LETTER TO SHAREHOLDERS
Dear Shareholder:
The past 12 months have been very volatile for global markets as the
10-year bull market in U.S. bonds has ended. As always, uncertainty
accompanies major change, resulting in a challenging investment environment.
Accordingly, the Fund began to position itself defensively in the first
quarter of 1994 by diversifying out of the emerging markets, increasing
holdings in Japan, and keeping much of our net assets in cash.
For the fiscal year ended October 31, 1994, the total return for Premier
Global Investing, Class A shares was 5.62%.* The total return for Class B
shares was 4.82%.* For the same period, the Morgan Stanley Capital
International World Index total return was 7.65%.**
DEFENSIVE STEPS
Early in 1994, in anticipation of the rise in interest rates, the Fund
took two steps to become more defensive. We kept our cash holdings high,
averaging over 30% during the period, and we reduced the emerging markets
exposure from over 20% to around 12%. In spite of the large reduction, the
remaining exposure to emerging markets was responsible for much of the Fund's
decline in the first half of the year. It should be noted, however, that
these markets, overall, contributed positively to the Fund's performance for
the full year.
Specifically, in Asia we reduced investments in Hong Kong and Malaysia.
Because the Hong Kong dollar is linked to the U.S. dollar, interest rates in
that country typically follow U.S. rates. More than half the earnings of the
Hong Kong listed companies are linked to the property market, either through
development, investment or mortgages. In this rising interest rate
environment, we considered these earnings vulnerable and therefore reduced
Hong Kong holdings significantly. Malaysian investment was reduced to reflect
our concerns over liquidity and overvaluation.
As we mentioned in our interim letter, we also reduced our exposure to
Latin America, specifically Mexico. Our attention was focused on the absence
of any evidence of economic recovery and the heightened political risk
following the Chiapas revolt. Anticipating negative earnings, we sold most
positions.
A BIGGER STAKE IN DEVELOPED MARKETS
Another major change in the portfolio was increased investment in Japan
and Europe. In anticipation of an economic recovery in Japan, that portion of
the portfolio was raised from approximately 4.9% to 17.8%. The situation in
Japan during this period has been complicated by political changes and the
strength of the yen. Nevertheless, the expected economic recovery has begun.
Because of the significant overvaluation of the yen, the Fund has been
partially hedged against its decline. These hedges limited our gains from the
Japanese positions, but overall our Japanese positions were significantly
profitable for the Fund.
While the overall level of European investments has risen by only three
percentage points to 18.4%, there have been important changes in company
selection. In Europe, we have focused on those companies that are competitive
in a global market or where structural changes will enhance profitability in
the next cycle. An example of this is Ericsson (L.M.), Telephone, Cl. B,
A.D.R., a Swedish telephone equipment company that earns over half its
profits from the rapidly growing cellular market. Half of the world's
cellular systems run on Ericsson equipment, positioning the company very well
for future growth. Our European positions were only slightly positive for the
Fund's performance for the year.
During the past year, the Fund made some use of derivatives, particularly
in French bonds and G-7 bonds, as well as using stock index futures. While
the bond trades were not profitable, most of the stock index futures trades
have been profitable. The Fund's net return from the use of derivatives was
slightly negative.
THE FUND'S U.S. STRATEGY
Consistent with our view of rising interest rates in the U.S. we have
remained underweighted in the domestic market. Our exposure here mirrors our
themes in other markets. We are investing in special situations, like Boeing,
and in cyclical areas such as chemicals. Following the demise of the health
care reform proposal in Congress, we have increased our exposure in this area
through both U.S. and European pharmaceutical companies. Our U.S. portfolio
has been a disappointment, causing significant losses to the Fund this year.
We keep a careful watch on comparative valuations of stocks in the Fund.
In the current environment, we think it wise to take profits more readily.
Our cash reserves can be put to good use when values stabilize.
Sincerely,
(logo signature)
Kelly McDermott
Portfolio Manager
November 16, 1994
New York, N.Y.
* Total return represents the change during the period in a
hypothetical account with dividends reinvested, without taking into
account the maximum initial sales charge in the case of Class A shares,
or the applicable contingent deferred sales charge imposed on redemptions
in the case of Class B shares.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. _ The Morgan Stanley
Capital International World Index is an arithmetical average weighted by
market value of the performance of some 1,400 securities listed on the
stock exchanges of the U.S.A., Europe, Canada, Australia, New Zealand and
the Far East. The Index is unmanaged and includes net dividends
reinvested.
<TABLE>
<CAPTION>
PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER GLOBAL
INVESTING CLASS A SHARES
AND THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX
[Exhibit A]
* Source: Lipper Analytical Services, Inc.
AVERAGE ANNUAL TOTAL RETURNS
CLASS A CLASS B
- ------------------------------------------------------------------ -----------------------------------------------------------
% RETURN REFLECTING
% RETURN APPLICABLE CONTINGENT
REFLECTING % RETURN DEFERRED SALES
% RETURN WITHOUT MAXIMUM INITIAL ASSUMING NO CHARGE UPON
PERIOD ENDED 10/31/94 SALES CHARGE SALES CHARGE (4.5%) PERIOD ENDED 10/31/94 REDEMPTION REDEMPTION*
- --------------------- --------------- ------------------ --------------------- ----------- ------------------
<S> <C> <C> <C> <C> <C>
1 Year 5.62% 0.89% 1 Year 4.82% 0.82%
From Inception (1/31/92) 11.13 9.29 From Inception (1/15/93) 10.78 8.71
</TABLE>
Past performance is not predictive of future performance. Share price and
investment return fluctuate and share price may be more or less than original
cost upon redemption.
The above graph compares a $10,000 investment made in Class A shares of
Premier Global Investing on 1/31/92 (Inception Date) to a $10,000 investment
made in the Morgan Stanley Capital International World Index on that date.
All dividends and capital gain distributions are reinvested. Performance for
Class B shares will vary from the performance of Class A shares shown above
due to differences in loads and fees.
The Fund's performance shown in the graph takes into account the maximum
initial sales charge on Class A shares and all other applicable fees and
expenses. The Morgan Stanley Capital International World Index is a widely
accepted, unmanaged index of global stock market performance, including the
United States, Canada, Europe, Australia, New Zealand and the Far East, which
does not take into account charges, fees and other expenses. Further
information relating to Fund performance is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
* Maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
<TABLE>
<CAPTION>
PREMIER GLOBAL INVESTING OCTOBER 31, 1994
<S> <C> <C> <C>
ASSET ALLOCATION DIVERSIFICATION OF FOREIGN INVESTMENTS
[Exhibit B] [Exhibit C]
(Foreign Securities equal 50.0% of Total Net Assets)
TEN LARGEST HOLDINGS
Nippon Telegraph & Telephone.................................... 1.8 %
Jungheinrich A.G................................................ 1.6
Mannesmann A.G.................................................. 1.5
Astra AB, Ser. A................................................ 1.5
BBC Brown Boveri A.G., Ser. A................................... 1.5
OM Group........................................................ 1.4
Ericsson (L.M.), Telephone, Cl. B, A.D.R........................ 1.4
Jardine Matheson Holdings....................................... 1.3
Mattel.......................................................... 1.3
Boeing.......................................................... 1.3
</TABLE>
All percentages shown above are based on Total Net Assets.
<TABLE>
<CAPTION>
PREMIER GLOBAL INVESTING
STATEMENT OF INVESTMENTS OCTOBER 31, 1994
COMMON STOCKS_66.8%
SHARES VALUE
----------- ------------
<S> <C> <C> <C>
ARGENTINA_1.3% Banco de Galicia y Buenos Aires S.A., A.D.S. 15,000 $ 405,000
Banco Frances del Rio de la Plata S.A. 34,000 289,058
Compania Interamericana de Automobiles S.A. 20,000 279,056
Comercial del Plata S.A. ........ 330,000 1,112,322
------------
2,085,436
------------
AUSTRIA_0.9% Mayr-Melnhof Karton A.G. (a) 15,000 811,383
Mayr-Melnhof Karton A.G. ........ 10,000 540,922
------------
1,352,305
------------
CANADA_0.8%....Canadian Pacific 80,000 1,280,000
------------
CHILE_ 3.1% Compania de Telefonos de Chile S.A., A.D.S. 20,000 1,882,500
Maderas y Sinteticos S.A., A.D.S. 50,000 1,400,000
Sociedad Quimica y Minera Chile S.A.,
A.D.S., Ser. B................. 48,000 1,626,000
------------
4,908,500
------------
FINLAND_0.7%....Repola 50,000 1,049,027
------------
FRANCE_2.6% Castorama Dubois Investissements S.A. 8,500 1,237,864
Eridania Beghin-Say S.A. ........ 5,000 676,699
Pechiney S.A 19,000 1,448,058
Peugeot S.A. (b) 5,000 748,544
------------
4,111,165
------------
GERMANY_4.0% Bayerische Motoren Werke, A.G. 3,500 1,803,524
Deutsche Babcock A.G. ......... (b) 6,600 979,468
Hoechst A.G. .................... 5,000 1,094,747
Mannesmann A.G. ................. 9,000 2,405,585
------------
6,283,324
------------
HONG KONG_2.4%....HSBC Holdings 90,400 1,070,425
Jardine Matheson Holdings........ 250,000 2,078,642
Television Broadcasts............ 120,000 554,391
------------
3,703,458
------------
JAPAN_17.8%....Aisin Seiki 90,000 1,365,325
Canon............................ 50,000 928,793
Futaba Industrial................ 50,000 1,078,431
Hitachi.......................... 100,000 1,042,312
Isetan........................... 75,000 1,393,189
Kyocera.......................... 10,000 761,610
Mitsubishi Heavy Industries...... 190,000 1,547,059
Nippon Telegraph & Telephone 300 2,801,857
Nippondenso...................... 90,000 1,922,601
Nisshin Spinning................. 138,000 1,609,287
Sankyo........................... 40,000 1,040,248
Sumitomo Electric Industries..... 110,000 1,646,027
Suzuki Motor..................... 120,000 1,523,220
TDK.............................. 25,000 1,228,070
Teijin........................... 283,000 1,676,388
1,676,388
PREMIER GLOBAL INVESTING
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
COMMON STOCKS (CONTINUED)
SHARES VALUE
----------- ------------
JAPAN (CONTINUED).....Toppan Printing 130,000 $ 1,918,473
Toshiba.......................... 100,000 788,442
Tosoh.......................... (b) 400,000 1,775,026
Toyota Motor..................... 25,000 552,116
Yodogawa Steel Works............. 135,000 1,156,346
------------
27,754,820
------------
MALAYSIA_1.9%....Genting Berhad 50,000 459,613
Leader Universal Holdings Berhad. 98,000 544,338
Malayan Banking Berhad........... 125,000 850,773
Resorts World Berhad............. 100,000 633,679
United Engineers................. 80,000 431,840
------------
2,920,243
------------
NETHERLANDS_1.1%....Schlumberger 30,000 1,762,500
------------
SINGAPORE_3.5%....DBS Land 275,000 964,748
Jurong Shipyard.................. 89,000 800,272
Overseas Union Bank.............. 324,000 1,853,951
Public Bank Berhad............... 300,000 674,387
Sembawang Shipyard............... 100,000 776,567
Van Der Horst.................. (b) 100,000 449,591
------------
5,519,516
------------
SWEDEN_4.0%....Astra AB, Ser. A 85,000 2,307,880
Ericsson (L.M.), Telephone, Cl. B, A.D.R 35,000 2,132,813
Svedala Industri................. 75,000 1,748,447
------------
6,189,140
------------
SWITZERLAND_1.5%....BBC Brown Boveri A.G., Ser. A 2,675 2,294,986
------------
UNITED KINGDOM_ 1.9% British Steel PLC 470,000 1,232,194
Kwik-Fit Holdings................ 250,000 650,310
Lucas Industries PLC............. 320,000 1,005,158
------------
2,887,662
------------
UNITED STATES_19.3%....Amerada Hess 10,000 497,500
Atlantic Richfield............... 5,000 541,875
Boeing........................... 45,000 1,974,375
Boise Cascade.................... 25,000 662,500
CBI Industries................... 45,000 1,040,625
Coastal Healthcare Group....... (b) 25,000 787,500
Community Psychiatric Centers.... 30,000 296,250
Consolidated Papers.............. 16,000 718,000
Deere & Co....................... 10,000 717,500
Dow Chemical..................... 20,000 1,470,000
Dual Drilling.................. (b) 78,000 1,033,500
Ecolab........................... 47,500 1,015,313
Exxon............................ 20,000 1,257,500
Grace (W.R.) & Co. .............. 18,800 744,950
PREMIER GLOBAL INVESTING
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
COMMON STOCKS (CONTINUED)
SHARES VALUE
----------- ------------
UNITED STATES (CONTINUED) Hibernia, Cl. A 40,000 $ 320,000
IntelCom Group................. (b) 52,500 800,625
Johnson & Johnson................ 10,000 546,250
Lilly (Eli) & Co. ............... 6,000 372,000
Lubrizol......................... 55,000 1,773,750
Lyondell Petrochemical........... 40,000 1,095,000
Marion Merrell Dow............... 25,000 637,500
Mattel........................... 70,000 2,047,500
Motorola......................... 20,000 1,177,500
National Health Laboratories Holdings 25,000 359,375
Norfolk Southern................. 10,000 630,000
OM Group......................... 110,000 2,200,000
Occidental Petroleum............. 45,000 984,375
Parker & Parsley Petroleum....... 20,000 500,000
TRINOVA.......................... 25,000 875,000
Talbots.......................... 24,600 854,850
Texas Instruments................ 10,000 748,750
Thermo Electron................ (b) 15,000 684,375
Upjohn........................... 20,000 660,000
------------
30,024,238
------------
TOTAL COMMON STOCKS
(cost $95,711,957)............. $104,126,320
============
PREFERRED STOCKS_ 1.6%
GERMANY; Jungheinrich A.G. (non-voting)
(cost $2,142,407).............. 10,282 $ 2,447,444
============
PUT OPTIONS_0.1%
CONTRACTS
SUBJECT TO
PUT
_______
GERMANY; Deutscher Aktienindex
December `94 @ $1406
(cost $189,186).............. (c) 30 $ 189,630
============
CONVERTIBLE BONDS_0.8%
PRINCIPAL
AMOUNT
_______
MEXICO_0.6% Cemex S.A., 4.25%, 11/1/97 (a) $ 1,000,000 $ 1,031,250
------------
TAIWAN_0.2% Nan Ya Plastics, 1.75%, 7/19/01 (a) 290,000 271,875
------------
TOTAL CONVERTIBLE BONDS
(cost $1,295,800).............. $ 1,303,125
============
PREMIER GLOBAL INVESTING
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
SHORT-TERM INVESTMENTS_32.5%
PRINCIPAL
AMOUNT VALUE
---------- ----------
U.S. TREASURY BILLS:... 4.42%, 11/10/94 $ 17,281,000 $ 17,261,905
4.61%, 11/17/94......... 4,278,000 4,269,244
4.55%, 12/01/94.................. 23,947,000 23,856,149
4.53%, 12/15/94.................. 602,000 598,667
4.72%, 12/22/94.................. 4,770,000 4,738,100
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $50,724,065)............. $ 50,724,065
============
TOTAL INVESTMENTS (cost $150,063,415)....................................... 101.8% $158,790,584
====== ============
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (1.8)% $ (2,876,188)
====== ============
NET ASSETS.................................................................. 100.0% $155,914,396
====== ============
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Security 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 October 31,
1994, these securities amounted to $2,114,507 or 1.4% of net assets.
(b) Non-income producing.
(c) Strike price converted to U.S. Dollars at the prevailing rate of
exchange.
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER GLOBAL INVESTING
STATEMENT OF SECURITIES SOLD SHORT OCTOBER 31, 1994
COMMON STOCKS SHARES VALUE
_________ ------- -----------
<S> <C> <C>
Calgene..................................................................... 75,000 $ 646,875
China Tire Holdings......................................................... 500 7,313
NYNEX....................................................................... 25,000 981,250
______
TOTAL SECURITIES SOLD SHORT
(proceeds $1,670,344)................................................... $1,635,438
==========
STATEMENT OF CALL OPTIONS WRITTEN OCTOBER 31, 1994
CONTRACTS
______
Deutscher Aktienindex, December `94 @ $1,406
(premiums received $186,249).............................................. 30 $120,906
=========
NOTE TO STATEMENT OF CALL OPTIONS WRITTEN; OCTOBER 31, 1994
Strike price converted to U.S. Dollars at the prevailing rate of
exchange.
STATEMENT OF FINANCIAL FUTURES OCTOBER 31, 1994
MARKET VALUE UNREALIZED
NUMBER OF COVERED (DEPRECIATION)
FINANCIAL FUTURES SOLD SHORT CONTRACTS BY CONTRACTS EXPIRATION AT 10/31/94
- ----------------------------- --------- -------------- ---------- --------------
Japanese Yen................................. 80 $(10,358,000) December `94 $(299,750)
Standard & Poor's 500........................ 45 $(10,630,125) December `94 (49,788)
----------
$(349,538) ============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER GLOBAL INVESTING
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $150,063,415)_see statement..................................... $158,790,584
Cash.................................................................... 253,884
Receivable for investment securities sold............................... 3,771,375
Receivable from broker for proceeds on securities sold short............ 1,670,344
Dividends and interest receivable....................................... 250,939
Receivable for subscriptions to Common Stock............................ 40,247
Receivable for futures variation margin_ Note 3(a)...................... 39,375
Prepaid expenses and other assets....................................... 57,292
-------------
164,874,040
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 98,218
Payable for investment securities purchased............................. 6,758,476
Securities sold short, at value
(proceeds $1,670,344)_see statement................................... 1,635,438
Outstanding call options written, at value
(premiums received $186,249)_see statement............................ 120,906
Payable for shares of Common Stock redeemed............................. 45,693
Accrued expenses and other liabilities.................................. 300,913 8,959,644
----------- -----------
NET ASSETS ................................................................ $155,914,396
============
REPRESENTED BY:
Paid-in capital......................................................... $144,281,610
Accumulated undistributed investment income_net......................... 737,941
Accumulated undistributed net realized gain on investments and foreign currency
transactions.......................................................... 2,411,795
Accumulated net unrealized appreciation on investments and foreign currency
transactions [including ($349,538) net unrealized (depreciation) on financial
futures].............................................................. 8,483,050
------------
NET ASSETS at value......................................................... $155,914,396
============
Shares of Common Stock outstanding:
Class A Shares
(300 million shares of $.001 par value authorized).................... 5,007,507
============
Class B Shares
(300 million shares of $.001 par value authorized).................... 4,932,827
============
NET ASSET VALUE per share:
Class A Shares ($79,017,293 / 5,007,507 shares)......................... $15.78
======
Class B Shares ($76,897,103 / 4,932,827 shares)......................... $15.59
======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER GLOBAL INVESTING
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1994
INVESTMENT INCOME:
INCOME:
<S> <C> <C>
Interest.............................................................. $ 1,703,810
Cash dividends (net of $162,030 foreign taxes withheld at source)..... 1,678,912
-----------
TOTAL INCOME...................................................... $3,382,722
EXPENSES:
Management fee_Note 2(a).............................................. 1,075,819
Shareholder servicing costs_Note 2(c)................................. 560,956
Distribution fees (Class B shares)_Note 2(b).......................... 490,080
Custodian fees........................................................ 144,220
Registration fees..................................................... 70,300
Prospectus and shareholders' reports.................................. 63,974
Professional fees..................................................... 42,915
Directors' fees and expenses_Note 2(d)................................ 16,516
Dividends on securities sold short.................................... 6,720
Miscellaneous......................................................... 19,163
-----------
TOTAL EXPENSES.................................................... 2,490,663
-----------
INVESTMENT INCOME_NET............................................ 892,059
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on investments:
Long transactions (including options and foreign currency transactions) $ 4,618,069
Short sale transactions............................................... (83,706)
Net realized (loss) on forward currency exchange contracts;
Short transactions.................................................... (18,467)
Net realized (loss) on financial futures_Note 3(a):
Long transactions..................................................... (121,280)
Short transactions.................................................... (1,500,438)
-----------
NET REALIZED GAIN..................................................... 2,894,178
Net unrealized appreciation on investments, securities
sold short and foreign currency transactions [including
($397,163) net unrealized (depreciation) on financial
futures and $65,343 net unrealized appreciation on options written]... 2,120,318
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 5,014,496
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $5,906,555
============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER GLOBAL INVESTING
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
________________
1993 1994
------------- -------------
<S> <C> <C>
OPERATIONS:
Investment income_net................................................... $ 494,711 $ 892,059
Net realized gain on investments........................................ 4,301,653 2,894,178
Net unrealized appreciation on investments for the year................. 6,349,196 2,120,318
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 11,145,560 5,906,555
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net:
Class A shares........................................................ (262,079) (360,444)
Class B shares........................................................ ___ (147,982)
Net realized gain on investments:
Class A shares........................................................ (349,439) (2,787,429)
Class B shares........................................................ ___ (1,716,592)
------------- -------------
TOTAL DIVIDENDS................................................... (611,518) (5,012,447)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 42,121,565 28,481,082
Class B shares........................................................ 38,860,345 38,967,304
Dividends reinvested:
Class A shares........................................................ 568,838 2,760,814
Class B shares........................................................ ___ 1,812,914
Cost of shares redeemed:
Class A shares........................................................ (11,183,307) (28,186,931)
Class B shares........................................................ (607,841) (4,777,156)
------------- -------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............ 69,759,600 39,058,027
------------- -------------
TOTAL INCREASE IN NET ASSETS.................................... 80,293,642 39,952,135
NET ASSETS:
Beginning of year....................................................... 35,668,619 115,962,261
------------- -------------
End of year (including undistributed investment income_net:
$354,308 in 1993 and $737,941 in 1994)................................ $115,962,261 $155,914,396
============= =============
SHARES
------------------------ --------------------------
CLASS A CLASS B
---------------------- ------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
---------------------- ------------------------
1993 1994 1993* 1994
---------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 2,945,764 1,803,615 2,681,279 2,481,600
Shares issued for dividends reinvested. 42,261 180,445 ------ 119,192
Shares redeemed........................ (777,789) (1,793,995) (41,297) (307,947)
---------- --------- --------- ---------
NET INCREASE IN SHARES OUTSTANDING... 2,210,236 190,065 2,639,982 2,292,845
========== ========= ========= =========
</TABLE>
* From January 15, 1993 (commencement of initial offering) to October 31,
1993.
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER GLOBAL INVESTING
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Fund's financial statements.
CLASS A SHARES CLASS B SHARES
------------------------- _____________________
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
___________________________ ________________________
PER SHARE DATA: 1992 (1)1993 1994 1993(2) 1994
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $12.50 $13.68 $15.58 $13.51 $15.49
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income (loss)_net................ .05 .10 .15 (.01) .06
Net realized and unrealized gain on investments and
foreign currency transactions............. 1.13 2.01 .71 1.99 .67
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.......... 1.18 2.11 .86 1.98 .73
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income_net........ -- (.09) (.08) -- (.05)
Dividends from net realized gain on investments -- (.12) (.58) -- (.58)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS....................... -- (.21) (.66) -- (.63)
------ ------ ------ ------ ------
Net asset value, end of year................ $13.68 $15.58 $15.78 $15.49 $15.59
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(3) 9.44%(4) 15.66% 5.62% 14.66%(4) 4.82%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 1.76%(4) 1.66% 1.38% 1.96%(4) 2.15%
Ratio of dividends on securities sold short to
average net assets........................ ._ .01% .01% .01%(4) --
Ratio of net investment income (loss) to average
net assets................................ .74%(4) .98% .95% (.18%)(4) .23%
Portfolio Turnover Rate..................... 208.70%(4) 179.28% 156.98% 179.28% 156.98%
Net Assets, end of year (000's Omitted)..... $35,669 $75,066 $79,017 $40,897 $76,897
</TABLE>
- -------------------------------
(1) From January 31, 1992 (commencement of operations) to October 31, 1992.
(2) From January 15, 1993 (commencement of initial offering) to October
31, 1993.
(3) Exclusive of sales load.
(4) Not annualized.
See notes to financial statements.
<TABLE>
<CAPTION>
PREMIER GLOBAL INVESTING
NOTES TO FINANCIAL STATEMENTS
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the distributor of the Fund's
shares. Dreyfus Service Corporation is a wholly-owned subsidiary of The
Dreyfus Corporation ("Manager"). Effective August 24, 1994, the Manager
became a direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administrative Services, Inc., a provider of
mutual fund administrative services, the parent company of which is Boston
Institutional Group, Inc.
The Fund is incorporated under the name Dreyfus Global Investing, Inc.
and began operating under the name Premier Global Investing on October 4,
1993.
The Fund offers both Class A and Class B shares. Class A shares are
subject to a sales charge imposed at the time of purchase and Class B shares
are subject to a contingent deferred sales charge imposed at the time of
redemption on redemptions made within six years of purchase. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
(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 Directors.
Short-term investments are carried at amortized cost, which approximates
value. Investments denominated in foreign currencies are translated to U.S.
dollars at the prevailing rates of exchange.
(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 market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales
and maturities of short-term securities, sales of foreign currencies,
currency gains or losses realized on securities transactions, the difference
between the amounts 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 at fiscal year end, resulting from changes in
exchange rate.
(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.
PREMIER GLOBAL INVESTING
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Fund not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2_MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .75 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
further provides for an expense reimbursement from the Manager should the
Fund's aggregate expenses, exclusive of taxes, brokerage, interest on
borrowings and extraordinary expenses, exceed the expense limitation of any
state having jurisdiction over the Fund, the Fund may deduct from the fee to
be paid to the Manager, or the Manager will bear, such excess expense to the
extent required by state law. The most stringent state expense limitation
applicable to the Fund presently requires reimbursement of expenses in any
full fiscal year that such expenses (exclusive of distribution expenses and
certain expenses as described above) exceed 2 1/2% of the first $30 million,
2% of the next $70 million and 1 1/2% of the excess over $100 million of the
average value of the Fund's net assets in accordance with California "blue
sky" regulations. There was no expense reimbursement for the year ended
October 31, 1994.
The Dreyfus Service Corporation retained $297,139 during the year ended
October 31, 1994 from commissions earned on sales of the Fund's Class A
shares.
Prior to August 24, 1994, The Dreyfus Service Corporation retained
$87,350 from contingent deferred sales charges imposed upon redemptions of
the Fund's Class B shares.
(B) On August 3, 1994, Fund shareholders approved a revised Distribution
Plan with respect to Class B shares only (the "Class B Distribution Plan")
pursuant to Rule 12b-1 under the Act. Pursuant to the Class B Distribution
Plan, effective August 24, 1994, the Fund pays the Distributor for
distributing the Fund's Class B shares at an annual rate of .75 of 1% of the
value of the average daily net assets of Class B shares.
Prior to August 24, 1994, the Distribution Plan ("prior Class B
Distribution Plan") provided that the Fund pay Dreyfus Service Corporation at
an annual rate of .75 of 1% of the value of the Fund's Class B shares average
daily net assets, for costs and expenses in connection with advertising,
marketing and distributing the Fund's Class B shares. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Fund's Class B shares owned by clients of the Service Agent.
During the year ended October 31, 1994, $107,317 was charged to the Fund
pursuant to the Class B Distribution Plan and $382,763 was charged to the
Fund pursuant to the prior Class B Distribution Plan.
(C) Under the Shareholder Services Plan, the Fund pays the Distributor,
at an annual rate of .25 of 1% of the value of the average daily net assets
of Class A and Class B shares for servicing shareholder
PREMIER GLOBAL INVESTING
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
accounts. 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 in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. From November 1, 1993 through August
23, 1994, $157,813 and $127,588 were charged to Class A and Class B shares,
respectively, by Dreyfus Service Corporation. From August 24, 1994 through
October 31, 1994, $37,433 and $35,772 were charged to Class A and Class B
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan.
(D) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $1,000 and an attendance fee of $250 per meeting.
NOTE 3_SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales
of investment securities and securities sold short, excluding short-term
securities, options transactions and forward currency transactions during the
year ended October 31, 1994:
PURCHASES SALES
----------------- -------------
<S> <C> <C>
Long transactions................................................ $190,298,917 $151,522,047
Short sale transactions.......................................... 10,670,211 10,208,099
_________________ --------------
TOTAL.......................................................... $200,969,128 $161,730,146
================ =============
The Fund is engaged in short-selling which obligates the Fund to replace the security borrowed by purchasing the security at
current market value. The Fund would incur a loss if the price of the
security increases between the date of the short sale and the date on which
the Fund replaces the borrowed security. The Fund would realize a gain if the
price of the security declines between those dates. Until the Fund replaces
the borrowed security, the Fund will maintain daily, a segregated account
with a broker and custodian, of cash and/or U.S. Government securities
sufficient to cover its short position. Securities sold short at October 31,
1994 and their related market values and proceeds are set forth in the
Statement of Securities Sold Short.
In addition, the following table summarizes the Fund's put/call options
written transactions for the year ended October 31, 1994:
OPTIONS TERMINATED
--------------------
NET
NUMBER OF PREMIUMS REALIZED
OPTIONS WRITTEN: CONTRACTS RECEIVED COST (LOSS)
----------- ---------- ------- ---------
Contracts outstanding October 31, 1993...... ----- $ -----
Contracts written........................... 1428 568,687
------------ ----------
1428 568,687
------------ ----------
Contracts Terminated;
Closed.................................... 1398 382,438 $468,690 ($86,252)
------------ ------- -------- ----------
Total contracts terminated............ 1398 382,438 $468,690 ($86,252)
------------- ------- ======== =========
Contracts outstanding October 31, 1994...... 30 $186,249
------------ ==========
PREMIER GLOBAL INVESTING
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As a writer of put options, the Fund receives a premium at the outset and
then bears the market risk of unfavorable changes in the price of the
financial instrument underlying the option. Generally, the Fund would incur a
gain, to the extent of the premiums, if the price of the underlying financial
instrument increases between the date the option is written and the date on
which the option is terminated. Generally, the Fund would realize a loss if
the price of the financial instrument declines between those dates.
As a writer of call options, the Fund receives a premium at the outset
and then bears the market risk of unfavorable changes in the price of the
financial instrument underlying the option. Generally, the Fund would incur a
gain, to the extent of the premiums, if the price of the underlying financial
instrument decreases between the date the option is written and the date on
which the option is terminated. Generally, the Fund would realize a loss if
the price of the financial instrument increases between those dates.
The Fund is engaged in trading restricted options, which are not exchange
traded. The Fund's exposure to credit risk associated with counter party
nonperformance on these investments is typically limited to the unrealized
gains inherent in such investments. At October 31, 1994 there were no
restricted options outstanding.
The Fund is engaged in trading financial futures contracts. The Fund is
exposed to market risk as a result of changes in the value of the underlying
financial instruments (see the Statement of Financial Futures). Investments
in financial futures require the Fund to "mark to market" on a daily basis,
which reflects the change in the market value of the contract at the close of
each day's trading. Generally, variation margin payments are made or received
to reflect daily unrealized gains or losses. When the contracts are closed,
the Fund recognizes a realized gain or loss. These investments require
initial margin deposits with a custodian, which consist of cash or cash
equivalents, up to approximately 10% of the contract amount. The amount of
these deposits is determined by the exchange or Board of Trade on which the
contract is traded and is subject to change. Contracts open at October 31,
1994 are set forth in the Statement of Financial Futures.
(B) At October 31, 1994, accumulated net unrealized appreciation on
investments was $8,477,880, consisting of $10,094,066 gross unrealized
appreciation and $1,616,186 gross unrealized depreciation.
At October 31, 1994, 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).
</TABLE>
PREMIER GLOBAL INVESTING
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
PREMIER GLOBAL INVESTING
We have audited the accompanying statement of assets and liabilities of
Premier Global Investing, including the statements of investments, put
options written, financial futures and securities sold short, as of October
31, 1994, 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 generally accepted auditing
standards. 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. Our procedures included confirmation of
securities owned as of October 31, 1994 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 Premier Global Investing at October 31, 1994, 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 generally accepted accounting
principles.
(Ernst & Young LLP Signature Logo)
New York, New York
December 6, 1994
Annual Report
PREMIER GLOBAL
INVESTING
October 31, 1994
(Dreyfus Lion Logo)
PREMIER GLOBAL INVESTING
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
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
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 092/633AR9410
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
PREMIER GLOBAL INVESTING CLASS A SHARES AND THE MORGAN
STANLEY CAPITAL INTERNATIONAL WORLD INDEX
EXHIBIT A:
_________________________________________________
| | | MORGAN STANLEY |
| | PREMIER | CAPITAL |
| PERIOD |GLOBAL INVESTING,| INTERNATIONAL |
| | CLASS A | WORLD INDEX* |
|-----------|-----------------|------------------|
| 1/31/92 | 9,549 | 10,000 |
| 10/31/92 | 10,451 | 9,419 |
| 10/31/93 | 12,088 | 11,963 |
| 10/31/94 | 12,767 | 12,878 |
|------------------------------------------------|
* Source: Lipper Analytical Services, Inc.
Premier Global Investing October 31, 1994
Asset Allocation
| ----------------------------------------------------|
| Common Stocks 66.8 % |
| Convertible Bonds 0.8 % |
| Preferred Stocks 1.6 % |
| Put Options 0.1 % |
| Cash Equivalents 30.7 % |
| ----------------------------------------------------|
Premier Global Investing October 31, 1994
Diversification of Foreign Investments
| ----------------------------------------------------|
| Japan 17.8 % |
| Germany 5.7 % |
| Sweden 4.0 % |
| Singapore 3.5 % |
| Chile 3.1 % |
| France 2.6 % |
| Hong Kong 2.4 % |
| Malaysia 1.9 % |
| United Kingdom 1.9 % |
| Switzerland 1.5 % |
| Argentina 1.3 % |
| Netherlands 1.1 % |
| Austria 0.9 % |
| Canada 0.8 % |
| Finland 0.7 % |
| Mexico 0.6 % |
| Taiwan 0.2 % |
| ----------------------------------------------------|
(Foreign Securities equal 50.0% of Total Net Assets)
