PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to once again have the opportunity to correspond with
you regarding the Premier Value Fund (formerly, Premier Strategic Investing).
This report covers the annual period ended October 31, 1996 during which the
Fund's Class A Shares produced a total return of 15.95%, Class B Shares
15.05%, Class C Shares 15.74%, and Class R Shares 16.17%.* The Standard and
Poor's 500 Composite Stock Price Index produced a total return of 24.08% for
the same period.**
The Fund was significantly restructured during the fiscal year, and
results have already shown improvement, despite a difficult market for value
stocks. We believe that value investing will prove to be a superior style of
investment management, and that this Fund should become more competitive with
the market averages going forward.
Economic Review
The U.S. economy is enjoying a good year. First, the tightening labor
market has failed to push price inflation higher. Second, economic growth has
slowed since midyear from the torrid pace of the first half. Third, corporate
profits are holding up quite well, albeit growing more slowly than last year.
These have vindicated Federal Reserve Board inaction, keeping market interest
rates stable. Although the economy has simmered down, it is nevertheless
operating with very little slack.
The Federal Reserve twice thwarted market expectations for tightening
this year, taking the view instead that steady growth won't so easily foster
inflation in this cycle. Indeed, the unemployment rate has plunged towards 5%
this year and wage growth has outpaced price inflation for the first time
since 1989. Yet there is little evidence of accelerating price inflation to
date. Even higher oil prices have failed to lift prices elsewhere. This is
very different from 1994 when the Fed preemptively hiked interest rates to
stem a future price inflation that subsequently did not materialize.
After rising 3.3% in the first half of this year, real GDP growth slowed
to 2.2% in the third quarter. Early evidence for the fourth quarter indicates
sustained growth. In particular, consumer spending has been lackluster since
midyear, despite solid income growth and high confidence levels. New highs in
home sales have not been matched by new records in homebuilding. Spending on
capital goods has rebounded, however, while incoming strong export orders
indicate better growth ahead for this sector. Capital goods and exports
typically dominate the business cycle's late phase. Corporate profit growth,
albeit slower than in 1995, continues to surprise on the upside.
Interest rates this fall are not much different than in the spring.
Short-term rates have especially stabilized in recent months based on the
view that Fed tightening is unlikely this year. Long-term rates have recently
fallen. Should the economy show signs of reaccelerating, then long-term rates
would likely rise.
As the U.S. economy moves into the late-cycle phase it is, as usual, out
of sync with most business cycles overseas, which are at a much earlier
stage. This portends faster world growth in 1997. How well the U.S. economy
can participate in an accelerating growth world economy without igniting
inflation remains to be seen.
Market Overview
The stock market in the last twelve months shrugged off a variety of
potentially negative factors to barrel its way to new heights.
In late 1995 and early 1996 economic activity appeared to slow down,
enough to prompt the Federal Reserve to lower interest rates in January of
this year. By springtime, when the Fed had apparently suspended its
anti-inflationary measures, investors began to worry about signs of strength
exhibited by the economy. Though the Fed took no action to raise interest
rates, investor worries about that possibility restrained an ebullient stock
market.
By July, fears of higher interest rates, plus concerns that some stock
prices - technology issues in particular - might have gone too far, too fast,
caused a temporary retreat in equity prices.
As fall approached, however, the underlying factors of a strong economy,
low inflation, and investor optimism took hold again and propelled stock
prices to new highs.
Chief beneficiaries were the large capitalization stocks. It took a while
for technology stocks and small caps to recover the ground lost in the early
summer. However, the trend across the board was clearly bullish.
As the fiscal year closed, there were some negative factors on the
horizon. Corporate profits may have passed their peak. Consumer demand seemed
to be slowing in some sectors. There were also hints that employment costs,
which have been quite stable for a long time, might face upward pressures.
The market, however, seemed to soar above these factors. The prospect
(since become a fact) of a split government in Washington, with Republicans
controlling Congress and Democrats in the White House, was seen as favorable
for stock prices. Moreover, the specter of renewed inflation remained just
that - nothing more than a specter. Furthermore, individual investors
continued to pour money into equity mutual funds - not at constantly
increasing rates, to be sure, but still at a pace that gave strong impetus
for higher stock prices.
Fundamental Analysis
I am a practitioner of, and passionate believer in, fundamental security
analysis. This method of determining the value of a security involves our
analysts and me communicating directly with the management of companies in
which the Fund is invested or may invest. Not only do we interview management
by telephone on a regular basis, but we also periodically visit corporate
headquarters, divisional headquarters, factories and distribution outlets. We
meet with senior management and talk with all levels of employees, as well as
customers and competitors. It is through the mosaic of information collected
in these meetings that investment decisions begin to be made.
As a "value" investor, I am particularly attuned to companies with
relatively low price to book or price to earnings ratios, or a relatively
high dividend yield. In addition, I am alert to companies with the potential
for corporate restructuring or a positive change in operations, management or
perception. My investment approach tends to be "bottom-up" In other words, I
simply try to find stocks which I believe will appreciate in value more than
the average stock. Industry allocation and domestic versus foreign weightings
generally are not a consideration. Additionally, I do not try to "market
time" and generally remain fully invested.
This process is a massive undertaking for us, especially given the
thousands of securities which are available to us for investment on a
worldwide basis. It can only be accomplished with an experienced and
dedicated team of security analysts. Dreyfus employs 35 individuals who
specialize in this analytical work, one of the largest efforts of any mutual
fund firm. Our analysts are strictly dedicated to finding the best
investments for our client, the Dreyfus mutual fund shareholder. Their work
is proprietary: it is only distributed internally to our portfolio managers,
and forms the basis for security selection in our mutual funds.
Much like the complete and thorough mixture of information that we build,
our analysts form a diverse mix of individuals. Some are specialists in
certain types of securities, while others are industry specialists who
concentrate on securities within a particular sector of the economy. Most
have actual industry experience in their particular field of specialization
prior to joining Dreyfus. For example, our three-person health care team
includes a retired physician, a former medical researcher for the U.S. Army,
and a former health care lobbyist to Congress. Some of our analysts are
relatively young and some are veterans, providing a wonderful blend of energy
and experience. All of this diversity is beneficial to the investment process.
Investments are best made by thinking somewhat differently from everyone else
who is making similar investments. Ideally, one tries to make investment
choices a bit sooner than other investors make these same choices. The reason,
of course, is that through an increase in demand for ownership of a security,
the price of that security increases.
Portfolio Focus
As stated above, I primarily focus on picking value stocks. During the
past fiscal year, the Fund's biggest winners included Guidant, General
Electric, Fila, Jones Apparel, IBM, Phisio Control and Warner-Lambert.
Performance results were penalized by holdings including Sensormatic
Electronics, Grand Casinos, Humana and AT&T. These underperforming securities
have been sold so that small problems would not, in our judgment, potentially
become big problems.
Thank you for your trust and the privilege of managing your assets. The
Dreyfus organization continues to work diligently on your behalf.
Sincerely,
[Timothy M. Ghriskey signature logo]
Timothy M. Ghriskey
Portfolio Manager
November 12, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, without taking into account the maximum initial sales charge in the
case of Class A shares or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B shares and Class C shares.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
PREMIER VALUE FUND OCTOBER 31, 1996
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER VALUE FUND
CLASS A SHARES AND
THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A:
$39,194
Standard & Poor's 500 Composite
Stock Price Index*
$30,974
Premier Value Fund
(Class A Shares)
*Source: Lipper Analytical Services, Inc.]
<TABLE>
<CAPTION>
Average Annual Total Returns
Class A Shares Class B Shares
__________________________________________________________ __________________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 10/31/96 Sales Charge Sales Charge (4.5%) Period Ended 10/31/96 Redemption Redemption*
__________ _______ ________ _________ _____ ________
<S> <C> <C> <C> <C> <C>
1 Year 15.95% 10.72% 1 Year 15.05% 11.05%
5 Years 7.31 6.33 From Inception (1/15/93) 7.37 6.72
10 Years 12.45 11.93
From Inception (10/16/86) 12.43 11.91
Class C Shares Class R Shares
__________________________________________________________ __________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 10/31/96 No Redemption Redemption** Period Ended 10/31/96
_________ ______ ________ __________
1 Year 15.74% 14.74% 1 Year 16.17%
From Inception (9/1/95) 13.12 13.12 From Inception (9/1/95) 13.70
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Premier Value Fund on 10/16/86 (Inception Date) to a $10,000 investment made
in the Standard and Poor's 500 Composite Stock Price Index on that date. For
comparative purposes, the value of the Index on 10/31/86 is used as the
beginning value on 10/16/86. All dividends and capital gain distributions are
reinvested. Performance for Class B, Class C and Class R shares will vary
from the performance of Class A shares shown above due to differences in
charges and expenses. The Fund's performance shown in the line graph takes
into account the maximum initial sales charge on Class A shares and all other
applicable fees and expenses. The Standard and Poor's 500 Composite Stock Price
Index is a widely accepted, unmanaged index of overall stock market performance,
which does not take into account charges, fees and other expenses. Further
information relating to Fund performance, including expense reimbursements, if
applicable, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
* The maximum contingent deferred sales charge for Class B shares is 4% and
is reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
STATEMENT OF INVESTMENTS OCTOBER 31, 1996
Common Stocks-94.7% Shares Value
_____________ _____________
<S> <C> <C>
Consumer Durables-2.1% Newell................................. 185,000 $ 5,249,375
_______
Consumer Non-durables-9.8% First Brands........................... 230,000 6,526,250
Kimberly-Clark......................... 74,100 6,909,825
Philip Morris Cos...................... 60,000 5,557,500
Warnaco Group, Cl. A................... 225,000 5,596,875
_______
24,590,450
_______
Consumer Services-1.9% La Quinta Inns......................... 244,000 4,880,000
_______
Electronic Technology-15.5% Cabletron Systems...................... 85,000 (a) 5,301,875
Intel.................................. 66,500 7,306,688
International Business Machines........ 40,000 5,160,000
McDonnell Douglas...................... 94,000 5,123,000
Micron Technology...................... 160,000 4,060,000
Perkin-Elmer........................... 115,000 6,166,875
United Technologies.................... 46,000 5,922,500
_______
39,040,938
_______
Energy Minerals-9.0% Amerada Hess........................... 105,000 5,814,375
Phillips Petroleum..................... 135,000 5,535,000
Tosco.................................. 105,000 5,893,125
Unocal................................. 145,000 5,310,625
_______
22,553,125
_______
Finance-5.9% Fleet Financial Group.................. 61,000 (a) 3,042,375
PMI Group.............................. 110,000 6,283,750
Signet Banking......................... 190,000 5,486,250
_______
14,812,375
_______
Health Services-4.5% Allegiance............................. 295,000 (a) 5,531,250
Columbia/HCA Healthcare................ 157,500 5,630,625
_______
11,161,875
_______
Health Technology-7.7% Baxter International................... 125,000 5,203,125
Bristol-Myers Squibb................... 65,000 6,873,750
DePuy.................................. 151,000 (a) 2,642,500
Sandoz AG.............................. 4,075 4,693,397
_______
19,412,772
_______
Industrial Services-2.3% Cooper Cameron......................... 90,000 (a) 5,748,750
_______
Non-Energy Minerals-1.7% Cemex, S.A. de C.V., Cl. B ............ 1,182,000 4,306,281
_______
Process Industries-9.0% Hoechst AG............................. 150,000 5,627,470
National Service Industries............ 74,000 2,553,000
Tenneco................................ 95,000 4,702,500
Westinghouse Electric.................. 300,000 5,137,500
Witco.................................. 150,000 4,650,000
_______
22,670,470
_______
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996
Common Stocks (continued) Shares Value
_______ ______
Producer Manufacturing-12.9% General Signal......................... 240,000 $ 9,780,000
Masco.................................. 175,000 5,490,625
Olin................................... 130,000 5,525,000
Raychem................................ 85,000 6,640,625
Xerox.................................. 107,000 4,962,125
_______
32,398,375
_______
Retail Trade-1.8% Pier 1 Imports......................... 330,000 4,620,000
_______
Technology Services-1.4% Ingram Micro, Cl. A.................... 78,500 (a) 1,413,000
Toolex-Alpha N.V....................... 219,900 (a) 2,061,563
_______
3,474,563
_______
Transportation-1.0% Yellow................................. 190,000 (a) 2,481,875
_______
Utilities-8.2% Entergy................................ 190,000 5,320,000
GTE.................................... 120,000 5,055,000
Hong Kong Telecom, A.D.R............... 300,000 5,287,500
Tenaga Nasional Berhad................. 1,270,000 5,076,984
_______
20,739,484
_______
TOTAL COMMON STOCKS
(cost $227,795,007).................. $238,140,708
=======
Principal
Convertible Notes-2.1% Amount
_______
INAMED, 11%, 3/31/1999
(cost $5,250,000).................... $ 5,250,000 (b) $ 5,250,000
=======
Short-Term Investments-5.1%
U.S. Treasury Bill; 5.36%, 1/16/1997
(cost $12,912,362)................... $ 13,049,000 $ 12,911,203
=======
TOTAL INVESTMENTS (cost $245,957,369)....................................... 101.9% $256,301,911
=== =======
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (1.9%) $ (4,752,231)
=== =======
NET ASSETS.................................................................. 100.0% $251,549,680
=== =======
</TABLE>
<TABLE>
<CAPTION>
Notes to Statement of Investments:
(a) Non-income producing.
(b) Security restricted as to public resale. Investment in restricted
security with an aggregate value of $5,250,000, represents approximately
2.1% of net assets;
Acquisition Purchase Percentage of
Security Date Price Net Assets Valuation*
____ ______ _____ ________ ______
<S> <C> <C> <C> <C>
INAMED 11%, 3/31/1999.................... 1/23/96 $100.00 2.1% Cost
*The valuation of this security has been determined in good faith under
the direction of the Board of Trustees.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996
Cost Value
_______ _______
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $245,957,369 $256,301,911
Receivable for investment securities sold.. 9,346,222
Receivable for shares of Beneficial Interest subscribed 181
Dividends and interest receivable.......... 236,614
Prepaid expenses........................... 32,282
_______
265,917,210
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 188,109
Due to Distributor......................... 82,744
Cash overdraft due to Custodian............ 496,449
Payable for investment securities purchased 13,379,964
Payable for shares of Beneficial Interest redeemed 127,355
Accrued expenses........................... 92,909
_______
14,367,530
_______
NET ASSETS.................................................................. $251,549,680
=======
REPRESENTED BY: Paid-in capital............................ $201,310,561
Accumulated undistributed investment income-net 431,484
Accumulated net realized gain (loss) on investments 39,463,334
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 10,344,301
_______
NET ASSETS.................................................................. $251,549,680
=======
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
________________
Class A Class B Class C Class R
______ _______ _______ _______
<S> <C> <C> <C> <C>
Net Assets................................. $207,387,715 $ 44,152,227 $ 6,059 $ 3,679
Shares Outstanding......................... 9,251,244 2,013,839 276.69 164.13
NET ASSET VALUE PER SHARE.................. $22.42 $21.92 $21.90 $22.42
==== ==== ==== ====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1996
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $24,046 foreign taxes withheld
at source)............................. $ 4,516,218
Interest................................... 1,026,660
______
Total Income......................... $ 5,542,878
EXPENSES: Management fee-Note 3(a)................... $ 1,948,566
Shareholder servicing costs-Note 3(c)...... 943,422
Distribution fees-Note 3(b)................ 340,657
Professional fees.......................... 59,183
Trustees' fees and expenses-Note 3(d)...... 43,571
Registration fees.......................... 39,561
Custodian fees-Note 3(c)................... 37,526
Dividends on securities sold short......... 6,000
Prospectus and shareholders' reports....... 2,155
Miscellaneous.............................. 7,209
______
Total Expenses....................... 3,427,850
_______
INVESTMENT INCOME-NET....................................................... 2,115,028
_______
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments and foreign
currency transactions:
Long transactions.................... $40,298,134
Short sale transactions.............. (2,913,991)
Net realized gain on financial futures..... 431,295
Net realized gain on forward currency exchange contracts 282,584
______
Net Realized Gain.................... 38,098,022
Net unrealized appreciation on investments, securities sold
short and foreign currency transactions [including
($46,475) net unrealized (depreciation)
on financial futures] (1,714,535)
_______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 36,383,487
_______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $38,498,515
=======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
October 31, 1996 October 31, 1995
_________ _________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................... $ 2,115,028 $ 3,590,330
Net realized gain (loss) on investments.................................. 38,098,022 24,133,447
Net unrealized appreciation (depreciation) on investments................ (1,714,535) 1,574,520
_______ _______
Net Increase (Decrease) in Net Assets Resulting from Operations...... 38,498,515 29,298,297
_______ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares......................................................... (2,945,686) (595,707)
Class B shares......................................................... (305,675) (52,362)
Class C shares......................................................... (13) -
Class R shares......................................................... (17) -
Net realized gain on investments:
Class A shares......................................................... (19,971,560) (6,469,383)
Class B shares......................................................... (4,213,094) (1,137,286)
Class C shares......................................................... (98) -
Class R shares......................................................... (97) -
_______ _______
Total Dividends...................................................... (27,436,240) (8,254,738)
_______ _______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares......................................................... 38,025,441 21,994,003
Class B shares......................................................... 2,898,434 7,596,999
Class C shares......................................................... 86,841 1,000
Class R shares......................................................... 2,568 1,000
Dividends reinvested:
Class A shares......................................................... 21,775,972 6,576,053
Class B shares......................................................... 4,346,451 1,152,348
Class C shares......................................................... 112 -
Class R shares......................................................... 114 -
Cost of shares redeemed:
Class A shares......................................................... (70,390,630) (76,782,353)
Class B shares......................................................... (9,328,259) (8,700,597)
Class C shares......................................................... (82,714) -
Class R shares......................................................... - -
_______ _______
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (12,665,670) (48,161,547)
_______ _______
Total Increase (Decrease) in Net Assets............................ (1,603,395) (27,117,988)
NET ASSETS:
Beginning of Period...................................................... 253,153,075 280,271,063
_______ _______
End of Period............................................................ $251,549,680 $253,153,075
======= =======
UNDISTRIBUTED INVESTMENT INCOME-NET........................................ $ 431,484 $ 1,567,646
_______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
______________________________________
Year Ended Year Ended
October 31, 1996 October 31, 1995
_______ _______
CAPITAL SHARE TRANSACTIONS:
Class A
____
Shares sold............................................................ 1,745,408 1,104,032
Shares issued for dividends reinvested................................. 1,060,690 357,006
Shares redeemed........................................................ (3,224,068) (3,862,550)
_______ _______
Net Increase (Decrease) in Shares Outstanding (417,970) (2,401,512)
======= =======
Class B
____
Shares sold............................................................ 134,633 375,923
Shares issued for dividends reinvested................................. 214,958 63,385
Shares redeemed........................................................ (431,380) (431,198)
_______ _______
Net Increase (Decrease) in Shares Outstanding (81,789) 8,110
======= =======
Class C*
____
Shares sold............................................................ 4,041 47
Shares issued for dividends reinvested................................. 6 -
Shares redeemed........................................................ (3,817) -
_______ _______
Net Increase (Decrease) in Shares Outstanding 230 47
======= =======
Class R*
____
Shares sold............................................................ 112 46
Shares issued for dividends reinvested................................. 6 -
______- _______
Net Increase (Decrease) in Shares Outstanding 118 46
======= =======
*From September 1, 1995 (commencement of initial offering) to October 31,
1995.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class A Shares
____________________________________________________________
Year Ended October 31,
____________________________________________________________
PER SHARE DATA: 1996 1995 1994 1993 1992
___ ___ ___ ___ ___
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $21.59 $19.83 $23.77 $19.90 $22.12
___ ___ ___ ___ ___
Investment Operations:
Investment income (loss)-net................. .22 .31 .01 .03 .06
Net realized and unrealized gain (loss)
on investments............................. 3.01 2.04 (1.54) 3.89 (.46)
___ ___ ___ ___ ___
Total from Investment Operations............. 3.23 2.35 (1.53) 3.92 (.40)
___ ___ ___ ___ ___
Distributions:
Dividends from investment income-net......... (.31) (.05) - (.05) (.14)
Dividends in excess of investment income-net. - - (.12) - -
Dividends from net realized gain on investments (2.09) (.54) (2.29) - (1.68)
___ ___ ___ ___ ___
Total Distributions.......................... (2.40) (.59) (2.41) (.05) (1.82)
___ ___ ___ ___ ___
Net asset value, end of period............... $22.42 $21.59 $19.83 $23.77 $19.90
=== === === === ===
TOTAL INVESTMENT RETURN(1)....................... 15.95% 12.43% (6.92%) 19.71% (2.04%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 1.19% 1.22% 1.29% 1.27% 1.30%
Ratio of interest expense, loan commitment fees
and dividends on securities sold short to
average net assets......................... - .05% .25% .47% .38%
Ratio of net investment income
to average net assets...................... .94% 1.51% .04% .16% .22%
Portfolio Turnover Rate...................... 147.64% 244.82% 199.13% 237.14% 204.73%
Average commission rate paid (2)............. $.1029 - - - -
Net Assets, end of period (000's Omitted).... $207,388 $208,786 $239,407 $276,022 $243,148
(1) Exclusive of sales load.
(2) For fiscal years beginning November 1, 1995, the Fund is required to disclose its average commission rate paid per share for
purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class B Shares
________________________________________________
Year Ended October 31,
________________________________________________
PER SHARE DATA: 1996 1995 1994 1993(1)
___ ___ ___ ___
<S> <C> <C> <C> <C>
Net asset value, beginning of period................... $21.17 $19.58 $23.62 $21.38
___ ___ ___ ___
Investment Operations:
Investment income (loss)-net........................... .04 .14 (.04) (.07)
Net realized and unrealized gain (loss) on investments. 2.96 2.02 (1.62) 2.31
___ ___ ___ ___
Total from Investment Operations....................... 3.00 2.16 (1.66) 2.24
___ ___ ___ ___
Distributions:
Dividends from investment income-net................... (.16) (.03) - -
Dividends in excess of investment income-net........... - - (.09) -
Dividends from net realized gain on investments........ (2.09) (.54) (2.29) -
___ ___ ___ ___
Total Distributions.................................... (2.25) (.57) (2.38) -
___ ___ ___ ___
Net asset value, end of period......................... $21.92 $21.17 $19.58 $23.62
=== === === ===
TOTAL INVESTMENT RETURN(2)................................. 15.05% 11.50% (7.58%) 10.48% (3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets...... 1.94% 1.97% 1.84% 1.65% (3)
Ratio of interest expense, loan commitment fees and dividends on
securities sold short to average net assets.......... - .05% .24% .44% (3)
Ratio of net investment income (loss)
to average net assets................................ .19% .71% (.61%) (.69%) (3)
Portfolio Turnover Rate................................ 147.64% 244.82% 199.13% 237.14%
Average commission rate paid (4)....................... $.1029 - - -
Net Assets, end of period (000's Omitted).............. $44,152 $44,365 $40,864 $25,833
________________
(1) From January 15, 1993 (commencement of initial offering) to October 31, 1993.
(2) Exclusive of sales load.
(3) Not annualized.
(4) For fiscal years beginning November 1, 1995, the Fund is required to disclose its average commission rate paid per share for
purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class C Shares Class R Shares
____________ ____________
Year Ended October 31, Year Ended October 31,
____________ ____________
PER SHARE DATA: 1996 1995(1) 1996 1995(1)
___ ___ ___ ___
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................... $21.16 $21.21 $21.60 $21.61
___ ___ ___ ___
Investment Operations:
Investment income-net................................... .06 (.04) .40 -
Net realized and unrealized gain (loss)
on investments........................................ 3.05 (.01) 2.87 (.01)
___ ___ ___ ___
Total from Investment Operations........................ 3.11 (.05) 3.27 (.01)
___ ___ ___ ___
Distributions:
Dividends from investment income-net.................... (.28) - (.36) -
Dividends from net realized gain on investments......... (2.09) - (2.09) -
___ ___ ___ ___
Total Distributions..................................... (2.37) - (2.45) -
___ ___ ___ ___
Net asset value, end of period.......................... $21.90 $21.16 $22.42 $21.60
=== === === ===
TOTAL INVESTMENT RETURN(2).................................. 15.74% (.24%) (3) 16.17% (.05%) (3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. 1.94% .36% (3) .97% .17% (3)
Ratio of net investment income (loss)
to average net assets................................. (.51%) (.18%) (3) 1.07% -
Portfolio Turnover Rate................................. 147.64% 244.82% 147.64% 244.82%
Average commission rate paid (4)........................ $.1029 - $.1029 -
Net Assets, end of period (000's Omitted)............... $6 $1 $4 $1
(1) From September 1, 1995 (commencement of initial offering) to October 31, 1995.
(2) Exclusive of sales load.
(3) Not annualized.
(4) For fiscal years beginning November 1, 1995, the Fund is required to disclose its average commission rate paid per share for
purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Premier Value Fund (the "Fund") is registered under the Investment
Company Act of 1940 ("Act") as a non-diversified open-end management
investment company. The Fund's investment objective is capital growth. The
Dreyfus Corporation ("Manager") serves as the Fund's investment adviser. The
Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an
unlimited number of $.001 par value shares in the following classes of
shares: Class A, Class B, Class C and Class R. Class A shares are subject to
a sales charge imposed at the time of purchase, Class B shares are subject to
a contingent deferred sales charge imposed at the time of redemption on
redemptions made within six years of purchase, Class C shares are subject to
a contingent deferred sales charge imposed at the time of redemption on
redemptions made 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 four Classes include the services offered to and the expenses
borne by each Class and certain voting rights.
Effective August 12, 1996, the Fund changed its name from "Premier
Strategic Investing" to "Premier Value Fund".
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 Trustees.
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, 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.
(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
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, 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 Internal Revenue 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 $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. For the period ended October 31, 1996, 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 ("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 of the Fund,
exclusive of taxes, brokerage, interest on borrowings (which, in the view of
Stroock & Stroock & Lavan, counsel to the Fund, also contemplates dividends
on securities sold short) and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund, the Fund may
deduct from payments to be made to the Manager, or the Manager will bear the
amount of such excess 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 fiscal year that such expenses
(excluding 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 value of the Fund's average net assets
in accordance with California "blue sky" regulations. There was no expense
reimbursement for the period ended October 31, 1996.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $79,525 during the period ended October 31, 1996 from commissions
earned on sales of the Fund's shares.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, the Fund pays the Distributor for distributing the
Fund's Class B and Class C shares at an annual rate of .75 of 1% of the value
of the average daily net assets of Class B and Class C shares, respectively.
During the period ended October 31, 1996, $340,572 and $85 were charged to
the Class B and Class C shares, respectively, by the Distributor pursuant to
the Plan.
(c) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the average daily net assets of
Class A, Class B and Class C shares 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 October 31,
1996, $535,964, $113,524 and $28 were charged to the Class A, Class B and
Class C shares, respectively, by the Distributor pursuant to the Shareholder
Services Plan.
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Effective December 1, 1995, 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. Such compensation amounted to $162,358 during the period ended October
31, 1996.
Effective May 10, 1996, the Fund entered into a custody agreement with
Mellon to provide custodial services for the Fund. During the period ended
October 31, 1996, $9,117 was paid to Mellon pursuant to the custody
agreement.
(d) Each trustee 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 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, financial futures and forward currency exchange contracts during
the period ended October 31, 1996:
<TABLE>
<CAPTION>
Purchases Sales
________ ________
<S> <C> <C>
Long transactions................................................ $367,424,218 $391,080,820
Short sale transactions.......................................... 15,925,657 9,754,723
________ ________
Total.......................................................... $383,349,875 $400,835,543
======== ========
</TABLE>
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. Until the Fund replaces the borrowed security, the Fund will
maintain daily, a segregated account with a broker and custodian, of cash and/or
U.S. Government securities sufficient to cover its short position. At October
31, 1996, there were no securities sold short outstanding.
The Fund enters into forward currency exchange contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its
foreign portfolio holdings. When executing forward currency exchange
contracts, the Fund is obligated to buy or sell a foreign currency at a
specified rate on a certain date in the future. With respect to sales of
forward currency exchange contracts, the Fund would incur a loss if the value
of the contract increases between the date the forward contract is opened and
the date the forward contract is closed. The Fund realizes a gain if the
value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the Fund would incur a loss
if the value of the contract decreases between the date the forward contract
is opened and the date the forward contract is closed. The Fund realizes a
gain if the value of the contract increases between those dates. The Fund is
also exposed to credit risk associated with counterparty nonperformance on
these forward currency exchange contracts which is typically limited to the
unrealized gains on such contracts that are recognized in the Statement of
Assets and Liabilities. At October 31, 1996, there were no forward currency
exchange contracts outstanding.
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The Fund is exposed to
market risk as a result of changes in the value of the underlying financial
instruments. Investments in financial futures require the Fund to "mark to
market" on a daily basis, which reflects the change in the market value of
the contract at the close of each day's trading. Accordingly, 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
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
loss. These investments require initial margin deposits with a custodian,
which consist of cash or cash equivalents, up to approximately 10% of the
contract amount. The amount of these deposits is determined by the exchange
or Board of Trade on which the contract is traded and is subject to change.
At October 31, 1996, there were no financial futures contracts outstanding.
(b) At October 31, 1996, accumulated net unrealized appreciation on
investments was $10,344,542, consisting of $19,001,565 gross unrealized
appreciation and $8,657,023 gross unrealized depreciation.
At October 31, 1996, 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).
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER VALUE FUND
We have audited the accompanying statement of assets and liabilities of
Premier Value Fund, including the statement of investments, as of October 31,
1996, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended, and financial highlights for each of the years indicated therein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included verification by
examination of securities held by the custodian as of October 31, 1996 and
confirmation of securities not held by the custodian by correspondence with
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Premier Value Fund, at October 31, 1996, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the indicated years, in conformity with generally accepted accounting
principles.
[Ernst and Young LLP signature logo]
New York, New York
December 9, 1996
PREMIER VALUE FUND
(FORMERLY PREMIER STRATEGIC INVESTING)-SEE NOTE 1
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal tax purposes the Fund hereby designates $.687 per share as a
long-term capital gain distribution paid on December 13, 1995.
The Fund also designates 14.13% of the ordinary dividends paid during the
fiscal year ended October 31, 1996 as qualifying for the corporate dividends
received deduction. Shareholders will receive notification in January 1997 of
the percentage applicable to the preparation of their 1996 income tax
returns.
PREMIER VALUE FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 037/632AR9610
Annual Report
Premier Value Fund
October 31, 1996
[Dreyfus lion/2hres logo]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN PREMIER VALUE FUND CLASS A SHARES AND THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
__________________________________________________
| | STANDARD | PREMIER |
| | & POOR'S 500 | VALUE |
| PERIOD | COMPOSITE STOCK | FUND |
| | PRICE INDEX * |(CLASS A SHARES) |
|-----------|-------------------|-----------------|
| 10/16/86 | 10,000 | 9,550 |
| 10/31/86 | 10,000 | 9,580 |
| 10/31/87 | 10,640 | 12,092 |
| 10/31/88 | 12,210 | 12,440 |
| 10/31/89 | 15,428 | 15,997 |
| 10/31/90 | 14,274 | 15,948 |
| 10/31/91 | 19,044 | 21,769 |
| 10/31/92 | 20,939 | 21,324 |
| 10/31/93 | 24,061 | 25,527 |
| 10/31/94 | 24,988 | 23,759 |
| 10/31/95 | 31,587 | 26,713 |
| 10/31/96 | 39,194 30,974 |
|-------------------------------------------------|
* Source: Lipper Analytical Services, Inc.
