Dreyfus Global Growth Fund
- -----------------------------------------------------------------------------
Letter to Shareholders
Dreyfus Global Growth Fund completed the first half of the current fiscal year
June 30, 1998. Your Fund produced a total return of 10.66%* for the six months
compared to 16.64% recorded by the Morgan Stanley Capital International
(MSCI((reg.tm))) World Index for the same period.**
The Global Growth Fund' s underweight of the U.S. stock market and currency
caused most of the underperformance. The U.S. market rose 17.1% for the period
while the U.S. dollar rose slightly compared to the main European currencies
where the bulk of your Fund' s assets were invested. During this period the
Global Growth Fund had an average of about 30% of its assets invested in the
U.S. compared to 50% for the World Index. Stocks that contributed positively to
the U.S. portfolio over the six-month period ended 6/30/98 included NationsBank
in the finance area, biotechnology developer Biogen and the leading internet
consumer company in the U.S., America OnLine. Stocks in the U.S. portfolio that
fell during the period were Gilead Sciences, also a biotech company, and the
oilfield technology leader Schlumberger.
STRATEGIES FOR EUROPE
Within the Fund's overall strategy, the Global Growth Fund's European strategy
has not changed in the last year. The largest share of your Fund's assets are
invested in Continental Europe. As noted in the 1997 year-end shareholder
letter, many of your Fund's European holdings fall into one of three categories.
One is "new growth companies" that have either been spun out of larger companies
or made available to investors for the first time through initial public
offerings. Strong contributors in this category over the half year under review
include U.K. software maker Misys, airport retailer Aldeasa of Spain and
temporary employment service provider Unique International of the Netherlands.
Second, many of the Fund's European holdings are drivers of broad change within
important industries. U.K.-based international cellular phone operator Vodafone
Group and the pan-European, independent local telephone company Colt Telecom
Group performed strongly in this area. Last, a fair number of your Fund's
European holdings are companies in the midst of restructuring designed to
provide stronger financial returns for shareholders. Strong contributors to
performance in this area over the period include French conglomerate Vivendi
(formerly Generale des Eaux) as well as a large number of financial services
companies. The entire financial services sector is beginning a restructuring and
consolidation similar to that which U.S. and U.K. financial services firms have
undergone over the last ten to 15 years. European financial services companies
must raise returns to compete in the international capital market and to be
successful participants in the ongoing industry consolidation. Among the strong
contributors to performance of the Dreyfus Global Growth Fund in this area for
the period under review were French Banque Nationale de Paris, the Swedish
Svenska Handelbanken Ser. A and, from Switzerland, UBS AG (the new combination
of Union Bank of Switzerland and Swiss Bancorp).
Disappointing performers in Europe for the period include U.K. software
builder JBA Holdings, oil companies Elf Aquitaine and Royal Dutch Petroleum,
semiconductor maker SGS-Thomson Microelectronics and semiconductor equipment
maker ASM Lithography.
STRATEGIES FOR ASIA
Japan continued to lag during the first half of 1998. Your Fund remained
underweight in the Japanese market during the period. However, a number of
Japanese stocks contributed positively to performance for the first half
including bicycle manufacturer Shimano, hard disc drive spindle motor maker
Nidec and the consumer electronics company Aiwa.
In the annual shareholder letter you received from me at the beginning of the
current year I noted:
" The Global Growth investment team's research in the Asia region leads us to
the following current conclusions. First, the damage has most likely already
been done to the currencies and stock markets of these countries. Second, some
but probably not all of these former tigers will return to a strong growth path
in the intermediate future. Third, these markets will probably remain volatile
for much of 1998 and opportunities in a limited number of markets and stocks may
present themselves.
We will continue to conduct research and visit companies to uncover
opportunities."
During the latter half of the period under review, your Fund made a few small,
new commitments to the Hong Kong, Singapore, and South African stock markets.
They include two of the most strongly capitalized banks in the world,
Development Bank of Singapore and Hong Kong & Shanghai Bank (HSBC Holdings),
and, in South Africa, Liberty Life Association of Africa insurance company and
the conglomerate Barlow. The Dreyfus Global Growth investment team believes
these companies will, over the long term, emerge as leaders as the dust settles
in the world of emerging markets. However, these investments contributed
negatively to performance in the period under review.
INVESTMENT APPROACH
My consistent approach to managing your Fund is explained below. The latter
portion of this letter details my current strategy for Dreyfus Global Growth
Fund.
My investment process is 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 developed over time. Markets and industry sectors will be
overweighted, underweighted or market weighted relative to those of the MSCI
World Index. Markets and industry sectors are overweighted or underweighted in a
disciplined manner. The Fund will invest in emerging markets when they are
judged to be attractive. 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, selected emerging markets have the highest secular GDP and EPS
growth rates in the world, and I believe that 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
corporate changes in management, strategy or business structure that are
designed to improve their future growth rate. Stocks purchased also need to have
what I believe to be attractive valuations compared both to their own history
and to that of the local market. Companies typically 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 to 18 months.
MARKET OVERVIEW AND CURRENT OUTLOOK
The focus of your Fund' s investments continues to be Continental Europe.
Europe has become two distinct markets. The U.K. is experiencing declining
corporate earnings growth, high interest rates and poor liquidity. While this
market may become a much more fertile area for investment later in 1998, your
Fund is currently underweight in the London market. Continental Europe is a
completely different story. The Global Growth Fund's investment team believes
the Continent will see strong earnings growth in 1998 even after adjusting for
the difficulties in emerging markets. We believe that Europe is also beginning
to benefit from the creation of private savings schemes and mutual funds as
citizens of that region come increasingly to realize that government-sponsored
pension plans will not provide the only source of funds for a comfortable
retirement.
Many of your Fund's Continental European investments continue to fall into the
three main categories I mentioned in the first portion of this letter. In terms
of countries, the Continental European portfolio is diversified among ten
countries. But the largest market overweights in the region are in those
countries that are the greatest beneficiaries of the European Monetary Union.
These are Italy and some of the smaller markets such as Portugal and Ireland.
Among recently established investments in the Continental European markets are
German retailer Douglas Holding, and Olivetti, an Italian company formerly in
the computer business that is in the process of reinventing itself as a
telephone service provider.
In the year-end 1997 annual shareholder's letter you received at the beginning
of the current year, I noted, "Many of our indicators turned neutral-to-negative
for U.S. equities months ago but the market's liquidity and technical readings
remain quite strong." The Global Growth Fund investment team's analysis of the
U.S. market remains the same. As noted above, the U.S. market continued to
perform relatively well in the first half of 1998 despite rapidly decelerating
earnings growth. There continues to be, in our view, less upside for the U.S.
market than for those in Continental Europe. But in the world's largest equity
market there are nearly always good new individual investment ideas. Two that
have been added during the period under review are the environmental services
giant U.S.A. Waste Service and McDonald' s.
Your Fund remains underweight in Japan where the economy is still mired in
recession and earnings are in decline. Perhaps more importantly, the government
and Japanese companies are beginning, albeit slowly, to implement the
deregulatory and restructuring measures that have attracted equity capital to
other international markets such as Germany, Italy, Spain, South Africa, Brazil
and others. The performance of the German stock market, up 105% over the last 18
months, shows how powerful an effect corporate restructuring can have on share
performance. German companies began serious restructuring efforts in the
mid-1990s. While it is true that economic growth is partially responsible for
the rise in the German Dax Index over the last several years, the higher profit
margins, returns on assets and equity, and higher levels of secular profit
growth produced by restructuring among German companies have, in my opinion,
contributed greatly to the strong performance of the German market relative to
the Japanese Nikkei.
If more Japanese companies begin to embrace reform and restructuring, the
upside potential for the Japanese Nikkei could become very large. But at the
moment, liquidity remains very poor in the Tokyo market. While the economy may
well pick up during the second half of 1998, driving stock prices moderately
higher, the start of a possible new Japanese bull market awaits the
investor-friendly reforms mentioned above.
Following the Asian stock market and currency crisis of the second half of
1997 and early 1998, true economic hardship--bankruptcies, unemployment, even
social unrest--is hitting the region. We believe this difficult period can be
expected to continue for at least 12 months. Nevertheless, as mentioned earlier
in this letter, selected investment opportunities are appearing in the Asian
region. Investors should remember that markets bottom well before good economic
news appears. This bottoming process is, in our view, now well underway. Having
said this, it is important to note that your Fund's emerging markets investments
remain at a low level relative to the investment policy range noted above.
Global Growth Fund investment team members have made research trips to Asia in
March and June of this year and will be heading for the region again in July,
August and September. Our focus is on a group of approximately 35 companies in
the region with strong balance sheets (net cash position), strong business
franchises and excellent management. Over time, new investment opportunities may
emerge from our research on these companies that we believe are the Asian
leaders of the future.
As Portfolio Manager of Dreyfus Global Growth Fund I look forward to
corresponding with you again at the end of the current year in the annual letter
to shareholders.
Sincerely,
[Ron Chapman signature logo]
Ron Chapman
Portfolio Manager
July 17, 1998
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, including the United States, Canada,
Europe, Australia, New Zealand and the Far East. The index includes net
dividends reinvested.
<TABLE>
Dreyfus Global Growth Fund
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Statement of Investments June 30, 1998 (Unaudited)
Common Stocks--101.2% Shares Value
- -------------------------------------------------------
____________ ____________
Brazil--.4% Compania de Saneamento
<S> <C> <C>
Basico do Estado de Sao Paolo 3,000 $ 360,540
____________
France--11.5% Accor 2,500 697,916
Alcatel Alsthom 10,000 2,031,051
Altran Technologies 681 154,270
Axa 9,000 1,009,751
Banque Nationale de Paris 11,500 937,320
LVMH Moet Hennessy 4,500 898,381
Rhodia 10,700 297,649
Rhodia, A.D.R. 34,000 926,500
Societe Generale 4,600 954,017
SGS - Thomson Microelectronics (a) 22,000 1,537,250
Suez Lyonnaise Des Eaux 4,000 656,668
Vivendi 3,500 745,516
Vivendi (Warrants) 7,000 13,744
____________
10,860,033
____________
Germany--8.6% Adidas 4,500 782,511
Commerzbank 24,000 911,644
Douglas Holding 23,000 1,222,106
Hoechst 30,000 1,505,308
Kamps 10,000 295,809
Linde 650 445,649
M.A.N. 2,400 934,203
Viag 2,900 1,991,485
____________
8,088,715
____________
Hong Kong--4.4% Cheung Kong Holdings 200,000 983,607
CLP Holdings 250,000 1,139,151
HSBC Holdings 40,000 978,443
Sun Hung Kai Properties 250,000 1,061,701
____________
4,162,902
____________
Ireland--1.6% Bank Of Ireland 30,000 612,399
Ryanair Holdings, A.D.R. (a) 25,000 890,625
____________
1,503,024
____________
Italy--6.4% Arnoldo Mondadori Editore 40,000 461,424
Banca Popolare Di Brescia 50,000 941,597
ENI 180,000 1,170,518
Ittierre Holding 225,000 721,087
Poligrafici Editoriale 160,000 465,871
Rinascente 100,000 975,376
Telecom Italia 180,000 1,312,739
____________
6,048,612
____________
</TABLE>
<TABLE>
Dreyfus Global Growth Fund
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Statement of Investments (continued) June 30, 1998 (Unaudited)
Common Stocks (continued) Shares Value
- -------------------------------------------------------
____________ ____________
<S> <C> <C>
Japan--4.4% Aiwa 19,000 $ 594,497
Canon 15,000 339,867
Casio Computer 52,000 482,129
Daikin Industries 60,000 385,830
Minebea 46,000 456,939
Nidec 9,000 613,703
Nintendo 5,000 462,147
Shimano 24,000 607,661
Yamanouchi Pharmaceutical 10,000 207,876
____________
4,150,649
____________
Netherlands--4.7% Ing Groep 7,000 457,305
Philips Electronics 11,000 935,000
Royal Dutch Petroleum 19,000 1,051,155
Schlumberger 14,200 970,038
Unique International 30,000 1,015,253
____________
4,428,751
____________
Portugal--2.9% Brisa-Auto Estradas de Portugal 25,000 1,066,703
Electricidade de Portugal 48,000 1,113,216
Portugal Telecom 10,000 528,760
____________
2,708,679
____________
Singapore--4.1% Creative Technology (a) 25,000 303,974
Development Bank 373,500 2,071,308
Keppel 210,000 316,370
Overseas Union Bank 560,000 1,228,944
____________
3,920,596
____________
South Africa--1.0% Barlow 50,000 261,945
Investec Group 9,000 347,024
Liberty Life Association of Africa 18,000 348,835
____________
957,804
____________
Spain--3.9% Adolfo Dominguez (a) 15,000 508,210
Aldeasa 36,800 1,306,750
Centros Comerciales Pryca 30,000 555,121
Repsol 24,000 1,318,217
____________
3,688,298
____________
Sweden--3.5% Fastighets Balder (Units) 18,000 18,002
Electrolux, Cl. B 112,500 1,926,804
Skandia Group Forsakrings 40,000 570,071
Svenska Handelsbanken, Ser. A 18,000 832,604
____________
3,347,481
____________
</TABLE>
<TABLE>
Dreyfus Global Growth Fund
- -----------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1998 (Unaudited)
Common Stocks (continued) Shares Value
- -------------------------------------------------------
____________ ____________
<S> <C> <C>
Switzerland--3.8% Nestle 300 $ 640,869
Swiss Life 900 760,513
Union Bank Of Switzerland 5,825 2,162,093
____________
3,563,475
____________
Taiwan--.5% Taiwan Semiconductor Manufacturing, A.D.R 27,800 469,125
____________
United States--29.7% Aetna 12,000 913,500
Aluminum Co. of America 13,000 857,187
America Online 7,500 795,000
AT&T 16,000 914,000
Biogen 49,000 2,401,000
CBS 30,000 952,500
Chubb 20,000 1,607,500
Citicorp 7,000 1,044,750
ConAgra 31,000 982,313
First Union 21,000 1,223,250
Gateway 2000 25,000 1,265,625
Gilead Sciences 41,000 1,314,563
McDonald's 27,500 1,897,500
MCI Communications 5,000 290,625
Mobil 14,000 1,072,750
NationsBank 18,200 1,392,300
Pennzoil 15,000 759,375
Phelps Dodge 16,000 915,000
Seagate Technology 104,000 2,476,500
Texaco 26,000 1,551,875
Texas Utilities 34,000 1,415,250
USA Waste Service 41,000 2,024,375
____________
28,066,738
____________
United Kingdom--9.8% ARM Holdings 30,600 586,899
British Sky Broadcasting Group 70,000 502,592
Colt Telecom Group (a) 25,000 996,510
Diageo 37,128 439,647
Enterprise Oil 50,000 454,476
Global TeleSystems Group 18,200 887,250
Granada Group 41,000 753,545
Misys 35,857 2,036,268
Scottish & Newcastle 70,000 985,336
Somerfield 115,000 734,583
Vodafone Group 70,000 887,853
____________
9,264,959
____________
TOTAL COMMON STOCKS
(cost $85,764,418) $95,590,381
____________
</TABLE>
<TABLE>
Dreyfus Global Growth Fund
- -----------------------------------------------------------------------------
Statement of Investments (continued) June 30, 1998 (Unaudited)
Preferred Stocks--1.2% Shares Value
- -------------------------------------------------------
____________ ____________
<S> <C> <C>
Brazil--.5% Companhia Energetica de Minas Gerais 14,685 $ 457,081
____________
Germany--.7% Henkel KGaA 7,000 690,866
____________
TOTAL PREFERRED STOCKS
(cost $1,091,027) $ 1,147,947
____________
Principal
Short-Term Investments--3.4% Amount
- -------------------------------------------------------
____________
U.S. Treasury Bills: 4.95%, 10/1/1998 $ 1,317,000 $ 1,300,261
4.97%, 10/8/1998 1,926,000 1,899,671
____________
TOTAL SHORT-TERM INVESTMENTS
(cost $3,200,017) $ 3,199,932
____________
TOTAL INVESTMENTS (cost $90,055,462) 105.8% $99,938,260
_______ ____________
LIABILITIES, LESS CASH AND RECEIVABLES (5.8%) $ (5,447,928)
_______ ____________
NET ASSETS 100.0% $94,490,332
_______ ____________
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
Dreyfus Global Growth Fund
- -----------------------------------------------------------------------------
Statement of Assets and Liabilities June 30, 1998 (Unaudited)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $ 90,055,462 $ 99,938,260
Cash 110,811
Receivable for investment securities sold 1,556,363
Receivable for forward currency exchange contracts 543,589
Dividends and interest receivable 347,778
Prepaid expenses 11,795
_____________
102,508,596
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 69,238
Due to Distributor 19,718
Payable for investment securities purchased 6,603,838
Payable for shares of Beneficial Interest redeemed 950,836
Payable for forward currency exchange contracts 265,642
Interest payable--Note 2 8,594
Accrued expenses 100,398
_____________
8,018,264
_____________
NET ASSETS $ 94,490,332
_____________
REPRESENTED BY: Paid-in capital $ 79,102,690
Accumulated undistributed investment income--net 465,247
Accumulated net realized gain (loss) on investments,
forward currency exchange contracts and
foreign currency transactions 5,048,875
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 9,873,520
_____________
NET ASSETS $ 94,490,332
_____________
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST AUTHORIZED) 2,472,848
NET ASSET VALUE, offering and redemption price per share $38.21
________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
Dreyfus Global Growth Fund
- -----------------------------------------------------------------------------
Statement of Operations Six Months Ended June 30, 1998 (Unaudited)
INVESTMENT INCOME
INCOME: Cash dividends (net of $148,014 foreign taxes
<S> <C> <C>
withheld at source) $ 1,088,388
Interest 31,298
_____________
Total Income $1,119,686
EXPENSES: Management fee--Note 3(a) 361,275
Shareholder servicing costs--Note 3(b) 165,807
Custodian fees 41,219
Interest expense--Note 2 29,036
Professional fees 26,370
Trustees' fees and expenses--Note 3(c) 17,910
Registration fees 12,818
Prospectus and shareholders' reports 6,593
Miscellaneous 1,589
_____________
Total Expenses 662,617
___________
INVESTMENT INCOME--NET 457,069
___________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments and
foreign currency transactions $ 7,922,210
Net realized gain (loss) on forward currency
exchange contracts
Short transactions 157,496
_____________
Net Realized Gain (Loss) 8,079,706
Net unrealized appreciation (depreciation)
on investments and foreign currency
transactions 1,308,489
___________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 9,388,195
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $9,845,264
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
Dreyfus Global Growth Fund
- -----------------------------------------------------------------------------
Statement of Changes in Net Assets
Six Months Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997
_______________ _______________
OPERATIONS:
<S> <C> <C>
Investment income--net $ 457,069 $ (38,663)
Net realized gain (loss) on investments 8,079,706 7,768,638
Net unrealized appreciation (depreciation) on investments 1,308,489 3,781,544
____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations 9,845,264 11,511,519
____________ _____________
DIVIDENDS TO SHAREHOLDERS:
From investment income--net -- (251,558)
From net realized gain on investments -- (6,680,619)
In excess of net realized gain on investments -- (3,030,831)
____________ _____________
Total Dividends -- (9,963,008)
____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold 50,263,959 89,828,509
Dividends reinvested -- 9,578,154
Cost of shares redeemed (57,093,700) (105,656,612)
____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (6,829,741) (6,249,949)
____________ _____________
Total Increase (Decrease) in Net Assets 3,015,523 (4,701,438)
NET ASSETS:
Beginning of Period 91,474,809 96,176,247
____________ _____________
End of Period $94,490,332 $ 91,474,809
____________ _____________
UNDISTRIBUTED INVESTMENT INCOME--NET $ 465,247 $ 8,178
____________ _____________
Shares Shares
____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold 1,322,095 2,304,373
Shares issued for dividends reinvested -- 281,514
Shares redeemed (1,498,906) (2,714,455)
____________ _____________
Net Increase (Decrease) in Shares Outstanding (176,811) (128,568)
____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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.
Six Months Ended
June 30, 1998 Year Ended December 31,
______________________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
__________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $34.52 $34.62 $36.97 $32.99 $35.66 $29.24
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income (loss)--net .19 (.01) .19 1.01 .33 .14
Net realized and unrealized gain (loss)
on investments 3.50 4.19 4.19 2.97 (3.00) 6.28
_______ _______ _______ _______ _______ _______
Total from Investment Operations 3.69 4.18 4.38 3.98 (2.67) 6.42
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net -- (.11) (.18) -- -- --
Dividends in excess of investment
income--net -- -- (.06) -- -- --
Dividends from net realized gain
on investments -- (2.87) (6.22) -- -- --
Dividends in excess of net realized gain
on investments -- (1.30) (.27) -- -- --
_______ _______ _______ _______ _______ _______
Total Distributions -- (4.28) (6.73) -- -- --
_______ _______ _______ _______ _______ _______
Net asset value, end of period $38.21 $34.52 $34.62 $36.97 $32.99 $35.66
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN 10.66%(2) 12.27% 11.95% 12.06%(1) (7.49%)(1) 21.96%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to
average net assets .65%(2) 1.34% 1.39% 1.46% 1.40% 1.37%
Ratio of interest expense and dividends on
securities sold short to average net assets .03%(2) .01% -- .01% -- .13%
Ratio of net investment income (loss) to
average net assets .47%(2) (.04%) .51% .86% .57% .96%
Portfolio Turnover Rate 104.21%(2) 145.59% 163.12% 225.45% 147.28% (186.97%)
Net Assets, end of period (000's Omitted) $94,490 $91,475 $96,176 $104,561 $134,067 $159,383
- -------------------
(1) Exclusive of sales load.
(2) Not annualized.
SEE 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" ) 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 and 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. Under the terms of the custodian agreement, the Fund received net
earnings credits of $1,966 during the period ended June 30, 1998 based on
available cash balances left on deposit. Income earned under this arrangement
is included in interest income.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. 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.
Dreyfus Global Growth Fund
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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.
The average daily amount of borrowings outstanding during the period ended
June 30, 1998 was approximately $937,600 with a related weighted average
annualized interest rate of 6.25%.
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 at 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, 1998, the Fund was charged $120,425 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. During the period
ended June 30, 1998, the Fund was charged $31,688 pursuant to the transfer
agency agreement.
(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, 1998 amounted to $102,256,650 and $98,926,876,
respectively.
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
Dreyfus Global Growth Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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. At June 30, 1998, there
were no open forward currency exchange contracts.
(B) At June 30, 1998, accumulated net unrealized appreciation on investments
was $9,882,798, consisting of $14,486,176 gross unrealized appreciation and
$4,603,378 gross unrealized depreciation.
At June 30, 1998, 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).
(reg.tm)
(reg.tm)
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. 033SA986
Global Growth
Fund
Semi-Annual
Report
June 30, 1998
