Dreyfus
Premier International
Value Fund
SEMIANNUAL REPORT April 30, 2000
(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
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
15 Financial Highlights
20 Notes to Financial Statements
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 semiannual report for Dreyfus Premier
International Value Fund, covering the six-month period from November 1, 1999
through April 30, 2000. 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, it had become apparent that global economic
growth was substantially stronger than many analysts had expected. In fact, many
global markets had already rebounded sharply from 1998's currency and credit
crises in emerging market countries. The rally continued through the final two
months of 1999 and into the first quarter of 2000, before peaking in early
March. In April, many markets around the world experienced heightened levels of
volatility when expensively priced technology stocks began to decline sharply in
the wake of evidence that inflationary pressures were building.
We appreciate your confidence over the past six months 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
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Sandor Cseh, Senior Portfolio Manager
How did Dreyfus Premier International Value Fund perform relative to its
benchmark?
For the six-month period ended April 30, 2000, the fund's Class A shares
achieved a total return of 0.92% , Class B shares returned 0.58%, Class C
returned 0.59% and Class R shares returned 1.07%.(1) This compares with a 6.72%
return for the fund' s benchmark, the Morgan Stanley Capital International
Europe, Australasia, Far East (MSCI EAFE) Index, for the reporting period.(2)
The public offering of the fund's Class T shares commenced on March 1, 2000.
From March 1, 2000 through April 30, 2000, the fund produced a total return of
0.77% for Class T shares.(1)
We attribute the fund' s relative underperformance to investor preference for
international growth stocks. Although value stocks rebounded at the end of the
reporting period, for most of the period investors strongly favored the
growth-oriented investment style over the value-oriented investment style.
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 The Fun
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
represented on the MSCI EAFE Index. We make a base-line 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 eliminates
approximately 90% of purchase candidates, analysts perform extensive fundamental
research and conduct on-site visits to determine which securities we will buy
for the portfolio.
What other factors influenced the fund's performance?
A notable global convergence emerged during the reporting period. Market
sectors, rather than national markets, appeared to become a driving factor in
stock performance. When value stocks performed poorly in the domestic U.S.
markets, they performed poorly in Europe and Asia as well. When the technology
and growth stock-rich Nasdaq stumbled in mid-March amid renewed concerns about
higher interest rates, international value stocks followed their domestic
counterparts in regaining investor favor.
That said, however, national and regional markets continued to be driven by
local circumstances that affected fund performance. Japan was a particular
example. Long mired in economic recession and market decline, Japanese equities
offered what we felt to be exceptional value investment opportunities.
Technology issues performed well, but became expensive by value standards. While
growth remains slow, difficult steps towards fundamental corporate-sector and
financial-sector restructurings are being taken.
European markets advanced sharply, in response to the trend towards replacing a
centralized economic model with a market-oriented emphasis on creating
shareholder value. Global markets are forcing businesses to rethink
long-standing corporate values and place new emphasis on competitiveness,
leading to a wave of cross-border merg
ers and acquisitions. In dollar terms, however, the continuing weakness of the
euro had an adverse effect on investment performance.
What is the fund's current strategy?
Over the period, we made small changes in country allocations, and are close to
a neutral, benchmark position. We have slightly reduced our emphasis on Japan
and Europe, with a somewhat larger reduction in the United Kingdom. A more
positive outlook for the emerging markets led us to increase exposure to
Southeast Asia, Latin America and Eastern Europe, but this sector remains a
relatively small portion of the total portfolio.
On an industrial-sector basis, however, we made more substantial changes.
Because the shares of many of the fund's technology investments, particularly in
Japan, reached prices at which we no longer consider them value investments, we
reduced our exposure to this segment. We used the proceeds to increase
investments in financial services, pharmaceuticals and other consumer
non-durable manufacturers.
May 15, 2000
(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 AND CLASS T 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. 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. -- REFLECTS NET REINVESTMENT OF
DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. 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.
The Fund
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF INVESTMENTS
April 30, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
COMMON STOCKS--90.9% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
AUSTRALIA--1.5%
Australia & New Zealand Banking 12,230 84,522
Goodman Fielder 34,966 25,920
110,442
AUSTRIA--.6%
Bank Austria 1,050 46,598
BELGIUM--.7%
Dexia 379 (a) 49,149
Dexia (Strips) 379 (a) 7
49,156
BRAZIL--.9%
Petroleo Brasileiro, ADR 1,100 26,400
Telecomunicacoes Brasileiras, ADS 304 35,929
62,329
DENMARK--.6%
Jyske Bank 2,100 41,007
FINLAND--.5%
Kesko, Cl. B 3,200 34,921
FRANCE--9.4%
Air Liquide 597 77,745
Alstom 1,200 29,912
Assurances Generales de France 1,375 68,336
Banque Nationale de Paris 1,200 97,015
Bongrain 110 31,311
Compagnie Generale des Etablissements Michelin, Cl. B 1,756 58,287
PSA Peugeot Citroen 80 16,558
Societe Generale, Cl. A 140 29,003
Suez Lyonnaise des Eaux 300 47,061
Thompson CSF 1,300 46,225
Total Fina Elf 1,874 141,721
Usinor 2,500 32,852
676,026
GERMANY--8.4%
Bayer 2,300 95,273
Deutsche Bank 1,161 78,025
Deutsche Lufthansa 3,550 74,091
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
GERMANY (CONTINUED)
Merck KGaA 2,400 68,969
Metallgesellschaft 2,000 31,665
Siemens 340 50,183
Veba 1,900 93,909
Viag 2,860 55,139
Volkswagen 1,480 55,653
602,907
GREECE--1.2%
Hellenic Telecommunication Organization, ADS 7,600 88,825
HONG KONG--1.4%
CDL Hotels International 20,000 5,777
Hongkong Electric 29,689 92,622
98,399
INDIA--.4%
Videsh Sanchar Nigam, ADS 1,500 28,350
ITALY--3.6%
Banca Popolare di Bergamo Credito Varesino 1,800 32,678
ENI 12,000 59,453
ENI, ADS 900 46,800
San Paolo-IMI 3,100 43,527
Telecom Italia 12,190 76,324
258,782
JAPAN--24.4%
Aiful 450 45,316
Canon 3,000 136,918
Credit Saison 5,700 92,946
Dai-Tokyo Fire & Marine Insurance 11,000 29,776
Fuji Machine Manufacturing 1,000 69,383
Honda Motor 1,000 44,623
KATOKICHI 1,000 24,298
Mabuchi Motor 800 87,953
Marubeni 22,000 63,618
Matsumotokiyoshi 1,300 102,088
Minebea 7,000 85,366
Mitsubishi Heavy Industries 9,000 27,938
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
NAMCO 1,400 57,040
NIPPON TELEGRAPH AND TELEPHONE 2 24,760
Nichiei 1,000 19,771
Nippon Express 18,000 113,415
Nishimatsu Construction 7,000 22,312
Rinnai 2,800 51,219
Rohm 300 100,333
SANKYO COMPANY 3,000 65,965
Sekisui Chemical 6,000 21,951
77 Bank 8,000 57,354
Shin-Etsu Chemical 1,000 52,753
Sony 600 69,041
TDK 1,000 133,684
Toyota Motor 1,000 49,612
Yamanouchi Pharmaceutical 2,000 105,506
1,754,939
MEXICO--.3%
Telefonos de Mexico, ADR 400 23,525
NETHERLANDS--6.5%
ABN AMRO 3,566 73,452
Akzo Nobel, ADS 1,300 53,970
Buhrmann 2,375 61,231
Hollandsche Beton Groep 728 8,938
Hunter Douglas 2,465 56,266
ING Groep 1,506 82,201
Stork 3,271 40,455
Vedior 3,500 37,081
Wolters Kluwer 2,180 51,465
465,059
NEW ZEALAND--1.1%
Fletcher Challenge Paper 30,277 33,970
Telecom Corporation of New Zealand 11,400 48,171
82,141
NORWAY--1.1%
Norsk Hydro 900 32,965
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NORWAY (CONTINUED)
Orkla, Cl. B 2,800 43,372
76,337
PHILIPPINES--.3%
Manila Electric 10,600 19,000
PORTUGAL--1.7%
EDP 2,500 44,333
Portugal Telecom 7,000 78,108
122,441
SINGAPORE--1.7%
Creative Technology 400 10,950
Oversea--Chinese Banking 8,000 54,839
United Overseas Bank 8,560 59,681
125,470
SOUTH KOREA--.9%
Korea Electric Power, ADR 2,400 39,300
Pohang Iron & Steel, ADR 1,100 23,100
62,400
SPAIN--4.1%
Banco Bilbao Vizcaya Argentaria 3,000 40,923
Banco Popular Espanol 2,200 59,420
Endesa 5,190 112,614
Repsol-YPF, ADS 4,100 84,563
297,520
SWEDEN--1.1%
Autoliv 2,350 66,033
Investor 1,200 16,927
82,960
SWITZERLAND--5.0%
Barry Callebaut 371 49,513
Forbo Holding 75 27,069
Novartis 80 111,825
Sulzer 75 48,045
Swisscom 110 38,807
UBS 330 80,901
356,160
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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UNITED KINGDOM--13.5%
BOC 3,284 53,887
Barclays 2,332 59,444
British Aerospace 11,750 71,868
British Airways 4,540 23,452
Bunzl 18,777 84,388
Laird 11,000 34,665
Morgan Crucible 17,011 67,472
PowerGen 7,305 45,900
Rexam 15,700 59,774
Rio Tinto 3,813 58,897
Royal & Sun Alliance Insurance 13,278 73,897
Royal Bank of Scotland 4,091 63,286
Safeway 15,923 53,516
Scottish & Southern Electric 4,800 40,350
Tomkins 16,869 51,655
Unilever 12,000 71,767
Wolseley 10,000 54,645
968,863
TOTAL COMMON STOCKS
(cost $6,657,399) 6,534,557
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PREFERRED STOCKS--.2%
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GERMANY:
Rheinmetall
(cost $27,260) 1,200 11,131
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Principal
SHORT-TERM INVESTMENTS--.6% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS
5.62%, 7/13/2000
(cost $42,511) 43,000 42,511
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TOTAL INVESTMENTS (cost $6,727,170) 91.7% 6,588,199
CASH AND RECEIVABLES (NET) 8.3% 598,633
NET ASSETS 100.0% 7,186,832
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 6,727,170 6,588,199
Cash 379,696
Cash denominated in foreign currencies 129,442 126,521
Receivable for investment securities sold 56,674
Dividends and interest receivable 37,251
Prepaid expenses 49,864
Due from The Dreyfus Corporation and affiliates 522
7,238,727
--------------------------------------------------------------------------------
LIABILITIES ($):
Payable for investment securities purchased 30,605
Payable for shares of Beneficial Interest redeemed 546
Accrued expenses 20,744
51,895
--------------------------------------------------------------------------------
NET ASSETS ($) 7,186,832
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 6,799,725
Accumulated investment (loss) (18,738)
Accumulated net realized gain (loss) on investments and
foreign currency transactions 550,870
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (145,025)
--------------------------------------------------------------------------------
NET ASSETS ($) 7,186,832
<TABLE>
<CAPTION>
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NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
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Net Assets ($) 4,449,108 874,315 697,752 1,164,649 1,008
Shares Outstanding 337,834 67,050 53,474 88,284 76.57
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 13.17 13.04 13.05 13.19 13.16
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $8,405 foreign taxes withheld at source) 63,404
Interest 2,648
TOTAL INCOME 66,052
EXPENSES:
Management fee--Note 3(a) 34,831
Registration fees 17,649
Prospectus and shareholders' reports 12,316
Custodian fees 10,787
Shareholder servicing costs--Note 3(c) 8,057
Auditing fees 7,961
Distribution fees--Note 3(b) 5,894
Trustees' fees and expenses--Note 3(d) 957
Legal fees 410
Loan commitment fees--Note 2 44
Miscellaneous 9,586
TOTAL EXPENSES 108,492
Less--reduction in management fee due to
undertaking--Note 3(a) (34,342)
NET EXPENSES 74,150
INVESTMENT (LOSS) (8,098)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 558,435
Net realized gain (loss) on forward currency exchange contracts (5,734)
NET REALIZED GAIN (LOSS) 552,701
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions (482,001)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 70,700
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 62,602
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income (loss)--net (8,098) 9,182
Net realized gain (loss) on investments 552,701 439,824
Net unrealized appreciation (depreciation)
on investments (482,001) 858,600
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 62,602 1,307,606
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (10,221) (19,976)
Class B shares -- (858)
Class C shares -- (720)
Class R shares (5,316) (10,045)
Net realized gain on investments:
Class A shares (266,622) (13,698)
Class B shares (63,647) (2,058)
Class C shares (38,555) (1,920)
Class R shares (74,667) (5,358)
TOTAL DIVIDENDS (459,028) (54,633)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 1,857,968 106,274
Class B shares 93,878 382,720
Class C shares 123,121 28,662
Class R shares 77,220 840,540
Class T shares 1,000 --
Dividends reinvested:
Class A shares 276,454 33,571
Class B shares 53,213 2,809
Class C shares 38,413 2,640
Class R shares 40,457 5,520
Cost of shares redeemed:
Class A shares (1,558,209) (7,946)
Class B shares (179,497) (39,350)
Class C shares (11,423) (3,128)
Class R shares (57) (434,300)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 812,538 918,012
TOTAL INCREASE (DECREASE) IN NET ASSETS 416,112 2,170,985
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 6,770,720 4,599,735
END OF PERIOD 7,186,832 6,770,720
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000 FOR
CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 141,238 7,938
Shares issued for dividends reinvested 20,786 2,884
Shares redeemed (118,275) (609)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 43,749 10,213
--------------------------------------------------------------------------------
CLASS B
Shares sold 6,996 28,995
Shares issued for dividends reinvested 4,028 242
Shares redeemed (13,253) (2,836)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,229) 26,401
--------------------------------------------------------------------------------
CLASS C
Shares sold 9,257 2,190
Shares issued for dividends reinvested 2,906 227
Shares redeemed (847) (259)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 11,316 2,158
--------------------------------------------------------------------------------
CLASS R
Shares sold 5,621 71,654
Shares issued for dividends reinvested 3,040 474
Shares redeemed (4) (32,501)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 8,657 39,627
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 77 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000 FOR
CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
<S> <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.
Six Months Ended
April 30, 2000 Year Ended October 31
---------------------
CLASS A SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.98 11.32 12.50
Investment Operations:
Investment income (loss)--net (.01)(b) .03(b) .05
Net realized and unrealized gain (loss)
on investments .15 2.75 (1.23)
Total from Investment Operations .14 2.78 (1.18)
Distributions:
Dividends from investment income--net (.04) (.07) --
Dividends from net realized gain on investments (.91) (.05) --
Total Distributions (.95) (.12) --
Net asset value, end of period 13.17 13.98 11.32
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TOTAL RETURN (%)(C) .92(d) 24.75 (9.44)(d)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .99(d) 2.00 1.19(d)
Ratio of net investment income (loss)
to average net assets (.05)(d) .22 .39(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .49(d) 1.31 .92(d)
Portfolio Turnover Rate 21.69(d) 41.73 17.71(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 4,449 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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
April 30, 2000 Year Ended October 31
-------------------------
CLASS B SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.86 11.27 12.50
Investment Operations:
Investment (loss)--net (.06)(b) (.08)(b) (.01)
Net realized and unrealized gain (loss)
on investments .15 2.74 (1.22)
Total from Investment Operations .09 2.66 (1.23)
Distributions:
Dividends from investment income--net -- (.02) --
Dividends from net realized gain on investments (.91) (.05) --
Total Distributions (.91) (.07) --
Net asset value, end of period 13.04 13.86 11.27
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) .58(d) 23.70 (9.84)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.38(d) 2.75 1.64(d)
Ratio of net investment (loss)
to average net assets (.45)(d) (.60) (.07)(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .48(d) 1.27 .92(d)
Portfolio Turnover Rate 21.69(d) 41.73 17.71(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 874 960 483
(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.
Six Months Ended
April 30, 2000 Year Ended October 31
---------------------------
CLASS C SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.87 11.27 12.50
Investment Operations:
Investment (loss)--net (.06)(b) (.07)(b) (.01)
Net realized and unrealized gain (loss)
on investments .15 2.74 (1.22)
Total from Investment Operations .09 2.67 (1.23)
Distributions:
Dividends from investment income--net -- (.02) --
Dividends from net realized gain on investments (.91) (.05) --
Total Distributions (.91) (.07) --
Net asset value, end of period 13.05 13.87 11.27
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) .59(d) 23.77 (9.84)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.38(d) 2.75 1.64(d)
Ratio of net investment (loss)
to average net assets (.41)(d) (.55) (.06)(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .50(d) 1.31 .92(d)
Portfolio Turnover Rate 21.69(d) 41.73 17.71(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 698 585 451
(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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended
April 30, 2000 Year Ended October 31
---------------------------
CLASS R SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.01 11.33 12.50
Investment Operations:
Investment income--net .01(b) .08(b) .06
Net realized and unrealized gain (loss)
on investments .15 2.74 (1.23)
Total from Investment Operations .16 2.82 (1.17)
Distributions:
Dividends from investment income--net (.07) (.09) --
Dividends from net realized gain on investments (.91) (.05) --
Total Distributions (.98) (.14) --
Net asset value, end of period 13.19 14.01 11.33
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TOTAL RETURN (%) 1.07(c) 25.12 (9.36)(c)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .87(c) 1.75 1.04(c)
Ratio of net investment income
to average net assets .07(c) .62 .53(c)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .49(c) 1.32 .92(c)
Portfolio Turnover Rate 21.69(c) 41.73 17.71(c)
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Net Assets, end of period ($ x 1,000) 1,165 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.
</TABLE>
Six Months
Ended
April 30, 2000(a)
CLASS T SHARES (Unaudited)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.06
Investment Operations:
Investment income--net .02(b)
Net realized and unrealized gain (loss) on investments .08
Total from Investment Operations .10
Net asset value, end of period 13.16
--------------------------------------------------------------------------------
TOTAL RETURN (%)(C) .77(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .38(d)
Ratio of net investment income to average net assets .20(d)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation .20(d)
Portfolio Turnover Rate 21.69(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000.
(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
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier International Value Fund (the "fund") is a separate diversified
series of Dreyfus Premier Value Equity Funds (the "Company") which is registered
under the Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company and operates a series company, currently offering
two series including the fund. The fund's investment objective is long-term
capital growth. The Dreyfus Corporation (the "Manager") serves as the fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.,
which is a wholly-owned subsidiary of Mellon Financial Corporation.
As of April 30, 2000, MBC Investment Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares:
Class A 302,999 Class C 43,005
Class B 43,015 Class R 43,448
On November 3, 1999, the Board of Trustees approved the addition of Class T
shares, which became effective on March 1, 2000.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. 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, Class R and Class T
shares. Class A and Class T 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 (Class B shares automatically convert to
Class A shares after six years) 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 The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 received net
earnings credits of $845 during the period ended April 30, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $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 commit
ment fees on its pro rata portion of the Facility. Interest is charged to the
fund at rates based on prevailing market rates in effect at the time of
borrowings. During the period ended April 30, 2000, 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 has undertaken from November 1, 1999
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 fees, interest on
borrowings and extraordinary expenses, exceed an annual rate of 1.75% of the
value of the fund's average daily net assets. The reduction in management fee,
pursuant to the undertaking, amounted to $34,342 during the period ended April
30, 2000.
DSC retained $97 during the period ended April 30, 2000 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, Class C and Class T 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 and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
April 30, 2000, Class B, Class C and Class T shares were charged $3,451, $2,442
and $1 respectively, pursuant to the Plan, of which $727, $583 and $1 for Class
B, Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
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 The Fun
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
shareholder accounts, such as answering shareholder inquiries regarding the fund
and providing reports and other information, and services related to the
maintenance of shareholder accounts. The distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The distributor determines the
amounts to be paid to Service Agents. During the period ended April 30, 2000,
Class A, Class B, Class C and Class T shares were charged $5,292, $1,150, $814
and $1 respectively, pursuant to the Shareholder Services Plan, of which $1,191,
$242, $194 and $1, for Class A, Class B, Class C and Class T shares,
respectively, were paid to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2000, the fund was charged $507 pursuant to the transfer agency
agreement.
(d) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended April 30, 2000, amounted to $1,455,191 and $1,534,416,
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 con
tract 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 April 30, 2000, there were no open forward currency exchange
contracts.
(b) At April 30, 2000, accumulated net unrealized depreciation on investments
was $138,971, consisting of $810,132 gross unrealized appreciation and $949,103,
gross unrealized depreciation.
At April 30, 2000, 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
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
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 173SA004
