SEMI-ANNUAL REPORT
--------------------
DREYFUS PREMIER
INTERNATIONAL
GROWTH FUND, INC.
--------------------
APRIL 30, 1998
[Lion Logo]
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- ------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
Dreyfus is pleased to report the
performance for the Dreyfus Premier
International Growth Fund for the six-
month period ended April 30, 1998. Your
Fund produced a total return of 15.77% for
Class A shares, 15.33% for Class B shares,
15.29% for Class C shares and 15.79% for
Class R shares.* These returns (on
average) compare favorably to the 15.44%
return produced by the main index of
international markets, the Morgan Stanley
Capital International Europe, Australasia, CHART
Far East (EAFERegistration Mark) Index.**
Your Fund's overweight positions in
Italy and Spain were important
contributors to performance over the
period as the Italian market rose 46%
during the six months ended 4/30/98 and
the Spanish market was up 55% in the same
time frame. Large positions in Germany, up
30%, and France, which improved 36% over
the six months under review, also aided
performance.
Your Fund's European strategy has not changed in the last 18 months. As
noted in several shareholder letters over that period, many of Dreyfus
Premier International Growth Fund's European holdings fall into three
categories. One is "new growth companies" that have either been spun out of
larger companies or made available to investors for the first time through
initial public offerings. Strong contributors falling into this category over
the half year under review include U.K. software maker Misys and airport
retailers Aldeasa of Spain and Aeroporti di Roma of Italy. Second, many of
the Fund's European holdings are drivers of broad change within important
industries. Swedish insurer Skandia Group Forsakrings (a leader in investment
products) and U.K.-based international cellular phone operator Vodafone Group
performed strongly once again in this area. Last, a fair number of your
Fund's European holdings are companies in the midst of restructuring to
provide stronger financial returns for shareholders. Strong contributors to
performance in this area over the six months under review include German
consumer products giant Henkel KGaA and French conglomerate Generale des Eaux
as
<PAGE>
well as a large number of financial services companies. The entire financial
services sector is in the early stages of a restructuring/consolidation
similar to that which U.S. and U.K. financial services firms have undergone
over the last 10 to 15 years. European financial services companies must raise
returns to compete in the international capital market and to be successful
participants in the ongoing industry consolidation. Among the strong
contributors to performance were French Banque National de Paris, German
insurer Allianz, Italian insurer Instituto nazionale della Assicurazioni and
banks Instituto Mobiliare Italiano and Instituto Bancario San Paolo di Torino,
Spanish Banks Argentaria and Banco Santander and the Swedish Svenska
Handelsbanken.
INVESTMENT APPROACH
During my 14 years in the international equity management business I have
developed an investment process designed to deliver to investors a portfolio
that includes a wide variety of holdings in 15 to 25 markets around the
world, exposure to rapidly growing emerging markets when they are attractive
for investment, and active currency management. A crucial challenge for an
international investor is how to judge the relative attractiveness of various
markets when there are scores to choose from. I address this challenge by
evaluating inputs on growth, valuation, 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 developed over time. Markets and industry
sectors will be overweighted, underweighted or market weighted relative to
those of the Morgan Stanley Capital International Europe, Australasia, Far
East (EAFE(R)) Index. Markets and industry sectors are overweighted or
underweighted in a disciplined manner. The fund will invest in emerging
markets when they are judged to be attractive. While these markets comprise
only a small portion of the EAFERegistration Mark Index, the Dreyfus Premier
International Growth Fund will invest up to 30% of its assets in this area
when significant opportunities present themselves. The reason for this policy
is twofold. First, successful emerging countries have the highest secular
Gross Domestic Product (GDP) and Earnings Per Share (EPS) growth rates in the
world and an international 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. Making a
significant investment at the appropriate time positions the Fund to benefit
from these extraordinary opportunities.
In my investment process, 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 both relative to 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
reduced as a result of an asset allocation decision.
Foreign currencies are at least partially hedged, where practicable, when
I believe that a given currency has 10% or more downside risk against the
U.S. Dollar over the next 12 to 18 months.
CURRENT STRATEGY
In the 1997 annual report, the Dreyfus Premier International Growth team
laid out its broad outline of the international market environment as
follows:
"Four broad conclusions are driving current strategy in the Fund. First,
growth of the world economy will be significantly lower as a result of the
currency turmoil that has swept emerging markets in recent months but there
is a silver lining in that interest rates are likely to be lower also.
Second, research on both markets and individual stocks indicates that
Continental Europe is an attractive area for investment. Third, Japan may be
nearing the end of its seven-year-long bear market, a development that
warrants close monitoring for potential opportunities. Last, emerging markets
are likely to
<PAGE>
need more time to sort out their recent difficulties before they become a
target for significant investment in your Fund." These statements continue to
guide the team's management of your Fund.
Europe has become two distinct markets. The U.K. is experiencing
declining corporate earnings growth, high interest rates and poor liquidity.
While this market may become a much more fertile area for investment later in
1998, at the end of the reporting period, your Fund was underweight in the
London market. Continental Europe is a completely different story. As noted
in my last shareholder letter, the Continent could see strong earnings growth
in 1998 even after adjusting for the difficulties in emerging markets. The
Premier International Growth investment team feels even more bullish on
Continental European earnings now than at the end of October 1997 when that
statement was made. Europe is beginning to benefit from the creation of
private savings schemes and mutual funds as citizens of that region come
increasingly to realize that government-sponsored pension plans alone will
not provide a comfortable source of retirement funds.
Many of your Fund's Continental European investments continue to fall
into the three main categories previously discussed. The Continental European
portfolio is diversified among 11 countries. But the emphasis - the largest
market overweights in the region - are in those countries that are the
greatest beneficiaries of European Monetary Union. These are Italy, Spain and
some of the smaller markets such as Portugal and Ireland. Among recently
established investments in the Continental European markets are German
retailer Douglas, French hotel group Accor and Olivetti, an Italian company
formerly in the computer business that is in process of reinventing itself as
a telephone service provider.
Japan remains a "wait and see" market. The economy is still mired in
recession and earnings are in decline. Perhaps more importantly the
government and Japanese companies are moving only very, very slowly to
implement the deregulatory and restructuring measures that have attracted
equity capital to other international markets such as Germany, Italy, Spain,
South Africa, Brazil and others. Liquidity remains very poor in the Tokyo
market. While the economy may well pick up during the second half of 1998,
driving stock prices moderately higher, the start of a new Japanese bull
market awaits the investor-friendly reforms mentioned above. Your Fund's
investments in Japan remain at a minimal level while the investment team
closely evaluates ongoing news from Japan for evidence of opportunities.
Following the Asian stock market and currency crisis of late 1997 and
early 1998, true economic hardship-bankruptcies, unemployment, even social
unrest - is hitting the region. This difficult period can be expected to
continue for at least 12 months and possibly several years. Your Fund's
exposure to the Asian emerging markets remained minimal during the period.
Further, the Asian crisis has increased the perceived risk level of all
emerging markets for investors. My comment from the last letter, "I remain
cautious on emerging markets," still holds true and thus your Fund's exposure
to emerging countries remained very low with small investments in Brazil,
Mexico, South Africa and Taiwan.
<PAGE>
As manager of Dreyfus Premier International Growth Fund I look forward to
communicating with you again later this year in the annual shareholder
letter.
Sincerely,
/s/ Ron Chapman
Ron Chapman
Portfolio Manager
May 18, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, and does not take into consideration 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 and
Class C shares.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFERegistration Mark) Index
is an unmanaged index composed of a sample of companies representative of
the market structure of European and Pacific Basin countries and includes
net dividends reinvested. The Index is the property of Morgan Stanley &
Co. Incorporated.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
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STATEMENT OF INVESTMENTS APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS-94.5% SHARES VALUE
- ---------------------------------------------------------------------------- ------------ ------------
<S> <C> <C> <C>
BRAZIL-.8% Compania de Saneamento
Basico do Estado de Sao Paolo........ 4,500 $ 1,023,085
------------
DENMARK-.9% BG Bank................................ 20,000 1,167,951
------------
FINLAND-1.2% Merita, Cl. A.......................... 220,000 1,472,773
------------
FRANCE-10.4% Accor.................................. 6,500 1,769,831
Axa.................................... 14,000 1,641,997
Banque Nationale de Paris.............. 16,000 1,347,620
Generale Des Eaux...................... 11,200 2,080,173
Generale Des Eaux (Warrants)........... 11,200 16,281
LVMH Moet Hennessy..................... 7,000 1,439,655
SGS - Thomson Microelectronics......(a) 35,000 2,957,500
Societe Generale....................... 3,500 727,967
Suez Lyonnaise Des Eaux................ 8,500 1,440,319
------------
13,421,343
------------
GERMANY-8.4% Adidas................................. 8,400 1,391,425
Allianz................................ 5,500 1,690,423
Beta Systems Software...............(a) 7,000 551,893
Commerzbank............................ 35,000 1,348,552
Douglas Holding........................ 39,000 1,724,165
Hoechst................................ 35,000 1,410,718
Linde.................................. 2,000 1,379,733
Pro Sieben Media....................... 25,000 1,287,584
------------
10,784,493
------------
IRELAND-1.0% Bank of Ireland........................ 60,000 1,216,401
------------
ITALY-15.6% Aeroporti di Roma...................(a) 175,000 2,455,726
Assicurazioni Generali................. 75,200 2,250,867
Banca Popolare Di Brescia.............. 163,000 2,496,820
ENI.................................... 250,000 1,674,189
Fiat................................(a) 272,500 1,083,851
Instituto Nazionale delle Assicurazioni 900,000 2,682,990
Instituto Bancario San Paolo di Torino. 96,000 1,408,451
Istituto Mobiliare Italiano............ 88,000 1,432,575
Olivetti............................... 1,000,000 1,292,525
Rinascente............................. 140,000 1,378,042
Telecom Italia......................... 260,000 1,957,518
------------
20,113,554
------------
JAPAN-8.1% Aiwa................................... 27,000 802,181
Canon.................................. 22,000 517,939
Dai Nippon Printing.................... 68,000 1,150,809
</TABLE>
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED) SHARES VALUE
- ---------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C> <C>
JAPAN (CONTINUED) Daikin Industries............................ 96,000 $ 469,349
Isetan....................................... 80,000 661,301
Ito Yokado................................... 15,000 772,847
Kao.......................................... 50,000 731,478
Minebea...................................... 65,000 723,580
Mitsui Marine & Fire Insurance............... 132,000 674,148
Nidec........................................ 13,000 694,246
Nintendo..................................... 7,000 629,710
Nomura Securities............................ 53,000 643,814
Shimano...................................... 33,000 727,266
Wacoal....................................... 60,000 602,482
Yamanouchi Pharmaceutical.................... 27,000 635,653
------------
10,436,803
------------
MEXICO-3.5% Grupo Carso, SA de CV, Ser. A1............... 120,000 758,787
Grupo Financiero Banamex Accival, Cl. B...(a) 480,000 1,494,966
Grupo Financiero Bancomer S.A., Ser. B....(a) 2,200,000 1,518,046
Telefonos de Mexico, A.D.R................... 14,000 792,750
------------
4,564,549
------------
NETHERLANDS-6.0% ABN Amro Holding............................. 70,000 1,703,348
ASM Lithography Holding...................(a) 14,500 1,328,562
ING Groep.................................... 11,000 714,328
Koninklijke Numico........................... 36,000 1,201,840
Royal Dutch Petroleum........................ 25,000 1,378,654
Unique International......................... 45,000 1,431,080
------------
7,757,812
------------
PORTUGAL-1.9% Electricidade de Portugal.................... 64,600 1,684,302
Portugal Telecom............................. 14,000 751,711
------------
2,436,013
------------
SINGAPORE-4.2% Creative Technology.......................... 33,000 685,633
Development Bank............................. 214,500 1,422,324
Development Bank (Rights).................... 39,000 49,258
Keppel....................................... 560,000 1,506,536
Overseas Union Bank.......................... 470,000 1,780,865
------------
5,444,616
------------
SOUTH AFRICA-2.3% Barlow....................................... 70,000 676,660
Investec Group............................... 13,000 627,684
Liberty Life Association of Africa........... 26,000 879,786
Primedia..................................... 85,000 731,671
------------
2,915,801
------------
</TABLE>
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DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED) SHARES VALUE
- ---------------------------------------------------------------------------- ------------ ------------
<S> <C> <C> <C>
SPAIN-7.7% Aldeasa.............................(a) 70,000 $ 2,547,458
Argentaria............................. 25,000 2,081,899
Banco de Santander..................... 35,000 1,847,480
Endesa................................. 60,000 1,455,690
Repsol................................. 37,000 2,025,835
------------
9,958,362
------------
SWEDEN-4.7% Electrolux, Cl. B...................... 19,000 1,766,050
Skandia Group Forsakrings.............. 33,000 2,296,252
Svenska Handelsbanken, Ser. A.......... 44,000 1,993,778
------------
6,056,080
------------
SWITZERLAND-5.3% Adecco................................. 4,000 1,745,503
Nestle................................. 800 1,550,966
Swiss Life............................. 1,500 1,268,155
Union Bank of Switzerland.............. 1,400 2,253,431
------------
6,818,055
------------
TAIWAN-.8% Taiwan Semiconductor Manufacturing,
A.D.R.................................. 39,700 975,131
------------
UNITED KINGDOM-11.7% British Sky Broadcasting Group......... 210,000 1,526,915
Colt Telecom Group..................... 65,000 1,401,553
Diageo................................. 125,280 1,490,967
Enterprise Oil......................... 135,000 1,245,602
Gallaher Group......................... 231,000 1,201,305
Granada Group.......................... 71,000 1,222,368
Misys.................................. 38,114 1,826,814
Scottish & Newcastle................... 68,000 1,031,483
SmithKline Beecham..................... 109,000 1,299,040
Somerfield............................. 225,000 1,274,936
Vodafone Group......................... 135,000 1,478,024
------------
14,999,007
------------
TOTAL COMMON STOCKS
(cost $101,559,720).................. $121,561,829
============
PREFERRED STOCKS-2.4%
- ----------------------------------------------------------------------------
BRAZIL-1.2% Companhia Energetica de Minas Gerais... 33,000 $ 1,601,521
------------
GERMANY-1.2% Henkel KGaA............................ 20,000 1,559,020
------------
TOTAL PREFERRED STOCKS
(cost $2,039,703).................... $ 3,160,541
============
</TABLE>
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS (cost $103,559,423)................................................. 96.9% $124,722,370
====== ============
CASH AND RECEIVABLES (NET)............................................................ 3.1% $ 3,926,421
====== ============
NET ASSETS............................................................................ 100.0% $128,648,791
====== ============
<FN>
NOTES TO STATEMENT OF INVESTMENTS:
- ------------------------------------------------------------------------------------------------------------------------
(a) Non-income producing.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments...... $103,599,423 $124,722,370
Cash........................................................ 835,514
Receivable for investment securities sold................... 12,888,572
Receivable for forward currency exchange contracts.......... 479,699
Dividends and interest receivable........................... 468,616
Net unrealized appreciation on forward currency
exchange contracts-Note 4(a).............................. 275,210
Receivable for shares of Common Stock subscribed............ 5,867
Prepaid expenses............................................ 35,912
------------
139,711,760
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates............... 115,675
Due to Distributor.......................................... 44,698
Payable for shares of Common Stock redeemed................. 4,918,046
Bank loan payable-Note 2.................................... 3,000,000
Payable for investment securities purchased................. 2,813,514
Interest payable-Note 2..................................... 15,752
Accrued expenses............................................ 155,284
------------
11,062,969
------------
NET ASSETS............................................................................. $128,648,791
============
REPRESENTED BY: Paid-in capital............................................. $109,139,815
Accumulated investment (loss)............................... (286,640)
Accumulated net realized gain (loss) on investments,
forward currency exchange contracts and foreign
currency transactions..................................... (1,592,156)
Accumulated net unrealized appreciation (depreciation)
on investments, forward currency exchange contracts
and foreign currency transactions......................... 21,387,772
------------
NET ASSETS............................................................................. $128,648,791
============
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
-------------------------
CLASS A CLASS B CLASS C CLASS R
------------ ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net Assets................................. $57,421,220 $70,841,881 $ 316,022 $ 69,668
Shares Outstanding......................... 3,552,431 4,474,548 20,497 4,315.17
NET ASSET VALUE PER SHARE.................. $16.16 $15.83 $15.42 $16.14
====== ====== ====== ======
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME: Cash dividends (net of $134,181 foreign taxes
withheld at source).......................... $ 796,393
Interest......................................... 120,896
---------
TOTAL INCOME............................... $ 917,289
EXPENSES: Management fee-Note 3(a)......................... 484,010
Distribution fees-Note 3(b)...................... 255,498
Shareholder servicing costs-Note 3(c)............ 221,310
Custodian fees................................... 55,904
Interest expense-Note 2.......................... 53,946
Registration fees................................ 27,936
Professional fees................................ 26,262
Prospectus and shareholders' reports............. 14,412
Directors' fees and expenses-Note 3(d)........... 11,108
Miscellaneous.................................... 3,245
---------
TOTAL EXPENSES............................. 1,153,631
-----------
INVESTMENT (LOSS)................................................................. (236,342)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments and
foreign currency transactions.................. $(135,155)
Net realized gain (loss) on forward currency
exchange contracts:
Short transactions........................... (72,901)
---------
NET REALIZED GAIN (LOSS)................... (208,056)
Net unrealized appreciation (depreciation)
on investments, forward currency exchange
contracts and foreign currency transactions.... 19,617,063
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS............................ 19,409,007
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............................. $19,172,665
===========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment (loss)................................................. $ (236,342) $ (545,794)
Net realized gain (loss) on investments........................... (208,056) 18,415,535
Net unrealized appreciation (depreciation) on investments......... 19,617,063 1,661,648
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS.................................................. 19,172,665 19,531,389
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares.................................................. -- (676,358)
Class B shares.................................................. -- (149,162)
Class C shares.................................................. -- (1,011)
Class R shares.................................................. -- (429)
Net realized gain on investments:
Class A shares.................................................. (8,881,717) (8,792,664)
Class B shares.................................................. (10,185,322) (9,418,461)
Class C shares.................................................. (35,735) (12,410)
Class R shares.................................................. (12,932) (4,409)
------------ ------------
TOTAL DIVIDENDS............................................. (19,115,706) (19,054,904)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................. 23,648,505 34,193,355
Class B shares.................................................. 1,697,938 3,089,712
Class C shares.................................................. 71,687 225,535
Class R shares.................................................. 11,712 73,884
Dividends reinvested:
Class A shares.................................................. 8,559,934 9,128,243
Class B shares.................................................. 9,726,754 9,154,420
Class C shares.................................................. 29,819 12,995
Class R shares.................................................. 12,932 4,838
Cost of shares redeemed:
Class A shares.................................................. (34,286,109) (51,594,393)
Class B shares.................................................. (6,952,499) (17,522,352)
Class C shares.................................................. (75,662) (5,622)
Class R shares.................................................. (34,681) (2,168)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK
TRANSACTIONS................................................ 2,410,330 (13,241,553)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS................... 2,467,289 (12,765,068)
NET ASSETS:
Beginning of Period............................................... 126,181,502 138,946,570
------------ ------------
End of Period..................................................... $128,648,791 $126,181,502
============ ============
INVESTMENT (LOSS)..................................................... $ (286,640) $ (50,298)
------------ ------------
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES
-------------------------------------
SIX MONTHS ENDED
APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997
------------------- -----------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
CLASS A
-------
Shares sold............................................................ 1,528,974 2,080,820
Shares issued for dividends reinvested................................. 607,518 613,045
Shares redeemed........................................................ (2,172,130) (3,138,619)
---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING....... (35,638) (444,754)
========== ==========
CLASS B
-------
Shares sold............................................................ 110,574 193,309
Shares issued for dividends reinvested................................. 702,800 619,798
Shares redeemed........................................................ (456,364) (1,093,382)
---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING....... 357,010 (280,275)
========== ==========
CLASS C
-------
Shares sold............................................................ 4,642 14,503
Shares issued for dividends reinvested................................. 2,212 899
Shares redeemed........................................................ (4,718) (330)
---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING....... 2,136 15,072
========== ==========
CLASS R
-------
Shares sold............................................................ 750 4,446
Shares issued for dividends reinvested................................. 919 326
Shares redeemed........................................................ (2,227) (134)
---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING....... (558) 4,638
========== ==========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, 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
----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 -------------------------------------------------
PER SHARE DATA: (UNAUDITED) 1997 1996 1995 1994 1993
---------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $16.45 $16.59 $16.10 $15.78 $15.58 $13.68
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net..................... --(1) -- .14 .24 .15 .10
Net realized and unrealized gain (loss)
on investments.......................... 2.23(1) 2.24 1.44 .47 .71 2.01
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.......... 2.23(1) 2.24 1.58 .71 .86 2.11
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net...... -- (.17) (.25) (.15) (.08) (.09)
Dividends from net realized gain
on investments.......................... (2.52) (2.21) (.84) (.24) (.58) (.12)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS....................... (2.52) (2.38) (1.09) (.39) (.66) (.21)
------ ------ ------ ------ ------ ------
Net asset value, end of period............ $16.16 $16.45 $16.59 $16.10 $15.78 $15.58
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (2)................... 15.77%(3) 15.00% 10.21% 4.72% 5.62% 15.66%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets.............................. .64%(3) 1.30% 1.31% 1.31% 1.38% 1.66%
Ratio of interest expense to average
net assets.............................. .04%(3) -- -- .01% .01% .01%
Ratio of net investment income to average
net assets.............................. .02%(3) -- .76% 1.38% .95% .98%
Portfolio Turnover Rate................... 93.85%(3) 161.62% 176.17% 229.90% 156.98% 179.28%
Average commission rate paid (4).......... $.0245 $.0261 $.0269 -- -- --
Net Assets, end of period (000's Omitted). $57,421 $59,030 $66,907 $68,584 $79,017 $75,066
<FN>
- ---------------
(1) Based on average shares outstanding.
(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.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, 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.
<TABLE>
<CAPTION>
CLASS B SHARES
----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 -------------------------------------------------
PER SHARE DATA: (UNAUDITED) 1997 1996 1995 1994 1993(1)
---------------- ------ ------ ------ ------ --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $16.22 $16.37 $15.90 $15.59 $15.49 $13.51
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income (loss)-net.............. (.06)(2) (.14) -- .10 .06 (.01)
Net realized and unrealized gain (loss)
on investments.......................... 2.19(2) 2.24 1.44 .49 .67 1.99
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS............. 2.13(2) 2.10 1.44 .59 .73 1.98
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net...... -- (.04) (.13) (.04) (.05) --
Dividends from net realized gain
on investments.......................... (2.52) (2.21) (.84) (.24) (.58) --
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS....................... (2.52) (2.25) (.97) (.28) (.63) --
------ ------ ------ ------ ------ ------
Net asset value, end of period............ $15.83 $16.22 $16.37 $15.90 $15.59 $15.49
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (3)................... 15.33%(4) 14.14% 9.36% 3.96% 4.82% 14.66%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average
net assets........................ 1.03%(4) 2.05% 2.06% 2.06% 2.15% 1.96%(4)
Ratio of interest expense to average
net assets.............................. .04%(4) -- -- .01% -- .01%(4)
Ratio of net investment income (loss) to
average net assets...................... (.37%)(4) (.76%) .01% .62% .23% (.18%)(4)
Portfolio Turnover Rate................... 93.85%(4) 161.62% 176.17% 229.90% 156.98% 179.28%
Average commission rate paid (5).......... $.0245 $.0261 $.0269 -- -- --
Net Assets, end of period (000's Omitted). $70,842 $66,781 $71,983 $72,215 $76,897 $40,897
<FN>
- ---------------
(1) From January 15, 1993 (commencement of initial offering) to October 31,
1993.
(2) Based on average shares outstanding.
(3) Exclusive of sales load.
(4) Not annualized.
(5) 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.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, 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.
<TABLE>
<CAPTION>
CLASS C SHARES
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 --------------------------------
PER SHARE DATA: (UNAUDITED) 1997 1996 1995(1)
----------- ------ ------ --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...................... $15.87 $16.20 $15.90 $15.85
------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income (loss)-net.............................. (.04)(2) (.12)(2) .28 (.01)
Net realized and unrealized gain (loss) on investments.... 2.11(2) 2.18(2) 1.14 .06
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.......................... 2.07(2) 2.06(2) 1.42 .05
------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net...................... -- (.18) (.28) --
Dividends from net realized gain on investments........... (2.52) (2.21) (.84) --
------ ------ ------ ------
TOTAL DISTRIBUTIONS....................................... (2.52) (2.39) (1.12) --
------ ------ ------ ------
Net asset value, end of period............................ $15.42 $15.87 $16.20 $15.90
====== ====== ====== ======
TOTAL INVESTMENT RETURN (3)................................... 15.29%(4) 14.17% 9.36% .32%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets......... .97%(4) 2.10% 1.90% .35%(4)
Ratio of interest expense to average net assets........... .04%(4) .01% -- --
Ratio of net investment income (loss) to average
net assets.............................................. (.28%)(4) (.73%) (.19%) (.09%)(4)
Portfolio Turnover Rate................................... 93.85%(4) 161.62% 176.17% 229.90%
Average commission rate paid (5).......................... $.0245 $.0261 $.0269 --
Net Assets, end of period (000's Omitted)................. $316 $291 $53 $1
<FN>
- ---------------
(1) From September 5, 1995 (commencement of initial offering) to October 31,
1995.
(2) Based on average shares outstanding.
(3) Exclusive of sales load.
(4) Not annualized.
(5) 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.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, 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.
<TABLE>
<CAPTION>
CLASS R SHARES
---------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 --------------------------------
PER SHARE DATA: (UNAUDITED) 1997 1996 1995(1)
----------- ------ ------ --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.......................... $16.43 $16.59 $16.11 $16.04
------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net..................................... .02(2) .17 .26 .01
Net realized and unrealized gain (loss) on investments.... 2.21(2) 2.10 1.35 .06
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.......................... 2.23(2) 2.27 1.61 .07
------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net...................... -- (.22) (.29) --
Dividends from net realized gain on investments........... (2.52) (2.21) (.84) --
------ ------ ------ ------
TOTAL DISTRIBUTIONS....................................... (2.52) (2.43) (1.13) --
------ ------ ------ ------
Net asset value, end of period............................ $16.14 $16.43 $16.59 $16.11
====== ====== ====== ======
TOTAL INVESTMENT RETURN....................................... 15.79%(3) 15.21% 10.45% .44%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets......... .53%(3) 1.09% .87% .18%(3)
Ratio of interest expense to average net assets........... .04%(3) .01% -- --
Ratio of net investment income to average net assets...... .11%(3) .21% .94% .08%(3)
Portfolio Turnover Rate................................... 93.85%(3) 161.62% 176.17% 229.90%
Average commission rate paid (4).......................... $.0245 $.0261 $.0269 --
Net Assets, end of period (000's Omitted)................. $70 $80 $4 $1
<FN>
- ---------------
(1) From September 5, 1995 (commencement of initial offering) to October 31,
1995.
(2) Based on average shares outstanding.
(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.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier International Growth Fund, 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") is 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 ("CDSC") imposed on Class B share
redemptions made within six years of purchase, Class C shares are subject to
a CDSC imposed on Class C shares redeemed 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 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 and 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 Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Code. This may result in distributions that are in excess of investment
income-net and net realized gain on a fiscal year basis. 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 April 30, 1998 was approximately $1,785,500 with a related weighted
average annualized interest rate of 6.1%.
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of .75 of 1% of the value of the Fund's
average daily net assets and is payable monthly.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $36,636 during the period ended April 30, 1998, 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 April 30,
1998, Class B and Class C shares were charged $254,572 and $926,
respectively, pursuant to the 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, 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 April 30, 1998,
Class A, Class B and Class C shares were charged $76,070, $84,857 and $309,
respectively, by the Distributor pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended April 30, 1998, the Fund was charged $10,428 pursuant to the
transfer agency agreement.
(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 and the Director Emeritus receives 50% of such compensation.
<PAGE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND, INC.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 April 30, 1998 amounted to $118,371,527 and
$132,676,205, respectively.
The following summarizes open forward currency exchange contracts at
April 30, 1998:
<TABLE>
<CAPTION>
FOREIGN
CURRENCY UNREALIZED
FORWARD CURRENCY EXCHANGE CONTRACTS AMOUNTS PROCEEDS VALUE APPRECIATION
- ----------------------------------------- ------------- ---------- ----------- ------------
SALES:
- -----
<S> <C> <C> <C> <C>
British Pounds, expiring 7/17/98..... 9,000,000 $15,102,000 $14,982,705 $119,295
Japanese Yen, expiring 7/15/98....... 1,300,000,000 10,050,251 9,894,336 155,915
--------
TOTAL.............................. $275,210
========
</TABLE>
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, or to gain exposure to the foreign currency in an
attempt to realize gains. When executing forward currency exchange contracts,
the Fund is obligated to buy or sell a foreign currency at a specified rate
on a certain date in the future. With respect to sales of forward currency
exchange contracts, the Fund would incur a loss if the value of the contract
increases between the date the forward contract is opened and the date the
forward contract is closed. The Fund realizes a gain if the value of the
contract decreases between those dates. With respect to purchases of forward
currency exchange contracts, the Fund would incur a loss if the value of the
contract decreases between the date the forward contract is opened and the
date the forward contract is closed. The Fund realizes a gain if the value of
the contract increases between those dates. The Fund is also exposed to
credit risk associated with counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gain
on each open contract.
(B) At April 30, 1998, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $21,398,157
consisting of $23,642,849 gross unrealized appreciation and $2,244,692 gross
unrealized depreciation.
At April 30, 1998, 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).
<PAGE>
DREYFUS PREMIER INTERNATIONAL
GROWTH FUND, 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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 092/633SA984
