued economic growth typically helps
fuel the growth of many companies. However, during the reporting period this
trend was somewhat limited to small-cap growth companies, many of which do not
fit into the fund' s investment discipline. As a result, our performance
suffered.
Today' s new economy continued to propel domestic economic growth for several
reasons. First, increased globalization has broadened the avenues by which U.S.
companies can continue to prosper. By connecting internationally, many domestic
companies may be able to flourish, even if the U.S. economy begins to slow.
Second, financial deregulation has produced increased competition within many
industries, which in turn has driven down prices for goods and services. And
third, the new economy is thought to be driven in part by the revolution i
information technology, which has resulted in a strong interest in technology
stocks. In fact, technology has largely been credited with increasing
productivity in the U.S. by allowing companies to gain access to information
more quickly, which helps reduce costs and inventories.
What is the fund's current strategy?
We have continued to follow our strategy of attempting to find companies that,
in our view, are poised to increase or decrease in value in the near term. Based
on that analysis, we make long or short investment choices, respectively. Our
current strategy does not include making investment decisions based on sector
allocations.
That said, we believe that the value style of investing, which emphasizes
companies with lower than average price-to-earnings ratios that have the
potential for better than expected earnings, should eventually return to favor.
While there is no guarantee when or if this change will take place, we have
maintained the portfolio' s slight tilt toward value stocks, while at the same
time trying not to sacrifice potential gains within the currently favored
environment for growth stocks.
April 12, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN THE
CASES OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASES 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. PERFORMANCE FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY
THE DREYFUS CORPORATION PURSUANT TO AN AGREEMENT IN EFFECT THROUGH SEPTEMBER 30,
2000, 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: BLOOMBERG L.P. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MERRILL LYNCH 3-MONTH U.S. TREASURY
BILL INDEX IS CALCULATED USING BILLS THAT MATURE CLOSEST TO, BUT NOT BEYOND, 91
DAYS.
THE FUND'S RETURNS ARE HISTORICAL FOR THE PERIODS NOTED AND ARE NOT
INDICATIVE OF FUTURE RESULTS. MARKET VOLATILITY AND INTEREST-RATE CHANGES, AMONG
OTHER FACTORS, CAN DRAMATICALLY AFFECT A FUND'S SHORT-TERM RETURNS. INVESTORS
CONSIDERING AN INVESTMENT IN THE FUND SHOULD CAREFULLY REVIEW THE PROSPECTUS FOR
THE FUND'S INVESTMENT APPROACH, FEES, AND THE RISKS OF INVESTING, AND SHOULD
REVIEW THE FUND'S PERFORMANCE OVER TIME. INVESTORS SHOULD CONTACT DREYFUS OR
THEIR FINANCIAL REPRESENTATIVE FOR MORE INFORMATION, INCLUDING THE FUND'S MOST
RECENT PERFORMANCE.
The Fund
STATEMENT OF INVESTMENTS
STATEMENT OF INVESTMENTS
March 31, 2000 (Unaudited)
COMMON STOCKS--94.8% Shares Value ($)
-------------------------------------------------------------------------------
COMMERCIAL SERVICES--5.0%
Donnelley (R.R.) & Sons 1,500 31,406
DoubleClick 300 (a) 28,088
Ikon Office Solutions 2,800 17,325
SUPERVALU 4,800 90,900
Sysco 1,100 39,256
206,975
CONSUMER DURABLES--2.1%
Carlisle Cos. 500 20,000
Centex 300 7,144
Hasbro 1,100 18,150
Shaw Industries 500 7,594
Whirlpool 600 35,175
88,063
CONSUMER NON-DURABLES--4.8%
Alberto-Culver, Cl. B 800 19,050
Coca-Cola Enterprises 1,200 25,875
General Mills 800 28,950
International Flavors & Fragrances 600 21,038
Jones Apparel Group 300 (a) 9,562
Pepsi Bottling Group 900 18,000
Ralston-Purina Group 2,800 76,650
199,125
CONSUMER SERVICES--11.3%
Block (H&R) 1,800 80,550
Brinker International 1,100 (a) 32,656
Chris-Craft Industries 3 (a) 191
Comcast, Cl. A 800 (a) 34,700
Cox Communications, Cl. A 600 (a) 29,100
Darden Restaurants 1,400 24,938
Harcourt General 700 26,075
Infinity Broadcasting, Cl. A 1,000 (a) 32,375
Knight-Ridder 1,900 96,781
MGM Grand 2,000 (a) 48,000
Mandalay Resort Group 200 (a) 3,375
Metro-Goldwyn-Mayer 1,000 (a) 25,437
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
CONSUMER SERVICES (CONTINUED)
Premier Parks 700 (a) 14,700
John Wiley & Sons, Cl. A 1,200 21,600
470,478
ELECTRONIC TECHNOLOGY--6.5%
Adaptec 700 (a) 27,038
Goodrich (B.F.) 900 (a) 25,819
Intel 200 (a) 26,388
L-3 Communications Holdings 400 (a) 20,800
National Semiconductor 600 (a) 36,375
QUALCOMM 300 (a) 44,794
SCI Systems 600 (a) 32,288
Solectron 1,400 (a) 56,088
269,590
ENERGY--4.2%
Burlington Resources 400 14,800
Kerr-McGee 1,900 109,725
Murphy Oil 100 5,762
USX-Marathon Group 1,700 44,306
174,593
FINANCE--19.6%
AXA Financial 2,200 78,925
Ambac Financial Group 600 30,225
Charter One Financial 630 13,230
Duke Realty Investments 1,000 19,125
Fannie Mae 200 11,288
Federal Home Loan Mortgage 700 30,931
GreenPoint Financial 1,200 23,550
Lehman Brothers Holdings 900 87,300
Loews 600 30,000
MBNA 1,500 38,250
Marshall & Ilsley 700 40,425
Morgan (J.P.) 400 52,700
Morgan Stanley Dean Witter & Co. 800 65,250
Pacific Century Financial 5,000 101,562
SouthTrust 3,000 76,312
The Fund
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
FINANCE (CONTINUED)
St. Paul Companies 1,100 37,538
UnionBanCal 1,600 44,100
Zions Bancorporation 800 33,300
814,011
HEALTH TECHNOLOGY--4.1%
Chiron 100 (a) 4,987
Genzyme 800 (a) 40,100
Mallinckrodt Group 1,000 28,750
MedImmune 100 (a) 17,412
Minimed 400 (a) 51,800
Celera Genomics 300 (a) 27,469
170,518
INDUSTRIAL SERVICES--.6%
BJ Services 300 (a) 22,162
NON-ENERGY MINERALS--4.9%
Freeport-McMoRan Copper, Cl. B 900 (a) 10,856
Georgia-Pacific 1,200 47,475
Homestake Mining 5,300 31,800
Johns Manville 2,300 25,300
Nucor 1,400 70,000
Weyerhaeuser 300 17,100
202,531
PROCESS INDUSTRIES--6.4%
Archer Daniels Midland 4,200 43,575
Engelhard 2,100 31,762
International Paper 400 17,100
Lancaster Colony 700 21,394
Pall 2,300 51,606
Praxair 400 16,650
RPM 5,600 61,600
Sonoco Products 700 16,450
Willamette Industries 100 4,012
264,149
PRODUCER MANUFACTURING--3.1%
Dana 500 14,094
Illinois Tool Works 646 35,692
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
PRODUCER MANUFACTURING (CONTINUED)
Minnesota Mining & Manufacturing 900 79,706
129,492
RETAIL TRADE--3.7%
Albertson's 500 15,500
Autonation 2,600 (a) 20,638
Bed Bath & Beyond 300 (a) 11,812
Best Buy 300 (a) 25,800
Claire's Stores 1,700 34,106
Costco Wholesale 300 (a) 15,769
Federated Department Stores 600 (a) 25,050
Neiman Marcus Group, Cl. B 210 (a) 5,775
154,450
TECHNOLOGY SERVICES--10.6%
America Online 800 (a) 53,800
Cardinal Health 1,250 57,344
Columbia/HCA Healthcare 2,700 68,344
Express Scripts, Cl. A 900 (a) 37,800
First Data 800 35,400
Fiserv 400 (a) 14,875
Oracle 700 (a) 54,644
Perot Systems, Cl. A 800 (a) 16,100
RealNetworks 200 (a) 11,387
Tech Data 600 (a) 19,725
United Healthcare 600 35,775
Wellpoint Health Networks 500 (a) 34,938
440,132
TRANSPORTATION--.6%
CNF Transportation 500 13,875
Tidewater 300 9,544
23,419
UTILITIES--7.3%
MCI WorldCom 700 (a) 31,719
NTL 675 (a) 62,648
NEXTLINK Communications, Cl. A 200 (a) 24,737
Northern States Power 1,600 31,800
Northpoint Communications Group 1,000 (a) 23,062
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
UTILITIES (CONTINUED)
Telephone & Data Systems 300 33,300
US Cellular 200 (a) 14,200
UtiliCorp United 750 13,547
Wisconsin Energy 3,400 67,788
302,801
TOTAL COMMON STOCKS
(cost $3,944,762) 3,932,489
--------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--2.8% Amount ($) Value ($)
--------------------------------------------------------------------------------
Repurchase Agreement;
Bear Stearns & Cos., 6.08% dated 3/31/2000,
due 4/3/2000 in the amount of $117,823
[fully collateralized by $125,000 U.S. Treasury Bonds,
3.625%, 4/15/2028, value $120,722]
(cost $117,763) 117,763 117,763
--------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $4,062,525) 97.6% 4,050,252
CASH AND RECEIVABLES (NET) 2.4% 100,268
NET ASSETS 100.0% 4,150,520
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF SECURITIES SOLD SHORT
March 31, 2000 (Unaudited)
COMMON STOCKS Shares Value ($)
--------------------------------------------------------------------------------
COMMERCIAL SERVICES--1.3%
Lamar Advertising 300 13,650
Omnicom Group 300 28,031
Sodexho Marriott Services 700 10,500
52,181
CONSUMER DURABLES--1.6%
Harley-Davidson 300 23,812
Maytag 1,300 43,062
66,874
CONSUMER NON-DURABLES--10.7%
Brown-Forman, Cl. B 300 16,331
Campbell Soup 2,200 67,650
Clorox 1,400 45,500
Coca-Cola 900 42,244
Colgate-Palmolive 500 28,188
Gillette 700 26,381
Heinz (H.J.) 400 13,950
Hershey Foods 1,800 87,750
Kimberly-Clark 786 44,016
NIKE, Cl. B 700 27,738
Rexall Sundown 1,400 19,775
Wrigley, (Wm) Jr 300 23,044
442,567
CONSUMER SERVICES--4.8%
Central Newspapers 1,700 57,162
Meredith 1,200 33,225
Reader's Digest Association, Cl. A 1,400 49,525
Sinclar Broadcast Group, Cl. A 1,800 16,088
Starbucks 400 17,925
Stewart Enterprises 5,400 26,662
200,587
ELECTRONIC TECHNOLOGY--6.3%
Broadcom, Cl. A 300 72,862
General Motors, Cl. H 800 99,600
Lockheed Martin 1,800 36,788
Storage Technology 2,100 33,469
Tellabs 300 18,895
261,614
The Fund
STATEMENT OF SECURITIES SOLD SHORT (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
ENERGY--1.2%
Devon Energy 1,000 48,562
FINANCE--22.5%
American Express 700 104,256
Amsouth Bancorp 2,571 38,404
Bank of New York 3,100 128,844
CIGNA 300 22,725
CNA Financial 900 29,081
Cincinnati Financial 700 26,338
Commercial Federal 1,900 31,588
Countrywide Credit Industries 900 24,525
IndyMac Mortgage Holdings 1,500 22,406
Investment Technology Group 1,300 45,825
Legg Mason 1,100 47,575
MBIA 500 26,031
Meditrust 9,100 16,494
Mercury General 500 14,750
Northern Trust 700 47,294
Progressive 200 15,212
Ryder System 700 15,881
SLM Holding 1,800 59,962
Sovereign Bancorp 4,300 32,519
State Street 300 29,062
U.S. Bancorp 1,700 37,188
Union Planters 2,000 61,625
United Asset Management 2,600 45,012
UnumProvident 700 11,900
934,497
HEALTH TECHNOLOGY--7.7%
ALZA 700 26,294
American Home Products 800 42,900
Amgen 400 24,550
Becton, Dickinson & Co. 500 13,156
Lilly (Eli) & Co. 300 18,900
Medtronic 2,152 110,694
PE Biosystems Group 700 67,550
Sepracor 200 14,562
318,606
COMMON STOCKS (CONTINUED) Shares Value ($)
-------------------------------------------------------------------------------
INDUSTRIAL SERVICES--.9%
Rowan Cos. 700 20,606
Smith International 200 15,500
36,106
NON-ENERGY MINERALS--5.9%
AK Steel Holding 3,100 32,162
Martin Marietta Materials 400 19,000
Newmont Mining 900 20,194
Phelps Dodge 1,400 66,500
Southdown 500 29,500
Vulcan Materials 1,700 77,881
245,237
PROCESS INDUSTRIES--7.2%
Bowater 900 48,038
duPont (E.I.) deNemours & Co. 600 31,725
Cabot 700 21,350
Crane 700 16,494
Fort James 900 19,800
General Electric 300 46,556
Lyondell Petrochemical 2,000 29,500
Sealed Air 1,100 59,744
Wesco Financial 100 25,500
298,707
PRODUCER MANUFACTURING--3.8%
Armstrong World Industries 800 14,300
Autoliv 1,100 33,000
Federal-Mogul 3,300 55,069
Pitney Bowes 400 17,875
TRW 400 23,400
York International 400 9,350
Xerox 200 5,200
158,194
RETAIL TRADE--4.2%
CVS 600 22,538
Limited 1,100 46,338
Saks 1,500 21,750
Tandy 600 30,450
Walgreen 700 18,025
The Fund
STATEMENT OF SECURITIES SOLD SHORT (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
RETAIL TRADE (CONTINUED)
Whole Foods Market 900 37,294
176,395
TECHNOLOGY SERVICES--5.6%
Autodesk 700 31,850
Cambridge Technology Partners 1,100 14,919
Ceridian 900 17,269
Exodus Communications 200 28,100
J D Edwards 1,100 35,819
Manor Care 1,500 20,250
Network Associates 900 29,025
PeopleSoft 1,000 20,000
Tenet Healthcare 1,600 36,800
234,032
TRANSPORTATION--2.2%
CSX 1,300 30,550
Kansas City Southern Industries 300 25,781
US Airways Group 1,300 36,156
92,487
UTILITIES--8.3%
BroadWing 1,300 48,344
CINergy 1,100 23,650
Conectiv 1,700 29,750
Crown Castle International 400 15,150
DQE 900 40,950
IPALCO Enterprises 500 9,750
McLeodUSA, Cl. A 600 50,888
Montana Power 1,200 76,800
Williams Cos. 1,100 48,331
343,613
TOTAL SECURITIES SOLD SHORT (proceeds $3,810,526) 3,910,259
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments--Note 1(b) 4,062,525
4,050,252
Cash 128,098
Receivable from brokers for proceeds on securities sold short 3,810,526
Receivable for investment securities sold 238,043
Dividends and interest receivable 11,134
Prepaid expenses 87,674
Due from The Dreyfus Corporation 3,076
8,328,803
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to Premier Mutual Fund Services, Inc. 1,470
Securities sold short, at value
(proceeds $3,810,526)--see Statement
of Securities Sold Short 3,910,259
Payable for investment securities purchased 249,426
Dividends payable on securities sold short 3,050
Accrued expenses 14,078
4,178,283
--------------------------------------------------------------------------------
NET ASSETS ($) 4,150,520
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 5,365,502
Accumulated undistributed investment income--net 7,951
Accumulated net realized gain (loss) on investments (1,110,927)
Accumulated net unrealized appreciation (depreciation)
on investments and securities sold short--Note 4(b) (112,006)
--------------------------------------------------------------------------------
NET ASSETS ($) 4,150,520
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net Asset Value Per Share
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------
Net Assets ($) 1,661,353 1,621,940 407,840 458,380 1,007
Shares Outstanding 173,595 169,704 42,581 47,774 105.597
NET ASSET VALUE
PER SHARE ($) 9.57 9.56 9.58 9.59 9.54
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 112,587
Cash dividends 30,816
TOTAL INCOME 143,403
EXPENSES:
Management fee-Note 3(a) 32,179
Dividends on securities sold short 26,719
Registration fees 22,054
Auditing fees 10,074
Organization expenses 9,391
Prospectus and shareholders' reports 8,579
Distribution fees-Note 3(b) 7,884
Shareholder servicing costs-Note 3(c) 5,033
Legal fees 1,016
Directors' fees and expenses-Note 3(d) 815
Custodian fees 604
Miscellaneous 1,384
TOTAL EXPENSES 125,732
Less--expense reimbursement due to
undertaking--Note 3(a) (53,920)
NET EXPENSES 71,812
INVESTMENT INCOME--NET 71,591
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments:
Long transactions 191,116
Short sale transactions (387,710)
NET REALIZED GAIN (LOSS) (196,594)
Net unrealized appreciation (depreciation)
on investments and securities sold short (264,397)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (460,991)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (389,400)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 2000(a) Year Ended
(Unaudited) September 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income-net 71,591 127,832
Net realized gain (loss) on investments (196,594) (861,681)
Net unrealized appreciation (depreciation)
on investments (264,397) 545,446
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (389,400) (188,403)
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (68,327) (35,269)
Class B shares (54,088) (29,553)
Class C shares (13,728) (6,986)
Class R shares (19,903) (8,759)
Net realized gain on investments:
Class A shares -- (15,621)
Class B shares -- (16,475)
Class C shares -- (3,894)
Class R shares -- (3,880)
TOTAL DIVIDENDS (156,046) (120,437)
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
March 31, 2000(a) Year Ended
(Unaudited) September 30, 1999
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares -- 13,916
Class B shares 3,000 --
Class C shares 1,800 6,200
Class R shares -- 57,000
Class T shares 1,000 --
Dividends reinvested:
Class A shares 68,248 50,839
Class B shares 54,088 44,473
Class C shares 13,521 10,840
Class R shares 19,903 12,640
Cost of shares redeemed:
Class A shares -- (2,286)
Class B shares -- (104,600)
Class C shares (4,342) (551)
Class R shares -- (6,713)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 157,218 81,758
TOTAL INCREASE (DECREASE) IN NET ASSETS (388,228) (227,082)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 4,538,748 4,765,830
END OF PERIOD 4,150,520 4,538,748
Undistributed investment income--net 7,951 92,406
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
March 31, 2000 (a) Year Ended
(Unaudited) September 30, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold -- 1,285
Shares issued for dividends reinvested 6,943 4,576
Shares redeemed -- (209)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 6,943 5,652
--------------------------------------------------------------------------------
CLASS B
Shares sold 305 --
Shares issued for dividends reinvested 5,496 4,003
Shares redeemed -- (9,942)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 5,801 (5,939)
--------------------------------------------------------------------------------
CLASS C
Shares sold 176 566
Shares issued for dividends reinvested 1,371 973
Shares redeemed (453) (52)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,094 1,487
--------------------------------------------------------------------------------
CLASS R
Shares sold -- 5,269
Shares issued for dividends reinvested 2,021 1,137
Shares redeemed -- (653)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,021 5,753
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 106 --
(A) FROM FEBRUARY 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO MARCH 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Six Months Ended
March 31, 2000 Year Ended September 30,
----------------------
CLASS A SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 10.89 11.61 12.50
Investment Operations:
Investment income--net (b) .19 .35 .11
Net realized and unrealized gain (loss)
on investments (1.10) (.75) (1.00)
Total from Investment Operations (.91) (.40) (.89)
Distributions:
Dividends from investment income--net (.41) (.22) --
Dividends from net realized gain on investments -- (.10) --
Total Distributions (.41) (.32) --
Net asset value, end of period 9.57 10.89 11.61
------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) (8.46)(d) (3.53) (7.12)(d)
------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to average net assets .88(d) 1.61 .51(d)
Ratio of dividends on securities sold short to
average net assets .62(d) 1.39 .33(d)
Ratio of net investment income to average net assets 1.84(d) 3.17 .92(d)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 1.26(d) 1.83 .42(d)
Portfolio Turnover Rate 30.42(d) 138.34 36.54(d)
------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,661 1,814 1,869
(A) FROM JUNE 29, 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.
Six Months Ended
March 31, 2000 Year Ended September 30,
----------------------
CLASS B SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 10.83 11.59 12.50
Investment Operations:
Investment income--net (b) .15 .26 .09
Net realized and unrealized gain (loss)
on investments (1.09) (.75) (1.00)
Total from Investment Operations (.94) (.49) (.91)
Distributions:
Dividends from investment income--net (.33) (.17) --
Dividends from net realized gain on investments -- (.10) --
Total Distributions (.33) (.27) --
Net asset value, end of period 9.56 10.83 11.59
------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) (8.77)(d) (4.28) (7.28)(d)
------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to average net assets 1.25(d) 2.35 .71(d)
Ratio of dividends on securities sold short to
average net assets .62(d) 1.39 .33(d)
Ratio of net investment income to average net assets 1.46(d) 2.43 .73(d)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 1.25(d) 1.83 .41(d)
Portfolio Turnover Rate 30.42(d) 138.34 36.54(d)
------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,622 1,774 1,968
(A) FROM JUNE 29, 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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
March 31, 2000 Year Ended September 30,
----------------------
CLASS C SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 10.85 11.61 12.50
Investment Operations:
Investment income--net (b) .15 .26 .09
Net realized and unrealized gain (loss)
on investments (1.09) (.75) (.98)
Total from Investment Operations (.94) (.49) (.89)
Distributions:
Dividends from investment income--net (.33) (.17) --
Dividends from net realized gain on investments -- (.10) --
Total Distributions (.33) (.27) --
Net asset value, end of period 9.58 10.85 11.61
------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) (8.75)(d) (4.27) (7.12)(d)
------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to average net assets 1.27(d) 2.37 .71(d)
Ratio of dividends on securities sold short to
average net assets .62(d) 1.38 .33(d)
Ratio of net investment income to average net assets 1.45(d) 2.43 .73(d)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 1.27(d) 1.83 .42(d)
Portfolio Turnover Rate 30.42(d) 138.34 36.54(d)
------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 408 450 464
(A) FROM JUNE 29, 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.
Six Months Ended
March 31, 2000 Year Ended September 30,
----------------------
CLASS R SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 10.93 11.62 12.50
Investment Operations:
Investment income--net (b) .20 .37 .11
Net realized and unrealized gain (loss)
on investments (1.10) (.74) (.99)
Total from Investment Operations (.90) .(.37) (.88)
Distributions:
Dividends from investment income--net (.44) (.22) --
Dividends from net realized gain on investments -- (.10) --
Total Distributions (.44) (.32) --
Net asset value, end of period 9.59 10.93 11.62
TOTAL RETURN (%) (8.38)(c) (3.26) (7.04)(c)
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to average net assets .77(c) 1.36 .51(c)
Ratio of dividends on securities sold short to
average net assets .62(c) 1.39 .33(c)
Ratio of net investment income to average net assets 1.95(c) 3.42 .92(c)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation 1.25(c) 1.83 .38(c)
Portfolio Turnover Rate 30.42(c) 138.34 36.54(c)
Net Assets, end of period ($ x 1,000) 458 500 465
A FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1998.
B BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
C NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
March 31, 2000(a)
CLASS T SHARES (Unaudited)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 9.47
Investment Operations:
Investment income--net (b) .06
Net realized and unrealized gain (loss)
on investments .01
Total from Investment Operations .07
Distributions:
Dividends from investment income--net --
Dividends from net realized gain on investments --
Total Distributions --
Net asset value, end of period 9.54
--------------------------------------------------------------------------------
TOTAL RETURN (%) (C) .74(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to average net assets .41(d)
Ratio of dividends on securities sold short to
average net assets .21(d)
Ratio of net investment income
to average net assets .58(d)
Decrease reflected in above expense ratios
due to undertaking by The Dreyfus Corporation .73(d)
Portfolio Turnover Rate 30.42(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ 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.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Market Neutral Fund (the "fund") is a separate diversified
series of Dreyfus Premier Equity Funds, Inc., (the "Company" ) which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering four series. The fund's investment objective is long-term
capital appreciation, while seeking to maintain minimum exposure to general
stock market risk. 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, is 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 shares 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 series are allocated
among them on a pro rata basis.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
As of March 31, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares:
Class A 171,414 Class C 42,344
Class B 169,400 Class R 42,953
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.
(b) 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.
The fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the fund' s Manager, subject to the seller's
agreement to repurchase and the fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the fund's custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price plus accrued interest at all times. If the value
of the underlying securities falls below the value of the repurchase price plus
accrued interest,
the fund will require the seller to deposit additional collateral by the next
business day. If the request for additional collateral is not met, or the seller
defaults on its repurchase obligation, the fund maintains the right to sell the
underlying securities at market value and may claim any resulting loss against
the seller.
(c) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain, if any, 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.
(d) 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.
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 March 31, 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 1.50% of the value of the
fund' s average daily net assets and is payable The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
monthly. The Manager has undertaken from October 1, 1999 through September 30,
2000 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, loan
commitment fees and extraordinary expenses exceed an annual rate of 2.75% of the
value of the fund' s average daily net assets. The expense reimbursement,
pursuant to the undertaking, amounted to $53,920 during the period ended March
31, 2000.
(b) Under the Distribution Plan (the "Plan"), adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
the shares at an annual rate of .75 of 1% of the value of their average daily
net assets of Class B and C shares, and .25 of 1% of the average daily net
assets of Class T shares. During the period ended March 31, 2000, Class B, Class
C and Class T shares were charged $6,287, $1,596 and $1, respectively, pursuant
to the Plan, of which $336 and $78 for Class B and Class C 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 a fee 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 March 31, 2000, Class A, Class B, Class
C and Class T shares were charged $2,144, $2,095, $532 and $1, respectively,
pursuant to the Shareholder Services Plan, of which $105, $103 and $26 for Class
A, Class B and Class C 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 March 31, 2000, the fund was charged $143 pursuant to the transfer agency
agreement.
(d) Each Director, who is not an "affiliated person" as defined in the Act, is a
Board member of one or more funds comprising a certain group of funds ("Fund
Group" ) within the Dreyfus complex. Effective January 1, 2000, for their
participation as a Director in a Fund Group, each such Director receives an
annual fee of $40,000, $6,000 for each meeting attended in person and $500 for
each telephonic meeting in which they participate. 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 director 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 $250 per meeting. The Chairman of
the Board received an additional 25% of such compensation.
NOTE 4--Securities Transactions:
(a) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term
securities, during the period ended March 31, 2000:
Purchases ($) Sales ($)
--------------------------------------------------------------------------------
Long transactions 1,202,635 1,672,085
Short sale transactions 2,016,322 1,122,452
TOTAL 3,218,957 2,794,537
The fund is engaged in short-selling which obligates the fund to replace the
security borrowed by purchasing the security at current market value. The fund
would incur a loss if the price of the security increases between the date of
the short sale and the date on which the fund replaces the borrowed security.
The fund would realize a gain if the price of the security declines between
those dates. The fund' s long security positions serve
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
as collateral for the open short positions. Securities sold short at March 31,
2000, and their related market values and proceeds are set forth in the
Statement of Securities Sold Short.
(b) At March 31, 2000, accumulated net unrealized depreciation on investments
and securities sold short was $112,006 consisting of $890,334 gross unrealized
appreciation and $1,002,340 gross unrealized depreciation.
At March 31, 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).
NOTES
For More Information
Dreyfus Premier Market Neutral Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Custodial Trust Company
101 Carnegie Center
Princeton, NJ 08540
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 335SA003
