<PAGE>
SEMI-ANNUAL REPORT
--------------------
DREYFUS
PREMIER VALUE FUND
---------------------
APRIL 30, 1998
[Lion Logo]
<PAGE>
DREYFUS PREMIER VALUE FUND
- ------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
We are pleased to provide you with this semi-annual report for Dreyfus
Premier Value Fund for the six-month period ended April 30, 1998 as shown in
the following table.
TOTAL RETURN*
-------------
Class A 10.01%
Class B 9.59%
Class C 9.53%
Class R 9.90%
Standard & Poor's 500 Composite
Stock Price Index (the "S&P 500")** 22.50%
Standard & Poor's Barra Value Index.*** 19.78%
The performance of the Fund during this period was certainly below our
expectations, when compared to these indices. Given that we position the Fund
for where we believe the market is going and not where it has been, it can take
some time for the market to potentially realize the value of our investments.
Value investing can require some patience. Regardless, we have made changes in
the holdings, and hope to look back on this period as one of abnormality.
ECONOMIC REVIEW
Although real Gross Domestic Product (GDP) sustained a growth trend
approaching 4% into the first quarter, incoming evidence suggests a shift to
somewhat slower economic growth in coming months. Aggregate profit margins
already have begun to narrow in some sectors. The conflicting pressures of a
softening economy and a still tightening labor market have kept the Federal
Reserve Board (the "Fed") in neutral, although a bias favoring higher policy
rates was resumed recently. Market interest rates have likewise stayed within
a narrow range in recent months.
While manufacturing has turned appreciably sluggish since year-end, this
was overshadowed in the first quarter by a strong rebound in domestic demand.
The industrial sector has been slowed by the strong dollar and by weak
exports. However, with Asian economies still in turmoil, competition from
Asian-made imports has emerged only gradually. The first quarter rebound in
domestic demand was fueled primarily by strong housing market conditions and
rising real household incomes, but additionally by several short-lived
influences.
Rising real wages that have been such a boon to consumers in recent
months may also be taking a toll on corporate profit margins. The first sign
of profit pressure was seen last year as the dollar strengthened. This year,
profit margins have eroded further due to weak exports and falling prices in
some sectors. However, accelerating wage growth that is apparent alongside
limited pricing power may also prove a harbinger of margin erosion. Hence, a
shift to slower economic growth that coexists with rising wage pressures
creates a further risk to overall profit growth.
The above pressures have kept Fed policy unchanged until now. However,
policymakers are more concerned about wage growth than economic strains, as
evidenced by a recent shift towards a tightening bias. Although long-term
bond yields were below year-ago levels at the end of April, substantially
lower yields have proven difficult to attain in the absence of lower
short-term rates. This, too, could restrain the economic growth rate.
MARKET OVERVIEW
Equity prices during the six months ended April 30, 1998 continued to
display considerable volatility, most of the time ultimately ending up on the
upside. Last November, the markets were still trying to recover from the
financial crisis in Asia. As the months went by, however, the U.S. equity
markets rebounded from that severe blow.
Early in the New Year, there were temporary setbacks due to worries about
inflation and concern about the corporate profit outlook. By midwinter,
however, the markets resumed their upward surge, which continued almost
unbroken until
<PAGE>
interest rate jitters struck again in late April. This time the cause was a
press report that the Fed was going to tilt its policy toward tightening credit.
As it turned out, even that scare was short-lived and, as the month of
May began, stock prices set new records once again, especially the stocks of
the large corporations.
Despite the impressive gains in the broad market averages, it was not a
market that would allow investors simply to sit back and relax. Some
commentators had begun to refer to it as the "bubble market," a market that
could inflate to undreamed-of heights one week, yet the next week could be
deflated just as quickly by unexpected national, international and corporate
news.
Now that most first-quarter corporate profits have been reported, it is
apparent that the quarter saw a slowdown in total profits. The Wall Street
Journal cited estimates that the first-quarter profit growth for the Dow
Jones Industry Groups was just 4.1%. This was described as the smallest
growth in earnings since the fourth quarter of 1991. Yet an impressive
segment of analysts were predicting that profits could increase by 8% in the
second quarter and even by 11% for this year as a whole. Still, many skeptics
saw those numbers as overly optimistic. They cited several factors:
* possible delayed reaction to the collapse of Asian markets;
* the everpresent possibility that the Fed could still raise
interest rates;
* the approaching shadow of the midterm elections next fall, with
all the political acrimony they could bring.
There was also the risk that Fed Chairman Greenspan might once again warn
against excessive enthusiasm in the equity markets, as he did in late 1996
when he spoke of "irrational exuberance."
In this atmosphere, wary investors were as quick to sell as to buy,
depending on the ebb and flow of economic and political news. Volatility, it
appeared, was a condition the markets would need to live with for some time
to come, in rising as well as in falling markets.
PORTFOLIO FOCUS
Performance during these past six months was somewhat restrained by our
disciplined value investing approach. We believed that the valuation of most
major market benchmarks and many of the largest securities had become
excessive during this period and constructed an investment portfolio with a
relatively low correlation to the S&P 500. In doing so, we believed that the
risk level of the Fund was significantly lower than that of this and other
major benchmarks, and that the values we uncovered potentially would be
realized. Unfortunately, during the fall months, the Fund's investments
suffered from the Asian economic crisis. Many of the same companies and
sectors that had done so well earlier in 1997 were penalized during the
fourth calendar quarter due to either export exposure to Asian countries or
commodity exposure that might hurt selling prices in a weaker global
marketplace. Late in the calendar year, we restructured the Fund's security
holdings for this new economic environment, favoring domestically oriented
companies and businesses with less economic cyclicality.
VALUE INVESTING AND OUR INVESTMENT PROCESS
While there are other investment disciplines practiced at Dreyfus, we are
passionate believers in value investing. As value investors, we want to buy
growing companies, but we want to pay as little for them as we can. In this
sense, it is a lower-risk, more conservative style of equity investing.
Our approach to the selection of securities starts and ends with our
analysts, who are an integral part of our investment team. Our Dreyfus
analysts contribute their proprietary forecasts to our computer models, their
analysis and opinions to our decision-making process, and their constant flow
of information to our ongoing assessment of securities owned. We
<PAGE>
screen the universe of stocks by computer according to two principal methods.
The first computer screen determines value by calculating each security's
earnings yield (our forecast for earnings divided by the security price) which,
to justify purchase, must be greater than the risk-free yield available on
reasonably long-term U.S. Treasury securities. Being paid more than this
risk-free rate for the risk inherent in equity investing is central to our value
discipline. The second computer screen looks at 19 other factors that have
historically influenced stock returns. We input into this model the current
economic and stock market trends, and the computer calculates each security's
exposure to this environment. Combining all of this data with our analysts'
in-depth knowledge of the individual companies, we then construct a portfolio of
approximately 50 securities. We use the same disciplined criteria and several
other factors to determine when selling a security is in our shareholders' best
interest.
EXAMPLES OF OUR INVESTMENT PROCESS
While it is not possible to review all the detail that goes into the
decision-making and implementation process of buying, owning and eventually
selling a security in this short report, provided below are several brief
examples of securities actually owned.
One of the securities held in the Fund was Owens-Illinois, primarily a
manufacturer of glass containers for consumable items like food and
beverages. We bought the stock during 1997 and continued to own it as of
April 30, 1998.
When we evaluated Owens-Illinois, our computer model showed it to be a
competitively priced value stock. We were going to be paid in total earnings
power more than the risk-free interest rate that we could have received from
a fairly long-term U.S. Treasury investment. Additionally, our multifactor
computer model calculated an overall score for Owens-Illinois of +3, with
zero being the average security score. Various factors in the model
demonstrated that the security's growth was being offered for sale at a
discount, that its reported earnings would likely be above consensus
expectations, and that the company was well-positioned for the current
economic and market environment. The glass container industry had
consolidated from 16 North American manufacturers in 1981 to only three major
players today, and this oligopoly was expected to lead to higher selling
prices. Further, the trend away from glass containers appeared to be
stabilizing if not reversing, because glass gives a perception of quality.
International markets were the primary future growth engines for the company
since, by offering to share its proprietary manufacturing technology,
Owens-Illinois had the inside track on making acquisitions of foreign
companies. Finally, management itself owned 20% of the company, and we
believe it to be an advantage when management's financial interests are the
same as our shareholders.
Owens-Illinois remained an attractive investment for the Fund at the end
of April 1998. Operations remained strong. During 1997, the company delivered
earnings per share more than ten cents greater than Wall Street analysts had
been forecasting a year earlier.
Digital Equipment, a computer hardware and services company, was
purchased by the Fund in late October 1997, near the start of the semi-annual
period. During these six months, the relative performance of the stock has
been on a bit of a roller-coaster ride. Initially, Digital Equipment did not
perform well due to worries about Asian sales in the face of weakening
economies in that part of the world. In late January 1998, Digital
Equipment's inherent value realized was via a takeover by Compaq Computer,
sending the stock price up substantially. Following the acquisition
announcement, the stock subsequently underperformed the broad stock market
averages due largely to worries about its acquirer's inventory levels in
personal computers. Digital's stock has recently started to rebound as Compaq
Computers inventories have come under control and the earnings power of
Digital Equipment has begun to be realized.
AT&T, the long distance telephone company, was also purchased in November
1997. According to our computer valuation model, AT&T was a value stock given
an earnings yield greater than the 5-year U.S. Treasury Bond. Our
<PAGE>
multifactor computer model score was a solid +6 for the security. Until
recently, the stock had been a laggard in price appreciation relative to the
overall stock market. Concern over growing competition and changing technology
had weighed heavily on the stock for some time. Further, senior management was
unsettled, with lack of clear succession plans and a seeming lack of strategic
direction for dealing with the changing industry environment. In all of this
pessimism and concern over what we believed were issues that would soon be
addressed if not resolved, we saw opportunity. Finally, with the advent of the
Asian economic crisis, a defensive investment like AT&T, with a largely domestic
orientation and little economic sensitivity, was well suited to the current
environment, as reflected in our multifactor computer model.
AT&T remained in the Fund at the end of April 1998. Despite substantial
appreciation in the stock price, AT&T's earnings yield was still greater than
the minimum risk-free interest rate, that of the 90-day U.S. Treasury Bill,
our valuation sell point. Additionally, new senior management had been
appointed and dramatic steps to improve the company for the future had
already been taken.
This type of detailed fundamental analysis is performed every day for
your Fund. Both current holdings and potential new holdings are regularly
evaluated.
SUMMARY
Investment results during this semi-annual period benefited from holdings
such as Equitable Cos., Warnaco Group Cl. A, Storage Technology, Xerox,
Biogen, McDonald's, Travelers and Masco. Relative performance during the
period was penalized by holdings including Raychem, Adaptec, Cabletron
Systems, Cooper Cameron, Ikon Office Solutions, and PacifiCare Health
Systems, Cl. B.
We will continue to manage your investments with dedication and
discipline.
Sincerely,
Timothy M. Ghriskey
Portfolio Manager
May 18, 1998
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 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.
<PAGE>
DREYFUS PREMIER VALUE FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS-50.8% SHARES VALUE
- ------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C> <C>
COMMERCIAL SERVICES-1.6% Ikon Office Solutions.................... 175,000 $ 4,232,812
------------
CONSUMER DURABLES-2.1% General Motors........................... 80,000 5,390,000
------------
CONSUMER NON-DURABLES-9.7% Kimberly - Clark......................... 111,000 5,633,250
Nike, Cl. B.............................. 120,000 5,730,000
Philip Morris Cos........................ 116,000 4,328,250
RJR Nabisco Holdings..................... 150,000 4,171,875
Warnaco Group, Cl. A..................... 130,000 5,492,500
------------
25,355,875
------------
CONSUMER SERVICES-4.6% La Quinta Inns........................... 294,000 6,468,000
McDonald's............................... 89,000 5,506,875
------------
11,974,875
------------
ELECTRONIC TECHNOLOGY-9.4% Adaptec.................................. 106,000 (a) 2,510,875
Ceridian................................. 92,000 5,203,750
Digital Equipment........................ 100,000 (a) 5,562,500
International Business Machines.......... 47,000 5,446,125
Storage Technology....................... 70,000 (a) 5,910,625
------------
24,633,875
------------
ENERGY MINERALS-8.4% British Petroleum, A.D.S................. 60,000 5,670,000
Phillips Petroleum....................... 104,000 5,154,500
Tosco.................................... 168,000 5,985,000
USX - Marathon Group..................... 149,000 5,336,063
------------
22,145,563
------------
FINANCE-21.9% BankAmerica.............................. 71,000 6,035,000
Bankers Trust New York................... 44,000 5,681,500
CIGNA.................................... 25,800 5,338,988
Chase Manhattan.......................... 45,000 6,235,312
Citicorp................................. 33,000 4,966,500
Equitable Cos............................ 110,000 6,751,250
Fleet Financial Group.................... 64,000 5,528,000
Heller Financial......................... 21,000 567,000
NationsBank.............................. 86,000 6,514,500
St. Paul Cos............................. 46,500 3,940,875
Travelers Group.......................... 98,000 5,996,375
------------
57,555,300
------------
HEALTH SERVICES-1.9% Aetna.................................... 62,000 5,010,375
------------
</TABLE>
<PAGE>
DREYFUS PREMIER VALUE FUND
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED) SHARES VALUE
- ------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C> <C>
HEALTH TECHNOLOGY-6.1% American Home Products................... 55,000 (a) $ 5,121,875
Biogen................................... 118,000 5,236,250
Genzyme-General Division................. 180,000 5,568,750
------------
15,926,875
------------
PROCESS INDUSTRIES-5.8% Crown Cork & Seal........................ 97,000 5,050,062
Owens - Illinois......................... 130,000 (a) 5,143,125
Praxair.................................. 100,000 5,031,250
------------
15,224,437
------------
PRODUCER MANUFACTURING-3.6% General Electric......................... 45,000 3,830,625
Masco.................................... 98,000 5,684,000
------------
9,514,625
------------
RETAIL TRADE-6.6% American Stores.......................... 245,000 (a) 5,880,000
Federated Department Stores.............. 117,000 5,754,938
Sears, Roebuck........................... 97,000 5,753,312
------------
17,388,250
------------
TRANSPORTATION-1.9% Union Pacific............................ 92,000 5,037,000
------------
UTILITIES-11.9% AT&T..................................... 83,000 4,985,188
Ameritech................................ 124,000 5,277,750
. Coastal.................................. 80,000 5,715,000
Empresa Nacional De Electricidad, A.D.S.. 240,000 4,185,000
Telefonos De Mexico, Cl. L., A.D.S....... 94,000 5,322,750
Texas Utilities.......................... 140,000 5,600,000
------------
31,085,688
------------
TOTAL COMMON STOCKS
(cost $208,269,695).................... $250,475,550
============
CONVERTIBLE PREFERRED STOCKS-1.8%
- ------------------------------------------------------------------------------
BANKING; Sanwa International Finance, Cum., 1.25%
(Units)
(cost $5,254,359)...................... 220 (b) $ 4,815,344
============
</TABLE>
<PAGE>
DREYFUS PREMIER VALUE FUND
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SHORT-TERM INVESTMENTS-5.5% AMOUNT VALUE
- ------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C> <C>
U.S. TREASURY BILLS: 4.88%, 7/23/1998......................... $ 1,679,000 $ 1,660,262
4.89%, 7/30/1998......................... 12,808,000 12,652,639
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $14,311,371)...................... $ 14,312,901
============
TOTAL INVESTMENTS (cost $227,835,425)......................................... 102.8% $269,603,795
====== ============
LIABILITIES, LESS CASH AND RECEIVABLES........................................ (2.8%) $ (7,374,409)
====== ============
NET ASSETS.................................................................... 100.0% $262,229,386
====== ============
<FN>
NOTES TO STATEMENT OF INVESTMENTS:
- ------------------------------------------------------------------------------------------------------------------------
(a) Non-income producing.
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 1998,
this security amounted to $4,815,344 or approximately
1.8% of net assets.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER VALUE FUND
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments...... $227,835,425 $269,603,795
Cash........................................................ 79,654
Receivable for investment securities sold................... 3,710,815
Dividends receivable........................................ 283,338
Net unrealized appreciation on forward
currency exchange contracts-Note 4(a)..................... 204,271
Receivable for shares of Beneficial Interest subscribed..... 63,551
Prepaid expenses............................................ 35,976
------------
273,981,400
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates............... 193,113
Due to Distributor.......................................... 91,099
Payable for shares of Beneficial Interest redeemed.......... 8,574,142
Payable for investment securities purchased................. 2,830,738
Accrued expenses and other liabilities................ 62,922
------------
11,752,014
------------
NET ASSETS............................................................................. $262,229,386
============
REPRESENTED BY: Paid-in capital............................................. $200,776,224
Accumulated undistributed investment income-net............. 411,623
Accumulated net realized gain (loss) on investments......... 19,068,898
Accumulated net unrealized appreciation (depreciation) on
investments-Note 4(b)..................................... 41,972,641
------------
NET ASSETS............................................................................. $262,229,386
============
</TABLE>
NET ASSET VALUE PER SHARE
-------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS R
------------ ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net Assets................................. $205,141,311 $56,438,728 $ 643,363 $ 5,984
Shares Outstanding......................... 8,987,020 2,542,674 29,118,252 262,945
NET ASSET VALUE PER SHARE.................. $22.83 $22.20 $22.09 $22.76
====== ====== ====== ======
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER VALUE FUND
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1998
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME: Cash dividends (net of $6,938 foreign taxes
withheld at source).................... $ 1,904,170
Interest................................... 215,961
-----------
TOTAL INCOME........................... $ 2,120,131
EXPENSES: Management fee-Note 3(a)................... 963,082
Shareholder servicing costs-Note 3(c)...... 430,815
Distribution fees-Note 3(b)................ 203,552
Registration fees.......................... 26,833
Trustees' fees and expenses-Note 3(d)...... 23,357
Professional fees.......................... 20,986
Custodian fees-Note 3(c)................... 12,351
Prospectus and shareholders' reports....... 10,800
Interest expense-Note 2.................... 2,502
Loan commitment fees-Note 2................ 953
Miscellaneous.............................. 2,822
-----------
TOTAL EXPENSES......................... 1,698,053
-----------
INVESTMENT INCOME-NET....................................................... 422,078
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $19,323,031
Net realized gain (loss) on financial
futures.................................... 71,578
NET REALIZED GAIN (LOSS)............. 19,394,609
Net unrealized appreciation (depreciation)
on investments and forward currency
exchange contracts..................... 5,269,040
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 24,663,649
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $25,085,727
===========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER VALUE FUND
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 422,078 $ 958,184
Net realized gain (loss) on investments........................... 19,394,609 35,912,000
Net unrealized appreciation (depreciation) on investments......... 5,269,040 26,359,300
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS. 25,085,727 63,229,484
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares.................................................. (897,158) (1,829,335)
Class B shares.................................................. -- (49,504)
Class C shares.................................................. (1,708) --
Class R shares.................................................. (30) (41)
Net realized gain on investments:
Class A shares.................................................. (28,342,023) (31,464,545)
Class B shares.................................................. (7,784,711) (6,811,698)
Class C shares.................................................. (102,316) (1,027)
Class R shares.................................................. (705) (570)
------------ ------------
TOTAL DIVIDENDS............................................. (37,128,651) (40,156,720)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................. 182,140,776 95,775,905
Class B shares.................................................. 3,449,935 5,445,106
Class C shares.................................................. 266,874 696,370
Class R shares.................................................. 18,750 350
Dividends reinvested:
Class A shares.................................................. 27,528,054 31,602,859
Class B shares.................................................. 7,388,194 6,593,102
Class C shares.................................................. 56,706 855
Class R shares.................................................. 726 612
Cost of shares redeemed:
Class A shares.................................................. (201,674,546) (147,128,604)
Class B shares.................................................. (4,427,411) (7,718,216)
Class C shares.................................................. (234,647) (111,556)
Class R shares.................................................. (20,056) (272)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS.................................................... 14,493,355 (14,843,489)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... 2,450,431 8,229,275
NET ASSETS:
Beginning of Period............................................... 259,778,955 251,549,680
------------ ------------
End of Period..................................................... $262,229,386 $259,778,955
============ ============
UNDISTRIBUTED INVESTMENT INCOME-NET............................... $ 411,623 $ 888,441
------------ ------------
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER VALUE FUND
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES
-----------------------------------
SIX MONTHS ENDED
APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
CLASS A
-------
Shares sold............................................................ 8,267,724 4,031,189
Shares issued for dividends reinvested................................. 1,312,735 1,525,971
Shares redeemed........................................................ (9,083,143) (6,318,700)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING........ 497,316 (761,540)
=========== ===========
CLASS B
-------
Shares sold............................................................ 161,297 233,097
Shares issued for dividends reinvested................................. 361,281 324,304
Shares redeemed........................................................ (209,347) (341,797)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING........ 313,231 215,604
=========== ===========
CLASS C
-------
Shares sold............................................................ 12,041 29,363
Shares issued for dividends reinvested................................. 2,786 42
Shares redeemed........................................................ (10,821) (4,570)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING....... 4,006 24,835
=========== ===========
CLASS R
-------
Shares sold............................................................ 940 15
Shares issued for dividends reinvested................................. 34 30
Shares redeemed........................................................ (907) (13)
----------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING....... 67 32
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
CLASS A SHARES
----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 ---------------------------------------------
PER SHARE DATA: (UNAUDITED) 1997 1996 1995 1994 1993
---------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $24.30 $22.42 $21.59 $19.83 $23.77 $19.90
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income (loss)-net.............. .07 .12 .22 .31 .01 .03
Net realized and unrealized gain (loss)
on investments......................... 2.05 5.40 3.01 2.04 (1.54) 3.89
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS......... 2.12 5.52 3.23 2.35 (1.53) 3.92
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net..... (.11) (.20) (.31) (.05) -- (.05)
Dividends in excess of investment
income-net............................... -- -- -- -- (.12) --
Dividends from net realized gain
on investments......................... (3.48) (3.44) (2.09) (.54) (2.29) --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS...................... (3.59) (3.64) (2.40) (.59) (2.41) (.05)
------ ------ ------ ------ ------ ------
Net asset value, end of period........... $22.83 $24.30 $22.42 $21.59 $19.83 $23.77
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(1)................... 10.01%(2) 27.43% 15.95% 12.43% (6.92%) 19.71%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets............................. .58%(2) 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............ .00%(2,3) -- -- .05% .25% .47%
Ratio of net investment income to average
net assets............................. .24%(2) .51% .94% 1.51% .04% .16%
Portfolio Turnover Rate.................. 75.94%(2) 123.53% 147.64% 244.82% 199.13% 237.14%
Average commission rate paid (4)......... $.0293 $.0401 $.1029 -- -- --
Net Assets, end of period (000's Omitted) $205,141 $206,333 $207,388 $208,786 $239,407 $276,022
<FN>
- --------------------
(1) Exclusive of sales load.
(2) Not annualized.
(3) Amount represents less than .01%
(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.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
CLASS B SHARES
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 -----------------------------------------------
PER SHARE DATA: (UNAUDITED) 1997 1996 1995 1994 1993(1)
---------------- ------ ------ ------ ------ --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $23.70 $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.......................... 1.98 5.29 2.96 2.02 (1.62) 2.31
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.......... 1.98 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.......................... (3.48) (3.44) (2.09) (.54) (2.29) --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS....................... (3.48) (3.47) (2.25) (.57) (2.38) --
------ ------ ------ ------ ------ ------
Net asset value, end of period............ $22.20 $23.70 $21.92 $21.17 $19.58 $23.62
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(2).................... 9.59%(3) 26.55% 15.05% 11.50% (7.58%) 10.48%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets.............................. .95%(3) 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............. .00%(3,4) -- -- .05% .24% .44%(3)
Ratio of net investment income (loss)
to average net assets................... (.14%)(3) (.27%) .19% .71% (.61%) (.69%)(3)
Portfolio Turnover Rate................... 75.94%(3) 123.53% 147.64% 244.82% 199.13% 237.14%
Average commission rate paid (5).... $.0293 $.0401 $.1029 -- -- --
Net Assets, end of period (000's Omitted) $56,439 $52,847 $44,152 $44,365 $40,864 $25,833
<FN>
- --------------------
(1) From January15, 1993 (commencement of initial offering) to October 31,
1993.
(2) Exclusive of sales load.
(3) Not annualized.
(4) Amount represents less than .01%.
(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.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
CLASS C SHARES
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 --------------------------------
PER SHARE DATA: (UNAUDITED) 1997 1996 1995(1)
----------- ------ ------ --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...................... $23.67 $21.90 $21.16 $21.21
------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net..................................... (.02) (.14)(2) .06 (.04)
Net realized and unrealized gain (loss) on investments.... 1.98 5.35 3.05 (.01)
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.......................... 1.96 5.21 3.11 (.05)
------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net...................... (.06) -- (.28) --
Dividends from net realized gain on investments........... (3.48) (3.44) (2.09) --
------ ------ ------ ------
TOTAL DISTRIBUTIONS....................................... (3.54) (3.44) (2.37) --
------ ------ ------ ------
Net asset value, end of period............................ $22.09 $23.67 $21.90 $21.16
====== ====== ====== ======
TOTAL INVESTMENT RETURN(3).................................... 9.53%(4) 26.38% 15.74% (.24%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................... .93%(4) 2.00% 1.94% .36%(4)
Ratio of net investment income (loss) to average net assets (.10%)(4) (.56%) (.51%) (.18%)(4)
Portfolio Turnover Rate................................... 75.94%(4) 123.53% 147.64% 244.82%
Average commission rate paid(5)........................... $.0293 $.0401 $.1029 --
Net Assets, end of period (000's Omitted)................. $643 $594 $6 $1
<FN>
- --------------------
(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.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
CLASS R SHARES
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 --------------------------------
PER SHARE DATA: (UNAUDITED) 1997 1996 1995(1)
----------- ------ ------ --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...................... $24.30 $22.42 $21.60 $21.61
------ ------ ------ ------
Investment income-net..................................... .01 .19 .40 --
Net realized and unrealized gain (loss) on investments.... 2.08 5.38 2.87 (.01)
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.......................... 2.09 5.57 3.27 (.01)
------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net...................... (.15) (.25) (.36) --
Dividends from net realized gain on investments........... (3.48) (3.44) (2.09) --
------ ------ ------ ------
TOTAL DISTRIBUTIONS....................................... (3.63) (3.69) (2.45) --
------ ------ ------ ------
Net asset value, end of period............................ $22.76 $24.30 $22.42 $21.60
------ ------ ------ ------
TOTAL INVESTMENT RETURN....................................... 9.90%(2) 27.74% 16.17% (.05%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................... .79%(2) .94% .97% .17%(2)
Ratio of net investment income to average net assets...... (.08%)(2) .71% 1.07% --
Portfolio Turnover Rate................................... 75.94%(2) 123.53% 147.64% 244.82%
Average commission rate paid(3)........................... $.0293 $.0401 $.1029 --
Net Assets, end of period (000's Omitted)................. $6 $5 $4 $1
<FN>
- --------------------
(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.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER VALUE FUND
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Premier Value Fund (the "Fund") is a separate non-diversified series of
Dreyfus Premier Value Equity Funds (the "Company") which is registered under
the Investment Company Act of 1940 ("Act") as an open-end management
investment company and operates as a series company, currently offering two
series, including the Fund. 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") 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 Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Securities for which there are no such valuations are valued at fair value as
determined in good faith under the direction of the Board of 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, and the difference
between the amounts of dividends, interest and foreign withholding taxes
recorded on the Fund's books and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains and losses
arise from changes in the value of assets and liabilities other than investments
in securities, resulting from changes in exchange rates. Such gains and
losses are included with net realized and unrealized gain or loss on
investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
<PAGE>
DREYFUS PREMIER VALUE FUND
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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.
(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 $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.
The average daily amount of borrowings outstanding during the period
ended April 30, 1998 was approximately $85,400, with a related weighted
average annualized interest rate of 5.82%.
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 $52,551 during the period ended April 30, 1998 from commissions
earned on sales of the Fund's shares.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, Class B and Class C shares pay the Distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares, respectively. During
the period ended April 30, 1998, Class B and Class C shares were charged
$201,049 and $2,503, respectively, pursuant to the Distribution Plan.
(C) Under the Shareholder Services Plan, Class A, Class B and Class C
shares pay 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 April 30, 1998, Class A, Class B and Class C shares were charged
$253,164, $67,016 and $834, 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 April 30, 1998, the Fund was charged $75,242 pursuant to the
transfer agency agreement.
<PAGE>
DREYFUS PREMIER VALUE FUND
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended April 30, 1998, the
Fund was charged $12,351 pursuant to the custody agreement.
(D) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Company 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, financial futures and forward currency
exchange contracts, during the period ended April 30, 1998 amounted to
$192,685,734 and $213,505,620, respectively.
The Fund enters into forward currency exchange contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its
foreign portfolio holdings. When executing forward currency exchange
contracts, the Fund is obligated to buy or sell a foreign currency at a
specified rate on a certain date in the future. With respect to sales of
forward currency exchange contracts, the Fund would incur a loss if the value
of the contract increases between the date the forward contract is opened and
the date the forward contract is closed. The Fund realizes a gain if the
value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the Fund would incur a loss
if the value of the contract decreases between the date the forward contract
is opened and the date the forward contract is closed. The Fund realizes a
gain if the value of the contract increases between those dates. The Fund is
also exposed to credit risk associated with counter party nonperformance on
these forward currency exchange contracts which is typically limited to the
unrealized gain on each open contract. The following summarizes open forward
currency exchange contracts at April 30, 1998:
<TABLE>
<CAPTION>
FOREIGN
CURRENCY UNREALIZED
FORWARD CURRENCY EXCHANGE CONTRACTS AMOUNTS PROCEEDS VALUE APPRECIATION
- ------------------------------------- -------- -------- ----- ------------
SALES:
- -----
<S> <C> <C> <C> <C>
Japanese Yen, expiring 5/18/1998......... 660,000,000 $5,186,437 $4,982,166 $204,271
========
</TABLE>
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
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 April 30, 1998, there were no financial futures contracts outstanding.
(B) At April 30, 1998, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $41,972,641,
consisting of $50,260,232 gross unrealized appreciation and $8,287,591 gross
unrealized depreciation.
At April 30, 1998, 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).
<PAGE>
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. 037/632SA9840
