DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
LETTER TO SHAREHOLDERS
Dear Investor:
As of December 31, 1995, Dreyfus Global Growth, L.P. reorganized from a
Delaware limited partnership to a Massachusetts business trust. As of January
1, Dreyfus Global Growth, L.P. was renamed Dreyfus Global Growth Fund.
During the past 12 months, the U.S. has been the best-performing major
global market. This has been driven by a number of factors including strong
corporate profit growth, falling interest rates, and the expectation of
responsible fiscal management in Washington. Although the U.S. economy has
slowed during the second half of the year, the market believes that the
Federal Reserve Board has achieved a soft landing. This has created a
positive environment for global assets. For the majority of the year, the
Fund has been overweight in the U.S. market with large holdings in the
financial and healthcare sectors.
For the 12 months ended December 31, 1995, the total return for Dreyfus
Global Growth was +12.06%.* For the same period, the Morgan Stanley Capital
International World Index had a total return of +20.72%** and the Lipper
Global Flexible Portfolio Fund Index had a total return of 17.35%.***
TAKING A THEME APPROACH
The Fund takes a theme approach to investing, identifying several themes
and applying them globally. Two of our major themes this year have been
falling U.S. interest rates and the clarification of U.S. healthcare policy.
We have also invested heavily in companies that are restructuring in order to
remain competitive in a global marketplace. A fourth theme is economic growth
in Asia. Each theme was profitable for the portfolio during the period.
FALLING WORLDWIDE INTEREST RATES
Our primary theme this year has been falling worldwide interest rates. As
economic growth slowed in the major markets, governments globally responded
by easing monetary policy. World growth was further restrained by the still
unresolved financial and real estate crisis in Japan. This was the perfect
environment for financial stocks to outperform. The Fund was heavily
overweighted in U.S. banks and had investments in Japanese and Asian banks.
In Hong Kong, where interest rates are directly linked to U.S. rates, the
property stocks recovered on anticipation of a recovery in the real estate
market; we had significant holdings in the property companies. This theme
represented about 35% of the Fund's total portfolio for the duration of the
period and has added more than 3.4% of performance.
CLARIFICATION OF U.S. HEALTHCARE POLICY
At the end of 1994, the healthcare sector had been battered down on the
expectation of onerous healthcare legislation. Our decision to take a major
position in this sector was based on three assumptions: that there would be
no healthcare bill, that the industrywide consolidation would continue, and
that there were a number of companies with promising drugs in development.
Given this investment outlook, the sector represented good value. A number of
European drug companies also stood to benefit in this environment because of
their significant exports to the U.S. Our investments in both European and
U.S. drug companies represented between 15% and 20% of the Fund's portfolio
during the period. These positions added over 5.5% of performance over the
year.
RESTRUCTURING IN THE GLOBAL MARKETPLACE
The entrance, in recent years, of the developing countries into the
mainstream global economy significantly altered the world's competitive
environment. The emergence of South East Asia, China, the former Soviet Union
and India is putting increasing pressures on established companies, which
primarily manufacture in developed countries, to reduce their costs. This has
forced a number of companies to restructure. We have approached the
restructuring theme from two angles: by investing in companies that either
divest themselves of noncore business and/or manufacture
productivity-enhancing technology.
Grace (W.R.) and duPont (EI) de Nemours are two good examples of the
former. Each of these companies had pursued diversification strategies that
penalized profitability. By divesting of its noncore businesses, each company
has realized value for the shareholder and positioned the company for better
performance in the future. These divestiture investments have been profitable
for the portfolio for the year, adding about 1.4% of performance.
Cisco Systems, one of the mostly globally competitive networking software
companies, is an example of the latter. Computers and networks provide
companies with powerful tools that greatly increase efficiency at a
relatively low cost. While the use of computers is well established in the
U.S. market, it is just beginning in Europe and Asia. Unfortunately, concerns
over slowing PC demand and the transition between 486 and Pentium machines
drove technology stocks significantly lower in the fourth quarter and reduced
the Fund's full year performance by 1%. The Fund used this weakness as an
opportunity to build positions in the sector. Technology currently represents
about 18% of the Fund.
RISING WEALTH IN ASIA
We have participated in the rising wealth and development in Asia by
investing in infrastructure and consumer companies. In Malaysia, we have had
significant investments in construction companies involved in major
infrastructure projects. Unfortunately, because of negative macroeconomic
developments, the Malaysian market has been weak this year and our
investments have been no exception. On the positive side, we have made money
in Indonesia by investing in such consumer stocks as, for example, Matahari,
a rapidly expanding retail chain catering to lower income customers.
Indonesia has contributed .4% to the Fund's portfolio over the year, while
Malaysia has cost 9% to the portfolio. Overall, Asia added 1.4% to the Fund's
performance.
JAPAN
As we discussed in our semi-annual letter, we had been anticipating an
economic recovery in Japan this year. From the January earthquake to the more
recent Daiwa bank scandal, much has happened to derail this recovery. The
stock market has responded to this environment with increased volatility and
no clear trend. While we do hold some positions, we have remained
underweighted in the market for most of the year. However, our Japanese
positions cost the portfolio over 2.8% during the period and explain some of
the portfolio underperformance.
You will notice that the cash position of the Fund has been further
reduced from prior periods. This reflects the compelling values available in
global growth stocks.
Effective January 29, 1996, management of the portfolio of Dreyfus Global
Growth Fund was transferred to Ronald Chapman, who joined Dreyfus in January
as Head of International Equities.
Ron has been actively involved in international research and portfolio
management at the Northern Trust Company for the past ten years. He was
instrumental in building that organization's highly competitive products and
performance record in international equities. Earlier in his career, he
served as an energy analyst in the investment research departments of
Northern Trust and Continental Illinois Bank. He has established a reputation
for a disciplined approach to asset allocation and portfolio construction.
I look forward to working closely with Ron as we strengthen and expand
Dreyfus' resources and products in international equity investments.
Sincerely,
[Kelly McDermott signature logo]
Kelly McDermott
Portfolio Manager
January 31, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Unlike the Fund which may
invest in various types of securities and engage in
different investment techniques, 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.
*** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - The Lipper Global Flexible
Portfolio Fund Index measures performance of funds which allocate their
investment 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.
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund) DECEMBER 31, 1995
[Exhibit A]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS GLOBAL GROWTH,
L.P. AND THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX
Dollars
$28,438
Dreyfus
Global Growth, L.P.
$19,708
Morgan Stanley
Capital International
World Index*
*Source: Lipper Analytical Services, Inc.
[Exhibit A]
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED FROM INCEPTION (4/10/87)
DECEMBER 31, 1995 DECEMBER 31, 1995 TO DECEMBER 31, 1995
_________________ _________________ _______________________
<S> <C> <C> <C>
12.06% 7.63% 12.72%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Global Growth,
L.P. 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 line graph takes into account all
applicable fees and expenses. The Morgan Stanley Capital International World
Index, which is the property of Morgan Stanley & Co. Incorporated, is an
unmanaged index of global stock market performance, including the United
States, Canada, Europe, Australia, New Zealand and the Far East and includes
net dividends reinvested. 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.
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
COMMON STOCKS-96.3% SHARES VALUE
_______ _______
<S> <C> <C>
FINLAND-.7% Valmet, Ser. A 30,000 $ 743,546
__________
FRANCE-1.6% BIC 16,000 1,623,802
__________
HONG KONG-15.0% Amoy Properties 1,700,000 1,692,855
HSBC Holdings PLC...................... 75,000 1,134,821
Hang Seng Bank......................... 160,000 1,432,913
Hong Kong & China Gas.................. 900,000 1,449,079
Hutchison Whampoa...................... 450,000 2,741,028
Hysan Development...................... 460,000 1,216,553
New World Infrastructure........... (a,b) 100,000 191,400
Sun Hung Kai Properties................ 175,000 1,431,458
Swire Pacific, Cl. A................... 280,000 2,172,648
Wharf Holdings......................... 660,000 2,197,866
__________
15,660,621
__________
INDONESIA-5.6% Astra International 640,000 1,330,416
Gudang Garam........................... 115,000 1,202,845
Hanjaya Mandala Sampoerna.............. 150,000 1,562,363
Matahari Putra Prima................... 1,000,000 1,761,488
__________
5,857,112
__________
ITALY-.4% Gucci Group, N.V. 12,000 466,500
__________
JAPAN-8.4% Mitsubishi Heavy Industries 160,000 1,272,270
Mitsubishi Materials................... 285,000 1,473,188
NKK.................................. (a) 485,000 1,302,705
Nippon Telegraph & Telephone........... 260 2,097,585
Sumitomo Metal Mining.................. 145,000 1,300,097
Takashimaya............................ 90,000 1,434,783
__________
8,880,628
__________
NETHERLANDS-2.0% BE Semiconductor Industries, N.V. (a) 45,000 585,000
Vendex International, N.V. ............ 25,000 741,604
Vendex International, N.V. .......... (b) 25,000 741,604
__________
2,068,208
__________
SINGAPORE-10.5% Cycle & Carriage 50,000 498,585
DBS Land............................... 725,000 2,450,849
Fraser & Neave......................... 85,000 1,082,037
Jardine Matheson Holdings.............. 250,000 1,712,500
Malayan Credit......................... 325,000 643,564
Overseas Union Bank.................... 363,000 2,503,006
Wing Tai Holdings...................... 1,000,000 2,043,847
__________
10,934,388
__________
SWEDEN-8.0% Astra AB, Ser. A 105,000 4,185,469
Svedala Industrial..................... 85,000 2,186,372
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _____
SWEDEN (CONTINUED) WM-Data AB, Ser. B 43,350 $ 1,956,228
__________
8,328,069
__________
SWITZERLAND-5.4% BBC Brown Boveri A.G 1,400 1,625,650
Roche Holdings A.G..................... 260 2,055,893
Sandoz A.G............................. 2,200 2,013,172
__________
5,694,715
__________
UNITED KINGDOM-2.1% SmithKline Beecham PLC, A.D.R. 40,000 2,220,000
__________
UNITED STATES-36.6% AlliedSignal 55,800 2,650,500
American Home Products................. 35,000 3,395,000
Applied Materials.................... (a) 62,000 2,441,250
Boeing................................. 35,000 2,743,125
CapMac Holdings........................ 37,000 929,625
cisco Systems........................ (a) 43,000 3,208,875
Cree Research........................ (a) 98,500 1,452,875
Culligan Water Technologies............ 40,000 970,000
First Union............................ 32,000 1,780,000
Metromedia International Group....... (a) 100,000 1,400,000
Micron Technology...................... 55,000 2,179,375
Pfizer................................. 34,000 2,142,000
Seagate Technology................... (a) 70,000 3,325,000
Texas Instruments...................... 55,000 2,846,250
Union Carbide.......................... 50,000 1,875,000
Viacom, Cl. B........................ (a) 30,000 1,421,250
Warner-Lambert......................... 18,000 1,748,250
Witco 60,000 1,755,000
__________
38,263,375
__________
TOTAL COMMON STOCKS
(cost $92,654,685)................... $100,740,964
=============
PRINCIPAL
SHORT-TERM INVESTMENTS-3.7% AMOUNT
___________
U.S. TREASURY BILLS:. 5.28%, 1/11/96 $ 2,353,000 $ 2,349,306
5.33%, 1/25/96......................... 82,000 81,736
4.89%, 3/14/96......................... 309,000 305,832
4.84%, 3/28/96......................... 1,092,000 1,078,656
__________
TOTAL SHORT-TERM INVESTMENTS
(cost $3,816,419).................... $ 3,815,530
=============
TOTAL INVESTMENTS (cost $96,471,104) ............................... 100.0% $104,556,494
======= =============
CASH AND RECEIVABLES (NET).............................. 0.0% $ 4,198
======= =============
NET ASSETS.................................................... 100.0% $104,560,692
======= =============
</TABLE>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Security exempt from registration under Rule 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,
1995, these securities amounted to $933,004 or .9% of net assets.
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES DECEMBER 31, 1995
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
FINANCIAL FUTURES PURCHASED CONTRACTS BY CONTRACTS EXPIRATION AT 12/31/95
_______________ _________ _____________ _____________ ____________
<S> <C> <C> <C> <C>
Nikkei 225................................... 57 $5,589,386 March `96 $282,246
===========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $96,471,104)-see statement...................................... $104,556,494
Cash.................................................................... 549,306
Receivable for investment securities sold............................... 1,402,553
Receivable for futures variation margin-Note 4(a)....................... 282,246
Net unrealized appreciation on forward currency
exchange contracts-Note 4(a).......................................... 113,379
Dividends and interest receivable....................................... 86,202
Prepaid expenses........................................................ 7,485
___________
106,997,665
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 88,568
Due to Distributor...................................................... 1,828
Bank loans payable-Note 2............................................... 2,210,000
Interest payable........................................................ 5,655
Accrued expenses........................................................ 130,922 2,436,973
___________ __________
NET ASSETS ................................................................ $104,560,692
============
REPRESENTED BY:
Paid-in capital......................................................... $ 65,580,346
Accumulated undistributed investment income-net......................... 7,058,630
Accumulated undistributed net realized gain on investments and
foreign currency transactions......................................... 23,440,802
Accumulated net unrealized appreciation on investments
and foreign currency transactions (including $282,246 net unrealized
appreciation on financial futures).................................... 8,480,914
____________
NET ASSETS at value applicable to 2,828,559 outstanding shares of
Partnership Interest, equivalent to $36.97 per share
(unlimited number of Limited Partners).................................. $104,560,692
============
</TABLE>
<TABLE>
<CAPTION>
See notes to financial statements.
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $131,880 foreign taxes withheld at source)..... $ 1,914,571
Interest.............................................................. 852,792
____________
TOTAL INCOME...................................................... $ 2,767,363
EXPENSES:
Management fee-Note 3(a).............................................. 889,197
Investor servicing costs-Note 3(b).................................... 505,498
Professional fees..................................................... 125,441
Custodian fees........................................................ 109,332
Managing General Partners' fees and expenses-Note 3(c)................ 37,198
Registration fees..................................................... 32,240
Prospectus and investors' reports-Note 3(b)........................... 25,505
Dividends on securities sold short.................................... 7,500
Interest expense-Note 2............................................... 5,655
Miscellaneous......................................................... 5,930
___________
TOTAL EXPENSES.................................................... 1,743,496
____________
INVESTMENT INCOME-NET............................................. 1,023,867
____________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on investments-Note 4(a):
Long transactions (including options transactions and
foreign currency transactions).................................... $ 6,985,405
Short sale transactions............................................... (141,276)
Net realized gain on forward currency exchange contracts-Note 4(a);
Short transactions.................................................... 41,395
Net realized gain (loss) on financial futures-Note 4(a):
Long transactions..................................................... 191,838
Short transactions.................................................... (1,786,615)
___________
NET REALIZED GAIN................................................. 5,290,747
Net unrealized appreciation on investments, securities sold short and
foreign currency transactions (including $304,865 net unrealized
appreciation on financial futures).................................... 7,171,308
____________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 12,462,055
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $13,485,922
=============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
__________________________________
1994 1995
____________ ___________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 863,127 $ 1,023,867
Net realized gain on investments........................................ 8,286,334 5,290,747
Net unrealized appreciation (depreciation) on investments for the year.. (21,018,855) 7,171,308
_______________ _____________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (11,869,394) 13,485,922
_______________ _____________
PARTNERSHIP INTEREST TRANSACTIONS:
Net proceeds from shares sold........................................... 24,675,601 2,940,303
Cost of shares redeemed................................................. (38,121,994) (45,932,630)
_______________ _____________
(DECREASE) IN NET ASSETS FROM PARTNERSHIP INTEREST TRANSACTIONS....... (13,446,393) (42,992,327)
_______________ _____________
TOTAL (DECREASE) IN NET ASSETS.................................... (25,315,787) (29,506,405)
NET ASSETS:
Beginning of year....................................................... 159,382,884 134,067,097
_______________ _____________
End of year (including undistributed investment income-net:
$6,034,763 in 1994 and $7,058,630 in 1995)............................ $134,067,097 $104,560,692
============== ==============
SHARES SHARES
_______________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 701,283 84,174
Shares redeemed......................................................... (1,107,058) (1,319,377)
_______________ _____________
NET (DECREASE) IN SHARES OUTSTANDING.................................. (405,775) (1,235,203)
============== ==============
</TABLE>
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.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
_______________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995
_______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $25.58 $30.06 $29.24 $35.66 $32.99
_______ ______ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net........................ .67(1) .50(1) .14(2) .33(2) 1.01
Net realized and unrealized gain (loss)
on investments............................. 3.81(1) (1.32)(1) 6.28(2) (3.00)(2) 2.97
_______ ______ ______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS........... 4.48 (.82) 6.42 (2.67) 3.98
_______ ______ ______ ______ ______
Net asset value, end of year................. $30.06 $29.24 $35.66 $32.99 $36.97
======== ====== ====== ======= ========
TOTAL INVESTMENT RETURN (3)...................... 17.51% (2.73%) 21.96% (7.49%) 12.06%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 1.50%(4) 1.50%(4) 1.37% 1.40% 1.46%
Ratio of interest expense and dividends on securities
sold short to average net assets........... .12% .11% .13% .- .01%
Ratio of net investment income to average net assets 2.39% 1.67% .96% .57% .86%
Portfolio Turnover Rate...................... 419.67% 439.07% 186.97% 147.28% 225.45%
Net Assets, end of year (000's Omitted)...... $54,469 $111,364 $159,383 $134,067 $104,561
(1) Based on an average of shares outstanding at each month end.
(2) Per share data has been restated for comparative purposes.
(3) Exclusive of sales load.
(4) Net of expenses reimbursed.
</TABLE>
See notes to financial statements.
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
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. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. Premier
Mutual Fund Services, Inc. (the "Distributor") acts as the distributor of the
Fund's shares. The Distributor, located at One Exchange Place, Boston,
Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc. As of December 31, 1995, Dreyfus
Partnership Management Inc., a wholly-owned subsidiary of the Manager, held
36,514 shares. The Manager is a direct subsidiary of Mellon Bank, N.A.
Effective on January 1, 1996, the Fund was reorganized as a Massachusetts
business trust under the name Dreyfus Global Growth 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. 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, 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 discounts on investments, is recognized on
the accrual basis.
(D) DISTRIBUTIONS TO INVESTORS: Distributions from investment income-net
and distributions from net realized capital gains may be allocated and paid
annually after the end of the year in which earned.
(E) 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.
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2-BANK LINE OF CREDIT:
In accordance with an agreement with a bank, the Fund may borrow up to
$10 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. Outstanding borrowings on December 31, 1995
under the line of credit, amounted to $2,210,000, at an annualized rate of
6.53%.
The average daily amount of short-term debt outstanding during the year
ended December 31, 1995 was approximately $85,000, with a related weighted
annualized interest rate of 6.67%. The maximum amount borrowed at any time
during the year ended December 31, 1995 was $2,210,000.
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, brokerage, interest on borrowings
(which, in the view of Stroock & Stroock & Lavan, counsel to the Fund, also
contemplates dividends and interest accrued on securities sold short) and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund, the Fund may deduct from payments to be made to
the Manager, or the Manager will bear the amount of such excess expenses to
the extent required by state law. The most stringent state expense limitation
applicable to the Fund presently requires reimbursement of expenses in any
full year that such expenses (excluding distribution expenses and certain
expenses as described above) exceed 21\2% of the first $30 million, 2% of the
next $70 million and 11\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, 1995.
Effective December 1, 1995, 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. Such compensation amounted to $6,960 for the period from
December 1, 1995 through December 31, 1995.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $5,046 during the year ended December 31, 1995 from commissions
earned on sales of Fund shares.
(B) Effective August 1, 1995, the Fund adopted a Shareholder Services
Plan, pursuant to which it pays the Distributor for the provision of certain
services to Fund shareholders a fee at the annual rate of .25 of 1% of the
value of the Fund's average daily net assets. 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 in respect of these
services. The Distributor determines the amounts to be paid to Service
Agents. During the period August 1, 1995 through December 31, 1995, the Fund
was charged $116,110 pursuant to the Shareholder Services Plan.
Prior to August 1, 1995, the Service Plan (the "Plan") pursuant to rule
12b-1 under the Act, provided for the Fund to (a) reimburse the Distributor
for payments to certain Service Agents (a securities dealer,
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
financial institution or other industry professional) for distributing the
Fund's shares and servicing investor accounts ("Servicing") and (b) pay the
Manager, Dreyfus Service Corporation, or any affiliate (collectively
"Dreyfus") for advertising and marketing relating to the Fund and Servicing,
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 have paid Service
Agents a fee in respect of the Fund's shares owned by investors with whom the
Service Agent had a Servicing relationship or for whom the Service Agent was
the dealer or holder of record. Each of the Distributor and Dreyfus
determined the amounts to be paid to Service Agents to which it made payments
and the basis on which such payments were made. The 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 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 period January 1, 1995 through
July 31, 1995, the Fund was charged $186,146 pursuant to the Plan. Effective
August 1, 1995 the Plan was terminated.
(C) Each Managing General Partner who is not an "affiliated person" as
defined in the Act receives from the Fund an annual fee of $2,500 and an
attendance fee of $250 per meeting. The Chairman of the Board receives an
additional 25% of such compensation.
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, option transactions and forward currency exchange contracts,
during the year ended December 31, 1995:
<TABLE>
<CAPTION>
PURCHASES SALES
_____________ _____________
<S> <C> <C>
Long transactions................................................ $234,493,662 $232,031,688
Short sale transactions.......................................... 5,998,390 4,368,814
_____________ _____________
TOTAL.......................................................... $240,492,052 $236,400,502
============== ==============
</TABLE>
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. At December 31, 1995, there were no
Securities Sold Short outstanding.
In addition, the following summarizes open forward currency exchange
contracts at December 31, 1995:
<TABLE>
<CAPTION>
FOREIGN UNREALIZED
CURRENCY U.S DOLLAR APPRECIATION
FORWARD CURRENCY SALE CONTRACTS AMOUNT PROCEEDS VALUE 12/31/95 (DEPRECIATION)
_______________________________ _______ ________ _______________ _______________
<S> <C> <C> <C> <C>
Japanese Yen, expiring 3/18/96........... 783,121,846 $7,811,689 $7,645,434 $166,255
Swedish Krona, expiring 3/18/96.......... 45,454,500 6,795,613 6,802,529 (6,916)
Swiss Francs, expiring 3/18/96........... 5,481,913 4,741,319 4,787,279 (45,960)
__________
TOTAL.................................. $113,379
==========
</TABLE>
DREYFUS GLOBAL GROWTH, L.P. (A Strategic Fund)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund enters into forward currency exchange contracts in order to hedge
its exposure in foreign currency exchange rates on
its foreign portfolio holdings. When executing forward currency exchange
contracts, the Fund is obligated to buy or sell a
foreign currency at a specified rate on a certain date in the future. With
respect to sales of forward currency exchange contracts, the Fund would incur
a loss if the value of the contract increases between the date the forward
contract is opened and the date the forward contract is closed. The Fund
realizes a gain if the value of the contract decreases between those dates.
With respect to purchases of forward currency exchange contracts, the Fund
would incur a loss if the value of the contract decreases between the date
the forward contract is opened and the date the forward contract is closed.
The Fund realizes a gain if the value of the contract increases between those
dates. The Fund is also exposed to credit risk associated with counter party
nonperformance on these forward currency exchange contracts which is
typically limited to the unrealized gains on such contracts that are
recognized in the statement of assets and liabilities.
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. Investments in financial futures require the Fund to
"mark to market" on a daily basis, which reflects the change in the market
value of the contract at the close of each day's trading. Accordingly,
variation margin payments are received or made to reflect daily unrealized
gains or losses. When the contracts are closed, the Fund recognizes a
realized gain or loss. These investments require initial margin deposits with
a custodian, which consist of cash or cash equivalents, up to approximately
10% of the contract amount. The amount of these deposits is determined by the
exchange or Board of Trade on which the contract is traded and is subject to
change. Contracts open at December 31, 1995 and their related unrealized
market appreciation are set forth in the Statement of Financial Futures.
(B) At December 31, 1995, accumulated net unrealized appreciation on
investments and foreign currency exchange contracts was $8,481,015,
consisting of $12,562,261 gross unrealized appreciation and $4,081,246 gross
unrealized depreciation.
At December 31, 1995, 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)
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), including the statements of
investments and financial futures as of December 31, 1995, 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, 1995 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,
1995, 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 and Young LLP signature logo]
New York, New York
February 12, 1996
[Dreyfus lion "d" logo]
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 &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 033AR9512
[Dreyfus logo]
Global
Growth, L.P.
(A Strategic Fund)
Annual Report
December 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS GLOBAL GROWTH, L.P. AND THE MORGAN STANLEY
CAPITAL INTERNATIONAL WORLD INDEX
EXHIBIT A:
______________________________________________________
| | | MORGAN STANLEY |
| | | CAPITAL |
| PERIOD | DREYFUS GLOBAL | INTERNATIONAL |
| | GROWTH, L.P. | WORLD INDEX* |
|------------| -------------------|-------------------|
| 4/10/87 | 10,000 | 10,000 |
| 12/31/87 | 13,308 | 9,483 |
| 12/31/88 | 15,369 | 11,692 |
| 12/31/89 | 18,600 | 13,634 |
| 12/31/90 | 19,677 | 11,313 |
| 12/31/91 | 23,123 | 13,381 |
| 12/31/92 | 22,492 | 12,681 |
| 12/31/93 | 27,431 | 15,535 |
| 12/31/94 | 25,377 | 16,325 |
| 12/31/95 | 28,438 | 19,708 |
|------------|--------------------|-------------------|
*Source: Lipper Analytical Services, Inc.
