LETTER TO INVESTORS
Dear Investor:
The past twelve months have been very volatile for equity markets
worldwide as global interest rates continued to rise. The worst performing
markets in the first half of the year, the emerging markets, continued to
perform poorly in the second half. By the second half of the year, it was
clear that growth was stronger than had been anticipated and global interest
rates had bottomed. However, markets worldwide continued to struggle with
what this meant for valuations and liquidity flows. The most dramatic example
of this was the year-end collapse of the Mexican currency and stock markets.
Total return for Dreyfus Global Growth, L.P. for the fiscal year ended
December 31, 1994 was -7.49%, based upon net asset value per share* versus
the Morgan Stanley Capital International World Index of +5.1%.** The average
global flexible portfolio fund was -4.68% for the year as reported by Lipper
Analytical Services, Inc.***
DEFENSIVE STEPS
As we discussed in the semi-annual letter, in anticipation of rising U.S.
interest rates, the Fund continued to position itself defensively throughout
the year. From year end 1993 to year end 1994, we increased cash from
approximately 12.4% to 36.72% and reduced the emerging markets' exposure from
33% to 9.22%. In spite of the large reduction in emerging markets, the
remaining positions caused significant losses in the portfolio during the
year.
The majority of emerging markets losses were in Hong Kong and Malaysia,
where we were overweighted. Because Hong Kong's interest rates are strongly
linked to those in the U.S., we anticipated the negative effect rising U.S.
rates would have on the property segment of the market. Though we didn't own
property stocks and had reduced our overall exposure from 6.46% to 2.6%, we
still had significant losses on the other stocks remaining in the market.
Stocks that performed poorly were Hutchison Whampoa and Linkful. The Hong
Kong market ended the year down 28.9%.
Malaysia and Singapore, where we held 12.78% of the Fund at the beginning
of the year, were reduced to a combined 4.26%. The significant losses
attributed to Malaysia were generated by the few remaining, somewhat illiquid
stocks such as Berjaya Leisure and Magnum in which we no longer have a
position. Malaysia ended the year down 19.9%, and Singapore up 6.7%.
As referred to in our interim letter, we also reduced our exposure to
Latin America, specifically to Mexico. From a peak of 15% in February, the
year-end Latin American position was 1.84%. The primary reason for selling
Mexico was the lack of economic recovery and increased political instability.
Thus the Fund had less then half a percent exposed to Mexico when the crisis
struck in mid-December. The Mexican market collapsed 41% in 1994. Overall, we
lost money in Latin America in 1994.
A BIGGER STAKE IN DEVELOPED MARKETS
One of the impacts of rising interest rates and events such as the crisis
in Mexico has been the renewed focus on the developed, mature markets of
Japan, Europe, and the U.S. A major shift in the portfolio during the year
was to increase investment in these established markets.
Japan accounted for 3.64% of the portfolio in the beginning of the year
and 16.27% by year end. Most of the increase came in the first quarter as we
anticipated the recovery in the Japanese economy. Although there have been a
number of factors limiting the market's performance, including trade disputes
with the U.S., political scandals and a very strong currency, Japan still was
one of the best performers in 1994. The Japanese positions were significantly
profitable to the portfolio last year.
In Europe, our overall positions were reduced only slightly, but the
composition of the portfolio has changed. Our method was
to focus more specifically on stock selection rather than country weightings.
We have taken top positions in companies that are competitive in a global
market or where structural changes will enhance profitability in the next
cycle. An example of this is Ericcson, a Swedish telephone equipment company
that earns over half its profits from the rapidly growing cellular market.
Half of the world's cellular systems run on Ericcson equipment, positioning
the company very well for future growth. Europe was profitable for the Fund
in 1994.
As referred to in our interim letter, the Fund makes occasional use of
derivatives, including index futures. The net result of these trades to the
Fund has been slightly negative during the year.
A CHANGE IN THE U.S.
The Fund has remained underweighted in the U.S. market all year,
reflecting our expectations for rising interest rates. The composition of the
portfolio has remained heavily weighted toward the cyclicals, with some
energy exposure. Following the demise of the health care reform proposal in
Congress, we have increased our exposure to both U.S. and European
pharmaceutical companies.
The U.S. component of the portfolio has underperformed, resulting in
significant losses to the Fund. During 1994, the health care service stocks
as a group did poorly. Although their underperformance was company-specific,
there was an industry-wide movement toward lower pricing that negatively
impacted both the earnings and the valuations of the sector. We no longer own
Community Psychiatric or Coastal Healthcare and currently have no exposure to
this sector.
We continue to monitor valuations and trends in markets worldwide. We
have a large cash position and will put it to use where we see opportunities.
Sincerely,
(logo signature)
Kelly McDermott
Portfolio Manager
January 16, 1995
New York, N.Y.
* Total return represents the change during the period in a
hypothetical account with distributions reinvested.
** SOURCE: MORGAN STANLEY & CO. INCORPORATED -- The Morgan Stanley
Capital International World Index is an arithmetical
average weighted by market value of the performance of some 1,400
securities listed on the stock exchanges of the U.S.A., Europe, Canada,
Australia, New Zealand and the Far East. The index is unmanaged and
includes net dividends reinvested.
***The Lipper Global Flexible Portfolio Fund Index, which is calculated by
Lipper Analytical Services, Inc., measures performance of funds which
allocate their investments across various asset classes, including both
domestic and foreign stocks, bonds and money market instruments, with a
focus on total return. At least 25% of the portfolios are invested in
securities traded outside the United States.
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
PERCENT OF TOTAL EQUITY HOLDINGS
MORGAN STANLEY
CAPITAL INTERNATIONAL
GLOBAL GROWTH WORLD INDEX
WEIGHTINGS WEIGHTINGS
12/31/94 12/31/94*
-------------- -------------------
<S> <C> <C>
Argentina................... .8 --
Austria..................... 1.2 .2
Australia................... -- 1.6
Belgium..................... -- .6
Canada...................... .4 2.2
Chile....................... .7 --
Denmark..................... -- .5
Finland..................... -- .3
France...................... 1.9 3.5
Germany..................... 4.9 3.9
Hong Kong................... 2.6 1.8
Ireland..................... -- .2
Italy....................... -- 1.3
Japan....................... 16.3 28.0
Malaysia.................... 1.4 1.4
Mexico...................... .4 --
Netherlands................. 1.1 2.2
New Zealand................. -- .2
Norway...................... -- .3
Singapore................... 2.8 .7
South Africa................ -- .2
Spain....................... -- 1.0
Sweden...................... 5.2 1.0
Switzerland................. 1.7 2.8
Taiwan...................... .4 --
United Kingdom.............. 2.4 9.6
United States............... 18.8 36.4
----- ------
63.0 100.0
</TABLE>
*SOURCE: MORGAN STANLEY & CO. INCORPORATED - The Morgan Stanley Capital
International World Index is an arithmetical average weighted by market
value of the performance of some 1,400 securities listed on the stock
exchanges of the U.S.A., Europe, Canada, Australia, New Zealand and the
Far East. The index is unmanaged and includes net dividends reinvested.
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund) DECEMBER 31, 1994
ASSET ALLOCATION DIVERSIFICATION OF INVESTMENTS
(Exhibit 2) (Exhibit 3)
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. DECEMBER 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS GLOBAL GROWTH,
L.P. AND THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX
(Exhibit 3)
*Source: Lipper Analytical Services, Inc.
AVERAGE ANNUAL TOTAL RETURNS
% RETURN REFLECTING
% RETURN WITHOUT MAXIMUM INITIAL
PERIOD ENDED 12/31/94 SALES CHARGE SALES CHARGE (3.0%)
- ------------------------- ------------------- ---------------------
<S> <C> <C>
1 Year (7.49%) (10.26%)
5 Years 6.41 5.76
From Inception (4/10/87) 12.80 12.36
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Global Growth
on 4/10/87 (Inception Date) to a $10,000 investment made in the Morgan
Stanley Capital International World Index on that date. For comparative
purposes, the value of the Index on 3/31/87 is used as the beginning value on
4/10/87. All dividends and capital gain distributions are reinvested.
The Fund's performance shown in the graph above takes into account the
maximum initial sales charge and all other applicable fees and expenses. The
Morgan Stanley Capital International World Index, which is the property of
Morgan Stanley & Co. Incorporated, is an arithmetical average weighted by
market value of the performance of over 1,500 securities listed on the stock
exchanges of the U.S.A., Europe, Canada, Australia, New Zealand and the Far
East. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Condensed Financial
Information section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
TEN LARGEST HOLDINGS
<S> <C>
Ericsson (L.M.), Telephone, Cl. B, A.D.R........................ 1.9%
Mannesmann A.G.................................................. 1.8
Jungheinrich A.G. (non-voting).................................. 1.8
BBC Brown Boveri A.G., Ser. A................................... 1.7
Nippon Telegraph & Telephone.................................... 1.6
Astra AB, Ser. A................................................ 1.6
Boeing.......................................................... 1.6
Svedala Indurtri................................................ 1.5
Nippondenso..................................................... 1.4
Lubrizol........................................................ 1.4
All percentages shown above are based on Total Net Assets.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
STATEMENT OF INVESTMENTS DECEMBER 31, 1994
COMMON STOCKS--60.4% SHARES VALUE
-------------- --------------
<S> <C> <C> <C>
ARGENTINA--.8% Astra Compania Argentina de Petroleo S.A 219,900 $ 363,380
Comercial del Plata S.A................ 150,000 383,075
Inversiones Y Representacion S.A..... (a) 100,000 275,413
Inversiones Y Representacion S.A. (Rights) (a) 75,000 750
-----------
1,022,618
-----------
AUSTRIA--1.2% Mayr-Melnhof Karton A.G................ (a) 10,000 588,613
Mayr-Melnhof Karton A.G............ (a,b) 17,500 1,030,073
-----------
1,618,686
-----------
CANADA--.4% Canadian Pacific................. 40,000 600,000
-----------
CHILE--.7% Empresas Telex-Chile S.A., ADS................. 25,000 265,625
Maderas y Sinteticos S.A., A.D.R....... 25,500 650,250
-----------
915,875
-----------
FRANCE--1.9% Castorama Dubois Investissments S.A ....... 9,400 1,174,560
Eridani Beghin-Say S.A................. 10,000 1,315,099
-----------
2,489,659
-----------
GERMANY--3.1% Bayerische Motoren Werke A.G ........... 3,500 1,738,710
Mannesmann A.G......................... 9,000 2,450,322
-----------
4,189,032
-----------
HONG KONG--2.6% Hutchison Whampoa................. 315,000 1,274,331
Jardine Matheson Holdings.............. 250,000 1,785,253
Television Broadcasts.................. 100,000 399,379
-----------
3,458,963
-----------
JAPAN--16.3% Aisin Seiki....................... 90,000 1,255,393
Futaba Industrial...................... 50,000 1,043,653
Hitachi................................ 175,000 1,736,829
JGC.................................... 90,000 1,535,374
Kyocera................................ 10,000 741,596
Mitsubishi Heavy Industries............ 190,000 1,449,072
Nippon Telegraph & Telephone........... 250 2,210,236
Nippondenso............................ 90,000 1,896,638
Sankyo................................. 40,000 995,484
Suzuki Motor........................... 120,000 1,408,931
Teijin................................. 100,000 526,844
Toppan Printing........................ 130,000 1,813,347
Toshiba................................ 94,000 682,007
Tosoh................................ (a) 400,000 1,613,648
Toyo Seikan Kaisha..................... 30,000 999,498
Toyota Motor........................... 40,000 842,950
Yodogawa Steel Works................... 135,000 1,072,955
-----------
21,824,455
-----------
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- -------------
MALAYSIA--1.4% Genting Berhad........................ 50,000 $ 428,487
Leader Universal Holdings Berhad....... 206,666 663,145
Resorts World Berhad................... 50,000 293,485
United Engineers....................... 110,000 542,359
-----------
1,927,476
-----------
NETHERLANDS--1.1% Schlumberger............................. 30,000 1,511,250
-----------
SINGAPORE--2.8% DBS Land................................ 275,000 818,587
Jurong Shipyard........................ 225,000 1,728,395
Overseas Union Bank.................... 213,000 1,241,770
-----------
3,788,752
-----------
SWEDEN--5.2% Astra AB, Ser. A................ 85,000 2,199,461
Ericsson (L.M.), Telephone, Cl. B, A.D.R. 45,000 2,480,625
Garphyttan Industrier AB............... 8,500 280,660
Svedala Indurtri....................... 85,000 1,981,806
-----------
6,942,552
-----------
SWITZERLAND--1.7% BBC Brown Boveri A.G., Ser. A ............. 2,675 2,303,954
-----------
UNITED KINGDOM--2.4% Kwik-Fit Holdings PLC ..................... 250,000 652,264
Lucas Industries PLC................... 480,000 1,549,449
Smithkline Beecham ADS................. 30,000 1,027,500
-----------
3,229,213
-----------
U.S.A--18.8% Amerada Hess............................... 13,000 593,125
Anadarko Petroleum..................... 10,000 385,000
Atlantic Richfield..................... 8,000 814,000
Boeing................................. 45,000 2,103,750
Boise Cascade.......................... 25,000 668,750
CBI Industries......................... 35,000 896,875
Consolidated Papers.................... 16,000 720,000
Cooper Industries...................... 30,000 1,023,750
Deere & Co............................. 20,000 1,325,000
Dow Chemical........................... 10,000 672,500
Dual Drilling........................ (a) 90,000 765,000
Exxon.................................. 15,000 911,250
IntelCom Group....................... (a) 52,500 695,625
Johnson & Johnson...................... 18,000 985,500
Lubrizol............................... 55,000 1,863,125
Marion Merrell Dow..................... 30,000 611,250
Mattel................................. 70,000 1,758,750
Novell................................. 50,000 856,250
OM Group............................... 70,000 1,680,000
Occidental Petroleum................... 35,000 673,750
Parker & Parsley Petroleum............. 50,000 1,025,000
Pfizer................................. 13,000 1,004,250
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- --------------
U.S.A (CONTINUED) TRINOVA............................... 35,000 $ 1,028,125
Talbots................................ 26,400 825,000
Thermo Electron...................... (a) 15,000 673,125
Upjohn................................. 20,000 615,000
-----------
25,173,750
-----------
TOTAL COMMON STOCKS
(cost $79,783,515)................... $ 80,996,235
============
PREFERRED STOCK--1.8%
GERMANY-- 1.8% Jungheinrich A.G. (non-voting)
(cost $2,142,005).................... 10,282 $ 2,354,910
============
PRINCIPAL
CONVERTIBLE BONDS--.8% AMOUNT
--------------
MEXICO--.4% Cemex S.A., 4 1/4%, 1997............... (b) $ 700,000 $ 563,500
-----------
TAIWAN--.4% Formosa Chemical & Fibr 1 3/4%, 2001 (b) 290,000 279,125
Nan Ya Plastics 1 3/4%, 2001......... (b) 290,000 268,250
-----------
547,375
-----------
TOTAL CONVERTIBLE BONDS
(cost $1,303,200).................... $ 1,110,875
============
SHORT-TERM INVESTMENTS--36.7%
U.S. TREASURY BILLS: 3.85%, 1/5/1995........................ $ 1,707,000 $ 1,706,283
3.52%, 1/12/1995....................... (c,d) 17,615,000 17,593,158
4.71%, 1/19/1995....................... 3,526,000 3,515,739
4 3/4%, 2/2/1995....................... 2,818,000 2,805,826
4.99%, 2/16/1995....................... 807,000 801,835
4.95%, 3/2/1995........................ 1,415,000 1,402,053
4.91%, 3/16/1995....................... 21,671,000 21,426,334
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $49,251,228)................... $ 49,251,228
============
TOTAL INVESTMENTS (cost $132,479,948) ................................. 99.7% $133,713,248
===== ============
CASH AND RECEIVABLES (NET) .......................................... .3% $ 353,849
===== ============
NET ASSETS.................................................................. 100.0% $134,067,097
===== ============
</TABLE>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
NOTES TO STATEMENTS OF INVESTMENTS:
(a) Non-income producing.
(b) Security exempt from registration under 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1994, these securities amounted to $2,140,948 or 1.6% of net assets.
(c) Partially held by custodian in a segregated account as collateral
for open futures positions.
(d) Partially held by brokers as collateral for open short positions.
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES DECEMBER 31, 1994
MARKET VALUE UNREALIZED
NUMBER OF COVERED (DEPRECIATION)
FINANCIAL FUTURES SOLD SHORT CONTRACTS BY CONTRACTS EXPIRATION AT 12/31/94
- ---------------------------- --------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
Japanese Yen............................. 100 ($12,635,000) March '95 ($22,619)
========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF SECURITIES SOLD SHORT DECEMBER 31, 1994
COMMON STOCKS SHARES VALUE
- ------------------ ------------ ------------
<S> <C> <C>
Calgene..................................................................... 75,000 $ 562,500
Caterpillar................................................................. 15,000 826,875
----------
TOTAL SECURITIES SOLD SHORT
(proceeds $1,488,300)................................................... $1,389,375
==========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1994
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $132,479,948)_see statement..................................... $133,713,248
Cash.................................................................... 137,597
Receivable for investment securities sold............................... 2,514,447
Receivable from brokers for proceeds on securities sold short........... 1,488,300
Dividends and interest receivable....................................... 178,192
Receivable for shares of Partnership Interest sold...................... 65,022
Receivable for futures variation margin_Note 4(a)....................... 5,000
Prepaid expenses........................................................ 23,655
--------------
138,125,461
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 86,217
Due to Distributor...................................................... 28,739
Payable for investment securities purchased............................. 2,304,500
Securities sold short, at value
(proceeds $1,488,300)_see statement................................... 1,389,375
Payable for shares of Partnership Interest redeemed..................... 112,313
Accrued expenses........................................................ 137,220 4,058,364
------------ --------------
NET ASSETS ................................................................ $134,067,097
============
REPRESENTED BY:
Paid-in capital......................................................... $108,572,673
Accumulated undistributed investment income_net......................... 6,034,763
Accumulated undistributed net realized gain on investments.............. 18,150,055
Accumulated net unrealized appreciation on investments
[including ($22,619) net unrealized (depreciation) on
financial futures]_Note 4(b).......................................... 1,309,606
--------------
NET ASSETS at value applicable to 4,063,762 outstanding shares of
Partnership Interest, equivalent to $32.99 per share
(unlimited number of Limited Partnership Interest)...................... $134,067,097
============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994
INVESTMENT INCOME:
INCOME:
<S> <C> <C>
Cash dividends (net of $198,099 foreign taxes withheld at source)..... $ 1,733,552
Interest.............................................................. 1,246,594
------------
TOTAL INCOME...................................................... $ 2,980,146
EXPENSES:
Management fee_Note 3(a).............................................. 1,136,006
Investor servicing costs_Note 3(b).................................... 605,526
Custodian fees........................................................ 212,899
Professional fees..................................................... 56,744
Registration fees..................................................... 40,061
Prospectus and investors' reports_Note 3(b)........................... 31,140
Managing General Partners' fees and expenses_Note 3(c)................ 27,540
Miscellaneous......................................................... 7,103
------------
TOTAL EXPENSES.................................................... 2,117,019
--------------
INVESTMENT INCOME--NET............................................ 863,127
--------------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments_Note 4(a):
Long transactions (including options transactions).................... $ 9,981,003
Short sale transactions............................................... (11,134)
Net realized (loss) on financial futures_Note 4(a):
Long transactions..................................................... (113,627)
Short transactions.................................................... (1,569,908)
------------
NET REALIZED GAIN..................................................... 8,286,334
Net unrealized (depreciation) on investments and securities
sold short [including ($150,732) net unrealized (depreciation) on
financial futures].................................................... (21,018,855)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (12,732,521)
--------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(11,869,394)
=============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
--------------------------------
1993 1994
-------------- --------------
OPERATIONS:
<S> <C> <C>
Investment income_net................................................... $ 1,309,187 $ 863,127
Net realized gain on investments........................................ 3,053,731 8,286,334
Net unrealized appreciation (depreciation) on investments for the year.. 23,466,055 (21,018,855)
-------------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... 27,828,973 (11,869,394)
-------------- -----------
PARTNERSHIP INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 58,076,042 24,675,601
Cost of shares redeemed................................................. (37,886,066) (38,121,994)
-------------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM PARTNERSHIP INTEREST TRANSACTIONS 20,189,976 (13,446,393)
-------------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................... 48,018,949 (25,315,787)
NET ASSETS:
Beginning of year....................................................... 111,363,935 159,382,884
-------------- -----------
End of year (including undistributed investment income_net:
$5,171,636 in 1993 and $6,034,763 in 1994)............................ $159,382,884 $134,067,097
============ ============
SHARES SHARES
-------------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 1,859,912 701,283
Shares redeemed......................................................... (1,199,485) (1,107,058)
-------------- -----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 660,427 (405,775)
============ ============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Partnership Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from the Fund's financial statements.
Year Ended December 31,
------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $24.18 $25.58 $30.06 $29.24 $35.66
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income_net(1)(2).................. .94 .67 .50 .30 .22
Net realized and unrealized gain (loss) on investments (1) .46 3.81 (1.32) 6.12 (2.89)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... 1.40 4.48 (.82) 6.42 (2.67)
------- ------- ------- ------- -------
Net asset value, end of year................. $25.58 $30.06 $29.24 $35.66 $32.99
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (3) 5.79% 17.51% (2.73%) 21.96% (7.49%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 1.50%(4) 1.50%(4) 1.50%(4) 1.37% 1.40%
Ratio of interest expense and dividends on securities
sold short to average net assets........... .28% .12% .11% .13% --
Ratio of net investment income to average net assets 3.73% 2.39% 1.67% .96% .57%
Portfolio Turnover Rate...................... 565.67% 419.67% 439.07% 186.97% 147.28%
Net Assets, end of year (000's Omitted)...... $25,337 $54,469 $111,364 $159,383 $134,067
(1) Per share data for 1990 has been restated for comparative purposes.
(2) Based on an average of shares outstanding at each month end.
(3) Exclusive of sales load.
(4) Net of expenses reimbursed.
See notes to financial statements.
</TABLE>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the distributor of the Fund's
shares. As of December 31, 1994, Dreyfus Partnership Management, Inc. held
51,755 shares. Both the Dreyfus Service Corporation and Dreyfus Partnership
Management, Inc. are wholly-owned subsidiaries of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. ("the
Distributor") was engaged as the Fund's distributor. The Distributor, located
at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
On December 21, 1993, the Fund's Partners approved a change of the Fund's
name, effective January 1, 1994, from "Dreyfus Strategic World Investing,
L.P." to "Dreyfus Global Growth, L.P. (A Strategic Fund)."
(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 Managing General
Partners. Short-term investments are carried at amortized cost, which
approximates value. Investments denominated in foreign currencies are
translated to U.S. dollars at the prevailing rates of exchange.
(B) 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 discounts on investments, is recognized on
the accrual basis.
(C) DISTRIBUTIONS TO INVESTORS: Distributions from investment income-net
and distributions from net realized securities gains may be allocated and
paid annually after the end of the year in which earned.
(D) INCOME TAXES: As a partnership, the Fund itself will not be subject
to Federal, State and City income taxes. Instead, each investor will be
allocated, and subject to tax on, his distributive share of the Fund's
income. Therefore, no income tax provision is required.
NOTE 2--BANK LINE OF CREDIT:
In accordance with an agreement with a bank, the Fund may borrow up to $4
million under a short-term unsecured line of credit. Interest on borrowings
is charged at rates which are related to the Federal Funds rates in effect
from time to time.
There were no borrowings during the year ended December 31, 1994.
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .75 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, interest on borrowings (which, in the
view of Stroock & Stroock & Lavan, counsel to the Fund, also contemplates
dividends on securities sold short), brokerage and extraordinary expenses,
exceed the expense limitation of any state having jurisdiction over the Fund.
The most stringent state expense limitation applicable to the Fund under the
Agreement requires reimbursement of expenses in any full year that such
expenses (exclusive of distribution expenses and certain expenses as
described above) exceed 2 1/2 % of the first $30 million, 2% of the next $70
million and 1 1/2% of the excess over $100 million of the average value of
the Fund's net assets in accordance with California "blue sky" regulations.
There was no expense reimbursement for the year ended December 31, 1994.
Dreyfus Service Corporation retained $524,524 during the year ended
December 31, 1994 from commissions earned on sales of Fund shares.
(B) On August 3, 1994, Fund Partners approved a revised Service Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the Plan, effective
August 24, 1994, the Fund (a) reimburses the Distributor for payments to
certain Service Agents for distributing the Fund's shares and servicing
investor accounts and (b) pays the Manager, Dreyfus Service Corporation or
any affiliate (collectively "Dreyfus") for advertising and marketing relating
to the Fund and servicing investor accounts, at an aggregate annual rate of
.25 of 1% of the value of the Fund's average daily net assets. Each of the
Distributor and Dreyfus may pay Service Agents (a securities dealer,
financial institution or other industry professional) a fee in respect of the
Fund's shares owned by investors with whom the Service Agent has a servicing
relationship or for whom the Service Agent is the dealer or holder of record.
Each of the Distributor and Dreyfus determine the amounts to be paid to
Service Agents to which it will make payments and the basis on which such
payments are made. The Plan also separately provides for the Fund to bear the
costs of preparing, printing and distributing certain of the Fund's
prospectuses and statements of additional information and costs associated
with implementing and operating the Plan, not to exceed the greater of
$100,000 or .005 of 1% of the Fund's average daily net assets for any full
year.
Prior to August 24, 1994, the Fund's Service Plan ("prior Service Plan")
provided that the Fund pay Dreyfus Service Corporation at an annual rate of
.25 of 1% of the value of the Fund's average daily net assets, for the costs
and expenses in connection with advertising, marketing and distributing the
Fund's shares and for servicing investor accounts. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Fund's shares owned by clients of the Service Agents. The prior Service
Plan also separately provided for the Fund to bear the costs of preparing,
printing and distributing certain of the Fund's prospectuses and statements
of additional information and costs associated with implementing and
operating the prior Service Plan, not to exceed the greater of $100,000 or
.005 of 1% of the Fund's average daily net assets for any full year.
During the year ended December 31, 1994, $134,759 was charged to the Fund
pursuant to the Plan and $260,863 was charged pursuant to the prior Service
Plan.
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) Prior to August 24, 1994, certain officers and Managing General
Partners of the Fund were "affiliated persons," as defined in the Act, of the
Manager and/or Dreyfus Service Corporation. Each Managing General Partner who
is not an "affiliated person" receives an annual fee of $2,500 and an
attendance fee of $250 per meeting.
NOTE 4_Securities Transactions:
(A) The following summarizes the aggregate amount of purchases and sales
of investment securities and securities sold short, excluding short-term
securities and options transactions, during the year ended December 31, 1994:
PURCHASES SALES
----------------- -------------
Long transactions.................. $175,271,696 $219,767,174
Short sale transactions............ 7,786,951 7,812,157
----------------- -------------
TOTAL............................ $183,058,647 $227,579,331
=============== =============
The Fund is engaged in short-selling which obligates the Fund to replace
the security borrowed by purchasing the security at
current market value. The Fund would incur a loss if the price of the
security increases between the date of the short sale and the date on which
the Fund replaces the borrowed security. The Fund would realize a gain if the
price of the security declines between those dates. Until the Fund replaces
the borrowed security, the Fund will maintain daily, a segregated account
with a broker and custodian, of cash and/or U.S. Government securities
sufficient to cover its short position. Securities sold short at December 31,
1994, and their related market values and proceeds are set forth in the
Statement of Securities Sold Short.
In addition, the following table summarizes the Fund's call/put options
written transactions for the year ended December 31, 1994:
<TABLE>
<CAPTION>
OPTIONS TERMINATED
--------------------
NET
NUMBER OF PREMIUMS REALIZED
CONTRACTS RECEIVED COST GAIN
--------- -------- ------- ----------
<S> <C> <C> <C> <C>
OPTIONS WRITTEN:
Contracts outstanding December 31, 1993..... -- --
Contracts written........................... 12,460 $640,071
------------ --------
Contracts Terminated;
Closed.................................... 12,460 $640,071 $619,500 $20,571
------------ ------- ----------- -------
Contracts outstanding December 31, 1994..... -- --
=========== ========
</TABLE>
As a writer of call options, the Fund receives a premium at the outset
and then bears the market risk of unfavorable changes
in the price of the financial instrument underlying the option. Generally,
the Fund would incur a gain, to the extent of the premiums, if the price of
the underlying financial instrument decreases between the date the option is
written and the date on which the option is terminated. Generally, the Fund
would realize a loss, if the price of the financial instrument increases
between those dates. At December 31, 1994, there were no call options written
outstanding.
DREYFUS GLOBAL GROWTH, L.P. (A STRATEGIC FUND)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As a writer of put options, the Fund receives a premium at the outset and
then bears the market risk of unfavorable changes in the price of the
financial instrument underlying the option. Generally, the Fund would incur a
gain, to the extent of the premiums, if the price of the underlying financial
instrument increases between the date the option is written and the date on
which the option is terminated. Generally, the Fund would realize a loss, if
the price of the financial instrument declines between those dates. At
December 31, 1994, there were no put options written outstanding.
The Fund is engaged in purchasing restricted options, which are not
exchange traded. The Fund's exposure to credit risk associated with counter
party nonperformance on these investments is typically limited to the market
value of such investments.
The Fund is engaged in trading financial futures contracts. The Fund is
exposed to market risk as a result of changes in the value of the underlying
financial instruments (see the Statement of Financial Futures). Investments
in financial futures require the Fund to "mark to market" on a daily basis,
which reflects the change in the market value of the contract at the close of
each day's trading. Accordingly, variation margin payments are made or
received to reflect daily unrealized gains or losses. When the contracts are
closed, the Fund recognizes a realized gain or loss. These investments
require initial margin deposits with a custodian, which consist of cash or
cash equivalents, up to approximately 10% of the contract amount. The amount
of these deposits is determined by the exchange or Board of Trade on which
the contract is traded and is subject to change. Contracts open at December
31, 1994 and their related unrealized market (depreciation) are set forth in
the Statement of Financial Futures.
(B) At December 31, 1994, accumulated net unrealized appreciation on
investments was $1,309,606, consisting of $4,920,909 gross unrealized
appreciation and $3,611,303 gross unrealized depreciation.
At December 31, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS GLOBAL GROWTH, L.P. (A STRATEGIC FUND)
(FORMERLY DREYFUS STRATEGIC WORLD INVESTING, L.P.)--SEE NOTE 1
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
INVESTORS AND MANAGING GENERAL PARTNERS
DREYFUS GLOBAL GROWTH, L.P. (A STRATEGIC FUND)
We have audited the accompanying statement of assets and liabilities of
Dreyfus Global Growth, L.P. (A Strategic Fund) (formerly Dreyfus Strategic
World Investing, L.P.), including the statements of investments, financial
futures and securities sold short as of December 31, 1994, 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 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 and financial highlights 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. Our procedures included confirmation of
securities owned as of December 31, 1994 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 Global Growth, L.P. (A Strategic Fund) at December 31,
1994, 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.
(Ernst & Young LLP)
(logo Signature)
New York, New York
February 6, 1995
DREYFUS GLOBAL GROWTH, L.P.
(A STRATEGIC FUND)
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DISTRIBUTION DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 033AR9412
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS GLOBAL GROWTH, L.P. (A STRATEGIC FUND) AND THE
MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX
EXHIBIT A:
________________________________________________________
| | | MORGAN STANLEY |
| | DREYFUS GLOBAL | CAPITAL |
| PERIOD | GROWTH | INTERNATIONAL |
| | (A STRATEGIC FUND)| WORLD INDEX* |
|------------| -------------------|--------------------|
| 4/10/87 | 9,701 | 10,000 |
| 12/31/87 | 12,910 | 9,483 |
| 12/31/88 | 14,910 | 11,692 |
| 12/31/89 | 18,045 | 13,634 |
| 12/31/90 | 19,090 | 11,313 |
| 12/31/91 | 22,433 | 13,381 |
| 12/31/92 | 21,821 | 12,681 |
| 12/31/93 | 26,612 | 15,535 |
| 12/31/94 | 24,619 | 16,325 |
|-------------------------------------------------------|
*Source: Lipper Analytical Services, Inc.
Dreyfus Global Growth, L.P. (A Strategic Fund)
(formerly Dreyfus Strategic World Investing, L.P.)--See Note 1
Asset Allocation
|-------------------------------------------------------|
|Common Stocks 60.4 %|
|Preferred Stock 1.8 %|
|Convertible Bonds 0.8 %|
|Cash Equivalents 37.0 %|
|-------------------------------------------------------|
Dreyfus Global Growth, L.P. (A Strategic Fund)
(formerly Dreyfus Strategic World Investing, L.P.)--See Note 1
Diversification of Investments
|-------------------------------------------------------|
|Cash Equivalents 37.0 %|
|U.S.A. 18.8 %|
|Japan 16.3 %|
|Sweden 5.2 %|
|Germany 4.9 %|
|Singapore 2.8 %|
|Hong Kong 2.6 %|
|United Kingdom 2.4 %|
|France 1.9 %|
|Switzerland 1.7 %|
|Malaysia 1.4 %|
|Austria 1.2 %|
|Netherlands 1.1 %|
|Argentina 0.8 %|
|Chile 0.7 %|
|Taiwan 0.4 %|
|Mexico 0.4 %|
|Canada 0.4 %|
|-------------------------------------------------------|
