PREMIER GLOBAL INVESTING, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
Your Fund achieved a total return of 10.21% for Class A shares, 9.36% for
Class B shares, 9.36% for Class C shares and 10.45% for Class R shares for
the twelve-month period ended October 31, 1996.* This compares to a total
return of 16.30% for the Morgan Stanley Capital International World Index
over the same period.**
Premier Global Investing, Inc. outperformed the World Index during the
first half of the fiscal year ending October 31, 1996 but fell short of the
Index during the second half and, as a result, the full year as well. The
Fund lagged the World Index principally due to the inclusion of too many
investments in Japan and too few in the U.S. As the U.S. performed much
better than Japan over the period, and these two markets are by far the
largest in the world, this dual investment decision is responsible for your
Fund's underperformance versus the World Index. Premier Global Investing's
European investments were near an "index weight" for most of the year, and
the European portion of the portfolio was well diversified among six to
twelve different markets. These included principally the U.K., Germany,
France, the Netherlands, and Switzerland. Positions in Italy, Sweden,
Finland, Norway, Portugal, Ireland and Spain were also held at various times
during the year. European investments contributed positively to performance
for the year. Particularly notable contributions were made by positions in
Sweden. The Fund's emerging market investments contributed positively to
performance both in nominal terms and compared to the World Index for the
year. Hong Kong was the standout.
INVESTMENT APPROACH
Since assuming management of Premier Global Investing early this year, I
have employed the investment style developed over my twelve years of
experience in international investment management. My consistent approach to
managing your Fund is explained below. The latter portion of this letter
details my current strategy for Premier Global Investing.
My investment process is designed to deliver to investors a portfolio
that includes a wide variety of holdings in fifteen to twenty-five markets
around the world, exposure to rapidly growing emerging markets when they are
attractive for investment, and active currency management. The crucial
challenge for a global investor is how to judge the relative attractiveness
of various markets when there are scores to choose from. I address this
challenge by evaluating information on growth, security prices, interest
rates, liquidity, technical factors and currency in each of the world's major
markets. My work in these areas is driven by PC-based tools that I have
developed over time. Markets and industry sectors will be overweighted,
underweighted or market weighted relative to those of the Morgan Stanley
Capital International World Index. Presently our strategy is to overweight or
underweight markets and industry sectors by no more than 70% with two
exceptions. First, the two largest markets in the world, the U.S. and Japan,
have a 50%-150% weighting band. The second exception is the asset class of
emerging markets. While these markets comprise only 4% of the World Index,
Premier Global Investing currently intends to invest up to 20% of its assets
in this area when, in our opinion, significant opportunities present
themselves. The reasons for this approach are twofold. First, emerging
markets have the highest secular GDP and EPS growth rates in the world and a
global portfolio should offer shareholders substantial exposure to this
long-term opportunity. Second, emerging markets often reach valuation
extremes seldom seen in more developed equity markets.
In the investment process I have developed, stocks are managed in a
disciplined way. I search for stocks expected to have higher earnings growth
rates than the market in which they trade. Attractive companies often have
made a corporate change in management, strategy or business structure that
will positively alter their future growth rate. Stocks
purchased also need to have attractive valuations relative to both their own
history and that of the local market. Companies are sold when growth is
forecast to fall below my own or consensus estimates, the valuation target is
reached, or the weighting in that market is reduced as a result of an asset
allocation decision.
Generally, foreign currencies are at least partially hedged, where
practicable, when I believe that a given currency has 10% or more downside
against the U.S. dollar over the next twelve to eighteen months.
MARKET OVERVIEW AND CURRENT OUTLOOK
U.S.A.
Over the last six years the U.S. has retaken the title of "world's
largest stock market" from Japan by combining a generally declining interest
rate environment with dramatic growth in corporate earnings. This is a potent
cocktail for stocks because falling interest rates generally cause stocks to
rise and rapid earnings growth only adds fuel to the fire of the bull market.
The earnings of companies listed in the S&P 500 Index have grown at a 21%
annual rate since the recession year of 1991. This stunning performance is
far above the forty-year average earnings growth rate of 6%. Profit margins
for S&P 500 companies have risen dramatically due to the sharp focus of
American managements on return on investment. American corporations have
raised the financial return requirements for their various businesses and
sold or restructured those that did not meet the new requirements. Personnel
costs have been pared. Production of products in lower value-added areas has
been shifted to lower-cost production areas around the world. U.S. earnings
growth over the 1991-1996 period has been largely one of improved
profitability rather than revenue growth.
During the fiscal year, your Fund maintained approximately 22%-25% of its
assets in U.S. stocks, compared to 40% for the World Index. With our outlook
for inflation, interest rates, economic growth, mutual fund industry growth,
and other key variables appearing fairly positive, shareholders may ask why
Premier Global Investing did not have a higher proportion of its total assets
in the U.S. market. I offer three reasons. First, U.S. corporate earnings
appear to be trending back toward their long-term average. This slowdown may
reduce investors' enthusiasm in the short term. Second, while I believe the
market is not egregiously overvalued, a number of traditional valuation
measures appear stretched. These include the market's relationship to
prevailing interest rates and the market's overall yield. Prior to 1995 the
dividend yield of the S&P has never fallen below 2.8% for an extended period
of time. It is currently well below that level. Historically the current low
dividend yield has signaled a market correction ahead. Lastly, the U.S.
market has not experienced a "normal and healthy" correction of 10% since
1991. It is very, very rare historically, that the U.S. market moves upward
for so long with no correction. Nonetheless, I remain constructive with
respect to long-term prospects for the U.S. stock market and expect to
increase U.S. exposure in your Fund if the right opportunities present
themselves.
JAPAN
The good news for investors is that the Japanese Nikkei Index appears to
be in the process of beginning a new bull market. I believe that this is also
the bad news, because the process is proving more lengthy and difficult than
I expected earlier in the year. As a result, the Fund's large position in
Japan was a major contributor to the Fund's underperformance relative to the
World Index. The Fund's overweighting in Japan was based on the following
factors:
1. Corporate Japan has reported some of the strongest earnings of any
major market in the world.
2. Interest rates have been and may remain extremely low.
3. The market has remained attractively priced when compared to its own
valuation history.
4. Local Japanese investors have cash that might find its way into the
stock market.
5. The recent weakening of the Yen is positive for Japanese
export-oriented companies.
The list above encompasses many of the ingredients I have found in other
bull markets over the years. What's been missing? In a word, confidence.
Japanese investors have suffered through a long bear market since the Nikkei
Index peaked at nearly 40,000 in late 1989. At its peak, the Japanese market
was about twice as high as it now stands. Following a banking crisis, a
period of falling consumer prices, two false starts toward economic recovery,
and a good deal of political turmoil, Japanese investors are having a
difficult time focusing on the positive future rather than the recent,
unpleasant past. Nevertheless, my team and I have seen a good deal of growth
in Japanese companies, growth that is available at stock prices that we
believe are very reasonable in the context of the Japanese market.
EUROPE
Premier Global Investing is a growth-oriented fund. In Europe, my staff
and I find that many of the growth stocks currently fall into three
categories.
One area is the new growth company. Europe is spawning a large number of
new midsized growth companies that are either being spun out of larger
companies or made available to investors for the first time through initial
public stock offerings. Just in the last month my team has considered
companies in the computer software, temporary employment, consumer branded,
cellular telephone, leisure, and electronics businesses for inclusion in your
Fund.
Another area of continuing interest is the restructuring of more mature
companies. Earlier in this letter the extraordinary efforts of many American
company managements to improve the financial performance of their companies
was noted. Today a growing number of European companies are moving in this
direction. Europe will not become like the U.S. nor America like Europe. But
some European companies are taking cues from the U.S. counterparts that may
lead to enhanced stock performance over the next few years.
Last, I want you to know that I have positioned your Fund in a way that
is intended to benefit from major structural changes occurring in Europe's
economy. Telecommunications is being deregulated. Important changes are
taking place in all aspects of the media-television, cable television,
newspapers, movie distribution, and the Internet. Additionally, the money
management industry is moving into a stage of rapid development as
individuals, rather than the local government, become responsible for their ow
n retirement plans. These are but three examples. Your Fund looks for
investments in growing companies driving the change in each of these areas
rather than defending themselves against it.
EMERGING MARKETS
In my view, no global growth-oriented fund such as Premier Global
Investing can serve shareholders without an important commitment to emerging
markets when they are attractively valued. The history of this period will
record that at least 500 million (and perhaps as many as 2 billion) people on
our planet climbed from relative poverty to comparative affluence over the
latter part of the current century and the early part of the next.
In my view, emerging markets are valued attractively today. Economies
have been growing at two to five times the rate one can expect in the
developed countries in Europe, North America and Japan. Yet the valuations of
many of these markets are far below those seen during periods when emerging
markets were perceived as "hot" by most investors.
Your Fund's basic discipline that seeks growth at a reasonable price has led
us to selected emerging markets such as Hong Kong (including Chinese "Red
Chips" traded in that market), Malaysia and Brazil. Although these markets
have performed well this year, we can expect that they will become overvalued
at some point as investors become overly enamored of them. This will be a
signal for your Fund to reduce exposure to the emerging world for some period
of time while these markets cool down. While these markets grow much more
rapidly than the developed countries in Europe, North America and Japan, they
are riskier and more volatile than stocks in developing countries. For this
reason, valuation levels need to be watched even more closely than in other
areas of the world.
This is my first annual letter to shareholders of Premier Global
Investing. I greatly appreciate your investment in the Fund and will continue
to manage the Fund toward its goal of long-term capital growth.
Sincerely,
[Ron Chapman signature logo]
Ron Chapman
Portfolio Manager
November 22, 1996
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains
paid, 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 and Class C shares.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC.-Unlike the Fund which may invest
in various types of securities and engage in different investment techniques,
the Morgan Stanley Capital International World Index is an unmanaged index of
global stock market performance, consisting of equity securities.
PREMIER GLOBAL INVESTING, INC. OCTOBER 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER GLOBAL
INVESTING, INC. CLASS A SHARES AND THE MORGAN STANLEY CAPITAL INTERNATIONAL
WORLD INDEX
[Exhibit A:
Dollars
$16,397
Morgan Stanley Capital International World Index*
$14,734
Premier Global Investing
(Class A Shares)
*Source: Lipper Analytical Services, Inc.]
<TABLE>
<CAPTION>
Average Annual Total Returns
Class A Shares Class B Shares
- ------------------------------- -----------------------------
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 10/31/96 Sales Charge Sales Charge (4.5%) Period Ended 10/31/96 Redemption Redemption*
_________ ______ _______ _________ _____ ________
<S> <C> <C> <C> <C> <C>
1 Year 10.21% 5.24% 1 Year 9.36% 5.36%
From Inception (1/31/92) 9.57 8.51 From Inception (1/15/93) 8.57 7.94
Class C Shares Class R Shares
_____________________________ _____________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 10/31/96 No Redemption Redemption** Period Ended 10/31/96
_________ ______ ________ _________
1 Year 9.36% 8.36% 1 Year 10.45%
From Inception (9/5/95) 8.34 8.34 From Inception (9/5/95) 9.39
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Premier Global Investing, Inc. 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, Class C and Class R shares will vary from the
performance of Class A shares shown above due to differences in charges and
expenses.
The Fund's performance shown in the line 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, 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.
* The maximum contingent deferred sales charge for Class B shares is 4% and
is reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
PREMIER GLOBAL INVESTING, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1996
Common Stocks-95.6% Shares Value
______________________________ ____ _____
<S> <C> <C> <C> <C>
Brazil-.5% Centrais Electricas Sta Catari........ (a) 8,000 $ 667,000
_____________
Canada-1.6% Ranger Oil........................... 300,000 2,250,000
_____________
China-1.9% China Overseas Land & Investment..... 1,500,000 557,761
China Resources Enterprises.......... 500,000 562,611
New World Infrastructure............. (b) 300,000 746,915
Shanghai Industrial Holdings......... 350,000 794,446
_____________
2,661,733
_____________
France-4.3% Elf Aquitaine......................... 10,000 797,767
Generale Des Eaux..................... 14,000 1,669,301
Lafarge SA............................ 16,000 957,945
Michelin, Cl. B....................... 29,500 1,419,071
Thomson............................... 35,000 1,089,417
_____________
5,933,501
_____________
Germany-1.9% Continental AG........................ 60,000 1,047,430
Deutsche Bank AG...................... 30,000 1,386,166
Henkel KGaA........................... 4,000 177,338
_____________
2,610,934
_____________
Hong Kong-7.5% Bank of East Asia..................... 190,000 742,129
Cheung Kong Holdings.................. 210,000 1,683,954
Guangnan Holdings..................... 374,000 253,951
HKR International..................... 625,000 792,182
HSBC Holdings......................... 75,000 1,527,781
Henderson Land Development............ 100,000 889,184
Hong Kong China & Gas................. 450,000 791,536
Hutchison Whampoa..................... 95,000 663,493
Hysan Development..................... 320,000 1,026,410
Hysan Development (warrants).......... 16,000 7,708
Sun Hung Kai Properties............... 65,000 739,801
Swire Pacific, Cl. A.................. 90,000 794,446
Wing Hang Bank........................ 115,000 462,570
_____________
10,375,145
_____________
Italy-3.0% Fiat SPA............................ 450,000 1,194,113
Istituto Nazionale delle Assicurazioni 600,000 830,052
Parmalat Finanziaria SPA.............. 1,470,000 2,099,446
_____________
4,123,611
_____________
Japan-30.5% Bank of Tokyo-Mitsubishi.............. 45,000 915,950
DDI................................... 195 1,462,756
Daikin Industries..................... 176,000 1,667,660
Daiwa Securities...................... 73,000 787,769
Fuji Bank............................. 35,000 629,496
PREMIER GLOBAL INVESTING, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996
Common Stocks (continued) Shares Value
___________________________ ____ _____
Japan (continued) Fuji Photo Film....................... 51,000 $ 1,463,151
Hitachi Zosen......................... 198,000 965,853
Industrial Bank of Japan.............. 53,000 1,055,536
Ishikawajima-Harima Heavy Industries.. 340,000 1,566,064
Kato Denki............................ 31,500 453,237
Laox.................................. 104,500 1,751,140
Maruzen............................... 9,000 110,940
Matsushita Communications Industrial.. 70,000 1,848,569
Matsushita Kotobuki Electric Industrial 35,000 807,597
Matsushita Electric Industrial........ 100,000 1,596,771
Minebea............................... 180,000 1,514,476
Mitsubishi Heavy Industries........... 95,000 729,294
Mitusi & Co........................... 126,000 1,017,020
NKK.................................. (b) 240,000 602,210
Namco................................. 30,000 897,525
Nichiei............................... 22,000 1,463,063
Nippon Express........................ 175,000 1,420,205
Nitto Electric Works.................. 110,000 1,901,210
Rohm.................................. 36,000 2,131,952
Sankyo Company........................ 45,000 1,113,353
Sekisui House......................... 100,000 1,052,816
Shisheido............................. 110,000 1,283,558
Sony.................................. 35,000 2,097,297
Sumitomo Bank......................... 38,000 666,783
TDK................................... 31,000 1,816,809
Takashimaya........................... 120,000 1,716,090
Tokyo Style........................... 83,000 1,259,782
Toyota Motor.......................... 113,000 2,666,920
_____________
42,432,852
_____________
Malaysia-3.9% Commerce Asset Holding Berhad......... 60,000 391,846
DCB Holdings Berhad................... 110,000 376,607
Edaran Otomobil Nasional Berhad....... 110,000 1,027,508
KFC Holdings Berhad................... 183,333 725,640
R.J. Reynolds Berhad.................. 150,000 436,374
Tenaga Nasional Berhad................ 620,000 2,478,527
_____________
5,436,502
_____________
Mexico-1.0% Empresas ICA Sociedad, A.D.S.......... 45,000 585,000
Fomento Economico Mexicano............ 250,000 766,331
Grupo Financiero, Cl. B............... 3,315 10,827
_____________
1,362,158
_____________
Netherlands-4.0% Philips Electronics................... 66,000 2,320,145
Stork NV.............................. 50,000 1,560,754
Vnu-Vernigde Nederlandse Uitgeversbedrijven
Verenigd Bezit...................... 90,000 1,629,533
_____________
5,510,432
_____________
PREMIER GLOBAL INVESTING, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996
Common Stocks (continued) Shares Value
______________________________ ____ _____
Philippines-1.0% Ayala Land........................... 390,000 $ 416,158
Filinvest Land....................... (b) 750,000 254,382
Manila Electric, Cl. B............... 65,000 478,086
Philipino Telephone.................. (b) 300,000 265,815
_____________
1,414,441
_____________
Portugal-.9 Cimpor Cimentos de Portugal........... 60,000 1,257,869
_____________
Sweden-1.5% Skandia Group Forsakrings AB.......... 48,000 1,346,101
Svenskt Stal AB, Ser. B............... 55,000 798,373
_____________
2,144,474
_____________
Switzerland-1.4% Elektrowatt AG, Cl. B...................... 2,000 756,799
Sandoz AG............................. 1,000 1,151,754
_____________
1,908,553
_____________
Thailand-1.3% Finance One Public Company Ltd........ 104,000 293,531
Industrial Finance Corporation
of Thailand (foreign)............. 108,000 317,522
Industrial Finance Corporation
of Thailand (local)............... 69,000 198,804
Krung Thai Bank Public Company........ 212,000 573,422
Siam Commercial Bank.................. 48,000 436,534
_____________
1,819,813
_____________
United Kingdom-8.7% British Sky Broadcasting Group........ 85,000 800,233
Great Universal Stores................ 150,000 1,481,747
Lucas Varity PLC...................... 37,440 1,506,960
Telewest PLC......................... (b) 575,000 1,310,057
Thistle Hotels........................ 872,000 2,369,884
Vodafone Group PLC.................... 840,000 3,246,663
Williams Holdings..................... 225,000 1,329,178
_____________
12,044,722
_____________
United States-20.7% AlliedSignal................... 25,700 1,683,350
American Home Products................ 20,000 1,225,000
America Online....................... (b) 30,000 813,750
Culligan Water Technologies.......... (b) 32,500 1,218,750
Digital Equipment.................... (b) 27,000 796,500
Disney (Walt)......................... 30,000 1,976,250
Ford Motor............................ 70,000 2,187,500
Host Marriott........................ (b) 75,000 1,153,125
Landstar Systems..................... (b) 60,000 1,417,500
Lyondell Petrochemical................ 75,000 1,593,750
McDonald's............................ 30,000 1,331,250
Metromedia International Group....... (b) 110,000 1,086,250
PREMIER GLOBAL INVESTING, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996
Common Stocks (continued) Shares Value
______________________________ ____ _____
United States (continued) Parker-Hannifin....................... 25,000 $ 946,875
Seagate Technology.................... (b) 28,000 1,869,000
Sears, Roebuck & Co................... 40,000 1,935,000
Southwest Airlines.................... 65,000 1,462,500
Talbots............................... 65,000 1,852,500
Warner-Lambert........................ 26,000 1,654,250
Westinghouse Electric................. 90,000 1,541,250
Witco................................. 35,000 1,085,000
_____________
28,829,350
_____________
TOTAL COMMON STOCKS
(cost $132,869,759)................. $132,783,090
=============
Preferred Stocks-0.8%
__________________________-
Germany; Henkel KGaA
(cost $875,238)..................... 24,000 $ 1,074,308
=============
Principal
Short-Term Investments-2.0% Amount
______________________________ ____
U.S. Treasury Bills: 5.19%, 12/5/1996.................. 37,000 $ 36,825
5.06%, 12/12/1996..................... 185,000 183,945
5.22%, 1/2/1997....................... 55,000 54,532
5.36%, 1/16/1997...................... 973,000 962,725
5.3%, 1/23/1997....................... 563,000 556,509
5.34%, 1/30/1997...................... 1,012,000 999,310
_____________
TOTAL SHORT-TERM INVESTMENTS
(cost $2,793,982)................... $ 2,793,846
=============
TOTAL INVESTMENTS (cost $136,538,979)....................................... 98.4% $136,651,244
======= =============
CASH AND RECEIVABLES (NET).................................................. 1.6% $ 2,295,326
======= =============
NET ASSETS.................................................................. 100.0% $138,946,570
======= =============
Notes to Statement of Investments:
(a) Security exempt from registration under Rule 144A of the Securities Act
of 1933. This securitiy may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
1996, this security amounted to $667,000 or approximately .48% of net assets.
(b) Non-income producing.
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER GLOBAL INVESTING, INC.
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996
Cost Value
_______ _______
ASSETS: Investments in securities-See Statement of Investments $136,538,979 $136,651,244
Cash....................................... 209,732
Receivable for investment securities sold.. 2,123,973
Dividends receivable....................... 329,381
Prepaid expenses........................... 34,746
_______
139,349,076
_______
LIABILITIES: Due to The Dreyfus Corporation and affiliates 122,508
Due to Distributor......................... 47,124
Payable for investment securities purchased 41,591
Payable for shares of Common Stock redeemed 2,511
Accrued expenses........................... 188,772
_______
402,506
_______
NET ASSETS.................................................................. $138,946,570
=======
REPRESENTED BY: Paid-in capital............................ $120,050,949
Accumulated undistributed investment income-net 231,395
Accumulated net realized gain (loss) on investments
and foreign exchange transactions 18,555,165
Accumulated net unrealized appreciation (depreciation)
on investments and foreign exchange transactions 109,061
_______
NET ASSETS.................................................................. $138,946,570
=======
NET ASSET VALUE PER SHARE
------------------
Class A Class B Class C Class R
____________ ____________ ________ _______
Net Assets....................................... $66,906,797 $71,982,612 $53,263 $3,898
Shares Outstanding............................... 4,032,823 4,397,813 3,288.804 235
NET ASSET VALUE PER SHARE........................ $16.59 $16.37 $16.20 $16.59
====== ======= ======= ======
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER GLOBAL INVESTING, INC.
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1996
INVESTMENT INCOME
INCOME: Cash dividends (net of $209,181 foreign taxes withheld
at source)............................. $ 2,427,409
Interest................................... 601,457
___________
Total Income......................... $ 3,028,866
EXPENSES: Management fee-Note 3(a)................... 1,093,156
Distribution fees-Note 3(b)................ 565,889
Shareholder servicing costs-Note 3(c)...... 524,910
Custodian fees............................. 130,668
Professional fees.......................... 55,758
Registration fees.......................... 42,314
Prospectus and shareholders' reports....... 26,131
Directors' fees and expenses-Note 3(d)..... 22,556
Interest-Note 2............................ 87
Miscellaneous.............................. 19,100
___________
Total Expenses....................... 2,480,569
____________
INVESTMENT INCOME-NET....................................................... 548,297
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments and foreign
currency transactions.................. $16,747,266
Net realized gain (loss) on forward currency
exchange contracts..................... 930,070
Net realized gain (loss) on financial futures 865,064
___________
Net Realized Gain (Loss)............. 18,542,400
Net unrealized appreciation (depreciation) on investments (5,532,025)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 13,010,375
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $13,558,672
============
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER GLOBAL INVESTING, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
October 31, 1996 October 31, 1995
________________ _______________
OPERATIONS:
Investment income-net.................................................... $ 548,297 $ 1,451,703
Net realized gain (loss) on investments.................................. 18,542,400 7,232,789
Net unrealized appreciation (depreciation) on investments................ (5,532,025) (2,841,964)
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations...... 13,558,672 5,842,528
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares......................................................... (1,028,808) (718,624)
Class B shares......................................................... (560,967) (198,110)
Class C shares......................................................... (18) -
Class R shares......................................................... (19) -
Net realized gain on investments:
Class A shares......................................................... (3,506,346) (1,189,446)
Class B shares......................................................... (3,747,259) (1,188,660)
Class C shares......................................................... (53) -
Class R shares......................................................... (55) -
_____________ _____________
Total Dividends...................................................... (8,843,525) (3,294,840)
_____________ _____________
CAPITALSTOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares......................................................... 14,951,284 10,636,355
Class B shares......................................................... 3,076,414 6,041,105
Class C shares......................................................... 53,626 1,000
Class R shares......................................................... 2,929 1,067
Dividends reinvested:
Class A shares......................................................... 4,352,170 1,803,995
Class B shares......................................................... 4,154,672 1,335,890
Class C shares......................................................... 71 -
Class R shares......................................................... 75 -
Cost of shares redeemed:
Class A shares......................................................... (23,319,202) (24,001,138)
Class B shares......................................................... (9,842,130) (13,478,681)
Class C shares......................................................... - -
Class R shares......................................................... (163) -
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions.... (6,570,254) (17,660,407)
_____________ _____________
Total Increase (Decrease) in Net Assets............................ (1,855,107) (15,112,719)
NET ASSETS:
Beginning of Period...................................................... 140,801,677 155,914,396
_____________ _____________
End of Period............................................................ $138,946,570 $140,801,677
============= =============
UNDISTRIBUTED INVESTMENT INCOME-NET........................................ $ 231,395 $ 1,272,910
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER GLOBAL INVESTING, INC.
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
__________________________________
Year Ended Year Ended
October 31, 1996 October 31, 1995
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Class A
_______
Shares sold.............................................................. 915,349 688,193
Shares issued for dividends reinvested................................... 280,062 123,731
Shares redeemed.......................................................... (1,421,401) (1,560,618)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding (225,990) (748,694)
============= =============
Class B
_______
Shares sold.............................................................. 187,874 396,520
Shares issued for dividends reinvested................................... 269,259 92,194
Shares redeemed.......................................................... (601,474) (879,387)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding (144,341) (390,673)
============= =============
Class C*
_______
Shares sold.............................................................. 3,221 63
Shares issued for dividends reinvested................................... 5 -
_____________ _____________
Net Increase (Decrease) in Shares Outstanding 3,226 63
============= =============
Class R*
_______
Shares sold.............................................................. 174 66
Shares issued for dividends reinvested................................... 5 -
Shares redeemed.......................................................... (10) -
_____________ _____________
Net Increase (Decrease) in Shares Outstanding 169 66
============= =============
*From September 5, 1995 (commencement of initial offering) to October 31,
1995.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER GLOBAL INVESTING, INC.
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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class A Shares
-------------------------------------------------------
Year Ended October 31,
-------------------------------------------------------
PER SHARE DATA: 1996 1995 1994 1993 1992(1)
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $16.10 $15.78 $15.58 $13.68 $12.50
______ ______ ______ ______ ______
Investment Operations:
Investment income-net......................... .14 .24 .15 .10 .05
Net realized and unrealized gain (loss)
on investments.............................. 1.44 .47 .71 2.01 1.13
______ ______ ______ ______ ______
Total from Investment Operations........ 1.58 .71 .86 2.11 1.18
______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net.......... (.25) (.15) (.08) (.09) -
Dividends from net realized gain on investments (.84) (.24) (.58) (.12) -
______ ______ ______ ______ ______
Total Distributions..................... (1.09) (.39) (.66) (.21) -
______ ______ ______ ______ ______
Net asset value, end of period................ $16.59 $16.10 $15.78 $15.58 $13.68
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(2)........................ 10.21% 4.72% 5.62% 15.66% 9.44%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 1.31% 1.31% 1.38% 1.66% 1.76%(3)
Ratio of dividends on securities sold short
to average net assets....................... - .01% .01% .01% -
Ratio of net investment income to average net assets .76% 1.38% .95% .98% .74%(3)
Portfolio Turnover Rate....................... 176.17% 229.90% 156.98% 179.28% 208.70%(3)
Average commission rate paid(4)............... $.0269 - - - -
Net Assets, end of period (000's Omitted)..... $66,907 $68,584 $79,017 $75,066 $35,669
(1) From January 31, 1992 (commencement of operations) to October 31, 1992.
(2) Exclusive of sales load.
(3) Not annualized.
(4) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and sales
of investment securities.
See notes to financial statments.
PREMIER GLOBAL INVESTING, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
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 period indicated. This
information has been derived from the Fund's financial statements.
Class B Shares
_________________________________________________________
Year Ended October 31,
_________________________________________________________
PERSHAREDATA: 1996 1995 1994 1993(1)
______ ______ ______ ______
Net asset value, beginning of period...... $15.90 $15.59 $15.49 $13.51
______ ______ ______ ______
Investment Operations:
Investment income (loss)-net.............. - .10 .06 (.01)
Net realized and unrealized gain (loss)
on investments.......................... 1.44 .49 .67 1.99
______ ______ ______ ______
Total from Investment Operations.... 1.44 .59 .73 1.98
______ ______ ______ ______
Distributions:
Dividends from investment income-net...... (.13) (.04) (.05) -
Dividends from net realized gain on investments (.84) (.24) (.58) -
______ ______ ______ ______
Total Distributions................. (.97) (.28) (.63) -
______ ______ ______ ______
Net asset value, end of period............ $16.37 $15.90 $15.59 $15.49
====== ====== ====== ======
TOTAL INVESTMENT RETURN(2).................... 9.36% 3.96% 4.82% 14.66%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 2.06% 2.06% 2.15% 1.96%(3)
Ratio of dividends on securities sold short to
average net assets...................... - .01% - .01%(3)
Ratio of net investment income (loss) to average
net assets.............................. .01% .62% .23% (.18)%(3)
Portfolio Turnover Rate................... 176.17% 229.90% 156.98% 179.28%
Average commission rate paid(4)........... $.0269 - - -
Net Assets, end of period (000's Omitted). $71,983 $72,215 $76,897 $40,897
_________________
(1) From January 15, 1993 (commencement of initial offering) to October 31,
1993.
(2) Exlusive of sales load.
(3) Not annualized.
(4) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and sales
of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER GLOBAL INVESTING, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
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 period indicated. This
information has been derived from the Fund's financial statements.
Class C Shares Class R Shares
______________________ ______________________
Year Ended October 31, Year Ended October 31,
______________________ ______________________
PERSHAREDATA: 1996 1995(1) 1996 1995(1)
______ ______ ______ ______
Net asset value, beginning of period...... $15.90 $15.85 $16.11 $16.04
______ ______ ______ ______
Investment Operations:
Investment income (loss)-net.............. .28 (.01) .26 .01
Net realized and unrealized gain (loss)
on investments.......................... 1.14 .06 1.35 .06
______ ______ ______ ______
Total from Investment Operations.... 1.42 .05 1.61 .07
______ ______ ______ ______
Distributions:
Dividends from investment income-net...... (.28) - (.29) -
Dividends from net realized gain on investments (.84) - (.84) -
______ ______ ______ ______
Total Distributions................. (1.12) - (1.13) -
______ ______ ______ ______
Net asset value, end of period............ $16.20 $15.90 $16.59 $16.11
______ ______ ______ ______
______ ______ ______ ______
TOTAL INVESTMENT RETURN(2).................... 9.36% .32%(3) 10.45% .44%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets... 1.90% .35%(3) .87% .18%(3)
Ratio of net investment income (loss) to average
net assets.............................. (.19%) (.09%)(3) .94% .08%(3)
Portfolio Turnover Rate................... 176.17% 229.90% 176.17% 229.90%
Average commission rate paid(4)........... $.0269 - $.0269 -
Net Assets, end of period (000's Omitted). $53 $1 $4 $1
(1) From September 5, 1995 (commencement of initial offering) to October 31, 1995.
(2) Exclusive of sales load.
(3) Not annualized.
(4) For fiscal years beginning November 1, 1995, the Fund is required to disclose its average
commission rate paid per share for purchases and sales of investment securities.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER GLOBAL INVESTING, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Premier Global Investing, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company. The Fund's investment objective is to maximize
capital growth. The Dreyfus Corporation ("Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue 300 million
of $.001 par value Common Stock in each of the following class of shares:
Class A, Class B, Class C and Class R shares. Class A shares are subject to a
sales charge imposed at the time of purchase, 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, Class C shares are subject to
a contingent deferred sales charge imposed at the time of redemption on
redemptions made within one year of purchase and Class R shares are sold at
net asset value per share only to institutional investors. Other differences
between the four Classes include the services offered to and the expenses
borne by each Class and certain voting rights.
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 Directors.
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 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, 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, 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.
(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
PREMIER GLOBAL INVESTING, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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-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. Interest on borrowings is charged
at rates which are related to Federal Funds rates in effect from time to
time.
The average daily amount of borrowings outstanding during the period ended
October 31, 1996 was $1,366, with a related weighted average annualized
interest rate of 6.38%. The maximum amount borrowed at any time during the
period ended October 31, 1996 was $500,000.
NOTE 3-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 value of
the Fund's average daily net assets and is payable monthly. The Agreement
further provides that if in any full fiscal year the aggregate expenses of
the Fund, exclusive of taxes, brokerage, interest on borrowings (which, in
the view of Stroock & Stroock & Lavan, counsel to the Fund, also contemplates
dividends and interest accrued on securities sold short) and extraordinary
expenses, exceed the expense limitation of any state having jurisdiction over
the Fund, the Fund may deduct from payments to be made to the Manager, or the
Manager will bear the amount of such excess 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 (excluding distribution expenses and certain expenses as
described above) exceed 21/2% of the first $30 million, 2% of the next $70
million and 11/2% 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 period ended October 31, 1996.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $36,614 during the period ended October 31, 1996 from commissions
earned on sales of the Fund's shares.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C shares at an annual rate of .75 of 1% of the value of the average
daily net assets of Class B and Class C. During the period ended October 31,
1996, $565,748 was charged to the Fund for the Class B shares and $141 was
charged to the Fund for the Class C shares.
(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, Class B and Class C shares for the provision of certain services.
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 October 31,
1996, $175,752, $188,583 and $47 were charged to Class A, Class B and Class C
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan.
PREMIER GLOBAL INVESTING, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Effective December 1, 1995, 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. Such compensation amounted to $86,921
for the period ended October 31, 1996.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% 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 October 31, 1996, amounted to $237,857,153 and
$237,582,936, 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
gains on such contracts that are recognized in the statement of assets and
liabilities. At October 31, 1996, there were no open forward currency exchange
contracts.
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The Fund is exposed to
market risk as a result of changes in the value of the underlying financial
instruments. 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 received or made 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. At October
31, 1996, there were no financial futures contracts outstanding.
(B) At October 31, 1996, accumulated net unrealized appreciation on
investments was $112,265, consisting of $8,571,997 gross unrealized
appreciation and $8,459,732 gross unrealized depreciation.
At October 31, 1996, 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).
PREMIER GLOBAL INVESTING, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
PREMIER GLOBAL INVESTING, INC.
We have audited the accompanying statement of assets and liabilities of
Premier Global Investing, Inc., including the statement of investments, as of
October 31, 1996, 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, 1996 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, Inc. at October 31, 1996, 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 13, 1996
PREMIER GLOBAL INVESTING, INC.
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 October 31, 1996:
-the total amount of taxes paid to foreign countries was $209,181.
-the total amount of income sourced from foreign countries was
$287,940.
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 1996 calendar year with Form 1099-DIV which will be
mailed by January 31, 1997.
For Federal tax purposes the Fund hereby designates $.47 per share as a
long-term capital gain distribution paid on December 7, 1995.
The Fund also designates 16.64% of the ordinary dividends paid during the
fiscal year ended October 31, 1996 as qualifying for the corporate dividends
received deduction. Shareholders will receive notification in January 1997 of
the percentage applicable to the preparation of their 1996 income tax
returns.
PREMIER GLOBAL INVESTING, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
POBox 9641
Providence, RI 02940
Printed in U.S.A. 092/633AR9610
Annual Report
Premier Global
Investing, Inc.
October 31, 1996
[Dreyfus lion/2hres logo]
<TABLE>
<CAPTION>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
PREMIER GLOBAL INVESTING, INC. CLASS A SHARES AND THE
MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX
<S> <C> <C> <C> <C> <C>
EXHIBIT A:
___________________________________________________
| MORGAN STANLEY | MSCI
| PREMIER CAPITAL | INVESTMENT RETURN
| PERIOD GLOBAL INVESTING INTERNATIONAL | MONTHLY
| (CLASS A SHARES) WORLD INDEX* |
|--------------------------------------------------|
| 1/31/92 9,549 10,000 | 1/31/92 10,000.00 0.0000
| 10/31/92 10,451 9,419 | 10/31/92 10,000.00 -0.0581
| 10/31/93 12,088 11,963 | 10/31/93 9,419.00 0.2701
| 10/31/94 12,767 12,878 | 10/31/94 11,963.07 0.0765
| 10/31/95 13,370 14,100 | 10/31/95 12,878.24 0.0948
| 10/31/96 14,734 16,397 | 10/31/96 14,099.10 0.1630
--------------------------------------------------
* Source: Lipper Analytical Services, Inc.
</TABLE>
