Dreyfus Global
Growth Fund
SEMIANNUAL REPORT
June 30, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
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2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
13 Statement of Assets and Liabilities
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Financial Highlights
17 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
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The Fund
Dreyfus Global
Growth Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Global Growth Fund,
covering the six-month period from January 1, 1999 through June 30, 1999.
Inside, you' ll find valuable information about how the portfolio was managed
during the reporting period, including a discussion with the fund's portfolio
manager, Doug Loeffler, CFA.
Many international economies showed marked improvement after many of the world's
central banks lowered key short-term interest rates last fall to stimulate
economic growth. Less restrictive monetary policies especially helped prevent
further economic deterioration in Japan, Asia, Latin America and Eastern Europe,
where the worst of the global currency and credit crisis appears to be behind
us. In contrast, some Western European economies slowed moderately after the
formation of the European Monetary Union (EMU) and the debut of a new currency,
the euro.
These economic conditions produced mixed results for international stocks. Stock
markets in Japan and Asia began to recover over the past six months, showing
their first signs of real strength in over a year. Latin America provided good
results after concerns about Brazil' s currency devaluation abated. European
markets, on the other hand, provided mixed performance.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Global Growth Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
July 15, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Doug Loeffler, CFA, Portfolio Manager
How did Dreyfus Global Growth Fund perform relative to its benchmark?
For the six-month period ended June 30, 1999, Dreyfus Global Growth Fund
produced a total return of 2.64%.(1) In comparison, the fund's benchmark, the
Morgan Stanley Capital International ("MSCI((reg.tm)")) World Index, returned
8.51% for the same period.(2)
We attribute the portfolio' s underperformance to our country allocation
strategy, which emphasized companies located within continental Europe. While
the management team has continued to believe that these investments offer
attractive growth potential, European markets lagged the averages primarily
because of an economic slowdown and a weakening currency.
What is the fund's investment approach?
Dreyfus Global Growth Fund seeks capital growth by investing primarily in the
stocks of foreign and U.S. companies whose fundamental strengths indicate the
potential for earnings growth. Investments in foreign companies involve greater
risks than investments in U.S. companies. Please read the fund's Prospectus for
a discussion of these risks.
The fund currently employs a "bottom-up" approach to stock selection, in which
stocks are chosen according to their individual merits. Stock selection is made
on a company-by-company basis, with particular emphasis given to the companies
that the management team believes are the best managed and best positioned
within their respective industries. This is in contrast to the fund's former use
of a "top-down" approach to stock selection, which relied on identifying
industries and companies likely to benefit from prevailing economic and market
trends.
The fund generally invests at least 25% of its assets in U.S. companies, with
the remainder apportioned among markets in Europe, Japan, the Pacific Rim and
other areas. Our stock selection process focuses pri The Fun
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
marily on proven growth companies with strong name brands, growing market
shares, high barriers to new competition and untapped market opportunities. The
fund' s equity investments may include common stocks, preferred stocks and
convertible securities.
What other factors influenced the fund's performance?
The primary factor influencing the fund' s performance during the six-month
reporting period was the fund' s shift from a "top-down" strategy to a
"bottom-up" investment approach. Based on this approach, the portfolio increased
its exposure to the Japanese and U.K. markets and decreased its exposure to the
U.S. market. While we have continued to add to the Japanese and U.K. markets,
the fund's exposure to both countries was still less than that of the MSCI World
Index as of the end of the reporting period, which ended up hurting the fund's
relative performance.
Almost all of the fund' s Japanese stocks fared well, primarily because the
entire market was driven higher by a surge in foreign-led buying. In fact, as a
whole, the Japanese companies held in the fund performed better than those
Japanese companies held in the Index. Some of the fund's best performing stocks
included Kao, a consumer products company with a strong U.S. sales base, Ryohin
Keikaku, a retailer that has been growing its sales substantially despite
Japan' s deep recession, and Konami, an electronics concern whose contract to
deliver the newest generation of Sony "playstations" has proven successful.
Within the U.K., our holdings in Vodafone, a major cellular company, experienced
significant gains when it purchased AirTouch Communications in the U.S. The
newly created company, Vodaphone AirTouch, is now regarded as the world's
largest wireless communications company.
On the other hand, our heavy exposure to the European markets dampened the
fund' s overall performance. At the same time that many European companies did
not perform as well as we had expected, the fund's performance in U.S. dollar
terms was also adversely affected by weakness in Europe's new currency, the
euro.
<PAGE>
What is the fund's current strategy?
The fund recently began to increase its participation in U.S. blue-chip
companies, primarily household-name growth stocks, along with well-run and
fiscally sound technology companies. Examples of these companies include strong
players in the cable TV and Internet areas. Overseas, the fund is currently
invested to capture what we believe are significant growth opportunities outside
of the U.S. as well -- most notably within technology and telecommunications
companies.
July 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- 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 FAR EAST. THE INDEX IS THE PROPERTY OF MORGAN STANLEY & CO., INCORPORATED
AND INCLUDES NET DIVIDENDS REINVESTED.
The Fund
<PAGE>
<TABLE>
STATEMENT OF INVESTMENTS
June 30, 1999 (Unaudited)
COMMON STOCKS--92.1% Shares Value ($)
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<S> <C> <C>
BELGIUM--.3%
Lernout & Hauspie Speech Products, ADS 5,900 (a) 209,081
BERMUDA--1.2%
Tyco International 8,749 828,968
BRAZIL--1.2%
Petroleo Brasileiro 5,100 557,949
Tele Sudeste Celular, ADS 8,880 257,520
815,469
CANADA--2.9%
AT&T Canada 9,200 (a) 589,375
Le Groupe Videotron 11,500 182,876
Newbridge Networks 10,600 (a) 304,750
Telesystem International Wireless 22,500 (a) 410,780
Toronto-Dominion Bank 11,900 542,127
2,029,908
FINLAND--3.5%
Merita 103,000 587,110
Nokia, ADS 11,095 1,015,886
Tieto, Cl. B 13,700 572,575
UPM-Kymmene 8,075 232,230
2,407,801
FRANCE--4.7%
Accor 2,350 591,966
Altran Technologies 3,400 900,429
Canal Plus 1,900 534,826
Elf Aquitaine 4,150 610,919
Vivendi 7,854 638,216
3,276,356
GERMANY--3.3%
Continental 20,500 487,767
DePfa Deutsche Pfandbriefbank 4,700 427,869
Mannesmann 5,775 864,472
Preussag 9,710 523,344
2,303,452
HONG KONG--.4%
China Telecom (Hong Kong), ADS 5,500 (a) 313,500
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COMMON STOCKS (CONTINUED) Shares Value ($)
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IRELAND--2.0%
Allied Irish Banks 28,000 369,686
Elan, ADS 16,200 (a) 449,550
Esat Telecom, ADS 13,400 (a) 587,925
1,407,161
ITALY--3.6%
Alleanza Assicurazoni 54,000 622,314
Mondadori (Arnoldo) Editore 29,000 497,348
Seat Pagine Gialle 216,000 294,957
Telecom Italia 58,000 603,310
Telecom Italia Mobile-RNC 125,000 465,395
2,483,324
JAPAN--10.7%
Japan Telecom 34 483,106
Kao 34,000 954,977
Kita Kyushu Coca-Cola Bottling 10,800 613,829
Konami 17,900 739,364
NTT Mobile Communication Network 15 203,222
NTT Mobile Communication Network-Bonus Shares 60 802,974
Ryohin Keikaku 2,800 704,337
Shiseido 52,000 779,248
Softbank 3,800 769,418
TDK 6,000 548,699
Takefuji 8,500 878,439
7,477,613
LUXEMBOURG--.3%
Societe Europeenne des Satellites 1,500 218,021
MEXICO--.8%
Telefonos de Mexico, ADR 7,050 569,728
NETHERLANDS--3.8%
ASM Lithography 10,200 (a) 605,625
Benckiser, Cl. B 8,600 460,404
ING Groep 4,500 244,401
STMicroelectronics 9,650 644,897
United Pan-Europe Communications 3,500 (a) 190,451
VNU 12,000 481,043
2,626,821
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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PORTUGAL--.9%
Brisa-Auto Estradas de Portugal 14,500 600,010
SINGAPORE--.9%
Development Bank of Singapore 49,000 599,353
SOUTH KOREA--.7%
Korea Telecom, ADR 13,075 523,000
SPAIN--2.1%
Banco Santander Central Hispano 52,800 551,678
Telefonica 11,510 (a) 556,180
Telefonica Publicidad e Informacion 16,500 (a) 330,290
1,438,148
SWEDEN--2.9%
Electrolux, Cl. B 23,500 494,398
Skandia Forsakrings 29,000 544,984
Skandinaviska Enskilda Banken 46,500 544,097
Telefonaktiebolaget LM Ericsson, ADS 14,200 467,713
2,051,192
SWITZERLAND--.6%
Swisscom 1,175 444,184
TAIWAN--.6%
Taiwan Semiconductor Manufacturing, ADS 12,300 (a) 418,200
UNITED KINGDOM--8.8%
BP Amoco, ADS 4,000 434,000
Compass 45,000 446,568
Diageo 55,128 576,212
Dixons 23,000 430,002
Energis 16,200 (a) 386,704
Glaxo Wellcome, ADR 3,500 198,188
Hilton 173,000 686,449
Pearson 38,000 772,789
Securicor 68,000 597,033
TeleWest Communications 68,000 (a) 305,222
Vodafone AirTouch 39,000 769,129
<PAGE>
UNITED KINGDOM (CONTINUED)
Vodafone AirTouch 950 187,150
WPP 44,000 372,432
6,161,878
UNITED STATES--35.9%
Abercrombie & Fitch, Cl. A 2,818 (a) 135,264
American Express 3,429 446,199
American Home Products 2,275 130,813
American International 3,586 419,786
Amgen 2,026 (a) 123,333
Associates First Capital, Cl. A 5,691 252,182
At Home, Cl. A 1,404 (a) 75,728
Automatic Data Processing 2,308 101,552
Avon Products 1,489 82,640
Baker Hughes 6,243 209,140
Bed Bath & Beyond 1,950 (a) 75,075
Berkshire Hathaway, Cl. B 245 (a) 548,800
Best Buy 2,129 (a) 143,708
Bristol-Myers Squibb 7,458 524,772
Broadcom, Cl. A 1,200 (a) 173,475
Carnival 2,411 116,933
Chancellor Media 2,246 (a) 123,811
Cintas 2,413 162,123
Cisco Systems 18,216 (a) 1,174,932
Citigroup 4,050 192,627
Clear Channel Communications 1,725 (a) 118,917
Clorox 494 52,765
Coca-Cola 9,765 607,797
Colgate-Palmolive 1,747 172,516
Comcast, Cl. A 12,212 469,399
Computer Sciences 2,712 (a) 187,637
Costco Cos. 3,475 (a) 278,217
Danaher 3,126 181,699
DeVry 6,179 (a) 138,255
Dial 4,734 176,046
Disney (Walt) 3,785 116,625
EMC 6,147 (a) 338,085
EchoStar Communications, Cl. A 267 (a) 40,968
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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UNITED STATES (CONTINUED)
Fannie Mae 8,906 608,948
Fifth Third Bancorp 1,801 119,879
Fiserv 3,275 (a) 102,548
Firstar 870 24,360
Franklin Resources 3,224 130,975
Gannett 3,864 275,793
Gap 5,143 259,104
General Electric 9,210 1,040,730
Gillette 4,773 195,693
Global TeleSystems 4,150 (a) 336,150
Harley-Davidson 1,390 75,581
Hasbro 3,975 111,052
Home Depot 6,839 440,688
IMS Health 9,876 308,625
Illinois Tool Works 830 68,060
Intel 11,053 657,653
International Business Machines 3,921 506,789
Interpublic Group Cos. 2,200 190,575
Intimate Brands, Cl. A 1,312 62,180
Intuit 992 (a) 89,404
Jabil Circuit 883 (a) 39,845
Johnson & Johnson 2,759 270,382
Kansas City Southern Industries 2,958 188,757
Kohl's 2,173 (a) 167,728
Lilly (Eli) 3,252 232,924
Lucent Technologies 11,520 776,880
MCI WorldCom 5,990 (a) 516,638
Marsh & McLennan 4,681 353,416
Mattel 4,326 114,369
McDonald's 3,030 125,177
McGraw-Hill Cos. 954 51,456
MediaOne 2,452 (a) 182,368
Medtronic 2,570 200,139
Merck & Co. 7,412 548,488
Microsoft 12,685 (a) 1,144,028
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
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UNITED STATES (CONTINUED)
Motorola 1,457 138,051
Northern Trust 1,368 132,696
PE Corp-PE Biosystems 1,211 138,962
PepsiCo 3,412 131,807
Pfizer 4,834 530,532
Procter & Gamble 1,431 127,717
Qwest Communications 5,596 (a) 185,018
Robert Half International 4,578 (a) 119,028
Safeway 3,025 (a) 149,738
Schering-Plough 10,649 564,397
Schlumberger 3,341 212,780
Schwab(Charles) 1,346 147,892
Solectron 1,094 (a) 72,956
Staples 2,107 (a) 65,185
State Street 1,635 139,588
Sun Microsytems 482 (a) 33,198
TCA Cable TV 1,345 74,648
Tellabs 7,188 (a) 485,639
Texas Instruments 1,947 282,315
Time Warner 9,825 722,138
Tootsie Roll Industries 1,407 54,345
U.S. Bancorp 1,699 57,766
Uniphase 428 (a) 71,048
Vitesse Semiconductor 1,134 (a) 76,390
Walgreen 5,941 174,517
Wal-Mart Stores 10,699 516,227
Warner-Lambert 6,338 439,699
Washington Post, Cl. B 200 107,550
Wells Fargo 7,256 310,194
Wrigley, (Wm) Jr. 717 64,530
Yahoo 357 (a) 61,493
24,997,245
TOTAL COMMON STOCKS
(cost $57,542,369) 64,200,413
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--5.8% Amount ($) Value ($)
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COMMERCIAL PAPER:
American Express, 5.35%, 7/1/99 3,000,000 3,000,000
Prudential Funding, 5.10%, 7/1/99 1,000,000 1,000,000
TOTAL SHORT-TERM INVESTMENTS
(cost $4,000,000) 4,000,000
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TOTAL INVESTMENTS (cost $61,542,369) 97.9% 68,200,413
CASH AND RECEIVABLES (NET) 2.1% 1,474,366
NET ASSETS 100.0% 69,674,779
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999 (Unaudited)
Cost Value
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ASSETS ($):
Investments in securities--See Statement of Investments 61,542,369 68,200,413
Cash 766,128
Receivable for investment securities sold 1,602,234
Receivable for shares of Beneficial Interest subscribed 500,000
Dividends receivable 247,460
Prepaid expenses 10,580
71,326,815
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 44,448
Due to Distributor 13,542
Payable for investment securities purchased 1,335,913
Payable for shares of Beneficial Interest redeemed 194,993
Accrued expenses 63,140
1,652,036
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NET ASSETS ($) 69,674,779
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 60,285,907
Accumulated undistributed investment income--net 218,072
Accumulated net realized gain (loss) on investments
and foreign currency transactions 2,545,713
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 6,625,087
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NET ASSETS ($) 69,674,779
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares of
Beneficial Interest authorized) 1,952,026
NET ASSET VALUE, offering and redemption price per share ($) 35.69
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1999 (Unaudited)
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INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $81,644 foreign taxes withheld at source) 669,002
Interest 28,183
TOTAL INCOME 697,185
EXPENSES:
Management fee--Note 3(a) 262,937
Shareholder servicing costs--Note 3(b) 125,052
Custodian fees 40,883
Professional fees 33,568
Registration fees 16,459
Trustees' fees and expenses--Note 3(c) 14,280
Prospectus and shareholders' reports 535
Miscellaneous 1,464
TOTAL EXPENSES 495,178
INVESTMENT INCOME--NET 202,007
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency transactions
3,327,952
Net realized gain (loss) on forward currency exchange contracts 58,950
NET REALIZED GAIN (LOSS) 3,386,902
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (1,638,633)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,748,269
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,950,276
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1999
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OPERATIONS ($):
Investment income--net 202,007 368,796
Net realized gain (loss) on investments 3,386,902 2,189,642
Net unrealized appreciation (depreciation)
on investments (1,638,633) (301,311)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,950,276 2,257,127
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net -- (360,909)
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BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 74,899,400 120,336,230
Dividends reinvested -- 336,853
Cost of shares redeemed (85,859,310) (135,359,697)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (10,959,910) (14,686,614)
TOTAL INCREASE (DECREASE) IN NET ASSETS (9,009,634) (12,790,396)
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NET ASSETS ($):
Beginning of Period 78,684,413 91,474,809
END OF PERIOD 69,674,779 78,684,413
Undistributed investment income--net 218,072 16,065
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CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,170,462 3,394,639
Shares issued for dividends reinvested -- 9,969
Shares redeemed (2,481,793) (3,790,910)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (311,331) (386,302)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased
(or decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Six Months Ended
June 30, 1999 Year Ended December 31,
----------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
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<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 34.76 34.52 34.62 36.97 32.99 35.66
Investment Operations:
Investment income (loss)--net .10(a) .16 (.01) .19 1.01 .33
Net realized and unrealized
gain (loss) on investments .83 .24 4.19 4.19 2.97 (3.00)
Total from Investment Operations .93 .40 4.18 4.38 3.98 (2.67)
Distributions:
Dividends from investment
income--net -- (.16) (.11) (.18) -- --
Dividends in excess of
investment income--net -- -- -- (.06) -- --
Dividends from net realized gain
on investments -- -- (2.87) (6.22) -- --
Dividends in excess of net
realized gain on investments -- -- (1.30) (.27) -- --
Total Distributions -- (.16) (4.28) (6.73) -- --
Net asset value, end of period 35.69 34.76 34.52 34.62 36.97 32.99
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TOTAL RETURN (%) 2.64(c) 1.16 12.27 11.95 12.06(b) (7.49)(b)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets .70(c) 1.32 1.34 1.39 1.46 1.40
Ratio of interest expense and
dividends on securities sold short
to average net assets -- .04 .01 -- .01 --
Ratio of net investment income
(loss) to average net assets .29(c) .41 (.04) .51 .86 .57
Portfolio Turnover Rate 142.63(c) 206.70 145.59 163.12 225.45 147.28
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Net Assets, end of period
($ x 1,000) 69,675 78,684 91,475 96,176 104,561 134,067
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
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, as amended (the "Act"), as a non-diversified open-end
management investment company. The fund' s investment objective is capital
growth. The Dreyfus Corporation (the "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.
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 custody agreement, the fund receives net
earnings credits based on available cash balances left on deposit.
(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 of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the fund not to distribute such gain.
(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 Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
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The fund has an unused capital loss carryover of approximately $99,000 available
for Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to December 31, 1998. If not applied, the
carryover expires in fiscal 2006.
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. During the period ended June 30, 1999, 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 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, 1999, the fund was charged $87,646 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, 1999, the fund was charged $25,559 pursuant to the transfer
agency agreement.
The Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(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, 1999 amounted to $98,795,356 and $112,389,636,
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 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, 1999, there were no open forward currency exchange
contracts.
(b) At June 30, 1999, accumulated net unrealized appreciation on investments was
$6,658,044, consisting of $8,565,888 gross unrealized appreciation and
$1,907,844 gross unrealized depreciation.
At June 30, 1999, 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).
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For More Information
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to
[email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 033SA996
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