<PAGE>
Semi-Annual Report
------------------------
Dreyfus Premier
International Value
Fund
------------------------
April 30, 1998
[LION LOGO}
<PAGE>
Dreyfus Premier International Value Fund
- -----------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
It is a pleasure to introduce Sandor Cseh, the portfolio manager of the
Dreyfus Premier International Value Fund.
Sandor joined The Dreyfus Corporation in October 1995 as a portfolio
manager. Currently, he is also a Vice President and a portfolio manager for
The Boston Company Asset Management (TBCAM), a Dreyfus affiliate. As director
of international investments, he spearheads TBCAM's international equity group.
Prior to joining TBCAM, Sandor was president of his own money management
firm and, before that, was founder and manager of Provident Capital
Management Inc.'s International Funds Group. He started his career as a
securities analyst with several banks including Provident National and Fleet
Bank.
Sandor graduated with a B.S. in Finance from the University of Delaware
and is a Chartered Financial Analyst.
We at Dreyfus are pleased that you are one of our investors and that Sandor
Cseh is working on your behalf.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation
May 18, 1998
New York, N.Y.
<PAGE>
Dreyfus Premier International Value Fund
- -----------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
The Dreyfus Premier International Value Fund began operations on March 31,
1998. The one-month period ended April 30, 1998 marks the end of the Fund's
first semi-annual reporting period. During that time, assets were being
invested to build a diversified, representative portfolio. The startup phase
for a fund often means that not all assets can be invested as promptly as
possible to put in place a fully diversified portfolio.
The total return for each class of shares of the Fund for the one-month
period ended April 30, 1998 are as follows:
<TABLE>
Total Return*
-------------
<S> <C>
Class A Shares - 0.08%
Class B Shares - 0.16%
Class C Shares - 0.16%
Class R Shares - 0.08%
</TABLE>
For the same period, the Fund's benchmark, The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE(R)) Index, had a total
return of .79%.** The Fund underperformed the benchmark mainly because it was
not fully invested during the reporting period.
Japan continued to depress returns from abroad, with its stock market now
entering the ninth year of a bear market. On February 27 the Nikkei Index
closed more than 50% below its peak of December 1989. In contrast, during
this eight-year period the U.S. market has tripled, as measured by the S&P
500.
European markets across the board were strong, and in most cases even
outperformed the U.S.
Our strategy for this Fund is to be well diversified and to focus on value
stocks. As the Fund began its second month, it was primarily invested in
the major industrialized countries, and exposure to emerging markets was
under 2%.
Economic and Market Environment
Economic growth worldwide, with the exception of Asia, is continuing at a
moderate pace. Inflation in the industrialized countries remains under
control, interest rates are stable and the environment was favorable for
stock prices. The most significant negative development for the last six months
was the sharp economic reversal in Asia. The "Asian Tigers," portrayed for
years as the models for economic development, fell victim to overexpansion
Currencies depreciated and stock markets suffered sharp reversals. As mentioned
earlier, your portfolio had a very limited exposure in the area and was not
seriously impacted.
The European economies continued to improve with Gross Domestic Product
(GDP) growth reaching the 2.7% to 3.0% range. In anticipation of the European
Monetary Union (EMU) interest rate differentials continued to narrow and
inflation continued to trend down.
The fiscal tightening needed to reach the Maastricht guidelines for EMU
has now run its course. Monetary policy is now more accommodating to
encourage growth. European economies at this point are lagging the U.S.
in terms of the economic cycle. The exception is the U.K. which is much
closer to the U.S. cycle.
In terms of the stock markets, we believe the environment in Europe
currently is favorable for investment. Although valuations are not cheap
relative to the historical norm, they compare favorably with the U.S. In
terms of book value and price to cash flow, Europe is at a significant
discount to the U.S. In terms of price-to-earnings ratios, however, the case
is less compelling, but if the numbers are adjusted to reflect the more
conservative accounting practices of German and Swiss companies, price-to-
earnings ratios are also lower. Furthermore, we believe that there is a great
deal of potential for improved profitability in Europe at the corporate
level. Restructuring and share buybacks are just now beginning in Europe
whereas in the U.S. the process has been under way for several years.
<PAGE>
The biggest challenge today is to minimize the impact of turmoil in Asia
on the rest of the world. The "Asian Tigers," accustomed to generating
economic growth of 7% to 8%, could experience significantly lower growth
rates for a while. Currencies remain under pressure and major Asian firms are
struggling under the burden of heavy dollar-based debt. Until now these
problems have not impacted developed countries to any significant extent, and
we are optimistic that future impact will be minimal. One reason for the
severity of the situation in the emerging markets of Asia is that the major
industrial power in the region, Japan, is still struggling to solve its own
economic problems.
Early last year, Japan appeared on its way to economic recovery when the
consumption tax was raised from 3% to 5%. However, the increase in the tax
had much more adverse impact on the consumer than anticipated . Retail sales
and housing were impacted negatively and the economy stagnated. Politicians
now realize that measures are needed to stimulate the economy but because of
scandals and political maneuverings the measures have not yet been
implemented. We believe that over the next few months, new programs will be
put in place to shore up the economy.
In terms of valuations, Japan now appears cheap relative to the rest
of the world. The price-to-book value of the Japanese market is 1.9
compared with the U.S. of 4.5. The price-to-cash-flow ratio is 9.9
compared with 15.2 in the U.S. In terms of price-to-earnings ratios,
Japan is still expensive because profits are depressed at the bottom of the
economic cycle.
Portfolio Focus
Our strategy is to seek undervalued securities with sound fundamentals and
improving earnings momentum. We intend to remain well diversified within the
value universe, both in terms of country exposure and economic sectors. As of
April 30, 1998, the Fund was invested in 20 countries, including the small
exposure to emerging markets.
Holdings in emerging markets have been kept low due to the turmoil and the
volatility in Asia. The severe decline in those markets has brought
valuations down, and as we begin to see evidence of stabilization we will
search for opportunities. However, the objective of the Fund is to invest
primarily in the major established stock markets. This economic decline could
bring greater opportunity in the value sector, and while exposure to emerging
markets may rise somewhat as a result, over 90% of the portfolio is expected
to continue to be invested in the major industrialized economies.
Although stock market returns abroad have lagged those of the U.S. in
recent years, we are optimistic about the long-term outlook abroad and will
continue to search for opportunities within the value sector.
We appreciate your investment in the Fund and will continue exerting our
best efforts to bring long-term investors like you with rewarding returns
from international value stocks.
Sincerely,
/s/ Sandor Cseh
Sandor Cseh
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 applicable contingent
deferred sales charge imposed on redemptions in the case of Class B and
Class C shares.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE(R)) Index is an
unmanaged index composed of a sample of companies representative of the
market structure of European and Pacific Basin countries and includes net
dividends reinvested. The Index is the property of Morgan Stanley & Co.,
Incorporated.
<PAGE>
Dreyfus Premier International Value Fund
- -----------------------------------------------------------------------------
Statement of Investments April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks--89.8% Shares Value
- ------------------------------------------------------------------------------------ ----------- -----------
<S> <C> <C> <C>
Argentina--.9% YPF Sociedad Anonima, ADS...................... 1,300 $ 45,338
-----------
Australia--2.2% Australia and New Zealand Banking............. 7,508 52,201
Boral......................................... 16,000 36,793
Pacific Dunlop................................ 10,900 20,109
-----------
109,103
-----------
Denmark--.5% Jyske Bank.................................... 200 23,213
-----------
Finland--.8% Kesko Oyj..................................... 2,500 40,350
-----------
France--11.0% Alcatel Alsthom, ADS.......................... 2,000 72,500
Bongrain...................................... 50 25,733
C.S.F. (Thompson)............................. 800 31,630
Danone........................................ 350 82,565
Dexia France.................................. 270 32,654
Elf Aquitaine, ADS............................ 1,300 84,419
Guyenne et Gascogne........................... 100 30,900
L'Air Liquide................................. 150 27,660
Michelin...................................... 700 44,062
Pechiney A.................................... 600 26,813
Societe Generale.............................. 300 62,397
Usinor........................................ 2,000 29,903
-----------
551,236
-----------
Germany--11.2% Bayer......................................... 1,400 62,205
Deutsche Bank................................. 800 61,515
Deutsche Lufthansa............................ 2,500 59,438
GEA........................................... 130 57,921
Hoechst....................................... 1,000 40,306
Siemens....................................... 1,200 70,156
Tarkett....................................... 1,200 41,425
VEBA.......................................... 1,000 66,036
Viag.......................................... 120 60,735
Volkswagen.................................... 50 39,783
-----------
559,520
-----------
Hong Kong--2.7% Guoco Group................................... 10,000 25,037
HSBC.......................................... 1,000 28,521
Henderson Investment.......................... 30,000 19,359
HongKong Electric............................. 15,000 46,073
Swire Pacific................................. 20,000 17,036
-----------
136,026
-----------
</TABLE>
<PAGE>
Dreyfus Premier International Value Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------------ ----------- -----------
<S> <C> <C> <C>
Italy--3.1% ENI, ADS...................................... 1,000 $ 66,125
Istituto Mobiliare Italiano, ADS.............. 500 24,375
Telecom Italia................................ 12,000 63,226
-----------
153,726
-----------
Japan--20.2% Canon......................................... 2,000 47,085
Credit Saison................................. 3,000 64,761
Dai-Tokyo Fire & Marine Insurance............. 10,000 36,480
Fuji Machine Manufacturing.................... 1,000 28,432
Hitachi....................................... 5,000 35,690
Honda Motor................................... 1,000 36,104
Ito-Yokado.................................... 1,000 51,523
Kao........................................... 3,000 43,889
Mabuchi Motor................................. 1,000 57,615
Marubeni...................................... 11,000 24,987
Matsumotokiyoshi.............................. 1,000 34,373
Minebea....................................... 6,000 66,792
Mitsubishi Heavy Industries................... 8,000 29,485
Murata Manufacturing.......................... 2,000 58,368
NAMCO ........................................ 1,000 20,196
Nichiei....................................... 700 54,231
Nishimatsu Construction....................... 5,000 21,437
Rinnai........................................ 2,500 39,489
Sankyo........................................ 2,000 31,892
Sekisui Chemical.............................. 5,000 27,341
Sony.......................................... 800 66,250
Toshiba....................................... 7,000 32,328
Toyota Motor.................................. 2,000 51,899
Yamanouchi Pharmaceutical..................... 2,000 47,085
-----------
1,007,732
-----------
Netherlands--7.0% ABN-Amro...................................... 2,800 68,134
Akzo Nobel, ADR............................... 500 51,500
Hollandsche Beton Groep....................... 2,300 47,891
Hunter Douglas................................ 1,000 48,716
Koninklijke KNP............................... 2,000 54,899
Philips Electronics, ADR...................... 500 45,000
Royal PTT Nederland, ADS...................... 700 36,706
-----------
352,846
-----------
Norway--1.2% Fred. Olsen Energy............................ 1,500 (a) 26,718
Orkla AS-B.................................... 300 32,061
-----------
58,779
-----------
Peru--.4% Telefonica del Peru, ADS....................... 1,000 22,125
-----------
</TABLE>
<PAGE>
Dreyfus Premier International Value Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------------ ----------- -----------
<S> <C> <C> <C>
Portugal--.5% Banco Totta & Acores.......................... 700 $ 26,612
-----------
Singapore--.7% Development Bank of Singapore................. 5,000 33,154
-----------
Spain--4.6% Corporacion Bancaria de Espana, ADS........... 1,500 61,125
Endesa........................................ 1,000 24,262
Gas Y Electridad.............................. 700 57,375
Repsol, ADR................................... 1,600 87,500
-----------
230,262
-----------
Sweden--1.9% Autoliv....................................... 2,000 60,676
Scania AB `A', ADS............................ 1,400 32,984
-----------
93,660
-----------
Switzerland--2.9% Forbo Holding................................. 100 51,299
Sulzer........................................ 40 28,647
Union Bank of Switzerland..................... 40 64,384
-----------
144,330
-----------
United Kingdom--16.7% BTR........................................... 20,000 66,442
Bunzl......................................... 13,000 63,233
Laird Group................................... 7,000 51,775
LucasVarity................................... 17,000 75,940
Medeva........................................ 9,000 26,777
PowerGen...................................... 5,500 74,281
Rio Tinto..................................... 4,300 61,704
Royal & Sun Alliance Insurance................ 6,500 72,577
Safeway....................................... 11,000 65,548
Stakis........................................ 20,000 43,125
Standard Chartered............................ 5,000 76,555
Storehouse.................................... 15,000 62,054
Tomkins....................................... 16,000 94,139
-----------
834,150
-----------
United States--1.3% Pharmacia & Upjohn............................ 1,500 63,094
-----------
TOTAL COMMON STOCKS
(cost $4,519,708).......................... $4,485,256
-----------
-----------
Preferred Stocks--2.6%
- --------------------------------------------------------------------------------------
Austria--1.2% Bank Austria................................. 800 (a) $ 61,794
-----------
Germany--1.4% Hugo Boss.................................... 20 37,166
Rheinmetall.................................. 1,200 31,403
-----------
68,569
-----------
TOTAL PREFERRED STOCKS
(cost $111,981)............................ $ 130,363
-----------
-----------
</TABLE>
<PAGE>
Dreyfus Premier International Value Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1998 (Unaudited)
<TABLE>
Principal
Short-Term Investments--7.0% Amount Value
- --------------------------------------------------------------------------------- ----------- ------------
<S> <C> <C> <C>
U.S. Treasury Bills: 4.99%, 5/28/98................................ $ 249,000 $ 248,149
5.03%, 6/25/98................................ 103,000 102,255
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $350,277)............................ $ 350,404
-----------
-----------
TOTAL INVESTMENTS (cost $4,981,966)............................................ 99.4% $ 4,966,023
------- -----------
------- -----------
CASH AND RECEIVABLES (NET)..................................................... .6% $ 30,267
------- -----------
------- -----------
NET ASSETS..................................................................... 100.0% $4,996,290
------- -----------
------- -----------
Notes to Statement of Investments:
- ----------------------------------------------------------------------------------
(a) Non-income producing.
See notes to financial statements.
</TABLE>
<PAGE>
Dreyfus Premier International 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 $4,981,966 $4,966,023
Cash............................................. 1,100
Cash denominated in foreign currencies........... 32,925 32,907
Receivable for investment securities sold........ 14,350
Dividends receivable............................. 5,282
Due from The Dreyfus Corporation................. 6,483
-----------
5,026,145
-----------
LIABILITIES: Due to Distributor............................... 1,552
Payable for investment securities purchased...... 15,094
Net unrealized depreciation on forward
currency exchange contracts--Note 3(a)......... 20
Accrued expenses................................. 13,189
----------
29,855
-----------
NET ASSETS..................................................................... $4,996,290
-----------
-----------
REPRESENTED BY: Paid-in capital.................................. $5,000,000
Accumulated undistributed investment income--net. 5,948
Accumulated net realized gain (loss) on investments
and foreign currency transactions.............. 6,495
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (16,153)
-----------
NET ASSETS..................................................................... $4,996,290
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
-------------------------
Class A Class B Class C Class R
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Net Assets..................................... $3,497,780 499,355 $ 499,365 $ 499,790
Shares Outstanding............................. 280,000 40,000 40,000 40,000
NET ASSET VALUE PER SHARE...................... $12.49 $12.48 $12.48 $12.49
------- ------- ------- -------
------- ------- ------- -------
See notes to financial statements.
</TABLE>
<PAGE>
Dreyfus Premier International Value Fund
- -------------------------------------------------------------------------------
Statement of Operations
from March 31, 1998 (commencement of operations) to April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $1,069 foreign taxes
withheld at source)...................... $ 8,822
Interest................................... 6,316
---------
Total Income.......................... $15,138
EXPENSES: Management fee--Note 2(a)................... 4,274
Custodian fees............................. 4,932
Auditing fees.............................. 3,571
Trustees' fees and expenses--Note 2(d)...... 3,083
Registration fees.......................... 1,475
Shareholder servicing costs--Note 2(c)...... 1,062
Distribution fees--Note 2(b)................ 641
Legal fees................................. 500
Prospectus and shareholders' reports....... 333
Miscellaneous.............................. 76
---------
Total Expenses........................ 19,947
Less--expense reimbursement due to
undertaking--Note 2(a).................... (10,757)
---------
Net Expenses.......................... 9,190
--------
INVESTMENT INCOME--NET.................................................... 5,948
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments and
foreign currency transactions............ $ 10,214
Net realized gain (loss) on forward currency
exchange contracts....................... (3,719)
---------
Net Realized Gain (Loss).............. 6,495
Net unrealized appreciation (depreciation)
on investments........................... (16,153)
-----------
NET REALIZED AN UNREALIZED GAIN (LOSS) ON INVESTMENTS.................... (9,658)
-----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $ (3,710)
-----------
-----------
See notes to financial statements.
</TABLE>
<PAGE>
Dreyfus Premier International Value Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets
from March 31, 1998 (commencement of operations) to April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
OPERATIONS:
<S> <C>
Investment income--net................................................................ $ 5,948
Net realized gain (loss) on investments.............................................. 6,495
Net unrealized appreciation (depreciation) on investments............................ (16,153)
-----------
Net Increase (Decrease) in Net Assets Resulting from Operations................ (3,710)
-----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................................... 3,500,000
Class B shares.................................................................... 500,000
Class C shares.................................................................... 500,000
Class R shares.................................................................... 500,000
-----------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions........ 5,000,000
-----------
Total Increase (Decrease) in Net Assets..................................... 4,996,290
NET ASSETS:
Beginning of Period.................................................................. --
-----------
End of Period........................................................................ $4,996,290
-----------
-----------
Undistributed investment income--net..................................................... $ 5,948
-----------
See notes to financial statements.
</TABLE>
<PAGE>
Dreyfus Premier International Value Fund
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)
from March 31, 1998 (commencement of operations) to April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
CAPITAL SHARE TRANSACTIONS:
Class A
- -------------
<S> <C>
Shares sold.......................................................................... 280,000
-------
-------
Class B
- -------------
Shares sold.......................................................................... 40,000
-------
-------
Class C
- -------------
Shares sold.......................................................................... 40,000
-------
-------
Class R
- -------------
Shares sold.......................................................................... 40,000
-------
-------
See notes to financial statements.
</TABLE>
<PAGE>
Dreyfus Premier International Value Fund
- -----------------------------------------------------------------------------
Financial Highlights (Unaudited)
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 the period from March 31, 1998
(commencement of operations) to April 30, 1998. This information has been
derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class A Class B Class C Class R
PER SHARE DATA: Shares Shares Shares Shares
<S> <C> <C> <C> <C>
------- ------- ------- -------
Net asset value, beginning of period....................... $12.50 $12.50 $12.50 $12.50
------- ------- ------- -------
Investment Operations:
Investment income--net...................................... .02 .01 .01 .02
Net realized and unrealized gain (loss) on investments..... (.03) (.03) (.03) (.03)
------- ------- ------- -------
Total from Investment Operations........................... (.01) (.02) (.02) (.01)
------- ------- ------- -------
Net asset value, end of period............................. $12.49 $12.48 $12.48 $12.49
------- ------- ------- -------
------- ------- ------- -------
TOTAL INVESTMENT RETURN(1).................................... (.08%)(2) (.16%)(2) (.16%)(2) (.08%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(1)................. .39% .45% .45% .36%
Ratio of net investment income to average net assets(1).... .13% .07% .07% .15%
Decrease reflected in above expense ratios due to undertaking
by the Manager(1)....................................... .21% .21% .21% .21%
Portfolio Turnover Rate(1)................................. 3.06% 3.06% 3.06% 3.06%
Average commission rate paid(3)............................ $.0099 $.0099 $.0099 $.0099
Net Assets, end of period (000's Omitted).................. $3,498 $499 $499 $500
</TABLE>
- -------------------------------------------------------------------------------
[FN]
(1) Not annualized.
(2) Exclusive of sales load.
(3) The Fund is required to disclose its average commission rate paid per share
for purchases and sales of investment securities.
</FN>
See notes to financial statements.
<PAGE>
Dreyfus Premier International Value Fund
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier International Value Fund (the "Fund") is a separate
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 a series company,
currently offering two series, including the Fund. The Fund's investment
objective is long-term 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") which is a wholly-owned subsidiary of Mellon
Bank Corporation.
As of April 30, 1998, MBIC Investment Corp., an indirect subsidiary of
Mellon Bank Corporation, held the following shares:
Class A............280,000 Class C.............40,000
Class B.............40,000 Class R.............40,000
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
<PAGE>
Dreyfus Premier International Value Fund
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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.
(e) Federal income taxes: It is the policy of the Fund to qualify as a
regulated investment company, if such qualification is in the best interests
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--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 1% of the value of the Fund's average
daily net assets and is payable monthly. The Manager had undertaken from
March 31, 1998 through April 30, 1998, to reimburse such excess expenses of
the Fund to the extent that the Fund's aggregate annual expenses, excluding
12b-1 distribution plan fees, taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed specified annual percentages of the value of
the Fund's average daily net assets. The expense reimbursement, pursuant to
the undertaking, amounted to $10,757 for the period ended April 30, 1998.
(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 $321
and $320, 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
their average daily net assets for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended April 30, 1998,
Class A, Class B and Class C shares were charged $748, $107 and $107,
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 $5 pursuant to the transfer
agency agreement.
<PAGE>
Dreyfus Premier International Value Fund
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(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 3--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 April 30, 1998 amounted to $4,696,472 and $70,567,
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 and to settle foreign currency transactions. 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>
<S> <C> <C> <C> <C>
Foreign Unrealized
Currency Appreciation
Forward Currency Exchange Contracts Amounts Proceeds Value (Depreciation)
- -------------------------------- -------- -------- -------- ------------
Sales:
Australian Dollar, expiring 5/1/1998......... 6,187 $ 4,018 $ 4,019 $1
Australian Dollar, expiring 5/6/1998......... 5,835 3,811 3,790 (21)
-----
$(20)
=====
</TABLE>
(b) At April 30, 1998, accumulated net unrealized depreciation on
investments and forward currency exchange contracts was $15,963, consisting
of $127,939 gross unrealized appreciation and $143,902 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 International Value Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 173/147SA984
