<PAGE>
Dreyfus
Global
Growth Fund
Semi-Annual
Report
June 30, 1997
<PAGE>
Dreyfus Global Growth Fund
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
[PERFORMANCE GRAPH]
We are pleased to provide you with this semi-annual report for The Dreyfus
Global Growth Fund for the six months ended June 30, 1997. Over this period,
your Fund produced a total return of 13.52%.* Dreyfus Global Growth Fund
outperformed the Lipper Average for Global Funds but underperformed the Morgan
Stanley Capital International (MSCI(R)) World Index for the period as shown in
the graph at the right. The average total return for the funds in the Lipper
Global Funds Category was 12.88%, and the MSCI total return was 15.38%.** The
Fund's performance during the period is principally attributable to individual
stocks in the U.S. and Europe, selected investments in emerging markets and
profitable currency hedging.
In Europe, a variety of stocks contributed, the most important of which were
four classic growth stocks: sportswear maker Adidas AG, consumer products giant
Henkel KGaA, Italian telecom provider STET SPA and Scandinavian insurer Skandia
Group Forsakrings AB. Electrolux AB, Philips Electronics NV and Volkswagen AG
were also strong performers in your Fund's European portfolio. In Japan,
semiconductor equipment producers Advantest and Tokyo Electronics contributed
positively to performance of the Dreyfus Global Growth Fund, as did global
entertainment giant Sony and sanitary napkin/diaper maker Uni Charm.
Strong performers in the U.S. portfolio were oilfield services leader
Schlumberger, conglomerate Westinghouse Electric and, again in the high growth
semiconductor equipment area, Applied Materials.
Where emerging markets are concerned, your Fund's top performers were Chinese
"Red Chip" companies trading on the Hang Seng exchange in Hong Kong,
particularly China Resources Enterprises, China Overseas Land Investment and
Shanghai Industrial Holdings.
Three factors negatively impacted performance for the period. First,
performance would have been enhanced if more U.S. stocks and fewer Japanese
stocks had been included in the portfolio because the U.S. market performed
better over the period than did Japan. Second, although currency hedges on both
European and Japanese holdings contributed positively to performance over the
period, a rise in the Japanese yen toward the end of the half-year under review
lowered the value of the hedges. Third, small investments in both Malaysia and
the Philippines recorded losses during the first half.
All-in-all your Fund enjoyed a profitable first half of fiscal 1997,
performing better than the average of the Lipper Global
Funds category.
MARKET OVERVIEW AND CURRENT OUTLOOK
At the end of the reporting period, the largest portion of your Fund's assets
were invested in continental Europe. The continent has experienced rapid
earnings growth, against a backdrop of neutral interest rates and strong
liquidity. Additionally, the technical position of most European stock markets
has been strongly positive and the weakening of European currencies against the
U.S. dollar has strengthened the competitive position of continental European
companies. My stock-picking strategy remains the same as explained in our Annual
Letter to Shareholders sent to you early in 1997. Many of your Fund's European
stocks fall into three areas: First, new companies are either being spun out
<PAGE>
of larger offerings or made available to investors for the first time through
initial public stock offerings. Second, your Fund has been positioned to benefit
from major structural changes in Europe's economy, particularly in such areas as
media, personal savings and investing, and technology. Last, many of the Fund's
European investments were in mature companies that have initiated restructuring
programs designed to raise returns on invested capital.
The next largest investment, by geographic area, was Japan. In my last letter
I noted the many positives surrounding the Japanese market (rapid earnings
growth, reasonable valuation, low interest rates and a cheap currency) but
lamented the lack of confidence that Japanese investors have in the market after
its long slide from its high in 1989. The bad news is that the market is up only
5% in U.S. dollars so far this year. The good news is that the market has
rallied nearly 20% in U.S. dollars from the lows reached in the first few days
of 1997 and that investor confidence (and recognition of the positives I had
pointed out earlier ) appears to be improving. As noted in the first section of
this letter, returns on some of your Fund's investments in Japan have been among
the best in the entire portfolio during the first half of 1997. I look forward
to a stronger second half of 1997 for the Japanese market as a whole.
The third largest position in the Fund, by geography, was the U.S. Many of
our indicators have turned neutral to negative for U.S. equities, but the
market's liquidity and technical reading remain quite strong. Even after its
three-year bull run there are attractive growth companies to be found. While a
significant correction in the U.S. market is possible at any time, I remain
positive on the market longer term and would view an important correction as an
opportunity to review the investment potential of the large number of high
quality companies based in the U.S.
There has been a great deal of turmoil in emerging markets over the last few
months. These countries are moving from basic and quite poor economies to middle
level, relatively rich economies, a transition that requires the growth of new,
higher value-added industries. I believe the difficult economic transition that
many Asian emerging nations are going through now could last from a few months
to several years more. As a result, at the end of the reporting period your Fund
had only a few, selective investments in Asia. Of greater interest is Mexico,
which appears to be finally emerging from several years of its own turmoil
caused by the currency devaluation of 1995. Mexico was your Fund's largest
single emerging market investment at the end of the reporting period.
Investments in Europe and Japan remain partially hedged. The currency
weakness that has plagued both areas over the last two years continued through
the first half of 1997.
As manager of the Dreyfus Global Growth Fund I look forward to communicating
with you again at the end of the current year in the Annual Shareholder's
Letter.
Sincerely,
Ron Chapman
Portfolio Manager
July 17, 1997
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.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments June 30, 1997 (Unaudited)
Common Stocks--96.6% Shares Value
- -------------------------------------------------------------------------------- --------- ------------
<S> <C> <C> <C>
Canada--.6% Ranger Oil............................... 65,000 $ 605,312
-------------
Chile--1.5% Empresa Nacional Electricidad, A.D.R..... 50,000 1,128,125
Quinenco, A.D.R.......................... 16,700 308,950
-------------
1,437,075
-------------
China--1.4% China Overseas Land & Investment......... 500,000 403,407
China Resources Enterprises.............. 80,000 392,435
New World Infrastructure..............(a) 70,000 197,895
Shanghai Industrial Holdings............. 50,000 311,108
-------------
1,304,845
-------------
Finland--.6% Cultor Oy, Ser. 1........................ 11,000 582,357
-------------
France--3.5% Banque Nationale de Paris................ 14,000 576,911
Elf Aquitaine............................ 7,500 809,017
Generale Des Eaux........................ 7,000 896,809
Generale Des Eaux (warrants)............. 7,000 4,192
Groupe AB, A.D.R......................(a) 64,000 544,000
Michelin, Cl. B.......................... 10,000 600,425
-------------
3,431,354
-------------
Germany--5.6% Adidas................................... 9,000 995,700
Bankgesellschaft Berlin.................. 25,000 523,072
Daimler Benz............................. 7,000 567,784
GEA...................................... 2,200 866,380
Henkel KGaA.............................. 2,500 132,559
Hoechst.................................. 10,000 424,075
Metro.................................... 8,000 876,354
Volkswagen............................... 1,400 1,072,972
-------------
5,458,896
-------------
Hong Kong--2.0% Cheung Kong Holdings..................... 80,000 790,034
China Light & Power...................... 90,000 510,036
Hong Kong China & Gas.................... 180,000 360,162
Hysan Development........................ 100,000 294,971
-------------
1,955,203
-------------
Ireland--.9% Bank of Ireland.......................... 75,000 823,509
-------------
Israel--1.3% Teva Pharmaceutical Industries, A.D.R.... 20,000 1,295,000
-------------
Italy--3.3% Credito Italiano......................... 600,000 1,098,526
Fiat..................................... 300,000 1,080,141
Stet..................................... 180,000 1,050,194
-------------
3,228,861
-------------
Japan--27.0% Advantest ............................... 12,600 967,539
Bank of Tokyo-Mitsubishi................. 50,000 1,003,490
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Global Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1997 (Unaudited)
Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- --------- ------------
<S> <C> <C> <C>
Japan (continued) Canon, A.D.R............................. 37,000 $ 1,007,329
Circle K Japan........................... 13,200 757,905
Dai Nippon Printing...................... 49,000 1,107,417
Daikin Industries........................ 60,000 544,502
Daiwa Securities......................... 161,000 1,270,017
Family Mart.............................. 12,200 598,289
Fuji Bank................................ 97,000 1,455,899
Fujitsu.................................. 60,000 832,460
Isetan................................... 45,000 557,591
Konami................................... 15,000 560,209
Mabuchi Motor............................ 11,000 638,307
Matsushita Kotobuki Electric Industrial.. 29,000 961,605
Murata................................... 13,000 517,277
NKK...................................(a) 346,000 742,722
Namco.................................... 22,000 848,516
Nichiei.................................. 5,000 580,279
Nintendo................................. 7,000 585,165
Nippon Telegraph & Telephone, A.D.R...... 20,000 975,000
Nitto Electric Works..................... 41,000 729,842
Orix..................................... 7,000 518,586
Pioneer.................................. 26,000 630,715
Rohm..................................... 6,000 617,801
Shiseido................................. 40,000 659,685
Showa Aluminum........................... 140,000 753,752
Sony..................................... 9,000 784,554
Sumitomo Bank............................ 55,000 902,268
Sumitomo Metal Mining.................... 105,000 742,146
Sumitomo Sitix........................... 35,000 751,308
Taiyo Yuden.............................. 40,000 659,685
Tokyo Electronics........................ 16,000 765,095
Toyota Motor............................. 17,000 501,396
Uni Charm................................ 21,000 747,643
-------------
26,275,994
-------------
Malaysia--1.6% KFC Holdings Berhad...................... 180,000 677,576
Tenaga Nasional Berhad................... 180,000 877,283
-------------
1,554,859
-------------
Mexico--2.7% Grupo Carso, SA de CV, Ser. A1........... 50,000 348,763
Grupo Financiero Banamex Accival, Cl.B... 290,000 746,215
Grupo Financiero Bancomer SA de CV, Ser. B 1,700,000 819,122
Grupo Financiero Inbursa, Cl. B.......... 2,407 10,261
Kimberly-Clark, Cl. A.................... 185,000 742,053
-------------
2,666,414
-------------
Netherlands--5.4% Cap Gemini............................... 16,000 505,091
Goudsmit................................. 30,000 911,914
Koninklijke Pakhoed...................... 14,000 493,279
Philips Electronics...................... 18,000 1,293,750
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
Dreyfus Global Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1997 (Unaudited)
Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- --------- ------------
<S> <C> <C> <C>
Netherlands (continued) Schlumberger............................. 11,000 $ 1,375,000
Vnu-Vernigde Nederlandse Uitgeversbedrijven
Verenigd Bezit......................... 33,000 729,226
-------------
5,308,260
-------------
Norway--.6% Schibsted Group.......................... 30,000 593,718
-------------
Philippines--1.2% Ayala Land............................... 65,625 60,394
Philippine Long Distance Telephone....... 19,000 616,508
San Miguel, Cl. B........................ 180,000 474,762
-------------
1,151,664
-------------
Portugal--1.2% Electricidade de Portugal................ 62,000 1,137,194
-------------
Singapore--.7% DBS Land Ltd..........................(a) 215,000 679,960
-------------
Spain--1.3% Repsol S.A............................(a) 30,000 1,268,580
-------------
Sweden--3.1% Electrolux AB, Cl. B..................... 17,000 1,228,995
Granges AB............................(a) 8,500 112,878
Garphyttan Industrier AB................. 47,500 535,401
Skandia Group Forsakrings AB............. 30,000 1,107,728
-------------
2,985,002
-------------
Switzerland--.9% Novartis................................. 550 878,644
-------------
United Kingdom--9.1% British Sky Broadcasting Group........... 170,000 1,244,672
Cadbury Schweppes........................ 100,000 891,072
Capital Radio............................ 85,000 760,240
Grand Metropolitan....................(a) 162,000 1,567,537
JBA Holdings............................. 50,000 732,160
Misys.................................... 18,000 408,096
Powerscreen International................ 50,000 544,544
Reuters Holdings......................... 70,000 737,318
Sema Group............................... 19,000 389,667
Serco Group.............................. 30,000 351,436
Thistle Hotels........................... 110,600 291,700
Vodafone Group........................... 200,000 973,440
-------------
8,891,882
-------------
United States--21.1% AT&T..................................... 15,000 525,937
AlliedSignal............................. 12,800 1,075,200
Aluminum Co. of America.................. 11,000 829,125
American Home Products................... 14,000 1,071,000
Applied Materials........................ 16,000 1,133,000
Chubb.................................... 20,000 1,337,500
Consolidated Stores...................... 25,000 868,750
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
- ------------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1997 (Unaudited)
Common Stocks (continued) Shares Value
- -------------------------------------------------------------------------------- --------- ------------
<S> <C> <C> <C>
United States (continued) Culligan Water Technologies...........(a) 25,000 $ 1,118,750
Disney (Walt)............................ 13,000 1,043,250
Fluor.................................... 20,000 1,103,750
Host Marriott.........................(a) 50,000 890,625
Iridium World Communications............. 50,000 906,250
Lucent Technologies...................... 4,861 350,295
McDonald's............................... 14,000 676,375
Monsanto................................. 25,000 1,076,562
Murphy Oil............................... 30,000 1,462,500
Parker-Hannifin.......................... 15,000 910,312
Sears, Roebuck & Co...................... 25,000 1,343,750
Tommy Hilfiger........................... 17,000 683,187
U.S. Surgical............................ 22,000 819,500
Westinghouse Electric.................... 60,000 1,387,500
-------------
20,613,118
-------------
TOTAL COMMON STOCKS
(cost $80,965,973 ).................... $ 94,127,701
=============
Preferred Stocks--.8%
- --------------------------------------------------------------------------------
Germany; Henkel KGaA
(cost $556,249)........................ 24,000 $ 822,871
============
Principal
Short-Term Investments--3.2% Amount Value
- -------------------------------------------------------------------------------- ------------ --------------
U.S. Treasury Bills: 5.17%, 8/7/1997.......................... $ 153,000 $ 152,211
5.01%, 9/18/1997......................... 3,012,000 2,978,446
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $3,131,051)...................... $ 3,130,657
============
TOTAL INVESTMENTS (cost $84,653,273)............................................ 100.6% $ 98,081,229
======= ============
LIABILITIES, LESS CASH AND RECEIVABLES.......................................... (.6%) $ (553,253)
======= ============
NET ASSETS...................................................................... 100.0% $ 97,527,976
<FN>
Notes to Statement of Investments:
- ---------------------------------------------------------------------------------------------------------------
(a) Non-income producing.
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities June 30, 1997 (Unaudited)
Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $84,653,273 $98,081,229
Cash............................................. 194,685
Receivable for investment securities sold........ 919,338
Dividends receivable............................. 252,238
Receivable for forward currency exchange contracts 7,674
Prepaid expenses................................. 20,600
-----------
99,475,764
-----------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 65,370
Due to Distributor............................... 19,955
Payable for investment securities purchased...... 1,086,632
Net unrealized (depreciation) on forward
currency exchange contracts--Note 4(a).......... 691,417
Accrued expenses................................. 84,414
-----------
1,947,788
-----------
NET ASSETS..................................................................... $97,527,976
===========
REPRESENTED BY: Paid-in capital.................................. $81,553,337
Accumulated undistributed investment income--net.. 25,504
Accumulated net realized gain (loss) on investments,
forward currency exchange contracts and
foreign currency transactions ................. 3,209,099
Accumulated net unrealized appreciation (depreciation)
on investments, forward currency exchange contracts
and foreign currency transactions.............. 12,740,036
-----------
NET ASSETS..................................................................... $97,527,976
===========
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest authorized). 2,481,471
NET ASSET VALUE, offering and redemption price per share....................... $39.30
=======
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended June 30, 1997 (Unaudited)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $92,751 foreign taxes
withheld at source)............................ $ 724,264
Interest......................................... 61,016
----------
Total Income................................ $ 785,280
EXPENSES: Management fee--Note 3(a)........................ 349,786
Shareholder servicing costs--Note 3(b)........... 164,558
Custodian fees................................... 44,780
Professional fees................................ 32,903
Registration fees................................ 16,079
Trustees' fees and expenses--Note 3(c)........... 15,720
Miscellaneous ................................... 1,929
----------
Total Expenses.............................. 625,755
-----------
INVESTMENT INCOME--NET.......................................................... 159,525
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments and
foreign currency transactions.................. $2,563,850
Net realized gain (loss) on forward currency
exchange contracts
Short transactions............................. 1,300,848
----------
Net Realized Gain (Loss).................... 3,864,698
-----------
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions ............. 7,956,549
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... 11,821,247
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $11,980,772
============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Global Growth Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
------------ -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 159,525 $ 527,265
Net realized gain (loss) on investments.............................. 3,864,698 14,966,097
Net unrealized appreciation (depreciation) on investments............ 7,956,549 (3,697,427)
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 11,980,772 11,795,935
------------ ------------
DIVIDENDS TO SHAREHOLDERS:
From investment income--net........................................... -- (439,378)
In excess of investment income--net................................... -- (134,021)
From net realized gain on investments................................ -- (14,850,060)
In excess of net realized gain on investments........................ -- (655,599)
------------ ------------
Total Dividends.................................................. -- (16,079,058)
------------ ------------
BENEFICIALINTEREST TRANSACTIONS:
Net proceeds from shares sold........................................ 9,032,152 9,280,357
Dividends reinvested................................................. -- 15,250,877
Cost of shares redeemed.............................................. (19,661,195) (28,632,556)
------------ ------------
Increase (Decrease) in Net Assets from Beneficial Interest (10,629,043) (4,101,322)
Transactions ------------ ------------
Total Increase (Decrease) in Net Assets........................ 1,351,729 (8,384,445)
NET ASSETS:
Beginning of Period.................................................. 96,176,247 104,560,692
------------ ------------
End of Period........................................................ $ 97,527,976 $ 96,176,247
------------ ------------
Undistributed investment income (Distributions in excess of investment
income)--net ...................................................... $ 25,504 $ (134,021)
------------ ------------
Shares Shares
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 244,963 231,324
------------ ------------
Shares issued for dividends reinvested............................... -- 443,082
Shares redeemed...................................................... (541,719) (724,738)
------------ ------------
Net Increase (Decrease) in Shares Outstanding.................... (296,756) (50,332)
============ ============
</TABLE>
See notes to financial statements.
<PAGE>
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.
<TABLE>
<CAPTION>
Six Months Ended Year Ended December 31,
June 30, 1997 -------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $34.62 $36.97 $32.99 $35.66 $29.24 $30.06
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net.................... .06 .19 1.01 .33 .14 .50(1)
Net realized and unrealized gain (loss)
on investments........................ 4.62 4.19 2.97 (3.00) 6.28 (1.32)(1)
------ ------ ------ ------ ------ ------
Total from Investment Operations......... 4.68 4.38 3.98 (2.67) 6.42 (.82)
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net..... -- (.18) -- -- -- --
Dividends in excess of investment income--net -- (.06) -- -- -- --
Dividends from net realized gain on investments -- (6.22) -- -- -- --
Dividends in excess of net realized gain
on investments........................ -- (.27) -- -- -- --
------ ------ ------ ------ ------ ------
Total Distributions...................... -- (6.73) -- -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period........... $39.30 $34.62 $36.97 $32.99 $35.66 $29.24
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN..................... 13.52%(2) 11.95% 12.06%(3) (7.49%)(3) 21.96%(3) (2.73%)(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets............................ .67%(2) 1.39% 1.46% 1.40% 1.37% 1.50%(4)
Ratio of interest expense and dividends on
securities sold short to average net assets -- -- .01% -- .13% .11%
Ratio of net investment income
to average net assets................. .17%(2) .51% .86% .57% .96% 1.67%
Portfolio Turnover Rate.................. 65.33%(2) 163.12% 225.45% 147.28% 186.97% 439.07%
Average commission rate paid(5).......... $.0222 $.0263 -- -- -- --
Net Assets, end of period (000's Omitted) $97,528 $96,176 $104,561 $134,067 $159,383 $111,364
<FN>
- ---------------
(1) Based on an average of shares outstanding at each month end.
(2) Not annualized.
(3) Exclusive of sales load.
(4) Net of expenses reimbursed.
(5) 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.
</TABLE>
See notes to financial statements.
<PAGE>
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") is the distributor of the Fund's shares, which are sold to the
public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last sales price on the
national securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices, except for open
short positions, where the asked price is used for valuation purposes. Bid price
is used when no asked price is available. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Trustees. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of exchange.
Forward currency exchange contracts are valued at the forward rate.
(b) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in the 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 amount
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. This may result in distributions that
are in excess of investment income--net and net realized gain on a fiscal year
basis. 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.
<PAGE>
Dreyfus Global Growth Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(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 the Federal Funds rate in effect from time
to time. For the period ended June 30, 1997, the Fund did not borrow under the
line of credit.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee
is computed at the annual rate of .75 of 1% of the value of the Fund's average
daily net assets and is payable monthly.
(b) Under the Shareholder Services Plan, the Fund pays the Distributor for
the provision of certain services an 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 period ended
June 30, 1997, the Fund was charged $116,595 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 $34,890 during the period ended June 30, 1997.
(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 and the Trustee Emeritus receives 50% of such compensation.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended June 30, 1997 amounted to $59,698,015 and $71,251,850,
respectively.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Global Growth Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
In addition, the following summarizes open forward currency exchange contracts at June 30, 1997:
Foreign Unrealized
Currency Appreciation
Foreign Currency Exchange Contracts Amount Proceeds Value (Depreciation)
- --------------------------------- --------------- ------------- ------------ ------------
Sales:
- ------
<S> <C> <C> <C> <C>
British Pounds, expiring 8/20/97........... 2,774,015 $ 4,513,877 $ 4,605,974 $ (92,097)
British Pounds, expiring 9/12/97........... 1,600,000 2,614,240 2,654,720 (40,480)
Dutch Guilders, expiring 7/10/97........... 2,250,000 1,205,013 1,147,140 57,873
Dutch Guilders, expiring 8/20/97........... 1,929,884 1,016,959 986,749 30,210
Dutch Guilders, expiring 9/12/97........... 2,250,000 1,179,864 1,152,251 27,613
French Francs, expiring 7/10/97............ 7,500,000 1,341,634 1,277,161 64,473
French Francs, expiring 8/20/97............ 2,787,021 490,526 475,869 14,657
French Francs, expiring 9/12/97............ 7,500,000 1,308,901 1,282,534 26,367
German Deutsche Marks, expiring 7/10/97.... 800,000 482,102 459,110 22,992
German Deutsche Marks, expiring 8/20/97.... 5,132,938 3,042,642 2,954,549 88,093
German Deutsche Marks, expiring 9/12/97.... 800,000 472,227 461,255 10,972
Italian Lira, expiring 7/10/97............. 1,600,000,000 963,739 942,257 21,482
Italian Lira, expiring 9/12/97............. 1,600,000,000 945,487 940,501 4,986
Japanese Yen, expiring 8/6/97.............. 766,000,000 6,125,550 6,723,368 (597,818)
Japanese Yen, expiring 8/19/97............. 1,319,472,000 11,254,452 11,602,814 (348,362)
Swedish Krona, expiring 7/10/97............ 2,200,000 290,391 285,170 5,221
Swedish Krona, expiring 8/20/97............ 11,538,010 1,511,299 1,497,976 13,323
Swedish Krona, expiring 9/12/97............ 2,200,000 284,974 285,896 (922)
---------
Total $(691,417)
=========
</TABLE>
The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings. 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 gain on each open
contract.
<PAGE>
Dreyfus Global Growth Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(b) At June 30, 1997, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $12,736,539, consisting
of $15,944,791 gross unrealized appreciation and $3,208,252 gross unrealized
depreciation.
At June 30, 1997, 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).
<PAGE>
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. 033SA976
