DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Fellow Shareholder:
It is a pleasure to have this opportunity to communicate with my fellow
shareholders of the Dreyfus Premier Value Fund.
This letter accompanies the annual report of the Dreyfus Premier Value Fund
for the 12-month period ended October 31, 1998. The total returns for the Fund,
and for its benchmark indices for this period, are shown below:
Total Return*
____________
Class A Shares 1.53%
Class B Shares 0.75%
Class C Shares 0.65%
Class R Shares 0.77%
Standard & Poor's 500 Composite Stock Price Index** 22.01%
Wilshire Large Company Value Index*** 12.40%
As always, the concentrated nature of the Fund, holding approximately 50
securities, will make it more volatile than the diversified indices referred to
above which are composed of 500 and 750 stocks, respectively. During most
periods, therefore, the performance of the Fund will be likely to differ
significantly from these indices.
Value stocks underperformed growth stocks during the period. The margin was
among the widest in memory. Any value manager who remained true to his or her
discipline could not hope to have matched the returns of the S&P 500 Index over
the past year. Your Fund remained true to its value discipline, and should be
considered a pure value fund, according to our definition of value. There will
be periods, the past year for example, when value stocks underperform the S&P
500 Index, and even when stocks conforming to our particular definition of value
underperform certain value stock indices. Regardless, the Fund provides your
investment portfolio with the benefits of pure value stock exposure.
The performance of the S&P 500 Index was largely driven by a relatively few
so-called "mega cap" growth stocks or the very largest domestically traded
companies. The S& P 500 Index and many of its major security components carry
valuations well above those of any historic period by almost any financial
measure, according to our calculations. This concentrated overvaluation, in our
opinion, is reminiscent of the early 1970s "nifty fifty" stocks, or oil stocks
in the early 1980s. Both of those markets ended with quick and severe
corrections of the overvalued securities. No one can predict such an occurrence
today, but many market participants may conclude that the risk level of the S&P
500 Index and many of its major security components is high by historic
standards. Regardless, at least for the time being, positive price momentum in
this Index and in many of these mega cap stocks has continued, despite the
recent stock market correction and subsequent recovery.
As for your Fund, most of the performance shortfall relative to the Wilshire
Value Index occurred during the fourth quarter of 1997, as the portfolio was
positioned for strong worldwide economic growth when the Asian economic problems
surfaced. Several holdings during these months were among the poorest performing
securities in the Fund for the fiscal year. These securities included electronic
technology companies that have significant business in Asia, transportation
issues which suffered from the possibility of a weakening economy, and several
Latin American companies which were penalized simply because they are emerging
markets. The portfolio was subsequently reworked, and performance relative to
large company value indices on a quarter-by-quarter basis was more competitive.
Our disciplined investment process kept the Fund largely out of what we
considered were overvalued mega cap securities. Unfortunately, many of these
high-priced mega cap securities were the best performing stocks in the market,
restraining the Fund' s relative performance. Quite often, disciplined value
investment processes will underperform when the overall stock market reaches
speculative overvaluation. There is better potential for outperformance as
security prices settle and as economic change occurs. With the stock market
having corrected and with interest rates having fallen, the universe of
securities available within our investment discipline has broadened somewhat to
include a few more of these mega cap names.
Economic Review
The U.S. entered the year with a strong economy and at near full employment,
which during the spring months led the Federal Reserve Board, our central bank,
to contemplate raising short-term interest rates in order to keep growth and
inflation in check. By midyear, however, weak Asian economies slowing U.S.
economic growth had already done the job, so the Fed left rates unchanged. More
recently, stresses in the financial system convinced the Fed to lower interest
rates three times: at the end of September, in mid-October, and in mid-November
A significant influence on the U.S. economy this year was slower growth in the
overall world economy and the evolution of a worldwide financial crisis. Both
events caused a drop in inflation, which helped send interest rates lower. The
fall in inflation and lower interest rates benefited companies that sell to the
consumer, both because more income was left over after inflation to buy goods
and services, and because the cost of debt was reduced. Home mortgages were
refinanced at lower rates, for example, putting more discretionary income in
consumer's pockets.
The negative effect in the U.S. of slower global economies was directed toward
the industrial sector. Corporate profits weakened, especially in sectors
sensitive to Asia such as world-traded commodities (paper producers for example)
and exporters (computer manufacturers for example) . One result of this
industrial weakness was to cool off a U.S. economy that had been growing perhaps
too rapidly.
A financial crisis developed during the midsummer months, primarily in Russia
and Brazil. Panic set in as lenders both recalled outstanding loans and were
reluctant to issue new debt, sharply reducing the economic outlook for these
areas. The effect on European and U.S. companies was to lower their profit
growth expectations with the decline in their export opportunities.
Vigorous steps appear to have been recently taken in attempts to stabilize the
Japanese banks, to design a support package for Brazil, and to generally make
money less expensive to lend. Economic prospects for the major developed
countries will depend on whether foreign financial stresses in the coming months
calm down, as the consensus appears to be currently concluding, or intensify, as
was the fear just weeks ago.
Stock Market Overview
The 12 months ended October 31, 1998 reflected a number of contrasting phases
in the U.S. stock market. There was strength during the early part of the period
as stocks recovered from the Asian-induced sell-off that occurred during the
fourth quarter of 1997. By midsummer, as large company security valuations
neared all-time highs, there was a sharp market decline sparked by the implosion
of the Russian financial markets. The U.S. stock market declined again in late
September due to the collapse of a major U.S. hedge fund. Finally, there was a
strong rally from mid-October until the end of the fiscal year in response to
the Federal Reserve Board' s lowering of short-term interest rates.
Over the 12-month period, investment returns for midsized and small companies
were significantly lower than those for large companies, with the S&P 400 Midcap
Index returning 6.71% and the small company Russell 2000 Index declining -11.84%
. (+) The erosion of expectations for corporate profit growth over the year
contributed to an outperformance by a select few mega cap growth stocks.
Investors had confidence in the more consistent earnings growth from this small
group of stocks that compose the bulk of the S&P 500 Index than for the broader
market. Almost every other capitalization and investment style group lagged far
behind these mega cap growth stocks.
Value Investing and Our Investment Process
To once again summarize our investment philosophy, as value investors, we want
to buy growing companies, but we want to own them at a bargain price. In one
sense, value investing can be a lower risk, more conservative style of equity
investing because the prices of value stocks may decline less in falling
markets, due to their already perceived "underpricing." Of course, they can
underperform if company valuations do not improve as expected.
Our approach to the selection of securities begins and ends with our analysts
who are an integral part of our investment team. Our Dreyfus analysts contribute
their proprietary forecasts on corporate earnings and cash flows to our computer
models, their analysis and opinions to our decision-making process, and their
constant flow of information to our ongoing assessment of owned securities.
We screen the universe of stocks by computer according to two principal
methods. The first computer screen determines value by calculating each
security' s earnings yield (our forecast for earnings divided by the current
security price) which, to justify purchase, should be greater than the yield
available on reasonably long-term U.S. Treasury securities. Being paid more than
this risk-free rate in order to take the risk inherent in equity investing is
central to our value discipline. The second computer screen looks at 19 other
factors that have historically influenced stock returns including various
growth, valuation and leverage measures. We input into this computer model the
current economic and stock market trends, and the computer calculates each
security' s exposure to this environment. The model is an idea generator, and
further detailed fundamental analysis is conducted on each potential holding to
determine its suitability for the Fund. Combining all of this data with our
analysts' in-depth knowledge of the individual companies, we then construct a
portfolio of approximately 50 or so securities. We use similar disciplined
criteria and several other factors to determine when selling a security is in
our shareholders' best interest.
Examples of Our Investment Process
The detailed fundamental analysis, computer modeling and portfolio strategy
that goes into the decision-making process for each security in the Fund is not
possible in this short report. Instead, provided below, are several brief
summaries of some of the better and poorer performing securities in the Fund
during the fiscal year.
Biogen, a biotechnology company, was one of the better performing securities
during the period. Our earnings estimates for the company have been well above
the Wall Street consensus, qualifying this growth stock as a value stock. We
believe that the company's current products and new product pipeline, both near
term and long term, are particularly promising. The security remained a holding
at the end of the period.
Xerox has been expanding its core copier business into the computer printer
business with great initial success. The ability to provide quality service can
be a significant competitive advantage. The security was one of the stronger
performers in the Fund, and was sold when our investment discipline indicated
that it was fully valued relative to the risk-free alternative.
RJR Nabisco Holdings and Philip Morris, both largely tobacco companies, were
poor performers during much of the period. Congress could not agree on tobacco
legislation that we believe would have significantly benefited both the public
good and these securities. The tobacco companies recently resolved many of these
same issues directly with the states, benefiting the securities. While we sold
RJR Nabisco Holdings during the Fund's fiscal year in order to reduce exposure
to the industry, we remained attracted to the unusually inexpensive valuation
and high dividend yield of Philip Morris.
Bankers Trust, a major money center bank, was performing poorly in your Fund.
Almost every financial stock was punished during the summer months when emerging
markets and worldwide bond markets ran into difficulties. We reacted quickly to
reduce exposure to the industry, including the sale of this security.
In almost any Fund there are both strong performing and poor performing
securities. Our job is to maximize the good and minimize the bad, while keeping
risk at tolerable levels. We will not be successful every quarter or every year,
but we work hard to reward our fellow investors over the long term.
Diligent management of your investments is our highest priority. Thank you for
entrusting us with your assets.
Sincerely,
[Timothy M. Ghriskey signature]
Timothy M. Ghriskey
Senior Portfolio Manager
November 16, 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 (5.75%) in
the case of Class A shares, or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B (4.00%) and Class C (1.00%)
shares, which if included would result in lower returns.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The Standard
& Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index of
U.S. stock market performance.
*** SOURCE: WILSHIRE ASSOCIATES, INC. -- The Wilshire Large Company Value Index
is constructed by using a blend of price-to-book and forecast price-to-earnings
ratios. The largest 750 stocks in the Wilshire 5000 are ranked based on a style
score that is 75% price-to-book ratio and 25% forecast P/E. The universe is
divided so that companies that represent half of the total capitalization fall
into growth and the remainder are placed into value. Beginning with the fiscal
year ended October 31, 1998, this Index will be used as the Fund's primary
benchmark.
(+)SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The Standard
& Poor' s MidCap 400 Index is a broad-based index of 400 companies with market
capitalizations generally ranging from $50 million to $10 billion and is a
widely accepted, unmanaged index of overall mid-cap stock market performance.
The Russell 2000 Index is an unmanaged index and a leading barometer of the
overall performance of small company stocks.
<TABLE>
DREYFUS PREMIER VALUE FUND OCTOBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER VALUE
FUND CLASS A SHARES WITH THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
AND THE WILSHIRE LARGE COMPANY VALUE INDEX
Dollars
$63,171
Standard & Poor's 500 Composite Stock Price Index*
$53,598
Wilshire Large Company Value Index**
$39,564
Dreyfus Premier Value Fund (Class A Shares)
* Source: Lipper Analytical Services, Inc.
** Source: Wilshire Associates, Inc.
Average Annual Total Returns
- -----------------------------------------------------------------------------
Class A Shares Class B Shares
_______________________________________________________ _______________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 10/31/98 Sales Charge Sales Charge (5.75%) Period Ended 10/31/98 Redemption Redemption*
_____________________ _______________ ___________________ _______________________ _____________ _____________________
<S> <C> <C> <C> <C> <C>
1 Year 1.53% -4.30% 1 Year 0.75% -2.69%
5 Years 9.44 8.15 5 Years 8.61 8.36
10 Years 12.41 11.74 From Inception (1/15/93) 9.26 9.15
From Inception (10/16/86) 12.65 12.10
Class C Shares Class R Shares
_______________________________________________________ _______________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 10/31/98 Redemption Redemption** Period Ended 10/31/98
_____________________ _______________ ___________________ _______________________
1 Year 0.65% -0.20% 1 Year 0.77%
From Inception (9/1/95) 12.89 12.89 From Inception (9/1/95) 13.54
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of Dreyfus
Premier Value Fund on 10/16/86 (Inception Date) to a $10,000 investment made on
that date in the Standard & Poor's 500 Composite Stock Price Index as well as to
the Wilshire Large Company Value Index which are described below. For
comparative purposes, the value of each Index on 10/31/86 is used as the
beginning value on 10/16/86. All dividends and capital gain distributions are
reinvested. Performance for Class B, Class C and Class R shares will vary from
the performance of Class A shares shown above due to differences in charges and
expenses.
The Fund' s performance shown in the line graph takes into account the maximum
initial sales charge on Class A shares and all other applicable fees and
expenses. The Standard & Poor' s 500 Composite Stock Price Index, the Fund's
primary benchmark index, is a widely accepted, unmanaged index of overall stock
market performance. The Wilshire Large Company Value Index, composed of the
largest 750 stocks in the Wilshire 5000 Index which meet certain statistical
criteria for "value," has been selected as an additional benchmark index for the
Fund because, like the Fund, it focuses on "value" stocks. Since mid-1995, the
Fund has been managed pursuant to a disciplined "value" investment style.
Accordingly, the Wilshire Index is a more representative benchmark with regard
to the Fund' s more recent performance results. The Indices do not take into
account charges, fees and other expenses. Further information relating to Fund
performance, including expense reimbursements, if applicable, is contained in
the Financial Highlights section of the Prospectus and elsewhere in this report
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS OCTOBER 31, 1998
Common Stocks--92.1% Shares Value
- ------------------------------------------------------- ____________ _______________
<S> <C> <C>
Capital Goods--1.8% Waste Management . . . . . . . . . . . . . . . . . . . 92,600 $ 4,178,575
_____________
Consumer Durables--2.0% General Motors . . . . . . . . . . . . . . . . . . . . 70,500 4,445,906
_____________
Consumer Non-durables--4.6% ConAgra . . . . . . . . . . . . . . . . . . . . . . . 160,000 4,870,000
Philip Morris Cos . . . . . . . . . . . . . . . . . . 111,000 5,674,875
_____________
10,544,875
_____________
Consumer Services--2.1% McDonald's . . . . . . . . . . . . . . . . . . . . . . 70,000 4,681,250
_____________
Electronic Technology--13.8% Boeing . . . . . . . . . . . . . . . . . . . . . . . . 120,000 4,500,000
Compaq Computer . . . . . . . . . . . . . . . . . . . 162,000 5,123,250
Intel . . . . . . . . . . . . . . . . . . . . . . . . 60,800 5,422,600
International Business Machines . . . . . . . . . . . 39,800 5,907,812
Perkin-Elmer . . . . . . . . . . . . . . . . . . . . . 71,000 5,986,187
Storage Technology . . . . . . . . . . . . . . . . . . 128,000 (a) 4,280,000
_____________
31,219,849
_____________
Electronics-Instruments--1.8% Raytheon, Cl. B . . . . . . . . . . . . . . . . . . . 68,800 3,994,700
_____________
Energy Minerals--11.8% British Petroleum, A.D.S. . . . . . . . . . . . . . . 60,000 5,306,250
Conoco, Cl. A . . . . . . . . . . . . . . . . . . . . 65,600 (a) 1,631,800
Mobil . . . . . . . . . . . . . . . . . . . . . . . . 71,000 5,373,812
Texaco . . . . . . . . . . . . . . . . . . . . . . . . 83,000 4,922,937
Tosco . . . . . . . . . . . . . . . . . . . . . . . . 168,000 4,714,500
USX-Marathon Group . . . . . . . . . . . . . . . . . . 149,000 4,870,437
_____________
26,819,736
_____________
Finance--23.0% American General . . . . . . . . . . . . . . . . . . . 62,000 4,247,000
Banc One . . . . . . . . . . . . . . . . . . . . . . . 92,340 4,513,117
BankAmerica . . . . . . . . . . . . . . . . . . . . . 73,000 4,192,937
CIGNA . . . . . . . . . . . . . . . . . . . . . . . . 77,400 5,645,362
EXEL, Cl. A . . . . . . . . . . . . . . . . . . . . . 83,600 6,390,175
Everest Reinsurance Holdings . . . . . . . . . . . . . 111,000 3,822,567
Fleet Financial Group . . . . . . . . . . . . . . . . 128,000 5,112,000
National City . . . . . . . . . . . . . . . . . . . . 63,000 4,051,687
Norwest . . . . . . . . . . . . . . . . . . . . . . . 130,000 4,834,375
SunAmerica . . . . . . . . . . . . . . . . . . . . . . 67,000 4,723,500
Torchmark . . . . . . . . . . . . . . . . . . . . . . 105,000 4,593,750
_____________
52,126,470
_____________
Health Technology--7.7% Allergan . . . . . . . . . . . . . . . . . . . . . . . 70,000 4,370,625
Amgen . . . . . . . . . . . . . . . . . . . . . . . . 41,300 (a) 3,244,631
Biogen . . . . . . . . . . . . . . . . . . . . . . . . 63,000 4,378,500
Pharmacia & Upjohn . . . . . . . . . . . . . . . . . . 102,500 5,426,094
_____________
17,419,850
_____________
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ____________ _______________
Non-Energy Minerals--2.1% Aluminum Co. of America . . . . . . . . . . . . . . . 60,000 $ 4,755,000
_____________
Process Industries--3.2% duPont (EI) de Nemours . . . . . . . . . . . . . . . . 72,000 4,140,000
Owens-Illinois . . . . . . . . . . . . . . . . . . . . 105,000 (a) 3,209,062
_____________
7,349,062
_____________
Producer Manufacturing--3.3% General Electric . . . . . . . . . . . . . . . . . . . 85,000 7,437,500
_____________
Retail Trade--1.6% Federated Department Stores . . . . . . . . . . . . . 92,000 (a) 3,536,250
_____________
Utilities--13.3% Ameritech . . . . . . . . . . . . . . . . . . . . . . 105,000 5,663,438
Bell Atlantic . . . . . . . . . . . . . . . . . . . . 100,000 5,312,500
Coastal . . . . . . . . . . . . . . . . . . . . . . . 150,000 5,287,500
MCI WorldCom . . . . . . . . . . . . . . . . . . . . . 88,000 (a) 4,862,000
Niagara Mohawk Power . . . . . . . . . . . . . . . . . 275,000 4,021,875
Texas Utilities . . . . . . . . . . . . . . . . . . . 115,000 5,031,250
_____________
30,178,563
_____________
TOTAL COMMON STOCKS
(cost $182,527,910) . . . . . . . . . . . . . . . $208,687,586
_____________
Principal
Short-Term Investments--5.3% Amount
- ------------------------------------------------------- ___________
U.S. Treasury Bills: 4.83%, 11/27/98 . . . . . . . . . . . . . . . . . . . $ 125,000 $ 124,702
4.11%, 12/31/98 . . . . . . . . . . . . . . . . . . . 18,000 17,879
3.73%, 1/7/99 . . . . . . . . . . . . . . . . . . . . 233,000 231,239
3.73%, 1/14/99 . . . . . . . . . . . . . . . . . . . . 233,000 231,029
3.86%, 1/21/99 . . . . . . . . . . . . . . . . . . . . 4,558,000 4,512,101
4.14%, 1/28/99 . . . . . . . . . . . . . . . . . . . . 7,034,000 (b) 6,962,253
_____________
TOTAL SHORT-TERM INVESTMENTS
(cost $12,086,352) . . . . . . . . . . . . . . . . $ 12,079,203
_____________
TOTAL INVESTMENTS (cost $194,614,262). . . . . . . . . . . . . . . . . . . . . . . . . . . 97.4% $220,766,789
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6% $ 5,996,933
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $226,763,722
_______ _____________
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by custodian in a segregated account as collateral for open
financial futures positions.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF FINANCIAL FUTURES OCTOBER 31, 1998
Market Value Unrealized
Covered Appreciation
Financial Futures Purchased: Contracts by Contracts Expiration at 10/31/98
________ ___________ _________ ____________
<S> <C> <C> <C> <C>
Standard & Poor's 500. . . . . . . . . . . . . . . . . . 35 $9,670,500 December '98 $279,250
_________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998
Cost Value
_____________ ______________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $194,614,262 $220,766,789
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 2,747,312
Receivable for investment securities sold . . . . . . . . 3,384,460
Receivable for futures variation margin--Note 4(a) . . . 76,125
Dividends receivable . . . . . . . . . . . . . . . . . . 290,718
Receivable for shares of Beneficial Interest subscribed . . 5,880
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 23,274
______________
227,294,558
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 175,752
Due to Distributor . . . . . . . . . . . . . . . . . . . 74,581
Payable for shares of Beneficial Interest redeemed . . . 221,674
Accrued expenses and other liabilities . . . . . . . . . 58,829
______________
530,836
______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $226,763,722
______________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $183,215,977
Accumulated undistributed investment income--net . . . . 917,138
Accumulated net realized gain (loss) on investments . . . 16,198,830
Accumulated net unrealized appreciation (depreciation)
on investments (including $279,250 net unrealized
appreciation on financial futures)--Note 4(b) . . . . . 26,431,777
______________
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $226,763,722
______________
NET ASSET VALUE PER SHARE
------------------------------------------------------------
Class A Class B Class C Class R
______________ _______________ _______________ ______________
Net Assets . . . . . . . . . . . . . . . . . . . . . . $178,592,823 $47,512,351 $652,174 $6,374
Shares Outstanding . . . . . . . . . . . . . . . . . . 8,476,880 2,327,760 32,152 305.443
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . $21.07 $20.41 $20.28 $20.87
_______ _______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME: Cash dividends (net of $24,616 foreign taxes
withheld at source) . . . . . . . . . . . . . $ 3,880,202
Interest . . . . . . . . . . . . . . . . . . . . 377,209
_____________
Total Income . . . . . . . . . . . . . . . $ 4,257,411
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . 1,847,539
Shareholder servicing costs--Note 3(c) . . . . . 863,924
Distribution fees--Note 3(b) . . . . . . . . . . 397,966
Registration fees . . . . . . . . . . . . . . . . 50,341
Professional fees . . . . . . . . . . . . . . . . 47,926
Trustees' fees and expenses--Note 3(d) . . . . . 42,774
Custodian fees--Note 3(c) . . . . . . . . . . . . 37,072
Prospectus and shareholders' reports . . . . . . 30,066
Interest expense--Note 2 . . . . . . . . . . . . 4,035
Loan commitment fees--Note 2 . . . . . . . . . . 1,177
Miscellaneous . . . . . . . . . . . . . . . . . . 6,998
_____________
Total Expenses . . . . . . . . . . . . . . 3,329,818
_____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 927,593
_____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $15,204,247
Net realized gain (loss) on financial futures . . (271,301)
Net realized gain (loss) on forward currency
exchange contracts . . . . . . . . . . . . . . 398,145
_____________
Net Realized Gain (Loss) . . . . . . . . . 15,331,091
Net unrealized appreciation (depreciation) on
investments (including $279,250 net
unrealized appreciation on financial futures) . (10,271,824)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 5,059,267
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $ 5,986,860
_____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
October 31, 1998 October 31, 1997
________________ ______________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 927,593 $ 958,184
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 15,331,091 35,912,000
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . (10,271,824) 26,359,300
______________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 5,986,860 63,229,484
______________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (897,158) (1,829,335)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (49,504)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,708) --
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30) (41)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28,342,023) (31,464,545)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,784,711) (6,811,698)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (102,316) (1,027)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (705) (570)
______________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37,128,651) (40,156,720)
______________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358,815,870 95,775,905
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,641,156 5,445,106
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382,394 696,370
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,638 350
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,528,054 31,602,859
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,388,194 6,593,102
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,706 855
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 726 612
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (390,437,238) (147,128,604)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,960,162) (7,718,216)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (288,724) (111,556)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20,056) (272)
______________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . (1,873,442) (14,843,489)
______________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . (33,015,233) 8,229,275
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259,778,955 251,549,680
______________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $226,763,722 $259,778,955
______________ _____________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . $ 917,138 $ 888,441
______________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
________________________________
Year Ended Year Ended
October 31, 1998 October 31, 1997
________________ _______________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,637,744 4,031,189
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 1,312,735 1,525,971
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,963,303) (6,318,700)
___________ ____________
Net Increase (Decrease) in Shares Outstanding . . . . . (12,824) (761,540)
___________ ____________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268,507 233,097
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 361,281 324,304
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (531,471) (341,797)
___________ ____________
Net Increase (Decrease) in Shares Outstanding . . . . . 98,317 215,604
___________ ____________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,550 29,363
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 2,787 42
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,297) (4,570)
___________ ____________
Net Increase (Decrease) in Shares Outstanding . . . . . 7,040 24,835
___________ ____________
Class R
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 982 15
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 34 30
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (907) (13)
___________ ____________
Net Increase (Decrease) in Shares Outstanding . . . . . 109 32
___________ ____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class A Shares
_______________________________________________________
Year Ended October 31,
_______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $24.30 $22.42 $21.59 $19.83 $23.77
_______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .13 .12 .22 .31 .01
Net realized and unrealized gain (loss) on investments . .23 5.40 3.01 2.04 (1.54)
_______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . .36 5.52 3.23 2.35 (1.53)
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.11) (.20) (.31) (.05) --
Dividends in excess of investment income--net . . . . . . -- -- -- -- (.12)
Dividends from net realized gain on investments . . . . . (3.48) (3.44) (2.09) (.54) (2.29)
_______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . (3.59) (3.64) (2.40) (.59) (2.41)
_______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $21.07 $24.30 $22.42 $21.59 $19.83
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . . . . . . 1.53% 27.43% 15.95% 12.43% (6.92%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . 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 . . . . . . . . . . . . . . . . . .00%(2) -- -- .05% .25%
Ratio of net investment income to average net assets . . .54% .51% .94% 1.51% .04%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 159.30% 123.53% 147.64% 244.82% 199.13%
Net Assets, end of period (000's Omitted) . . . . . . . . $178,593 $206,333 $207,388 $208,786 $239,407
- ---------------
(1) Exclusive of sales load.
(2) Amount represents less than .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class B Shares
_______________________________________________________
Year Ended October 31,
_______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
_______ _______ _______ _______ _______
Net asset value, beginning of period . . . . . . . . . . $23.70 $21.92 $21.17 $19.58 $23.62
_______ _______ _______ _______ _______
Investment Operations:
Investment income (loss)--net . . . . . . . . . . . . . . (.04) (.04) .04 .14 (.04)
Net realized and unrealized gain (loss) on investments . .23 5.29 2.96 2.02 (1.62)
_______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . .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 . . . . . (3.48) (3.44) (2.09) (.54) (2.29)
_______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . (3.48) (3.47) (2.25) (.57) (2.38)
_______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . $20.41 $23.70 $21.92 $21.17 $19.58
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . . . . . . .75% 26.55% 15.05% 11.50% (7.58%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . 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%(2) -- -- .05% .24%
Ratio of net investment income (loss) to average net assets . . (.22%) (.27%) .19% .71% (.61%)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 159.30% 123.53% 147.64% 244.82% 199.13%
Net Assets, end of period (000's Omitted) . . . . . . . . $47,512 $52,847 $44,152 $44,365 $40,864
- --------------
(1) Exclusive of sales load.
(2) Amount represents less than .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class C Shares
_____________________________________________
Year Ended October 31,
_____________________________________________
PER SHARE DATA: 1998 1997 1996 1995(1)
______ _______ _______ _______
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $23.67 $21.90 $21.16 $21.21
______ _______ _______ _______
Investment Operations:
Investment income (loss)--net . . . . . . . . . . . . . . . . . . . . . (.05) (.14)(2) .06 (.04)
Net realized and unrealized gain (loss) on investments . . . . . . . . .20 5.35 3.05 (.01)
______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .15 5.21 3.11 (.05)
______ _______ _______ _______
Distributions:
Dividends from investment income (loss) net . . . . . . . . . . . . . . (.06) -- (.28) --
Dividends from net realized gain on investments . . . . . . . . . . . . (3.48) (3.44) (2.09) --
______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (3.54) (3.44) (2.37) --
______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $20.28 $23.67 $21.90 $21.16
______ _______ _______ _______
TOTAL INVESTMENT RETURN(3) . . . . . . . . . . . . . . . . . . . . . . . . .65% 26.38% 15.74% (.24%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 2.08% 2.00% 1.94% .36%(4)
Ratio of net investment income (loss) to average net assets . . . . . . (.35%) (.56%) (.51%) (.18%)(4)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 159.30% 123.53% 147.64% 244.82%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $652 $594 $6 $1
- ---------------
(1) From September 1, 1995 (commencement of initial offering) to October 31, 1995.
(2) Based on average shares outstanding.
(3) Exclusive of sales load.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
Class R Shares
_____________________________________________
Year Ended October 31,
_____________________________________________
PER SHARE DATA: 1998 1997 1996 1995(1)
______ _______ _______ _______
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $24.30 $22.42 $21.60 $21.61
______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .21 .19 .40 --
Net realized and unrealized gain (loss) on investments . . . . . . . . (.01) 5.38 2.87 (.01)
______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .20 5.57 3.27 (.01)
______ _______ _______ _______
Distributions:
Dividends from investment income (loss)--net . . . . . . . . . . . . . (.15) (.25) (.36) --
Dividends from net realized gain on investments . . . . . . . . . . . . (3.48) (3.44) (2.09) --
______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (3.63) (3.69) (2.45) --
______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $20.87 $24.30 $22.42 $21.60
______ _______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . . . . . . . .77% 27.74% 16.17% (.05%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.00% .94% .97% .17%(2)
Ratio of net investment income to average net assets . . . . . . . . . .51% .71% 1.07% --
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 159.30% 123.53% 147.64% 244.82%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $6 $5 $4 $1
- ---------------
(1) From September 1, 1995 (commencement of initial offering) to October 31, 1995.
(2) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier Value Fund (the "Fund") is 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 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 DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
(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
October 31, 1998 was approximately $67,800, with a related weighted average
annualized interest rate of 5.87%.
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 $86,354 during the period ended October 31, 1998 from commissions
earned on sales of the Fund's shares.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares, respectively. During the period ended
October 31, 1998, Class B and Class C shares were charged $393,120 and $4,846,
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 October 31, 1998, Class A, Class B and Class C
shares were charged $483,171, $131,040 and $1,615, respectively, pursuant to the
Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended October 31, 1998, the Fund was charged $169,753 pursuant to the transfer
agency agreement.
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund compensates Mellon under a custody agreement for providing custodial
services for the Fund. During the period ended October 31, 1998, the Fund was
charged $37,072 pursuant to the custody agreement.
(D) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, financial futures and forward currency exchange
contracts, during the period ended October 31, 1998 amounted to $378,760,913 and
$426,321,411, 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 October 31, 1998, 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 (see
Statement of Financial Futures). Investments in financial futures require the
fund to "mark to market" on a daily basis, which reflects the change in the
market value of the contract at the close of each day's trading. Accordingly,
variation margin payments are received or made to reflect daily unrealized gains
or losses. When the contracts are closed, the Fund recognizes a realized gain or
loss. These investments require initial margin deposits with a custodian, which
consist of cash or cash equivalents, up to approximately 10% of the contract
amount. The amount of these deposits is determined by the exchange or Board of
Trade on which the contract is traded and is subject to change. Contracts open
at October 31, 1998 are set forth in the Statement of Financial Futures.
(B) At October 31, 1998, accumulated net unrealized appreciation on
investments and financial futures was $26,431,777, consisting of $28,757,737
gross unrealized appreciation and $2,325,960 gross unrealized depreciation.
At October 31, 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).
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Premier Value Fund
We have audited the accompanying statement of assets and liabilities,
including the statements of investments and financial futures, of Dreyfus
Premier Value Fund (one of the Series constituting Dreyfus Premier Value Equity
Funds) as of October 31, 1998, and the related statement of operations for the
year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
years indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included verification by
examination of securities held by the custodian as of October 31, 1998 and
confirmation of securities not held by the custodian by correspondence with
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Value Fund, at October 31, 1998, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the indicated
years, in conformity with generally accepted accounting principles.
New York, New York
December 7, 1998
DREYFUS PREMIER VALUE FUND
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal tax purposes, the Fund hereby designates $1.455 per share as
long-term capital gain distribution paid on December 10, 1997.
The Fund also designates 14.95% of the ordinary dividends paid during the
fiscal year ended October 31, 1998 as qualifying for the corporate dividends
received deduction. Shareholders will receive notification in January 1999 of
the percentage applicable to the preparation of their 1998 income tax returns.
DREYFUS PREMIER VALUE FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 037/632AR9810
ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
VALUE FUND
- -------------------------------------------------------------------------------
OCTOBER 31, 1998
[dreyfus lion logo]
(reg.tm)
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
Dreyfus Premier International Value Fund began operations March 31, 1998 and
completed its first fiscal year on October 31, 1998. These seven months saw
unusual volatility in world equity markets, as well as in the United States.
Value investing, which is the Fund's designated investment approach, was out of
favor in 1998. Much as in the U.S., the performance of value stocks lagged the
overall markets in Continental Europe and the United Kingdom during the Fund's
reporting period. In Japan, value stocks fared better than the overall market,
but by a lesser margin than last year.
For the seven months of the Fund's operation through October 31, 1998, the
total returns for the Fund's various share classes, and for its benchmark index,
were as follows:
<TABLE>
TOTAL RETURN* INCEPTION DATE
<S> <C> <C>
Class A Shares . . . . . . . . . . . . . . . . . . . . . -9.44% 3/31/98
Class B Shares . . . . . . . . . . . . . . . . . . . . . -9.84% 3/31/98
Class C Shares . . . . . . . . . . . . . . . . . . . . . -9.84% 3/31/98
Class R Shares . . . . . . . . . . . . . . . . . . . . . -9.36% 3/31/98
Morgan Stanley Capital International
Europe, Australasia, Far East (EAFE((reg.tm))) Index** . -4.27%
</TABLE>
Most major stock markets registered negative returns during the reporting
period with the two largest, the United Kingdom and Japan, down 7.4% and 5.2%
respectively. The worst performing markets were in Asia, with Malaysia (where
the Fund was not invested) down 70% and Singapore down 25%. Of the major
markets, only Germany and France managed to provide small positive returns in
U.S. dollars.
The strategy followed by your Fund was to be well diversified by country and
industry sectors. The focus was on stocks which we believe were undervalued
relative to their home markets. Although otherwise broadly diversified, we
steered away from the trouble-plagued banking sector in Japan even though
valuations declined dramatically during recent years. Our exposure in Japan was
heavily weighted toward foreign multinational companies able, in our opinion, to
compete successfully in the world marketplace. These firms were less affected by
the slow recovery in Japan and benefited from the weakness in the Japanese yen
over the reporting period. In terms of country weightings, the Fund was slightly
overweighted in Continental Europe and underweighted in the U.K. Exposure to
emerging markets was limited to less than 2% of the portfolio.
ECONOMIC AND MARKET ENVIRONMENT
Major markets in Europe continued rising during the first half of the year,
but declined sharply in August and September. This decline was global as all
major markets suffered after the sharp runups of recent years. The dollar was
weak during this period, declining 13.5% against the yen and over 10% against
the euro block of currencies. However, against the British pound, the dollar was
basically unchanged. A weak dollar improves the returns from international
investments but the recent market downturn more than offset the benefit.
Stock markets weakened worldwide in August and September with the EAFE Index
declining over 15% from the July peak. Weakness developed even though economic
statistics in the industrialized countries (except for Japan) remained
favorable.
<PAGE>
Among the major concerns for investors today are the following:
*Persistent weak economic conditions in Japan and lack of decisive action by
their politicians. The necessary measures to get the economy moving forward will
be painful, but necessary. The first step for Japan is to get its banking system
in order, but political bickering about who should pay the tab has delayed this
process. We believe that eventually Japan will implement the necessary measures
and the country will recover from its most serious economic downturn since World
War II. The problems in Japan are largely reflected in its stock market. The
Nikkei Index (the most popular measure of stock prices in Japan) closed on
October 30 at 13,564, or 65% below the close of December 31, 1989. During this
same time, major stock markets in Europe and the U.S. have doubled, and some
even tripled.
*Currency turmoil and weak economic conditions in Asia. After years of rapid
economic growth, the "Asian Tigers" fell victim to overexpansion. During the
past year, economic conditions in Asia continued to deteriorate. The situation
is more difficult because Japan, the major economic power in the region, is
struggling with its own economic problems.
The slowdown in Asia and the risk of some of its problems spilling over into
Europe and the U.S. have resulted in increased stock market volatility. However,
the slowdown has also had the beneficial effect of lowering inflationary
pressures. Normally, at this point of the economic cycle in the U.S. and Europe,
we would start to see inflationary pressures and that has not been the case this
time.
*Turmoil in Russia. The economic and political upheaval in Russia rattled the
U.S. and European stock markets. Banks and financials were hard hit due to
concern over loan write-offs. Industrial companies with major investments in
Russia have also been hurt. We believe that the economic impact of the turmoil
in Russia will be limited for the major industrialized countries. Trade with
Russia is still a relatively small part of world economic activity.
On the positive side, economic growth in Continental Europe is still robust
and inflation and interest rates are even lower than in the U.S. Corporate
restructuring, which has largely run its course in the U.S., is still at an
early stage in Europe. The movement toward European monetary union and lowering
of trade barriers will further enhance efficiency and economic progress.
Even in Japan, we are beginning to hear talk of corporate restructuring and
share buybacks. Major Japanese corporations that were satisfied with
single-digit returns on equity in exchange for providing lifetime employment are
beginning to talk about redirecting capital to more profitable businesses and
reducing staff in marginal operations.
PORTFOLIO FOCUS
Our emphasis is value-oriented, and the investment theme is to seek
undervalued securities. The average price-to-earnings ratio of the Fund is 19.0,
compared with 24.9 for the EAFE Index. The Fund' s price-to-book and
price-to-cash flow ratios are also lower. The Fund is now invested in 20
different countries and is well diversified. The investments are concentrated in
major industrialized countries and exposure to emerging markets, as noted above,
is under 2%.
The major hurdle in 1998 was the underperformance of value stocks in
Continental Europe and the U.K. Our country allocation has not changed
significantly over the course of the reporting period, since the Fund's
inception.
Looking ahead, we will continue to search for securities that are temporarily
undervalued and out of favor, but where earnings momentum is improving. The
universe from which we can select is larger than the U.S., and many
opportunities exist. Value stocks after the recent period of underperformance
are even more compelling today.
<PAGE>
Thank you for your continued participation in the Dreyfus Premier
International Value Fund.
Sincerely,
[Sandor Cseh signature logo]
Sandor Cseh
Portfolio Manager
November 16, 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((reg.tm) )) Index is an
unmanaged index composed of a sample of companies representative of the market
structure of European and Pacific Basin countries and include 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.
<PAGE>
<TABLE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND OCTOBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER
INTERNATIONAL VALUE FUND
CLASS A SHARES, CLASS B SHARES, CLASS C SHARES AND CLASS R SHARES AND THE MORGAN
STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (EAFE((reg.tm)))
INDEX
[Exhibit A:
Dollars
$9,573
Morgan Stanley Capital International Europe, Australasia, Far East
(EAFE((reg.tm))) Index*
$9,064
Dreyfus Premier International Value Fund (Class R Shares)
$8,926
Dreyfus Premier International Value Fund (Class C Shares)
$8,655
Dreyfus Premier International Value Fund (Class B Shares)
$8,537
Dreyfus Premier International Value Fund (Class A Shares)
*Source: Lipper Analytical Services, Inc.]
Actual Aggregate Total Returns
- --------------------------------------------------------------------------------
Class A Shares Class B Shares
_______________________________________________________ _______________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 10/31/98 Sales Charge Sales Charge (5.75%) Period Ended 10/31/98 Redemption Redemption*
_____________________ _______________ __________________ _____________________ ____________ __________________
<S> <C> <C> <C> <C> <C>
From Inception (3/31/98) -9.44% -14.63% From Inception (3/31/98) -9.84% -13.45%
Class C Shares Class R Shares
_______________________________________________________ _______________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 10/31/98 Redemption Redemption** Period Ended 10/31/98
_____________________ _______________ __________________ _____________________
From Inception (3/31/98) -9.84% -10.74% From Inception (3/31/98) -9.36%
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Class A, Class
B, Class C and Class R shares of Dreyfus Premier International Value Fund on
3/31/98 (Inception Date) to a $10,000 investment made in the Morgan Stanley
Capital International Europe, Australasia, Far East (EAFE((reg.tm))) Index on
that date. All dividends and capital gain distributions are reinvested.
The Fund' s performance shown in the line graph takes into account the maximum
initial sales charge on Class A shares, the maximum contingent deferred sales
charge on Class B and Class C shares and all other applicable fees and expenses
on all classes. The Morgan Stanley Capital International Europe, Australasia,
Far East (EAFE((reg.tm))) Index, which is the property of Morgan Stanley & Co.
Incorporated, 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 does not take into account
charges, fees and other expenses. Also, unlike the Fund which invests
principally in "value" stocks, the Index is not style-specific. Further
information relating to Fund performance, including expense reimbursements, if
applicable, is contained in the Financial Highlights section of the Prospectus
and elsewhere in this report.
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<PAGE>
<TABLE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS OCTOBER 31, 1998
Common Stocks--93.6% Shares Value
- -------------------------------------------------------
____________ ____________
<S> <C> <C>
Argentina--.8% YPF Sociedad Anonima, ADS. . . . . . . . . . . . . . . 1,300 $ 37,619
____________
Australia--2.2% Australia & New Zealand Banking. . . . . . . . . . . . 7,677 43,847
Boral . . . . . . . . . . . . . . . . . . . . . . . . 16,514 26,801
Pacific Dunlop . . . . . . . . . . . . . . . . . . . . 17,695 31,810
____________
102,458
____________
Denmark--.5% Jyske Bank . . . . . . . . . . . . . . . . . . . . . . 300 24,559
____________
Finland--.8% Kesko Oyj. . . . . . . . . . . . . . . . . . . . . . . 2,500 37,258
____________
France--9.6% ALSTHOM, ADS . . . . . . . . . . . . . . . . . . . . . 1,250 30,781
Air Liquide . . . . . . . . . . . . . . . . . . . . . 347 58,187
Bongrain . . . . . . . . . . . . . . . . . . . . . . . 75 31,701
Compagnie Generale des
Etablissements Michelin, Cl. B . . . . . . . . . . 706 29,141
Dexia France . . . . . . . . . . . . . . . . . . . . . 320 47,239
Elf Aquitaine, ADS . . . . . . . . . . . . . . . . . . 1,100 63,800
Guyenne et Gascogne . . . . . . . . . . . . . . . . . 100 43,673
Pechiney, Cl. A . . . . . . . . . . . . . . . . . . . 600 20,645
Societe Generale, Cl. A . . . . . . . . . . . . . . . 400 52,992
Thompson CSF . . . . . . . . . . . . . . . . . . . . . 1,200 41,745
Usinor . . . . . . . . . . . . . . . . . . . . . . . . 2,000 22,891
____________
442,795
____________
Germany--11.0% Bayer. . . . . . . . . . . . . . . . . . . . . . . . . 1,700 69,142
Deutsche Bank . . . . . . . . . . . . . . . . . . . . 800 49,798
Deutsche Lufthansa . . . . . . . . . . . . . . . . . . 1,900 41,337
GEA . . . . . . . . . . . . . . . . . . . . . . . . . 1,300 35,747
Hoechst . . . . . . . . . . . . . . . . . . . . . . . 1,200 50,184
KM Europa Metal . . . . . . . . . . . . . . . . . . . 300 16,045
Merck KGaA . . . . . . . . . . . . . . . . . . . . . . 1,300 53,424
Siemens . . . . . . . . . . . . . . . . . . . . . . . 1,200 72,230
Tarkett Sommer . . . . . . . . . . . . . . . . . . . . 700 11,634
VEBA . . . . . . . . . . . . . . . . . . . . . . . . . 1,400 78,261
Volkswagen . . . . . . . . . . . . . . . . . . . . . . 380 28,591
____________
506,393
____________
Hong Kong--1.8% HSBC . . . . . . . . . . . . . . . . . . . . . . . . . 500 11,460
Henderson Investment . . . . . . . . . . . . . . . . . 45,000 30,215
HongKong Electric . . . . . . . . . . . . . . . . . . 10,800 39,605
____________
81,280
____________
Italy--3.2% ENI, ADS . . . . . . . . . . . . . . . . . . . . . . . 1,000 60,750
Istituto Mobiliare Italiano, ADS . . . . . . . . . . . 500 23,188
Telecom Italia . . . . . . . . . . . . . . . . . . . . 12,000 60,830
____________
144,768
____________
Japan--26.2% Canon. . . . . . . . . . . . . . . . . . . . . . . . . 3,000 57,001
Credit Saison . . . . . . . . . . . . . . . . . . . . 3,000 70,961
Dai-Tokyo Fire & Marine Insurance . . . . . . . . . . 10,000 33,176
<PAGE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- -------------------------------------------------------
____________ ____________
Japan (continued) Fuji Machine Manufacturing . . . . . . . . . . . . . . 1,000 $ 29,556
Hitachi . . . . . . . . . . . . . . . . . . . . . . . 5,000 25,549
Honda Motor . . . . . . . . . . . . . . . . . . . . . 1,000 30,159
Ito-Yokado . . . . . . . . . . . . . . . . . . . . . . 2,000 117,191
Kao . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 61,008
Mabuchi Motor . . . . . . . . . . . . . . . . . . . . 1,000 65,489
Marubeni . . . . . . . . . . . . . . . . . . . . . . . 15,000 27,660
Matsumotokiyoshi . . . . . . . . . . . . . . . . . . . 1,000 37,915
Minebea . . . . . . . . . . . . . . . . . . . . . . . 6,000 56,614
Mitsubishi Heavy Industries . . . . . . . . . . . . . 8,000 31,021
Murata Manufacturing . . . . . . . . . . . . . . . . . 1,000 33,865
NAMCO . . . . . . . . . . . . . . . . . . . . . . . . 1,000 22,361
NTT Mobile Communication Network . . . . . . . . . . . 1 36,277
Nichei . . . . . . . . . . . . . . . . . . . . . . . . 700 56,820
Nishimatsu Construction . . . . . . . . . . . . . . . 5,000 25,851
Rinnai . . . . . . . . . . . . . . . . . . . . . . . . 2,500 45,024
Rohm . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 88,755
Sankyo . . . . . . . . . . . . . . . . . . . . . . . . 2,000 34,296
Sekisui Chemical . . . . . . . . . . . . . . . . . . . 5,000 27,359
Sony . . . . . . . . . . . . . . . . . . . . . . . . . 800 51,012
Toshiba . . . . . . . . . . . . . . . . . . . . . . . 7,000 32,994
Toyota Motor . . . . . . . . . . . . . . . . . . . . . 2,000 48,255
Yamanouchi Pharmaceutical . . . . . . . . . . . . . . 2,000 57,562
____________
1,203,731
____________
Netherlands--7.2% ABN-AMRO . . . . . . . . . . . . . . . . . . . . . . . 2,875 53,923
Akzo Nobel, ADS . . . . . . . . . . . . . . . . . . . 1,200 47,400
Buhrmann . . . . . . . . . . . . . . . . . . . . . . . 1,600 28,723
Hollandsche Beton Group . . . . . . . . . . . . . . . 2,376 32,086
Hunter Douglas . . . . . . . . . . . . . . . . . . . . 1,214 43,587
KPN, ADS . . . . . . . . . . . . . . . . . . . . . . . 1,319 51,936
Koninklijke (Royal) Philips Electronics, ADR . . . . . 700 38,413
Stork . . . . . . . . . . . . . . . . . . . . . . . . 700 17,480
TNT Post, ADR . . . . . . . . . . . . . . . . . . . . 715 19,037
____________
332,585
____________
New Zealand--.3% Flecther Challenge Paper . . . . . . . . . . . . . . . 17,954 11,399
____________
Norway--.6% Fred Olsen Energy. . . . . . . . . . . . . . . . . . . 2,000 (a) 18,606
Orkla, Cl. B . . . . . . . . . . . . . . . . . . . . . 600 9,029
____________
27,635
____________
Peru--.3% Telefonica del Peru, ADS . . . . . . . . . . . . . . . 1,000 13,000
____________
Portugal--.5% Banco Pinto & Sotto Mayor. . . . . . . . . . . . . . . 1,232 23,498
____________
Singapore--1.0% Development Bank of Singapore. . . . . . . . . . . . . 7,000 44,006
____________
Spain--6.2% Banco Popular Espanol. . . . . . . . . . . . . . . . . 300 18,550
Corporation Bancaria de Espana, ADS . . . . . . . . . 1,100 48,125
Endesa . . . . . . . . . . . . . . . . . . . . . . . . 3,200 80,739
<PAGE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- -------------------------------------------------------
____________ ____________
Spain (continued) Gas y Electridad . . . . . . . . . . . . . . . . . . . 700 $ 59,701
Repsol, ADS . . . . . . . . . . . . . . . . . . . . . 1,600 80,000
____________
287,115
____________
Sweden--1.7% Autoliv. . . . . . . . . . . . . . . . . . . . . . . . 1,800 60,158
Scania, Cl. A . . . . . . . . . . . . . . . . . . . . 900 16,081
____________
76,239
____________
Switzerland--4.4% Barry Callebaut. . . . . . . . . . . . . . . . . . . . 111 24,895
Forbo . . . . . . . . . . . . . . . . . . . . . . . . 100 41,451
Sulzer . . . . . . . . . . . . . . . . . . . . . . . . 80 46,188
Swisscom . . . . . . . . . . . . . . . . . . . . . . . 100 (a) 33,975
UBS . . . . . . . . . . . . . . . . . . . . . . . . . 200 54,996
____________
201,505
____________
United Kingdom--13.8% BTR. . . . . . . . . . . . . . . . . . . . . . . . . . 16,250 28,427
British Airways . . . . . . . . . . . . . . . . . . . 1,260 9,154
British Airways, ADS . . . . . . . . . . . . . . . . . 270 20,419
Bunzl . . . . . . . . . . . . . . . . . . . . . . . . 13,000 59,846
Laird Group . . . . . . . . . . . . . . . . . . . . . 7,000 16,640
LucasVarity . . . . . . . . . . . . . . . . . . . . . 10,601 36,202
Medeva . . . . . . . . . . . . . . . . . . . . . . . . 9,000 18,230
PowerGen . . . . . . . . . . . . . . . . . . . . . . . 5,641 79,794
Rio Tinto . . . . . . . . . . . . . . . . . . . . . . 4,300 52,187
Royal & Sun Alliance Insurance Group . . . . . . . . . 6,500 59,519
Safeway . . . . . . . . . . . . . . . . . . . . . . . 11,281 56,653
Stakis . . . . . . . . . . . . . . . . . . . . . . . . 20,000 32,810
Standard Chartered . . . . . . . . . . . . . . . . . . 5,000 53,777
Storehouse . . . . . . . . . . . . . . . . . . . . . . 15,342 44,944
Tomkins . . . . . . . . . . . . . . . . . . . . . . . 14,517 67,194
____________
635,796
____________
United States--1.5% Pharmacia & Upjohn . . . . . . . . . . . . . . . . . . 1,300 68,819
____________
TOTAL COMMON STOCKS
(cost $4,823,767) . . . . . . . . . . . . . . . . $ 4,302,458
____________
Preferred Stocks--.5%
- -------------------------------------------------------
Germany; Rheinmetall
(cost $27,260) . . . . . . . . . . . . . . . . . . 1,200 $ 23,931
____________
TOTAL INVESTMENTS (cost $4,851,027). . . . . . . . . . . . . . . . . . . . . . . . . . . . 94.1% $ 4,326,389
_______ ____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.9% $ 273,346
_______ ____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $ 4,599,735
_______ ____________
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
</TABLE>
<TABLE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998
Cost Value
___________ __________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $4,851,027 $4,326,389
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 61,163
Cash denominated in foreign currencies . . . . . . . . . 130,293 132,339
Receivable for investment securities sold . . . . . . . . 38,885
Dividends receivable . . . . . . . . . . . . . . . . . . 13,961
Due from The Dreyfus Corporation . . . . . . . . . . . . 1,802
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 53,122
___________
4,627,661
___________
LIABILITIES: Due to Distributor . . . . . . . . . . . . . . . . . . . 1,385
Accrued expenses . . . . . . . . . . . . . . . . . . . . 26,541
___________
27,926
___________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,599,735
___________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $5,077,332
Accumulated undistributed investment income--net . . . . 14,818
Accumulated net realized gain (loss) on investments and
foreign currency transactions . . . . . . . . . . . . . 29,209
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions . . . (521,624)
___________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,599,735
___________
NET ASSET VALUE PER SHARE
_____________________________
Class A Class B Class C Class R
___________ ___________ ___________ ___________
Net Assets . . . . . . . . . . . . . . . . . . . . . . $3,212,623 $483,079 $450,679 $453,354
Shares Outstanding . . . . . . . . . . . . . . . . . . 283,872 42,878 40,000 40,000
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . $11.32 $11.27 $11.27 $11.33
_______ _______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
</TABLE>
<TABLE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME: Cash dividends (net of $9,196 foreign taxes
withheld at source) . . . . . . . . . . . . . . . . . $ 65,411
Interest . . . . . . . . . . . . . . . . . . . . . . . . 10,081
_________
Total Income . . . . . . . . . . . . . . . . . . . $ 75,492
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . 28,213
Registration fees . . . . . . . . . . . . . . . . . . . . 25,194
Auditing fees . . . . . . . . . . . . . . . . . . . . . . 20,700
Custodian fees . . . . . . . . . . . . . . . . . . . . . 10,569
Shareholder servicing costs--Note 2(c) . . . . . . . . . 7,079
Prospectus and shareholders' reports . . . . . . . . . . 5,087
Distribution fees--Note 2(b) . . . . . . . . . . . . . . 4,248
Organization expense--Note 1(f) . . . . . . . . . . . . . 1,768
Trustees' fees and expenses--Note 2(d) . . . . . . . . . 691
Legal fees . . . . . . . . . . . . . . . . . . . . . . . 93
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 928
_________
Total Expenses . . . . . . . . . . . . . . . . . . 104,570
Less--expense reimbursement due to
undertaking--Note 2(a) . . . . . . . . . . . . . . . . (43,896)
_________
Net Expenses . . . . . . . . . . . . . . . . . . . 60,674
_________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,818
_________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments and foreign
currency transactions . . . . . . . . . . . . . . . . $ 38,533
Net realized gain (loss) on forward currency
exchange contracts . . . . . . . . . . . . . . . . . . (9,324)
_________
Net Realized Gain (Loss) . . . . . . . . . . . . . 29,209
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions . . . . . . . . . . (521,624)
_________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . (492,415)
_________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . $(477,597)
_________
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
</TABLE>
<TABLE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,818
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,209
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . (521,624)
___________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . . . . . . . . . . . . . (477,597)
___________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,607,230
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534,619
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64,517)
___________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . . . . . . . . . . . . . . . . . . 5,077,332
___________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,599,735
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --------
___________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,599,735
___________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,818
___________
CAPITAL SHARE TRANSACTIONS:
Class A
_______
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288,881
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,009)
___________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283,872
___________
Class B
_______
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,878
___________
Class C
_______
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
___________
Class R
_______
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
___________
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
</TABLE>
<TABLE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for the period from March 31, 1998
(commencement of operations) to October 31, 1998. This information has been
derived from the Fund's financial statements.
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 (loss)--net . . . . . . . . . . . . . . . . . . . .05 (.01) (.01) .06
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . . . . . . (1.23) (1.22) (1.22) (1.23)
______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . . . (1.18) (1.23) (1.23) (1.17)
______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . . . $11.32 $11.27 $11.27 $11.33
______ ______ ______ ______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . . . . . . . . . . . (9.44%)(2) (9.84%)(2) (9.84%)(2) (9.36%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(1) . . . . . . . . . . . . 1.19% 1.64% 1.64% 1.04%
Ratio of net investment income (loss) to average net assets(1) . . .39% (.07%) (.06%) .53%
Decrease reflected in above expense ratios
due to undertaking by the Manager( (1)) . . . . . . . . . . . . .92% .92% .92% .92%
Portfolio Turnover Rate(1) . . . . . . . . . . . . . . . . . . . . 17.71% 17.71% 17.71% 17.71%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . $3,213 $483 $451 $453
- -----------------------------
(1) Not annualized.
(2) Exclusive of sales load.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
</TABLE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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. ("Mellon") which is a wholly-owned subsidiary of Mellon Bank
Corporation.
As of October 31, 1998, MBC 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
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.
<PAGE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 $734 during the period ended October 31, 1998 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.
(F) OTHER: Organization expenses paid by the Fund are included in prepaid
expenses and are being amortized to operations from March 31, 1998, the date
operations commenced, over the period during which it is expected that a benefit
will be realized, not to exceed five years. At October 31, 1998, the unamortized
balance of such expenses amounted to $19,789. In the event that any of the
Initial Shares are redeemed during the amortization period, the redemption
proceeds will be reduced by any unamortized organization expenses in the same
proportion as the number of such shares being redeemed bears to the number of
such shares outstanding at the time of such redemption.
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 October 31, 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, commitment
fees and extraordinary expenses, exceeded an annual rate of 2% of the value of
the Fund's average daily net assets. The expense reimbursement, pursuant to the
undertaking, amounted to $43,896 during the period ended October 31, 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
October 31, 1998, Class B and Class C shares were charged $2,148 and $2,100,
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 October 31, 1998, Class A, Class B and Class C
shares were charged $4,935, $716 and $700, respectively, pursuant to the
Shareholder Services Plan.
<PAGE>
DREYFUS PREMIER INTERNATIONAL VALUE FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended October 31, 1998, the Fund was charged $213 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 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 October 31, 1998, amounted to $5,560,796 and $695,254,
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. At October 31, 1998, there were no open
forward currency exchange contracts.
(B) At October 31, 1998, accumulated net unrealized depreciation on
investments was $524,638, consisting of $173,428 gross unrealized appreciation
and $698,066 gross unrealized depreciation.
At October 31, 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
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS PREMIER INTERNATIONAL VALUE FUND
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier International Value
Fund (one of the Series constituting Dreyfus Premier Value Equity Funds) as of
October 31, 1998, and the related statements of operations and changes in net
assets and financial highlights for the period from March 31, 1998 (commencement
of operations) to October 31, 1998. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1998 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier International Value Fund, at October 31, 1998, the results of
its operations, the changes in its net assets and the financial highlights for
the period from March 31, 1998 to October 31, 1998, in conformity with generally
accepted accounting principles.
New York, New York
December 7, 1998
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund elects to provide each
shareholder with their portion of the Fund's foreign taxes paid and the income
sourced from foreign countries. Accordingly, the Fund hereby makes the following
designations regarding its fiscal year ended October 31, 1998:
--the total amount of taxes paid to foreign countries was $9,196
--the total amount of income sourced from foreign countries was $30,254
As required by Federal tax law rules, shareholders will receive notification
of their proportionate share of foreign taxes paid and foreign sourced income
for the 1998 calendar year with Form 1099-DIV which will be mailed by January
31, 1999.
<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. 173AR9810
ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
INTERNATIONAL VALUE
FUND
- -------------------------------------------------------------------------------
OCTOBER 31, 1998
(reg.tm)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER VALUE FUND CLASS A SHARES WITH THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX AND
THE WILSHIRE LARGE COMPANY VALUE INDEX
EXHIBIT A:
STANDARD DREYFUS
& POOR'S 500 WILSHIRE PREMIER
PERIOD COMPOSITE STOCK LARGE COMPANY VALUE FUND
PRICE INDEX * VALUE INDEX** (CLASS A SHARES)
10/16/86 10,000 10,000 9,428
10/31/86 10,000 10,000 9,457
10/31/87 10,640 10,466 11,937
10/31/88 12,210 12,559 12,281
10/31/89 15,428 15,242 15,793
10/31/90 14,274 13,314 15,744
10/31/91 19,044 17,814 21,491
10/31/92 20,939 19,775 21,051
10/31/93 24,061 24,126 25,200
10/31/94 24,988 23,491 23,455
10/31/95 31,587 30,372 26,371
10/31/96 39,194 37,093 30,578
10/31/97 51,774 47,687 38,967
10/31/98 63,171 53,598 39,564
*Source: Lipper Analytical Services, Inc.
**Source: Wilshire Associates, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
PREMIER INTERNATIONAL VALUE FUND CLASS A SHARES, CLASS B SHARES,
CLASS C SHARES AND CLASS R SHARES AND THE MORGAN STANLEY
CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (EAFE(R)) INDEX
EXHIBIT A:
MORGAN
STANLEY DREYFUS DREYFUS DREYFUS DREYFUS
CAPITAL PREMIER PREMIER PREMIER PREMIER
INTERNATIONAL INTERNA- INTERNA- INTERNA- INTERNA-
EUROPE, TIONAL TIONAL TIONAL TIONAL
PERIOD AUSTRALASIA, VALUE FUND VALUE FUND VALUE FUND VALUE FUND
FAR EAST (CLASS A (CLASS B (CLASS C (CLASS R
(EAFE(R)) INDEX* SHARES) SHARES) SHARES) SHARES)
3/31/98 10,000 9,427 10,000 10,000 10,000
4/30/98 10,079 9,419 9,984 9,984 9,992
7/31/98 10,208 9,367 9,912 9,912 9,944
10/31/98 9,573 8,537 8,655 8,926 9,064
* Source: Lipper Analytical Services, Inc.
