Dreyfus Global
Growth Fund
ANNUAL REPORT December 31, 1999
(reg.tm)
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 Dreyfus and
the fund's other service providers do not properly process and calculate
date-related information from and after January 1, 2000. Dreyfus has taken steps
designed to avoid year 2000-related problems in its systems and to monitor the
readiness of other service providers. 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.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 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
21 Report of Independent Auditors
22 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Global
Growth Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Global Growth Fund,
covering the 12-month period from January 1, 1999 through December 31, 1999.
Inside, you' ll find valuable information about how the fund was managed,
including a discussion with the fund's portfolio manager, Douglas A. Loeffler,
CFA.
International economies surprised many analysts with their resiliency in 1999.
Instead of remaining mired in recession after the currency- and credit-related
dislocations that adversely affected their economies in 1997 and 1998, most
developed and emerging markets enjoyed positive economic growth trends in 1999.
As a result, international stocks generally outperformed U.S. stocks in 1999, as
measured by the MSCI EAFE and the S&P 500 indices. The international stock
markets were led higher by developed markets in Japan and Asia, where economic
recoveries and financial system reforms drove stock prices higher. Europe also
produced generally attractive returns, benefiting from corporate restructuring,
the effects of economic unification and the introduction of a single currency,
the euro. Emerging markets in Asia, Latin America and Eastern Europe also
performed well in 1999.
In our view, these results confirm our long-held belief that diversification
among the world' s stock markets can help boost returns and reduce risks for
long-term investors. We appreciate your confidence over the past year, 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
January 14, 2000
DISCUSSION OF FUND PERFORMANCE
Douglas A. Loeffler, CFA, Portfolio Manager
How did Dreyfus Global Growth Fund perform relative to its benchmark?
For the 12-month period ended December 31, 1999, Dreyfus Global Growth Fund
produced a total return of 45.24%.(1) This was better than the 24.93% total
return provided by the fund' s benchmark, the Morgan Stanley Capital
International World Index, for the same period.(2)
We attribute the portfolio's strong performance primarily to two factors. First,
our success in stock selection helped drive our positive returns, as did our
emphasis on stocks within the technology, telecommunications and media (cable
TV) sectors. Second, the fund's heavy exposure to European markets helped boost
returns, as did our increased exposure to the strong U.S. stock market
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 more complete 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 companies the
management team believes, based on its research, are the best managed and best
positioned within their respective industries. This contrasts with 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
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Pacific Rim and other areas. Our stock selection process focuses on proven
growth companies with strong name brands that are growing market shares and have
high barriers to new competition and untapped market opportunities.
What other factors influenced the fund's performance?
Global markets moved sharply forward during 1999 as investors became
increasingly enthusiastic about opportunities found in the growth stock area.
This shift served to benefit the fund' s new growth investment strategy
After trading in a narrow range for most of 1999, U.S. stocks moved sharply
forward in November to post strong returns on a 12-month basis. Leading this
advance were technology companies, whose managements overcame Y2K-based investor
concerns. The fund was able to capture the advance by increasing its exposure to
U.S. stocks as well as by diversifying its holdings there. Especially impressive
were JDS Uniphase, a manufacturer of fiber optic parts for telecommunications
companies, and Cisco Systems, an Internet infrastructure provider. Of course,
investors should remember that technology is among the most volatile sectors of
the market and, accordingly, the returns recently experienced in that sector
should not be expected over the long term. Strong non-technology performers
included Citigroup (financial) , Wal-Mart Stores and Home Depot (retail), and
General Electric (electrical products). Our holdings in Coca-Cola and Gillette
detracted from the fund's performance, as both companies experienced problems
with new management teams and overseas sales.
In Japan, a strong yen, coupled with a much-needed increase in
communications between corporate managements and shareholders, helped their
stocks rebound beginning in late July. This turnaround continued as soaring
investor confidence helped growth stocks drive the Japanese market. We
underweighted Japan relative to the Index, but our success in stock selection
contributed favorably to returns. The strength of the yen provided additional
rewards. Of particular note were Ryohin Keikaku, a key retailer, and NTT Mobile
Communication Network, a leader in Japan's red-hot wireless Internet access
industry. Kao, a consumer products company, detracted from the fund's
performance and has been sold.
A late-year surge in growth-based investing also moved European markets forward.
Our overweighting in European markets versus the Index captured this advance,
while our stock selections overcame the drag of a weakening euro. In particular,
the fund' s holdings in France and The Netherlands were successful, as was our
focus on technology, telecommunications and media companies. Adding value was
Mannesmann, a German telecommunications company. Detracting from the fund's
performance was Brisa-Auto Estradas de Portugal, a Portuguese utility company
What is the fund's current strategy?
Our strategy has been to additionally diversify the portfolio while increasing
our exposure to midcap stocks and IPOs. We also plan to maintain our emphasis on
technology, telecommunications and media stocks, as well as to increase our
exposure to Europe and decrease our exposure to the U.S. and Japan.
January 14, 2000
(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 THE FAR EAST. THE INDEX INCLUDES NET DIVIDENDS REINVESTED.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Global Growth
Fund and the Morgan Stanley Capital International World Index
- --------------------------------------------------------------------------------
<TABLE>
Average Annual Total Returns AS OF 12/31/99
Inception From
Date 1 Year 5 Years 10 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FUND 4/10/87 45.24% 15.66% 10.94% 13.92%
</TABLE>
(+) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN DREYFUS GLOBAL GROWTH FUND
ON 4/10/87 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE MORGAN STANLEY
CAPITAL INTERNATIONAL WORLD INDEX ON THAT DATE. FOR COMPARATIVE PURPOSES, THE
VALUE OF THE INDEX ON 3/31/87 IS USED AS THE BEGINNING VALUE ON 4/10/87. ALL
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE
FEES AND EXPENSES. THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX, WHICH
IS THE PROPERTY OF MORGAN STANLEY & CO. INCORPORATED, IS AN UNMANAGED INDEX OF
GLOBAL STOCK MARKET PERFORMANCE, INCLUDING THE UNITED STATES, CANADA, EUROPE,
AUSTRALIA, NEW ZEALAND AND THE FAR EAST AND INCLUDES NET DIVIDENDS REINVESTED.
THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. FURTHER
INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF
APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS
AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
<TABLE>
December 31, 1999
COMMON STOCKS--101.3% Shares Value ($)
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<S> <C> <C>
BERMUDA--.1%
Tyco International 3,239 125,916
BRAZIL--1.5%
Petroleo Brasileiro 6,000 1,328,436
CANADA--1.6%
AT&T Canada 21,600 (a) 869,400
Nortel Networks 3,376 340,976
PMC-Sierra 1,324 (a) 212,254
1,422,630
DENMARK--1.0%
Novo Nordisk, Cl. B 6,500 862,863
FINLAND--2.6%
Nokia, ADR 12,096 2,298,240
FRANCE--7.3%
Accor 16,250 785,593
Alcatel 4,000 919,114
Altran Technologies 1,550 937,254
Aventis 17,000 988,551
Elf Aquitaine 3 462
Thomson Multimedia 16,975 915,246
Total Fina, Cl. B 7,561 1,009,647
Vivendi 9,200 831,213
6,387,080
GERMANY--3.1%
Deutsche Bank 9,300 785,887
Mannesmann 5,475 1,321,490
Preussag 10,710 596,883
2,704,260
HONG KONG--1.5%
China Telecom (Hong Kong) 201,000 (a) 1,256,654
IRELAND--2.0%
Esat Telecom, ADR 18,600 (a) 1,701,900
ISRAEL--1.5%
Partner Communication, ADR 49,150 1,271,756
ITALY--2.4%
Alleanza Assicurazoni 84,050 1,031,714
Seat Pagine Gialle 498,625 1,096,486
2,128,200
The Fund
COMMON STOCKS (CONTINUED) Shares Value ($)
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JAPAN--11.4%
Citizen Electronics 7,100 1,285,351
Fujitsu 21,000 957,628
NTT Mobile Communication Network 22 846,071
Nippon Express 122,000 674,528
Nippon Telegraph & Telephone 89 1,524,121
RICOH 57,000 1,074,293
SONY 8,400 2,490,655
SONY, ADR 791 225,237
TDK 6,000 828,457
9,906,341
NETHERLANDS--6.2%
ASM Lithography 9,600 (a) 1,092,000
Getronics 11,000 877,995
KPN 7,925 773,922
STMicroelectronics 5,675 873,904
TNT Post 29,450 844,388
VNU 17,425 916,329
5,378,538
PORTUGAL--1.0%
Brisa-Auto Estradas de Portugal 115,000 883,135
SINGAPORE--1.6%
DBS 56,775 930,625
NatSteel Electronics 98,000 517,803
1,448,428
SOUTH AFRICA--1.5%
De Beers, ADR 44,000 1,273,250
SOUTH KOREA--2.4%
Korea Telecom, ADR 14,875 1,111,906
SK Telecom, ADR 24,694 947,642
2,059,548
SPAIN--2.3%
Banco Santander Central Hispano 68,800 779,344
Telefonica Publicidad e Informacion 25,200 (a) 1,225,384
2,004,728
SWEDEN--2.8%
ForeningsSparbanken 43,000 632,576
Skandia Forsakrings 32,000 967,871
COMMON STOCKS (CONTINUED) Shares Value ($)
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SWEDEN (CONTINUED)
Telefonaktiebolaget LM Ericsson, ADR 13,250 870,360
2,470,807
SWITZERLAND--2.0%
Swatch 825 950,289
Synthes-Stratec, ADR 1,625 744,023
1,694,312
TAIWAN--.9%
Taiwan Semiconductor Manufacturing, ADR 17,953 (a) 807,885
UNITED KINGDOM--5.9%
BP Amoco, ADR 14,500 860,031
Dixons 33,600 807,941
Jazztel, ADR 6,500 423,313
Marconi 42,675 754,973
Pearson 37,000 1,197,416
Vodafone AirTouch, ADR 2,740 135,630
WPP 62,000 982,215
5,161,519
UNITED STATES--38.7%
AMFM 8,008 (a) 626,626
AT&T--Liberty Media, Cl. A 11,798 (a) 669,537
Amazon.com 1,513 (a) 115,177
Amdocs 799 (a) 27,566
America Online 6,507 (a) 490,872
American International 3,886 420,174
Amgen 1,672 (a) 100,424
Apple Computer 3,365 (a) 345,964
Applied Micro Circuits 1,492 (a) 189,857
Associates First Capital, Cl. A 2,440 66,947
Automatic Data Processing 5,491 295,828
BMC Software 1,281 (a) 102,400
Berkshire Hathaway, Cl. B 194 (a) 355,020
Bristol-Myers Squibb 7,207 462,599
Carnival 2,482 118,671
Cendant 6,704 (a) 178,075
Charles Schwab 4,091 156,992
Chiron 2,133 (a) 90,386
Cintas 1,285 68,266
The Fund
COMMON STOCKS (CONTINUED) Shares Value ($)
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UNITED STATES (CONTINUED)
Cisco Systems 13,747 (a) 1,472,647
Citigroup 6,790 377,269
Coca-Cola 6,958 405,304
Colgate-Palmolive 3,597 233,805
Comcast, Cl. A 10,525 528,881
Comverse Technology 1,613 (a) 233,482
Costco Wholesale 6,460 (a) 589,475
Danaher 3,218 155,268
DeVry 8,475 (a) 157,847
Dial 8,491 206,437
EMC 3,874 (a) 423,234
EchoStar Communications, Cl. A 3,341 (a) 325,747
Fannie Mae 4,107 256,431
Fifth Third Bancorp 1,854 136,037
Gannett 4,399 358,793
Genentech 2,066 277,877
General Electric 8,192 1,267,712
General Instrument 1,550 (a) 131,750
General Motors, Cl. H 5,533 (a) 531,168
Gillette 3,432 141,356
Global TeleSystems 21,900 (a) 758,288
go.com 2,695 64,175
Guidant 3,400 (a) 159,800
Harley-Davidson 1,430 91,609
Home Depot 9,199 630,741
IMS Health 11,339 308,279
Infonet Services 3,029 79,511
Intel 9,437 776,783
Interpublic Group of Companies 4,530 261,324
Intimate Brands 1,351 58,262
JDS Uniphase 5,626 (a) 907,544
Jabil Circuit 1,612 (a) 117,676
Kohl's 2,391 (a) 172,600
Level 3 Communications 2,911 (a) 238,338
Lucent Technologies 2,063 154,338
MCI WorldCom 2,619 (a) 138,971
Marsh & McLennan 3,801 363,708
Maxim Integrated Products 3,231 (a) 152,463
COMMON STOCKS (CONTINUED) Shares Value ($)
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UNITED STATES (CONTINUED)
McDonald's 1,513 60,993
MedImmune 602 (a) 99,857
Medtronic 5,295 192,937
Merck & Co. 4,164 279,248
Merrill Lynch & Co. 2,525 210,837
Microsoft 12,748 (a) 1,488,329
Motorola 1,087 160,061
NTL 10,500 (a) 1,309,875
Nextel Communications, Cl. A 2,686 (a) 276,994
Northern Trust 1,235 65,455
Omnipoint 862 (a) 103,979
Oracle 4,550 (a) 509,884
PE Corp-PE Biosystems 2,494 300,059
Pfizer 8,582 278,379
Phone.com 1,089 126,256
Procter & Gamble 2,865 313,897
QUALCOMM 4,908 (a) 865,035
RF Micro Devices 3,113 (a) 213,046
RealNetworks 913 (a) 109,845
Redback Networks 2,558 454,045
Sapient 910 (a) 128,253
Schering-Plough 212 8,944
Siebel Systems 1,789 (a) 150,276
Solectron 1,046 (a) 99,501
Sprint (PCS) 2,096 (a) 214,840
Sun Microsytems 10,657 (a) 825,251
Sycamore Networks 149 45,892
Tandy 1,020 50,171
Tellabs 1,453 (a) 93,264
Texas Instruments 5,781 560,034
Time Warner 9,137 661,861
USA Networks 3,183 (a) 175,861
United Parcel Service, Cl. B 1,607 110,883
UnitedGlobalCom 16,150 (a) 1,140,594
VERITAS Software 1,992 (a) 285,105
VeriSign 1,210 (a) 231,034
Viacom, Cl. B 10,381 (a) 627,402
The Fund
COMMON STOCKS (CONTINUED) Shares Value ($)
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UNITED STATES (CONTINUED)
VoiceStream Wireless 2,764 (a) 393,352
Wal-Mart Stores 5,670 391,939
Warner-Lambert 6,794 556,683
Wells Fargo 3,687 149,093
Western Wireless, Cl. A 1,929 (a) 128,761
Williams Communications 2,424 70,145
WinStar Communications 2,171 (a) 162,554
Yahoo! 1,162 (a) 502,783
33,709,798
TOTAL COMMON STOCKS
(cost $66,001,763) 88,286,224
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Principal
BONDS AND NOTES--.0% Amount ($) Value ($)
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UNITED KINGDOM
British Aerospace Bonds,
7.45%, 11/29/2003
(cost $11,000) 14,443 (b) 14,073
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SHORT-TERM INVESTMENTS--3.6%
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COMMERCIAL PAPER
American Express Credit, 1%, 1/3/2000
(cost $3,099,828) 3,100,000 3,099,828
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TOTAL INVESTMENTS (cost $69,112,591) 104.9% 91,400,125
LIABILITIES, LESS CASH AND RECEIVABLES (4.9%) (4,259,066)
NET ASSETS 100.0% 87,141,059
(A) NON-INCOME PRODUCING.
(B) CONVERTED TO U.S. DOLLARS FROM BRITISH POUNDS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
Cost Value
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ASSETS ($):
Investments in securities--See Statement of Investments 69,112,591 91,400,125
Cash 103,577
Receivable for investment securities sold 1,192,910
Dividends and interest receivable 127,386
Receivable for shares of Beneficial Interest subscribed 31
Prepaid expenses 7,733
92,831,762
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 54,173
Due to Distributor 16,888
Payable for investment securities purchased 4,700,535
Payable for shares of Beneficial Interest redeemed 839,787
Accrued expenses 79,320
5,690,703
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NET ASSETS ($) 87,141,059
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 56,687,173
Accumulated net realized gain (loss) on investments
and foreign currency transactions 8,176,749
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 22,277,137
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NET ASSETS ($) 87,141,059
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SHARES OUTSTANDING
(unlimited number of $.001 par value shares
of Beneficial Interest authorized) 1,848,730
NET ASSET VALUE, offering and redemption price per share ($) 47.14
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended December 31, 1999
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INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $94,917 foreign taxes withheld at source) 687,072
Interest 94,533
TOTAL INCOME 781,605
EXPENSES:
Management fee--Note 3(a) 524,762
Shareholder servicing costs--Note 3(b) 244,370
Custodian fees 93,455
Professional fees 57,659
Trustees' fees and expenses--Note 3(c) 32,319
Registration fees 22,893
Prospectus and shareholders' reports 8,347
Miscellaneous 5,265
TOTAL EXPENSES 989,070
INVESTMENT (LOSS) (207,465)
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency transactions
14,324,857
Net realized gain (loss) on forward currency exchange contracts 58,950
NET REALIZED GAIN (LOSS) 14,383,807
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions 14,013,417
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 28,397,224
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 28,189,759
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended December 31,
----------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income (loss)--net (207,465) 368,796
Net realized gain (loss) on investments 14,383,807 2,189,642
Net unrealized appreciation (depreciation)
on investments 14,013,417 (301,311)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 28,189,759 2,257,127
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (8,884) (360,909)
Net realized gain on investments (5,246,539) --
TOTAL DIVIDENDS (5,255,423) (360,909)
- --------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 156,855,299 120,336,230
Dividends reinvested 5,070,209 336,853
Cost of shares redeemed (176,403,198) (135,359,697)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (14,477,690) (14,686,614)
TOTAL INCREASE (DECREASE) IN NET ASSETS 8,456,646 (12,790,396)
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NET ASSETS ($):
Beginning of Period 78,684,413 91,474,809
END OF PERIOD 87,141,059 78,684,413
Undistributed investment income--net -- 16,065
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 4,338,594 3,394,639
Shares issued for dividends reinvested 116,140 9,969
Shares redeemed (4,869,361) (3,790,910)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (414,627) (386,302)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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>
Year Ended December 31,
-------------------------------------------------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 34.76 34.52 34.62 36.97 32.99
Investment Operations:
Investment income (loss)--net (.11)(a) .16 (.01) .19 1.01
Net realized and unrealized
gain (loss) on investments 15.61 .24 4.19 4.19 2.97
Total from Investment Operations 15.50 .40 4.18 4.38 3.98
Distributions:
Dividends from investment income--net (.01) (.16) (.11) (.18) --
Dividends in excess of investment
income--net -- -- -- (.06) --
Dividends from net realized gain
on investments (3.11) -- (2.87) (6.22) --
Dividends in excess of net realized gain
on investments -- -- (1.30) (.27) --
Total Distributions (3.12) (.16) (4.28) (6.73) --
Net asset value, end of period 47.14 34.76 34.52 34.62 36.97
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TOTAL RETURN (%) 45.24 1.16 12.27 11.95 12.06(b)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to average
net assets 1.41 1.32 1.34 1.39 1.46
Ratio of interest expense and
dividend on securities sold short
to average net assets - .04 .01 - .01
Ratio of net investment income (loss)
to average net assets (.30) .41 (.04) .51 .86
Portfolio Turnover Rate 256.19 206.70 145.59 163.12 225.45
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Net Assets, end of period ($ x 1,000) 87,141 78,684 91,475 96,176 104,561
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
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., which is a
wholly-owned subsidiary of Mellon Financial Corporation. 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
NOTES TO FINANCIAL STATEMENTS (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, if any, 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.
During the period ended December 31, 1999, the fund increased accumulated
undistributed investment income-net by $200,284 and decreased accumulated net
realized gain (loss) on investments by $119,330 and paid-in capital by $80,954.
Net assets were not affected by this reclassification.
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 December 31, 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
December 31, 1999, the fund was charged $174,921 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 December 31, 1999, the fund was charged $139,696 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 The Fun
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 December 31, 1999 amounted to $177,159,206 and $193,167,163,
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 December 31, 1999, there were no open forward currency exchange
contracts.
(b) At December 31, 1999, accumulated net unrealized appreciation on investments
was $22,287,534, consisting of $23,349,176 gross unrealized appreciation and
$1,061,642 gross unrealized depreciation.
At December 31, 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).
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Global Growth Fund
We have audited the accompanying statement of assets and liabilities of Dreyfus
Global Growth Fund, including the statement of investments, as of December 31,
1999, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and financial highlights for each of the years indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund' s management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 1999 by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Global Growth Fund at December 31, 1999, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the indicated
years, in conformity with accounting principles generally accepted in the United
States.
[Ernst and Young LLP signature logo]
New York, New York
February 9, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund elects to provide each shareholder
with their portion of the fund's foreign taxes paid and the income sourced from
foreign countries. Accordingly, the fund hereby makes the following designations
regarding its fiscal year ended December 31, 1999:
--the total amount of taxes paid to foreign countries was $94,917.
--the total amount of income sourced from foreign countries was $579,125.
As required by Federal tax law rules, shareholders will receive notification of
their proportionate share of foreign taxes paid and foreign source income for
the 1999 calendar year with Form 1099-DIV which will be mailed by January 31,
2000.
Additionally, for Federal tax purposes, the fund hereby designates $2.3640 per
share as a long-term capital gain distribution of the $3.1070 per share paid on
December 21, 1999.
The fund also designates 10.21% of the ordinary dividends paid during the fiscal
year ended December 31, 1999 as qualifying for the corporate dividends received
deduction.
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
100 Church 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) 2000 Dreyfus Service Corporation 033AR9912
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS GLOBAL GROWTH FUND AND THE MORGAN STANLEY
CAPITAL INTERNATIONAL WORLD INDEX
EXHIBIT A:
MORGAN STANLEY
CAPITAL
PERIOD DREYFUS GLOBAL INTERNATIONAL
GROWTH FUND WORLD INDEX*
4/10/87 10,000 10,000
12/31/87 13,308 9,483
12/31/88 15,369 11,692
12/31/89 18,600 13,634
12/31/90 19,677 11,313
12/31/91 23,123 13,381
12/31/92 22,492 12,681
12/31/93 27,431 15,535
12/31/94 25,377 16,325
12/31/95 28,438 19,708
12/31/96 31,838 22,364
12/31/97 35,742 25,889
12/31/98 36,159 32,190
12/31/99 52,518 40,217
*Source: Lipper Analytical Services, Inc.
