DREYFUS APPRECIATION FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
Equity markets have achieved extremely strong performance to date in
1995, driven by rising bond prices in an environment of moderating economic
growth and contained inflation. However, many broad industry groups have not
benefitted from the upward trend in equity prices. Sector emphasis and
individual issue selection have thus been critical with regard to
participation in the advance. The total return of the Dreyfus Appreciation
Fund for the first six months of 1995 was 18.99%,* which compared to 20.19%
for the Standard & Poor's 500 Composite Stock Price Index.** Although
performance slightly lagged the Index, we believe the Fund is well positioned
for unusual economic and market circumstances.
INVESTMENT CLIMATE AND FUND STRATEGY
The impressive rallies in both bond and stock markets, which began in
November, were predicated on the assumption that the economy's growth would
moderate, that inflation had peaked and that interest rates could be relaxed
in the months ahead. If the economy strengthens in the second half, with
expected Gross Domestic Product (GDP) higher than the Federal Reserve Board's
target range of 2.0 to 2.5%, we believe markets will be negatively affected.
On the other hand, the possibility of recession, if the economy weakens too
quickly, is also a consideration which has impacted markets. We believe that
the economy will achieve a satisfactory transition between the faster rate of
growth in 1994 and the moderate range which fosters price stability.
Currently, we have sought to tailor the Fund's portfolio investment
strategy for an extended slow growth environment, with emphasis on those
industry groups and individual issues which we believe are positioned to
achieve consistent, visible earnings growth even as the economy slows. We
believe that this approach can be beneficial if a recession does materialize,
which we believe is unlikely over the next eighteen months. It is our opinion
that this approach also can be beneficial if the more likely slow growth
scenario unfolds.
FUND PERFORMANCE
The Fund had a minimal cash position during the reporting period, with
industry concentrations in consumer nondurables and health care. After
considerably outperforming the Index in 1994, the consumer nondurables
holdings were subject to some profit-taking in the overall market in the
first half of 1995. The sector slightly underperformed the Index, which
detracted from the Fund's overall results. However, the positive performance
of such holdings as Philip Morris Cos., Coca-Cola, PepsiCo, Procter & Gamble
and Gillette caused the sector to lead portfolio results. Health care issues
continued to outperform the Index, particularly in a climate of less
government regulation and oversight. This sector had the second most positive
impact on the Fund's performance led by shares of Merck & Co., Roche
Holdings, A.D.R., Amgen and Pfizer. Financial services and technology shares
were also quite strong and positively affected the Fund's return. Holdings in
Citicorp, Federal National Mortgage Association, General Electric and
Motorola led the two groups.
We will continue to exert our best efforts in seeking to carry out the
Fund's investment goals.
Sincerely,
[Fayez Sarofim sigature logo]
Fayez Sarofim
Portfolio Manager
July 17, 1995
Houston, Tx
* Total return represents the change during the period in a hypothetical
account with dividends reinvested.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
<TABLE>
<CAPTION>
DREYFUS APPRECIATION FUND, INC.
STATEMENT OF INVESTMENTS JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS-94.0% SHARES VALUE
_______ _______
<S> <C> <C> <C>
AEROSPACE &
ELECTRONICS-6.5% Emerson Electric....................... 45,000 $ 3,217,500
General Electric....................... 200,000 11,275,000
Motorola............................... 80,000 5,370,000
_______
19,862,500
_______
APPAREL & TEXTILES-1.7% NIKE, Cl. B............................ 30,000 2,520,000
Warnaco Group, Cl. A................... 130,000 2,600,000
_______
5,120,000
_______
AUTO RELATED-1.0% Chrysler............................... 60,000 2,872,500
_______
BANKING-3.4% Banc One............................... 30,000 967,500
Citicorp............................... 150,000 8,681,250
PNC Bank............................... 30,000 791,250
_______
10,440,000
_______
BUSINESS SERVICES-.3% H&R Block................... 25,000 1,028,125
_______
CAPITAL GOODS-1.2% Allied Signal................... 85,000 3,782,500
_______
CHEMICALS-6.0% Dow Chemical................... 100,000 7,187,500
duPont (E.I.) de Nemours............... 100,000 6,875,000
Rohm & Haas............................ 75,000 4,115,625
_______
18,178,125
_______
ENERGY-7.7% Chevron................... 75,000 3,496,875
Exxon.................................. 75,000 5,296,875
Mobil.................................. 70,000 6,720,000
Pennzoil............................... 10,000 471,250
Royal Dutch Petroleum (New York Shares) 60,000 7,312,500
_______
23,297,500
_______
FINANCIAL-3.8% American General................... 40,000 1,350,000
Federal National Mortgage Association.. 50,000 4,718,750
HSBC Holdings, A.D.R................... 35,000 4,497,500
MBNA................................... 30,000 1,012,500
__________
11,578,750
__________
FOOD, BEVERAGE &
TOBACCO-21.6% Anheuser-Busch Cos..................... 70,000 3,981,250
Coca-Cola.............................. 300,000 19,125,000
General Mills.......................... 60,000 3,082,500
Kellogg................................ 85,000 6,066,875
Nestle, A.D.R.......................... 115,000 5,994,375
PepsiCo................................ 175,000 7,984,375
Philip Morris Cos...................... 240,000 17,850,000
Sara Lee............................... 50,000 1,425,000
_______
65,509,375
________
DREYFUS APPRECIATION FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______
HEATH CARE &
RELATED PRODUCTS-15.5% Abbott Laboratories.................... 100,000 $ 4,050,000
American Home Products................. 65,000 5,029,375
Amgen.................................. (a) 60,000 4,826,250
Johnson & Johnson...................... 115,000 7,776,875
Merck & Co............................. 200,000 9,800,000
Pfizer................................. 85,000 7,851,875
Roche Holdings, A.D.R.................. 100,000 6,437,500
Schering-Plough........................ 28,000 1,235,500
_______
47,007,375
_______
INDUSTRIAL SERVICES-.5% WMX Technologies......... 55,000 1,560,625
_______
LEISURE TIME-2.6% Darden Restaurants..................... 60,000 652,500
Disney (Walt).......................... 65,000 3,615,625
Eastman Kodak.......................... 60,000 3,637,500
_______
7,905,625
_______
MEDIA-2.9% McGraw-Hill Cos........................ 40,000 3,035,000
News Corp, A.D.R....................... 120,000 2,715,000
Reader's Digest Association, Cl. A (non-voting) 70,000 3,088,750
_______
8,838,750
_______
MULTI-INDUSTRY-1.9% Minnesota Mining & Manufacturing 100,000 5,725,000
_______
OFFICE & BUSINESS
EQUIPMENT-2.3% AT&T................................... 70,000 3,718,750
General Motors, Cl. E.................. 75,000 3,262,500
_______
6,981,250
_______
PAPER & FOREST
PRODUCTS-2.3% International Paper.................... 45,000 3,858,750
Kimberly-Clark......................... 50,000 2,993,750
_______
6,852,500
_______
PERSONAL CARE-7.6% Gillette............................... 160,000 7,140,000
International Flavors & Fragrances..... 75,000 3,731,250
Procter & Gamble....................... 125,000 8,984,375
Unilever, N.V.(New York Shares)........ 25,000 3,253,125
_______
23,108,750
_______
RETAIL-3.8% American Stores........................ 80,000 2,250,000
May Department Stores.................. 50,000 2,081,250
Wal-Mart Stores........................ 140,000 3,745,000
Walgreen............................... 70,000 3,508,750
_______
11,585,000
_______
TRANSPORTATION-1.4% Norfolk Southern....................... 65,000 4,379,375
______
TOTAL COMMON STOCKS
(cost $216,424,083).................. $285,613,625
============
DREYFUS APPRECIATION FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1995 (UNAUDITED)
PREFERRED STOCKS-2.8% SHARES VALUE
_______ _______
AUTO RELATED-2.4% Ford Motor Ser. A, Cum. Conv., $4.20....... 75,000 $ 7,284,375
_________
MEDIA-.4% News Corp, A.D.R........................... 60,000 1,200,000
_________
TOTAL PREFERRED STOCKS
(cost $5,694,084)....................
$ 8,484,375
==========
SHORT-TERM INVESTMENTS-3.1%
PRINCIPAL
AMOUNT
_______
U.S. TREASURY BILLS:...................5.60%, 7/6/95 $ 15,000 $ 14,989
5.58%, 7/27/95......................... 134,000 133,498
5.43%, 8/3/95.......................... 126,000 125,395
5.31%, 8/17/95......................... 5,844,000 5,802,624
5.48%, 8/24/95......................... 2,957,000 2,933,078
5.53%, 8/31/95......................... 104,000 103,046
5.38%, 9/7/95.......................... 475,000 470,136
_______
TOTAL SHORT-TERM INVESTMENTS
(cost $9,583,157).................... $ 9,582,766
==========
TOTAL INVESTMENTS (cost $231,701,324) ..................................... 99.9% $303,680,766
==== ==========
CASH AND RECEIVABLES (NET) ............................................ .1% $ 243,390
==== ==========
NET ASSETS.................................................................. 100.0% $303,924,156
==== ============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS APPRECIATION FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $231,701,324)-see statement..................................... $303,680,766
Cash.................................................................... 448,831
Dividends and interest receivable....................................... 665,648
Receivable for subscriptions to Common Stock............................ 106,761
Prepaid expenses........................................................ 25,150
__________
304,927,156
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 103,871
Due to Fayez Sarofim & Co............................................... 50,317
Due to Distributor...................................................... 26,107
Payable for Common Stock redeemed....................................... 627,598
Accrued expenses........................................................ 195,107 1,003,000
______ _________
NET ASSETS.................................................................. $303,924,156
===========
REPRESENTED BY:
Paid-in capital......................................................... $230,906,599
Accumulated undistributed investment income-net......................... 4,401,653
Accumulated net realized (loss) on investments.......................... (3,363,538)
Accumulated net unrealized appreciation on investments-Note 3........... 71,979,442
__________
NET ASSETS at value applicable to 16,834,956 outstanding shares of Common
Stock, equivalent to $18.05 per share (100 million shares of $.01 par
value authorized)....................................................... $303,924,156
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS APPRECIATION FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $87,832 foreign taxes withheld at source)...... $ 5,372,427
Interest.............................................................. 206,450
______
TOTAL INCOME...................................................... $ 5,578,877
EXPENSES:
Investment advisory fee-Note 2(a)..................................... 439,830
Sub-investment advisory fee-Note 2(a)................................. 274,419
Shareholder servicing costs-Note 2(b)................................. 388,192
Professional fees..................................................... 37,355
Prospectus and shareholders' reports-Note 2(b)........................ 28,905
Registration fees..................................................... 20,534
Directors' fees and expenses-Note 2(c)................................ 17,628
Custodian fees........................................................ 15,406
Miscellaneous......................................................... 3,755
_______
TOTAL EXPENSES.................................................... 1,226,024
_________
INVESTMENT INCOME-NET............................................. 4,352,853
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (3,746,821)
Net unrealized appreciation on investments.............................. 45,141,685
__________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 41,394,864
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $45,747,717
========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS APPRECIATION FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1995
1994 (UNAUDITED)
__________ ___________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 4,172,214 $ 4,352,853
Net realized gain (loss) on investments.............................. 1,003,334 (3,746,821)
Net unrealized appreciation on investments for the period............ 2,231,801 45,141,685
________ ___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 7,407,349 45,747,717
________ __________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................ (4,152,619) __
Net realized gain on investments..................................... (141,615) __
________ __________
TOTAL DIVIDENDS.................................................... (4,294,234) __
________ __________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 94,909,133 108,262,710
Dividends reinvested................................................. 3,933,592 __
Cost of shares redeemed.............................................. (105,515,580) (83,545,012)
________ __________
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.. (6,672,855) 24,717,698
________ __________
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ (3,559,740) 70,465,415
NET ASSETS:
Beginning of period.................................................. 237,018,481 233,458,741
_________ __________
End of period (including undistributed investment income-net:
$48,800 in 1994 and $4,401,653 in 1995)............................ $ 233,458,741 $ 303,924,156
========= ==========
SHARES SHARES
________ __________
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 6,370,453 6,490,725
Shares issued for dividends reinvested............................... 263,004 __
Shares redeemed...................................................... (7,125,102) (5,046,138)
________ __________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING...................... (491,645) 1,444,587
========= ==========
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS APPRECIATION FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30, 1995
____________________________________________ _________________
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
____ ____ ____ ____ ____ ___________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period. $12.20 $10.95 $14.67 $15.15 $14.92 $15.17
____ ____ ____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net(1)............. .23 .21 .17 .24 .28 .26
Net realized and unrealized gain (loss)
on investments(1).................. (.46) 3.96 .52 (.14) .26 2.62
____ _____ ____ ____ ____ ____
TOTAL FROM INVESTMENT OPERATIONS... (.23) 4.17 .69 .10 .54 2.88
____ ____ ____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net(1) (.24) (.20) (.13) (.24) (.28) -
Dividends in excess of investment
income-net......................... - - - (.03) - -
Dividends from net realized gain
on investments(1).................. (.78) (.25) (.08) (.03) (.01) -
Dividends in excess of net realized
gain on investments................ - - - (.03) - -
____ ____ ____ ____ ____ ____
TOTAL DISTRIBUTIONS................ (1.02) (.45) (.21) (.33) (.29) -
____ ____ ____ ____ ____ ____
Net asset value, end of period....... $10.95 $14.67 $15.15 $14.92 $15.17 $18.05
===== ====== ====== ======= ======= ======
TOTAL INVESTMENT RETURN.................. (1.83%) 38.43% 4.62% .71% 3.62% 18.99%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.24% 1.30% 1.14% 1.07% .96% .47%(2)
Ratio of net investment income to
average net assets................. 2.21% 1.69% 1.46% 1.66% 1.86% 1.66%(2)
Portfolio Turnover Rate.............. 179.03% 12.89% 2.84% 9.65% 6.58% 3.52%(2)
Net Assets, end of period (000's Omitted) $40,398 $80,947 $207,627 $237,018 $233,459 $303,924
(1) Per share data for 1990 and 1991 has been restated to reflect a 100%
stock dividend at the close of business on March 9, 1992.
(2) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS APPRECIATION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales load. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Dreyfus") serves as the Fund's investment
adviser. Dreyfus is a direct subsidiary of Mellon Bank, N.A. Fayez Sarofim &
Co. ("Sarofim") serves as the Fund's sub-investment adviser.
(A) PORTFOLIO VALUATION: Investments in securities 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. Bid price is used when no asked price
is available. Investments denominated in foreign currencies are translated to
U.S. dollars at the prevailing rates of exchange.
(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 discounts on investments, is recognized on
the accrual basis.
(C) 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. This may result in distributions
that are in excess of investment income-net and net realized gain on a fiscal
year basis. 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.
(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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES:
(A) Fees payable by the Fund pursuant to the provisions of an Investment
Advisory Agreement with Dreyfus and a Sub-Investment Advisory Agreement with
Sarofim (together "Agreements") are payable monthly, computed on the average
daily value of the Fund's net assets at the following annual rates:
<TABLE>
<CAPTION>
TOTAL NET ASSETS DREYFUS SAROFIM
__________ _______ _______
<S> <C> <C>
0 to $25 million............................................ .44 of 1% .11 of 1%
$25 up to $75 million....................................... .37 of 1% .18 of 1%
$75 up to $200 million...................................... .33 of 1% .22 of 1%
$200 up to $300 million..................................... .29 of 1% .26 of 1%
In excess of $300 million................................... .275 of 1% .275 of 1%
</TABLE>
DREYFUS APPRECIATION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Investment Advisory Agreement further provides that if in any full year
the aggregate expenses of the Fund excluding taxes, interest, brokerage
commissions and extraordinary expenses, exceed the expense limitation of any
state having jurisdiction over the Fund, the Fund may deduct from the fee to
be paid to Dreyfus, or Dreyfus will bear, such excess expense to the extent
required by state law. The most stringent state expense limitation applicable
to the Fund presently requires reimbursement of expenses in any full year that
such expenses (exclusive of distribution expenses and certain expenses as
described above) exceed 2 1/2% of the first $30 million, 2% of the next $70
million and 1 1/2% of the excess over $100 million of the average value of the
Fund's net assets in accordance with California "blue sky" regulations. There
was no expense reimbursement for the six months ended June 30, 1995.
(B) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to third
parties for distributing the Fund's shares and servicing shareholder accounts
and (b) pays Dreyfus, Dreyfus Service Corporation, a wholly-owned subsidiary
of Dreyfus, or any affiliate for servicing shareholders accounts, at an annual
rate of .20 of 1% of the value of the Fund's average daily net assets. Each of
the Distributor and Dreyfus may pay Service Agents (a securities dealer,
financial institution or other industry professional) a fee in respect of the
Fund's shares owned by shareholders with whom the Service Agent has a
servicing relationship or for whom the Service Agent is the dealer or holder
of record. Each of the Distributor and Dreyfus determine the amounts to be
paid to Service Agents to which it will make payments and the basis on which
such payments are made. The Plan also separately provides for the Fund to bear
the costs of preparing, printing and distributing certain of the Fund's
prospectuses and statements of additional information and costs associated
with implementing and operating the Plan. During the six months ended June
30, 1995, $285,306 was charged to the Fund pursuant to the Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
other than short-term securities, during the six months ended June 30, 1995,
amounted to $34,279,528 and $9,028,642, respectively.
At June 30, 1995, accumulated net unrealized appreciation on investments
was $71,979,442, consisting of $73,448,479 gross unrealized appreciation and
$1,469,037 gross unrealized depreciation.
At June 30, 1995, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS APPRECIATION FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS APPRECIATION FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Appreciation Fund, Inc., including the statement of investments, as
of June 30, 1995, and the related statements of operations and changes in net
assets and financial highlights for the six month period ended June 30, 1995.
These financial statements and financial highlights are the responsibility of
the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1994 and financial highlights for each of the five years in the
period ended December 31, 1994 and in our report dated January 31, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Erst and Young LLP signature logo]
New York, New York
August 2, 1995
[Dreyfus lion "d" logo]
DREYFUS APPRECIATION FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
Fayez Sarofim & Co.
Two Houston Center,
Suite 2907
Houston, TX 77010
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 141SA956
[Dreyfus logo]
Appreciation
Fund, Inc.
Semi-Annual
Report
June 30, 1995
