Dreyfus Premier
Value Fund
ANNUAL REPORT October 31, 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 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
21 Notes to Financial Statements
27 Report of Independent Auditors
28 Important Tax Information
FOR MORE INFORMATION
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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, 1999 through October 31, 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,
Timothy M. Ghriskey.
The Standard & Poor' s 500 Composite Stock Price Index, a broad measure of
large-cap stock performance, rose more than 6% over the 12-month reporting
period. Investor enthusiasm over technology stocks drove most major stock market
indices to new highs. Conversely, in the first nine months of 2000, the equity
investment environment was marked by dramatic price fluctuations. Additionally,
the moderating effects of the Federal Reserve Board's (the "Fed") interest-rate
hikes during the first half of 2000 helped the Fed to achieve its goal of
slowing the U.S. economy. Other factors such as higher energy prices and a weak
euro also served to slow economic growth.
Since stocks provided returns well above their historical averages during the
second half of the 1990s, some investors may have developed unrealistic
expectations in equities. Recent volatility has reminded investors of both the
risks of investing and the importance of fundamental research and investment
selection.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620.
Thank you for investing in Dreyfus Premier Value Fund.
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 2000
DISCUSSION OF FUND PERFORMANCE
Timothy M. Ghriskey, Senior Portfolio Manager
How did Dreyfus Premier Value Fund perform relative to its benchmark?
For the 12-month period ended October 31, 2000, the fund achieved total returns
of 9.00% for Class A Shares; 8.12% for Class B Shares; 8.02% for Class C Shares;
and 8.97% for Class R Shares.(1) For the same period, the Russell 1000 Value
Index, the fund' s benchmark, achieved a total return of 5.52% .(2)
From its March 1, 2000 inception through October 31, 2000, the fund's Class T
shares achieved a total return of 13.68%.(1)
We attribute the fund's strong performance to good individual stock selections
in a variety of industry groups. The fund also benefited from our decisions to
emphasize certain industry groups in light of their long-term growth prospects.
What is the fund's investment approach?
Dreyfus Premier Value Fund invests primarily in large-capitalization,
value-oriented companies. 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 appear underpriced in
relation to their intrinsic values, 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 examine the fundamentals of each top-ranked
candidate, providing additional information to help the portfolio manager decide
which to purchase or sell.
In addition to identifying attractive investment opportunities, our approach is
designed to limit the risks associated with exposure to individual market
sectors. Instead of attempting to predict which industries or sectors are likely
to perform best in the near future, we allocate the fund's resources among
sectors in roughly the same pro The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
portions as our benchmark. However, we may choose to moderately emphasize
certain sectors that we believe offer greater long-term growth prospects than
the overall market.
What other factors influenced the fund's performance?
The fund's performance during the first half of the period was largely driven by
a sharp rise in technology stocks. When many higher valuation technology-related
stocks failed to meet our value-oriented investment criteria, we identified and
invested in several large, well-established technology companies, such as Intel
and IBM, that did meet our standards. When many higher valuation technology
stocks suffered steep declines during the second half of the period, our
technology holdings preserved a significant percentage of the gains achieved
earlier in the period.
From mid-March 2000 through the end of the period, market strength shifted from
technology to other industries and sectors. The fund realized its greatest gains
during these months, with positive contributions from a wide variety of industry
groups, including financial services, utilities, communications services, and
consumer cyclicals.
Financial services represented the fund's largest single group of holdings. We
realized strong returns from global institutions, such as Citigroup and The Bank
of New York, as well as insurers, such as Lincoln National and Exel Capital.
Among utilities, we concentrated on companies, such as Coastal and Dynegy, that
were well positioned to capitalize on rising energy prices. In communications
services, we focused on fast-growing businesses, such as SBC Communications. In
the consumer cyclical area, the fund benefited from opportunistic buying and
selling of companies such as General Motors and Cendant.
What is the fund's current strategy?
As of October 31, 2000, we have continued to allocate a relatively high
percentage of the fund's assets to value-oriented technology stocks. We believe
that technology remains a driving force behind U.S. economic growth, delivering
products that stimulate consumer spending. In our
view, technology also has the ability to help companies grow their earnings
while limiting price increases. Although many technology stocks appear
overpriced compared to their intrinsic values, we have continued to find
attractive investment opportunities in this important area that meet our
value-oriented investment criteria.
We have also continued to allocate a significant percentage of the fund's assets
to the financial services group. As prices of financial stocks have benefited
from falling interest rates, we believe the sector's underlying fundamentals are
strong and that shares of many leading financial services companies offer
attractive long-term investment opportunities.
We are pleased that value stocks showed sustained strength during the second
half of the reporting period. While we can't be sure this trend will continue,
we believe value-oriented stocks remain attractively priced relative to
growth-oriented stocks, and we continue to maintain our strict commitment to
value investing.
November 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN THE
CASE OF CLASS A 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.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE RUSSELL 1000 VALUE INDEX IS AN
UNMANAGED INDEX WHICH MEASURES THE PERFORMANCE OF THOSE RUSSELL 1000 COMPANIES
WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED GROWTH VALUES.
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
((+) )SOURCE: LIPPER 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 IN
THE RUSSELL 1000 VALUE INDEX ON THAT DATE. FOR COMPARATIVE PURPOSES, THE VALUE
OF THE 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, CLASS R, AND CLASS T SHARES WILL VARY FROM THE PERFORMANCE OF CLASS
A SHARES SHOWN ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM
INITIAL SALES CHARGE ON CLASS A SHARES AND ALL OTHER APPLICABLE FEES AND
EXPENSES. THE 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 REPRESENTS APPROXIMATELY 89% OF THE
TOTAL MARKET CAPITALIZATION OF THE RUSSELL 3000 INDEX. THE INDEX DOES 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.
Average Annual Total Returns AS OF 10/31/00
Inception From
Date 1 Year 5 Years 10 Years Inception
--------------------------------------------------------------------------------
CLASS A SHARES WITH SALES CHARGE (MAX. 5.75%) 10/16/86 2.74% 11.78% 11.32%
11.95% WITHOUT SALES CHARGE 10/16/86 9.00% 13.11% 11.98% 12.42%
CLASS B SHARES WITH REDEMPTION((+)) 1/15/93 4.17% 12.00% -- 9.69% WITHOUT
REDEMPTION 1/15/93 8.12% 12.25% -- 9.69%
CLASS C SHARES WITH REDEMPTION((+)(+)) 9/1/95 7.04% 12.29% -- 11.81% WITHOUT
REDEMPTION 9/1/95 8.02% 12.29% -- 11.81%
CLASS R SHARES 9/1/95 8.97% 12.29% -- 12.53%
--------------------------------------------------------------------------------
Actual Aggregate Total Returns AS OF 10/31/00
Inception From
Date 1 Year 5 Years 10 Years Inception
--------------------------------------------------------------------------------
CLASS A SHARES WITH SALES CHARGE (MAX. 4.5%) 3/1/00 -- -- -- 8.58% WITHOUT SALES
CHARGE 3/1/00 -- -- -- 13.68%
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 IS CONVERTED 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.
The Fund
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF INVESTMENTS
October 31, 2000
STATEMENT OF INVESTMENTS
COMMON STOCKS--97.4% Shares Value ($)
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BANKING--7.3%
Bank of America 45,000 2,162,812
Bank of New York 64,500 3,712,781
Chase Manhattan 46,200 2,102,100
FleetBoston Financial 25,700 976,600
Wells Fargo 86,800 4,019,925
12,974,218
COMMERCIAL SERVICES--.3%
McGraw-Hill Cos. 7,100 455,731
CONSUMER CYCLICAL--.3%
Clear Channel Communications 9,200 (a) 552,575
CONSUMER DURABLES--.5%
General Motors 14,746 916,095
CONSUMER NON-DURABLES--10.3%
Anheuser-Busch Cos. 41,000 1,875,750
Coca-Cola 15,800 953,925
Flowers Industries 52,900 813,337
Kimberly-Clark 15,400 1,016,400
Nabisco Holdings, Cl. A 62,800 1,813,350
NIKE, Cl. B 21,400 854,662
PepsiCo 35,000 1,695,313
Philip Morris Cos. 123,800 4,534,175
Procter & Gamble 36,400 2,600,325
UST 85,200 2,151,300
18,308,537
CONSUMER SERVICES--3.2%
Comcast, Cl. A 24,600 (a) 1,002,450
Disney (Walt) 88,300 3,162,244
Viacom, Cl. B 25,400 (a) 1,444,625
5,609,319
ELECTRONIC TECHNOLOGY--6.1%
Boeing 24,300 1,647,844
Compaq Computer 120,600 3,667,446
Hewlett-Packard 28,200 1,309,537
COMMON STOCKS (CONTINUED) Shares Value ($)
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ELECTRONIC TECHNOLOGY (CONTINUED)
Intel 21,300 958,500
International Business Machines 13,000 1,280,500
Micron Technology 48,800 (a) 1,695,800
United Technologies 2,100 146,606
10,706,233
ENERGY MINERALS--6.7%
Anadarko Petroleum 17,900 1,146,495
Conoco, Cl. B 17,400 473,062
Exxon Mobil 99,230 8,850,076
Santa Fe International 39,900 1,456,350
11,925,983
FINANCE--23.3%
American Express 44,500 2,670,000
American General 22,700 1,827,350
American International Group 55,637 5,452,426
Associates First Capital, Cl. A 24,500 909,562
Bank One 49,300 1,799,450
Citigroup 180,833 9,516,337
Federal Home Loan Mortgage 34,100 2,046,000
Federal National Mortgage Association 18,600 1,432,200
Gallagher (Arthur J.) 29,900 1,887,437
Goldman Sachs Group 6,300 628,819
GreenPoint Financial 60,000 1,785,000
Household International 12,700 638,969
John Hancock Financial Services 17,400 (a) 550,275
MBNA 22,600 848,912
Marsh & McLennan Cos. 7,500 980,625
Merrill Lynch 22,500 1,575,000
Morgan Stanley Dean Witter 35,500 2,851,094
PartnerRe 33,300 1,814,850
USA Education 36,200 2,022,675
41,236,981
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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HEALTH SERVICES--1.1%
AmeriSource Health, Cl. A 18,600 (a) 807,938
HCA-Healthcare 26,400 1,054,350
1,862,288
HEALTH TECHNOLOGY--10.1%
ALZA 20,500 1,659,219
Abbott Laboratories 38,300 2,022,719
Alpharma, Cl. A 44,500 1,727,156
American Home Products 12,100 768,350
Baxter International 10,800 887,625
Bristol-Myers Squibb 27,600 1,681,875
Johnson & Johnson 18,100 1,667,462
King Pharmaceuticals 64,000 (a) 2,868,000
Merck & Co. 32,900 2,958,944
Schering-Plough 32,800 1,695,350
17,936,700
NON-ENERGY MINERALS--.9%
Alcoa 57,000 1,635,188
PROCESS INDUSTRIES--2.9%
duPont (E.I.) deNemours 26,800 1,216,050
PPG Industries 21,700 968,362
Union Carbide 42,800 1,840,400
Willamette Industries 31,400 1,140,213
5,165,025
PRODUCER MANUFACTURING--5.1%
Emerson Electric 41,200 3,025,625
General Electric 24,700 1,353,869
Minnesota Mining & Manufacturing 11,300 1,091,862
Tyco International 64,000 3,628,000
9,099,356
RETAIL TRADE--2.5%
Costco Wholesale 23,400 (a) 857,025
Sears, Roebuck & Co. 59,600 1,771,908
Wal-Mart Stores 38,700 1,756,013
4,384,946
TECHNOLOGY--.5%
LifePoint Hospitals 21,100 (a) 817,625
COMMON STOCKS (CONTINUED) Shares Value ($)
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UTILITIES--16.3%
AES 16,700 (a) 943,550
Coastal 35,500 2,678,031
Duke Energy 33,200 2,869,725
Dynegy, Cl. A 33,700 1,560,731
Enron 22,200 1,821,788
Qwest Communications International 19,755 (a) 960,587
SBC Communications 134,596 7,764,507
Southern 18,700 (a) 549,313
Southern Energy 38,900 1,060,025
Sprint (FON Group) 18,300 466,650
Telefonos de Mexico, Cl. L, ADS 16,300 879,181
Verizon Communications 73,936 4,274,434
WorldCom 130,950 (a) 3,110,063
28,938,585
TOTAL COMMON STOCKS
(cost $134,203,261) 172,525,385
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Principal
SHORT-TERM INVESTMENTS--4.4% Amount ($) Value ($)
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U.S TREASURY BILLS :
6.07%, 11/9/2000 188,000 187,750
6.06%, 11/16/2000 115,000 114,715
6%, 11/24/2000 84,000 83,680
5.97%, 12/7/2000 78,000 77,526
5.97%, 12/21/2000 1,210,000 1,199,340
6%, 12/28/2000 710,000 703,049
6.05%, 1/11/2001 4,233,000 4,181,823
6.14%, 1/18/2001 1,292,000 1,274,778
TOTAL SHORT-TERM INVESTMENTS
(cost $7,824,229) 7,822,661
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TOTAL INVESTMENTS (cost $142,027,490) 101.8% 180,348,046
LIABILITIES, LESS CASH AND RECEIVABLES (1.8%) (3,156,985)
NET ASSETS 100.0% 177,191,061
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 142,027,490 180,348,046
Cash 92,238
Receivable for investment securities sold 2,268,913
Dividends receivable 158,037
Receivable for shares of Beneficial Interest subscribed 117,410
Prepaid expenses 21,624
183,006,268
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 169,146
Payable for investment securities purchased 5,457,980
Payable for shares of Beneficial Interest redeemed 119,904
Accrued expenses 68,177
5,815,207
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NET ASSETS ($) 177,191,061
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 125,634,558
Accumulated undistributed investment income--net 848,398
Accumulated net realized gain (loss) on investments 12,387,549
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4(b) 38,320,556
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NET ASSETS ($) 177,191,061
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
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Net Assets ($) 164,534,016 11,936,031 713,553 6,324 1,137
Shares Outstanding 7,529,684 570,195 34,387 293.469 52.219
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NET ASSET VALUE
PER SHARE ($) 21.85 20.93 20.75 21.55 21.77
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Year Ended October 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $7,974 foreign taxes withheld at source) 2,847,850
Interest 220,238
TOTAL INCOME 3,068,088
EXPENSES:
Management fee--Note 3(a) 1,352,185
Shareholder servicing costs--Note 3(c) 621,217
Distribution fees--Note 3(b) 124,845
Professional fees 57,354
Registration fees 47,289
Trustees' fees and expenses--Note 3(d) 37,596
Prospectus and shareholders' reports 25,218
Custodian fees--Note 3(c) 22,708
Loan commitment fees--Note 2 3,096
Miscellaneous 6,194
TOTAL EXPENSES 2,297,702
INVESTMENT INCOME--NET 770,386
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 12,695,503
Net realized gain (loss) on financial futures (2,211)
NET REALIZED GAIN (LOSS) 12,693,292
Net unrealized appreciation (depreciation) on investments 1,795,450
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 14,488,742
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 15,259,128
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
-----------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 770,386 800,499
Net realized gain (loss) on investments 12,693,292 17,030,671
Net unrealized appreciation (depreciation)
on investments 1,795,450 10,093,329
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 15,259,128 27,924,499
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (792,500) (847,057)
Class R shares (26) (42)
Net realized gain on investments:
Class A shares (14,166,860) (12,313,696)
Class B shares (2,161,284) (3,589,217)
Class C shares (61,079) (48,455)
Class R shares (705) (498)
TOTAL DIVIDENDS (17,182,454) (16,798,965)
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 30,468,663 316,761,511
Class B shares 3,869,293 3,646,012
Class C shares 717,083 379,803
Class R shares 1,012 1,563
Class T shares 1,000 --
Dividends reinvested:
Class A shares 13,944,282 12,323,001
Class B shares 1,915,838 3,380,195
Class C shares 27,006 32,265
Class R shares 726 530
Cost of shares redeemed:
Class A shares (50,558,029) (345,359,378)
Class B shares (19,677,565) (29,533,115)
Class C shares (734,509) (378,037)
Class R shares (3,300) (719)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (20,028,500) (38,746,369)
TOTAL INCREASE (DECREASE) IN NET ASSETS (21,951,826) (27,620,835)
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NET ASSETS ($):
Beginning of Period 199,142,887 226,763,722
END OF PERIOD 177,191,061 199,142,887
Undistributed investment income--net 848,398 870,538
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
--------------------------------
2000(a) 1999
-------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS:
CLASS A (B)
Shares sold 1,470,099 14,542,524
Shares issued for dividends reinvested 685,560 620,493
Shares redeemed (2,423,470) (15,842,402)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (267,811) (679,385)
-------------------------------------------------------------------------------
CLASS B (B)
Shares sold 193,141 171,590
Shares issued for dividends reinvested 97,597 175,321
Shares redeemed (988,931) (1,406,283)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (698,193) (1,059,372)
-------------------------------------------------------------------------------
CLASS C
Shares sold 36,075 18,015
Shares issued for dividends reinvested 1,386 1,685
Shares redeemed (36,886) (18,040)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 575 1,660
-------------------------------------------------------------------------------
CLASS R
Shares sold 49 72
Shares issued for dividends reinvested 36 27
Shares redeemed (163) (33)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (78) 66
-------------------------------------------------------------------------------
CLASS T
SHARES SOLD 52 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000
FOR CLASS T SHARES.
(B) DURING THE PERIOD ENDED OCTOBER 31, 2000, 148,735 CLASS B SHARES
REPRESENTING $2,969,946 WERE AUTOMATICALLY CONVERTED TO 143,145 CLASS A SHARES
AND DURING THE PERIOD ENDED OCTOBER 31, 1999, 852,883 CLASS B SHARES
REPRESENTING $17,862,901 WERE AUTOMATICALLY CONVERTED TO 825,011 CLASS A SHARES
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended October 31,
-------------------------------------------------------------------
CLASS A SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 22.00 21.07 24.30 22.42 21.59
Investment Operations:
Investment income--net .10(a) .11(a) .13 .12 .22
Net realized and unrealized gain (loss)
on investments 1.74 2.50 .23 5.40 3.01
Total from Investment Operations 1.84 2.61 .36 5.52 3.23
Distributions:
Dividends from investment income-net (.11) (.11) (.11) (.20) (.31)
Dividends from net realized gain
on investments (1.88) (1.57) (3.48) (3.44) (2.09)
Total Distributions (1.99) (1.68) (3.59) (3.64) (2.40)
Net asset value, end of period 21.85 22.00 21.07 24.30 22.42
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) 9.00 13.24 1.53 27.43 15.95
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.20 1.18 1.19 1.18 1.19
Ratio of net investment income
to average net assets .50 .51 .54 .51 .94
Portfolio Turnover Rate 150.24 141.85 159.30 123.53 147.64
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 164,534 171,526 178,593 206,333 207,388
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
-------------------------------------------------------------------
CLASS B SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 21.21 20.41 23.70 21.92 21.17
Investment Operations:
Investment income (loss)--net (.04)(a) (.05)(a) (.04) (.04) .04
Net realized and unrealized gain (loss)
on investments 1.64 2.42 .23 5.29 2.96
Total from Investment Operations 1.60 2.37 .19 5.25 3.00
Distributions:
Dividends from investment income-net -- -- -- (.03) (.16)
Dividends from net realized gain
on investments (1.88) (1.57) (3.48) (3.44) (2.09)
Total Distributions (1.88) (1.57) (3.48) (3.47) (2.25)
Net asset value, end of period 20.93 21.21 20.41 23.70 21.92
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) 8.12 12.38 .75 26.55 15.05
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.99 1.94 1.95 1.93 1.94
Ratio of net investment income (loss)
to average net assets (.23) (.25) (.22) (.27) .19
Portfolio Turnover Rate 150.24 141.85 159.30 123.53 147.64
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 11,936 26,897 47,512 52,847 44,152
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
-------------------------------------------------------------------
CLASS C SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 21.06 20.28 23.67 21.90 21.16
Investment Operations:
Investment income (loss)--net (.11)(a) (.06)(a) (.05) (.14)a .06
Net realized and unrealized gain (loss)
on investments 1.68 2.41 .20 5.35 3.05
Total from Investment Operations 1.57 2.35 .15 5.21 3.11
Distributions:
Dividends from investment income-net -- -- (.06) -- (.28)
Dividends from net realized gain
on investments (1.88) (1.57) (3.48) (3.44) (2.09)
Total Distributions (1.88) (1.57) (3.54) (3.44) (2.37)
Net asset value, end of period 20.75 21.06 20.28 23.67 21.90
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (B) 8.02 12.25 .65 26.38 15.74
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.03 1.96 2.08 2.00 1.94
Ratio of net investment income (loss)
to average net assets (.59) (.29) (.35) (.56) (.51)
Portfolio Turnover Rate 150.24 141.85 159.30 123.53 147.64
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 714 712 652 594 6
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
-------------------------------------------------------------------
CLASS R SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 21.70 20.87 24.30 22.42 21.60
Investment Operations:
Investment income--net .05(a) .06(a) .21 .19 .40
Net realized and unrealized gain (loss)
on investments 1.75 2.47 (.01) 5.38 2.87
Total from Investment Operations 1.80 2.53 .20 5.57 3.27
Distributions:
Dividends from investment income-net (.07) (.13) (.15) (.25) (.36)
Dividends from net realized gain
on investments (1.88) (1.57) (3.48) (3.44) (2.09)
Total Distributions (1.95) (1.70) (3.63) (3.69) (2.45)
Net asset value, end of period 21.55 21.70 20.87 24.30 22.42
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 8.97 12.99 .77 27.74 16.17
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.37 1.40 1.00 .94 .97
Ratio of net investment income
to average net assets .26 .29 .51 .71 1.07
Portfolio Turnover Rate 150.24 141.85 159.30 123.53 147.64
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 6 8 6 5 4
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended
CLASS T SHARES October 31, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 19.15
Investment Operations:
Investment (loss) (.02)(b)
Net realized and unrealized gain (loss)
on investments 2.64
Total from Investment Operations 2.62
Net asset value, end of period 21.77
--------------------------------------------------------------------------------
TOTAL RETURN (%) 13.68(c,d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.17(d)
Ratio of investment (loss)
to average net assets (.09)(d)
Portfolio Turnover Rate 150.24(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
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 Finanicial Corporation
On November 3, 1999, the Board of Trustees approved the addition of Class T
shares, which became effective 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 of
Beneficial Interest in the following classes of shares: Class A, Class B, Class
C, Class R and Class T. 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 and automatically convert to Class A shares after six
years, Class C shares are subject to a CDSC imposed on Class C shares redeemed
within one year of purchase and Class R shares are sold at net asset value per
share only to institutional investors. Other differences between the classes
include the services offered to and the expenses borne by each class and certain
voting rights.
The Company accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund' s operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The fund' s financial statements are prepared in accordance with accounting
principles generally accepted in the United States, 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 received net
earnings credits of $433 during the period ended October 31, 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 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, 2000, the fund did not borrow under the Facility.
The Fund
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.
DSC retained $21,066 during the period ended October 31, 2000 from commissions
earned on sales of the fund's shares.
(b) Under a 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 the following annual rates: .75 of 1% of the value
of the average daily net assets of Class B and Class C shares, respectively, and
.25 of 1% of the value of the average daily net assets of Class T shares. During
the period ended October 31, 2000, Class B, Class C and Class T shares were
charged $120,340, $4,503 and $2 respectively, pursuant to the Plan, of which
$67,227, $3,068 and $2 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 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, 2000, Class A, Class B, Class C and
Class T shares were charged $409,095, $40,113, $1,501 and $2, respectively,
pursuant to the Shareholder Services Plan, of which $271,193, $22,409, $1,023
and $2 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 October 31, 2000, the fund was charged $109,558 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, 2000, the fund was
charged $22,708 pursuant to the custody agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective August 2, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $25,000 and an attendance fee of $6,000 for each meeting attended
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to August 2, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the Company an annual
fee of $2,500 and an attendance fee of $500 per meeting. The Chairman of the
Board received an additional 25% of such compensation. Subject to the Company's
Emeritus Program Guidelines, Emeritus Board Members, if any, receive 50% of the
fund's annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
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, 2000, amounted to $265,766,983 and $304,373,447, respectively.
The fund may invest in financial futures contracts in order to gain exposure to
or protect against changes in the market. The fund is
The Fund
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,
2000, there were no financial futures contracts outstanding.
(b) At October 31, 2000, accumulated net unrealized appreciation on investments
was $38,320,556, consisting of $40,183,833 gross unrealized appreciation and
$1,863,277 gross unrealized depreciation.
At October 31, 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).
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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000 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, 2000, 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 accounting principles generally accepted in the United
States.
/s/Ernst & Young, LLP
New York, New York
December 11, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $1.3940 per share as
long-term capital gain distribution paid on December 1, 1999.
The fund also designates 59.58% of the ordinary dividends paid during the fiscal
year ended October 31, 2000 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2001 of the
percentage applicable to the preparation of their 2000 income tax returns.
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
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 037AR0010
