Dreyfus
Premier International
Value Fund
ANNUAL REPORT October 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
18 Financial Highlights
22 Notes to Financial Statements
28 Report of Independent Auditors
29 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Premier
International Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier International
Value Fund, covering the 12-month period from November 1, 1998 through October
31, 1999. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Sandor Cseh.
When the reporting period began, much of the world was experiencing the
aftermath of a global currency and credit crisis, and many of the world's
central banks had lowered key short-term interest rates to stimulate economic
growth. This strategy appears to have been effective. Soon after 1999 began,
evidence emerged that less restrictive monetary policies had helped prevent
further economic deterioration in Japan and the emerging markets of Asia, Latin
America and Eastern Europe.
The prospect of better economic conditions and the start of banking reform and
corporate restructuring helped Japan lead the world's stock markets higher.
European markets also fared relatively well in local currency terms, but returns
were generally flat for U.S. investors after adjusting for currency-related
effects. The improving economic climate produced particularly good results for
emerging market stocks. Stocks in Southeast Asia began to recover in 1999,
showing their first signs of real strength in over a year. Latin America
provided good results after concerns about Brazil's currency devaluation abated.
Even selected markets in Eastern Europe performed well, despite ongoing
financial problems in Russia.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Premier International Value Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 1999
DISCUSSION OF FUND PERFORMANCE
Sandor Cseh, Portfolio Manager
How did Dreyfus Premier International Value Fund perform relative to its
benchmark?
For the 12-month period ended October 31, 1999, the fund's Class A shares
achieved a total return of 24.75% . Class B shares returned 23.70%, Class C
shares returned 23.77% , and Class R shares returned 25.12%.(1) This compares
with a 23.03% return for the fund' s benchmark, the Morgan Stanley Capital
International Europe, Australasia, Far East ("MSCI-EAFE") Index, for the same
period.(2)
We attribute this performance to two main factors. First, around the globe,
value stocks rebounded smartly from severely depressed levels. Second, the
Japanese market, in which the fund invested heavily, strongly outperformed
global averages.
What is the fund's investment approach?
The fund invests in an internationally diversified portfolio of value stocks:
stocks selling at what we think are attractive prices relative to their
perceived intrinsic worth based on historical measures. These measures typically
include price-to-earnings, price-to-book value and price-to-cash flow ratios.
Discrepancies from historical norms are often the result of short-term factors
that affect market perception: a stock falls out of general market favor,
creating what we perceive to be a buying opportunity. The fund purchases the
security at the depressed price, seeking to profit when perceptions change and
the stock price rises to its perceived value.
In putting the value approach to work, the fund employs a two-step process.
First, we decide how much to invest in each of the countries represented on the
MSCI-EAFE Index. We make a baseline determination by size of a country's gross
domestic product and the capitalization of its stock market compared to the
world as a whole. We can invest more or less than this proportion, based on the
outlook for a country's economy and the specific number of value opportunities
that we see in a particular country's market.
Second, we select individual securities using a process that blends quantitative
and qualitative analysis. After an initial computer screen elimi The Fun
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
nates approximately 90% of purchase candidates, analysts perform extensive
fundamental research and conduct on-site visits to determine which securities we
will buy for the portfolio. Stocks in the portfolio are sold when they reach a
price at which we no longer consider them attractive values, or when our
analysts determine that changes in market sentiment that we had anticipated will
probably not occur.
What factors influenced the fund's performance?
Investor preference for growth stocks hurt the fund's performance over the first
half of our fiscal year. From April on, however, the pendulum began to swing
away from growth and towards value. Investors grew concerned over the
increasingly lofty valuations of growth stocks and the threat of higher interest
rates. Of course, there can be no guarantee that one style will outperform the
other at any time.
Japan, long in a period of serious recession and overall market decline, offered
attractive opportunities. Bank recapitalization and corporate restructurings
began to have positive economic effects, and the Japanese market continued its
rise. The market recognized value in companies noted as worldwide competitors,
as well as domestic companies positioned to take advantage of Japan's economic
recovery. Japan, of course, still is a potentially volatile market.
Europe, while overshadowed by Japan' s exceptionally strong market rebound,
showed signs of sweeping changes in business culture, adopting new corporate
values with an emphasis on maximizing shareholder value. The introduction of a
common currency, the euro, stimulated cross-border economic integration and
spurred merger activity. Initially weak against the dollar, the euro appears to
have found a bottom; that base has been supportive of European equities
What is the fund's current strategy?
We have taken some profits in Japan and are close to a neutral benchmark
position. Our diversified Japanese holdings include both successful
international companies in fields such as electrical components,
telecommunications equipment manufacturing and diversified media as well as
firms positioned to benefit from domestic deregulation and recovery, in areas
including consumer finance and entertainment. In Europe, our emphasis has
remained on restructuring and acquisition candidates. We have slightly increased
our exposure to emerging markets, but this sector remains a relatively small
part of the overall portfolio.
Growth-oriented stocks outperformed value securities for so long that the
differences in valuations between these two types of investments grew very wide.
It is, of course, impossible to predict if recent trends are a sign of
convergence towards historical norms. But we continue to believe that, over
time, the core, dual disciplines of international and value investing
potentially can benefit long-term equity investors.
November 15, 1999
(1) 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 CHARGES
IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE
CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. SHARE PRICES AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS
CORPORATION PURSUANT TO AN AGREEMENT IN EFFECT THROUGH OCTOBER 31, 2000, AT
WHICH TIME IT MAY BE EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT
BEEN ABSORBED, THE FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- THE MORGAN STANLEY CAPITAL
INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST ("MSCI-EAFE") INDEX IS AN UNMANAGED
INDEX COMPOSED OF A SAMPLE OF COMPANIES REPRESENTATIVE OF THE MARKET STRUCTURE
OF EUROPEAN AND PACIFIC BASIN COUNTRIES AND INCLUDES NET DIVIDENDS REINVESTED.
THE INDEX IS THE PROPERTY OF MORGAN STANLEY & CO. INCORPORATED. UNLIKE THE FUND,
.THE INDEX IS NOT FOCUSED ON VALUE STOCKS PRINCIPALLY.
The Fund
FUND PERFORMANCE
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
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
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 APPLICABLE 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 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. THESE FACTORS CAN CONTRIBUTE TO THE FUND UNDERPERFORMING THE
INDEX. 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Average Annual Total Returns AS OF 10/31/99
Inception From
Date 1 Year Inception
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Class A Shares
WITH SALES CHARGE (5.75%) 3/31/98 17.58% 4.04%
WITHOUT SALES CHARGE 3/31/98 24.75% 7.97%
Class B Shares
WITH REDEMPTION* 3/31/98 19.70% 4.67%
WITHOUT REDEMPTION 3/31/98 23.70% 7.10%
Class C Shares
WITH REDEMPTION** 3/31/98 22.77% 7.14%
WITHOUT REDEMPTION 3/31/98 23.77% 7.14%
Class R Shares 3/31/98 25.12% 8.23%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
* 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>
<TABLE>
<CAPTION>
<S> <C> <C>
The Fund
STATEMENT OF INVESTMENTS
October 31, 1999
COMMON STOCKS--95.9% Shares Value ($)
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AUSTRALIA--2.0%
Australia & New Zealand Banking 11,920 78,568
Goodman Fielder 33,942 31,346
Pacific Dunlop 19,695 27,722
137,636
BRAZIL--.6%
Petroleo Brasileiro, ADR 1,100 17,463
Telecomunicacoes Brasileiras, ADS 304 23,674
41,137
DENMARK--.9%
Jyske Bank 3,000 58,288
FINLAND--.6%
Kesko Oyj, Cl. B 3,700 42,204
FRANCE--10.0%
Air Liquide 597 92,201
Alstom 600 18,216
Assurances Generale de France 1,075 60,063
Banque Nationale de Paris 1,000 88,026
Bongrain 110 43,370
CNP Assurance 1,100 32,469
Compagnie Generale des Etablissements Michelin, Cl. B 1,056 46,088
Dexia France 370 52,267
Elf Aquitaine, ADS 600 44,475
PSA Peugeot Citroen 180 34,630
Pechiney, Cl. A 310 17,386
Societe Generale, Cl. A 240 52,373
Thompson CSF 1,500 51,076
Usinor 3,000 41,778
674,418
GERMANY--9.8%
Bayer 2,200 90,218
Celanese 50 791
Deutsche Bank 1,111 79,877
Deutsche Lufthansa 3,150 66,415
GEA 1,200 41,746
Hoechst 500 22,059
COMMON STOCKS (CONTINUED) Shares Value ($)
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GERMANY (CONTINUED)
Merck KGaA 2,400 82,987
Siemens 900 80,978
Veba 1,500 81,279
Viag 2,860 52,913
Volkswagen 1,130 66,948
666,211
GREECE--1.2%
Hellenic Telecommunication Organization, ADS 7,600 80,750
HONG KONG--1.7%
CDL Hotels International 17,000 5,745
Henderson Investment 55,000 33,809
Hongkong Electric 23,689 72,427
111,981
ITALY--2.6%
Banca Popolare di Bergamo Credito Varesino 1,800 38,805
ENI, ADS 900 52,875
San Paolo-IMI 1,200 15,841
Telecom Italia 13,690 67,614
175,135
JAPAN--28.6%
Aiful 300 46,643
Canon 4,000 113,249
Credit Saison 4,000 98,469
Dai-Tokyo Fire & Marine Insurance 11,000 55,953
Fuji Machine Manufacturing 1,000 46,547
Honda Motor 1,000 42,229
Mabuchi Motor 800 118,240
Marubeni 22,000 70,099
Matsumotokiyoshi 1,300 108,796
Minebea 7,000 94,390
Mitsubishi Heavy Industries 9,000 35,328
Murata Manufacturing 1,000 128,605
NAMCO 2,000 94,438
Nichiei 1,000 51,826
Nippon Express 15,000 106,243
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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JAPAN (CONTINUED)
Nishimatsu Construction 7,000 36,883
Rinnai 2,800 59,523
Rohm 600 134,747
Sankyo 600 47,507
Sankyo Company 3,000 85,513
Sekisui Chemical 6,000 29,541
77 Bank 5,000 59,408
Sony 700 109,238
Toyota Motor 2,000 69,293
Yamanouchi Pharmaceutical 2,000 90,791
1,933,499
MEXICO--.3%
Telefonos de Mexico, ADR 200 17,100
NETHERLANDS--7.3%
ABN AMRO 3,566 86,426
Akzo Nobel, ADS 1,000 43,125
Buhrmann 3,175 54,859
Hollandsche Beton Groep 2,828 27,726
Hunter Douglas 2,165 58,770
ING Groep 1,206 71,298
KPN, ADS 1,108 56,552
Koninklijke (Royal) Philips Electronics, ADR 200 20,787
Stork 2,516 49,467
Vedior 1,500 25,301
494,311
NEW ZEALAND--1.1%
Fletcher Challenge Paper 48,277 31,562
Telecom Corporation of New Zealand 11,400 45,873
77,435
NORWAY--.6%
Orkla, Cl. B 2,800 38,975
PERU--.4%
Telefonica del Peru, ADS 2,300 26,594
PHILIPPINES--.3%
Manila Electric 7,000 19,202
PORTUGAL--1.4%
Banco Pinto & Sotto Mayor 1,592 33,230
COMMON STOCKS (CONTINUED) Shares Value ($)
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PORTUGAL (CONTINUED)
Portugal Telecom 1,400 62,577
95,807
SINGAPORE--1.6%
Creative Technology 2,800 33,600
United Overseas Bank 10,000 75,812
109,412
SOUTH KOREA--.8%
Korea Electric Power, ADR 2,000 31,500
Pohang Iron & Steel, ADR 700 23,363
54,863
SPAIN--4.2%
Argentaria, Caja Postal y Banco Hipotecario de Espana 1,800 40,039
Banco Popular Espanol 800 53,975
Endesa 5,290 106,125
Repsol-YPF, ADS 4,100 84,050
284,189
SWEDEN--.8%
Autoliv 1,750 55,889
SWITZERLAND--4.7%
Barry Callebaut 371 63,255
Forbo 165 73,502
Sulzer 75 52,727
Swisscom 110 33,571
UBS 330 96,160
319,215
UNITED KINGDOM--14.4%
BOC 3,284 70,352
Barclays 2,032 62,239
British Aerospace 10,750 62,831
British Airways 4,540 23,643
Bunzl 18,777 92,305
Laird 11,000 46,298
Medeva 152 387
Morgan Crucible 15,511 61,969
PowerGen 7,305 64,074
Rexam 15,700 64,531
Rio Tinto 3,730 63,839
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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UNITED KINGDOM (CONTINUED)
Royal & Sun Alliance Insurance 9,675 65,854
Royal Bank of Scotland 2,818 64,956
Safeway 15,923 50,002
Scottish & Southern Electric 3,200 30,383
Storehouse 24,079 27,537
Tomkins 16,869 57,202
Wolseley 10,000 67,942
976,344
TOTAL COMMON STOCKS
(cost $6,137,545) 6,490,595
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PREFERRED STOCKS--.8%
- ------------------------------------------------------------------------------------------------------------------------------------
GERMANY:
Hugo Boss 110 14,727
ProSieben Media 600 24,668
Rheinmetall 1,200 15,244
TOTAL PREFERRED STOCKS
(cost $70,996) 54,639
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Principal
SHORT-TERM INVESTMENTS--1.0% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
4.67%, 12/23/1999
(cost $69,528) 70,000 69,553
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TOTAL INVESTMENTS (cost $6,278,069) 97.7% 6,614,787
CASH AND RECEIVABLES (NET) 2.3% 155,933
NET ASSETS 100.0% 6,770,720
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 6,278,069 6,614,787
Cash 36,330
Cash denominated in foreign currencies 86,730 87,431
Receivable for investment securities sold 49,430
Dividends receivable 24,311
Receivable for shares of Beneficial Interest subscribed 5,495
Prepaid expenses 22,427
6,840,211
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 1,688
Due to Distributor 971
Payable for investment securities purchased 34,648
Accrued expenses 32,184
69,491
- --------------------------------------------------------------------------------
NET ASSETS ($) 6,770,720
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 5,987,187
Accumulated undistributed investment income--net 4,897
Accumulated net realized gain (loss) on investments 441,660
Accumulated net unrealized appreciation (depreciation) on investments
and foreign currency transactions 336,976
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NET ASSETS ($) 6,770,720
<TABLE>
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<S> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R
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Net Assets ($) 4,110,092 960,372 584,738 1,115,518
Shares Outstanding 294,085 69,279 42,158 79,627
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NET ASSET VALUE PER SHARE ($) 13.98 13.86 13.87 14.01
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Year Ended October 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $17,536 foreign taxes withheld at source) 129,584
Interest 7,270
TOTAL INCOME 136,854
EXPENSES:
Management fee--Note 3(a) 61,023
Registration fees 65,724
Custodian fees 21,330
Auditing fees 18,596
Shareholder servicing costs--Note 3(c) 12,909
Prospectus and shareholders' reports 11,428
Distribution fees--Note 3(b) 8,810
Trustees' fees and expenses--Note 3(d) 1,553
Legal fees 1,037
Loan commitment fees--Note 2 11
Miscellaneous 5,075
TOTAL EXPENSES 207,496
Less-expense reimbursement from the Manager
due to undertaking--Note 3(a) (79,824)
NET EXPENSES 127,672
INVESTMENT INCOME--NET 9,182
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 453,942
Net realized gain (loss) on forward currency exchange contracts (14,118)
NET REALIZED GAIN (LOSS) 439,824
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 858,600
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,298,424
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,307,606
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
-----------------------------
1999 1998(a)
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 9,182 14,818
Net realized gain (loss) on investments 439,824 29,209
Net unrealized appreciation (depreciation)
on investments 858,600 (521,624)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,307,606 (477,597)
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (19,976) --
Class B shares (858) --
Class C shares (720) --
Class R shares (10,045) --
Net realized gain on investments:
Class A shares (13,698) --
Class B shares (2,058) --
Class C shares (1,920) --
Class R shares (5,358) --
TOTAL DIVIDENDS (54,633) --
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BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 106,274 3,607,230
Class B shares 382,720 534,619
Class C shares 28,662 500,000
Class R shares 840,540 500,000
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended October 31,
---------------------------------
1999 1998(a)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS (CONTINUED) ($):
Dividends reinvested:
Class A shares 33,571 --
Class B shares 2,809 --
Class C shares 2,640 --
Class R shares 5,520 --
Cost of shares redeemed:
Class A shares (7,946) (64,517)
Class B shares (39,350) --
Class C shares (3,128) --
Class R shares (434,300) --
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 918,012 5,077,332
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,170,985 4,599,735
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 4,599,735 --
END OF PERIOD 6,770,720 4,599,735
Undistributed investment income--net 4,897 14,818
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
---------------------------------
1999 1998(a)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 7,938 288,881
Shares issued for dividends reinvested 2,884 --
Shares redeemed (609) (5,009)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 10,213 283,872
- --------------------------------------------------------------------------------
CLASS B
Shares sold 28,995 42,878
Shares issued for dividends reinvested 242 --
Shares redeemed (2,836) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 26,401 42,878
- --------------------------------------------------------------------------------
CLASS C
Shares sold 2,190 40,000
Shares issued for dividends reinvested 227 --
Shares redeemed (259) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,158 40,000
- --------------------------------------------------------------------------------
CLASS R
Shares sold 71,654 40,000
Shares issued for dividends reinvested 474 --
Shares redeemed (32,501) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 39,627 40,000
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended October 31,
----------------------------
CLASS A SHARES 1999 1998(a)
- -----------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.32 12.50
Investment Operations:
Investment income--net .03(b) .05
Net realized and unrealized gain (loss)
on investments 2.75 (1.23)
Total from Investment Operations 2.78 (1.18)
Distributions:
Dividends from investment income--net (.07) --
Dividends from net realized gain
on investments (.05) --
Total Distributions (.12) --
Net asset value, end of period 13.98 11.32
- ----------------------------------------------------------------------------
TOTAL RETURN (%)(C) 24.75 (9.44)(d)
- -------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.00 1.19(d)
Ratio of net investment income
to average net assets .22 .39(d)
Decrease reflected in above expense ratios
due to undertakings by the Manager 1.31 .92(d)
Portfolio Turnover Rate 41.73 17.71(d)
- ------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 4,110 3,213
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
------------------------------
CLASS B SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.27 12.50
Investment Operations:
Investment (loss)--net (.08)(b) (.01)
Net realized and unrealized gain (loss)
on investments 2.74 (1.22)
Total from Investment Operations 2.66 (1.23)
Distributions:
Dividends from investment income--net (.02) --
Dividends from net realized gain
on investments (.05) --
Total Distributions (.07) --
Net asset value, end of period 13.86 11.27
- --------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 23.70 (9.84)(d)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.75 1.64(d)
Ratio of net investment (loss)
to average net assets (.60) (.07)(d)
Decrease reflected in above expense ratios
due to undertakings by the Manager 1.27 .92(d)
Portfolio Turnover Rate 41.73 17.71(d)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 960 483
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
------------------------------
CLASS C SHARES 1999 1998(a)
- -------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.27 12.50
Investment Operations:
Investment (loss)--net (.07)(b) (.01)
Net realized and unrealized gain (loss)
on investments 2.74 (1.22)
Total from Investment Operations 2.67 (1.23)
Distributions:
Dividends from investment income--net (.02) --
Dividends from net realized gain
on investments (.05) --
Total Distributions (.07) --
Net asset value, end of period 13.87 11.27
- -------------------------------------------------------------------------
TOTAL RETURN (%)(C) 23.77 (9.84)(d)
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.75 1.64(d)
Ratio of net investment (loss)
to average net assets (.55) (.06)(d)
Decrease reflected in above expense ratios
due to undertakings by the Manager 1.31 .92(d)
Portfolio Turnover Rate 41.73 17.71(d)
- --------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 585 451
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
-----------------------------
CLASS R SHARES 1999 1998(a)
- -------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 11.33 12.50
Investment Operations:
Investment income--net .08(b) .06
Net realized and unrealized gain (loss)
on investments 2.74 (1.23)
Total from Investment Operations 2.82 (1.17)
Distributions:
Dividends from investment income--net (.09) --
Dividends from net realized gain
on investments (.05) --
Total Distributions (.14) --
Net asset value, end of period 14.01 11.33
- -------------------------------------------------------------------------
TOTAL RETURN (%) 25.12 (9.36)(c)
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.75 1.04(c)
Ratio of net investment income
to average net assets .62 .53(c)
Decrease reflected in above expense ratios
due to undertakings by the Manager 1.32 .92(c)
Portfolio Turnover Rate 41.73 17.71(c)
- -------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1,116 453
(A) FROM MARCH 31, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The 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 Financial Corporation
As of October 31, 1999, MBC Investment Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares:
Class A 282,838 Class C 40,227
Class B 40,234 Class R 40,474
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund' s shares. The fund is authorized to issue an unlimited number of $.001 par
value shares in the following classes of shares: Class A, Class B, Class C and
Class R. Class A shares are subject to a sales charge imposed at the time of
purchase, Class B shares are subject to a contingent deferred sales charge
("CDSC") imposed on Class B share redemptions made within six years of purchase,
Class C shares are subject to a CDSC imposed on Class C shares redeemed within
one year of purchase and Class R shares are sold at net asset value per share
only to institutional investors. Other differences between the classes include
the services offered to and the expenses borne by each class and certain voting
rights.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series 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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 $521 during the period ended October 31, 1999 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
During the period ended October 31,1999, the fund increased accumulated
undistributed investment income-net by $12,496 and decreased accumulated net
realized gain (loss) on investments by $4,339 and paid-in capital by $8,157. Net
assets were not effected by this reclassification.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay
commitment fees on its pro rata portion of the Facility. Interest is charged to
the fund at rates based on prevailing market rates in effect at the time of
borrowings. During the period ended October 31, 1999, the fund did not borrow
under the Facility.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of 1% of the value of the fund's average daily net
assets and is payable monthly. The Manager had undertaken from November 1, 1998
through October 31, 2000, to reimburse such excess expenses of the fund to the
extent that the fund's aggregate annual expenses, excluding 12b-1 distribution
plan fees, shareholder service plan fees, taxes, brokerage, interest on
borrowings, commitment fees and extraordinary expenses, exceed an annual rate of
1.75% of the value of the fund' s average daily net assets. The expense
reimbursement, pursuant to the undertaking, amounted to $79,824 during the
period ended October 31, 1999.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained
$93 during the period ended October 31, 1999 from commissions earned on sales of
the fund's shares.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares, respectively. During the period ended
October 31, 1999, Class B and Class C shares were charged $4,954 and $3,856,
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 The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 1999,
Class A, Class B and Class C shares were charged $9,135, $1,652 and $1,285,
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, 1999, the fund was charged $444 pursuant to the transfer
agency agreement.
(D) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--Securities Transactions:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended October 31, 1999, amounted to $3,336,689 and $2,410,473,
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
gains on each open contract. At October 31, 1999, there were no forward currency
exchange contracts outstanding.
(B) At October 31, 1999, accumulated net unrealized appreciation on investments
was $336,718, consisting of $957,830 gross unrealized appreciation and $621,112,
gross unrealized depreciation.
At October 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF 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,
1999, 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
ended, and financial highlights for each of the periods 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 confirmation of
securities owned as of October 31, 1999 by correspondence with the custodian and
brokers. 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 International Value Fund at October 31, 1999, 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 periods, in conformity with generally accepted accounting
principles.
New York, New York
December 8, 1999
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, 1999:
--the total amount of taxes paid to foreign countries was $17,536
--the total amount of income sourced from foreign countries was $98,264
As required by Federal tax laws rules, shareholders will receive notification of
their proportionate share of foreign taxes paid and foreign sourced income for
the 1999 calendar year with form 1099-DIV which will be mailed by January 31,
2000.
The fund also designates 2.23% of the ordinary dividends paid during the fiscal
year ended October 31, 1999 as qualifying for the corporate dividends received
deductions. Shareholders will receive notification in January 2000 of the
percentage applicable to the preparation of their 1999 income tax return.
The Fund
For More Information
Dreyfus Premier International Value Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 173/147AR9910
Dreyfus Premier
Value Fund
ANNUAL REPORT October 31, 1999
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
16 Financial Highlights
20 Notes to Financial Statements
26 Report of Independent Auditors
27 Important Tax Information
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Value Fund,
covering the 12-month period from November 1, 1998 through October 31, 1999.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Timothy M. Ghriskey.
Despite a relatively weak third quarter of 1999 for the U.S. stock market, the
past year has been rewarding for most equity investors overall. When the
reporting period began, most sectors of the U.S. stock market had completed a
sharp correction caused primarily by concerns regarding the spread of the global
financial crisis in overseas markets. Soon after the start of 1999, however,
those fears abated. In fact, the U.S. economy remained strong, characterized by
low inflation and high levels of consumer spending. These conditions supported
continued strength in the stock market through the spring.
In the summer of 1999, however, the Federal Reserve Board raised short-term
interest rates twice in an effort to forestall inflationary pressures in a
fast-growing economy. Because higher interest rates tend to increase the cost of
capital and make fixed-income securities more competitive relative to equities,
most sectors of the stock market declined. By the end of the 12-month reporting
period, major stock indices had fallen from the record highs reached during the
summer, although stock prices generally were still higher than they were one
year earlier.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Premier Value Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 1999
DISCUSSION OF FUND PERFORMANCE
Timothy M. Ghriskey, Portfolio Manager
How did Dreyfus Premier Value Fund perform relative to its benchmark?
For the one-year period ended October 31, 1999, the fund's total return was
13.24% for Class A shares; 12.38% for Class B shares; 12.25% for Class C shares;
and 12.99% for Class R shares.(1) This compares with a total return of 16.52%
for the fund' s new benchmark, the Russell 1000 Value Index, for the same
period.(2) Further discussion about this benchmark change follows the line-graph
comparison contained in this annual report.
We attribute the fund's performance to a generally positive market environment,
but one that strongly favored growth over value. We attribute our
underperformance relative to the benchmark to a variety of company- and
sector-specific issues that, on balance, hurt the fund's performance. We discuss
these issues in greater detail below.
What is the fund's investment approach?
Dreyfus Premier Value Fund invests in a diversified portfolio of value-oriented
companies. We define a value stock as one that appears underpriced in relation
to the company' s perceived intrinsic value, as measured by a wide range of
financial and business data. To put it another way, we seek to buy growing
companies at bargain prices.
We select investments one stock and one company at a time. Our investment
process starts with computerized, quantitative analysis of the universe of
stocks, first to identify those that meet our definition of value, and then to
focus on those value stocks we believe are best positioned to grow in the
prevailing market environment. Our team of experienced analysts examines the
fundamentals of each top-ranked candidate, providing additional information to
help the portfolio manager decide which to purchase or sell. The result of our
approach during the recent one-year period was a portfolio of carefully selected
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
stocks with notably greater concentration than our benchmark in the areas of
technology and health care.
What other factors influenced the fund's performance?
As stated earlier, the fund's performance relative to our benchmark was largely
driven by sector- and company-specific factors. In regard to the fund's sector
exposure, we generally benefited from our overweighting in technology with the
strong performance of industry leaders, such as Intel and Sun Microsystems.
However, two of our technology holdings, Compaq Computer and Storage Technology,
proved particularly disappointing as a result of the companies' struggles with
strong competitive pressures. On the other hand, although many health care
stocks suffered during the period due to a challenging political environment and
changing rules for Medicare reimbursements, our health care holdings
outperformed the benchmark' s health care component. We achieved above average
results from holdings in biotech companies such as Biogen, hospital management
organizations such as Columbia/HCA Healthcare, and pharmaceutical companies such
as Pharmacia & Upjohn.
Among the fund' s other diversified holdings, many individual stocks showed
notable strength throughout the period. Our best performers included well-known
companies in some of the market's strongest industries, such as Citigroup in the
financial industry, General Motors in consumer durables and Wendy' s
International in consumer staples. We also succeeded in identifying stocks that
performed well within relatively weak-performing sectors, such as Niagara Mohawk
Power in the utility sector. On the other hand, we suffered notable
disappointments with two financial companies that delivered worse-than-expected
earnings, and several supermarket chains that, despite strong earnings, lost
ground due to anticipated competition from Internet-based grocery services.
What is the fund's current strategy?
We have maintained our strict commitment to value investing. Value stocks
significantly underperformed growth stocks this past year, as measured by
comparison of the Russell 1000 Growth Index and
Russell 1000 Value Index, which returned 34.25% and 16.52%, respectively, over
the past 12-month period.(2) Events during the period reminded us about the
importance of style diversification.
More specifically, in early April 1999 a powerful shift in market sentiment
appeared to take place. Precipitated by unexpected strength in the U.S. and
global economies, investment dollars abruptly flowed out of growth stocks and
into traditional value sectors such as energy, basic materials and capital
goods. Although the trend proved short lived and growth began to again
outperform value, it hinted at the speed with which market sentiment can turn.
We believe that our disciplined, quantitatively driven investment strategy
provides a sound value-oriented investment, and we continue to maintain our
disciplined investment style and our commitment to value.
November 15, 1999
(1) 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 CHARGES
IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE
CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
INCOME DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE RUSSELL
1000 VALUE INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL 1000 COMPANIES WITH
LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED GROWTH VALUES. THE RUSSELL 1000
GROWTH INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL 1000 COMPANIES WITH
HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH VALUES. THE RUSSELL
1000 INDEX MEASURES THE PERFORMANCE OF THE 1,000 LARGEST COMPANIES IN THE
RUSSELL 3000 INDEX, WHICH REPRESENT APPROXIMATELY 89% OF THE TOTAL MARKET
CAPITALIZATION OF THE RUSSELL 3000 INDEX.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Value
Fund Class A shares with the Russell 1000 Value Index and the Wilshire Large
Company Value Index
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
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 RUSSELL 1000 VALUE INDEX AND IN 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. THIS IS THE FIRST YEAR IN WHICH COMPARATIVE PERFORMANCE IS BEING SHOWN
FOR THE RUSSELL 1000 VALUE INDEX, WHICH THIS YEAR HAS BEEN SELECTED AS THE
PRIMARY INDEX FOR COMPARING THE FUND'S PERFORMANCE ON AN ONGOING BASIS, BASED ON
THE FUND'S AND THE INDEX'S VALUE ORIENTATION. THE RUSSELL 1000 VALUE INDEX
REPLACES THE WILSHIRE LARGE COMPANY VALUE INDEX, WHICH WAS USED AS THE FUND'S
PRIMARY BENCHMARK LAST YEAR, BECAUSE THE FUND'S MANAGER PREFERS THE INFORMATION
MADE AVAILABLE BY RUSSELL. THE RUSSELL 1000 VALUE INDEX MEASURES THE PERFORMANCE
OF THOSE RUSSELL 1000 COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER
FORECASTED GROWTH VALUES. THE RUSSELL 1000 INDEX MEASURES THE PERFORMANCE OF THE
1,000 LARGEST COMPANIES IN THE RUSSELL 3000 INDEX, WHICH REPRESENT APPROXIMATELY
89% OF THE TOTAL MARKET CAPITALIZATION OF THE RUSSELL 3000 INDEX. THE WILSHIRE
LARGE COMPANY VALUE INDEX, SELECTED AS THE FUND'S PRIMARY BENCHMARK INDEX LAST
YEAR, IS COMPOSED OF THE LARGEST 750 STOCKS IN THE WILSHIRE 5000 INDEX WHICH
MEET CERTAIN STATISTICAL CRITERIA FOR "VALUE." PURSUANT TO APPLICABLE FEDERAL
REGULATIONS, THE PERFORMANCE OF THE WILSHIRE INDEX WILL BE PROVIDED FOR THIS
FISCAL YEAR 1999, BUT WILL NOT BE PROVIDED IN THE FUTURE. 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Average Annual Total Returns AS OF 10/31/99
Inception From
Date 1 Year 5 Years 10 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
WITH SALES CHARGE (MAX. 5.75%) 10/16/86 6.70% 12.48% 10.34% 12.19%
WITHOUT SALES CHARGE 10/16/86 13.24% 13.82% 10.99% 12.70%
CLASS B SHARES
WITH REDEMPTION((+)) 1/15/93 8.38% 12.70% -- 9.79%
WITHOUT REDEMPTION 1/15/93 12.38% 12.95% -- 9.79%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 9/1/95 11.25% -- -- 12.74%
WITHOUT REDEMPTION 9/1/95 12.25% -- -- 12.74%
CLASS R SHARES 9/1/95 12.99% -- -- 13.41%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4% AND
IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
The Fund
STATEMENT OF INVESTMENTS
October 31, 1999
(CONTINUED)
COMMON STOCKS--98.7% Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS--.6%
Lexmark International Group, Cl. A 15,500 1,209,969
CAPITAL SPENDING--1.0%
Caterpillar 35,700 1,972,425
CONSUMER DURABLES--2.4%
General Motors 67,000 4,706,750
CONSUMER NON-DURABLES--4.7%
Anheuser-Busch Cos. 12,900 926,381
Heinz (H.J.) 91,700 4,378,675
PepsiCo 115,200 3,996,000
9,301,056
CONSUMER SERVICES--8.1%
Cendant 107,000 (a) 1,765,500
Clear Channel Communications 23,400 (a) 1,880,775
Disney (Walt) 70,000 1,846,250
McDonald's 27,000 1,113,750
MediaOne Group 94,300 6,701,194
Viacom, Cl. B 23,900 1,069,525
Wendy's International 75,300 1,797,787
16,174,781
ELECTRONIC TECHNOLOGY--7.2%
Apple Computer 34,700 (a) 2,780,337
General Dynamics 35,400 1,962,487
Hewlett-Packard 8,000 592,500
Intel 74,100 5,738,119
International Business Machines 12,300 1,210,013
Micron Technology 6,700 (a) 477,794
Motorola 16,100 1,568,744
14,329,994
ENERGY--1.4%
Royal Dutch Petroleum , A.D.R. 47,800 2,865,012
ENERGY MINERALS--8.5%
BP Amoco, A.D.S. 73,200 4,227,300
Conoco, Cl.B 23,900 648,287
Mobil 90,200 8,704,300
Texaco 53,300 3,271,288
16,851,175
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCE--23.2%
American Express 7,300 1,124,200
Bank of America 99,300 6,392,437
Bank of New York 27,400 1,147,375
Chase Manhattan 77,900 6,806,512
Citigroup 192,250 10,405,531
Federal Home Loan Mortgage 44,500 2,405,781
Federal National Mortgage Association 33,000 2,334,750
Fleet Boston 107,000 4,667,875
Morgan (J.P.) 32,900 4,305,788
Morgan Stanley Dean Witter & Co. 32,700 3,607,219
Wells Fargo 63,500 3,040,063
46,237,531
HEALTH CARE-1.0%
Abbott Laboratories 47,200 1,905,700
HEALTH SERVICES--2.1%
Columbia/HCA Healthcare 169,800 4,096,425
HEALTH TECHNOLOGY--2.5%
Bristol-Myers Squibb 26,300 2,020,169
Merck & Co. 38,300 3,047,244
5,067,413
INSURANCE--5.5%
American General 57,500 4,265,781
American International Group 64,625 6,652,336
10,918,117
NON-ENERGY MINERALS--1.7%
Alcoa 56,700 3,444,525
PROCESS INDUSTRIES--4.2%
Dow Chemical 24,900 2,944,425
duPont (E.I.) deNemours & Co. 34,900 2,248,869
International Paper 23,200 1,220,900
Olin 144,800 2,000,050
8,414,244
PRODUCER MANUFACTURING--5.5%
General Electric 37,900 5,137,819
Georgia-Pacific 44,000 1,746,250
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
PRODUCER MANUFACTURING (CONTINUED)
Honeywell 37,700 3,974,994
10,859,063
TECHNOLOGY--1.0%
EMC 27,700 2,022,100
TECHNOLOGY SERVICES--3.4%
Computer Associates International 83,300 4,706,450
Electronic Data Systems 35,700 2,088,450
6,794,900
TRANSPORTATION--.6%
CNF Transportation 38,900 1,286,131
UTILITIES--14.1%
AT&T--Liberty Media Group, Cl.A 33,800 1,341,437
Bell Atlantic 79,000 5,130,062
BellSouth 72,000 3,240,000
Coastal 92,100 3,879,713
Duke Energy 13,700 774,050
Enron 26,800 1,070,325
GTE 23,800 1,785,000
Illinova 32,800 1,043,450
MCI WorldCom 19,100 (a) 1,639,019
SBC Communications 111,597 5,684,462
Southern 25,500 677,344
Sprint 25,700 1,909,831
28,174,693
TOTAL COMMON STOCKS
(cost $160,107,248) 196,632,004
Principal
SHORT-TERM INVESTMENTS--1.9% Amount ($) Value ($)
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
4.54%, 11/4/1999 524,000 523,801
4.37%, 11/12/1999 860,000 858,839
4.58%, 11/26/1999 275,000 274,189
4.46%, 12/9/1999 930,000 925,657
4.51%, 12/16/1999 998,000 992,541
4.67%, 12/23/1999 246,000 244,428
TOTAL SHORT-TERM INVESTMENTS
(cost $3,819,105) 3,819,455
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $163,926,353) 100.6% 200,451,459
LIABILITIES, LESS CASH AND RECEIVABLES (.6%) (1,308,572)
NET ASSETS 100.0% 199,142,887
A NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 163,926,353 200,451,459
Cash 82,713
Receivable for investment securities sold 1,929,317
Dividends receivable 181,170
Prepaid expenses 24,233
202,668,892
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 156,266
Due to Distributor 57,118
Payable for investment securities purchased 3,040,332
Payable for shares of Beneficial Interest redeemed 210,129
Accrued expenses 62,160
3,526,005
- --------------------------------------------------------------------------------
NET ASSETS ($) 199,142,887
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 144,469,608
Accumulated undistributed investment income--net 870,538
Accumulated net realized gain (loss) on investments 17,277,635
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4(b) 36,525,106
- --------------------------------------------------------------------------------
NET ASSETS ($) 199,142,887
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 171,526,186 26,896,591 712,057 8,053
Shares Outstanding 7,797,495 1,268,388 33,812 371.117
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 22.00 21.21 21.06 21.70
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Year Ended October 31, 1999
- -------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $48,055 foreign taxes withheld at source) 3,367,959
Interest Income 331,481
TOTAL INCOME 3,699,440
EXPENSES:
Management fee--Note 3(a) 1,646,180
Shareholder servicing costs--Note 3(c) 726,951
Distribution fees--Note 3(b) 306,470
Professional fees 59,974
Registration fees 47,305
Trustees' fees and expenses--Note 3(d) 41,628
Prospectus and shareholders' reports 35,547
Custodian fees--Note 3(c) 23,482
Loan commitment fees--Note 2 1,717
Interest expense--Note 2 653
Miscellaneous 9,034
TOTAL EXPENSES 2,898,941
INVESTMENT INCOME--NET 800,499
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 15,677,205
Net realized gain (loss) on financial futures 1,353,466
NET REALIZED GAIN (LOSS) 17,030,671
Net unrealized appreciation (depreciation) on investments
[including (279,250) net unrealized (depreciation) on financial
futures] 10,093,329
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 27,124,000
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 27,924,499
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
---------------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 800,499 927,593
Net realized gain (loss) on investments 17,030,671 15,331,091
Net unrealized appreciation (depreciation)
on investments 10,093,329 (10,271,824)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 27,924,499 5,986,860
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (847,057) (897,158)
Class C shares - (1,708)
Class R shares (42) (30)
Net realized gain on investments:
Class A shares (12,313,696) (28,342,023)
Class B shares (3,589,217) (7,784,711)
Class C shares (48,455) (102,316)
Class R shares (498) (705)
TOTAL DIVIDENDS (16,798,965) (37,128,651)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 316,761,511 358,815,870
Class B shares 3,646,012 5,641,156
Class C shares 379,803 382,394
Class R shares 1,563 19,638
Dividends reinvested:
Class A shares 12,323,001 27,528,054
Class B shares 3,380,195 7,388,194
Class C shares 32,265 56,706
Class R shares 530 726
Cost of shares redeemed:
Class A shares (345,359,378) (390,437,238)
Class B shares (29,533,115) (10,960,162)
Class C shares (378,037) (288,724)
Class R shares (719) (20,056)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (38,746,369) (1,873,442)
TOTAL INCREASE (DECREASE) IN NET ASSETS (27,620,835) (33,015,233)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 226,763,722 259,778,955
END OF PERIOD 199,142,887 226,763,722
Undistributed investment income--net 870,538 917,138
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
---------------------------------
1999 1998
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 14,542,524 16,637,744
Shares issued for dividends reinvested 620,493 1,312,735
Shares redeemed (15,842,402) (17,963,303)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (679,385) (12,824)
- --------------------------------------------------------------------------------
CLASS B(A)
Shares sold 171,590 268,507
Shares issued for dividends reinvested 175,321 361,281
Shares redeemed (1,406,283) (531,471)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,059,372) 98,317
- --------------------------------------------------------------------------------
CLASS C
Shares sold 18,015 17,550
Shares issued for dividends reinvested 1,685 2,787
Shares redeemed (18,040) (13,297)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,660 7,040
- --------------------------------------------------------------------------------
CLASS R
Shares sold 72 982
Shares issued for dividends reinvested 27 34
Shares redeemed (33) (907)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 66 109
A DURING THE PERIOD ENDED OCTOBER 31, 1999, 852,883 CLASS B SHARES REPRESENTING
$17,862,901 WERE AUTOMATICALLY CONVERTED TO 825,011 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended October 31,
------------------------------------------------------------------
CLASS A SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 21.07 24.30 22.42 21.59 19.83
Investment Operations:
Investment income--net .11 (a) .13 .12 .22 .31
Net realized and unrealized gain (loss)
on investments 2.50 .23 5.40 3.01 2.04
Total from Investment Operations 2.61 .36 5.52 3.23 2.35
Distributions:
Dividends from investment income--net (.11) (.11) (.20) (.31) (.05)
Dividends from net realized gain
on investments (1.57) (3.48) (3.44) (2.09) (.54)
Total Distributions (1.68) (3.59) (3.64) (2.40) (.59)
Net asset value, end of period 22.00 21.07 24.30 22.42 21.59
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 13.24 1.53 27.43 15.95 12.43
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 1.18 1.19 1.18 1.19 1.22
Ratio of interest expense, loan commitment
fees and dividends on securities sold
short to average net assets .00 (c) .00 (c) - -- .05
Ratio of net investment income
to average net assets .51 .54 .51 .94 1.51
Portfolio Turnover Rate 141.85 159.30 123.53 147.64 244.82
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 171,526 178,593 206,333 207,388 208,786
A BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
B EXCLUSIVE OF SALES CHARGE.
C AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
-------------------------------------------------------------------
CLASS B SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 20.41 23.70 21.92 21.17 19.58
Investment Operations:
Investment income (loss)--net (.05)(a) (.04) (.04) .04 .14
Net realized and unrealized gain (loss)
on investments 2.42 .23 5.29 2.96 2.02
Total from Investment Operations 2.37 .19 5.25 3.00 2.16
Distributions:
Dividends from investment income--net - - (.03) (.16) (.03)
Dividends from net realized gain
on investments (1.57) (3.48) (3.44) (2.09) (.54)
Total Distributions (1.57) (3.48) (3.47) (2.25) (.57)
Net asset value, end of period 21.21 20.41 23.70 21.92 21.17
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 12.38 .75 26.55 15.05 11.50
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 1.94 1.95 1.93 1.94 1.97
Ratio of interest expense, loan commitment
fees and dividends on securities sold
short to average net assets .00(c) .00(c) - - .05
Ratio of net investment income (loss)
to average net assets (.25) (.22) (.27) .19 .71
Portfolio Turnover Rate 141.85 159.30 123.53 147.64 244.82
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 26,897 47,512 52,847 44,152 44,365
A BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
B EXCLUSIVE OF SALES CHARGE.
C AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANACIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
-------------------------------------------------------------------
CLASS C SHARES 1999 1998 1997 1996 1995(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 20.28 23.67 21.90 21.16 21.21
Investment Operations:
Investment income (loss)--net (.06)(b) (.05) (.14)(b) .06 (.04)
Net realized and unrealized gain (loss)
on investments 2.41 .20 5.35 3.05 (.01)
Total from Investment Operations 2.35 .15 5.21 3.11 (.05)
Distributions:
Dividends from investment income--net - (.06) - (.28) -
Dividends from net realized gain
on investments (1.57) (3.48) (3.44) (2.09) -
Total Distributions (1.57) (3.54) (3.44) (2.37) -
Net asset value, end of period 21.06 20.28 23.67 21.90 21.16
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 12.25 .65 26.38 15.74 (.24)(d)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.96 2.08 2.00 1.94 .36(d)
Ratio of net investment income (loss)
to average net assets (.29) (.35) (.56) (.51) (.18)(d)
Portfolio Turnover Rate 141.85 159.30 123.53 147.64 244.82
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 712 652 594 6 1
A FROM SEPTEMBER 1, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 1995.
B BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
C EXCLUSIVE OF SALES CHARGE.
D NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
-------------------------------------------------------------------
CLASS R SHARES 1999 1998 1997 1996 1995(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 20.87 24.30 22.42 21.60 21.61
Investment Operations:
Investment income--net .06(b) .21 .19 .40 -
Net realized and unrealized gain (loss)
on investments 2.47 (.01) 5.38 2.87 (.01)
Total from Investment Operations 2.53 .20 5.57 3.27 (.01)
Distributions:
Dividends from investment income--net (.13) (.15) (.25) (.36) -
Dividends from net realized gain
on investments (1.57) (3.48) (3.44) (2.09) -
Total Distributions (1.70) (3.63) (3.69) (2.45) -
Net asset value, end of period 21.70 20.87 24.30 22.42 21.60
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(%) 12.99 .77 27.74 16.17 (.05)(c
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.40 1.00 .94 .97 .17(c)
Ratio of net investment income
to average net assets .29 .51 .71 1.07 --
Portfolio Turnover Rate 141.85 159.30 123.53 147.64 244.82
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 8 6 5 4 1
A FROM SEPTEMBER 1, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 1995.
B BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
C NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The 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"), which is a wholly-owned subsidiary of Mellon Financial Corporation.
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 series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last
sales price on the national securities market. Securities not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Securities for which there are no such valuations are valued at fair value as
determined in good faith under the direction of the Board of Trustees.
Investments denominated in foreign currencies are translated to U.S. dollars at
the prevailing rates of exchange. Forward currency exchange contracts are valued
at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund receives net
earnings credits based on available cash balances left on deposit.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code 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 $500 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, 1999 was approximately $12,300, with a related weighted average
annualized interest rate of 5.30%.
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
$44,540 during the period ended October 31, 1999 from commissions earned on
sales of the fund's shares.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares, respectively. During the period ended
October 31, 1999, Class B and Class C shares were charged $301,614 and $4,856,
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, 1999, Class A, Class B and Class C
shares were charged $446,550, $100,538 and $1,619, 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, 1999, the fund was charged $121,283 pursuant to the transfer
agency agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended October 31, 1999, the fund was
charged $23,482 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(E) During the period ended October 31, 1999, the fund incurred total brokerage
commissions of $721,856, of which $11,444 was paid to Dreyfus Brokerage
Services, a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and financial futures, during the period ended
October 31, 1999, amounted to $298,502,095 and $336,319,550, 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, 1999, there were no forward currency exchange contracts
outstanding.
The fund may invest in financial futures contracts in order to gain exposure to
or protect against changes in the market. The fund is exposed to market risk as
a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the fund to "mark to market" on a daily
basis, which reflects the change in the market value of the contract at the
close of each day' s trading.
Accordingly, variation margin payments are received or made to reflect daily
unrealized gains or losses. When the contracts are closed, the fund recognizes a
realized gain or loss. These investments require initial margin deposits with a
custodian, which consist of cash or cash equivalents, up to approximately 10% of
the contract amount. The amount of these deposits is determined by the exchange
or Board of Trade on which the contract is traded and is subject to change. At
October 31, 1999, there were no financial futures contracts outstanding.
(B) At October 31, 1999, accumulated net unrealized appreciation on investments
was $36,525,106, consisting of $37,697,802 gross unrealized appreciation and
$1,172,696 gross unrealized depreciation.
At October 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS PREMIER VALUE FUND
We have audited the accompanying statement of assets and liabilities, including
the statement of investments of Dreyfus Premier Value Fund (one of the Series
constituting Dreyfus Premier Value Equity Funds) as of October 31, 1999, 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, 1999 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, 1999, 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 8, 1999
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the Fund hereby designates $1.572 per share as
long-term capital gain distribution paid on December 14, 1998.
The fund also designates 99.53% of the ordinary dividends paid during the fiscal
year ended October 31, 1999 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2000 of the
percentage applicable to the preparation of their 1999 income tax returns.
The Fund
NOTES
For More Information
Dreyfus Premier Value Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 037/632AR9910
