Dreyfus Global
Growth Fund
SEMIANNUAL REPORT June 30, 2000
(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
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
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, 2000 through June 30, 2000.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Douglas A. Loeffler, CFA.
When the reporting period began, it had become apparent that global economic
growth was substantially stronger than many analysts had expected. In fact, most
global markets had already rebounded sharply from 1998's currency and credit
crises in emerging market countries. The rally continued into the first quarter
of 2000, before peaking in early March.
In April, many developed and emerging market countries around the world
experienced heightened levels of volatility when expensively priced technology
stocks began to decline sharply in the wake of evidence that inflationary
pressures were building. This correction, combined with a strong U.S. dollar
relative to many foreign currencies, erased much of the reporting period's early
gains.
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 17, 2000
DISCUSSION OF FUND PERFORMANCE
Douglas A. Loeffler, CFA, Portfolio Manager
How did Dreyfus Global Growth Fund perform relative to its benchmark?
For the six-month period ended June 30, 2000, the fund produced a total return
of -7.34%.(1) This compares with a -2.56% total return for the fund's benchmark,
the Morgan Stanley Capital International World Index, for the same period.(2)
We attribute the fund' s underperformance to a shift in investor preference.
While growth stocks such as those of telecommunications and media corporations
generally outperformed their value counterparts in the first quarter of 2000,
the increase in share price and valuation of growth stocks helped to trigger a
shift for many investors toward value-oriented investing. Particularly during
the second quarter of 2000, global market sentiment favored value stocks instead
of the growth stocks in which the fund invests.
What is the fund's investment approach?
The fund focuses on individual stock selection. We choose investments on a
company-by-company basis, searching to find the best-managed, best-positioned
companies, wherever they may be. We do not attempt to predict interest rates or
market movements. There are no target weightings for individual countries,
except the United States. The U.S. exposure of the fund will typically remain
with a 25%-75% range, while the weighting of any other country will most likely
not exceed 25% of the fund's assets.
Our goal is to identify companies that we believe have the characteristics
necessary to achieve and sustain growth. Such characteristics include an
established track record, strong market share, strong barriers to entry or
untapped market opportunities. Since many markets overseas are often not as
developed as those in the U.S., a greater
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
emphasis is placed offshore on companies based in emerging market countries. In
both the U.S and overseas, we seek stocks with attractive valuations when
compared to their historical share price, local market benchmarks or earnings
growth rate.
The fund will typically hold 100-150 stocks, broadly invested across countries
and industries, representing what we believe to be the best growth ideas in the
world. We generally sell a stock when it reaches its target price or when we
determine that circumstances have changed and it will most likely not reach that
target sale price.
What other factors influenced the fund's performance?
When the reporting period began, the fund benefited from strong global demand
for growth stocks. The global advance was driven by technology,
telecommunications and media stocks, on which the fund placed a heavy emphasis.
Between mid-March and the end of May, however, the global stock markets were
marked by rapid price swings. Investors grew concerned that stock valuations
were extraordinarily high when compared to historical norms. U.S. and
international markets -- and especially emerging markets -- were highly
vulnerable to rising interest rates. As central banks raised interest rates and
markets grew glutted with new issues, growth stock prices turned downward,
negatively affecting fund performance.
In the U.S., investors sold technology and "new economy" stocks, seeking refuge
in stocks they perceived as relative safe havens: utilities, consumer staples
and health care. Japan was weak through the entire reporting period. Although
both the market and economy continued to disappoint investors, our individual
stock selections performed better than the Japanese market averages and helped
the fund's performance. European markets moved slightly ahead in local currency
terms as countries continued to move away from a centralized economic model and
towards a competitive, market-driven structure. However, weakness in the euro
and British pound relative to the U.S. dollar eroded the returns of the fund's
European investments for U.S. investors.
What is the fund's current strategy?
We have maintained our focus during a challenging period for global growth
stocks, continuing our quest to uncover the strongest growth opportunities
worldwide.
Since mid-March, we have worked to reduce the overall volatility of the fund. In
particular, we have focused on the price we pay for stocks, looking for a
clearer path from concept to profitability and reducing our investment in stocks
with no current earnings.
In the U.S., we have increased our exposure to health care, reduced our
commitment to the financial sector and maintained our position in carefully
selected technology stocks -- a sector that did benefit from a period-end
rebound. In Europe, we have reduced investment in financial firms and sharply
reduced emphasis on commodity telecommunication providers, particularly in
markets with many new entrants. Our European investments now focus on companies
positioned to take advantage of convergence in the telecommunications and
entertainment industries. In our Japanese investments, we continue to focus on
selecting well-run companies that we believe are positioned for growth; our
industry-sector emphasis remains telecommunications and high-end consumer
electronics manufacturers. We are also seeking to take advantage of selected
opportunities in the emerging markets, particularly Latin American stocks tied
closely to U.S. market performance, as well as Asian manufacturers of
semiconductors and telecommunications equipment.
July 17, 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 INC.-- REFLECTS REINVESTMENT OF NET DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) WORLD INDEX IS AN UNMANAGED INDEX OF GLOBAL STOCK MARKET PERFORMANCE,
INCLUDING THE UNITED STATES, CANADA, EUROPE, AUSTRALASIA, NEW ZEALAND AND THE
FAR EAST.
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
June 30, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
COMMON STOCKS--101.1% Shares Value ($)
----------------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL--.8%
Aracruz Celulose, ADR 33,225 641,658
DENMARK--1.0%
Novo Nordisk, Cl. B 4,850 824,503
FINLAND--4.9%
HPY Holding 19,700 901,913
Nokia, ADR 26,850 1,340,822
Perlos 39,175 1,236,786
Tietoenator 11,500 383,356
3,862,877
FRANCE--7.9%
Accor 13,200 540,496
Alcatel 17,500 1,146,706
Bouygues 550 367,213
Dassualt Systemes 9,000 (a) 838,676
STMicroelectronics 8,850 (a) 557,114
Thomson Multimedia 2,525 (a) 163,286
Total Fina Elf 8,311 1,273,082
Vivendi 15,475 1,364,567
6,251,140
HONG KONG--1.0%
China Mobile (Hong Kong) 88,650 (a) 781,811
ISRAEL--1.2%
Check Point Software Technologies 2,700 (a) 571,725
Partner Communications, ADR 38,600 (a) 366,700
938,425
ITALY--3.3%
Alleanza Assicurazioni 83,800 1,103,812
Saipem 139,425 825,828
San Paolo-IMI 40,725 721,324
2,650,964
JAPAN--13.8%
Ajinomoto 50,000 642,418
Don Quijote 3,576 624,997
MURATA MANUFACTURING 3,740 537,769
Mitsubishi Electric 183,000 1,984,733
NEC 60,000 1,887,576
NIPPON TELEGRAPH AND TELEPHONE 68 905,810
COMMON STOCKS (CONTINUED) Shares Value ($)
-----------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
Nippon Television Network 850 554,086
PIONEER 53,000 2,067,926
TOKYO GAS 237,000 667,227
Takeda Chemical Industries 7,000 460,274
Taiyo Yuden 11,000 690,033
11,022,849
LUXEMBOURG--1.0%
Societe Europeenen des Satellites 4,525 759,606
MEXICO--1.1%
Telefonos de Mexico, ADR 15,725 898,291
NETHERLANDS--6.2%
ASM Lithography 20,350 (a) 897,944
Heineken 10,975 667,333
Koninklijke (Royal) Philips Electronics, ADR 52,775 2,506,813
TNT Post 33,175 893,895
4,965,985
SOUTH KOREA--2.3%
Samsung Electronics, ADR 9,425 (b) 1,852,012
SPAIN--2.1%
Altadis 59,375 910,425
Banco Santander Central Hispano 58,050 611,817
Grupo Prisa 5,200 (a) 120,522
1,642,764
SWEDEN--4.7%
Electrolux, Cl. B 37,875 588,175
ForeningsSparbanken 56,750 832,869
Nordic Baltic 102,250 773,582
Telefonaktleboaget LM Ericcson, ADR 77,100 1,542,000
3,736,626
SWITZERLAND--2.2%
Serono, Cl. B 540 449,669
Swatch, Cl. B 580 736,542
Synthes-Stratec, ADR 1,225 (b) 558,049
1,744,260
UNITED KINGDOM--5.8%
BP Amoco, ADR 11,600 656,125
Cable & Wireless 57,850 981,823
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
-----------------------------------------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
Energis 7,775 (a) 292,214
Marconi 58,525 763,378
Nycomed Amersham 71,350 709,900
Scoot.com 148,175 (a) 346,095
Vodafone AirTouch 223,100 903,463
4,652,998
UNITED STATES--41.8%
AMFM 20,841 (a) 1,438,029
AT&T--Liberty Media, Cl. A 13,709 (a) 332,443
Abbott Laboratories 6,970 310,601
Affymetrix 596 (a) 98,415
Amdocs 504 (a) 38,682
America Online 234 (a) 12,344
American Express 2,712 141,363
American Home Products 1,549 91,004
American International 2,691 316,192
Amgen 3,998 (a) 280,860
Analog Devices 3,568 (a) 271,168
Anheuser-Busch 1,762 131,599
Applied Micro Circuits 1,752 (a) 173,010
Automatic Data Processing 3,781 202,520
Bank of New York 2,926 136,059
Baxter International 6,268 440,719
Berkshire Hathaway, Cl. B 94 (a) 165,440
Bristol-Myers Squibb 3,138 182,788
Broadcom, Cl. A 923 (a) 202,079
CIENA 917 (a) 152,852
Celera Genomics 876 (a) 81,906
Cendant 5,872 (a) 82,208
Charles Schwab 2,841 95,529
Cisco Systems 16,921 (a) 1,075,541
Citigroup 20,332 1,225,003
Coca-Cola 13,943 800,851
Colgate-Palmolive 3,148 188,486
Comcast, Cl. A 8,463 (a) 342,751
Comverse Technology 2,148 (a) 199,764
Corning 2,927 789,924
COMMON STOCKS (CONTINUED) Shares Value ($)
-----------------------------------------------------------------------------------------------
UNITED STATES (CONTINUED)
Costco Wholesale 8,431 (a) 278,223
Danaher 2,811 138,969
DeVry 7,431 (a) 196,457
Disney (Walt) 4,469 173,453
EMC 16,022 (a) 1,232,693
E-Tek Dynamics 686 (a) 180,975
EchoStar Communications, Cl. A 2,904 (a) 96,150
Fifth Third Bancorp 4,317 273,050
Foundry Networks 650 71,825
Genentech 1,324 227,728
General Electric 21,972 1,164,516
General Motors, Cl. H 3,631 (a) 318,620
Gillette 1,855 64,809
Global TeleSystems 21,950 (a) 264,772
Guidant 7,108 (a) 351,846
Harley-Davidson 2,495 96,058
Home Depot 5,880 278,651
IDEC Pharmaceuticals 582 (a) 68,276
Inktomi 535 (a) 63,264
Intel 14,058 1,879,379
JDS Uniphase 13,542 (a) 1,442,456
Jabil Circuit 2,839 (a) 140,885
Juniper Networks 1,556 (a) 226,495
Kohl's 4,976 (a) 276,790
Kroger 7,072 (a) 156,026
Level 3 Communications 1,844 (a) 162,272
Lilly (Eli) & Co. 3,776 377,128
Lowe's 2,679 110,006
Maxim Integrated Products 2,346 (a) 159,381
McDonald's 4,433 (a) 146,012
MedImmune 1,183 (a) 87,542
Medtronic 2,221 110,634
Merck & Co. 5,507 421,974
Mercury Interactive 2,718 (a) 262,967
NTL 15,275 (a) 914,591
Network Appliance 1,739 (a) 139,989
Nextel Communications, Cl. A 2,623 (a) 160,495
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
-----------------------------------------------------------------------------------------------
UNITED STATES (CONTINUED)
Omnicom 1,597 142,233
Oracle 4,275 (a) 359,367
PE Corp-PE Biosystems 2,367 155,926
PepsiCo 3,475 154,420
Pfizer 37,754 1,812,192
RF Micro Devices 1,231 (a) 107,866
Redback Networks 1,639 (a) 291,742
SBC Communications 950 41,088
Schering-Plough 4,696 237,148
Siebel Systems 1,101 (a) 180,082
Sprint (PCS) 2,955 (a) 175,822
Sun Microsytems 2,795 (a) 254,170
Sycamore Networks 829 (a) 91,501
Tellabs 4,808 (a) 329,048
Texas Instruments 14,521 997,411
Time Warner 17,410 1,323,160
Tyco International 12,581 596,025
USA Networks 7,134 (a) 154,273
VERITAS Software 2,508 (a) 283,443
VeriSign 1,297 (a) 228,921
Viacom, Cl. B 22,827 (a) 1,556,516
Vitesse Semiconductor 1,428 (a) 105,047
VoiceStream Wireless 1,138 (a) 132,346
Wal-Mart Stores 7,347 423,371
Walgreen 6,612 212,824
Williams Communications 1,657 (a) 54,992
WinStar Communications 1 (a) 34
Yahoo! 1,594 (a) 197,457
33,313,912
TOTAL COMMON STOCKS
(cost $77,098,386) 80,540,681
PREFERRED STOCKS--.6% Shares Value ($)
-----------------------------------------------------------------------------------------------
GERMANY
Marschollek, Lautenschlaeger und Partner
(cost $594,025) 1,025 512,286
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $77,692,411) 101.7% 81,052,967
LIABILITIES, LESS CASH AND RECEIVABLES (1.7%) (1,360,287)
NET ASSETS 100.0% 79,692,680
(A) NON-INCOME PRODUCING.
(B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT JUNE 30, 2000,
THESE SECURITIES AMOUNTED TO$2,410,062 OR APPROXIMATELY 3.0% OF NET ASSETS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 77,692,411 81,052,967
Cash 1,874,541
Receivable for investment securities sold 7,338,816
Dividends receivable 119,582
Receivable for shares of Beneficial Interest subscribed 1,500
Prepaid expenses 17,659
90,405,065
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 74,919
Bank loan payable--Note 2 10,000,000
Payable for investment securities purchased 341,788
Payable for shares of Beneficial Interest redeemed 207,877
Interest payable--Note 2 2,017
Accrued expenses 85,784
10,712,385
--------------------------------------------------------------------------------
NET ASSETS ($) 79,692,680
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 62,724,951
Accumulated investment (loss) (172,324)
Accumulated net realized gain (loss) on investments
and foreign currency transactions 13,792,964
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 3,347,089
--------------------------------------------------------------------------------
NET ASSETS ($) 79,692,680
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial
Interest authorized) 2,017,939
NET ASSET VALUE, offering and redemption price per share ($) 39.49
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $58,946 foreign taxes withheld at source) 389,832
Interest 18,744
TOTAL INCOME 408,576
EXPENSES:
Management fee--Note 3(a) 318,666
Shareholder servicing costs--Note 3(b) 141,209
Custodian fees 59,660
Professional fees 24,571
Trustees' fees and expenses--Note 3(c) 14,615
Registration fees 9,885
Prospectus and shareholders' reports 6,691
Interest expense--Note 2 2,017
Miscellaneous 3,586
TOTAL EXPENSES 580,900
INVESTMENT (LOSS) (172,324)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 13,996,046
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (18,930,048)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (4,934,002)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (5,106,326)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
June 30, 2000 Year Ended
(Unaudited) December 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (172,324) (207,465)
Net realized gain (loss) on investments 13,996,046 14,383,807
Net unrealized appreciation (depreciation)
on investments (18,930,048) 14,013,417
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (5,106,326) 28,189,759
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net -- (8,884)
Net realized gain on investments (8,379,831) (5,246,539)
TOTAL DIVIDENDS (8,379,831) (5,255,423)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold 164,647,809 156,855,299
Dividends reinvested 8,025,126 5,070,209
Cost of shares redeemed (166,635,157) (176,403,198)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS 6,037,778 (14,477,690)
TOTAL INCREASE (DECREASE) IN NET ASSETS (7,448,379) 8,456,646
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 87,141,059 78,684,413
END OF PERIOD 79,692,680 87,141,059
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 3,877,548 4,338,594
Shares issued for dividends reinvested 183,894 116,140
Shares redeemed (3,892,233) (4,869,361)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 169,209 (414,627)
SEE NOTES TO FINANCIAL STATEMENTS.
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, 2000 Year Ended December 31,
------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 47.14 34.76 34.52 34.62 36.97 32.99
Investment Operations:
Investment income (loss)--net (.09)(a) (.11)(a) .16 (.01) .19 1.01
Net realized and unrealized
gain (loss) on investments (2.99) 15.61 .24 4.19 4.19 2.97
Total from Investment Operations (3.08) 15.50 .40 4.18 4.38 3.98
Distributions:
Dividends from
investment income--net -- (.01) (.16) (.11) (.18) --
Dividends in excess of
investment income--net -- -- -- -- (.06) --
Dividends from net realized
gain on investments (4.57) (3.11) -- (2.87) (6.22) --
Dividends in excess of net
realized gain on investments -- -- -- (1.30) (.27) --
Total Distributions (4.57) (3.12) (.16) (4.28) (6.73) --
Net asset value,
end of period 39.49 47.14 34.76 34.52 34.62 36.97
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (7.34)(c) 45.24 1.16 12.27 11.95 12.06(b)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets .68(c) 1.41 1.32 1.34 1.39 1.46
Ratio of interest expense
and dividend on securities
sold short to average net assets .00(c,d) -- .04 .01 -- .01
Ratio of net investment
income (loss) to
average net assets (.20)(c) (.30) .41 (.04) .51 .86
Portfolio Turnover Rate 149.47(c) 256.19 206.70 145.59 163.12 225.45
Net Assets, end of period
($ x 1,000) 79,693 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.
(C) NOT ANNUALIZED.
(D) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The 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, 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. Effective March 22,
2000, Dreyfus Service Corporation (" DSC"), a wholly-owned subsidiary of the
Manager, became the distributor of the fund's shares, which are sold to the
public without a sales charge. Prior to March 22, 2000, Premier Mutual Fund
Services, Inc. was the distributor.
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 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
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
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, 2000, was approximately $27,300 with a related weighted average annualized
interest rate of 7.38%.
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, 2000, the fund was charged $106,222 pursuant to the Shareholder
Services Plan, of which $70,797 was paid to DSC.
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, 2000, the fund was charged $21,203 pursuant to the transfer
agency agreement.
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $30,000 and an attendance fee of $4,000 for each in person meeting
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to April 11, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the fund an annual fee
of $2,500 and an attendance fee of $250 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the fund's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
NOTE 4--Securities Transactions:
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, 2000 amounted to $124,416,680 and $126,737,323, respectively.
At June 30, 2000, accumulated net unrealized appreciation on investments was
$3,360,556, consisting of $7,268,982 gross unrealized appreciation and
$3,908,426 gross unrealized depreciation.
At June 30, 2000, 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).
The Fund
Notes
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
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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 033SA006
