DREYFUS PREMIER VALUE FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report of the Dreyfus
Premier Value Fund for the year ended October 31, 1997. Over this period,
your Fund produced the following total returns:
<TABLE>
<CAPTION>
Total Return*
____________
<S> <C>
Class A 27.43%
Class B 26.55%
Class C 26.38%
Class R 27.74%
Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index")** 32.10%
Standard & Poor's Barra Value Index*** 29.70%
</TABLE>
While the performance results of the Fund during the measurement period
trailed those of the S&P 500 Index and the S&P Barra
Value Index, it did, however, outperform the majority of mutual funds in the
Lipper Capital Appreciation Funds category. The Fund's ranking for the
one-year period ended October 31, 1997 (Class A Shares) was 78 out of 203
funds listed in the category. We believed that the valuation of these major
market benchmarks was excessive during this period, and so we constructed an
investment portfolio with a relatively low correlation to these indices. In
doing so, we believed that the risk level of the Fund was significantly lower
that that of these benchmarks.
ECONOMIC REVIEW
The U.S. economy has registered a step-up in growth in 1997 and the
evidence coming in suggests that momentum is still building. Stronger growth
this year has helped keep corporate profits buoyant despite a substantially
tighter labor market. This is because nationwide shortages of labor so far
have not generated much wage inflation. Moreover, price inflation has
decelerated markedly during the year, suppressed by the strong dollar, import
competition and continued disinflation in health care.
Although the Federal Reserve Board (the "Fed") has held a tightening bias
since mid-1996, the central bank has raised interest rates only once this
year. Expectations for further hikes have been continually postponed. They
were first dampened by the surprising drop in this year's price inflation,
and more recently by unfolding crises in foreign economies. Both events have
helped to cap short-term rates and to pull long-term interest rates lower
since the spring.
Real Gross Domestic Product (GDP) growth accelerated to about 4% this
year from 3% in 1996. Virtually all economic sectors have been strong so far.
Consumer spending has been supported by rising real incomes. Capital spending
has been very robust and new orders imply continued strength. Even housing
demand, typically slowing at this phase of the business cycle, has reached
new highs. Most incoming signals support sustained fast growth. The exception
is that exporters' new orders have marginally slowed in recent months,
indicating that economic turmoil overseas may be impacting this sector. By
contrast, imports have been very robust and, if their growth is sustained,
could help mitigate the economic weakness abroad.
Overall corporate profits have continued to trend higher, although some
companies have been hurt by events overseas and the stronger dollar.
Domestically generated profits have typically remained solid, helped by
strong growth and contained wages.
MARKET OVERVIEW
Even though the equity markets stumbled badly in late October, the one
year period ended October 31, 1997, saw solid gains. Measured by price
changes alone, excluding income, the Dow Jones Industrial Average gained
23.58% over these 12 months, the S&P 500 gained 29.96%; the Nasdaq Composite
gained 30.43%; and the Russell 2000 gained
27.52%. These gains accounted for the drop of the last week in October, and
before counting the rebounds that occurred in the first week of November.
In retrospect, it is apparent that stock valuations had been riding for a
fall. There was weakness in March when the Fed raised interest rates for the
first time in two years. By early summer, equity prices recovered and soared
to new highs. Then, however, some nervousness set in, related mainly to
concern about high stock valuations and fears of another Fed move to cool off
the bubbling economy. Weakness was apparent mainly in companies with large
capitalizations, while smaller companies, such as those listed in the Russell
2000 Index, gained ground.
As autumn leaves began to turn, the stock market as a whole regained its
wind - but not for long. The relatively high valuations that had prevailed
were vulnerable to any major unpleasant surprise. That came in late October
from an unexpected source - the Far East. Severe market setbacks in Hong Kong
and Southeast Asia, together with drops in their foreign exchange rates,
triggered the fall in the U.S. market.
Richard Hoey, Chief Economist for The Dreyfus Corporation, reviewing the
recent events, said that the U.S. stock market had a selling panic, followed
by a buying panic. The underlying logic of it all was valuation, he observed.
When the Dow Jones Index peaked at above 8200 in early August, the stock
market was simply discounting favorable U.S. fundamentals into high stock
prices, said Hoey. The financial crisis in Asia was the trigger for a
correction of the major problem for the U.S. stock market: high valuation.
The market drop in Asia was caused by serious fundamental problems of
excess productive capacity, overvalued real estate and a banking system
crisis. European markets, of course, reacted to the Asian weakness, but less
severely because their economies are more stable. In the U.S., the sharp
price drop, followed by a vigorous rebound, reflected an economy with much
greater underlying strength.
The influx of investors into stocks when prices dipped augured well for
the future. The American investing public appears to be convinced that
equities are a good place to put money for the long range, when their prices
are attractive, despite the recent volatility of market averages.
VALUE INVESTING
We believe value stocks can be an important part of a well-diversified
investment portfolio for a number of reasons.
First, stocks with low valuations theoretically have by definition more
upside potential than downside risk. While growth of sales and earnings are
important, and we do believe in buying growing companies, the price paid for
this growth is critical as well. We want to buy this growth potential at
bargain prices.
Second, many analysts have low expectations for the earnings growth rate
of value stocks, resulting in the low valuations assigned to these
securities. Low growth expectations tend to be easier for management to meet
or even exceed than high expectations.
Third, value investors tend to work more with actual data and with
near-term projections when analyzing companies. Obviously, this type of data
can be more accurate than long-term forecasts. There are too many variables
which can impact the long term.
Fourth, value stocks generally possess a number of favorable
characteristics: higher dividends, more stock repurchases, more takeovers,
and more restructurings. Dividends are cash, usually paid out quarterly to
common stock shareholders. Dividends may be the only actual tangible return
to the common stock shareholder from the company. To realize more value than
the dividend, the stock must be sold to another investor. Theoretically, if
shareholders could not sell a stock (which of course they can), investors
would only buy stocks that paid a cash dividend. Next, companies selling at
low
valuations usually have the option to repurchase their own stock with any
available cash and add to earnings in the process. When management
repurchases a company's stock, it provides demand for that stock, forcing the
price higher, everything else being equal. Regarding takeovers, these tend to
happen to inexpensively priced companies, in whatever way a potential buyer
might define this value. Finally, restructurings tend to occur with value
stocks because these companies often tend to have a problem which needs to be
fixed. An opportunity to fix a problem arises and it is in the process of
fixing this problem, usually through some sort of restructuring of the
company, that value is realized.
Value stocks are often ignored by Wall Street analysts. It is much easier
for analysts to promote a glamour stock with a simple story, even if that
story is already universally known and recognized in the stock price. This
lack of attention and focus by Wall Street provides a decided advantage for
relatively undiscovered or underfollowed value stocks.
Of course, value stock investing does involve risk. Despite the potential
downside protection offered by value stocks generally, price volatility is
inherent in all common stocks. In addition, value stocks particularly are
subject to the risk that the market will not recognize the security's
perceived intrinsic value for a long time, and to the risk that a stock
determined to be undervalued turns out to be appropriately priced due to any
number of factors.
Real money in the stock market is not made by following the herd of other
investors, copying what they have already done and going where money has
already been made. Real money is made leading this herd. As the herd follows,
demand for the security is increased, resulting in higher prices.
PORTFOLIO STRATEGY
In order to identify value, we generally select securities for the Fund
based on a three-pronged approach. First, a computer screening model is used
to identify companies with a forward earnings yield (next 12 months' earnings
divided by the current market price) that is greater than the current yield
of the five-year U.S. Treasury bond. Second, another computer model seeks to
identify those companies that offer the best exposure to the current market
and economic environment. Third, we review potential investments with our
team of Dreyfus security analysts to identify a catalyst that could realize
the value inherent in the security and increase the price of the stock.
In terms of constructing a portfolio of stocks, the Fund generally avoids
significantly overweighting or underweighting any given economic sector
relative to the exposure of the S&P 500 Index to that sector. This strategy
focuses the Fund on selecting the potentially best securities within each
given sector of the economy. The Fund attempts to avoid trying to decide
which sector will be favored over the near term by the stock market, since we
believe this preference is too often random.
The Fund typically sells a stock when its earnings yield falls below the
90-day U.S. Treasury yield, when a stock appears to be poorly exposed to the
current market or economic environment, when the portfolio manager, working
with our analysts, believes it represents a potentially deteriorating
investment based on our fundamental research, or when the stock market
emphatically indicates that our investment thesis is incorrect.
PORTFOLIO REVIEW
The Fund's stock selection process played a key factor in the Fund's
performance over the past 12 months. Investment results during this annual
period benefited from holdings such as International Business Machines,
Intel, Tosco, Equitable Cos., BankAmerica, Allegiance, Watson
Pharmaceuticals, Cooper Cameron, Xerox, Pier 1 Imports, and CNF
Transportation. Relative performance results were penalized by holdings
including First Brands, Fruit of the Loom, Cl.A, La Quinta Inns, Amdahl,
3Com, PMI Group, Biogen, Reynolds Metals, and Tenneco.
Thank you for entrusting Dreyfus with the management of your investments.
Sincerely,
[Timothy M. Ghriskey signature logo]
Timothy M. Ghriskey
Portfolio Manager
November 18, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, and does not take into consideration the maximum initial sales charge
in the case of Class A shares, or the applicable contingent deferred sales
charge imposed on redemptions in the case of Class B and Class C shares.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
*** The Standard & Poor's Barra Value Index is a capitalization-weighted
index of all the stocks in the Standard & Poor's 500 Composite Stock Price
Index that have low price-to-book ratios. It is designed so that
approximately 50% of the S&P 500's market capitalization is in the Value
Index.
SOURCE: LIPPER ANALYTICAL SERVICES, INC.: - The Fund's ranking based on
its five-and ten-year average annual returns as of October 31, 1997 were 66
out of 77 funds and 43 out of 55 funds, respectively. One-year rankings for
Class B and Class C shares were lower and ranking for Class R shares was
higher than Class A ranking. Class B, C and R shares do not have 5-year
performance records.
Past performance is no guarantee of future results. Share price and
investment return fluctuate and an investor may receive more or less than
original cost upon redemption.
DREYFUS PREMIER VALUE FUND OCTOBER 31, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER VALUE
FUND CLASS A SHARES
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A:
Dollars
$51,774
Standard & Poor's 500
Composite Stock
Price Index*
$38,967
Dreyfus 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 10/31/97 Sales Charge Sales Charge (5.75%) Period Ended 10/31/97 Redemption Redemption*
_____________________ _______________ ___________________ _______________________ _____________ _____________________
<S> <C> <C> <C> <C> <C>
1 Year 27.43% 20.10% 1 Year 26.55% 22.55%
5 Years 13.11 11.78 From Inception (1/15/93) 11.13 10.84
10 Years 12.56 11.90
From Inception (10/16/86) 13.72 13.11
</TABLE>
<TABLE>
<CAPTION>
Class C Shares Class R Shares
____________________________________________________________ _____________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 10/31/97 Redemption Redemption** Period Ended 10/31/97
_____________________ _______________ ___________________ _______________________
<S> <C> <C> <C> <C>
1 Year 26.38% 25.38% 1 Year 27.74%
From Inception (9/1/95) 19.03 19.03 From Inception (9/1/95) 19.95
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Dreyfus 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>
DREYFUS PREMIER VALUE FUND
STATEMENT OF INVESTMENTS OCTOBER 31, 1997
Common Stocks-95.7% Shares Value
_____________ _____________
<S> <C> <C> <C>
Consumer Non-durables-4.0% Kimberly-Clark......................... 111,000 $ 5,765,063
Warnaco Group, Cl. A................... 162,500 4,590,625
_____________
10,355,688
_____________
Consumer Services-4.7% Avis Rent A Car...................... 62,100 (a) 1,703,869
Circus Circus Enterprises.............. 240,000 (a) 5,340,000
La Quinta Inns......................... 294,000 5,255,250
_____________
12,299,119
_____________
Electronic Technology-12.5% Cabletron Systems...................... 170,000 (a) 4,930,000
Digital Equipment...................... 115,000 (a) 5,757,187
Intel.................................. 73,000 5,621,000
International Business Machines........ 53,000 5,197,313
Storage Technology..................... 111,400 (a) 6,537,787
3Com................................... 104,000 (a) 4,309,500
_____________
32,352,787
_____________
Energy Minerals-6.8% Phillips Petroleum..................... 119,000 5,756,625
Tosco.................................. 168,000 5,544,000
USX-Marathon Group..................... 179,000 6,399,250
_____________
17,699,875
_____________
Finance-17.4% Allstate............................... 72,000 5,971,500
BankAmerica............................ 80,000 5,720,000
Bankers Trust NY....................... 53,000 6,254,000
Chase Manhattan........................ 53,000 6,114,875
Equitable Cos.......................... 138,000 5,683,875
Grupo Financiero Bancomer, Cl. B....... 7,800,000 3,665,675
NationsBank............................ 96,000 5,748,000
Travelers Group........................ 85,000 5,950,000
_____________
45,107,925
_____________
Health Services-5.9% Allegiance............................. 174,500 4,842,375
Manor Care............................. 154,000 5,284,125
PacifiCare Health Systems, Cl. B....... 82,000 (a) 5,309,500
_____________
15,436,000
_____________
Health Technology-5.1% Biogen................................. 162,000 (a) 5,427,000
Watson Pharmaceuticals................. 244,600 (a) 7,766,050
_____________
13,193,050
_____________
Industrial Services-2.5% Cooper Cameron......................... 90,000 (a) 6,502,500
_____________
Non-Energy Minerals-5.1% Georgia-Pacific........................ 61,000 5,173,563
ISPAT International, Cl. A............. 129,500 (a) 3,277,969
Reynolds Metals........................ 79,000 4,814,062
_____________
13,265,594
_____________
Process Industries-6.0% Goodrich (B.F.)........................ 116,000 5,169,250
Owens-Illinois......................... 158,000 5,451,000
Temple-Inland.......................... 88,000 5,049,000
_____________
15,669,250
_____________
DREYFUS PREMIER VALUE FUND
STATEMENT OF INVESTMENTS OCTOBER 31, 1997
Common Stocks (continued) Shares Value
_____________ _____________
Producer Manufacturing-12.3% Caterpillar............................ 100,000 $ 5,125,000
Grupo Carso, Cl. A1.................... 750,000 4,729,327
Ingersoll-Rand......................... 135,000 5,256,563
Masco.................................. 120,000 5,265,000
Raychem................................ 61,800 5,596,763
Xerox.................................. 75,500 5,988,094
_____________
31,960,747
_____________
Retail Trade-4.7% Federated Department Stores............ 142,000 (a) 6,248,000
Pier 1 Imports......................... 324,000 5,913,000
_____________
12,161,000
_____________
Transportation-4.5% CNF Transportation..................... 153,000 6,827,625
CSX.................................... 90,000 4,921,875
_____________
11,749,500
_____________
Utilities-4.2% Coastal................................ 102,000 6,132,750
Empresa Nacional de Electricidad, A.D.R. 240,000 4,830,000
_____________
10,962,750
_____________
TOTAL COMMON STOCKS
(cost $212,108,757).................. $248,715,785
=============
Convertible Preferred Stocks-1.4%
Energy Minerals; Petroleo Brasileiro-Petrobras
(cost $3,434,116).................... 19,000 $ 3,532,559
=============
Principal
Short-Term Investments-.3% Amount
_____________
U.S. Treasury Bills; 4.96%, 1/22/1998
(cost $700,716)...................... $ 709,000 $ 700,641
=============
TOTAL INVESTMENTS (cost $216,243,589)....................................... 97.4% $252,948,985
======= =============
CASH AND RECEIVABLES (NET).................................................. 2.6% $ 6,829,970
======= =============
NET ASSETS.................................................................. 100.0% $259,778,955
======= =============
Notes to Statement of Invesments:
(a) Non-income producing.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1997
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $216,243,589 $252,948,985
Cash....................................... 9,401,551
Receivable for investment securities sold.. 1,654,079
Dividends receivable....................... 209,691
Receivable for shares of Beneficial Interest subscribed 56,361
Prepaid expenses........................... 23,586
_____________
264,294,253
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 192,963
Due to Distributor......................... 93,680
Payable for investment securities purchased 4,123,084
Payable for shares of Beneficial Interest redeemed 42,805
Accrued expenses........................... 62,766
_____________
4,515,298
_____________
NET ASSETS.................................................................. $259,778,955
=============
REPRESENTED BY: Paid-in capital............................ $186,282,869
Accumulated undistributed
investment income-net....................... 888,441
Accumulated net realized gain (loss) on investments and
foreign currency transactions............... 35,904,044
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions
36,703,601
_____________
NET ASSETS.................................................................. $259,778,955
=============
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
_____________________________
Class A Class B Class C Class R
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
Net Assets................................. $206,332,994 $52,846,857 $594,347 $4,757
Shares Outstanding......................... 8,489,704 2,229,443 25,112 195.73
NET ASSET VALUE PER SHARE.................. $24.30 $23.70 $23.67 $24.30
======= ======= ======= =======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER VALUE FUND
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1997
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $61,451 foreign taxes
withheld at source).................... $ 3,878,677
Interest................................... 608,637
____________
Total Income......................... $ 4,487,314
EXPENSES: Management fee-Note 3(a)................... 1,996,529
Shareholder servicing costs -Note 3(c)..... 889,490
Distribution fees-Note 3(b)................ 379,198
Registration fees.......................... 69,750
Custodian fees-Note 3(c)................... 58,163
Professional fees.......................... 56,005
Trustees' fees and expenses-Note 3(d)...... 41,408
Prospectus and shareholders' reports....... 22,230
Interest expense-Note 2.................... 3,802
Loan commitment fees-Note 2................ 3,378
Miscellaneous.............................. 9,177
____________
Total Expenses....................... 3,529,130
____________
INVESTMENT INCOME-NET....................................................... 958,184
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments and
foreign currency transactions.......... $35,540,227
Net realized gain (loss) on forward currency
exchange contracts..................... 371,773
____________
Net Realized Gain (Loss)............. 35,912,000
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions...... 26,359,300
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 62,271,300
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $63,229,484
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
October 31, 1997 October 31, 1996
__________________ __________________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 958,184 $ 2,115,028
Net realized gain (loss) on investments................................ 35,912,000 38,098,022
Net unrealized appreciation(depreciation) on investments............... 26,359,300 (1,714,535)
______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations.... 63,229,484 38,498,515
______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares....................................................... (1,829,335) (2,945,686)
Class B shares....................................................... (49,504) (305,675)
Class C shares....................................................... ---- (13)
Class R shares....................................................... (41) (17)
Net realized gain on investments:
Class A shares....................................................... (31,464,545) (19,971,560)
Class B shares....................................................... (6,811,698) (4,213,094)
Class C shares....................................................... (1,027) (98)
Class R shares....................................................... (570) (97)
______________ ______________
Total Dividends.................................................... (40,156,720) (27,436,240)
______________ ______________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares....................................................... 95,775,905 38,025,441
Class B shares....................................................... 5,445,106 2,898,434
Class C shares....................................................... 696,370 86,841
Class R shares....................................................... 350 2,568
Dividends reinvested:
Class A shares....................................................... 31,602,859 21,775,972
Class B shares....................................................... 6,593,102 4,346,451
Class C shares....................................................... 855 112
Class R shares....................................................... 612 114
Cost of shares redeemed:
Class A shares....................................................... (147,128,604) (70,390,630)
Class B shares....................................................... (7,718,216) (9,328,259)
Class C shares....................................................... (111,556) (82,714)
Class R shares....................................................... (272) ----
______________ ______________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (14,843,489) (12,665,670)
______________ ______________
Total Increase (Decrease) in Net Assets.......................... 8,229,275 (1,603,395)
NET ASSETS:
Beginning of Period.................................................... 251,549,680 253,153,075
______________ ______________
End of Period.......................................................... $ 259,778,955 $ 251,549,680
============== ==============
______________ ______________
Undistributed investment income-net...................................... $ 888,441 $ 431,484
______________ ______________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
___________________________________
Year Ended Year Ended
October 31, 1997 October 31, 1996
__________________ __________________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold............................................................ 4,031,189 1,745,408
Shares issued for dividends reinvested................................. 1,525,971 1,060,690
Shares redeemed........................................................ (6,318,700) (3,224,068)
__________ __________
Net Increase (Decrease) in Shares Outstanding (761,540) (417,970)
========== ==========
Class B
_______
Shares sold............................................................ 233,097 134,633
Shares issued for dividends reinvested................................. 324,304 214,958
Shares redeemed........................................................ (341,797) (431,380)
__________ __________
Net Increase (Decrease) in Shares Outstanding 215,604 (81,789)
========== ==========
Class C
_______
Shares sold............................................................ 29,363 4,041
Shares issued for dividends reinvested................................. 42 6
Shares redeemed........................................................ (4,570) (3,817)
__________ __________
Net Increase (Decrease) in Shares Outstanding 24,835 230
========== ==========
Class R
_______
Shares sold............................................................ 15 112
Shares issued for dividends reinvested................................. 30 6
Shares redeemed........................................................ (13) ---
__________ __________
Net Increase (Decrease) in Shares Outstanding 32 118
========== ==========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER VALUE FUND
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: 1997 1996 1995 1994 1993
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $22.42 $21.59 $19.83 $23.77 $19.90
______ ______ ______ ______ ______
Investment Operations:
Investment income-net....................... .12 .22 .31 .01 .03
Net realized and unrealized gain (loss)
on investments............................ 5.40 3.01 2.04 (1.54) 3.89
______ ______ ______ ______ ______
Total from Investment Operations............ 5.52 3.23 2.35 (1.53) 3.92
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net........ (.20) (.31) (.05) - (.05)
Dividends in excess of investment income-net - - - (.12) -
Dividends from net realized gain on investments (3.44) (2.09) (.54) (2.29) -
______ ______ ______ ______ ______
Total Distributions......................... (3.64) (2.40) (.59) (2.41) (.05)
______ ______ ______ ______ ______
Net asset value, end of period.............. $24.30 $22.42 $21.59 $19.83 $23.77
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(1)...................... 27.43% 15.95% 12.43% (6.92%) 19.71%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 1.18% 1.19% 1.22% 1.29% 1.27%
Ratio of interest expense, loan commitment fees
and dividends on securities sold short to
average net assets........................ - - .05% .25% .47%
Ratio of net investment income
to average net assets..................... .51% .94% 1.51% .04% .16%
Portfolio Turnover Rate..................... 123.53% 147.64% 244.82% 199.13% 237.14%
Average commission rate paid (2)............ $.0401 $.1029 - - -
Net Assets, end of period (000's Omitted)... $206,333 $207,388 $208,786 $239,407 $276,022
(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>
DREYFUS PREMIER VALUE FUND
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: 1997 1996 1995 1994 1993(1)
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $21.92 $21.17 $19.58 $23.62 $21.38
______ ______ ______ ______ ______
Investment Operations:
Investment income (loss)-net................ (.04) .04 .14 (.04) (.07)
Net realized and unrealized gain (loss)
on investments............................ 5.29 2.96 2.02 (1.62) 2.31
______ ______ ______ ______ ______
Total from Investment Operations............ 5.25 3.00 2.16 (1.66) 2.24
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net........ (.03) (.16) (.03) - -
Dividends in excess of investment income-net - - - (.09) -
Dividends from net realized gain on investments (3.44) (2.09) (.54) (2.29) -
______ ______ ______ ______ ______
Total Distributions......................... (3.47) (2.25) (.57) (2.38) -
______ ______ ______ ______ ______
Net asset value, end of period.............. $23.70 $21.92 $21.17 $19.58 $23.62
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(2)...................... 26.55% 15.05% 11.50% (7.58%) 10.48%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 1.93% 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..................... (.27%) .19% .71% (.61%) (.69%)(3)
Portfolio Turnover Rate..................... 123.53% 147.64% 244.82% 199.13% 237.14%
Average commission rate paid (4)............ $.0401 $.1029 - - -
Net Assets, end of period (000's Omitted)... $52,847 $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>
DREYFUS PREMIER VALUE FUND
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
______________________________
Year Ended October 31,
______________________________
PER SHARE DATA: 1997 1996 1995(1)
______ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period.................................. $21.90 $21.16 $21.21
______ ______ ______
Investment Operations:
Investment income-net................................................. (.14)(2) .06 (.04)
Net realized and unrealized gain (loss)
on investments...................................................... 5.35 3.05 (.01)
______ ______ ______
Total from Investment Operations...................................... 5.21 3.11 (.05)
______ ______ ______
Distributions:
Dividends from investment income-net.................................. - (.28) -
Dividends from net realized gain on investments....................... (3.44) (2.09) -
______ ______ ______
Total Distributions................................................... (3.44) (2.37) -
______ ______ ______
Net asset value, end of period........................................ $23.67 $21.90 $21.16
====== ====== ======
TOTAL INVESTMENT RETURN(3)................................................ 26.38% 15.74% (.24%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... 2.00% 1.94% .36%(4)
Ratio of net investment income (loss)
to average net assets............................................... (.56%) (.51%) (.18%)(4)
Portfolio Turnover Rate............................................... 123.53% 147.64% 244.82%
Average commission rate paid (5)...................................... $.0401 $.1029 -
Net Assets, end of period (000's Omitted)............................. $594 $6 $1
(1) From September 1, 1995 (commencement of initial offering) to October 31, 1995.
(2) Based on average shares outstanding.
(3) Exclusive of sales load.
(4) Not annualized.
(5) 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>
DREYFUS PREMIER VALUE FUND
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 R Shares
______________________________
Year Ended October 31,
______________________________
PER SHARE DATA: 1997 1996 1995(1)
______ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period.................................. $22.42 $21.60 $21.61
______ ______ ______
Investment Operations:
Investment income-net................................................. .19 .40 -
Net realized and unrealized gain (loss)
on investments...................................................... 5.38 2.87 (.01)
______ ______ ______
Total from Investment Operations...................................... 5.57 3.27 (.01)
______ ______ ______
Distributions:
Dividends from investment income-net.................................. (.25) (.36) -
Dividends from net realized gain on investments....................... (3.44) (2.09) -
______ ______ ______
Total Distributions................................................... (3.69) (2.45) -
______ ______ ______
Net asset value, end of period........................................ $24.30 $22.42 $21.60
====== ====== ======
TOTAL INVESTMENT RETURN................................................... 27.74% 16.17% (.05%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... .94% .97% .17%(2)
Ratio of net investment income
to average net assets............................................... .71% 1.07% -
Portfolio Turnover Rate............................................... 123.53% 147.64% 244.82%
Average commission rate paid (3)...................................... $.0401 $.1029 -
Net Assets, end of period (000's Omitted)............................. $5 $4 $1
(1) From September 1, 1995 (commencement of initial offering) to October 31, 1995.
(2) Not annualized.
(3) 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>
DREYFUS PREMIER VALUE FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus 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").
Effective March 3, 1997, the Fund's name was changed from "Premier Value
Fund" to "Dreyfus Premier Value Fund".
Premier Mutual Fund Services, Inc. (the "Distributor") is 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 ("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 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 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.
DREYFUS PREMIER VALUE FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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.
As of October 31, 1997, the Fund reclassified certain components of net
assets. The reclassifications resulted in a net increase to accumulated
undistributed investment income-net of $1,377,653, a decrease in accumulated
net realized gains on investments and foreign currency transactions of
$1,193,450 and a decrease in paid-in capital of $184,203. These
reclassifications were the result of permanent book to tax differences,
primarily from foreign currency transactions, net operating losses and
passive foreign investment companies. Net assets were not affected by these
reclassifications.
NOTE 2-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("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. At October
31, 1997, there were no outstanding borrowings under the Facility.
The average daily amount of borrowings outstanding during the period
ended October 31, 1997 was approximately $64,000, with a related weighted
average annualized interest rate of 5.87%. The maximum amount borrowed at any
time during the period ended October 31, 1997 was $3,900,000.
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.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $76,786 during the period ended October 31, 1997 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, 1997, the Fund was charged $377,596 and
$1,602 for Class B and Class C shares, respectively, pursuant to the
Distribution 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,
1997, the Fund was charged $539,099, $125,866 and $534 for the Class A, Class
B and Class C shares, respectively, pursuant to the Shareholder Services
Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended October 31, 1997, the Fund was charged $144,868 pursuant to the
transfer agency agreement.
DREYFUS PREMIER VALUE FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund compensates Mellon under a custody agreement to provide custodial
services for the Fund. During the period ended
October 31, 1997, the Fund was charged $58,163 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 aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the period ended October 31, 1997 amounted to $318,378,117 and
$371,634,034, respectively.
The Fund enters into forward currency exchange contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its
foreign portfolio holdings. When executing forward currency exchange
contracts, the Fund is obligated to buy or sell a foreign currency at a
specified rate on a certain date in the future. With respect to sales of
forward currency exchange contracts, the Fund would incur a loss if the value
of the contract increases between the date the forward contract is opened and
the date the forward contract is closed. The Fund realizes a gain if the
value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the Fund would incur a loss
if the value of the contract decreases between the date the forward contract
is opened and the date the forward contract is closed. The Fund realizes a
gain if the value of the contract increases between those dates. The Fund is
also exposed to credit risk associated with counter party nonperformance on
these forward currency exchange contracts which is typically limited to the
unrealized gains on each open contract. At October 31, 1997, there were no
open forward currency exchange contracts.
(b) At October 31, 1997, accumulated net unrealized appreciation on
investments was $36,705,396, consisting of $46,746,503 gross unrealized
appreciation and $10,041,107 gross unrealized depreciation.
At October 31, 1997, 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 PREMIER VALUE FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Premier Value Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus Premier Value Fund, including the statement of investments, as of
October 31, 1997, 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 and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of October
31, 1997 and confirmation of securities not held by the custodian by
correspondence with others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Premier Value Fund, at October 31, 1997, 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 & YOUNG LLP signature logo]
New York, New York
December 18, 1997
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal tax purposes the Fund hereby designates $.392 per share as a
long-term capital gain distribution paid on December 11, 1996.
The Fund also designates 11.97% of the ordinary dividends paid during the
fiscal year ended October 31, 1997 as qualifying for the corporate dividends
received deduction. Shareholders will receive notification in January 1998 of
the percentage applicable to the preparation of their 1997 income tax
returns.
DREYFUS 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. 037/632AR9710
Annual Report
Dreyfus
Premier Value Fund
October 31, 1997
Registration Mark
Registration Mark
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER VALUE FUND CLASS A SHARES AND THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
STANDARD DREYFUS
& POOR'S 500 PREMIER
PERIOD COMPOSITE STOCK VALUE FUND
PRICE INDEX * (CLASS A SHARES)
10/16/86 10,000 9,428
10/31/86 10,000 9,457
10/31/87 10,640 11,937
10/31/88 12,210 12,281
10/31/89 15,428 15,793
10/31/90 14,274 15,744
10/31/91 19,044 21,491
10/31/92 20,939 21,051
10/31/93 24,061 25,200
10/31/94 24,988 23,455
10/31/95 31,587 26,371
10/31/96 39,194 30,578
10/31/97 51,774 38,967
*Source: Lipper Analytical Services, Inc.
