Dreyfus Premier
International Growth
Fund
SEMIANNUAL REPORT
April 30, 1999
(R) Dreyfus Logo
<PAGE>
Year 2000 Issues
(Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- ---------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
15 Financial Highlights
19 Notes to Financial Statements
FOR MORE INFORMATION
- ----------------------------------------------------------
Back Cover
<PAGE>
Dreyfus Premier The Fund
International Growth Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier
International Growth Fund, covering the six-month period from November 1, 1998
through April 30, 1999. Inside, you'll find valuable information about how the
Fund was managed during the reporting period, including a discussion with the
Fund's portfolio manager, Doug Loeffler.
Many regional economies showed marked improvement after many of the world's
central banks lowered key short-term interest rates to stimulate economic
growth. Less restrictive monetary policies especially helped prevent further
economic deterioration in Japan, Asia, Latin America and Eastern Europe, where
the worst of the global currency and credit crisis appears to be behind us. In
contrast, some Western European economies slowed moderately after the formation
of the European Monetary Union (EMU) and the debut of a new currency, the euro.
These economic conditions produced mixed results for international stocks. Stock
markets in Japan, Asia and Latin America began to recover over the past six
months, showing their first signs of real strength in over a year. European
markets, on the other hand, provided disparate performance. For example, while
Spain and the United Kingdom experienced higher stock prices on average, others,
such as Germany, declined.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier International Growth Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
- ---------------------------------
Doug Loeffler, Portfolio Manager
How did Dreyfus Premier International Growth Fund perform relative to its
benchmark?
The Fund produced a total return of 7.67% for Class A shares, 7.22% for Class B
shares, 7.27% for Class C shares and 7.84% for Class R shares for the six-month
period ended April 30, 1999.1 This compares with a 15.28% return for the Fund's
benchmark, the Morgan Stanley Capital International Europe, Australasia, Far
East (EAFE(R)) for the same period.2 Management of the Fund changed in February
of this year. Changes in investment approach and strategy undertaken to help
improve your Fund's performance are described below.
What is the Fund's investment approach?
Dreyfus Premier International Growth Fund focuses on individual stock selection.
We choose our investments on a company-by-company basis, attempting to find the
companies we believe to be the best managed, best positioned in their
industries. We do not attempt to make broad calls on interest rates or market
movements. We do not have country allocation models or targets. We focus on
individual stock selection rather than analysis of macroeconomic factors.
Starting with roughly 1,000 of the largest companies outside the United States,
we perform rigorous stock-by-stock analyses. We look for companies that we
believe have achieved and can sustain growth through a dominant brand name,
growing market share, high barriers to entry or untapped market opportunities.
In our view, these factors are the marks of companies whose growth, in both
revenues and earnings, will exceed that of global industry peers as well as that
of its local market. We typically construct a portfolio of roughly 55-75 stocks,
broadly invested across countries and industries, representing what we believe
to be the best growth ideas in the world. We generally sell a stock when it
reaches the price we have predicted to be its maximum
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
value or when we determine that circumstances have changed and
that it will no longer reach the price target we previously set.
What factors influenced the Fund's performance?
A number of factors influenced the Fund's performance for the semiannual period.
The collapse of the developing markets of East Asia in mid to late 1998
adversely affected Fund performance. The Fund took a conservative approach to
reentering those markets, and therefore did not benefit from their early 1999
rebound. The Fund owned a proportionally large amount of European stocks. The
decline of the common European currency, the euro, versus the dollar had a
negative impact on fund performance over the period. Lastly, the Fund was
underweight in two major markets, Japan and the United Kingdom, which
outperformed world indices from late 1998 to early 1999.
What is the Fund's current strategy?
At the end of the reporting period, the Fund was clustered in three business
segments: telecommunications, media and technology.
In the telecommunications area, we believe the international market is very
similar to the U.S. market in the early 1980s. Previously closed markets are
opening to new participants. Full competition in Europe began in 1998 and,
already, the industry is growing faster there than the U.S. market did after
deregulation. We have purchased mobile operators and companies created to
challenge previous state monopolies. We hold Vodafone, a major United Kingdom
mobile company that recently purchased Airtouch in the U.S. to make it the
world's largest wireless communications company. We also own Esat Telecom
Group, ADS, a leading fixed and mobile operator challenging a previous state
monopoly in the Republic of Ireland.
In the media industry, we have invested in "indirect Internet plays", companies
with an established core business not dependent on the Internet
4
<PAGE>
but which could benefit from continued growth in on-line commerce. Seat Pagine
Gialle in Italy is pioneering an on-line yellow-pages service, which, for a fee
paid by advertisers, automatically transports the inquirer to the advertiser's
website. Another important trend in the media industry is the convergence of
cable television, telecommunications and the Internet. In this area, we own
United Pan-Europe Communications of the Netherlands, the largest cable company
in Europe.
In the technology industry, our focus is companies using leading-edge
technologies that can create high profit margins. We hold ST Microelectronics of
France, a leader in the manufacture of high value-added semiconductors for use
in automobiles and appliances, and Nokia, ADS, of Finland, the leading
manufacturer of mobile telephones.
As of April 30, we continue to believe that valuations for international growth
stocks are attractive in comparison to domestic issues and that Dreyfus Premier
International Growth Fund provides an attractive vehicle for investors who want
exposure to this market segment.
May 13, 1999
1 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 redemption in the case of Class B and Class C shares.
2 SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE(R)) 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.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Common Stocks--98.5% Shares Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Argentina--2.9%
YPF Sociedad Anonima, ADS 58,000 2,435,863
Austria--1.8%
Austria Tabak 16,900 1,037,934
VA Technologie 5,200 495,565
1,533,499
Brazil--1.5%
Aracruz Celulose, ADS 38,000 760,000
Tele Sudeste Celular, ADS 16,480 470,710
1,230,710
Canada--3.1%
MetroNet Communications, Cl. B 24,800 a 1,376,400
Newbridge Networks 30,300 a 1,128,675
2,505,075
Finland--5.0%
Merita 220,000 1,304,565
Nokia, ADS 18,200 1,350,213
Tieto, Cl. B 26,000 1,051,699
UPM-Kymmene 15,000 454,109
4,160,586
France--10.4%
Accor 4,500 1,188,880
Altran Technologies 7,800 1,858,370
Canal Plus 3,800 1,059,069
Cap Gemini 7,000 1,072,560
Elf Aquitaine 8,900 1,385,359
STMicroelectronics 9,500 a 991,872
Vivendi 4,600 1,076,965
8,633,075
Germany--10.3%
Continental 33,000 821,177
DaimlerChrysler, ADR 15,000 1,472,813
DePfa Deutsche Pfandbriefbank 9,900 828,166
Deutsche Lufthansa 37,000 858,027
Dresdner Bank 25,000 1,080,078
Mannesmann 12,150 1,603,058
Preussag 19,450 1,025,661
Preussag(Rights) 19,450 a 18,330
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Germany (continued)
Singulus Technologies 5,800 a 822,977
8,530,287
Hong Kong--.6%
China Telecom (Hong Kong), ADS 10,500 a 480,375
Ireland--2.4%
Elan, ADS 15,500 a 798,250
Esat Telecom Group, ADS 24,000 a 1,173,000
1,971,250
Italy--7.5%
Alleanza Assicurazioni 104,000 1,246,952
Mondadori (Arnoldo) Editore 90,000 1,599,341
Seat Pagine Gialle 450,000 557,987
Seat Pagine Gialle-RNC 900,000 742,585
Telecom Italia 154,000 1,633,152
Telecom Italia Mobile 75,000 452,521
6,232,538
Japan--13.9%
Japan Telecom 50 707,824
Kao 62,000 1,573,630
Kita Kyushu Coca-Cola Bottling 22,500 1,096,917
Konami 35,500 1,248,952
NTT Mobile Communications Network 29 1,700,452
Ryohin Keikaku 7,000 1,275,339
Shiseido 109,000 1,716,535
Sony 8,750 817,243
Takefuji 16,000 1,326,855
11,463,747
Netherlands--6.9%
Benckiser, Cl. B 23,500 1,298,953
ING Groep 20,000 1,234,677
TNT Post Group 32,000 864,062
United Pan-Europe Communications 12,200 a 632,364
VNU 41,000 1,662,791
5,692,847
Portugal--2.0%
Brisa-Auto Estradas de Portugal 39,000 1,656,014
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Singapore--1.6%
Development Bank of Singapore 125,000 1,326,651
Spain--3.3%
Banco Santander Central Hispano 55,600 1,210,467
Superdiplo 25,000 a 541,363
Telefonica 20,000 939,244
Telefonica (Rights) 20,000 a 18,637
2,709,711
Sweden--6.5%
Electrolux, Cl. B 45,000 915,015
Ericsson (LM) Tel, Cl. B, ADS 25,000 669,750
NetCom, Cl. B 32,500 a 1,047,303
Skandia Forsakrings 64,000 1,240,472
Skandinaviska Enskilda Banken 113,000 1,478,055
5,350,595
Switzerland--1.2%
Swisscom 2,600 955,381
Taiwan--.7%
Taiwan Semiconductor Manufacturing, ADS 23,500 a 564,000
United Kingdom--15.5%
Allied Irish Banks 52,000 840,863
BP Amoco, ADS 8,500 962,094
Compass Group 117,000 1,199,172
Diageo 83,280 961,432
Dixons Group 62,000 1,323,789
Glaxo Wellcome, ADR 14,000 815,500
Ladbroke Group 408,000 1,986,690
Pearson 87,000 1,850,575
Securicor 95,000 891,145
South African Breweries 96,150 a 803,694
Vodafone 63,000 1,160,652
12,795,606
United States--1.4%
Global TeleSystems Group 17,400 a 1,150,575
Total Common Stocks
(cost $73,297,421) 81,378,385
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Preferred Stocks--1.3% Shares Value ($)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Brazil;
Petroleo Brasileiro 9,750 1,079,211
(cost $1,039,846)
- --------------------------------------------------------------------------------------------
Principal
Short-Term Investments--.6% Amount ($) Value ($)
- --------------------------------------------------------------------------------------------
U.S. Treasury Bills;
5.08%, 7/22/99 536,000 530,616
(cost $530,713)
- --------------------------------------------------------------------------------------------
Total Investments (cost $74,867,980) 100.4% 82,988,212
Liabilities, Less Cash and Receivables (.4%) (354,943)
Net Assets 100.0% 82,633,269
</TABLE>
a Non-income producing.
See notes to financial statements.
The Fund 9
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Cost Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--
See Statement of Investments 74,867,980 82,988,212
Cash 90,511
Dividends receivable 488,117
Receivable for investment securities sold 2,359,724
Prepaid expenses 32,850
85,959,414
- ----------------------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation and affiliates 59,260
Due to Distributor 42,082
Payable for investment securities purchased 2,012,336
Payable for shares of Common Stock redeemed 1,140,999
Accrued expenses 71,468
3,326,145
- ----------------------------------------------------------------------------------------------
Net Assets ($): 82,633,269
- ----------------------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 77,676,772
Accumulated undistributed investment income--net 347,667
Accumulated net realized gain (loss) on investments
and foreign currency transactions (3,473,137)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 8,081,967
- ----------------------------------------------------------------------------------------------
Net Assets 82,633,269
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Class B Class C Class R
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 43,201,702 38,934,196 427,302 70,069
Shares Outstanding 3,013,975 2,790,011 31,461 4,901
- ----------------------------------------------------------------------------------------------
Net Asset Value Per Share ($) 14.33 13.95 13.58 14.30
</TABLE>
See notes to financial statements.
10
<PAGE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Investment Income ($)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Income:
Cash dividends (net of $121,009 foreign taxes withheld at source) 1,042,439
Interest 57,439
Total Income 1,099,878
Expenses:
Management fee--Note 3(a) 338,161
Distribution fees--Note 3(b) 180,237
Shareholder servicing costs--Note 3(c) 171,468
Custodian fees 50,412
Professional fees 37,014
Registration fees 25,985
Directors' fees and expenses--Note 3(d) 11,997
Miscellaneous 1,147
Total Expenses 816,421
Investment Income--Net 283,457
- -----------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4:
Net realized gain (loss) on investments and
foreign currency transactions 2,795,399
Net realized gain (loss) on forward currency
exchange contracts 140,007
Net Realized Gain (Loss) 2,935,406
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 3,498,444
Net Realized and Unrealized Gain (Loss) on Investments 6,433,850
Net Increase in Net Assets Resulting From Operations 6,717,307
</TABLE>
See notes to financial statements.
The Fund 11
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment Income--net 283,457 176,999
Net realized gain (loss) on investments 2,935,406 (5,024,444)
Net unrealized appreciation (depreciation)
on investments 3,498,444 2,812,814
Net Increase (Decrease) in Net Assets
Resulting from Operations 6,717,307 (2,034,631)
- --------------------------------------------------------------------------------------------
Dividends to Shareholders From ($):
Investment income--net:
Class A shares (62,191) --
Class R shares (300) --
Net realized gain on investments:
Class A shares -- (8,881,717)
Class B shares -- (10,185,321)
Class C shares -- (35,735)
Class R shares -- (12,932)
Total Dividends (62,491) (19,115,705)
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A shares 16,864,922 53,917,170
Class B shares 3,812,132 5,524,765
Class C shares 1,845,601 296,792
Class R shares 31,914 47,105
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Capital Stock Transactions (continued) ($):
Dividends reinvested:
Class A shares 58,864 8,559,934
Class B shares -- 9,726,754
Class C shares -- 29,819
Class R shares 295 12,932
Cost of shares redeemed:
Class A shares (18,561,455) (71,212,104)
Class B shares (20,149,160) (17,753,575)
Class C shares (1,866,390) (148,177)
Class R shares (11,321) (79,530)
Increase (Decrease) in Net Assets
from Capital Stock Transactions (17,974,598) (11,078,115)
Total Increase (Decrease) in Net Assets (11,319,782) (32,228,451)
- ----------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 93,953,051 126,181,502
End of Period 82,633,269 93,953,051
Undistributed investment income--net 347,667 126,701
</TABLE>
See notes to financial statements.
The Fund 13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Capital Share Transactions:
Class A
Shares sold 1,216,235 3,605,498
Shares issued for dividends reinvested 4,348 607,518
Shares redeemed (1,330,771) (4,676,922)
Net Increase (Decrease) in Shares Outstanding (110,188) (463,906)
- -------------------------------------------------------------------------------------------
Class B
Shares sold 281,006 377,290
Shares issued for dividends reinvested -- 702,800
Shares redeemed (1,480,032) (1,208,591)
Net Increase (Decrease) in Shares Outstanding (1,199,026) (128,501)
- -------------------------------------------------------------------------------------------
Class C
Shares sold 141,297 20,307
Shares issued for dividends reinvested -- 2,212
Shares redeemed (141,238) (9,478)
Net Increase (Decrease) in Shares Outstanding 59 13,041
- --------------------------------------------------------------------------------------------
Class R
Shares sold 2,280 3,028
Shares issued for dividends reinvested 22 919
Shares redeemed (814) (5,407)
Net Increase (Decrease) in Shares Outstanding 1,488 (1,460)
</TABLE>
See notes to financial statements.
14
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single Fund share. Total return shows how much your investment in the Fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been derived from the Fund's
financial statements.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Six Months
Ended
April 30,
1999 Year Ended October 31,
--------------------------------------------
Class A Shares (Unaudited) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning
of period 13.33 16.45 16.59 16.10 15.78 15.58
Investment Operations:
Investment income--net .08 .26 .00 a .14 .24 .15
Net realized and unrealized
gain (loss) on investments .94 (.86) 2.24 1.44 .47 .71
Total from Investment Operations 1.02 (.60) 2.24 1.58 .71 .86
Distributions:
Dividends from investment
income--net (.02) -- (.17) (.25) (.15) (.08)
Dividends from net realized
gain on investments -- (2.52) (2.21) (.84) (.24) (.58)
Total Distributions (.02) (2.52) (2.38) (1.09) (.39) (.66)
Net asset value, end of period 14.33 13.33 16.45 16.59 16.10 15.78
- ------------------------------------------------------------------------------------------
Total Return (%) b 7.67 c (4.50) 15.00 10.21 4.72 5.62
- ------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of operating expenses to
average net assets .70 c 1.27 1.30 1.31 1.31 1.38
Ratio of interest expense to
average net assets -- .08 -- -- .01 .01
Ratio of net investment income
to average net assets .55 c .55 .00 d .76 1.38 .95
Portfolio Turnover Rate 139.34 c 193.76 161.62 176.17 229.90 156.98
- ------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 43,202 41,637 59,030 66,907 68,584 79,017
</TABLE>
a Amount represents less than $.01 per share.
b Exclusive of sales load.
c Not annualized.
d Amount represents less than .01%.
See notes to financial statements.
The Fund 15
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Six Months
Ended
April 30,
1999 Year Ended October 31,
--------------------------------------------
Class B Shares (Unaudited) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning
of period 13.00 16.22 16.37 15.90 15.59 15.49
Investment Operations:
Investment income--net .01 (.03)a (.14) .00 b .10 .06
Net realized and unrealized
gain (loss) on investments .94 (.67) 2.24 1.44 .49 .67
Total from Investment Operations .95 (.70) 2.10 1.44 .59 .73
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 13.95 13.00 16.22 16.37 15.90 15.59
- ------------------------------------------------------------------------------------------
Total Return (%) c 7.22 d (5.22) 14.14 9.36 3.96 4.82
- ------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of operating expenses to
average net assets 1.07 d 2.04 2.05 2.06 2.06 2.15
Ratio of interest expense to
average net assets -- .08 -- -- .01 --
Ratio of net investment income
to average net assets .11 d (.20) (.76) .01 .62 .23
Portfolio Turnover Rate 139.34 d 193.76 161.62 176.17 229.90 156.98
- ------------------------------------------------------------------------------------------
Net Assets, end of period
($ X 1,000) 38,934 51,873 66,781 71,983 72,215 76,897
</TABLE>
a Based on average shares outstanding at each month end.
b Amounts represents less than $.01 per share.
c Exclusive of sales load.
d Not annualized.
See notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Six Months
Ended
April 30,
1999 Year Ended October 31,
---------------------------------
Class C Shares (Unaudited) 1998 1997 1996 1995 a
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------
Per Share Data ($):
Net asset value, beginning of period 12.66 15.87 16.20 15.90 15.85
Investment Operations:
Investment income--net .02 (.03)b (.12)b .28 (.01)
Net realized and unrealized gain (loss)
on investments .90 (.66) 2.18 1.14 .06
Total from Investment Operations .92 (.69) 2.06 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 13.58 12.66 15.87 16.20 15.90
- -------------------------------------------------------------------------------------------
Total Return (%) c 7.27d (5.34) 14.17 9.36 .32d
- -------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of operating expenses to average
net assets 1.08d 2.04 2.10 1.90 .35d
Ratio of interest expense to average
net assets -- .08 .01 -- --
Ratio of net investment income
to average net assets .15d (.19) (.73) (.19) (.09)d
Portfolio Turnover Rate 139.34d 193.76 161.62 176.17 229.90
- -------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 427 397 291 53 1
<FN>
a From September 5, 1995 (commencement of initial offering) to October 31, 1995.
b Based on average shares outstanding at each month end.
c Exclusive of sales load.
d Not annualized.
See notes to financial statements.
</FN>
</TABLE>
The Fund 17
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Six Months
Ended
April 30,
1999 Year Ended October 31,
---------------------------------
Class R Shares (Unaudited) 1998 1997 1996 1995 a
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 13.32 16.43 16.59 16.11 16.04
Investment Operations:
Investment income--net .09 .33 .17 .26 .01
Net realized and unrealized gain (loss)
on investments .95 (.92) 2.10 1.35 .06
Total from Investment Operations 1.04 (.59) 2.27 1.61 .07
Distributions:
Dividends from investment income--net (.06) -- (.22) (.29) --
Dividends from net realized gain
on investments -- (2.52) (2.21) (.84) --
Total Distributions (.06) (2.52) (2.43) (1.13) --
Net asset value, end of period 14.30 13.32 16.43 16.59 16.11
- -------------------------------------------------------------------------------------------
Total Return (%) 7.84b (4.44) 15.21 10.45 .44b
- -------------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of operating expenses to average
net assets .63b 1.08 1.09 .87 .18b
Ratio of interest expense to average
net assets -- .08 .01 -- --
Ratio of net investment income
to average net assets .62b .70 .21 .94 .08b
Portfolio Turnover Rate 139.34b 193.76 161.62 176.17 229.90
- -------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 70 45 80 4 1
<FN>
a From September 5, 1995 (commencement of initial offering) to October 31, 1995.
b Not annualized.
See notes to financial statements.
</FN>
</TABLE>
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier International Growth Fund (the "Fund") is a separate
non-diversified portfolio of Dreyfus Premier International Funds, Inc. (the
"Company") which is registered under the Investment Company Act of 1940, as
amended (the "Act") as an open-end management investment company and operates as
a series company currently offering four series including the Fund. The Fund's
investment objective is to maximize capital growth. The Dreyfus Corporation
("Dreyfus") serves as the Fund's investment adviser. Dreyfus 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 shares of $.001 par
value Common Stock in each of the following classes 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 Company accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
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
The Fund 19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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. Under the terms of the custody agreement, the Fund receives net
earnings credits based on available cash balances left on deposit.
20
<PAGE>
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the Fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $4,799,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1998. If not
applied, the carryover expires in fiscal 2006.
NOTE 2--Bank Line of Credit:
In accordance with an agreement with a bank, the Fund may borrow up to $10
million under a short-term unsecured line of credit. Interest on borrowings is
charged at rates which are related to Federal Funds rate in effect from time to
time. During the period ended April 30, 1999, there were no outstanding
borrowings.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with Dreyfus, 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 Dreyfus, retained
$16,102 during the period ended April 30, 1999 from commissions earned on sales
of the Fund's shares.
The Fund 21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares. During the period ended April 30,
1999, Class B and Class C shares were charged $178,454 and $1,783, respectively,
pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the Distributor at an annual rate of .25 of 1% of the value of their average
daily net assets 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, 1999, Class A, Class B and Class C
shares were charged $52,559, $59,485 and $594, respectively, pursuant to the
Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended April 30, 1999, the Fund was charged $34,081 pursuant to the transfer
agency agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company 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.
22
<PAGE>
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, 1999, amounted to $123,853,400 and $143,359,288,
respectively.
The Fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings. When executing forward currency exchange contracts, the Fund is
obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The Fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the Fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The Fund realizes a gain if the value of the
contract increases between those dates. The Fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract. At April 30,1999, there were no open forward currency exchange
contracts.
(b) At April 30, 1999, accumulated net unrealized appreciation on investments
was $8,120,232, consisting of $11,192,437 gross unrealized appreciation and
$3,072,205 gross unrealized depreciation.
At April 30, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund 23
<PAGE>
NOTES
24
<PAGE>
The Fund 25
<PAGE>
For More Information
Dreyfus Premier International
Growth Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call your financial
representative or
1-800-554-4611
By mail Write to:
The Dreyfus Premier
Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
(C) 1999 Dreyfus Service Corporation 092/633SA994
Dreyfus Premier
Greater China
Fund
SEMIANNUAL REPORT
April 30, 1999
<PAGE>
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could
have an impact on the value of the fund's investments and its share price.
<PAGE>
Contents
THE FUND
- --------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
8 Statement of Assets and Liabilities
9 Statement of Operations
10 Statement of Changes in Net Assets
12 Financial Highlights
16 Notes to Financial Statements
FOR MORE INFORMATION
- --------------------------
Back Cover
<PAGE>
Dreyfus Premier The Fund
Greater China Fund
LETTER FROM THE PRESIDENT
- -------------------------
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Greater
China Fund, covering the six-month period from November 1, 1998 through April
30, 1999. Inside, you'll find valuable information about how the Fund was
managed during the reporting period, including a discussion with the Fund's
portfolio manager, Mandy Tong.
Many regional economies showed marked improvement after many of the world's
central banks lowered key short-term interest rates to stimulate economic
growth. Less restrictive monetary policies especially helped prevent further
economic deterioration in Japan, Asia, Latin America and Eastern Europe, where
the worst of the global currency and credit crisis appears to be behind us. In
contrast, some Western European economies slowed moderately after the
formation of European Monetary Union (EMU) and the debut of a new currency,
the euro.
These economic conditions produced mixed results for international stocks.
Stock markets in Japan, Asia and Latin America began to recover over the past
six months, showing their first signs of real strength in over a year.
European markets, on the other hand, provided disparate performance. For
example, while Spain and the United Kingdom experienced higher stock prices on
average, others, such as Germany, declined.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Greater China Fund.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
- ------------------------------
Mandy Tong, Portfolio Manager
How did Dreyfus Premier Greater China Fund
perform during the period?
For the six-month period ended April 30, 1999, the Fund produced a total
return of 2.41% for Class A shares, 2.06% for Class B shares, 2.06% for Class
C shares and 2.60% for Class R shares.1 Because the concept of investing in
the Greater China region is relatively new, there is no commonly accepted
benchmark index. However, over the period, the performance of the individual
Greater China markets was mixed. In the People's Republic of China, the
Shanghai B Index fell 19.02%,2 while the Taiwan Weighted Index rose 2.86%.3 In
Hong Kong, the Hang Seng Index rose 31.30%.4
We attribute the Fund's performance to our cautious investment approach during
last year's Asian financial crisis. We maintained a relatively high level of
cash during the period. This strategy served us well during periods of sharp
decline. However, we did not participate fully when selected markets,
particularly the market for large international companies in Hong Kong,
recently advanced strongly.
What is the Fund's investment approach?
The Fund seeks long-term capital appreciation by investing in the Greater
China region: Hong Kong, China and Taiwan. The Fund's investment approach is
based on fundamental research of individual companies as well as a country's
overall economic health.
We look for rapidly growing companies whose stock prices appear reasonable.
Characteristics of such companies include high-quality management, strong and
consistent free cash flow, sound business fundamentals and long-term vision.
Generally, the companies in which we invest are leaders in their respective
industries and have strong brand recognition.
We also look at the respective strengths of individual markets. In Hong Kong,
which is primarily a service-based economy, we have focused on financial
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
service companies, property owners and managers, and conglomerates. Taiwan
retains technological leadership and has a strong reputation for product
reliability. In China, our investment focus has been on industry leaders and
companies that will benefit from China's ongoing transition to a market-based
economy, including such areas as home ownership.
What other factors influenced the Fund's performance?
Over the six-month reporting period, the Asian markets appear to have found a
bottom, and most Asian economies appear to be on their way to recovery.
However, the pace of economic growth in Greater China differs significantly
among individual markets and industries. The strength of the region as a whole
remains susceptible to external factors, such as continued growth in the
United States and Japan, as well as to fluctuations in currency exchange
rates.
The larger, better known regional companies have been the main beneficiaries
as foreign investors have returned to the region. The Fund has done well with
holdings such as HSBC Holdings, a global banking company with a dominant
presence in Hong Kong, a strong presence throughout Asia and with significant
operations in both Europe and North America. Electronic and technology
holdings in Taiwan also boosted fund performance, with Taiwan Semiconductor
Manufacturing, Asustek Computer and Advanced Semiconductor Engineering up
approximately 64%, 37% and 53% respectively.
What is the Fund's current strategy?
As of April 30, 56.9% of the portfolio's assets were invested in Hong Kong,
where the economy appears to have bottomed, public confidence seems to have
improved, interest rates have declined and property prices have risen. Banks,
property companies and conglomerates have been our preferred sectors. However,
now that interest rates have declined, we have begun switching to cyclicals.
4
<PAGE>
6.6% of assets were invested in China, with a focus on industry leaders,
companies positioned to prosper in international trade, as well as companies
positioned to take advantage of the increasing affluence among urban
populations and the emerging population of home owners. Such companies include
Guangdong Kelon Electric, a leading refrigerator manufacturer, and food
distributor Ng Fung Hong, the dominant supplier of basic goods from China to
Hong Kong. 25.3% of the portfolio's assets were invested in Taiwan, where
emphasis remained on stocks that we believe will benefit from broad economic
improvement, including companies such as China Steel, Far Eastern Textile and
Formosa Chemicals & Fibre.
May 13, 1999
1 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.
Had these charges been reflected, returns would have been lower.
2 SOURCE: BLOOMBERG L.P. -- The Shanghai B-Share Stock Price Index is a
capitalization-weighted index. The index tracks the daily price performance
of all shares listed on the Shanghai Stock Exchange that are available for
investment by foreign investors. The index is priced in US$.
3 SOURCE: BLOOMBERG L.P. -- The TWSE Index is a capitalization-weighted
index of all listed common shares traded on the Taiwan Stock Exchange.
4 SOURCE: BLOOMBERG L.P. -- The Hang Seng Index is a capitalization-
weighted index approximately 70 percent of the total market capitalization
of the Stock Exchange of Hong Kong. The components of the index are
divided into 4 subindexes: Commerce, Finance, Utilities, and Properities..
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Common Stocks--88.8% Shares Value ($)
- ------------------------------------------------------------------------------
<S> <C> <C>
China--6.6%
Guangdong Kelon Electric 70,000 63,219
Shanghai Zhenhua Port Machinery 123,000 27,552
Zhejiang Expressway 352,000 58,585
149,356
Hong Kong--56.9%
Beijing Enterprises Holdings 12,000 19,817
CLP Holdings 6,000 32,203
Cheung Kong 10,000 90,958
Cheung Kong Infrastructure 27,000 56,433
China Merchants Holdings International 28,000 19,688
China Pharmaceutical Enterprise & Investment 168,000 30,129
China Resources Enterprise 32,000 53,878
China Telecom 18,000 a 41,105
Citic Pacific 9,000 24,385
Dah Sing Financial Group 6,000 18,927
Dao Heng Bank Group 4,500 18,288
Esprit Holdings 44,000 26,113
FPB Bank Holding Company 57,000 13,752
Giordano International 74,000 34,371
Globe Tech 62,000 a 14,319
HKR International 26,000 19,288
HSBC Holdings 1,600 59,452
Hang Lung Development 18,000 23,223
Hang Seng Bank 4,000 47,350
Hengan International 160,000 a 53,672
Hong Kong and China Gas 31,000 43,596
Hong Kong Telecommunications 7,600 20,444
Hutchison Whampoa 10,000 89,668
Hysan Development 5,000 7,709
Johnson Electric Holdings 11,000 32,855
Legend Holdings 62,000 31,997
Midland Realty Holdings 94,000 19,283
Moulin International Holding 346,000 40,623
New World Development 3,000 7,432
Ng Fung Hong 60,000 58,059
Shanghai Industrial Holdings 20,000 44,383
Sun Hung Kai Properties 11,000 96,506
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- ------------------------------------------------------------------------------
<S> <C> <C>
Hong Kong (continued)
Swire Pacific 11,000 61,736
Vitasoy International Holdings 84,500 30,525
1,282,167
Taiwan--25.3%
Advanced Semiconductor Engineering 21,000 a 52,339
Asustek Computer 5,504 a 57,565
Bank Sinopac 12,000 a 8,440
CTCI 23,000 a 29,119
Cathay Life Insurance 11,000 39,358
China Steel 51,000 40,550
Chinatrust Commercial Bank 8,000 a 6,997
Compal Electronics 18,022 a 62,278
Far Eastern Textile 21,000 28,193
Formosa Chemicals & Fibre 22,000 a 26,104
Fortune Electric 23,000 a 31,089
Nan Ya Plastic 30,000 a 47,706
Nien Hsing Textile 15,000 a 29,587
Pacific Electrical Wire & Cable 36,000 a 24,881
Taiwan Semiconductor Manufacturing 25,800 a 87,184
571,390
Total Common Stocks
(cost $1,781,607) 2,002,913
- ------------------------------------------------------------------------------
Total Investments (cost $1,781,607) 88.8% 2,002,913
Cash and Receivables (Net) 11.2% 253,150
Net Assets 100.0% 2,256,063
<FN>
a Non-income producing.
See notes to financial statements.
</FN>
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Cost Value
- ------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--See Statement of Investments 1,781,607 2,002,913
Cash 106,177
Cash denominated in foreign currencies 74,902 74,777
Receivable for investment securities sold 9,439
Dividends receivable 2,651
Prepaid expenses 109,213
Due from The Dreyfus Corporation 15,903
2,321,073
- ------------------------------------------------------------------------------
Liabilities ($):
Due to Distributor 722
Payable for investment securities purchased 45,182
Accrued expenses 19,106
65,010
- ------------------------------------------------------------------------------
Net Assets ($) 2,256,063
- ------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 2,177,506
Accumulated distributions in excess of investment income (3,905)
Accumulated net realized gain (loss) on investments and
foreign currency transactions (138,801)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 221,263
- ------------------------------------------------------------------------------
Net Assets ($) 2,256,063
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Class B Class C Class R
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 1,493,757 231,837 320,623 290,846
Shares Outstanding 115,301 17,964 24,879 16,176
- ------------------------------------------------------------------------------
Net Asset Value Per Share ($) 12.96 12.91 12.89 12.97
<FN>
See notes to financial statements.
</FN>
</TABLE>
8
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Investment Income ($)
- ------------------------------------------------------------------------------
<S> <C> <C>
Income:
Interest 12,396
Cash dividends 8,218
Total Income 20,614
Expenses:
Investment advisory fee--Note 3(a) 12,706
Registration fees 50,301
Custodian fees 23,175
Organization expenses 5,410
Prospectus and shareholders' reports 4,714
Auditing fees 2,500
Shareholder servicing costs--Note 3(c) 2,369
Distribution fees--Note 3(b) 1,832
Directors' fees and expenses--Note 3(d) 492
Legal fees 487
Miscellaneous 956
Total Expenses 104,942
Less--expense reimbursement from Dreyfus due to
undertaking--Note 3(a) (80,477)
Net Expenses 24,465
Investment (Loss) (3,851)
- ------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 4:
Net realized gain (loss) on investments and foreign currency
transactions (112,607)
Net realized gain (loss) on forward currency exchange contracts 10
Net Realized Gain (Loss) (112,597)
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 169,500
Net Realized and Unrealized Gain (Loss) on Investments 56,903
Net Increase in Net Assets Resulting from Operations 53,052
<FN>
See notes to financial statements.
</FN>
</TABLE>
The Fund 9
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998*
- ------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income (loss)--net (3,851) 19,322
Net realized gain (loss) on investments (112,597) (26,204)
Net unrealized appreciation (depreciation)
on investments 169,500 51,763
Net Increase (Decrease) in Net Assets
Resulting from Operations 53,052 44,881
- ------------------------------------------------------------------------------
Dividends to Shareholders From ($):
Investment income--net:
Class A shares (13,561) --
Class B shares (1,375) --
Class C shares (2,296) --
Class R shares (2,144) --
Total Dividends (19,376) --
- ------------------------------------------------------------------------------
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A shares 17,811 1,413,371
Class B shares -- 222,500
Class C shares 110,185 200,000
Class R shares -- 200,000
Dividends reinvested:
Class A shares 13,561
Class B shares 1,375
Class C shares 2,296
Class R shares 2,144
Cost of shares redeemed:
Class A shares (3,048) (2,689)
Increase (Decrease) in Net Assets from
Capital Stock Transactions 144,324 2,033,182
Total Increase (Decrease) in Net Assets 178,000 2,078,063
- ------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 2,078,063 --
End of Period 2,256,063 2,078,063
Undistributed investment income (Distribution
in excess of investment income)--net (3,905) 19,322
<FN>
* From May 12, 1998 (commencement of operations) to Octover 31, 1998.
See notes to financial statements.
</FN>
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998*
- ------------------------------------------------------------------------------
<S> <C> <C>
Capital Share Transactions:
Class A
Shares sold 1,583 113,093
Shares issued for dividends reinvested 1,112 --
Shares redeemed (257) (230)
Net Increase (Decrease) in Shares Outstanding 2,438 112,863
- ------------------------------------------------------------------------------
Class B
Shares sold -- 17,851
Shares issued for dividends reinvested 113 --
Net Increase (Decrease) in Shares Outstanding 113 17,851
- ------------------------------------------------------------------------------
Class C
Shares sold 8,690 16,000
Shares issued for dividends reinvested 189 --
Net Increase (Decrease) in Shares Outstanding 8,879 16,000
- ------------------------------------------------------------------------------
Class R
Shares sold -- 16,000
Shares issued for dividends reinvested 176 --
Net Increase (Decrease) in Shares Outstanding 176 16,000
<FN>
*From May 12, 1998 (commencement of operations) to October 31, 1998.
See notes to financial statements.
</FN>
</TABLE>
The Fund 11
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single Fund share. "Total return" shows how much your investment in the Fund
would have increased (or decreased) during each period, assuming you had
reinvested all dividends and distributions. These figures have been derived
from the Fund's financial statements.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class A Shares (Unaudited) October 31, 1998a
- ----------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 12.78 12.50
Investment Operations:
Investment income--net (.01) .13
Net realized and unrealized gain (loss)
on investments .31 .15
Total from Investment Operations .30 .28
Distributions:
Dividends from investment income--net (.12) --
Net asset value, end of period 12.96 12.78
- ----------------------------------------------------------------------------------
Total Return (%)b,c 2.41 2.24
- ----------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsb 1.11 1.08
Ratio of net investment income to
average net assetsb (.10) 1.04
Decrease reflected in above expense
ratio due to undertakings by Dreyfusb 3.93 2.75
Portfolio Turnover Rateb 31.29 10.65
- ----------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,494 1,442
<FN>
a From May 12, 1998 (commencement of operations) to October 31, 1998.
b Not annualized.
c Exclusive of sales load.
See notes to financial statements.
</FN>
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class B Shares (Unaudited) October 31, 1998a
- ------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 12.73 12.50
Investment Operations:
Investment income--net (.06) .08
Net realized and unrealized gain (loss) on investments .32 .15
Total from Investment Operations .26 .23
Distributions:
Dividends from investment income--net (.08) --
Net asset value, end of period 12.91 12.73
- ------------------------------------------------------------------------------------
Total Return (%)b,c 2.06 1.84
- ------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsb 1.49 1.44
Ratio of net investment income to average net assetsb (.48) .69
Decrease reflected in above expense ratio due to
undertakings by Dreyfusb 3.93 2.75
Portfolio Turnover Rateb 31.29 10.65
- ------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 232 227
<FN>
a From May 12, 1998 (commencement of operations) to October 31, 1998.
b Not annualized.
c Exclusive of sales load.
See notes to financial statements.
</FN>
</TABLE>
The Fund 13
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class C Shares (Unaudited) October 31, 1998a
- ----------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 12.73 12.50
Investment Operations:
Investment income--net (.08) .08
Net realized and unrealized gain (loss) on investments .34 .15
Total from Investment Operations .26 .23
Distributions:
Dividends from investment income--net (.10) --
Net asset value, end of period 12.89 12.73
- ------------------------------------------------------------------------------------
Total Return (%)b,c 2.06 1.84
- ------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsb 1.49 1.43
Ratio of net investment income to average net assetsb (.51) .68
Decrease reflected in above expense ratio due to
undertakings by Dreyfusb 3.93 2.75
Portfolio Turnover Rateb 31.29 10.65
- ------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 321 204
<FN>
a From May 12, 1998 (commencement of operations) to October 31, 1998.
b Not annualized.
c Exclusive of sales load.
See notes to financial statements.
</FN>
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class R Shares (Unaudited) October 31, 1998a
- -----------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 12.79 12.50
Investment Operations:
Investment income--net -- .14
Net realized and unrealized gain (loss) on investments .31 .15
Total from Investment Operations .31 .29
Distributions:
Dividends from investment income--net (.13) --
Net asset value, end of period 12.97 12.79
- ------------------------------------------------------------------------------------
Total Return (%)b 2.60 2.32
- ------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsb .99 .96
Ratio of net investment income to average net assetsb .02 1.16
Decrease reflected in above expense ratio due to
undertakings by Dreyfusb 3.93 2.75
Portfolio Turnover Rateb 31.29 10.65
- ------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 210 205
<FN>
a From May 12, 1998 (commencement of operations) to October 31, 1998.
b Not annualized.
See notes to financial statements.
</FN>
</TABLE>
The Fund 15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Greater China Fund (the "Fund") is a separate non-diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which
is registered under the Investment Company Act of 1940, as amended (the
"Act"), as an open-end management investment company and operates as a series
company currently offering four series including the Fund. The Fund's
investment objective is long-term capital appreciation. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a
direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of
Mellon Bank Corporation. Hamon U.S. Investment Advisors Limited ("Hamon")
serves as the Fund's sub-investment adviser. Hamon is an affiliate 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 200 million shares of $.001
par value Common Stock in each of the following classes 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.
As of April 30, 1999, MBC Investments Corp., an indirect subsidiary of Mellon
Bank Corporation, held the following shares:
Class A .....................113,103 Class C ........................ 16,126
Class B ......................16,101 Class R ........................ 16,176
The Company accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
16
<PAGE>
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.
The Fund 17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(c) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the Fund received net
earnings credits of $379 during the period ended April 30, 1999 based on
available cash balances left on deposit. Income earned under this arrangement
is included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain, if any, are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, if such qualification is in the best
interests of its shareholders, by complying with the applicable provisions of
the Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $23,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1998. If not
applied, the carryover expires in fiscal 2006.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the
time of borrowings. During the period ended April 30, 1999, the Fund did not
borrow under the line of credit.
18
<PAGE>
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of 1.25% of the value of the
Fund's average daily net assets and is payable monthly. Dreyfus has undertaken
from November 1, 1998 through October 31, 1999 to reduce the management fee
paid by or reimburse such excess expenses of the Fund, to the extent that the
Fund's aggregate expenses, excluding 12b-1 distribution fees, services plan
fees, taxes, brokerage, commitment fees, interest on borrowings and
extraordinary expenses, exceed an annual rate of 2% of the value of the Fund's
average daily net assets. The expense reimbursement, pursuant to the
undertaking, amounted to $80,477 during the period ended April 30, 1999.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Hamon,
Dreyfus pays Hamon a fee at the annual rate of .625 of 1% of the value of the
Fund's average daily net assets and is payable monthly.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares. During the period ended April 30,
1999, Class B and Class C shares were charged $793 and $1,039, respectively,
pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor at an annual rate of .25 of 1% of the value of their
average daily net assets 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
The Fund 19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Agents. During the period ended April 30, 1999, Class A, Class B and Class C
shares were charged $1,692, $265 and $346, respectively, pursuant to the
Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended April 30, 1999, the Fund was charged $56 pursuant to the transfer agency
agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company 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.
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, 1999, amounted to $1,454,835 and $447,857,
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 and to settle foreign currency transactions. 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
20
<PAGE>
nonperformance on these forward currency exchange contracts which is typically
limited to the unrealized gain on each open contract. At April 30, 1999, there
were no open forward currency exchange contracts.
(b) At April 30, 1999, accumulated net unrealized appreciation on investments
was $221,306, consisting of $288,970 gross unrealized appreciation and $67,664
gross unrealized depreciation.
At April 30, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund 21
<PAGE>
For More Information
Dreyfus Premier
Greater China Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Hamon U.S. Investment-Advisors Ltd.
2903-5 Alexandra House
16-20 Chater Road
Hong Kong
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call your financial
representative or
1-800-554-4611
By mail Write to:
The Dreyfus Premier
Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
(c) 1999 Dreyfus Service Corporation 130/170SA994
Dreyfus
Premier European
Equity Fund
SEMIANNUAL REPORT
April 30, 1999
<PAGE>
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
CONTENTS
The Fund
---------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
13 Financial Highlights
14 Notes to Financial Statements
For More Information
--------------------
Back Cover
<PAGE>
The Fund
Dreyfus Premier
European Equity Fund
Letter From The President
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier European
Equity Fund, covering the period beginning at its December 10, 1998 inception
and ended April 30, 1999. Inside, you'll find valuable information about how the
Fund was managed during the reporting period, including a discussion with the
Fund's Sub-Investment Adviser, Newton Capital Management Limited.
Many regional economies showed marked improvement after many of the world's
central banks lowered key short-term interest rates to stimulate economic
growth. Less restrictive monetary policies especially helped prevent further
economic deterioration in Japan, Asia, Latin America and Eastern Europe, where
the worst of the global currency and credit crisis appears to be behind us. In
contrast, some Western European economies slowed moderately after the formation
of the European Monetary Union (EMU) and the debut of a new currency, the euro.
These economic conditions produced mixed results for international stocks. Stock
markets in Japan and Asia began to recover over the past six months, showing
their first signs of real strength in over a year. European markets, on the
other hand, provided disparate performance. For example, while Spain and the
United Kingdom experienced higher stock prices on average, others, such as
Germany, declined. Latin America provided lackluster results amid continued
concerns about Brazil.
We appreciate your confidence and we look forward to your continued
participation in Dreyfus Premier European Equity Fund.
Sincerely,
/s/ Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Newton Capital Management Limited, Sub-Investment Adviser
How did Dreyfus Premier European Equity Fund perform
during the period?
The Fund produced a total return of 11.36% for Class A shares, 11.04% for Class
B shares, 11.04% for Class C shares and 11.44% for Class R shares for the period
beginning at its December 10, 1998 inception and ended April 30, 1999. 1
We attribute the Fund's positive performance to decisions made on sector
allocation as well as individual security selection. Over the period, we
emphasized investment in the telecommunications and consumer services sectors,
both of which produced above-average performance.
What is the Fund's investment approach?
At a strategic level, we begin by identifying broad social, political and
economic themes that are driving change. Current examples include the
telecommunications revolution, and the unification and economic integration of
Europe. We use these themes to guide us in determining how we concentrate our
investment in specific market sectors. Inside those sectors, we choose
individual securities from a starting universe of Europe's 300 largest
companies. Taking a broad view, we compare a company's valuation to that of
similar stocks in its home market, to companies in other European markets and to
its international competitors. In this strategic approach, we are not
constrained by either the classic growth or value styles -- we buy growth at a
price we determine to be appropriate, based on our local, international and
global analysis. We typically sell securities when themes or strategies change,
when an individual company's prospects have changed or when we believe a
company's stock is fully valued by the market.
A current example of such an investment theme is the telecommunications
revolution. Rapid technological change, deregulation and removal of restriction
of foreign ownership are fueling a significant increase in
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
demand for both telecommunications services and telecommunications equipment. We
believe this increase in demand presents the opportunity for
greater-than-average revenue and profit growth for companies in this sector, and
this is a market sector we have emphasized. We have purchased stocks of what we
believe to be attractively valued service providers, such as Telecom Italia
(Italy) and Vodafone group (United Kingdom), and equipment manufacturers,
including Mannesmann (Germany) and Telefonaktiebolaget LM Ericsson (Sweden).
What other factors influenced the Fund's performance?
We were cautiously positioned during the period, against an economic and
financial background of relatively sluggish growth and low inflation, but
optimistic for corporate earnings. Reflecting our view that consumer goods and
services would remain the bedrock of European growth, we were generally
overweighted in the retail, telecommunications, services and building materials
sectors. We were neutral in pharmaceuticals, and underweighted in financials,
oils, industrials, utilities, autos and food & drink.
Naturally, we adjust positions over time in response to changes in current
trends as well as in anticipation of future trends. While we have kept an
emphasis in the telecommunications and services sectors, we have sold some of
our holdings as prices rose. We've also continued to de-emphasize investment in
the financial and industrial sectors, yet we increased our exposure as European
economies stabilized and found value in specific cyclical stocks.
What is the Fund's current strategy?
Uncertainties regarding the rate of European economic growth, reflected in a
relatively weak debut for the euro, are offset by the pace of corporate change
and the investment opportunities that arise as a result. On this basis the
argument for investment in European companies remains compelling.
4
<PAGE>
In the retail sector, a generally underdeveloped and fragmented market matched
against consumers increasingly integrated in demand and positive in outlook has
produced growth in market share and earnings for consumer retailers with strong
marketing formats. In the services sector, pressure on corporations to
rationalize as they compete more directly in global markets is leading European
companies to outsourcing. An increased demand for outsourced services such as
security, cleaning and parking has led to increased market share and earnings
growth for leading providers. Our outsourcing service investments included
Rentokil Initial (United Kingdom), and Apcoa Parking (Germany).
May 13, 1999
1 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.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Common Stocks--96.3% Shares Value ($)
- --------------------------------------------------------------------------------
France--20.4%
Axa 480 62,111
Equant 660 a 60,033
Lafarge 590 57,477
Rexel 540 44,886
Rhone-Poulenc 1,250 59,563
Societe Generale, Cl. A 405 72,648
Total, Cl. B 700 96,064
Usinor 4,200 65,110
Vivendi 240 56,190
574,082
Germany--13.0%
Apcoa Parking 590 44,357
Bayerische Motoren Werke 100 71,794
Hoechst 1,300 61,739
Linde 130 80,529
Mannesmann 520 68,608
Zapf Creation 1,900 a 40,641
367,668
Italy--4.9%
Telecom Italia 9,100 96,505
Unicem 3,720 40,573
137,078
Netherlands--6.0%
Fortis 1,400 49,959
ING Groep 920 56,795
KSI International 6,590 a 41,868
TNT Post 800 21,602
170,224
Portugal--.8%
Ibersol 270 21,554
Spain--5.3%
Argentaria 2,080 49,028
Funespana 2,130 a 38,568
Telefonica 1,275 59,877
Telefonica (Rights) 1,275 a 1,188
148,661
6
<PAGE>
- --------------------------------------------------------------------------------
Common Stocks--(continued) Shares Value ($)
- --------------------------------------------------------------------------------
Sweden--7.3%
Skandia Forsakrings 3,470 67,257
Telefonaktiebolaget LM Ericsson 2,680 70,588
Volvo, Cl. B 2,600 68,789
206,634
Switzerland--2.7%
UBS 220 74,776
United Kingdom--35.9%
Barclays 1,770 56,218
Berkeley 3,700 44,114
Billiton 16,800 57,036
Bodycote International 4,300 66,765
CGU 2,650 41,850
Glaxo Wellcome 2,300 68,019
Granada 3,100 66,239
Great Universal Stores 4,700 53,957
National Westminster Bank 2,840 68,406
Northern Rock 4,600 43,668
Prudential 3,550 50,637
Reed International 6,200 56,413
Rentokil Initial 9,700 57,084
Reuters 3,700 50,127
Shell Transport & Trading 12,200 91,377
Stagecoach Holdings 14,600 49,273
Standard Chartered 1,900 34,362
Vodafone Group 3,100 57,112
1,012,657
Total Common Stocks
(cost $2,486,832) 2,713,334
- --------------------------------------------------------------------------------
Preferred Stocks--4.7% Shares Value ($)
- --------------------------------------------------------------------------------
Germany--3.5%
Fielmann 1,140 44,664
Fresenius 310 54,163
98,827
Portugal--1.2%
Lusomundo 3,360 a 33,800
The Fund 7
<PAGE>
- --------------------------------------------------------------------------------
Preferred Stocks (continued) Shares Value (4)
- --------------------------------------------------------------------------------
Total Preferred Stocks
(cost $158,248) 132,627
- --------------------------------------------------------------------------------
Total Investments (cost $2,645,080) 101.0% 2,845,961
Liabilities, Less Cash and Receivables (1.0%) (28,644)
Net Assets 100.0% 2,817,317
a Non-income producing.
See notes to financial statements.
8
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Cost Value
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--See Statement of Investments 2,645,080 2,845,961
Cash denominated in foreign currencies 23 23
Receivable for investment securities sold 112,808
Prepaid expenses 29,847
Dividends receivable 13,585
Due from The Dreyfus Corporation 882
3,003,106
- ------------------------------------------------------------------------------------------
Liabilities ($):
Due to Distributor 1,130
Cash overdraft due to Custodian 102,330
Payable for investment securities purchased 18,042
Accrued expenses and other liabilities 64,287
185,789
- ------------------------------------------------------------------------------------------
Net Assets ($) 2,817,317
- ------------------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 2,534,659
Accumulated investment (loss) (3,641)
Accumulated net realized gain (loss) on investments and
foreign currency transactions 85,589
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 200,710
- ------------------------------------------------------------------------------------------
Net Assets ($) 2,817,317
</TABLE>
- --------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Class B Class C Class R
- --------------------------------------------------------------------------------
Net Assets ($) 1,140,811 555,193 556,197 565,116
Shares Outstanding 81,954 40,000 40,072 40,557
- --------------------------------------------------------------------------------
Net Asset Value Per Share ($) 13.92 13.88 13.88 13.93
See notes to financial statements.
The Fund 9
<PAGE>
STATEMENT OF OPERATIONS
from December 10, 1998 (commencement of operations)
to April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Investment Income ($)
- --------------------------------------------------------------------------------
Income:
Cash dividends (net of $2,600 foreign taxes withheld at source) 19,413
Interest 2,838
Total Income 22,251
Expenses:
Investment advisory fee--Note 3(a) 9,331
Registration fees 24,857
Auditing fees 10,909
Custodian fees 7,395
Distribution fees--Note 3(b) 3,086
Shareholder servicing costs--Note 3() 2,195
Prospectus and shareholders' reports 1,971
Legal fees 811
Director's fees and expenses--Note 3d) 296
Miscellaneous 2,693
Total Expenses 63,544
Less-expense reimbursement from the Manager due to
undertaking--Note 3(a) (37,652)
Net Expenses 25,892
Investment (Loss) (3,641)
- --------------------------------------------------------------------------------
Realized And Unrealized Gain (Loss) On Investments--Note 4:
Net realized gain (loss) on investments and
foreign currency transactions 109,904
Net realized gain (loss) on forward currency
exchange contracts (24,315)
Net Realized Gain (Loss) 85,589
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 200,710
Net Realized and Unrealized Gain (Loss) on Investments 286,299
Net Increase in Net Assets Resulting From Operations 282,658
See notes to financial statements.
10
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
from December 10, 1998 (commencement of operations) to April 30, 1999
(Unaudited)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Operations ($):
Investment (loss) (3,641)
Net realized gain (loss) on investments 85,589
Net unrealized appreciation(depreciation) on investments 200,710
Net Increase (Decrease) in Net Assets Resulting from Operations 282,658
- --------------------------------------------------------------------------------
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A shares 1,027,344
Class B shares 500,000
Class C shares 501,000
Class R shares 507,500
Cost of shares redeemed:
Class A shares (1,185)
Increase (Decrease) in Net Assets from Capital Stock Transactions 2,534,659
Total Increase (Decrease) in Net Assets 2,817,317
- --------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period --
End of Period 2,817,317
See notes to financial statements.
The Fund 11
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
from December 10, 1998 (commencement of operations) to April 30, 1999
(Unaudited) (continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares sold 82,043
Shares redeemed (89)
Net Increase (Decrease) in Shares Outstanding 81,954
- --------------------------------------------------------------------------------
Class B
Shares sold 40,000
- --------------------------------------------------------------------------------
Class C
Shares sold 40,072
- --------------------------------------------------------------------------------
Class R
Shares sold 40,557
See notes to financial statements.
12
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited)
The following table describes the performance for each share class for the
period from December 10, 1998 (commencement of operations) to April 30, 1999.
Certain information reflects financial results for a single Fund share. Total
Return shows how much your investment in the Fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the Fund's financial
statements.
- --------------------------------------------------------------------------------
Class A Class B Class C Class R
- --------------------------------------------------------------------------------
Per Share Data ($):
Net asset value, beginning of period 12.50 12.50 12.50 12.50
Investment Operations:
Investment income (loss)--net -- (.04) (.04) .01
Net realized and unrealized gain (loss)
on investments 1.42 1.42 1.42 1.42
Total from Investment Operations 1.42 1.38 1.38 1.43
Net asset value, end of period 13.92 13.88 13.88 13.93
- --------------------------------------------------------------------------------
Total Return (%) a 11.36 b 11.04 b 11.04 b 11.44
- --------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assets a .88 1.17 1.17 .78
Ratio of net investment income
to average net assets a (.04) (.33) (.33) .06
Decrease reflected in above expense ratio
due to undertakings by Dreyfus a 1.41 1.42 1.42 1.41
Portfolio Turnover Rate a 48.10 48.10 48.10 48.10
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1,141 555 556 565
a Not annualized.
b Exclusive of sales load.
See notes to financial statements.
The Fund 13
<PAGE>
NOTES TO FINANACIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier European Equity Fund (the "Fund") is a separate diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act") as
an open-end management investment company and operates as a series company
currently offering four series including the Fund which commenced operations on
December 10, 1998. The Fund's investment objective is long-term capital growth.
The Dreyfus Corporation ("Dreyfus") serves as the Fund's investment adviser.
Dreyfus is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned
subsidiary of Mellon Bank Corporation. Newton Capital Management Limited
("Newton") serves as the Fund's sub-investment adviser. Newton is an affiliate
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 200 million shares of $.001 par
value Common Stock in each of the following classes 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.
As of April 30, 1999, MBC Investments Corp., an indirect sub sidiary of Mellon
Bank Corporation, held the following shares of the Fund:
Class A ...................80,000 Class C ..................40,000
Class B ...................40,000 Class R ..................40,000
The Company accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
14
<PAGE>
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.
The Fund 15
<PAGE>
NOTES TO FINANACIAL STATEMENTS (Unaudited) (continued)
(c) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the Fund received net
earnings credits of $381 during the period ended April 30, 1999 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(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 require
ments of the Internal Revenue Code of 1986, as amended (the "Code"). To the
extent that net realized capital gain can be offset by capital loss carryovers,
if any, it is the policy of the Fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the Fund to qualify as a regulated
investment company, if such qualification is in the best interests of its
shareholders, by complying with the applicable provisions of the Code, and to
make distributions of taxable income sufficient to relieve it from substantially
all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a 100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
Fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. During the period ended April 30, 1999, the Fund did not borrow
under the line of credit.
16
<PAGE>
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of .90 of 1% of the value of the
Fund's average daily net assets and is payable monthly. Dreyfus has undertaken
through October 31, 1999 to reduce the management fee paid by or reimburse such
excess expenses of the Fund, to the extent that the Fund's aggregate expenses,
excluding 12b-1 distribution fees, shareholder service plan fees, taxes,
brokerage commissions, commitment fees, interest on borrowings and extraordinary
expenses, exceed an annual rate of 2% of the value of the Fund's average daily
net assets. The expense reimbursement, pursuant to the undertaking, amounted to
$37,652 during the period ended April 30, 1999.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Newton, the
sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the
value of the Fund's average daily net assets, computed at the following annual
rates:
Average Net Assets
0 to $100 million................................................... .35 of 1%
$100 million to $1 billion.......................................... .30 of 1%
$1 billion to $1.5 billion.......................................... .26 of 1%
In excess of $1.5 billion........................................... .20 of 1%
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares. During the period ended April 30,
1999, Class B and Class C shares were charged $1,543 and $1,543, respectively,
pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the Distributor at an annual rate of .25 of 1% of the value
The Fund 17
<PAGE>
NOTES TO FINANACIAL STATEMENTS (Unaudited) (continued)
of their average daily net assets 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, 1999, Class A, Class B and
Class C shares were charged $1,043, $514 and $514, respectively, pursuant to the
Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended April 30, 1999, the Fund was charged $19 pursuant to the transfer agency
agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company 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.
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, 1999, amounted to $3,834,817 and $1,293,589,
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 and to settle foreign currency transactions. 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 cur-
18
<PAGE>
rency exchange contracts, the Fund would incur a loss if the value of the
contract increases between the date the forward contract is opened and the date
the forward contract is closed. The Fund realizes a gain if the value of the
contract decreases between those dates. With respect to purchases of forward
currency exchange contracts, the Fund would incur a loss if the value of the
contract decreases between the date the forward contract is opened and the date
the forward contract is closed. The Fund realizes a gain if the value of the
contract increases between those dates. The Fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract. At April 30, 1999, there were no open forward currency exchange
contracts.
(b) At April 30, 1999, accumulated net unrealized appreciation on investments
was $200,881 consisting of $281,527 gross unrealized appreciation and $80,646
gross unrealized depreciation.
At April 30, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund 19
<PAGE>
FOR MORE INFORMATION
Dreyfus Premier
European Equity Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Newton Capital Management Limited
71 Queen Victoria Street
London, EC4V 4DR
England
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call your financial
representative or
1-800-554-4611
By mail Write to:
The Dreyfus Premier
Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
(C) 1999 Dreyfus Service Corporation 223/224SA994
Dreyfus Premier
Global Allocation
Fund
SEMIANNUAL REPORT
April 30, 1999
<PAGE>
Year 2000 Issues
(Unaudited)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund's other service providers do not properly
process and calculate date-related information from and after January 1,
2000. The Dreyfus Corporation is working to avoid Year 2000-related
problems in its systems and to obtain assurances from other service
providers that they are taking similar steps. In addition, issuers of
securities in which the fund invests may be adversely affected by Year
2000-related problems. This could have an impact on the value of the fund's
investments and its share price.
<PAGE>
Contents
THE FUND
- --------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
15 Statement of Financial Futures
16 Statement of Assets and Liabilities
17 Statement of Operations
18 Statement of Changes in Net Assets
20 Financial Highlights
24 Notes to Financial Statements
FOR MORE INFORMATION
- ----------------------
Back Cover
<PAGE>
Dreyfus Premier The Fund
Global Allocation Fund
LETTER FROM THE PRESIDENT
- -------------------------
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Global
Allocation Fund, covering the six-month period from November 1, 1998
through April 30, 1999. Inside, you'll find valuable information about how
the Fund was managed during the reporting period, including a discussion
with the Fund's portfolio manager, Lex C. Huberts.
Many regional economies showed marked improvement after many of the world's
central banks lowered key short-term interest rates to stimulate economic
growth. Less restrictive monetary policies especially helped prevent
further economic deterioration in Japan, Asia, Latin America and Eastern
Europe, where the worst of the global currency and credit crisis appears to
be behind us. In contrast, some Western European economies slowed
moderately after the formation of the European Monetary Union (EMU) and the
debut of a new currency, the euro.
These economic conditions produced mixed results for international stocks.
Stock markets in Japan and Asia began to recover over the past six months,
showing their first signs of real strength in over a year. European
markets, on the other hand, provided disparate performance. For example,
while Spain and the United Kingdom experienced higher stock prices on
average, others, such as Germany, declined. Latin America provided
lackluster results amid continued concerns about Brazil.
We appreciate your confidence over the past six months, and we look forward
to your continued participation in Dreyfus Premier Global Allocation Fund.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 13, 1999
2
<PAGE>
DISCUSSION OF FUND PERFORMANCE
- ------------------------------
Lex C. Huberts, Portfolio Manager
How did Dreyfus Premier Global Allocation Fund perform
relative to its benchmark?
For the six-month period ended April 30, 1999, the Fund produced a total
return of 12.43% for Class A shares, 12.04% for Class B shares, 12.04% for
Class C shares and 12.58% for Class R shares.1 This compares with a 10.60%
return for the Fund's global balanced benchmark, which consists of 60%
Morgan Stanley Capital International World Index, 30% Salomon Smith Barney
World Government Bond Index and 10% cash (as measured by the Salomon Smith
Barney Three Month CD Index).2
We attribute this outperformance to three factors. First, we were
overweighted in equities when equities significantly outperformed bonds.
Next, we held a significant position in Japanese stocks throughout the
period. The Japanese stock market was one of the top performing equity
markets during the period. Finally, we hedged a large portion of Japanese
currency exposure and euro currency exposure. These currencies depreciated
against the U.S. dollar.
What is the Fund's investment approach?
The Fund seeks to take advantage of discrepancies in price that, from time
to time, occur in global financial markets. From a starting allocation of
60% exposure to stocks, we analyze the relative value of stocks versus
bonds versus cash from the perspective of a local investor in each of the
markets we follow. If we believe, based on the fundamental economic
outlook, that stocks are inexpensive relative to bonds, we increase our
stock allocation to over 60%. Over time, the relationship in price should
return to its appropriate level, and stock prices will rise. Naturally, the
converse is also true. If stocks are overpriced relative to bonds, we
reduce our exposure to a level under the benchmark.
The Fund 3
<PAGE>
DISCUSSION OF FUND PERFORMANCE (continued)
Our country allocations are made on a country-by-country basis, again,
against a measure of each country's relative value: whether or not stocks,
given the outlook for profits, are expensive or cheap in comparison to
stocks in other markets. In each country's market, we purchase individual
stocks as well as instruments that represent the performance of the market
as a whole.
Our currency hedging strategy seeks to add value by taking advantage of
differences in real interest, that is, interest rates that are adjusted for
inflation. Discrepancies in real interest rates occur when a country's
central bank undertakes monetary policies for domestic economic purposes,
such as combating unemployment or attempting to offset inflation. The
effect of these policies tends to spill over into international markets,
creating opportunities for global investors. For example, we may currently
obtain income from a reduction in Japanese yen exposure. Additionally,
demand for a currency with high real interest rates is generally strong and
the value of such a currency will rise over time. We seek to emphasize
currencies with high real interest rates and to de-emphasize those
currencies with low real interest rates.
What other factors influenced the Fund's performance?
Over the semiannual period, we allocated Fund assets over nine major world
markets: France, Germany, Japan, the U.K., the U.S., the Netherlands,
Switzerland, Australia and Canada, and added diversification with nine
smaller markets. We found stocks to be attractive and made a significant
equity investment, averaging a 70% exposure, versus the 60% for the
benchmark. The Fund's largest equity positions were in the Japanese, Swiss
and German markets, which showed 29.55%, 13.02% and 15.62% returns,
respectively.
On the other hand, we have for some time believed that the U.S. equity
market is fully to slightly overvalued and that other regions provided
better opportunities. During the period, we de-emphasized our investments
in the United States, a move that held back our performance.
4
<PAGE>
What is the Fund's current strategy?
We currently believe stocks continue to be attractively valued in many
markets across the globe and, based on current market conditions, we are
modestly emphasizing stock holdings. While we have trimmed our Japanese
stock position in the face of current market strength, we currently remain
committed to investment in Japan. As for currencies, we believe that U.S.
dollar real interest rates are high by international comparisons and we are
strongly overweight with respect to the dollar.
The Fund will continue to seek opportunities as discrepancies between
markets -- stock versus bonds versus cash, country versus country -- arise.
However, recent market volatility has reminded us of the importance of
managing risk. It is now likely that we will manage our
allocations relatively close to our benchmark over the coming period.
However, should opportunities arise, your Fund will be repositioned as
needed.
May 13, 1999
1 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.
2 SOURCE (A): LIPPER ANALYTICAL SERVICES, INC.--The Morgan Stanley Capital
International World Index is an unmanaged index of global stock market
performance, including the United States, Canada, Australia, New Zealand
and the Far East. The Index is the property of Morgan Stanley & Co.,
Incorporated and includes net dividends reinvested. SOURCE (B): SALOMON
SMITH BARNEY, INC.--The Salomon Smith Barney World Government Bond Index
(unhedged) is an unmanaged fixed income index that tracks the performance
of 14 government bond markets. The Salomon Smith Barney Three Month CD
Index is a rotating sample collected by the New York Federal Reserve Bank
of five banks and dealers surveyed daily on secondary market dealer offer
rates for jumbo certificates of deposit.
The Fund 5
<PAGE>
STATEMENT OF INVESTMENTS
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Common Stocks--24.5% Shares Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Austria--.1%
Bank Austria 100 6,211
OMV 100 9,681
15,892
Belgium--.6%
Barco 100 18,071
Electrabel 100 33,020
Fortis 900 30,232
Groupe Bruxelles Lambert 100 18,356
KBC Bancassurance 200 12,421
Solvay 100 6,983
Tractebel 100 13,765
132,848
Denmark--.2%
A/S Dampskibsselskabet Svendborg 1 12,751
D/S 1912, Cl. B 1 9,047
Den Danske Bank 100 11,540
Tele Danmark 100 10,330
Unidanmark, Cl. A 100 6,882
50,550
Finland--.5%
Merita 1,000 5,925
Nokia 1,200 92,808
UPM-Kymmene 300 9,074
107,807
Hong Kong--.7%
CLP Holdings 2,000 10,735
Cheung Kong 2,000 18,192
Hang Seng Bank 2,000 23,676
Hong Kong Telecommunications 10,000 26,902
Hutchison Whampoa 3,000 26,902
New World Development 3,000 7,431
Sun Hung Kai Properties 2,021 17,731
Swire Pacific, Cl. A 2,000 11,225
142,794
Ireland--.1%
Allied Irish Banks 700 11,331
CRH 400 7,893
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Ireland (continued)
Jefferson Smurfit 1,700 4,640
23,864
Italy--1.2%
Assicurazioni Generali 800 31,173
Banca Commerciale Italiana 1,400 11,574
Banca Intesa 1,300 6,950
ENI 6,400 42,131
Edison 700 6,243
Fiat 3,000 10,080
Istituto Bancario San Paolo di Torino 1,222 18,398
Istituto Nazionale delle Assicurazioni 3,300 8,725
Mediaset 1,000 8,669
Mediobanca 600 7,555
Montedison 5,000 4,813
Pirelli 1,700 5,200
Riunione Adriatica di Sicurta 500 5,290
Telecom Italia 3,000 31,788
Telecom Italia (RNC) 1,000 5,376
Telecom Italia Mobile 5,300 31,950
Telecom Italia Mobile (RNC) 2,000 6,659
Unicredito Italiano 2,500 12,733
Unione Immobiliare 3,300 a 1,885
257,192
Japan--12.1%
Acom 300 22,494
Ajinomoto 1,000 11,570
Alps Electric 1,000 16,965
Aoyamma Trading 200 5,563
Asahi Bank 4,000 21,145
Asahi Breweries 1,000 13,036
Asahi Chemical Industry 3,000 17,467
Asahi Glass 2,000 15,314
Bank of Tokyo-Mitsubishi 7,000 103,330
Bridgestone 1,000 26,809
Canon 1,000 24,463
Casio Computer 1,000 6,953
Chiba Bank 2,000 8,394
</TABLE>
The Fund 7
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Japan (continued)
Chugai Pharmaceutical 1,000 11,896
Citizen Watch 1,000 8,294
Dai Nippon Printing 1,000 15,851
Daiichi Pharmaceutical 1,000 16,253
Daikin Industries 1,000 10,439
Dainippon Ink and Chemicals 2,000 7,272
Daiwa House Industry 1,000 11,938
Daiwa Securities 3,000 18,347
Denso 1,000 20,316
East Japan Railway 6 35,438
Ebara 1,000 12,156
Eisai 1,000 18,724
Fanuc 1,000 43,564
Fuji Bank 5,000 39,040
Fuji Photo Film 1,000 37,783
Fujitsu 3,000 51,397
Furukawa Electric 2,000 8,746
Gunma Bank 1,000 7,289
Hankyu 2,000 8,411
Hitachi 5,000 36,527
Honda Motor 1,000 44,067
Industrial Bank of Japan 4,000 33,343
Isetan 1,000 9,391
Itochu 3,000 7,917
JUSCO 1,000 19,939
Japan Airlines 4,000 12,600
Joyo Bank 2,000 7,959
KINDEN 1,000 12,566
KOKUYO 1,000 15,038
Kansai Electric Power 1,300 25,648
Kao 1,000 25,384
Kawasaki Heavy Industries 3,000 7,565
Kawasaki Steel 6,000 11,511
Kinki Nippon Railway 2,000 10,103
Kirin Brewery 2,000 22,620
Komatsu 2,000 11,913
Kubota 3,000 8,520
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Japan (continued)
Kuraray 1,000 11,394
Kyocera 600 35,639
Makita 1,000 10,740
Marui 1,000 16,596
Matsushita Electric Industrial 3,000 57,052
Minebea 1,000 9,676
Mitsubishi 2,000 13,237
Mitsubishi Chemical 4,000 12,365
Mitsubishi Electric 4,000 13,974
Mitsubishi Estate 2,000 20,458
Mitsubishi Heavy Industries 6,000 26,289
Mitsubishi Rayon 2,000 5,295
Mitsubishi Trust & Banking 2,000 21,949
Mitsui & Co. 3,000 21,991
Mitsui Fudosan 2,000 18,431
Mitsui Trust & Banking 3,000 4,851
Mycal 1,000 6,199
NEC 3,000 35,840
NGK Insulators 1,000 12,189
NGK Spark Plug 1,000 10,514
NKK 7,000 a 5,571
NSK 2,000 11,276
Nagoya Railroad 2,000 6,803
Nikon 1,000 13,739
Nippon Express 2,000 13,069
Nippon Mitsubishi Oil 2,000 8,931
Nippon Paper Industries 2,000 10,556
Nippon Steel 12,000 26,943
Nippon Telegraph & Telephone 18 196,037
Nippon Yusen Kabushiki Kaisha 2,000 7,791
Nissan Motor 5,000 19,185
Nomura Securities 3,000 32,371
OBAYASHI 2,000 11,008
Odakyu Electric Railway 2,000 7,205
Oji Paper 2,000 11,980
Olympus Optical 1,000 12,298
Omron 1,000 13,840
</TABLE>
The Fund 9
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Japan (continued)
Osaka Gas 5,000 17,174
SHIMIZU 2,000 7,841
Sakura Bank 6,000 23,173
Sankyo 1,000 20,986
Sanyo Electric 4,000 14,979
Sekisui Chemical 1,000 6,685
Sekisui House 1,000 11,201
77 Bank 1,000 9,006
Sharp 2,000 23,457
Shin-Etsu Chemical 1,000 31,835
Shionogi & Co. 1,000 8,897
Shiseido 1,000 15,750
Shizuoka Bank 1,000 11,787
Sony 800 74,729
Sumitomo 2,000 14,778
Sumitomo Bank 5,000 67,692
Sumitomo Chemical 3,000 13,396
Sumitomo Electric Industries 1,000 12,106
Sumitomo Marine & Fire Insurance 1,000 6,786
Sumitomo Metal Industries 6,000 7,992
Taisho Pharmaceutical 1,000 30,746
Takashimaya 1,000 8,169
Takeda Chemical Industries 1,000 43,480
Teijin 2,000 8,411
Tohoku Electric Power 1,000 15,122
Tokai Bank 4,000 26,138
Tokio Marine & Fire Insurance 2,000 23,307
Tokyo Electric Power 2,100 44,862
Tokyo Gas 5,000 13,195
Tokyu 2,000 5,512
Toppan Printing 1,000 12,031
Toray Industries 3,000 15,910
Toto 1,000 8,227
Toyota Motor 5,000 142,001
Yamaguchi Bank 1,000 9,886
Yamanouchi Pharmaceutical 1,000 31,668
Yamato Transport 1,000 16,730
2,628,195
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Netherlands--1.0%
ABN AMRO 740 17,655
Akzo Nobel 160 7,236
Elsevier 350 5,240
Getronics 50 2,055
Heineken 180 9,046
ING Groep 502 30,964
KPN 246 10,281
Koninklijke Ahold 311 11,566
Koninklijke (Royal) Philips Electronics 195 16,814
Royal Dutch Petroleum 1,160 67,623
TNT Post 240 6,475
Unilever 360 24,681
Wolters Kluwer 160 6,974
216,610
New Zealand--.0%
Telecom Corporation of New Zealand 2,000 10,410
Norway--.0%
Den Norske Bank 1,100 3,984
Norsk Hydro 200 8,977
12,961
Portugal--.2%
BPI-SGPS 200 5,396
Banco Comercial Portugues 300 8,471
Banco Espirito Santo e Comercial de Lisboa 200 4,812
Electricidade de Portugal 300 5,650
Portugal Telecom 200 8,347
32,676
Singapore--.3%
Development Bank of Singapore 1,000 10,629
Oversea-Chinese Banking 2,000 18,777
Singapore Airlines 1,000 9,212
Singapore Press Holdings 900 13,286
Singapore Telecommunications 5,000 9,271
61,175
Spain--.9%
Argentaria 400 9,420
Autopistas, Concesionaria Espanola 500 6,322
Banco Bilbao Vizcaya 1,500 22,471
</TABLE>
The Fund 11
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Spain (continued)
Banco Santander Central Hispano 1,560 33,934
Endesa 800 17,808
Fomento de Construcciones y Contratas 200 12,241
Gas Natural SDG, Cl. E 100 8,088
Iberdrola 700 9,813
Repsol 600 9,776
Sociedad General de Aguas de Barcelona 200 11,321
Tabacalera, Cl. A 300 5,888
Telefonica 816 38,289
Telefonica (Rights) 816 760
186,131
Sweden--.7%
ABB, Cl. A 600 8,382
ABB, Cl. B 500 6,985
AGA, Cl. A 400 5,279
Drott, Cl. B 200 1,664
ForeningsSparbanken 300 6,598
Hennes & Mauritz, Cl. B 200 17,287
NetCom, Cl. B 300 a 9,666
Sandvik, Cl. A 300 6,777
Securitas, Cl. B 800 11,889
Skandinaviska Enskilda Banken, Cl. A 500 6,539
Skanska, Cl. B 200 7,954
Svenska Cellulosa, Cl. B 300 7,686
Svenska Handelsbanken, Cl. A 200 7,514
Telefonaktiebolaget LM Ericsson, Cl. B 1,600 42,135
Volvo, Cl. A 300 7,794
Volvo, Cl. B 200 5,291
159,440
Switzerland--5.9%
ABB 25 36,535
Adecco 55 27,780
Alusuisse Lonza 30 a 35,961
Credit Suisse (Reg'd) 635 126,166
Holderbank Financiere Glarus (Bearer) 24 28,989
Nestle 98 181,710
Novartis (Bearer) 15 21,980
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Common Stocks (continued) Shares Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Switzerland (continued)
Novartis (Reg'd) 143 209,733
Roche (Bearer) 4 70,647
Roche Ag-Genusss 17 200,315
Schweizerische Rueckversicherungs-Gesellschaft 35 76,736
Sulzer 20 a 12,729
UBS 495 168,414
Zurich Allied 119 74,566
1,272,261
Total Common Stocks
(cost $4,709,743) 5,310,806
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Bonds and Notes--7.0% Amount Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Principal
Bonds and Notes--7.0% Amount ($) Value ($)
Netherlands--1.6%
Netherlands Government, Bonds:
7.25%, 10/1/2004 19,512 24,579
5.75%, 2/15/2007 113,445 136,169
7.50%, 4/15/2010 130,234 179,770
340,518
United States--5.4%
U.S. Treasury Notes,
6.50%, 8/15/05 1,105,000 b 1,171,366
Total Bonds and Notes
(cost $1,515,108) 1,511,884
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Short-Term Investments--66.4 Amount Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper--60.5%
American Honda Finance, 4.84%, 5/26/1999 800,000 797,311
BP Capital, 4.78%, 6/17/1999 800,000 795,008
Bellsouth Telecommunications, 4.79%, 6/4/1999 800,000 796,381
Commercial Credit, 4.79%, 5/7/1999 800,000 799,361
Duke Power, 4.74%, 6/9/1999 800,000 795,892
Ford Motor Credit, 4.81%, 6/18/1999 800,000 794,869
GE Capital, 4.79%, 6/4/1999 800,000 796,381
GMAC MTN, 4.75%, 5/21/1999 771,000 768,965
Heinz (H.J.), 4.80%, 6/4/1999 800,000 796,373
Household Finance, 4.82%, 6/10/1999 800,000 795,716
IBM Credit, 4.78%, 5/12/1999 400,000 399,416
</TABLE>
The Fund 13
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (continued)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Short-Term Investments (continued) Shares Value ($)
- -------------------------------------------------------------------------------
<S> <C> <C>
Commercial Paper (continued)
International Lease, 4.79%, 6/14/1999 800,000 795,317
Metlife Funding:
4.83%, 5/7/1999 400,000 399,678
4.79%, 5/18/1999 400,000 399,095
Toyota Motor Credit, 4.79%, 6/11/1999 800,000 795,636
UBS Finance, 4.76%, 5/17/1999 800,000 798,308
USAA Capitol, 4.80%, 6/4/1999 800,000 796,373
Xerox Credit, 4.77%, 5/20/ 800,000 797,986
13,118,066
U.S. Treasury Bills--5.9%
4.39%, 5/13/1999 219,000 218,740
4.46%, 5/20/1999 227,000 226,480
4.36%, 6/17/1999 379,000 376,847
4.37%, 6/24/1999 13,000 12,914
4.33%, 7/22/1999 455,000 450,430
1,285,411
Total Short-Term Investments (cost $14,403,569) 14,403,476
- -------------------------------------------------------------------------------
Total Investments (cost $20,628,420) 97.9% 21,226,167
Cash and Receivables (net) 2.1% 443,435
Net Assets 100.0% 21,669,602
<FN>
a Non-income producing.
b Partially held by the custodian in a segregated account as collateral
for open financial futures positions.
</FN>
</TABLE>
See notes to financial statements.
14
<PAGE>
STATEMENT OF FINANCIAL FUTURES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
- -
Unrealized
Market Value Appreciation
Covered by (Depreciation)
Contracts Contracts ($) Expiration at 4/30/99 ($)
- --------------------------------------------------------------------------------------------
- -
<S> <C> <C> <C> <C>
Financial Futures Long:
Australian 10 Year Bond 1 595,733 June '99 1,557
CAC 40 14 567,888 June '99 39,348
Canadian 10 Year Government Bond 2 168,862 June '99 1,229
Euro Notional 10 Year Bond 6 607,709 June '99 12,878
Financial Times Stock Exchange 100 6 638,951 June '99 31,566
Euro Bond 12 1,498,352 June '99 20,430
German Stock 11 1,617,894 June '99 91,965
Japanese 10 Year Government Bond 1 570,877 June '99 11,897
Long Gilt 4 747,079 June '99 3,397
S&P 500 14 4,677,750 June '99 170,450
Tokyo Price Index 5 547,001 June '99 76,105
Toronto 35 2 259,091 June '99 16,319
U.S. 10 Year Note 15 1,720,313 June '99 (4,297)
U.S. Long Bond 9 1,081,688 June '99 (1,625)
471,219
</TABLE>
The Fund 15
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
Cost Value
- -----------------------------------------------------------------------------------
<S> <C> <C>
Assets ($):
Investments in securities--See Statement of Investments 20,628,420 21,226,167
Cash denominated in foreign currencies 23,811 23,840
Receivable for investment securities sold 473,491
Dividends and interest receivable 35,255
Net unrealized appreciation on forward
currency exchange contracts--Note 3(a) 7,430
Prepaid expenses 48,098
21,814,281
- -----------------------------------------------------------------------------------
Liabilities ($):
Due to The Dreyfus Corporation and affiliates 17,028
Due to Distributor 9,509
Cash overdraft due to Custodian 35,445
Payable for futures variation margin 64,410
Accrued expenses and other liabilities 18,287
144,679
- -----------------------------------------------------------------------------------
Net Assets ($) 21,669,602
- -----------------------------------------------------------------------------------
Composition of Net Assets ($):
Paid-in capital 20,001,640
Accumulated undistributed investment income--net 301,345
Accumulated net realized gain (loss) on investments and
foreign currency transactions 291,436
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions
(including $471,219 net unrealized appreciation on
financial futures) 1,075,181
Net Assets ($) 21,669,602
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Class B Class C Class R
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 7,603,645 7,554,461 2,158,358 4,353,138
Shares Outstanding 560,132 560,000 160,000 320,000
- -------------------------------------------------------------------------------
Net Asset Value Per Share ($) 13.57 13.49 13.49 13.60
</TABLE>
See notes to financial statements.
16
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION
- ------------------------------------------------------------------------------------
Investment Income ($)
- ------------------------------------------------------------------------------------
<S> <C> <C>
Income:
Interest 364,499
Cash dividends (net of $5,058 foreign taxes withheld at source) 30,154
Total Income 394,653
Expenses:
Management fee--Note 2(a) 102,389
Registration fees 38,858
Distribution fees--Note 2(b) 34,459
Shareholder servicing costs--Note 2(c) 20,511
Professional fees 13,749
Custodian fees 9,352
Prospectus and shareholders' reports 6,767
Directors' fees and expenses--Note 2(d) 2,482
Miscellaneous 2,264
Total Expenses 230,831
Less--reduction in management fee due to
undertaking--Note 2(a) (11,743)
Net Expenses 219,088
Investment Income--Net 175,565
- ------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments--Note 3:
Net realized gain (loss) on investments and foreign currency
transactions 181,339
Net realized gain (loss) on forward currency exchange contracts (409,172)
Net realized gain (loss) on financial futures 1,572,905
Net Realized Gain (Loss) 1,345,072
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions [including ($73,348) net
unrealized (depreciation) on financial futures) 860,476
Net Realized and Unrealized Gain (Loss) on Investments 2,205,548
Net Increase in Net Assets Resulting From Operations 2,381,113
</TABLE>
See notes to financial statements.
The Fund 17
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998*
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Operations ($):
Investment income--net 175,565 125,780
Net realized gain (loss) on investments 1,345,072 (1,053,636)
Net unrealized appreciation (depreciation) on
investments 860,476 214,705
Net Increase (Decrease) in Net Assets
Resulting from Operations 2,381,113 (713,151)
- -----------------------------------------------------------------------------------------
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A shares 350 7,001,300
Class B shares -- 7,000,000
Class C shares -- 2,000,000
Class R shares -- 4,000,000
Cost of shares redeemed:
Class A shares (10) --
Increase (Decrease) in Net Assets from
Capital Stock Transactions 340 20,001,300
Total Increase (Decrease) in Net Assets 2,381,453 19,288,149
- -----------------------------------------------------------------------------------------
Net Assets ($):
Beginning of Period 19,288,149 --
End of Period 21,669,602 19,288,149
Undistributed investment income--net 301,345 125,780
<FN>
* From June 29, 1998 (commencement of operations) to October 31, 1998.
</FN>
</TABLE>
See notes to financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
(Unaudited) October 31, 1998*
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Capital Share Transactions:
Class A
Shares sold 27 560,105
Class B
Shares sold -- 560,000
Class C
Shares sold -- 160,000
Class R
Shares sold -- 320,000
</TABLE>
* From June 29, 1998 (commencement of operations) to October 31, 1998.
See notes to financial statements.
The Fund 19
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single Fund share. "Total return" shows how much your investment in the Fund
would have increased (or decreased) during each period, assuming you had
reinvested all dividends and distributions. These figures have been derived
from the Fund's financial statements.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class A Shares (Unaudited) October 31, 1998*
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 12.07 12.50
Investment Operations:
Investment income--net .13 .09
Net realized and unrealized gain (loss) on investments 1.37 (.52)
Total from Investment Operations 1.50 (.43)
Net asset value, end of period 13.57 12.07
- -----------------------------------------------------------------------------------------
Total Return (%)b,c 12.43 (3.44)
- -----------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsc .92 .59
Ratio of net investment income to average net assetsc .99 .75
Decrease reflected in above expense ratio due to
undertakings by Dreyfusc .06 .11
Portfolio Turnover Ratec 2.48 12.26
Net Assets, end of period ($ x 1,000) 7,604 6,758
<FN>
a From June 29, 1998 (commencement of operations) to October 31, 1998.
b Exclusive of sales load.
c Not annualized.
</FN>
</TABLE>
See notes to financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class B Shares (Unaudited) October 31, 1998*
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 12.04 12.50
Investment Operations:
Investment income--net .05 .06
Net realized and unrealized gain (loss) on investments 1.40 (.52)
Total from Investment Operations 1.45 (.46)
Net asset value, end of period 13.49 12.04
- -----------------------------------------------------------------------------------------
Total Return (%)b,c 12.04 (3.68)
- -----------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsc 1.29 .84
Ratio of net investment income to average net assetsc .62 .50
Decrease reflected in above expense ratio due to
undertakings by Dreyfusc .06 .11
Portfolio Turnover Ratec 2.48 12.26
Net Assets, end of period ($ x 1,000) 7,554 6,740
<FN>
a From June 29, 1998 (commencement of operations) to October 31, 1998.
b Exclusive of sales load.
c Not annualized.
</FN>
</TABLE>
See notes to financial statements
The Fund 21
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class C Shares (Unaudited) October 31, 1998*
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 12.04 12.50
Investment Operations:
Investment income--net .08 .06
Net realized and unrealized gain (loss) on investments 1.37 (.52)
Total from Investment Operations 1.45 (.46)
Net asset value, end of period 13.49 12.04
- -----------------------------------------------------------------------------------------
Total Return (%)b,c 12.04 (3.68)
- -----------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsc 1.29 .84
Ratio of net investment income to average net assetsc .62 .50
Decrease reflected in above expense ratio due to
undertakings by Dreyfusc .06 .11
Portfolio Turnover Ratec 2.48 12.26
Net Assets, end of period ($ x 1,000) 2,158 1,926
<FN>
a From June 29, 1998 (commencement of operations) to October 31, 1998.
b Exclusive of sales load.
c Not annualized.
</FN>
</TABLE>
See notes to financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Six Months Ended
April 30, 1999 Year Ended
Class R Shares (Unaudited) October 31, 1998*
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Per Share Data ($):
Net asset value, beginning of period 12.08 12.50
Investment Operations:
Investment income--net .14 .10
Net realized and unrealized gain (loss) on investments 1.38 (.52)
Total from Investment Operations 1.52 (.42)
Net asset value, end of period 13.60 12.08
- -----------------------------------------------------------------------------------------
Total Return (%)b,c 12.58 (3.36)
- -----------------------------------------------------------------------------------------
Ratios/Supplemental Data (%):
Ratio of expenses to average net assetsb .80 .50
Ratio of net investment income to average net assetsb 1.12 .84
Decrease reflected in above expense ratio due to
undertakings by Dreyfusb .06 .11
Portfolio Turnover Rateb 2.48 12.26
Net Assets, end of period ($ x 1,000) 4,353 3,864
<FN>
a From June 29, 1998 (commencement of operations) to October 31, 1998.
b Not annualized.
</FN>
</TABLE>
See notes to financial statements.
The Fund 23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Global Allocation Fund (the "Fund") is a separate
diversified portfolio of Dreyfus Premier International Funds, Inc. (the
"Company") which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and
operates as a series company currently offering three series including the
Fund. The Fund's investment objective is total return. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. Dreyfus is
a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned
subsidiary of Mellon Bank Corporation.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue 125 million shares of
$.001 par value Common Stock in each of the following classes 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.
As of April 30, 1999, MBC Investments Corp., an indirect subsidiary of
Mellon Bank Corporation, held the following shares:
Class A 560,000 Class C 160,000
Class B 560,000 Class R 320,000
The Company accounts separately for the assets, liabilities and operations
of each fund. Expenses directly attributable to each fund are charged to
that fund's operations; expenses which are applicable to all funds are
allocated among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
24
<PAGE>
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
The Fund 25
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the Fund received
net earnings credit of $934 during the period ended April 30, 1999 based on
available cash balances left on deposit. Income earned under this
arrangement is included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code").
To the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Code, and to make distributions of taxable income
sufficient to relieve it from substantially all Federal income and excise
taxes.
The Fund has an unused capital loss carryover of approximately $580,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1998. If not
applied, the carryover expires in fiscal 2006.
NOTE 2--Management Fee and Other Transactions
With Affiliates:
(a) Pursuant to a management agreement with Dreyfus, the management fee is
computed at the annual rate of 1% of the value of the Fund's average daily
net assets and is payable monthly. Dreyfus has undertaken from November 1,
1998 through October 31, 1999 to reduce the management fee paid by the
Fund, to the extent that the Fund's aggregate expenses, excluding 12b-1
26
<PAGE>
distribution fees, service plan fees, taxes, brokerage, commitment fees,
interest on borrowings and extraordinary expenses, exceed an annual rate of
1.75% of the value of the Fund's average daily net assets. The reduction in
management fee, pursuant to the undertaking, amounted to $11,743 during the
period ended April 30, 1999.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for
distributing their shares at an annual rate of .75 of 1% of the value of
the average daily net assets of Class B and Class C shares. During the
period ended April 30, 1999, Class B and Class C shares were charged
$26,801 and $7,658, respectively, pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class A, Class B and Class C
shares pay the Distributor at an annual rate of .25 of 1% of the value of
their average daily net assets 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, 1999, Class A, Class B and Class C shares were charged
$8,976, $8,934 and $2,552, respectively, pursuant to the Shareholder
Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended April 30, 1999, the Fund was charged $38 pursuant to the
transfer agency agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company 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.
The Fund 27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
NOTE 3--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, financial futures and forward currency
exchange contracts, during the period ended April 30, 1999, amounted to
$180,589 and $1,496,989, respectively.
The following summarizes open forward currency exchange contracts at April
30, 1999:
<TABLE>
<CAPTION>
Unrealized
Foreign Appreciation
Forward Currency Currency (Depreciation)
Exchange Contracts Amounts Cost ($) Value ($) ($)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Australian Dollars,
expiring 6/30/99 138,000 87,398 91,479 4,081
Canadian Dollars,
expiring 6/30/99 609,500 402,749 418,677 15,928
Euro Dollars,
expiring 6/30/99 3,122,000 3,357,909 3,315,591 (42,318)
British Pounds,
expiring 6/30/99 833,980 1,344,161 1,342,126 (2,035)
Sales: Proceeds
Euro Dollars,
expiring 6/30/99 158,000 169,776 167,797 1,979
Swiss Francs,
expiring 6/30/99 1,900,000 1,286,130 1,256,026 30,104
Japanese Yen,
expiring 5/10/99 560,080,558 469,864 469,824 40
Japanese Yen,
expiring 6/30/99 206,091,000 1,738,724 1,739,073 (349)
Total 7,430
</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 and to settle foreign currency transactions. 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
28
<PAGE>
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.
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. Accordingly,
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. Contracts open at April 30, 1999 are set
forth in the Statement of Financial Futures.
(b) At April 30, 1999, accumulated net unrealized appreciation on
investments, forward currency exchange contracts and financial futures was
$1,076,396, consisting of $1,338,585 gross unrealized appreciation and
$262,189 gross unrealized depreciation.
At April 30, 1999, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes
(see the Statement of Investments).
The Fund 29
<PAGE>
For More Information
Dreyfus Premier
Global Allocation Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
By telephone
Call your financial
representative or
1-800-554-4611
By mail Write to:
The Dreyfus Premier
Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
(C) 1999, Dreyfus Service Corporation 545/546SA994
