Dreyfus Premier
Value Fund
SEMIANNUAL REPORT
April 30, 1999
<PAGE>
Year 2000 Issues
(Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- --------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
13 Financial Highlights
17 Notes to Financial Statements
FOR MORE INFORMATION
- --------------------------------------------------------
Back Cover
<PAGE>
The Fund
Dreyfus Premier
Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Value Fund,
covering the six-month period from November 1, 1998 through April 30, 1999.
Inside, you'll find valuable information about how the Fund was managed during
the reporting period, including a discussion with the Fund's portfolio manager,
Timothy M. Ghriskey.
The past six months have been rewarding for many equity investors. Strong
economic growth, low inflation and high levels of consumer spending supported
continued strength in the stocks of many large companies. The Federal Reserve
Board's lowering of short-term interest rates in the fall of 1998 appears to
have helped U.S. businesses withstand the effects of economic weakness in Japan,
Asia and Latin America. As a result, several major market indices set new
records, including the Dow Jones Industrial Average's first-ever close above the
10,000 level. The broader S&P 500 Index and the technology-laden NASDAQ Index
also recorded new highs.
Yet, until near the end of the six-month period, the stock market's advance
remained relatively narrow, confined to a handful of highly valued growth and
technology stocks. In April, however, some previously out-of-favor market
sectors rallied strongly, including large-cap cyclical companies as well as some
small- and mid-cap stocks.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Value Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Timothy M. Ghriskey, Senior Portfolio Manager
How did Dreyfus Premier Value Fund perform relative to its benchmark?
The Fund produced a total return during the six-month period roughly equal to or
slightly better than the Wilshire Large Company Value Index's return of 15.04%.
1 The Fund's total return for this six-month period ended April 30, 1999 was
15.50% for Class A shares; 15.09% for Class B shares; 15.02% for Class C shares;
and 15.33% for Class R shares. 2
We attribute this strong performance partly to the surprisingly rapid recovery
of global capital markets in the wake of last summer's decline, and partly to
the powerful shift in market sentiment in favor of value-oriented stocks toward
the end of the period.
What is the Fund's investment approach?
Dreyfus Premier Value Fund invests in a diversified portfolio of value-oriented
companies. We define a value stock as one that appears underpriced in relation
to the company's intrinsic value, as measured by a wide range of financial and
business data. To put it another way, we seek to buy growing companies at
bargain prices.
We select investments one stock and one company at a time. Our investment
process starts with a computerized, quantitative analysis of the universe of
stocks, first to identify those that meet our definition of value, and then to
focus on those value stocks we believe are best positioned to grow in the
current market environment. Our team of experienced analysts examine the
fundamentals of each top-ranked candidate to decide which to purchase, and to
decide if any current holdings should be sold.
The result of our approach during the recent six-month period was a portfolio of
carefully selected stocks with greater concentration than our benchmark in the
areas of health care, technology and consumer
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
staples. Several of our holdings in these sectors showed notable strength
throughout the period, including Allergan in health care, International Business
Machines in technology and Wendy's International in consumer staples. On the
other hand, two of our technology holdings, Compaq Computer and Storage
Technology, proved particularly disappointing as a result of the companies'
struggles with strong competitive pressures.
The Fund also benefited from its many investments in the financial and energy
industries. Financial stocks, such as Citigroup, American International Group
and Chase Manhattan, performed well through most of the period. Stock prices of
energy companies, such as Mobil and BP Amoco A.D.S., rose sharply in response to
industry mergers, production limits instituted by the Organization of Petroleum
Exporting Countries (OPEC), and growing global industrial activity.
What other factors influenced the Fund's performance?
During the last few weeks of the period, a powerful shift in market sentiment
took place. This shift was precipitated by unexpected strength in the U.S. and
global economies, which favors value-oriented stocks, and by the relatively high
valuations of a handful of large-cap growth stocks. For the first time in
approximately 18 months, investment dollars began flowing out of large-cap
growth stocks and into a broad range of value stocks.
Our disciplined strategy of value investing positioned the Fund
to benefit from the market's move toward value. We took additional advantage of
this favorable shift in market sentiment by adding to our holdings of basic
materials stocks, such as International Paper, and capital goods stocks, such as
Boeing and Tyco International, which stood to profit from growing global demand
for industrial resources.
4
<PAGE>
Our investment discipline also enabled us to identify individual
strong-performing stocks within relatively weak-performing sectors. For example,
the market generally has not rewarded utility companies lately. Nevertheless,
our holdings of Niagra Mohawk Power rose rapidly during the first few months of
the recent period. In recognition of the industry's weakness, we sold a portion
of our holdings near their peak price in late December 1998. We also invested in
several rapidly growing stocks in the telecommunications services industry, such
as MCI WorldCom and AT&T, despite that sector's mixed overall performance.
What is the Fund's current strategy?
As of April 30, we have been encouraged by the market's apparent shift toward
value. Valuations between growth-oriented and value-oriented stocks had reached
historically wide levels by the first quarter of 1999. Even after April's shift
in market sentiment from growth to value, that valuation gap remains relatively
wide.
Of course, we cannot be certain that investors' interest in value will continue,
but we do not believe that current valuation disparities between growth and
value are likely to persist. In our view, the past six months illustrate the
importance of maintaining a disciplined investment style and the Fund's
commitment to value investments.
May 13, 1999
1 SOURCE: WILSHIRE ASSOCIATES, INC. - The Wilshire Large Company Value Index is
an unmanaged index reflecting the performance of the largest 750 stocks
composing the Wilshire 5000 Index that meet statistical criteria for being a
"value" stock.
2 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.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Common Stocks--98.5% Shares Value ($)
- --------------------------------------------------------------------------------
Aerospace Electronics--2.0%
Boeing 112,000 4,550,000
Basic Industries--5.4%
Dow Chemical 52,600 6,900,462
International Paper 100,000 5,331,250
12,231,712
Capital Spending--2.7%
Computer Associates International 113,000 4,823,688
Hewlett-Packard 14,600 1,151,575
5,975,263
Consumer Durables--6.7%
Black & Decker 82,800 4,698,900
General Motors 67,000 5,958,812
Newell 95,000 4,506,563
15,164,275
Consumer Services--6.2%
Cendant 324,000 a 5,832,000
McDonald's 84,300 3,572,213
Wendy's International 164,000 4,438,250
13,842,463
Electronic Technology--6.0%
Intel 92,200 5,641,488
International Business Machines 25,600 5,355,200
Storage Technology 128,000 a 2,472,000
13,468,688
Energy--2.7%
Royal Dutch Petroleum A.D.R. 104,000 6,103,500
Energy Minerals--5.2%
BP Amoco, A.D.S. 48,600 5,500,912
Mobil 59,000 6,180,250
11,681,162
Finance--21.3%
Bank One 92,600 5,463,400
BankAmerica 86,000 6,192,000
Chase Manhattan 74,000 6,123,500
Citigroup 81,000 6,095,250
First Union 98,200 5,437,825
6
<PAGE>
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Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------------
Finance (continued)
Fleet Financial Group 124,500 5,361,281
Morgan Stanley Dean Witter 64,200 6,367,838
Wells Fargo 154,500 6,672,469
47,713,563
Health Care--.7%
CIGNA 17,100 1,490,906
Health Services--1.9%
Columbia/HCA Healthcare 169,800 4,191,937
Health Technology--6.0%
Allergan 51,400 4,619,575
American Home Products 71,000 4,331,000
Pharmacia & Upjohn 80,300 4,496,800
13,447,375
Insurance--4.3%
American International Group 44,000 5,167,250
Everest Reinsurance Holdings 72,600 2,200,688
Xl Capital Limited, Cl. A 39,000 2,366,812
9,734,750
Non-Energy Minerals--2.8%
Alcoa 102,000 6,349,500
Process Industries--2.3%
DuPont (E.I.) deNemours 72,000 5,085,000
Producer Manufacturing--7.1%
General Electric 37,900 3,998,450
Honeywell 65,000 6,158,750
Tyco International 70,000 5,687,500
15,844,700
Retail Trade--1.8%
American Stores 128,000 4,040,000
Transportation--1.9%
CNF Transportation 100,000 4,368,750
Utilities--11.5%
AT&T 79,121 3,995,585
Ameritech 81,500 5,577,656
Bell Atlantic 79,000 4,552,375
Coastal 124,000 4,743,000
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
Common Stocks continued) Shares Value ($)
- --------------------------------------------------------------------------------
Utilities (continued)
MCI WorldCom 57,100 a 4,692,906
Niagara Mohawk Power 175,000 a 2,340,625
25,902,147
Total Common Stocks
(cost $179,823,990) 221,185,691
- --------------------------------------------------------------------------------
Principal
Short-Term Investments--1.7% Amount ($) Value ($)
- --------------------------------------------------------------------------------
U.S. Treasury Bills,
4.39%, 7/29/1999
(cost $3,740,953) 3,741,495
Total Investments (cost $183,564,943) 100.2% 224,927,186
Liabilities, Less Cash and Receivables (.2%) (519,411)
Net Assets 100.0% 224,407,775
a Non-income producing.
See notes to financial statements.
8
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Cost Value
- --------------------------------------------------------------------------------
Assets ($):
Investments in securities
--See Statement of Investments 183,564,943 224,927,186
Receivable for investment securities sold 5,748,487
Dividends receivable 149,225
Receivable for shares of Beneficial
Interest subscribed 25,741
Prepaid expenses 28,095
230,878,734
- --------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation and affiliates 173,023
Due to Distributor 72,699
Cash overdraft due to Custodian 89,961
Payable for investment securities purchased 6,056,536
Payable for shares of Beneficial Interest redeemed 29,188
Accrued expenses 49,552
6,470,959
- --------------------------------------------------------------------------------
Net Assets ($) 224,407,775
- --------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 165,186,826
Accumulated undistributed investment income--net 405,850
Accumulated net realized gain (loss) on investments 17,452,856
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4(b) 41,362,243
- --------------------------------------------------------------------------------
Net Assets ($) 224,407,775
- --------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Class B Class C Class R
- --------------------------------------------------------------------------------
Net Assets ($) 182,595,905 41,266,601 537,161 8,108
Shares Outstanding 8,137,382 1,900,136 24,897 366
- --------------------------------------------------------------------------------
Net Asset Value Per
Share ($) 22.44 21.72 21.58 22.15
See notes to financial statements.
The Fund 9
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income ($)
- --------------------------------------------------------------------------------
Income:
Cash dividends (net of $20,475 foreign taxes withheld at source) 1,671,411
Interest 181,991
Total Income 1,853,402
Expenses:
Management fee--Note 3(a) 851,976
Shareholder servicing costs--Note 3(c) 369,362
Distribution fees--Note 3(b) 175,013
Professional fees 36,507
Registration fees 31,635
Trustees' fees and expenses--Note 3(d) 21,671
Prospectus and shareholders' reports 15,723
Custodian fees--Note 3(c) 11,552
Loan commitment fees--Note 2 817
Interest expense--Note 2 653
Miscellaneous 2,682
Total Expenses 1,517,591
Investment Income--Net 335,811
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4:
Net realized gain (loss) on investments 15,946,142
Net realized gain (loss) on financial futures 1,259,750
Net Realized Gain (Loss) 17,205,892
Net unrealized appreciation (depreciation) on investments
[including ($279,250) net unrealized
depreciation on financial futures] 14,930,466
Net Realized and Unrealized Gain (Loss) on Investments 32,136,358
Net Increase in Net Assets Resulting from Operations 32,472,169
See notes to financial statements.
10
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
- ------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income--net 335,811 927,593
Net realized gain (loss) on investments 17,205,892 15,331,091
Net unrealized appreciation (depreciation)
on investments 14,930,466 (10,271,824)
Net Increase (Decrease) in Net Assets Resulting
from Operations 32,472,169 5,986,860
- ------------------------------------------------------------------------------------
Dividends to Shareholders From ($):
Investment income--net:
Class A shares (847,057) (897,158)
Class C shares -- (1,708)
Class R shares (42) (30)
Net realized gain on investments:
Class A shares (12,313,696) (28,342,023)
Class B shares (3,589,217) (7,784,711)
Class C shares (48,455) (102,316)
Class R shares (498) (705)
Total Dividends (16,798,965) (37,128,651)
- ------------------------------------------------------------------------------------
Beneficial Interest Transactions:
Net proceeds from shares sold:
Class A shares 226,663,573 358,815,870
Class B shares 1,942,322 5,641,156
Class C shares 126,523 382,394
Class R shares 745 19,638
Dividends reinvested:
Class A shares 12,323,001 27,528,054
Class B shares 3,380,195 7,388,194
Class C shares 32,265 56,706
Class R shares 530 726
Cost of shares redeemed:
Class A shares (247,711,539) (390,437,238)
Class B shares (14,469,281) (10,960,162)
Class C shares (317,460) (288,724)
Class R shares (25) (20,056)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions (18,029,151) (1,873,442)
Total Increase (Decrease) in Net Assets (2,355,947) (33,015,233)
- ------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 226,763,722 259,778,955
End of Period 224,407,775 226,763,722
Undistributed investment income--net 405,850 917,138
See notes to financial statements.
</TABLE>
The Fund 11
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
- ------------------------------------------------------------------------------------
<S> <C> <C>
Capital Share Transactions:
Class A
Shares sold 10,524,133 16,637,744
Shares issued for dividends reinvested 620,493 1,312,735
Shares redeemed (11,484,124) (17,963,303)
Net Increase (Decrease) in Shares Outstanding (339,498) (12,824)
- ------------------------------------------------------------------------------------
Class B
Shares sold 93,151 268,507
Shares issued for dividends reinvested 175,321 361,281
Shares redeemed (696,096) (531,471)
Net Increase (Decrease) in Shares Outstanding (427,624) 98,317
- ------------------------------------------------------------------------------------
Class C
Shares sold 6,129 17,550
Shares issued for dividends reinvested 1,685 2,787
Shares redeemed (15,069) (13,297)
Net Increase (Decrease) in Shares Outstanding (7,255) 7,040
- ------------------------------------------------------------------------------------
Class R
Shares sold 35 982
Shares issued for dividends reinvested 27 34
Shares redeemed (1) (907)
Net Increase (Decrease) in Shares Outstanding 61 109
</TABLE>
See notes to financial statements.
12
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single Fund share. Total return shows how much your investment in the Fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been derived from the Fund's
financial statements.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended October 31,
---------------------------------------------
Class A Shares (Unaudited) 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 21.07 24.30 22.42 21.59 19.83 23.77
Investment Operations:
Investment income--net .05 .13 .12 .22 .31 .01
Net realized and unrealized
gain (loss) on investments 3.00 .23 5.40 3.01 2.04 (1.54)
Total from Investment Operations 3.05 .36 5.52 3.23 2.35 (1.53)
Distributions:
Dividends from investment
income--net (.11) (.11) (.20) (.31) (.05) --
Dividends in excess of
investment income--net -- -- -- -- -- (.12)
Dividends from net realized
gain on investments (1.57) (3.48) (3.44) (2.09) (.54) (2.29)
Total Distributions (1.68) (3.59) (3.64) (2.40) (.59) (2.41)
Net asset value, end of period 22.44 21.07 24.30 22.42 21.59 19.83
- ---------------------------------------------------------------------------------------------
Total Return (%)a 15.50b 1.53 27.43 15.95 12.43 (6.92)
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of operating expenses
to average net assets .58b 1.19 1.18 1.19 1.22 1.29
Ratio of interest expense, loan
commitment fees and dividends
on securities sold short to
average net assets .00b,c .00c -- -- .05 .25
Ratio of net investment income
to average net assets .22b .54 .51 .94 1.51 .04
Portfolio Turnover Rate 62.72b 159.30 123.53 147.64 244.82 199.13
- ---------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 182,596 178,593 206,333 207,388 208,786 239,407
a Exclusive of sales load.
b Not annualized.
c Amount represents less than .01%.
See notes to financial statements.
</TABLE>
The Fund 13
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended October 31,
----------------------------------------------
Class B Shares (Unaudited) 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 20.41 23.70 21.92 21.17 19.58 23.62
Investment Operations:
Investment income (loss)--net (.10) (.04) (.04) .04 .14 (.04)
Net realized and unrealized
gain (loss) on investments 2.98 .23 5.29 2.96 2.02 (1.62)
Total from Investment Operations 2.88 .19 5.25 3.00 2.16 (1.66)
Distributions:
Dividends from investment
income--net -- -- (.03) (.16) (.03) --
Dividends in excess of investment
income--net -- -- -- -- -- (.09)
Dividends from net realized gain
on investments (1.57) (3.48) (3.44) (2.09) (.54) (2.29)
Total Distributions (1.57) (3.48) (3.47) (2.25) (.57) (2.38)
Net asset value, end of period 21.72 20.41 23.70 21.92 21.17 19.58
- ---------------------------------------------------------------------------------------------
Total Return (%)a 15.09b .75 26.55 15.05 11.50 (7.58)
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of operating expenses to
average net assets .96b 1.95 1.93 1.94 1.97 1.84
Ratio of interest expense, loan
commitment fees and dividends
on securities sold short to
average net assets .00 b,c .00c -- -- .05 .24
Ratio of net investment income
(loss) to average net assets (.15) b (.22) (.27) .19 .71 (.61)
Portfolio Turnover Rate 62.72b 159.30 123.53 147.64 244.82 199.13
- ---------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 41,267 47,512 52,847 44,152 44,365 40,864
a Exclusive of sales load.
b Not annualized.
c Amount represents less than .01%.
See notes to financial statements.
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended October 31,
------------------------------------
Class C Shares (Unaudited) 1998 1997 1996 1995a
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 20.28 23.67 21.90 21.16 21.21
Investment Operations:
Investment income (loss)--net (.08) (.05) (.14)b .06 (.04)
Net realized and unrealized gain (loss)
on investments 2.95 .20 5.35 3.05 (.01)
Total from Investment Operations 2.87 .15 5.21 3.11 (.05)
Distributions:
Dividends from investment income--net -- (.06) -- (.28) --
Dividends from net realized gain on investments (1.57) (3.48) (3.44) (2.09) --
Total Distributions (1.57) (3.54) (3.44) (2.37) --
Net asset value, end of period 21.58 20.28 23.67 21.90 21.16
- ---------------------------------------------------------------------------------------------
Total Return (%)c 15.02d .65 26.38 15.74 (.24)d
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assets .93d 2.08 2.00 1.94 .36d
Ratio of net investment income (loss)
to average net assets (.11)d (.35) (.56) (.51) (.18)d
Portfolio Turnover Rate 62.72d 159.30 123.53 147.64 244.82
- ---------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 537 652 594 6 1
a From September 1, 1995 (commencement of initial offering) to October 31, 1995.
b Based on average shares outstanding at each month end.
c Exclusive of sales load.
d Not annualized.
See notes to financial statements.
The Fund 15
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended October 31,
------------------------------------
Class R Shares (Unaudited) 1998 1997 1996 1995a
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 20.87 24.30 22.42 21.60 21.61
Investment Operations:
Investment income--net .03 .21 .19 .40 --
Net realized and unrealized gain (loss)
on investments 2.95 (.01) 5.38 2.87 (.01)
Total from Investment Operations 2.98 .20 5.57 3.27 (.01)
Distributions:
Dividends from investment income--net (.13) (.15) (.25) (.36) --
Dividends from net realized gain on investments (1.57) (3.48) (3.44) (2.09) --
Total Distributions (1.70) (3.63) (3.69) (2.45) --
Net asset value, end of period 22.15 20.87 24.30 22.42 21.60
- ---------------------------------------------------------------------------------------------
Total Return (%) 15.33b .77 27.74 16.17 (.05) b
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assets .72b 1.00 .94 .97 .17 b
Ratio of net investment income
to average net assets .07b .51 .71 1.07 --
Portfolio Turnover Rate 62.72b 159.30 123.53 147.64 244.82
- ---------------------------------------------------------------------------------------------
Net Assets, end of period ($X1,000) 8 6 5 4 1
a From September 1, 1995 (commencement of initial offering) to October 31, 1995.
b Not annualized.
See notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus 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, as amended (the "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 (the "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
The Fund 17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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. Under the terms of the custody agreement, the Fund receives net
earnings credits based on available cash balances left on deposit.
18
<PAGE>
(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 of 1986, as amended (the "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 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 (the "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, 1999 was approximately $24,900, with a related weighted average annualized
interest rate of 5.22%.
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
$7,842 during the period ended April 30, 1999 from commissions earned on sales
of the Fund's shares.
The Fund 19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(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. During the period ended April 30,
1999, Class B and Class C shares were charged $172,580 and $2,433, respectively,
pursuant to the 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, 1999, Class A, Class B and Class C
shares were charged $225,645, $57,527 and $811, 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, 1999, the Fund was charged $55,626 pursuant to the transfer
agency agreement.
The Fund compensates Mellon under a custody agreement for providing custodial
services for the Fund. During the period ended April 30, 1999, the Fund was
charged $11,552 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.
20
<PAGE>
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures, during the period ended
April 30, 1999, amounted to $137,397,637 and $155,909,641, 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. At April 30, 1999, there were no open forward currency exchange
contracts.
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
The Fund 21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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, 1999, there were no financial
futures contracts outstanding.
(b) At April 30, 1999, accumulated net unrealized appreciation on investments
was $41,362,243, consisting of $45,639,296 gross unrealized appreciation and
$4,277,053 gross unrealized depreciation.
At April 30, 1999, 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).
22
<PAGE>
For More Information
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call your financial representative or
1-800-554-4611
By mail Write to:
The Dreyfus Premier
Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
(C) 1999 Dreyfus Service Corporation 037/632SA994
Dreyfus Premier
International
Value Fund
SEMIANNUAL REPORT
April 30, 1999
(R) [Dreyfus Logo]
<PAGE>
Year 2000 Issues
(Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- -----------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
15 Financial Highlights
19 Notes to Financial Statements
FOR MORE INFORMATION
- -----------------------------------------------------------
Back Cover
<PAGE>
Dreyfus Premier The Fund
International Value Fund
LETTER FROM THE PRESIDENT
- -------------------------
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier
International Value Fund, covering the six-month period from November 1, 1998
through April 30, 1999. Inside, you'll find valuable information about how the
Fund was managed, including a discussion with the Fund's portfolio manager,
Sandor Cseh.
Many regional economies showed marked improvement after many of the world's
central banks lowered key short-term interest rates to stimulate economic
growth. Less restrictive monetary policies especially helped prevent further
economic deterioration in Japan, Asia, Latin America and Eastern Europe, where
the worst of the global currency and credit crisis appears to be behind us. In
contrast, some Western European economies slowed moderately after the formation
of the European Monetary Union (EMU) and the debut of a new currency, the euro.
These economic conditions produced mixed results for international stocks. Stock
markets in Japan, Asia and Latin America began to recover over the past six
months, showing their first signs of real strength in over a year. European
markets, on the other hand, provided disparate performance. For example, while
Spain and the United Kingdom experienced higher stock prices on average, others,
such as Germany, declined.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in the Dreyfus Premier International Value Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
- ------------------------------
Sandor Cseh, Portfolio Manager
How did Dreyfus Premier International Value Fund perform relative to its
benchmark?
The Fund produced a total return of 14.31% for Class A shares, 13.88% for Class
B shares, 13.86% for Class C shares and 14.58% for Class R shares, each for the
six-month period ended April 30, 1999.1 This compares with a 15.28% return for
the Fund's benchmark, the Morgan Stanley Capital International Europe,
Australasia, Far East ("MSCI-EAFE") Index for the same period.2
As was true in the United States, investor preference for growth-oriented stocks
over value-oriented stocks extended into international markets. As was the case
with the Standard & Poor's 500 Composite Stock Price Index in the U.S., a small
number of large capitalization, high priced, growth issues drove the overall
performance of our international benchmark, the MSCI-EAFE Index. Most
diversified international portfolios trailed the averages if they included
securities other than the MSCI-EAFE's very few top performers.
What is the Fund's investment approach?
Dreyfus Premier International Value Fund invests in an internationally
diversified portfolio of value stocks: stocks selling at attractive prices
relative to their perceived intrinsic worth based on historical measures. These
measures typically include price-to-earnings, price-to-book value and
price-to-cash flow ratios. Discrepancies from historical norms are often the
result of short-term factors that affect market perception: a stock falls out of
general market favor, creating what the Fund perceives to be a buying
opportunity. The Fund purchases the security at the depressed price, hoping to
profit when perceptions change and the price reverts to a historical norm.
In implementing the value approach, the Fund employs a multistep process. First,
we choose how much to invest in each of the countries
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
represented in the MSCI-EAFE Index. We make a baseline determination by the
size of a country's gross domestic product and the capitalization of its stock
market compared to the world as a whole. We can invest more or less than this
proportion, based on our outlook for a country's economy and the number of
value opportunities we identify in a specific country's market.
Second, we select individual securities using a process that blends quantitative
and qualitative analysis. After an initial computer screen eliminates
approximately 90% of purchase candidates, analysts perform extensive fundamental
research and conduct on-site visits to determine which securities we will buy
for the portfolio. Stocks in the portfolio typically are sold when they reach a
price at which we no longer consider them attractive values, or when our
analysts determine that anticipated change in market sentiment is no longer
likely.
What factors influenced the Fund's performance?
Investor preference for growth stocks, combined with our strict value-oriented
approach, precluded our purchase of many top-performing stocks. In three of our
most important markets--Germany, France and the United Kingdom--the five largest
stocks in each market accounted for more than 50% of the increase in broad
market indices. Of those 15 stocks, few could be considered value-oriented
issues. But bearing that fundamental constraint in mind, performance was
enhanced by our choices to invest in specific markets and stocks.
The long-depressed Japanese markets, where the Fund had over 20% of its assets
invested, presented significant value opportunities. As investors grew more
confident that bank recapitalizations and corporate restructurings were
beginning to have positive economic effects, the Japanese market rose.
Individual value stocks that had been depressed were seen by both the
marketplace and by acquisition-minded corporations as being attractively
priced.
4
<PAGE>
In Europe, several of the companies we held were acquired by other companies at
significant premiums over market prices. In addition, a number of our portfolio
holdings rose in price due to takeover rumors.
What is the Fund's current strategy?
Of course, the Fund will maintain its value style in the international
marketplace. The U.S. market has outperformed international markets for a long
enough period of time that, in our opinion, it is now quite expensive relative
to the rest of the world. Price/earnings ratios of U.S. stocks are high not only
in comparison to historical norms, but to the rest of the world as well. Europe
continues to look attractive as companies increase efficiency and productivity
through consolidations and restructurings to compete in what is emerging as a
single economic market. Japan shows signs of having finally turned the corner,
addressing its fundamental economic and financial problems and positioning
itself to resume soundly based growth.
In addition, growth-oriented stocks have outperformed value securities for so
long that the differences in valuations between these two types of investments
are very wide compared to historical norms. It is, of course, impossible to
predict when, or even if, trends will turn. But we continue to believe that,
over time, the core, dual disciplines of international and value investing can
benefit long-term equity investors.
May 13, 1999
1 Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum applicable sales charge in
the case of Class A, B or C shares. Had these sales charges been included,
returns would have been lower.
2 SOURCE: LIPPER ANALYTICAL SERVICES, INC.--The Morgan Stanley Capital
International Europe, Australasia, Far East ("MSCI-EAFE") Index is an
unmanaged index composed of a sample of companies Europe, Australasia, Far
East ("MSCI-EAFE") 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. Unlike the Fund, the Index is not focused
on value stocks principally.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Common Stocks--94.5% Shares Value ($)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Argentina--.5%
YPF Sociedad Anonima, ADS 700 29,400
Australia--1.9%
Australia & New Zealand Banking 8,644 68,465
Goodman Fielder 18,000 17,389
Pacific Dunlop 19,695 34,535
120,389
Austria--.5%
EVN 200 29,920
Denmark--.7%
Jyske Bank 500 42,737
Finland--.9%
Kesko Oyj 3,600 56,799
France--10.8%
ALSTHOM, ADS 1,050 33,863
Air Liquide 397 61,376
Bongrain 110 42,643
Compagnie Generale des Etablissements Michelin, Cl. B 1,056 48,027
Dexia France 370 51,913
Elf Aquitaine, ADS 1,000 78,125
Guyenne et Gascogne 120 55,275
PSA Peugeot Citreon 430 71,486
Pechiney, Cl. A 1,000 42,356
Societe Generale, Cl. A 400 71,751
Thompson CSF 1,900 62,369
Usinor 4,000 62,009
681,193
Germany--11.3%
Bayer 2,200 93,649
Deutsche Bank 1,000 58,240
Deutsche Bank (New) 111 6,300
Deutsche Lufthansa 1,900 44,061
GEA 1,900 50,298
Hoechst 1,400 66,488
KM Europa Metal 400 23,275
Merck KGaA 1,800 60,993
Siemens 1,300 96,360
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Germany (continued)
Tarkett Sommer 1,000 10,568
Veba 1,900 104,418
Viag 110 56,026
Volkswagen 530 37,658
708,334
Greece--.5%
Hellenic Telecommunication Organization, ADS 2,900 a 34,619
Hong Kong--2.1%
HSBC 508 18,876
Henderson Investment 55,000 43,641
HongKong Electric 22,300 71,065
133,582
Italy--3.8%
Banca Popolare di Bergamo Credito Varesino 1,800 45,382
ENI, ADS 1,400 91,525
San Paolo-IMI, ADS 883 a 26,600
Telecom Italia 13,690 73,656
237,163
Japan--23.8%
Aiful 600 49,104
Canon 4,000 97,839
Credit Saison 3,000 61,317
Dai-Tokyo Fire & Marine Insurance 11,000 40,266
Fuji Machine Manufacturing 1,000 35,684
Honda Motor 1,000 44,061
Ito-Yokado 1,000 61,401
Kao 1,000 25,381
Mabuchi Motor 1,000 77,651
Marubeni 22,000 50,863
Matsumotokiyoshi 2,000 87,619
Minebea 7,000 67,725
Mitsubishi Heavy Industries 9,000 39,429
Murata Manufacturing 1,000 57,212
NAMCO 2,000 45,234
Nichei 900 78,028
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Japan (continued)
Nishimatsu Construction 6,000 34,880
Rinnai 2,800 58,988
Rohm 1,000 120,624
Sankyo 2,000 41,967
Sankyo Company 2,200 76,294
Sekisui Chemical 6,000 40,107
Sony 900 84,059
Toyota Motor 2,000 56,793
Yamanouchi Pharmaceutical 2,000 63,327
1,495,853
Netherlands--7.7%
ABN-AMRO 3,475 82,977
Akzo Nobel, ADS 1,300 58,013
Buhrmann 2,275 41,796
Hollandsche Beton Groep 2,676 38,112
Hunter Douglas 2,114 81,706
KPN, ADS 1,319 56,552
Koninklijke (Royal) Philips Electronics, ADR 900 76,838
Stork 2,216 47,400
483,394
New Zealand--.7%
Flecther Challenge Paper 48,277 45,108
Norway--.5%
Orkla, Cl. B 2,200 32,314
Peru--.5%
Telefonica del Peru, ADS 2,300 34,644
Portugal--1.1%
Banco Pinto & Sotto Mayor 1,832 34,239
Portugal Telecom 800 33,419
67,658
Singapore--1.2%
Development Bank of Singapore 7,200 76,415
South Korea--.8%
Korea Electric Power, ADR 2,000 33,000
Pohang Iron & Steel, ADR 700 18,025
51,025
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Spain--4.6%
Argentaria, ADS 900 41,961
Banco Popular Espanol 800 56,757
Endesa 2,700 60,154
Gas y Electridad 700 57,816
Repsol, ADS 4,300 70,950
287,638
Sweden--.9%
Autoliv 1,550 54,003
Switzerland--4.3%
Barry Callebaut 271 43,922
Forbo 165 68,750
Sulzer 95 60,404
Swisscom 60 a 22,047
UBS 230 78,176
273,299
United Kingdom--15.4%
BOC Group 5,384 85,416
Barclays 1,500 47,642
British Airways 4,402 34,883
Bunzl 18,500 79,477
Laird Group 11,000 54,778
Medeva 9,900 18,478
Morgan Crucible 13,311 60,611
PowerGen 7,305 80,161
Rexam 15,000 59,131
Rio Tinto 4,730 82,613
Royal & Sun Alliance Insurance Group 9,252 79,791
Royal Bank of Scotland 3,000 70,764
Safeway 15,923 66,292
Storehouse 22,992 53,457
Tomkins 21,469 91,281
964,775
Total Common Stocks
(cost $5,800,334) 5,940,262
</TABLE>
The Fund 9
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Preferred Stocks--.6% Shares Value ($)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Germany:
Hugo Boss 10 14,242
Rheinmetall 1,200 23,444
Total Preferred Stocks
(cost $44,070) 37,686
- -----------------------------------------------------------------------------------------------
Total Investments (cost $5,844,404) 95.1% 5,977,948
Cash and Receivables (Net) 4.9% 305,222
Net Assets 100.0% 6,283,170
</TABLE>
a Non-income producing.
See notes to financial statements.
10
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Cost Value
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--See Statement of Investments 5,844,404 5,977,948
Cash 96,574
Cash denominated in foreign currencies 159,955 159,823
Receivable for investment securities sold 36,936
Dividends receivable 22,580
Prepaid expenses 44,177
6,338,038
- ------------------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation and affiliates 734
Due to Distributor 666
Payable for investment securities purchased 32,951
Accrued expenses 20,517
54,868
- ------------------------------------------------------------------------------------------
Net Assets ($) 6,283,170
- ------------------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 6,063,929
Accumulated distributions in excess of investment income--net (21,796)
Accumulated net realized gain (loss) on investments 107,901
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 133,136
- ------------------------------------------------------------------------------------------
Net Assets ($) 6,283,170
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Class B Class C Class R
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 3,701,415 630,301 513,523 1,437,931
Shares Outstanding 288,865 49,396 40,228 112,111
Net Asset Value Per Share ($) 12.81 12.76 12.77 12.83
</TABLE>
See notes to financial statements.
The Fund 11
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Investment Income ($)
- -----------------------------------------------------------------------------------------
<S> <C>
Income:
Cash dividends (net of $6,268 foreign taxes withheld at source) 47,991
Interest 5,673
Total Income 53,664
Expenses:
Management fee--Note 3(a) 28,285
Registration fees 45,312
Custodian fees 10,611
Auditing fees 6,250
Shareholder servicing costs--Note 3(c) 5,906
Distribution fees--Note 3(b) 3,724
Prospectus and shareholders' reports 3,230
Legal fees 847
Trustees' fees and expenses--Note 3(d) 664
Loan Commitment fees--Note 2 6
Miscellaneous 2,648
Total Expenses 107,483
Less--expense reimbursement due to undertaking--Note 3(a) (48,804)
Net Expenses 58,679
Investment (Loss) (5,015)
- -----------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4:
Net realized gain (loss) on investments and foreign currency transactions 111,672
Net realized gain (loss) on forward currency exchange contracts (9,946)
Net Realized Gain (Loss) 101,726
Net unrealized appreciation (depreciation) on investments and foreign
currency transactions 654,760
Net Realized and Unrealized Gain (Loss) on Investments 756,486
Net Increase in Net Assets Resulting From Operations 751,471
</TABLE>
See notes to financial statements.
12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998*
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income (loss)--net (5,015) 14,818
Net realized gain (loss) on investments 101,726 29,209
Net unrealized appreciation (depreciation) on investments 654,760 (521,624)
Net Increase (Decrease) in Net Assets
Resulting from Operations 751,471 (477,597)
- ---------------------------------------------------------------------------------------------
Dividends to Shareholders From ($):
Investment income--net:
Class A shares (19,976) --
Class B shares (858) --
Class C shares (720) --
Class R shares (10,045) --
Net realized gain on investments:
Class A shares (13,698) --
Class B shares (2,058) --
Class C shares (1,920) --
Class R shares (5,358) --
Total Dividends (54,633) --
- ---------------------------------------------------------------------------------------------
Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Class A shares 28,100 3,607,230
Class B shares 76,540 534,619
Class C shares 3,008 500,000
Class R shares 840,300 500,000
Dividends reinvested:
Class A shares 33,571 --
Class B shares 2,809 --
Class C shares 2,640 --
Class R shares 5,520 --
Cost of shares redeemed:
Class A shares (2,755) (64,517)
Class B shares (10) --
Class C shares (3,126) --
Increase (Decrease) in Net Assets from
Beneficial InterestTransactions 986,597 5,077,332
Total Increase (Decrease) in Net Assets 1,683,435 4,599,735
- ---------------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 4,599,735 --
End of Period 6,283,170 4,599,735
Undistributed investment income (distribution in excess
of investment income)--net (21,796) 14,818
</TABLE>
* From March 31, 1998 (commencement of operations) to October 31, 1998.
See notes to financial statements.
The Fund 13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998*
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Capital Share Transactions:
Class A
Shares sold 2,340 288,881
Shares issued for dividends reinvested 2,884 --
Shares redeemed (231) (5,009)
Net Increase (Decrease) in Shares Outstanding 4,993 283,872
- ----------------------------------------------------------------------------------------------
Class B
Shares sold 6,277 42,878
Shares issued for dividends reinvested 242 --
Shares redeemed (1) --
Net Increase (Decrease) in Shares Outstanding 6,518 42,878
- ----------------------------------------------------------------------------------------------
Class C
Shares sold 260 40,000
Shares issued for dividends reinvested 227 --
Shares redeemed (259) --
Net Increase (Decrease) in Shares Outstanding 228 40,000
- ----------------------------------------------------------------------------------------------
Class R
Shares sold 71,637 40,000
Shares issued for dividends reinvested 474 --
Net Increase (Decrease) in Shares Outstanding 72,111 40,000
</TABLE>
* From March 31, 1998 (commencement of operations) to October 31, 1998.
See notes to financial statements.
14
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single Fund share. "Total return" shows how much your investment in the Fund
would have increased (or decreased) during each period, assuming you had
reinvested all dividends and distributions. These figures have been derived from
the Fund's financial statements.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class A Shares (Unaudited) October 31, 1998a
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data($):
Net asset value, beginning of period 11.32 12.50
Investment Operations:
Investment income (loss)--net (.01) .05
Net realized and unrealized gain (loss) on investments 1.62 (1.23)
Total from Investment Operations 1.61 (1.18)
Distributions:
Dividends from investment income--net (.07) --
Dividends from net realized gain on investments (.05) --
Total Distributions (.12) --
Net asset value, end of period 12.81 11.32
- --------------------------------------------------------------------------------------------
Total Return (%)b,c 14.31 (9.44)
- --------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsc .99 1.19
Ratio of net investment income (loss) to average net assetsc (.91) .39
Decrease reflected in above expense ratios due to
undertakings by the Managerc .86 .92
Portfolio Turnover Ratec 19.90 17.71
Net Assets, end of period ($ x 1,000) 3,701 3,213
</TABLE>
a From March 31, 1998 (commencement of operations) to October 31, 1998.
b Exclusive of sales load.
c Not annualized.
See notes to financial statements.
The Fund 15
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class B Shares (Unaudited) October 31, 1998a
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data($):
Net asset value, beginning of period 11.27 12.50
Investment Operations:
Investment (loss)--net (.06) (.01)
Net realized and unrealized gain (loss) on investments 1.62 (1.22)
Total from Investment Operations 1.56 (1.23)
Distributions:
Dividends from investment income--net (.02) --
Dividends from net realized gain on investments (.05) --
Total Distributions (.07) --
Net asset value, end of period 12.76 11.27
- --------------------------------------------------------------------------------------------
Total Return (%)b,c 13.88 (9.84)
- --------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsc 1.37 1.64
Ratio of net investment (loss) to average net assetsc (1.27) (.07)
Decrease reflected in above expense ratios due to
undertakings by the Managerc .85 .92
Portfolio Turnover Ratec 19.90 17.71
Net Assets, end of period ($ x 1,000) 630 483
</TABLE>
a From March 31, 1998 (commencement of operations) to October 31, 1998.
b Exclusive of sales load.
c Not annualized.
See notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class C Shares (Unaudited) October 31, 1998a
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data($):
Net asset value, beginning of period 11.27 12.50
Investment Operations:
Investment (loss)--net (.05) (.01)
Net realized and unrealized gain (loss) on investments 1.62 (1.22)
Total from Investment Operations 1.57 (1.23)
Distributions:
Dividends from investment income--net (.02) --
Dividends from net realized gain on investments (.05) --
Total Distributions (.07) --
Net asset value, end of period 12.77 11.27
- --------------------------------------------------------------------------------------------
Total Return (%)b,c 13.86 (9.84)
- --------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsc 1.36 1.64
Ratio of net investment (loss) to average net assetsc (1.28) (.06)
Decrease reflected in above expense ratios due to
undertakings by the Managerc .86 .92
Portfolio Turnover Ratec 19.90 17.71
Net Assets, end of period ($ x 1,000) 514 451
</TABLE>
a From March 31, 1998 (commencement of operations) to October 31, 1998.
b Exclusive of sales load.
c Not annualized.
See notes to financial statements.
The Fund 17
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class R Shares (Unaudited) October 31, 1998a
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data($):
Net asset value, beginning of period 11.33 12.50
Investment Operations:
Investment income (loss)--net (.03) .06
Net realized and unrealized gain (loss) on investments 1.67 (1.23)
Total from Investment Operations 1.64 (1.17)
Distributions:
Dividends from investment income--net (.09) --
Dividends from net realized gain on investments (.05) --
Total Distributions (.14) --
Net asset value, end of period 12.83 11.33
- --------------------------------------------------------------------------------------------
Total Return (%)b 14.58 (9.36)
- --------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsb .88 1.04
Ratio of net investment income (loss) to average net assetsb (.79) .53
Decrease reflected in above expense ratios due to
undertakings by the Managerb .86 .92
Portfolio Turnover Rateb 19.90 17.71
Net Assets, end of period ($ x 1,000) 1,438 453
</TABLE>
a From March 31, 1998 (commencement of operations) to October 31, 1998.
b Not annualized.
See notes to financial statements.
18
<PAGE>
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, as amended (the "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 (the "Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
which is a wholly-owned subsidiary of Mellon Bank Corporation.
As of April 30, 1999, MBC Investment Corp., an indirect subsidiary of Mellon
Bank Corporation, held the following shares:
Class A 282,838 Class C 40,228
Class B 40,234 Class R 40,474
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 19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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 dif ference 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.
20
<PAGE>
(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. Under the terms of the custody agreement, the Fund received net
earnings credits of $248 during the period ended April 30, 1999 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(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 of 1986, as amended (the "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 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 (the "Facility") 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. During the period ended April
30, 1999, the Fund did not borrow under the Facility.
The Fund 21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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 1% of the value of the Fund's average daily net
assets and is payable monthly. The Manager had undertaken from November 1, 1998
through April 30, 1999, to reimburse such excess expenses of the Fund to the
extent that the Fund's aggregate annual expenses, excluding 12b-1 distribution
plan fees, shareholder service plan fees, taxes, brokerage, interest on
borrowings and extraordinary expenses, exceeded an annual rate of 1.75% of the
value of the Fund's average daily net assets. The expense reimbursement,
pursuant to the undertaking, amounted to $48,804 during the period ended April
30, 1999.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained
$93 during the period ended April 30, 1999 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, 1999, Class B and Class C shares were charged $1,960 and $1,764,
respectively, pursuant to the 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.
22
<PAGE>
During the period ended April 30, 1999, Class A, Class B and Class C
shares were charged $4,214, $653 and $588, 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, 1999, the Fund was charged $451 pursuant to the transfer agency
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 and forward currency exchange contracts, during
the period ended April 30, 1999, amounted to $1,944,557 and $1,058,756,
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
The Fund 23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
counter party nonperformance on these forward currency exchange contracts which
is typically limited to the unrealized gain on each open contract. At April 30,
1999, there were open forward currency exchange contracts.
(b) At April 30, 1999, accumulated net unrealized appreciation on investments
was $133,544, consisting of $547,783 gross unrealized appreciation and $414,239
gross unrealized depreciation.
At April 30, 1999, 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).
24
<PAGE>
The Fund 25
<PAGE>
For More Information
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call your financial representative or
1-800-554-4611
By mail Write to:
The Dreyfus Premier
Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
(C) 1999 Dreyfus Service Corporation 173/147SA994
