<PAGE>
Dreyfus
Global
Growth
Fund
Semi-Annual Report
June 30, 1996
<PAGE>
Dreyfus Global Growth Fund
Letter to Shareholders
Dear Shareholder:
It is my pleasure to introduce Ronald Chapman, who took over management
of Dreyfus Global Growth Fund in early 1996. He now heads International
Equity Investing for Dreyfus.
Prior to joining our staff, Ron was actively involved in international
research and portfolio management at the Northern Trust Company for the past
10 years. He was instrumental in building that organization's highly
competitive products and performance record in international equities.
Earlier in his career, Ron served as an energy industry analyst in the
investment research departments of Northern Trust and Continental Illinois
Bank.
Ron brings to Dreyfus a disciplined approach to asset allocation and
portfolio construction. We have great confidence in his ability to manage
international investments for the benefit of Dreyfus shareholders.
Sincerely,
[Stephen E. Canter signature logo]
Stephen E. Canter
Chief Investment Officer
The Dreyfus Corporation
Dreyfus Global Growth Fund
Letter to Shareholders
Dear Shareholder:
Dreyfus Global Growth Fund provided a total return of 10.12% for the
six-month period ended June 30, 1996,* well ahead of the 7.08% total return
of the Morgan Stanley Capital International World Index for the same
period.**
During the early portion of this period, the Fund benefited from the
strong performance of Asian housing and real estate stocks as consumers in
that part of the world continue to use their rapidly rising personal incomes
to upgrade their living quarters. Business demand for prime commercial real
estate in Asia was also strong. Your Fund did well despite the fact that its
investments in the U.S. stock market, a strong performer compared to the
World Index during the period, were a smaller-than-average percentage of the
total.
INVESTMENT STRATEGY
As the new manager of your Fund, I would like to take this opportunity to
lay out my investment approach before explaining my current strategy for the
Fund.
During my 12 years in the international equity management business I have
developed an investment process designed to deliver to investors a portfolio
that includes a wide variety of holdings in 15 to 25 markets around the
world, exposure to rapidly growing emerging markets when they are attractive
for investment, and active currency management. The crucial challenge for a
global investor is how to judge the relative attractiveness of various
markets when there are scores to choose from. I address this challenge by
evaluating inputs on growth, valuation, interest rates, liquidity, technical
factors and currency in each of the world's major markets. My work in these
areas is driven by PC-based tools I have developed over time. Markets and
industry sectors will be overweighted, underweighted or market-weighted
relative to those of the Morgan Stanley Capital International World Index.
Markets and industry sectors are overweighted or underweighted by no more
than 70%, with two exceptions. First, the two largest markets in the world,
the U.S. and Japan, have a 50%-150% weighting band. The second exception is
the asset class of emerging markets. While these markets comprise only 4% of
the World Index, the Global Growth Fund will invest up to 20% of its assets
in this area when significant opportunities present themselves. The reason
for this policy is twofold. First, emerging markets have the highest secular
Gross Domestic Product and Earnings Per Share growth rates in the world, and
a global portfolio should offer shareholders substantial exposure to this
long-term opportunity. Second, emerging markets often reach valuation
extremes seldom seen in more developed equity markets. Making a significant
investment at the appropriate time positions the Fund to benefit from these
extraordinary opportunities.
In the investment process I have developed, stocks are managed in a
disciplined way. I search for stocks expected to have higher earnings growth
rates than the market in which they trade. Attractive companies often have
made a corporate change in management, strategy or business structure that
may positively alter their future growth rate. Stocks purchased also need to
have attractive valuations relative to both their own history and that of the
local market. Companies are sold when growth is forecast to fall below my own
or consensus estimates, the valuation target is reached or the weighting in
that market reduced as a result of an asset allocation decision.
Foreign currencies are at least partially hedged, where practicable, when
I believe that a given currency has 10% or more downside risk against the
U.S. dollar over the next 12-18 months.
GLOBAL OVERVIEW
What does my work reveal about world markets at the moment and what have
I done to position your Fund to seek to benefit?
I remained convinced throughout the spring of this year that the low
interest rate policies being pursued by most of the globe's central banks
would produce a period of more or less synchronized growth in the world's
developed and developing economies during the latter half of 1996 and 1997.
Recently, long-term U.S. interest rates have risen as U.S. bond investors
anticipate higher growth. While many of my peers believe interest rates will
rise sharply from the current level of around 7%, it is my view that rates
will trade around current levels for some time. In other words, a higher
level of worldwide growth is now in the market. As a consequence, the Global
Growth Fund is not in a defensive posture at this stage. I believe the most
attractive markets in the world today are selected emerging markets, that
Japan offers upside potential as it emerges from recession, that Europe has
some potentially profitable individual stock opportunities (many of which
involve restructuring), and that the U.S. stock market is now locked in a
broad trading range following its historic rise during 1995 and the first
portion of 1996. The remainder of this letter to shareholders details my
views on each of these major market areas.
EMERGING MARKETS
The growth of emerging markets continues year in and year out at a pace
two to five times that of the developed world. Investor enthusiasm for
emerging markets, however, runs hot and cold. In my opinion, investors are
currently only lukewarm on emerging markets due to concern about the global
interest rate environment. As stated above, I believe interest rates are
settling into a trading range, and that investors' recent fears of escalating
rates are overblown. As this concern fades over the next several months, many
will look anew around the world's markets for growth. The highest growth I
see in the latter half of 1996 and 1997 is in the emerging markets of Asia,
particularly the Philippines, Indonesia, Thailand, Malaysia and, to a lesser
extent, Hong Kong. On average, earnings will grow at 20% in both 1996 and in
1997 in these markets, yet their average price-earnings ratio is only 14:4.
This is well below not only the price-earnings ratio of the U.S. (where I
believe earnings will grow little in 1996 and 1997) and Continental European
markets, but is far below the price-earnings ratios seen in Asian emerging
markets during historical periods when investor enthusiasm was running high.
In short, these markets are fast growing and historically cheap. I am bullish
on Asian emerging markets. I also favor Latin American emerging markets that
are in the process of reform, seeking to become more like the Asian model. I
am particularly bullish on Mexico.
JAPAN
Japan offers attractive upside potential from current levels, although
one must consider how far it has risen from the lows of mid-summer 1995
(about 50%). Earnings are rising strongly, valuation is attractive relative
to the market's history, interest rates are low (and will, I am convinced,
remain low), Japanese investors have large amounts of cash that may find
their way into the market, the Nikkei looks technically sound, and the Yen
supportive. In a world of bull markets more than a decade old, it is useful
to remember that the Japanese market peaked in 1989, stands today at barely
one-half the level of its all-time high of that year, and is thus one of the
few major markets in the world in the process of beginning a fresh bull
market. Currently, your Fund has substantial investments in the Japanese
market.
EUROPE
In this investor's eyes, European markets offer low risk and only
moderate return over the balance of 1996. But beneath the surface are a fair
number of interesting individual investment ideas, many of which have to do
with the type of corporate restructuring that took place in the U.S. over the
last ten years.
THE AMERICAN MARKET
Last on our tour of global markets we arrive in New York. A market that
has risen nearly 50% between the beginning of 1995 and June 28, 1996 deserves
a rest. Particularly when five of the six key variables I look at have turned
neutral-to-negative. My estimate is that U.S. earnings growth will slow from
the torrid 24% pace of 1995 back to the forty-year average of 6% in 1996, and
should improve in 1997 as cost pressures erode margins. Valuation of the U.S.
market is near the top end of the historical range. Interest rates have
bottomed. The huge flows into the market that characterized 1995 and early
1996 appear to be waning (but not reversing). Additionally, the U.S. dollar
appears to be losing the head of steam that had been building late in 1995 and
early in 1996. Only the technical reading on the market remains intact. Let
me stress that I am not bearish on the U.S. stock market. I do believe the
market is settling into a trading range that may hold well into 1997. Your
Fund's exposure to the U.S. stock market will remain low compared to the
World Index benchmark. Having said this, the U.S., being the world's largest
market, continues to offer potentially profitable opportunities in individual
stocks.
The Dreyfus Global Growth Fund seeks to bring you a world of opportunity
to increase your long term capital. I continue to manage the Fund toward that
goal.
Sincerely,
[Ron Chapman signature logo]
Ron Chapman
Portfolio Manager
July 22, 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 unmanaged index of
global stock market performance, consisting of equity securities.
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
Statement of Investments June 30, 1996 (Unaudited)
Common Stocks-86.8% Shares Value
----------- ----------
<S> <C> <C>
Canada-1.0% Ranger Oil...................................... 150,000 $ 1,106,250
----------
Finland-.1% Cultor Oy, Ser. 1............................... 1,600 78,689
----------
France-4.3% Elf Aquitaine................................... 15,000 1,103,040
Groupe Danone................................... 7,000 1,059,144
Lafarge S.A..................................... 22,000 1,331,067
Michelin, Cl. B................................. 20,500 1,001,806
----------
4,495,057
----------
Germany-2.2% Continental AG.................................. 43,000 697,144
Deutsche Bank AG................................ 20,000 945,192
Thyssen AG...................................... 3,800 693,653
----------
2,335,989
----------
Hong Kong-6.1% Cheung Kong Holdings............................ 75,000 540,213
HSBC Holdings................................... 80,000 1,209,302
Hang Seng Bank.................................. 55,000 554,264
Henderson Land Development...................... 75,000 562,015
Hong Kong & China Gas........................... 300,000 478,682
Hutchison Whampoa............................... 75,000 471,899
Hysan Development............................... 190,000 581,783
Hysan Development (Warrants).................(a) 9,500 5,032
New World Infrastructure.....................(b) 200,000 426,357
Sun Hung Kai Properties......................... 65,000 657,138
Swire Pacific, Cl. A............................ 64,000 547,804
Wharf Holdings.................................. 97,000 347,145
----------
6,381,634
----------
Indonesia-2.4% Astra International............................. 510,000 740,005
Gudang Garam.................................... 268,000 1,149,312
Hanjaya Mandala Sampoerna....................... 58,000 660,791
----------
2,550,108
----------
Italy-2.6% Credito Italiano................................ 600,000 704,042
Fiat SPA........................................ 300,000 1,010,691
Parmalat Finanziaria SPA........................ 750,000 999,837
----------
2,714,570
----------
Japan-28.3% Advantest....................................... 1,500 59,507
Alpine Electronics.............................. 51,000 953,488
Circle K Japan.................................. 30,000 1,554,036
Credit Saison................................... 28,000 676,699
Daikin Industries............................... 95,000 1,039,672
Daiwa House Industry............................ 36,000 558,140
Daiwa Securities................................ 51,000 655,814
Fuji Bank....................................... 23,000 495,030
Dreyfus Global Growth Fund
Statement of Investments (continued) June 30, 1996 (Unaudited)
Common Stocks (continued) Shares Value
---------- ---------
Japan (continued) Fuji Photo Film................................. 17,000 $ 536,434
Hitachi......................................... 100,000 930,233
Hitachi Zosen................................... 85,000 481,395
I-O Data Device................................. 11,000 421,341
Ishikawajima-Harima Heavy Industries............ 226,000 1,102,690
Isuzu Motors.................................... 193,000 1,101,851
JUSCO........................................... 29,000 949,476
Kawasaki Heavy Industries....................... 93,000 470,725
Maruzen......................................... 31,000 523,028
Matsushita Electric Industrial.................. 70,000 1,302,326
Mitsubishi Heavy Industries..................... 124,000 1,077,720
Mitsubishi Materials............................ 191,000 1,038,176
Mitusi & Co..................................... 114,000 1,032,394
NKK............................................. 171,000 517,757
Nichiei......................................... 11,000 732,330
Nichii Gakkan................................... 11,000 571,819
Nippon Yakin Kogyo.............................. 100,000 473,324
Nomura Securities............................... 23,000 448,883
Ricoh........................................... 113,000 1,195,440
Rohm............................................ 8,000 528,226
Sanyo Electric.................................. 116,000 707,743
Shiseido........................................ 80,000 1,021,432
Sony............................................ 17,000 1,117,829
Sumitomo Bank................................... 25,000 483,356
Sumitomo Metal Mining........................... 103,000 891,445
TDK............................................. 9,000 536,799
Takashimaya..................................... 64,000 992,248
Tokyo Style..................................... 55,000 958,048
Toyota Motor.................................... 42,000 1,049,521
Xebio........................................... 16,000 599,726
----------
29,786,101
----------
Malaysia-2.4% Commerce Asset Holding.......................... 80,000 487,570
DCB Holdings.................................... 150,000 514,234
Edaran Otomobil Nasional........................ 75,000 718,725
Reynolds (R.J.)................................. 100,000 294,708
Tenaga Nasional................................. 125,000 526,263
----------
2,541,500
----------
Mexico-2.1% Cemex, S.A. de CV, Ser. B....................... 125,000 485,653
Fomento Economico Mexicano de CV, Cl. B......... 175,000 496,372
Grupo Carso, SA de CV, Ser. A1...............(a) 69,000 489,736
Groupo Televisa S.A. ........................... 24,000 738,000
----------
2,209,761
----------
Dreyfus Global Growth Fund
Statement of Investments (continued) June 30, 1996 (Unaudited)
Common Stocks (continued) Shares Value
---------- ----------
Netherlands-2.9% Koninklijke Bijenkorf Beheer N.V. .............. 6,500 $ 548,771
Philips Electronics............................. 16,000 519,906
Toolex Alpha N.V. .............................. 42,000 1,008,000
Vnu-Verenigde Nederlandse Uitgeversbedrijven....
Verenigd Bezit.................................. 60,000 930,913
----------
3,007,590
----------
Sweden-4.5% Ericsson (LM) Telephone, Cl. B, A.D.R. ......... 30,000 645,000
Scania AB, Ser. A............................... 22,000 610,420
Scania AB, Ser. B............................... 42,000 1,168,514
Skandia Group Forsakrings AB.................... 44,000 1,164,442
Svenskt Stal AB, Ser. B......................... 85,000 1,102,315
----------
4,690,691
----------
Switzerland-3.1% Elektrowatt AG.................................. 2,800 1,034,636
Roche Holding AG................................ 130 990,304
Sandoz AG....................................... 1,100 1,256,265
----------
3,281,205
----------
Thailand-1.7% Advanced Info Service........................... 26,000 385,185
Finance One Public PLC.......................... 58,000 374,783
Industrial Finance Corporation of Thailand...... 49,000 220,095
Krung Thai Bank Public.......................... 89,000 417,297
Thai Military Bank Public....................... 100,000 394,011
----------
1,791,371
----------
United Kingdom-5.6% Barclays PLC.................................... 85,000 1,019,213
British Telecommunications PLC.................. 185,000 990,692
Great Universal Stores PLC...................... 100,000 1,014,363
Royal Bank of Scotland Group.................... 130,000 994,805
Telewest PLC.................................(a) 300,000 749,713
Williams Holdings............................... 225,000 1,182,194
----------
5,950,980
----------
United States-17.5% AT&T............................................ 15,000 930,000
AlliedSignal.................................... 18,800 1,073,950
American Home Products.......................... 14,000 841,750
cisco Systems................................(a) 19,000 1,075,875
Cree Research................................... 13,500 202,500
Culligan Water Technologies..................... 25,000 950,000
Digital Equipment............................... 20,000 900,000
First Chicago NBD............................... 25,000 978,125
Ford Motor...................................... 50,000 1,618,750
Landstar Systems.............................(a) 40,000 1,160,000
Lyondell Petrochemical.......................... 50,000 1,206,250
Metromedia International Group...............(a) 100,000 1,225,000
Dreyfus Global Growth Fund
Statement of Investments (continued) June 30, 1996 (Unaudited)
Common Stocks (continued) Shares Value
--------- ---------
United States (continued) Parker-Hannifin................................. 15,000 $ 635,625
Pfizer.......................................... 9,000 642,375
Seagate Technology...........................(a) 20,000 900,000
Union Carbide................................... 25,000 993,750
Varity.......................................(a) 25,000 1,203,125
Warner-Lambert.................................. 16,000 880,000
Witco........................................... 30,000 1,031,250
----------
18,448,325
----------
TOTAL COMMON STOCKS
(cost $87,240,692)............................ $ 91,369,821
=============
Preferred Stocks_1.8%
Germany-1.0% Henkel KGaA..................................... 2,500 $ 1,078,109
----------
Portugal-.8% Banco Commercial Portugese, Cum. Conv........... 16,000 796,000
----------
TOTAL PREFERRED STOCKS
(cost $1,782,061)............................ $ 1,874,109
=============
Principal
Short-Term Investments-12.9% Amount
------------
U.S. Treasury Bills: 4.95%, 7/11/1996................................ $ 13,000 $ 12,981
4.96%, 8/1/1996................................. 3,911,000 3,893,909
4.96%, 8/8/1996................................. 2,188,000 2,176,272
4.99%, 8/22/1996................................ 1,159,000 1,150,354
5.10%, 9/19/1996................................ 6,451,000 6,376,620
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $13,612,360)............................ $ 13,610,136
=============
TOTAL INVESTMENTS (cost $102,635,113)............................................... 101.5% $106,854,066
====== =============
LIABILITIES, LESS CASH AND RECEIVABLES (1.5%) $ (1,534,147)
====== =============
NET ASSETS.......................................................................... 100.0% $105,319,919
====== =============
Note 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 June 30,
1996, this security amounted to $426,357 or .4% of net assets.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
Statement of Assets and Liabilities June 30, 1996 (Unaudited)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $102,635,113)-see statement..................................... $106,854,066
Cash.................................................................... 24,288
Receivable for investment securities sold............................... 912,441
Dividends and interest receivable....................................... 341,565
Net unrealized appreciation on forward currency exchange contracts-Note 4(a)4,103
Prepaid expenses........................................................ 9,106
-------------
108,145,569
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $ 65,241
Due to Distributor...................................................... 21,747
Payable for investment securities purchased............................. 2,602,441
Accrued expenses........................................................ 136,221 2,825,650
---------- -------------
NET ASSETS ................................................................ $105,319,919
=============
REPRESENTED BY:
Paid-in capital......................................................... $ 86,554,847
Accumulated undistributed investment income_net......................... 545,935
Accumulated undistributed net realized gain on investments and
foreign currency transactions......................................... 13,998,847
Accumulated net unrealized appreciation on investments and
foreign currency transactions......................................... 4,220,290
-------------
NET ASSETS at value applicable to 2,587,021 shares outstanding
(unlimited number of $.001 par value shares of Beneficial Interest authorized) $105,319,919
=============
NET ASSET VALUE, offering and redemption price per share
($105,319,919 / 2,587,021 shares)....................................... $40.71
========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
Statement of Operations six months ended June 30, 1996 (Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Income:
Cash dividends (net of $109,877 foreign taxes withheld at source)..... $ 1,029,457
Interest.............................................................. 261,334
------------
Total Income...................................................... $ 1,290,791
Expenses:
Management fee-Note 3(a).............................................. 398,994
Shareholder servicing costs_Note 3(b)................................. 191,741
Professional fees..................................................... 61,038
Custodian fees........................................................ 55,509
Trustees' fees and expenses-Note 3(c)................................. 16,645
Shareholders' reports................................................. 11,686
Registration fees..................................................... 3,533
Interest expense-Note 2............................................... 3,453
Miscellaneous......................................................... 2,257
------------
Total Expenses.................................................... 744,856
------------
INVESTMENT INCOME-NET............................................. 545,935
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments and foreign currency transactions-Note 4(a) $12,375,020
Net realized gain on forward currency exchange contracts-Note 4(a);
Short transactions.................................................... 1,193,409
Net realized gain on financial futures-Note 4(a)........................ 430,418
------------
Net Realized Gain..................................................... 13,998,847
Net unrealized (depreciation) on investments and foreign currency transactions
[including ($282,246) net unrealized (depreciation) on financial futures] (4,260,624)
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 9,738,223
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $10,284,158
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
Statement of Changes in Net Assets
Year Ended Six Months Ended
December 31, June 30, 1996
1995 (Unaudited)
-------------- ------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................. $ 1,023,867 $ 545,935
Net realized gain on investments....................................... 5,290,747 13,998,847
Net unrealized appreciation (depreciation) on investments for the period 7,171,308 (4,260,624)
-------------- ------------
Net Increase In Net Assets Resulting From Operations................ 13,485,922 10,284,158
-------------- ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold.......................................... 2,940,303 4,486,809
Cost of shares redeemed................................................ (45,932,630) (14,011,740)
-------------- ------------
(Decrease) In Net Assets From Beneficial Interest Transactions....... (42,992,327) (9,524,931)
-------------- ------------
Total Increase (Decrease) In Net Assets.......................... (29,506,405) 759,227
NET ASSETS:
Beginning of period.................................................... 134,067,097 104,560,692
-------------- ------------
End of period (including undistributed investment income-net:
$7,058,630 in 1995 and $545,935 in 1996)............................. $104,560,692 $105,319,919
============== ==============
Shares Shares
-------------- -------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 84,174 111,960
Shares redeemed........................................................ (1,319,377) (353,498)
-------------- ------------
Net (Decrease) In Shares Outstanding................................. (1,235,203) (241,538)
============== =============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
Financial Highlights
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Year Ended December 31, Six Months Ended
--------------------------------------------------------- June 30, 1996
PER SHARE DATA: 1991 1992 1993 1994 1995 (Unaudited)
------- ------- ------- ------- ------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $25.58 $30.06 $29.24 $35.66 $32.99 $36.97
------- ------- ------- ------- ------- --------
Investment Operations:
Investment income-net................. .67(1) .50(1) .14(2) .33(2) 1.01 .21
Net realized and unrealized gain (loss)
on investments...................... 3.81(1) (1.32)(1) 6.28(2) (3.00)(2) 2.97 3.53
------- ------- ------- ------- ------- --------
Total from Investment Operations.... 4.48 (.82) 6.42 (2.67) 3.98 3.74
------- ------- ------- ------- ------- --------
Net asset value, end of period........ $30.06 $29.24 $35.66 $32.99 $36.97 $40.71
======= ======= ====== ====== ======= ========
TOTAL INVESTMENT RETURN................... 17.51%(3) (2.73%)(3) 21.96%(3) (7.49%)(3) 12.06%(3) 10.12%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets.......................... 1.50%(5) 1.50%(5) 1.37% 1.40% 1.46% .70%(4)
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% .51%(4)
Portfolio Turnover Rate............... 419.67% 439.07% 186.97% 147.28% 225.45% 90.27%(4)
Average commission rate paid(6)...... _ _ _ _ _ $.0271
Net Assets, end of period (000's Omitted) $54,469 $111,364 $159,383 $134,067 $104,561 $105,320
(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) Not annualized.
(5) Net of expenses reimbursed.
(6) For fiscal years beginning January 1, 1996, the Fund is required
to disclose its average commission rate paid per share for purchases
and sales of investment securities.
See independent accountants' review report and notes to financial statements.
</TABLE>
Dreyfus Global Growth Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1-Significant Accounting Policies:
Dreyfus Global Growth Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company. The Fund's investment objective is capital
growth. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. Premier
Mutual Fund Services, Inc. (the "Distributor") acts as the distributor of the
Fund's shares, which are sold to the public without a sales charge.
On December 15, 1995, the Fund's Trustees approved a change of the Fund's
name, effective January 1, 1996, from "Dreyfus Global Growth, L.P. (A
Strategic Fund)" to "Dreyfus Global Growth Fund." 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 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 the 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 discount on investments, is recognized on
the accrual basis.
(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. 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.
Prior to January 1, 1996 the Fund was a limited partnership and was not
required to distribute net investment income or realized capital gains to
avoid Federal income and excise taxes. Prior years' net investment income and
realized gains and losses had been allocated to shareholders and not paid, in
accordance with the limited partnership structure. This resulted in a
difference between financial reporting purposes versus Federal income tax
purposes, with respect to the treatment of such allocated net investment
income and realized gains and losses. The Fund has therefore reclassified
$23,440,802 from accumulated net realized gains on investments and $7,058,630
from undistributed investment income-net to paid-in-capital. This amount
represented the cumulative effect of such differences. Results of operations
and net assets were not effected by this reclassification.
(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 Internal Revenue 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:
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 Federal Funds rates in
effect from time to time. At June 30, 1996, there were no outstanding
borrowings under the line of credit.
The average daily amount of short-term debt outstanding during the six
months ended June 30, 1996 was approximately $119,000, with a related
weighted annualized interest rate of 2.90%. The maximum amount borrowed at
any time during the six months ended June 30, 1996 was $2,760,000.
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 value
of the Fund's average daily 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 the payment to be made
to the Manager, or the Manager will bear the amount of such excess expense 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 (exclusive of 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 six months ended June 30, 1996.
(b) 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 (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 six months
ended June 30, 1996, the Fund was charged $132,998 pursuant to the
Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $39,878 during the six months ended June 30, 1996.
(c) Each trustee 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 aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the six months ended June 30, 1996 amounted to $88,461,786 and
$104,473,120, respectively.
In addition, the following summarizes open forward currency exchange
contracts at June 30, 1996:
<TABLE>
<CAPTION>
Foreign Unrealized
Currency Appreciation
Forward Currency Sales Contracts: Amount Proceeds Value (Depreciation)
- -------------------------------------- --------------- -------------- ------- ------------
<S> <C> <C> <C> <C>
Dutch Guilders, expiring 9/10/96.......... 2,915,572 $1,720,000 $1,715,345 $ 4,655
Japanese Yen, expiring 9/10/96............ 813,821,250 7,521,453 7,494,440 27,013
Swedish Krona, expiring 9/10/96........... 27,296,880 4,056,000 4,103,560 (47,560)
Swiss Francs, expiring 9/10/96............ 2,497,635 2,025,000 2,005,005 19,995
---------
$ 4,103
==========
</TABLE>
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 may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The Fund is exposed to
market risk as a result of changes in the value of the underlying financial
instruments. Investments in financial futures require the Fund to "mark to
market" on a daily basis, which reflects the change in the market value of
the contracts at the close of each day's trading. Typically, variation margin
payments are received or made to reflect daily realized 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. There were no
financial futures contracts outstanding for the six months ended June 30,
1996.
(b) At June 30, 1996, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $4,223,056,
consisting of $7,698,578 gross unrealized appreciation and $3,475,522 gross
unrealized depreciation.
At June 30, 1996, 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 Fund
Review Report of Ernst & Young LLP, Independent Accountants
Shareholders and Board of Trustees
Dreyfus Global Growth Fund
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus Global Growth Fund, including the statement of investments, as of
June 30, 1996, and the related statements of operations and changes in net
assets and financial highlights for the six month period ended June 30, 1996.
These financial statements and financial highlights are the responsibility of
the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the five years in the
period ended December 31, 1995 and in our report dated February 12, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
August 2, 1996
[Dreyfus lion "d" logo]
Dreyfus Global Growth 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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 033SA966
[Dreyfus logo]
Global
Growth Fund
Semi-Annual
Report
June 30, 1996
