DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
For the April 1998 semi-annual letter, I was able to report that Dreyfus
Premier International Growth Fund registered gains both in absolute terms and in
comparison to the main international equity index, the Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE((reg.tm) )) Index.
Unfortunately, I must report that your Fund underperformed the EAFE Index in the
second half of the fiscal year ended October 31, 1998, and finished well behind
it for the full year as a result. For the 12-month period ended October 31,
1998, Dreyfus Premier International Growth Fund finished the year with a return
of -4.50% for Class A shares, -5.22% for Class B shares, -5.34% for Class C
shares and -4.44% for Class R shares,* while the EAFE Index produced a full year
gain of 9.65% for the same period. **
There are two major reasons for the difficult year your Fund has experienced.
Both have to do with the turbulent world market conditions of August and
September, 1998. First, in an effort to protect assets during the period of
turmoil, your Fund's currency exposure was completely hedged. As you may recall,
the Dreyfus Premier International Growth Fund's policy is to hedge currency
exposure when, in my view, the U.S. dollar has the potential to rise by more
than 10% against a given currency over a period of 12 to 18 months. This is a
practical consideration since, in an international fund, most of the stocks
owned are denominated in foreign currency. When the dollar rises, the value of
the foreign currency, and thus the stock, falls. Hedging is meant to offset this
and should be a defensive strategy. This did not prove to be the case during the
recent market turmoil. Even as investors around the world rushed to invest in
safe haven assets such as U.S. government bonds, there proved to be not the
coincident rush into dollars I had expected but a sell-off of the U.S. currency.
Thus, my hedging strategy resulted in losses for your Fund in the last several
months of the fiscal year.
The second reason for the Fund's underperformance was its substantial position
in European financial stocks. As the reader will recall, financial stocks around
the world performed very poorly in August and September as the emerging market
crisis spread to Russia and a large U.S.-based investment fund required
financial support from its banks. Although most of the banks and insurance
companies held by your Fund are primarily involved in local European markets,
their stock prices declined as sharply as those of the large international banks
and more than many other nonfinancial stocks. A few examples of Dreyfus Premier
International Growth Fund' s holdings that sustained declines are the local
Finnish insurer Sampo Insurance, down 57%; Bank of Ireland, down 36%; Italian
insurer Instituto Nazionale delle Assicurazioni, down 34%; and Sweden's Svenska
Handelsbanken, down 35% . Prices of these issues have recovered somewhat from
these lows.
Beyond the difficulties described above, shares of a number of growth
companies held by your Fund performed quite well over the period. Two of these,
Colt Telecom and Olivetti, are entrants in the newly deregulated European
telecom market. As a result of very high levels of customer and revenue growth,
Olivetti rose 42% and Colt Telecom more than doubled. Other strong performers
for the fiscal year were the French water service company Vivendi, up 49%;
German retailer Douglas Holding, up 55%; Dutch baby food producer Numico, up 36%
; and cellular phone service provider Vodafone, which more than doubled.
INVESTMENT APPROACH
During my 15 years in the international investment business I have developed
an investment process designed to deliver to investors a portfolio that includes
a wide variety of holdings in 15 to 25 markets around the world, exposure to
rapidly growing emerging markets when they are attractive for investment, and
active currency management. The crucial challenge for an international equity
investor is how to judge the relative attractiveness of various markets when
there are scores to choose from. I address this challenge by evaluating inputs
on growth, valuation, interest rates, liquidity, technical factors and currency
in each of the world' s major markets. My work in these areas is driven by
PC-based tools developed over time. Markets and industry sectors are
overweighted, underweighted or market weighted relative to the EAFE Index.
Dreyfus Premier International Growth Fund invests in emerging markets when, in
my opinion, significant opportunities present themselves in this asset class
In this investment process, stocks are managed in a disciplined way. I search
for stocks expected to have higher earnings growth rates than the market in
which they trade. Attractive companies often have made a corporate change in
management, strategy or business structure that will positively alter their
future growth rate. Generally, stocks purchased also need to have attractive
valuations both relative to their own history and that of the local market.
Companies typically are sold when growth is forecast to fall below my own or
consensus estimates, the valuation target is reached or the weighting in that
market reduced as a result of an asset allocation decision.
Foreign currencies are at least partially hedged, where practicable.
CURRENT STRATEGY
Looking across world markets through the filter of our six screens--growth,
valuation, interest rates, liquidity, currency, and technical analysis--is not
an easy task in a world undergoing so much change. But let's take a moment to
survey the big picture before focusing on specific opportunities in each region
We believe that economic growth will be slow in 1999. The full effect of the
difficulties that began in Asia in the summer and fall of 1997 has hit the
developed economies in Europe and the U.S., even while it is causing deeper
problems for the already troubled Japanese economy. The Dreyfus Premier
International Growth Fund research team estimates that the strongest growth in
both Gross Domestic Product (GDP) and earnings will be in Continental Europe.
Global stock valuations had been rather stretched in the summer of 1998 but have
become much more attractive following the sharp market correction of August and
September. Stocks in Continental Europe are trading on an average of eighteen
times estimated 1999 earnings. Japanese stocks, while not cheap on projected
earnings, exhibit attractive valuations in the areas of price/book, price/sales
and price/cash flow. Many emerging markets equities are also cheap. Perhaps the
best piece of news from our six-factor analysis at the moment is the likelihood
of a broad decline in interest rates. The Dreyfus Premier International Growth
Fund research team expects interest rates to decline in both Continental Europe
and the U.K. in 1999 and to remain low in the rest of the world.
In our view, Continental Europe continues to look like an attractive place for
investment. In addition to a relatively favorable outlook for growth, valuation
and interest rates, three additional positive factors are worth mentioning.
First, continental companies continue to restructure and move toward the
investment perspective of the shareholders. Second, private pension systems and
equity-oriented savings plans are beginning to find favor. Third, Continental
European governments have the financial resources to spur growth with fiscal
policy should they decide this is necessary. Where specific stocks are
concerned, our investment team continues to seek attractive growth at a
reasonable price among many of the regional banks and insurance companies on the
Continent. Many of these are in process of restructuring. Among your Fund's core
holdings in this area are Sampo Insurance of Finland despite its recent decline,
Instituto Bancario San Paolo di Torino, Skandia Forsakrings of Sweden and
Schweizerische Lebensversicherungs und Retenan. As mentioned earlier, the newly
deregulated telecom services business was a profitable investment area for your
Fund in the past fiscal year. We expect it to continue to be an area of focused
investment for 1999. Core positions in the telecom area include Colt Telecom,
Olivetti, Mannesmann and Netcom.
While overall prospects for the U.K. appear less buoyant than those of the
Continent, your Fund holds a number of U.K. stocks that we believe possess
attractive growth prospects and valuations. Perhaps most interesting among these
is British Sky Broadcasting Group, one of the pioneers in the digital television
broadcasting industry in the country. Overall, however, your Fund remains
underweight in the U.K. market compared to that market's weight in the EAFE
Index.
Dreyfus Premier International Growth Fund remains underweight in the Japanese
market as well. We believe the 1999 calendar year could be another year of
declining GDP and earnings in that market. Although, as I mentioned earlier,
stocks appear cheap on some measures in that market, investor enthusiasm has
been restrained by ongoing questions not only about growth but also about the
commitment of the Japanese government and companies to reform. On the government
level, deregulation of the economy and reform of the banking system remain a
stop-go process. Some deregulatory steps have been taken in industries such as
retailing but much more needs to be done. In the bank sector the government is
moving to inject new capital into the banks but sadly, not to reform the
practices under which loans are made and bad loans are recognized on the balance
sheet. Some private companies are beginning to restructure and recognize
shareholders as the true owners of the company but this is a small minority at
present.
In my April 1998 letter I remarked that, "I remain cautious on emerging
markets." I believe one can be a bit more sanguine today, but not bullish.
Economic growth is not, in my view, going to return to the Asian emerging
markets in 1999. These markets may become targets for investment in your Fund
during 1999, however, as visibility on renewed economic growth in the year 2000
improves. The picture in Latin America is more positive. Our research team
believes that Latin markets have been unfairly tainted by association with the
Asian emerging markets. Interest rates have risen to very high levels to protect
against capital outflows. Economic growth is set to slow in the next few months
as a result. But far-reaching reforms are being enacted and implemented in the
region' s largest nation, Brazil, which we believe will substantially relieve
investor concerns. As a result, your Fund made new investments in both Brazil
and Mexico near the end of the fiscal year. These large liquid stocks, valued at
price-to-earnings ratios of 6 to 9, represent some of the cheapest stocks in the
world in our view. As reforms take hold, valuations of these Latin stocks may
rise until they are more in line with those seen in the rest of the world
As manager of Dreyfus Premier International Growth Fund, I look forward to
communicating with you again next spring in the semi-annual shareholder letter.
Sincerely,
[Ron Chapman signature logo]
Ron Chapman
Portfolio Manager
November 16, 1998
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares, or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC.--The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE((reg.tm) )) Index is an
unmanaged index composed of a sample of companies representative of the market
structure of European and Pacific Basin countries and include net dividends
reinvested. The Index is the property of Morgan Stanley & Co. Incorporated.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND OCTOBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER
INTERNATIONAL GROWTH FUND CLASS A SHARES AND THE MORGAN STANLEY CAPITAL
INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (EAFE(R)) INDEX
[Exhibit A:
Dollars
$16,900
Morgan Stanley Capital International Europe, Australasia, Far East (EAFE(R))
Index*
$15,975
<TABLE>
<CAPTION>
Dreyfus Premier International Growth Fund (Class A Shares)
*Source: Lipper Analytical Services, Inc.]
Average Annual Total Returns
- --------------------------------------------------------------------------------
Class A Shares Class B Shares
_______________________________________________________ __________________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 10/31/98 Sales Charge Sales Charge (5.75%) Period Ended 10/31/98 Redemption Redemption*
_____________________ _______________ __________________ _____________________ ____________ __________________
<S> <C> <C> <C> <C> <C>
1 Year (4.50)% (9.98)% 1 Year (5.22)% (8.42)%
5 Years 6.01 4.76 5 Years 5.21 4.94
From Inception (1/31/92) 8.13 7.19 From Inception (1/15/93) 6.98 6.86
Class C Shares Class R Shares
_______________________________________________________ _______________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 10/31/98 Redemption Redemption** Period Ended 10/31/98
_____________________ _______________ __________________ _____________________
1 Year (5.34)% (6.14)% 1 Year (4.44)%
From Inception (9/5/95) 5.53 5.53 From Inception (9/5/95) 6.53
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of Dreyfus
Premier International Growth Fund on 1/31/92 (Inception Date) to a $10,000
investment made in the Morgan Stanley Capital International Europe, Australasia,
Far East (EAFE((reg.tm) )) Index ("MSCI EAFE") on that date. All dividends and
capital gain distributions are reinvested. Performance for Class B, Class C and
Class R shares will vary from the performance of Class A shares shown above due
to differences in charges and expenses.
The Fund' s investment approach is that of an international fund that invests
substantially all of its assets in foreign securities. The Fund's performance
shown in the line graph takes into account the maximum initial sales charge on
Class A shares and all other applicable fees and expenses. The MSCI EAFE, which
is the property of Morgan Stanley & Co. Incorporated, 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 does not take into account charges, fees and other expenses. Further
information relating to Fund performance, including expense reimbursements, if
applicable, is contained in the Financial Highlights section of the Prospectus
and elsewhere in this report.
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS OCTOBER 31, 1998
Common Stocks--100.1% Shares Value
- -------------------------------------------------------
____________ ____________
<S> <C> <C> <C>
Brazil--4.6% Compania de Saneamento
Basico do Estado de Sao Paulo . . . . . . . . . . 14,500 $ 1,166,806
Telecomunicoaes Brasileiras, ADR . . . . . . . . . . . 42,000 3,189,375
____________
4,356,181
____________
Finland--1.0% Sampo Insurance . . . . . . . . . . . . . . . . . . . 30,000 935,917
____________
France--9.6% Accor . . . . . . . . . . . . . . . . . . . . . . . . 6,500 1,367,249
Alcatel . . . . . . . . . . . . . . . . . . . . . . 14,300 1,595,476
Axa . . . . . . . . . . . . . . . . . . . . . . . . . 23,000 2,603,461
Pathe . . . . . . . . . . . . . . . . . . . . . . . . 7,000 1,338,681
Suez Lyonnaise des Eaux . . . . . . . . . . . . . . . 5,700 1,022,260
Vivendi . . . . . . . . . . . . . . . . . . . . . . . 4,600 1,052,163
Vivendi (Warrants) . . . . . . . . . . . . . . . . . . 11,200 (a) 22,913
____________
9,002,203
____________
Germany--8.6% Douglas Holding . . . . . . . . . . . . . . . . . . . 19,400 1,113,797
Hoechst . . . . . . . . . . . . . . . . . . . . . . . 53,000 2,216,474
Linde . . . . . . . . . . . . . . . . . . . . . . . . 2,000 1,087,811
Mannesmann . . . . . . . . . . . . . . . . . . . . . . 14,000 1,379,102
Muenchener Rueckverisicherungs-Gesellschaft . . . . . 2,800 1,282,649
Viag . . . . . . . . . . . . . . . . . . . . . . . . . 1,400 951,834
____________
8,031,667
____________
Ireland--3.6% Bank of Ireland . . . . . . . . . . . . . . . . . . . 127,000 2,350,961
Ryanair, ADS . . . . . . . . . . . . . . . . . . . . . 35,000 (a) 1,028,125
____________
3,379,086
____________
Italy--11.4% Banca Nazionale del Lavoro . . . . . . . . . . . . . . 400,000 (a) 1,060,638
Banca Popolare Di Brescia . . . . . . . . . . . . . . 50,000 1,174,737
ENI . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 1,193,707
Instituto Bancario San Paolo di Torino . . . . . . . . 142,000 2,111,065
Instituto Nazionale delle Assicurazioni . . . . . . . 500,000 1,383,840
Olivetti . . . . . . . . . . . . . . . . . . . . . 1,125,000 (a) 2,750,038
Telecom Italia . . . . . . . . . . . . . . . . . . . . 144,000 1,042,202
____________
10,716,227
____________
Japan--11.6% Daikin Industries . . . . . . . . . . . . . . . . . . 136,000 1,079,328
Honda Motor . . . . . . . . . . . . . . . . . . . . . 30,000 904,782
Hosiden . . . . . . . . . . . . . . . . . . . . . . . 40,000 659,371
Kao . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 1,016,803
Mitsubishi Estate . . . . . . . . . . . . . . . . . . 100,000 910,814
Mitsui Chemicals . . . . . . . . . . . . . . . . . . . 240,000 748,643
NTT Mobile Communications Network . . . . . . . . . . 17 616,717
Nidec . . . . . . . . . . . . . . . . . . . . . . . 8,000 731,409
Nintendo . . . . . . . . . . . . . . . . . . . . . . . 7,000 594,744
Olympus Optical . . . . . . . . . . . . . . . . . . . 72,000 744,507
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- -------------------------------------------------------
____________ ____________
Japan (continued) Ryohin Keikaku . . . . . . . . . . . . . . . . . . . . 7,000 $ 760,017
SHIMANO . . . . . . . . . . . . . . . . . . . . . . . 30,000 666,954
Wacoal . . . . . . . . . . . . . . . . . . . . . . . . 60,000 686,600
Yoshitoni Pharmaceutical Industries . . . . . . . . . 70,000 781,129
____________
10,901,818
____________
Mexico--7.6% Grupo Televisa, GDS . . . . . . . . . . . . . . . . . 140,000 (a) 3,797,500
Telefonos de Mexico, ADR . . . . . . . . . . . . . . . 63,000 3,327,188
____________
7,124,688
____________
Netherlands--4.8% ING Groep . . . . . . . . . . . . . . . . . . . . . . 31,000 1,501,742
Koninklijke Numico . . . . . . . . . . . . . . . . . . 36,000 1,417,930
Koninklijke (Royal) Philips Electronics . . . . . . . 16,000 852,259
Koninklijke (Royal) Philips Electronics, ADR . . . . . 14,000 768,250
____________
4,540,181
____________
Norway--1.7% Merkantildata . . . . . . . . . . . . . . . . . . . . 160,000 1,619,810
____________
Portugal--2.0% Banco Commercial Portugues . . . . . . . . . . . . . . 40,000 1,246,288
Portugal Telecom . . . . . . . . . . . . . . . . . . . 14,000 660,164
____________
1,906,452
____________
South Africa--1.3% Investec . . . . . . . . . . . . . . . . . . . . . . . 13,000 482,857
Liberty Life Association of Africa . . . . . . . . . . 26,000 445,714
Primedia . . . . . . . . . . . . . . . . . . . . . . . 85,000 318,750
____________
1,247,321
____________
Spain--11.6% Adolfo Dominquez . . . . . . . . . . . . . . . . . . . 20,000 (a) 542,999
Aldeasa . . . . . . . . . . . . . . . . . . . . . . . 26,000 886,994
Banco Santander . . . . . . . . . . . . . . . . . . . 185,000 3,392,324
Centros Commerciales Pryca . . . . . . . . . . . . . . 40,000 888,415
Dogi . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 (a) 686,034
Repsol . . . . . . . . . . . . . . . . . . . . . . 22,000 1,105,473
Telefonica . . . . . . . . . . . . . . . . . . . . . . 75,000 3,390,192
____________
10,892,431
____________
Sweden--5.1% Fastighets AB Balder . . . . . . . . . . . . . . . . . 4,400 (a) 41,288
Electrolux, Cl. B . . . . . . . . . . . . . . . . . . 70,000 1,057,266
Netcom , Cl. B . . . . . . . . . . . . . . . . . . . . 28,000 (a) 1,054,566
Skandia Forsakrings . . . . . . . . . . . . . . . . . 119,000 1,522,013
Svenska Handelsbanken, Cl. A . . . . . . . . . . . . . 27,000 1,140,112
____________
4,815,245
____________
Switzerland--3.2% Nestle . . . . . . . . . . . . . . . . . . . . . . 450 959,289
Schweizerische Lebensverisicherungs-und Retenan . . . 1,500 904,885
UBS . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 1,099,926
____________
2,964,100
____________
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- -------------------------------------------------------
____________ ____________
Taiwan--.9% Taiwan Semiconductor Manufacturing, ADS . . . . . . . 57,565 (a) $ 859,877
____________
United Kingdom--11.5% British Petroleum . . . . . . . . . . . . . . . . . . 115,000 1,688,313
British Sky Broadcasting Group . . . . . . . . . . . . 210,000 1,712,000
Colt Telecom . . . . . . . . . . . . . . . . . . . . . 222,000 (a) 2,898,698
Diageo . . . . . . . . . . . . . . . . . . . . . . . . 125,280 1,352,686
Granada . . . . . . . . . . . . . . . . . . . . . . . 71,000 1,070,280
Scottish & Newcastle . . . . . . . . . . . . . . . . . 68,000 828,697
Vodafone . . . . . . . . . . . . . . . . . . . . . . . 90,000 1,205,280
____________
10,755,954
____________
TOTAL COMMON STOCKS
(cost $88,730,828) . . . . . . . . . . . . . . . . . $94,049,158
____________
</TABLE>
<TABLE>
<CAPTION>
Preferred Stocks--1.7%
- -------------------------------------------------------
Brazil; Companhia Energetica de Minas Gerais
(cost $2,299,877) . . . . . . . . . . . . . . . . . 82,384 $ 1,602,111
____________
<S> <C> <C>
TOTAL INVESTMENTS (cost $91,030,705) . . . . . . . . . . . . . . . . . . . . . . . . . . . 101.8% $95,651,269
_______ ____________
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . (1.8%) $ (1,698,218)
_______ ____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $93,953,051
_______ ____________
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $ 91,030,705 $ 95,651,269
Receivable for investment securities sold . . . . . . . . 4,578,780
Dividends receivable . . . . . . . . . . . . . . . . . . 324,524
Receivable for shares of Common Stock subscribed . . . . 95
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 22,916
_____________
100,577,584
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 61,416
Due to Distributor . . . . . . . . . . . . . . . . . . . 49,629
Cash overdraft due to Custodian . . . . . . . . . . . . . 2,007,577
Payable for investment securities purchased . . . . . . . 4,273,207
Payable for shares of Common Stock redeemed . . . . . . . 96,805
Net unrealized depreciation on forward
currency exchange contracts--Note 4(a) . . . . . . . . 54,629
Accrued expenses . . . . . . . . . . . . . . . . . . . . 81,270
_____________
6,624,533
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 93,953,051
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $ 95,651,370
Accumulated undistributed investment income--net . . . . 126,701
Accumulated net realized gain (loss) on investments
and foreign currency transactions . . . . . . . . . . . (6,408,543)
Accumulated net unrealized appreciation (depreciation)
on investments, forward currency exchange contracts
and foreign currency transactions . . . . . . . . . . . 4,583,523
_____________
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 93,953,051
_____________
</TABLE>
NET ASSET VALUE PER SHARE
--------------------
<TABLE>
Class A Class B Class C Class R
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . . $41,637,466 $51,872,695 $397,420 $45,470
Shares Outstanding . . . . . . . . . . . . . . . . . . 3,124,163 3,989,037 31,402 3,413
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . $13.33 $13.00 $12.66 $13.32
_______ _______ _______ _______
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1998
INVESTMENT INCOME
INCOME: Cash dividends (net of $333,189 foreign taxes
<S> <C> <C> <C>
withheld at source) . . . . . . . . . . . . . $ 2,112,975
Interest . . . . . . . . . . . . . . . . . . . . 223,801
____________
Total Income . . . . . . . . . . . . . . . $ 2,336,776
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . 914,927
Distribution fees--Note 3(b) . . . . . . . . . . 494,288
Shareholder servicing costs--Note 3(c) . . . . . 380,438
Custodian fees . . . . . . . . . . . . . . . . . 140,647
Interest expense--Note 2 . . . . . . . . . . . . 100,401
Registration fees . . . . . . . . . . . . . . . . 55,416
Professional fees . . . . . . . . . . . . . . . . 39,937
Directors' fees and expenses--Note 3(d) . . . . . 21,879
Miscellaneous . . . . . . . . . . . . . . . . . . 11,844
____________
Total Expenses . . . . . . . . . . . . . . 2,159,777
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176,999
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments and
foreign currency transactions . . . . . . . . $ 1,587,546
Net realized gain (loss) on forward currency
exchange contracts . . . . . . . . . . . . . . (6,611,990)
____________
Net Realized Gain (Loss) . . . . . . . . . (5,024,444)
Net unrealized appreciation (depreciation)
on investments, forward currency exchange
contracts and foreign currency transactions . 2,812,814
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . (2,211,630)
____________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . $ (2,034,631)
____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
October 31, 1998 October 31, 1997
_______________ _______________
OPERATIONS:
Investment income (loss)--net . . . . . . . . . . . . . . . . . . . . . . . . . . $ 176,999 $ (545,794)
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . (5,024,444) 18,415,535
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 2,812,814 1,661,648
______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . (2,034,631) 19,531,389
______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -------- (676,358)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -------- (149,162)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -------- (1,011)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -------- (429)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,881,717) (8,792,664)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,185,321) (9,418,461)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35,735) (12,410)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,932) (4,409)
______________ ______________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,115,705) (19,054,904)
______________ ______________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,917,170 34,193,355
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,524,765 3,089,712
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296,792 225,535
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,105 73,884
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,559,934 9,128,243
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,726,754 9,154,420
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,819 12,995
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,932 4,838
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (71,212,104) (51,594,393)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,753,575) (17,522,352)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (148,177) (5,622)
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (79,530) (2,168)
______________ ______________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . (11,078,115) (13,241,553)
______________ ______________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . (32,228,451) (12,765,068)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126,181,502 138,946,570
______________ ______________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 93,953,051 $126,181,502
______________ ______________
DISTRIBUTED INVESTMENT INCOME (DISTRIBUTIONS IN EXCESS OF INVESTMENT INCOME)--NET. . $ 126,701 $ (50,298)
______________ ______________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_________________________________
Year Ended Year Ended
October 31, 1998 October 31, 1997
________________ _________________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,605,498 2,080,820
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 607,518 613,045
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,676,922) (3,138,619)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . (463,906) (444,754)
__________ __________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377,290 193,309
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 702,800 619,798
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,208,591) (1,093,382)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . (128,501) (280,275)
__________ __________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,307 14,503
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 2,212 899
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,478) (330)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . 13,041 15,072
__________ __________
Class R
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,028 4,446
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 919 326
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,407) (134)
__________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . (1,460) 4,638
__________ __________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
Class A Shares
_______________________________________________________
Year Ended October 31,
_______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . $16.45 $16.59 $16.10 $15.78 $15.58
_______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . .26 .00(1) .14 .24 .15
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . (.86) 2.24 1.44 .47 .71
_______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . (.60) 2.24 1.58 .71 .86
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . -- (.17) (.25) (.15) (.08)
Dividends from net realized gain on investments . . . . (2.52) (2.21) (.84) (.24) (.58)
_______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . (2.52) (2.38) (1.09) (.39) (.66)
_______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . $13.33 $16.45 $16.59 $16.10 $15.78
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . (4.50%) 15.00% 10.21% 4.72% 5.62%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . 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% .00%(3) .76% 1.38% .95%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . 193.76% 161.62% 176.17% 229.90% 156.98%
Net Assets, end of period (000's Omitted) . . . . . . . $41,637 $59,030 $66,907 $68,584 $79,017
- ------------------------
(1) Amount represents less than $.01 per share.
(2) Exclusive of sales load.
(3) Amount represents less than .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
Class B Shares
_______________________________________________________
Year Ended October 31,
_______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
_______ _______ _______ _______ _______
Net asset value, beginning of period . . . . . . . . . $16.22 $16.37 $15.90 $15.59 $15.49
_______ _______ _______ _______ _______
Investment Operations:
Investment income (loss)--net . . . . . . . . . . . . . (.03)(1) (.14) .00(2) .10 .06
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . (.67) 2.24 1.44 .49 .67
_______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . (.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 . . . . . . . . . . . . $13.00 $16.22 $16.37 $15.90 $15.59
_______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(3) . . . . . . . . . . . . . . . . (5.22%) 14.14% 9.36% 3.96% 4.82%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . 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 (loss) to average net assets . . (.20%) (.76%) .01% .62% .23%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . 193.76% 161.62% 176.17% 229.90% 156.98%
Net Assets, end of period (000's Omitted) . . . . . . . $51,873 $66,781 $71,983 $72,215 $76,897
- ------------------------
(1) Based on average shares outstanding at each month end.
(2) Amount represents less than $.01 per share.
(3) Exclusive of sales load.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
Class C Shares
____________________________________________
Year Ended October 31,
____________________________________________
PER SHARE DATA: 1998 1997 1996 1995(1)
_______ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $15.87 $16.20 $15.90 $15.85
_______ _______ _______ _______
Investment Operations:
Investment income (loss)--net . . . . . . . . . . . . . . . . . . . . . (.03)(2) (.12)(2) .28 (.01)
Net realized and unrealized gain (loss) on investments . . . . . . . . (.66) 2.18 1.14 .06
_______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . (.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 . . . . . . . . . . . . . . . . . . . . $12.66 $15.87 $16.20 $15.90
_______ _______ _______ _______
TOTAL INVESTMENT RETURN (3). . . . . . . . . . . . . . . . . . . . . . . . (5.34%) 14.17% 9.36% .32%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . . . . . . . . 2.04% 2.10% 1.90% .35%(4)
Ratio of interest expense to average net assets . . . . . . . . . . . . .08% .01% -- --
Ratio of net investment income (loss) to average net assets . . . . . . (.19%) (.73%) (.19%) (.09%)(4)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 193.76% 161.62% 176.17% 229.90%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $397 $291 $53 $1
</TABLE>
- ---------
(1) From September 5, 1995 (commencement of initial offering) to October 31,
1995.
(2) Based on average shares outstanding at each month end.
(3) Exclusive of sales load.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
Class R Shares
____________________________________________
Year Ended October 31,
____________________________________________
PER SHARE DATA: 1998 1997 1996 1995(1)
_______ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $16.43 $16.59 $16.11 $16.04
_______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .33 .17 .26 .01
Net realized and unrealized gain (loss) on investments . . . . . . . . (.92) 2.10 1.35 .06
_______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . (.59) 2.27 1.61 .07
_______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . -- (.22) (.29) --
Dividends from net realized gain on investments . . . . . . . . . . . . (2.52) (2.21) (.84) --
_______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (2.52) (2.43) (1.13) --
_______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $13.32 $16.43 $16.59 $16.11
_______ _______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . . . . . . . (4.44%) 15.21% 10.45% .44%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . . . . . . . . 1.08% 1.09% .87% .18%(2)
Ratio of interest expense to average net assets . . . . . . . . . . . . .08% .01% -- --
Ratio of net investment income to average net assets . . . . . . . . . .70% .21% .94% .08%(2)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 193.76% 161.62% 176.17% 229.90%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $45 $80 $4 $1
- ---------
(1) From September 5, 1995 (commencement of initial offering) to October 31,
1995.
(2) Not annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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 three 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.
The Fund's Directors approved, effective March 2, 1998, a change of the Fund's
name from "Dreyfus Premier International Growth Fund, Inc." to "Dreyfus Premier
International Growth Fund."
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 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.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (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 receives net
earnings credits based on available cash balances left on deposit.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, 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.
The average daily amount of borrowings outstanding during the period ended
October 31, 1998 was approximately $1,649,900 with a related weighted average
annualized interest rate of 6.09%.
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
$158,338 during the period ended October 31, 1998 for commissions earned on
sales of the Fund's shares.
(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. During the period ended October 31, 1998,
Class B and Class C shares were charged $491,973 and $2,315, 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 Class A, Class B and Class C shares
and providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended October 31, 1998,
Class A, Class B and Class C shares were charged $140,022, $163,991 and $772,
respectively, pursuant to the Shareholder Services Plan.
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 October 31, 1998, the Fund was charged $46,465 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 October 31, 1998, amounted to $229,545,477 and $258,087,155,
respectively.
The following summarizes open forward currency exchange contracts at October
31, 1998:
Foreign
<TABLE>
Currency Unrealized
Forward Currency Exchange Contracts Amounts Proceeds Value (Depreciation)
_________________________________ ______________ ___________ _____________ ____________
Sales:
_____
<S> <C> <C> <C> <C>
British Pounds, expiring 2/2/99 . . . . . . . . . 6,000,000 $ 9,991,500 $10,000,800 $ (9,300)
German Deutsche Marks, expiring 2/2/99 . . . . . 77,000,000 46,683,643 46,728,972 (45,329)
_________
TOTAL . . . . . . . . . . . . . . . . . . . . $(54,629)
_________
</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. When executing forward currency exchange contracts, the Fund is
obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The Fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the Fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The Fund realizes a gain if the value of the
contract increases between those dates. The Fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract.
(B) At October 31, 1998, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $4,565,935, consisting
of $12,051,448 gross unrealized appreciation and $7,485,513 gross unrealized
depreciation.
At October 31, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier International Growth
Fund (one of the Series constituting Dreyfus Premier International Funds, Inc.)
as of October 31, 1998, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years in
the period then ended, and financial highlights for each of the years indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1998 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier International Growth Fund at October 31, 1998, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the indicated years, in conformity with generally accepted accounting
principles.
New York, New York
December 8, 1998
DREYFUS PREMIER INTERNATIONAL GROWTH FUND
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund elects to provide each
shareholder with their portion of the Fund's foreign taxes paid and the income
sourced from foreign countries. Accordingly, the Fund hereby makes the following
designations regarding its fiscal year ended October 31, 1998:
-- the total amount of taxes paid to foreign countries was $333,189
-- the total amount of income sourced from foreign countries was $114,728.
As required by Federal tax law rules, shareholders will receive notification
of their proportionate share of foreign taxes paid and foreign sourced income
for the 1998 calendar year with Form 1099-DIV which will be mailed by January
31, 1999.
For Federal tax purposes the Fund hereby designates $1.15 per share as a
long-term capital gain distribution of the $2.515 per share paid on December 11,
1997.
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
Printed in U.S.A. 092/633AR9810
ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS
PREMIER INTERNATIONAL
GROWTH FUND
- -------------------------------------------------------------------------------
OCTOBER 31, 1998
(reg.tm)
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is with great pride that I introduce the writer of the following letter,
Mandy Tong of Hamon U.S. Investment Advisors Limited, the sub-investment adviser
of the Dreyfus Premier Greater China Fund.
Mandy has over nine years experience as an analyst covering major Southeast
Asian equity markets. During the period, she worked for both a large European
and American house providing research coverage on the key sectors in Hong Kong.
Apart from research work, she gained considerable investment banking experience
during the opening of the Shanghai B share market. In 1994, Mandy joined the
fund management department of a private Swiss bank to gain greater exposure to
the investment management industry. Since joining Hamon in 1995, her focus has
been on North Asian economies and companies. She is responsible for stock
selection and research in the Hong Kong, China and Taiwan markets and manages
several corporate and individual portfolios.
We have great confidence in Hamon's expertise in the highly specialized field
of investment in Greater China.
Sincerely,
[Stephen E. Canter signature logo]
Stephen E. Canter
Chief Investment Officer
November 16, 1998
New York, N.Y.
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to send you this first annual report on the Dreyfus Premier
Greater China Fund, which began operations May 12, 1998 and ended its first
fiscal year October 31, 1998.
The Dreyfus Premier Greater China Fund (GCF) was formed in May 1998 to seek
long-term capital appreciation by investing in the Greater China region, which
consists of The People's Republic of China (China), Hong Kong and Taiwan. With
approximately one quarter of the world's population, combined foreign exchange
reserves in excess of $325 billion; and an economic growth rate higher than that
of its Western counterparts, we believe the Greater China region offers
significant opportunities for capital growth. The Fund was launched
approximately nine months after the onset of the Asian crisis that brought about
major corrections in the equity markets across Asia. We believe that our
disciplined stock selection process, in-depth knowledge of Asia, and presence on
the ground in Greater China should enable us to identify attractive investments
in the current economic environment.
In the face of highly volatile market conditions, we have invested cautiously,
focusing on companies with well defined positions in their industries that
possess the management capability and financial strength to withstand the impact
of the Asian crisis as well as to prosper in the new economic environment. We
have also adopted a defensive use of the Fund's cash position. This strategy has
served the Fund extremely well. For the fiscal year ended October 31, 1998,
Class A shares have risen since inception by 2.24%, Class B Shares by 1.84%,
Class C shares by 1.84%, and Class R Shares by 2.32%.* Over the same period, the
benchmark Morgan Stanley Capital International All Country (AC) Far East Free
Ex-Japan Index declined by 8.23%.** The Fund also showed strong outperformance
of the Taiwan: Weighted Index (-13.44%) and China (-31.20% Shanghai B) indices,
while the Hong Kong market rose 3.18% over the period.
ECONOMIC AND MARKET OVERVIEW
The Asian crisis which began last July with the devaluation of the Thai baht
has evolved into the deepest recession in Asia since World War II and has been
characterized by high interest rates, falling asset prices, a huge number of
business failures, and rising unemployment. While Greater China has not been as
severely damaged by the crisis as have the economies of Korea, Indonesia,
Thailand and Malaysia, it has not been immune from its negative effects.
In defending its pegged exchange rate system, Hong Kong has had to sustain
high interest rates and face sharply declining equity and property values. The
government is projecting negative Gross Domestic Product (GDP) growth of 5%, and
unemployment currently stands at 5.3%, a 15-year high. We expect economic growth
to be flat in 1999 but it does appear that the residential property market has
bottomed, having fallen approximately 60% from its high of last year. It further
appears that the stock market has begun a recovery and businesses with strong
balance sheets are entering 1999 well provisioned.
China has maintained its commitment not to devalue its currency with the
objective of providing stability to Asia. The government has also implemented
massive infrastructure spending to stimulate growth and has embarked upon a
number of reforms in the areas of home ownership, banking, and government
structure designed to improve economic efficiency. These measures appeared to be
having a positive impact: third quarter GDP growth rose to 7.6% compared to 7%
in the first quarter of this year. External trade, however, has suffered as a
result of shrinking demand from within Asia rather than declining export
competitiveness.
<PAGE>
The Hong Kong stock market is currently trading on a multiple of 15 times
prospective 1999 earnings and, in our view, appears fairly valued at this level.
The market will be underpinned, at least in the near term, by tight scrip
liquidity following the Hong Kong government's U.S. $15 billion buying program
in August. In the China-related markets, a number of "red chip" companies (Hong
Kong listed and headquartered companies with mainland-backed shareholding
structures) have capitalized on the recent rally to raise funds for acquisitions
or to repay debt. However, compared to asset injection exercises prior to the
Asian crisis, the earnings enhancement impact is fairly limited due to smaller
acquisitions at less attractive pricing. We expect this trend to continue in the
coming year.
Taiwan' s strength as an outsourcing base for specialized electronics products
has remained strong, but export competitiveness of commodity items such as steel
and plastics has been under pressure. Consequently, the government has allowed
the New Taiwan (NT) dollar to depreciate by approximately 5% against the U.S.
dollar over the past year to bolster competitiveness with countries such as
Korea and improve margins on exports to the U.S. Recently, the government
introduced a mix of monetary and fiscal measures, including a reduction in bank
reserve requirements, and approved an NT$190 billion (U.S. $6.2 billion)
stabilization fund as a means to restore confidence in the market following a
recent spate of securities defaults and business failures. Given the importance
of the electronics sector in Taiwan, we also see the stabilization and possible
rise of memory chip prices as very positive for the market.
PORTFOLIO FOCUS
Our strategy is to seek undervalued securities with good management, strong
cash flow, sound business fundamentals and improving earnings momentum. We
intend to remain well diversified in terms of industry, and seek to capture the
business strengths and competitive advantages of the individual economies within
the region. Under recent conditions, this has been reflected in a high
electronics sector weighting in Taiwan; a significant industrial sector
weighting in China; and an emphasis on conglomerates and service and property
sectors in Hong Kong as well as "red chip" and H shares (Chinese companies with
Hong Kong listings) that we consider well positioned.
In Hong Kong, while some fundamentals appear to have improved, it is too early
to say that the economy has bottomed. Currently, we have been gradually shifting
the portfolio from a defensive posture towards a more neutral position. We
expect to increase exposure to the property sector in light of falling interest
rates. We believe that developers with large exposure to the mass residential
sector and cheap land banks are most likely to benefit under this scenario. We
have also favored conglomerates, such as Hutchison Whampoa, that also benefit
from their non-Asian businesses.
The Chinese National Peoples Congress, which met in March 1998, laid down
China' s broad economic plans for the next five years. We are particularly
interested in the housing, infrastructure, technology and agriculture sectors
which should benefit from proposed reforms. However, our strategy remains highly
selective, focusing on companies that have strong parental/provincial support,
transparency and good earnings growth.
In Taiwan our main focus is on electronics and infrastructure. We believe
Taiwan will remain one of the leading international outsourcing bases for the
global electronics industry given its high technical expertise, competitive cost
base, relatively stable investment environment and good infrastructure support.
Accordingly, we are targeting industry leaders in PC/notebook assembly as well
as in component manufacturing that may benefit from our view on memory chip
pricing. We expect that infrastructure should be another growth area given that
the government intends to use public works to support its economic growth target
of 5% for 1999.
<PAGE>
As manager of the Fund, I look forward to writing to you next spring in the
Semi-Annual Shareholder's Letter to update you again on market developments, our
strategy and performance.
Sincerely,
[Mandy Tong signature logo]
Mandy Tong
Portfolio Manager
Hamon US Investment Advisors Limited
November 16, 1998
Hong Kong
*Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares, or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
**SOURCE: Morgan Stanley & Co. Incorporated - The Morgan Stanley Capital
International All Country (AC) Far East Free Ex Japan Index, which is the
property of Morgan Stanley & Co. Incorporated, is an unmanaged, market
capitalization-weighted index of nine countries considered representative of the
Far East region. The Index excludes reinvested dividends.
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND OCTOBER 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER GREATER
CHINA FUND CLASS A SHARES, CLASS B SHARES, CLASS C SHARES AND CLASS R SHARES AND
THE MORGAN STANLEY CAPITAL INTERNATIONAL ALL COUNTRY (AC) FAR EAST FREE EX JAPAN
INDEX
[Exhibit A:
Dollars
$10,232
Dreyfus Premier Greater China Fund (Class R Shares)
$10,084
Dreyfus Premier Greater China Fund (Class C Shares)
$9,784
Dreyfus Premier Greater China Fund (Class B Shares)
$9,638
Dreyfus Premier Greater China Fund (Class A Shares)
$8,591
Morgan Stanley Capital International All Country (AC) Far East Free Ex Japan
Index*
*Source: Morgan Stanley & Co. Incorporated ]
<TABLE>
Actual Aggregate Total Returns
- -----------------------------------------------------------------------------
Class A Shares Class B Shares
_______________________________________________________ _______________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 10/31/98 Sales Charge Sales Charge (5.75%) Period Ended 10/31/98 Redemption Redemption*
_____________________ _______________ ___________________ _______________________ _____________ _____________________
<S> <C> <C> <C> <C> <C>
From Inception (5/12/98) 2.24% (3.62)% From Inception (5/12/98) 1.84% (2.16)%
Class C Shares Class R Shares
_______________________________________________________ _______________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming No Charge Upon
Period Ended 10/31/98 Redemption Redemption** Period Ended 10/31/98
_____________________ _______________ ___________________ _______________________
From Inception ( 5/12/98) 1.84% 0.84% From Inception ( 5/12/98) 2.32%
- ------------------------
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Class A, Class
B, Class C and Class R shares of Dreyfus Premier Greater China Fund on 5/12/98
(Inception Date) to a $10,000 investment made in the Morgan Stanley Capital
International All Country (AC) Far East Free Ex Japan Index on that date. For
comparative purposes, the value of the Index on 4/30/98 is used as the beginning
value on 5/12/98. All dividends and capital gain distributions are reinvested.
The Fund' s performance shown in the line graph takes into account the maximum
initial sales charge on Class A shares, the maximum contingent deferred sales
charge on Class B and Class C shares and all other applicable fees and expenses
on all classes. The Morgan Stanley Capital International All Country (AC) Far
East Free Ex Japan Index, which is the property of Morgan Stanley & Co.
Incorporated, is an unmanaged, market capitalization-weighted index of nine
countries considered representative of the Far East region. The Index excludes
reinvested dividends and does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights section
of the Prospectus and elsewhere in this report.
*The maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<PAGE>
<TABLE>
<CAPTION>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTSOCTOBER 31, 1998
Common Stocks--45.2% Shares Value
- -------------------------------------------------------
___________ __________
<S> <C> <C> <C> <C>
China--7.3% First Tractor Company . . . . . . . . . . . . . . . . 52,000 $ 16,450
Guangdong Kelon Electric . . . . . . . . . . . . . . . 39,000 33,237
Guangzhou Pharmaceutical Company . . . . . . . . . . . 210,000 23,591
Qingling Motors . . . . . . . . . . . . . . . . . . . 82,000 15,141
Shanghai Zhenhua Port Machinery . . . . . . . . . . . 52,000 21,840
Zhehuang Expressway . . . . . . . . . . . . . . . . . 210,000 41,216
___________
151,475
___________
Hong Kong--20.3% CLP Holdings . . . . . . . . . . . . . . . . . . . . . 6,000 33,701
Cheung Kong . . . . . . . . . . . . . . . . . . . . . 3,000 20,531
Cheung Kong Infrastructure . . . . . . . . . . . . . . 10,000 25,437
China Foods Holdings . . . . . . . . . . . . . . . . . 60,000 15,882
China Merchants Holdings International . . . . . . . . 14,000 9,129
China Resources Beijing Land . . . . . . . . . . . . . 34,000 9,110
China Resources Enterprise . . . . . . . . . . . . . . 12,000 16,037
Citic Pacific . . . . . . . . . . . . . . . . . . . . 5,000 12,299
HSBC Holdings . . . . . . . . . . . . . . . . . . . . 1,200 27,503
Hang Seng Bank . . . . . . . . . . . . . . . . . . . . 2,800 24,224
Hang Seng Index PW 3/99 . . . . . . . . . . . . . . . 250,000 (a) 5,778
Hang Seng Index PW 3/99 B . . . . . . . . . . . . . . 60,000 (a) 1,015
Hong Kong Telecommunications . . . . . . . . . . . . . 7,200 14,410
Hutchison Whampoa . . . . . . . . . . . . . . . . . . 5,000 35,832
Johnson Electric Holdings . . . . . . . . . . . . . . 6,000 13,945
Legend Holdings . . . . . . . . . . . . . . . . . . . 46,000 15,443
Moulin International Holding . . . . . . . . . . . . . 196,000 21,765
Ng Fung Hong . . . . . . . . . . . . . . . . . . . . . 44,000 38,918
Shanghai Industrial Holdings . . . . . . . . . . . . . 9,000 20,802
Sun Hung Kai Properties . . . . . . . . . . . . . . . 2,000 13,881
Swire Pacific, Cl. A . . . . . . . . . . . . . . . . . 3,000 15,921
Vitasoy International Holdings . . . . . . . . . . . . 76,500 30,128
___________
421,691
___________
Taiwan--17.6% Advanced Semiconductor Engineering . . . . . . . . . . 11,000 (a) 18,998
Asustek Computer . . . . . . . . . . . . . . . . . . . 4,504 (a) 33,337
CTCI . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 (a) 15,127
Cathay Life Insurance . . . . . . . . . . . . . . . . 3,000 (a) 10,594
Chinatrust Commercial Bank . . . . . . . . . . . . . . 29,520 (a) 20,575
Compal Electronics . . . . . . . . . . . . . . . . . . 9,000 (a) 28,034
Compeq Manufacturing . . . . . . . . . . . . . . . . . 5,800 (a) 36,848
Delpha Construction . . . . . . . . . . . . . . . . . 17,000 (a) 18,036
Fortune Electric . . . . . . . . . . . . . . . . . . . 22,000 (a) 33,042
Kindom Construction . . . . . . . . . . . . . . . . . 19,000 (a) 20,626
Nien Hsing Textile . . . . . . . . . . . . . . . . . . 12,000 (a) 24,611
Pacific Electrical Wire & Cable . . . . . . . . . . . 2,284 (a) 1,655
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED)OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- -------------------------------------------------------
___________ __________
Taiwan (continued) Phoenixtec Power . . . . . . . . . . . . . . . . . . . 8,200 (a) $ 17,323
Standard Foods Taiwan . . . . . . . . . . . . . . . . 25,000 (a) 50,887
Taiwan Semiconductor Manufacturing . . . . . . . . . . 17,800 (a) 35,957
___________
365,650
___________
TOTAL COMMON STOCKS
(cost $886,322) . . . . . . . . . . . . . . . . . $ 938,816
___________
</TABLE>
<TABLE>
<CAPTION>
Principal
Short-Term Investments--43.3% Amount
- -------------------------------------------------------
___________
<S> <C> <C> <C> <C>
U.S. Treasury Bills--23.5% 3.85%, 1/21/99 . . . . . . . . . . . . . . . . . . . . $ 494,000 $ 489,026
___________
Time Deposits--19.8% Bank of New York (London),
4.87%, 11/6/98 . . . . . . . . . . . . . . . . . 204,168 204,168
Bank of New York (Hong Kong),
6%, 11/9/98 . . . . . . . . . . . . . . . . . . . 797,210 (b) 102,939
Bank of New York (Hong Kong),
5%, 11/16/98 . . . . . . . . . . . . . . . . . . . 799,184 (b) 103,194
___________
410,301
___________
TOTAL SHORT-TERM INVESTMENTS
(cost $899,938) . . . . . . . . . . . . . . . . . $ 899,327
___________
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (cost $1,786,260). . . . . . . . . . . . . . . . . . . . . . . . . . . . 88.5% $1,838,143
_______ ___________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.5% $ 239,920
_______ ___________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $ 2,078,063
_______ ___________
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
(b) Denominated in Hong Kong dollars.
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998
Cost Value
___________ ___________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $1,786,260 $1,838,143
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 178,134
Cash denominated in foreign currencies . . . . . . . . . 71,812 71,821
Dividends and interest receivable . . . . . . . . . . . . 1,505
Prepaid expenses--Note 1(f) . . . . . . . . . . . . . . . 70,136
Due from The Dreyfus Corporation . . . . . . . . . . . . 12,513
___________
2,172,252
___________
LIABILITIES: Due to Distributor . . . . . . . . . . . . . . . . . . . 654
Payable for investment securities purchased . . . . . . . 44,495
Accrued expenses and other liabilities . . . . . . . . . 49,040
___________
94,189
___________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,078,063
___________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $2,033,182
Accumulated undistributed investment income--net . . . . 19,322
Accumulated net realized gain (loss) on investments and
foreign currency transactions . . . . . . . . . . . . . (26,204)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions . . . 51,763
___________
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,078,063
___________
</TABLE>
NET ASSET VALUE PER SHARE
--------------------
<TABLE>
Class A Class B Class C Class R
___________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . . $1,442,317 $ 227,293 $ 203,742 $ 204,711
Shares Outstanding . . . . . . . . . . . . . . . . . . 112,863 17,851 16,000 16,000
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . $12.78 $12.73 $12.73 $12.79
_______ _______ _______ _______
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998
INVESTMENT INCOME
<TABLE>
<S> <C> <C> <C>
INCOME: Interest . . . . . . . . . . . . . . . . . . . . $ 36,695
Cash dividends (net of $111 foreign taxes
withheld at source) . . . . . . . . . . . . . 5,081
_________
Total Income . . . . . . . . . . . . . . . $ 41,776
EXPENSES: Investment advisory fee--Note 2(a) . . . . . . . 11,677
Auditing fees . . . . . . . . . . . . . . . . . . 20,000
Registration fees . . . . . . . . . . . . . . . . 19,129
Custodian fees . . . . . . . . . . . . . . . . . 12,944
Prospectus and shareholders' reports . . . . . . 3,988
Shareholder servicing costs--Note 2(c) . . . . . 2,303
Organization expenses--Note 1(f) . . . . . . . . 2,000
Distribution fees--Note 2(b) . . . . . . . . . . 1,435
Directors' fees and expenses--Note 2(d) . . . . . 161
Legal fees . . . . . . . . . . . . . . . . . . . 120
Miscellaneous . . . . . . . . . . . . . . . . . . 2,818
_________
Total Expenses . . . . . . . . . . . . . . 76,575
Less--expense reimbursement from Dreyfus due to
undertaking--Note 2(a) . . . . . . . . . . . . (54,121)
_________
Net Expenses . . . . . . . . . . . . . . . 22,454
_________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,322
_________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments and
foreign currency transactions . . . . . . . . $(26,428)
Net realized gain (loss) on forward currency
exchange contracts . . . . . . . . . . . . . . 224
_________
Net Realized Gain (Loss) . . . . . . . . . (26,204)
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions . 51,763
_________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 25,559
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $ 44,881
_________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,322
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26,204)
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . 51,763
__________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . . . . . . . . . . 44,881
__________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,413,371
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222,500
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,689)
__________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . . . . . . . . . . . . . . 2,033,182
__________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,078,063
NETT ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --
__________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,078,063
__________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,322
__________
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998
CAPITAL SHARE TRANSACTIONS:
Class A
Shares sold . . . . . . . . . . . . . . . . . 113,093
Shares redeemed . . . . . . . . . . . . . . . (230)
________
Net Increase (Decrease) in Shares Outstand 112,863
________
Class B
Shares sold . . . . . . . . . . . . . . . . . 17,851
________
Class C
Shares sold . . . . . . . . . . . . . . . . . 16,000
________
Class R
Shares sold . . . . . . . . . . . . . . . . . 16,000
________
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
<CAPTION>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for the period from May 12, 1998 (commencement of
operations) to October 31, 1998. This information has been derived from the
Fund's financial statements.
PER SHARE DATA: Class A Class B Class C Class R
________ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $12.50 $12.50 $12.50 $12.50
_______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .13 .08 .08 .14
Net realized and unrealized gain (loss) on investments . . . . . . . . .15 .15 .15 .15
_______ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .28 .23 .23 .29
_______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $12.78 $12.73 $12.73 $12.79
_______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . . . . . . . . . . . . . 2.24%(2) 1.84%(2) 1.84%(2) 2.32%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(1) . . . . . . . . . . . . . . 1.08% 1.44% 1.43% .96%
Ratio of net investment income to average net assets(1) . . . . . . . . 1.04% .69% .68% 1.16%
Decrease reflected in above expense ratio due to undertakings
by Dreyfus(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.75% 2.75% 2.75% 2.75%
Portfolio Turnover Rate(1) . . . . . . . . . . . . . . . . . . . . . . 10.65% 10.65% 10.65% 10.65%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $1,442 $227 $204 $205
- ---------------
(1) Not annualized.
(2) Exclusive of sales load.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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 three series including the Fund which commenced operations on
May 12, 1998. 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 October 31, 1998, MBC Investment Corp., an indirect subsidiary of Mellon
Bank Corporation, held the following shares:
Class A...........................................112,000
Class C............................................16,000
Class B............................................16,000
Class R............................................16,000
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 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.
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 received net
earnings credits of $1,646 during the period ended October 31, 1998 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, if any, 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.
(F) OTHER: Organization expenses paid by the Fund are included in prepaid
expenses and are being amortized to operations from May 12, 1998, the date
operations commenced, over the period during which it is expected that a benefit
will be realized, not to exceed five years. At October 31, 1998, the unamortized
balance of such expenses amounted to $18,000.
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2--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 had undertaken from May
12, 1998 through October 31, 1998 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, taxes, brokerage,
commitment fees, interest on borrowings and extraordinary expenses, exceeded an
annual rate of 2.25% of the value of the Fund's average daily net assets. The
expense reimbursement, pursuant to the undertaking, amounted to $54,121 during
the period ended October 31, 1998.
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. During the period ended October 31, 1998,
Class B and Class C shares were charged $745 and $690, 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 Class A, Class B and Class C shares
and providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended October 31, 1998,
Class A, Class B and Class C shares were charged $1,626, $249 and $230,
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 October 31, 1998, the Fund was charged $85 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.
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3--SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended October 31, 1998, amounted to $966,611 and $57,014,
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 nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gain on
each open contract. At October 31, 1998, there were no open forward currency
exchange contracts.
(B) At October 31, 1998, accumulated net unrealized appreciation on
investments was $51,883 consisting of $91,736 gross unrealized appreciation and
$39,853 gross unrealized depreciation.
At October 31, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
<PAGE>
DREYFUS PREMIER GREATER CHINA FUND
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS PREMIER GREATER CHINA FUND
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier Greater China Fund
(one of the series constituting Dreyfus Premier International Funds, Inc.) as of
October 31, 1998, and the related statements of operations and changes in net
assets and financial highlights for the period from May 12, 1998 (commencement
of operations) to October 31, 1998. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1998 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Greater China Fund at October 31, 1998, and the results of its
operations, the changes in its net assets and the financial highlights for the
period from May 12, 1998 to October 31, 1998, in conformity with generally
accepted accounting principles.
New York, New York
December 8, 1998
<PAGE>
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
Printed in U.S.A. 130/170AR9810
ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
GREATER CHINA
FUND
- -------------------------------------------------------------------------------
OCTOBER 31, 1998
(reg.tm)
<PAGE>
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
This first report to shareholders of Dreyfus Premier Global Allocation Fund
gives me an opportunity to welcome you as a shareowner and to introduce the
Fund' s portfolio manager, Lex C. Huberts. Lex Huberts is the Director of Asset
Allocation Strategies for Mellon Capital Management Corporation. Before assuming
his present responsibilities, Lex was Mellon Capital's Director of Research.
Prior to joining Mellon Capital, Lex worked for Concord Capital in San Mateo,
CA, Zacks Investment Research in Chicago, Amro Bank in Amsterdam, the
Netherlands, and the Dutch Ministry of Finance.
Lex received his MBA from Tilburg University in the Netherlands and is a
Chartered Financial Analyst. In 1995, Lex was awarded the Graham and Dodd Scroll
for outstanding financial research.
We have full confidence in Lex's ability to allocate assets in global markets
for Dreyfus investors.
Sincerely,
[Steven E. Canter signature]
Steven E. Canter
Chief Investment Officer
November 27, 1998
New York, NY
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report for Dreyfus Premier Global
Allocation Fund since its inception on June 29, 1998. For the annual reporting
period ended October 31, 1998, the performance for each class of shares is shown
in the following table:
Total Return*
____________
Class A shares -3.44%
Class B shares -3.68%
Class C shares -3.68%
Class R shares -3.36%
The global balanced benchmark, consisting 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 1 Month CD Index),
returned 1.39%.**
The Fund uses a quantitative model to attempt to exploit perceived
misvaluations in global capital markets. The strategy actively allocates across
the equity, fixed income and cash markets of the U.S., Japan, the U.K., Germany,
France, Canada, Australia, Switzerland and the Netherlands. The Fund's objective
is to outperform a balanced benchmark consisting of 60% global equities, 30%
global bonds and 10% cash.
ECONOMIC AND MARKET REVIEW
Since the inception of the Fund at the end of June 1998, the world's economic
and market environment has changed dramatically. The U.S. and European stock
markets climbed to record highs in July 1998, only to be followed by a
significant correction, which affected virtually all global equity markets. Bond
yields around the developed markets were driven to record lows as investors
moved out of the volatile equity markets and into the potentially safer haven of
the bond and money markets.
During the summer of 1998, a series of events increased uncertainty in the
financial markets, severely challenging the risk tolerance of long-term
investors globally. We saw turmoil in Indonesia and Malaysia. We had the bombing
of the U.S. embassies in Africa and the subsequent retaliatory military strikes
by the United States. Russia was and still is in the midst of political turmoil
and defaulted on its debt. The U.S. President was under fire all summer and is
facing an impeachment inquiry. Moreover, in this time of uncertainty we also had
changes of leadership in Japan and Germany.
These events rocked financial markets and resulted in the near-collapse of a
large U.S.-based hedge fund, which in turn led banks to reduce the extension of
credit to risky enterprises. With the Asian currency crisis spreading and the
market correction in August, the U.S. economy may not escape without any pain.
Consumers could decrease spending which, in combination with a decline in
exports, may have significant effects on corporate earnings. Capital spending
and export growth are likely to hurt also.
On the other hand, the U.S. economy has not been in better shape for decades.
The economy continues to experience strong growth with low inflation that is
driven by productivity gains, consumer spending and low commodity prices. The
Federal Reserve and other central banks responded quickly to the global credit
crunch and poor liquidity by decreasing short-term interest rates. As a result,
the global equity markets have rebounded and liquidity is returning to the
markets.
Economic conditions in Japan have significantly worsened since the inception
of the Fund. When the new Obuchi government took over in late June, there was a
brief jump in stock prices. However, the new government continues to move slowly
on the badly needed structural reforms in the financial industry. On September
9, Japanese short-term rates were lowered 25 basis points in order to spur
economic growth, and the Bank of Japan's monetary policy appears driven by a
genuine desire to provide ample liquidity.
The European equity markets began the year with the highest returns around the
world due to the anticipated benefits to European competitiveness from the
European Monetary Union (EMU). With the EMU, some European member countries will
adopt a single currency called the Euro on December 31, 1998, and pursue a
coordinated monetary policy. In order to qualify to convert into the Euro,
member countries need to follow strict fiscal guidelines. In addition to the
benefits of fiscal discipline, there are other structural reforms such as labor
market reforms which will benefit corporate earnings. The European markets were
hit the hardest from the economic crisis in Russia, due to their closer economic
ties.
THE FUND'S STRATEGY AND PERFORMANCE
The Fund' s strategy considers the long-term prospects of equity and bond
markets around the world, targeting global equity market exposure of 60% on
average. As our economic outlook and our perception of relative values change,
so will the stance of your Fund. The Fund currently is diversified among 23
equity markets and five bond markets. Our performance suffered during this
period due to the sharp decline in global equity markets, for the Fund was
weighted an average of 76% in equities. We believed then and still believe the
decline in equity prices was unwarranted, given the current economic outlook and
consensus earnings expectations. Equity prices declined far more than any
downward revisions in earnings expectations, and bond prices rose; therefore we
viewed this selloff as a strong buying opportunity. In response to these market
conditions, we increased the equity exposure from 69% at the inception of the
Fund to approximately 79% through the end of October.
The Japanese equity market was our largest overweight position at 12% above
the benchmark weight and the Japanese bond market is our largest underweight at
6% below the benchmark. The Japanese equity market has been trading at
historically cheap levels versus Japanese bonds. With Japanese Government bonds
yielding less than 1%, we believe Japanese equities offer better value. If these
markets return to equilibrium price levels, with Japanese and global investors
increasing their equity exposures at the expense of bonds and cash, there could
be considerable opportunity to add value.
We believe that U.S. equities, which had been slightly overvalued in
comparison to U.S. bonds when the Fund had its inception, have become
undervalued since the markets diverged in August. We responded by selling 3% of
U.S. bonds and purchasing 3% of U.S. stocks. As of the end of October, the Fund
holds 26% of the portfolio in U.S. stocks versus the benchmark weight of 30%.
The Fund remains somewhat underweighted in U.S. equities in order to finance
even more attractive allocations in other regions. The Fund holds 10% in U.S.
bonds versus the benchmark weight of 9%.
At the end of October, the Fund was overweight equities in Continental Europe
and underweight equities in the U.K. We view Swiss equities as particularly
attractive, relative to the rest of the world. The Fund holds 10% in Swiss
equities versus the benchmark of 2%. We also believe German equities have become
much more attractive, since the market declined due to the economic crisis in
Russia. We increased our overweight to German equities to 6% as the market sold
off.
Our currency hedging strategy seeks to add value by taking advantage of
differences in real interest rates (inflation-adjusted) across countries, which
arise from differing Central Bank policies. We hedged our entire Dutch Guilder
and Swiss Franc currency exposure as well as a large portion of our Japanese Yen
exposure. Our currency hedging strategy hurt the Fund's performance since the
U.S. dollar weakened during the period.
We believe the selloff in the global equity markets can create long-term
opportunities. Included in this report is a series of detailed statements about
your Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund. We
look forward to reporting on a more tranquil global environment in the future.
Sincerely,
[Lex C. Huberts signature]
Lex C. Huberts
Portfolio Manager
November 27, 1998
San Francisco, CA
*Total return includes reinvestment of dividends and any capital gains paid,
and does not take into consideration the maximum initial sales charge in the
case of Class A shares, or the applicable contingent deferred sales charge
imposed on redemptions in the case of Class B and Class C shares.
**SOURCE (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, Europe, 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 a fixed
income index and is a market-capitalization benchmark that tracks the
performance and covers debt issues of 14 government bond markets. The Salomon
Smith Barney 1 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.
<TABLE>
<CAPTION>
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS OCTOBER 31, 1998
Common Stocks--30.5% Shares Value
- ------------------------------------------------------- ____________ ___________
<S> <C> <C> <C> <C>
Austria--.1% Bank Austria . . . . . . . . . . . . . . . . . . . . . 100 $ 5,441
OMV . . . . . . . . . . . . . . . . . . . . . . . . . 100 9,380
____________
14,821
____________
Belgium--.8% Barco . . . . . . . . . . . . . . . . . . . . . . . . 100 26,669
Electrabel . . . . . . . . . . . . . . . . . . . . . . 100 36,885
Fortis . . . . . . . . . . . . . . . . . . . . . . . . 100 28,747
Groupe Bruxelles Lambert . . . . . . . . . . . . . . . 100 18,560
KBC Bancassurance . . . . . . . . . . . . . . . . . . 200 13,964
Solvay . . . . . . . . . . . . . . . . . . . . . . . . 100 7,845
Tractebel . . . . . . . . . . . . . . . . . . . . . . 100 16,686
____________
149,356
____________
Denmark--.3% D/S 1912, Cl. B . . . . . . . . . . . . . . . . . . . 1 7,544
Dampskibsselskabet Svendborg . . . . . . . . . . . . . 1 10,880
Den Danske Bank . . . . . . . . . . . . . . . . . . . 100 13,580
Tele Danmark, Cl. B . . . . . . . . . . . . . . . . . 100 10,895
Unidanmark, Cl. A . . . . . . . . . . . . . . . . . . 100 7,624
____________
50,523
____________
Finland--.3% Merita, Cl. A . . . . . . . . . . . . . . . . . . . . 1,000 (a) 5,379
Nokia, Cl. A . . . . . . . . . . . . . . . . . . . . . 400 36,439
Nokia, Cl. K . . . . . . . . . . . . . . . . . . . . . 200 18,184
UPM-Kymmene . . . . . . . . . . . . . . . . . . . . . 300 7,145
____________
67,147
____________
Hong Kong--.6% CLP Holdings . . . . . . . . . . . . . . . . . . . . . 2,000 11,232
Cheung Kong Holdings . . . . . . . . . . . . . . . . . 2,000 13,685
Hang Seng Bank . . . . . . . . . . . . . . . . . . . . 2,000 17,299
Hong Kong Telecommunications . . . . . . . . . . . . . 10,000 20,010
Hutchison Whampoa . . . . . . . . . . . . . . . . . . 3,000 21,495
New World Development . . . . . . . . . . . . . . . . 3,000 6,971
Sun Hung Kai Properties . . . . . . . . . . . . . . . 2,000 13,878
Swire Pacific, Cl. A . . . . . . . . . . . . . . . . . 2,000 10,612
____________
115,182
____________
Ireland--.1% Allied Irish Bank . . . . . . . . . . . . . . . . . . 700 10,110
CRH . . . . . . . . . . . . . . . . . . . . . . . . . 400 5,860
Jefferson Smurfit Group . . . . . . . . . . . . . . . 1,700 2,809
____________
18,779
____________
Italy--1.2% Assicurazioni Generali . . . . . . . . . . . . . . . . 800 28,530
Banca Commerciale Italiana . . . . . . . . . . . . . . 1,400 8,655
Banco Intesa . . . . . . . . . . . . . . . . . . . . . 1,300 6,537
ENI . . . . . . . . . . . . . . . . . . . . . . . . . 6,400 38,164
Edison . . . . . . . . . . . . . . . . . . . . . . . . 700 6,185
Fiat . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 8,510
Istituto Bancario San Paolo di Torino . . . . . . . . 700 10,397
Istituto Mobiliare Italiano . . . . . . . . . . . . . 500 7,683
Istituto Nazionale delle Assicurazioni . . . . . . . . 3,300 9,125
Mediaset . . . . . . . . . . . . . . . . . . . . . . . 1,000 6,344
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ____________ ___________
Italy (continued) Mediobanca . . . . . . . . . . . . . . . . . . . . . . 600 $ 5,861
Montedison . . . . . . . . . . . . . . . . . . . . . . 5,000 4,935
Pirelli . . . . . . . . . . . . . . . . . . . . . . . 1,700 4,850
Riunione Adriatica di Sicurta . . . . . . . . . . . . 500 5,803
Telecom Italia . . . . . . . . . . . . . . . . . . . . 3,000 21,693
Telecom Italia (RNC) . . . . . . . . . . . . . . . . . 1,000 5,065
Telecom Italia Mobile . . . . . . . . . . . . . . . . 5,300 30,795
Telecom Italia Mobile (RNC) . . . . . . . . . . . . . 2,000 7,094
Unicredito Italiano . . . . . . . . . . . . . . . . . 2,500 13,462
____________
229,688
____________
Japan--14.2% Acom . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 55,866
Ajinomoto . . . . . . . . . . . . . . . . . . . . . . 1,000 9,457
Alps Electric . . . . . . . . . . . . . . . . . . . . 1,000 13,765
Aoyamma Trading . . . . . . . . . . . . . . . . . . . 1,000 24,672
Asahi Bank . . . . . . . . . . . . . . . . . . . . . . 5,000 16,734
Asahi Breweries . . . . . . . . . . . . . . . . . . . 1,000 14,288
Asahi Chemical Industry . . . . . . . . . . . . . . . 3,000 12,692
Asahi Glass . . . . . . . . . . . . . . . . . . . . . 2,000 11,156
Bank of Tokyo-Mitsubishi . . . . . . . . . . . . . . . 9,000 83,489
Bridgestone . . . . . . . . . . . . . . . . . . . . . 2,000 44,023
Canon . . . . . . . . . . . . . . . . . . . . . . . . 2,000 37,844
Casio Computer . . . . . . . . . . . . . . . . . . . . 1,000 6,368
Chiba Bank . . . . . . . . . . . . . . . . . . . . . . 2,000 7,329
Chugai Pharmaceutical . . . . . . . . . . . . . . . . 1,000 9,096
Citizen Watch . . . . . . . . . . . . . . . . . . . . 1,000 5,527
Credit Saison . . . . . . . . . . . . . . . . . . . . 1,000 23,556
Dai Nippon Printing . . . . . . . . . . . . . . . . . 1,000 15,404
Daiichi Pharmaceutical . . . . . . . . . . . . . . . . 1,000 16,691
Daikin Industries . . . . . . . . . . . . . . . . . . 1,000 7,904
Dainippon Ink and Chemicals . . . . . . . . . . . . . 2,000 4,806
Daiwa House Industries . . . . . . . . . . . . . . . . 1,000 11,285
Daiwa Securities . . . . . . . . . . . . . . . . . . . 3,000 8,496
Denso . . . . . . . . . . . . . . . . . . . . . . . . 2,000 37,673
East Japan Railway . . . . . . . . . . . . . . . . . . 8 47,439
Ebara . . . . . . . . . . . . . . . . . . . . . . . . 1,000 7,552
Eisai . . . . . . . . . . . . . . . . . . . . . . . . 1,000 15,687
Fanuc . . . . . . . . . . . . . . . . . . . . . . . . 1,000 30,035
Fuji Bank . . . . . . . . . . . . . . . . . . . . . . 6,000 22,964
Fuji Photo Film . . . . . . . . . . . . . . . . . . . 1,000 36,643
Fujitsu . . . . . . . . . . . . . . . . . . . . . . . 4,000 42,564
Furukawa Electric . . . . . . . . . . . . . . . . . . 2,000 5,973
Gunma Bank . . . . . . . . . . . . . . . . . . . . . . 1,000 7,801
Hankyu . . . . . . . . . . . . . . . . . . . . . . . . 2,000 8,255
Hitachi . . . . . . . . . . . . . . . . . . . . . . . 6,000 30,533
Honda Motor . . . . . . . . . . . . . . . . . . . . . 2,000 60,070
Industrial Bank of Japan . . . . . . . . . . . . . . . 5,000 23,899
Isetan . . . . . . . . . . . . . . . . . . . . . . . . 1,000 9,079
Ito-Yokado . . . . . . . . . . . . . . . . . . . . . . 1,000 58,354
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ____________ ___________
Japan (continued) Itochu . . . . . . . . . . . . . . . . . . . . . . . . 3,000 $ 5,715
JUSCO . . . . . . . . . . . . . . . . . . . . . . . . 1,000 16,133
Japan Airlines . . . . . . . . . . . . . . . . . . . . 4,000 (a) 9,955
Joyo Bank . . . . . . . . . . . . . . . . . . . . . . 2,000 6,900
KOKUYO . . . . . . . . . . . . . . . . . . . . . . . . 1,000 13,301
Kansai Electric Power . . . . . . . . . . . . . . . . 2,000 42,822
Kao . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 40,505
Kawasaki Heavy Industries . . . . . . . . . . . . . . 3,000 6,565
Kawasaki Steel . . . . . . . . . . . . . . . . . . . . 6,000 9,525
Kinden . . . . . . . . . . . . . . . . . . . . . . . . 1,000 13,387
Kinki Nippon Railway . . . . . . . . . . . . . . . . . 3,000 15,447
Kirin Brewery . . . . . . . . . . . . . . . . . . . . 2,000 21,797
Komatsu . . . . . . . . . . . . . . . . . . . . . . . 2,000 10,813
Kubota . . . . . . . . . . . . . . . . . . . . . . . . 3,000 6,642
Kuraray . . . . . . . . . . . . . . . . . . . . . . . 1,000 10,667
Kyocera . . . . . . . . . . . . . . . . . . . . . . . 1,000 44,195
Makita . . . . . . . . . . . . . . . . . . . . . . . . 1,000 10,572
Marui . . . . . . . . . . . . . . . . . . . . . . . . 1,000 17,420
Matsushita Electric Industrial . . . . . . . . . . . . 4,000 58,732
Minebea . . . . . . . . . . . . . . . . . . . . . . . 1,000 9,397
Mitsubishi . . . . . . . . . . . . . . . . . . . . . . 3,000 15,884
Mitsubishi Chemical . . . . . . . . . . . . . . . . . 4,000 7,208
Mitsubishi Electric . . . . . . . . . . . . . . . . . 4,000 (a) 8,135
Mitsubishi Estate . . . . . . . . . . . . . . . . . . 2,000 18,141
Mitsubishi Heavy Industries . . . . . . . . . . . . . 6,000 23,170
Mitsubishi Rayon . . . . . . . . . . . . . . . . . . . 2,000 5,338
Mitsubishi Trust & Banking . . . . . . . . . . . . . . 2,000 13,507
Mitsui & Co. . . . . . . . . . . . . . . . . . . . . . 3,000 16,013
Mitsui Fudosan . . . . . . . . . . . . . . . . . . . . 2,000 13,284
Mitsui Trust & Banking . . . . . . . . . . . . . . . . 3,000 3,913
Murata Manufacturing . . . . . . . . . . . . . . . . . 1,000 33,725
Mycal . . . . . . . . . . . . . . . . . . . . . . . . 1,000 4,831
NEC . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 22,218
NGK Insulators . . . . . . . . . . . . . . . . . . . . 1,000 11,113
NGK Spark Plug . . . . . . . . . . . . . . . . . . . . 1,000 9,311
NKK . . . . . . . . . . . . . . . . . . . . . . . . . 7,000 4,205
NSK . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 6,436
Nagoya Railroad . . . . . . . . . . . . . . . . . . . 2,000 6,882
Nikon . . . . . . . . . . . . . . . . . . . . . . . . 1,000 9,148
Nippon Express . . . . . . . . . . . . . . . . . . . . 2,000 11,242
Nippon Oil . . . . . . . . . . . . . . . . . . . . . . 2,000 6,951
Nippon Paper Industries . . . . . . . . . . . . . . . 2,000 7,998
Nippon Steel . . . . . . . . . . . . . . . . . . . . . 13,000 22,647
Nippon Telegraph & Telephone . . . . . . . . . . . . . 24 187,831
Nippon Yusen Kaisha . . . . . . . . . . . . . . . . . 2,000 6,625
Nissan Motor . . . . . . . . . . . . . . . . . . . . . 5,000 13,559
Nissin Food Products . . . . . . . . . . . . . . . . . 1,000 19,866
Nomura Securities . . . . . . . . . . . . . . . . . . 4,000 30,207
Obayashi . . . . . . . . . . . . . . . . . . . . . . . 2,000 8,444
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ____________ ___________
Japan (continued) Odakyu Electric Railway . . . . . . . . . . . . . . . 2,000 $ 7,002
Oji Paper . . . . . . . . . . . . . . . . . . . . . . 2,000 8,152
Olympus Optical . . . . . . . . . . . . . . . . . . . 1,000 10,298
Omron . . . . . . . . . . . . . . . . . . . . . . . . 1,000 9,697
Osaka Gas . . . . . . . . . . . . . . . . . . . . . . 5,000 16,047
77 Bank . . . . . . . . . . . . . . . . . . . . . . . 1,000 9,448
Sakura Bank . . . . . . . . . . . . . . . . . . . . . 7,000 17,420
Sankyo . . . . . . . . . . . . . . . . . . . . . . . . 1,000 22,569
Sanyo Electric . . . . . . . . . . . . . . . . . . . . 4,000 11,259
Sekisui Chemical . . . . . . . . . . . . . . . . . . . 2,000 10,898
Sekisui House . . . . . . . . . . . . . . . . . . . . 1,000 9,963
Sharp . . . . . . . . . . . . . . . . . . . . . . . . 2,000 15,103
Shimizu . . . . . . . . . . . . . . . . . . . . . . . 2,000 6,470
Shin-Etsu Chemical . . . . . . . . . . . . . . . . . . 1,000 19,909
Shionogi & Co. . . . . . . . . . . . . . . . . . . . . 1,000 7,371
Shiseido . . . . . . . . . . . . . . . . . . . . . . . 1,000 10,950
Shizuoka Bank . . . . . . . . . . . . . . . . . . . . 1,000 11,525
Sony . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 63,503
Sumitomo . . . . . . . . . . . . . . . . . . . . . . . 2,000 9,577
Sumitomo Bank . . . . . . . . . . . . . . . . . . . . 6,000 58,955
Sumitomo Chemical . . . . . . . . . . . . . . . . . . 3,000 10,040
Sumitomo Electric Industries . . . . . . . . . . . . . 1,000 11,070
Sumitomo Marine & Fire Insurance . . . . . . . . . . . 1,000 5,853
Sumitomo Metal Industries . . . . . . . . . . . . . . 6,000 6,385
Taisho Pharmaceutical . . . . . . . . . . . . . . . . 1,000 26,774
Takashimaya . . . . . . . . . . . . . . . . . . . . . 1,000 7,517
Takeda Chemical Industries . . . . . . . . . . . . . . 2,000 65,048
Teijin . . . . . . . . . . . . . . . . . . . . . . . . 2,000 6,591
Tohoku Electric Power . . . . . . . . . . . . . . . . 1,000 17,463
Tokai Bank . . . . . . . . . . . . . . . . . . . . . . 4,000 19,772
Tokio Marine & Fire Insurance . . . . . . . . . . . . 3,000 34,111
Tokyo Electric Power . . . . . . . . . . . . . . . . . 3,000 75,946
Tokyo Gas . . . . . . . . . . . . . . . . . . . . . . 5,000 12,829
Tokyu . . . . . . . . . . . . . . . . . . . . . . . . 2,000 5,012
Toppan Printing . . . . . . . . . . . . . . . . . . . 1,000 10,255
Toray Industries . . . . . . . . . . . . . . . . . . . 3,000 13,953
Tostem . . . . . . . . . . . . . . . . . . . . . . . . 1,000 15,490
Toto . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 7,414
Toyo Seikan Kaisha . . . . . . . . . . . . . . . . . . 1,000 17,978
Toyota Motor . . . . . . . . . . . . . . . . . . . . . 7,000 168,197
Uny . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 16,305
Yamaguchi Bank . . . . . . . . . . . . . . . . . . . . 1,000 10,298
Yamanouchi Pharmaceutical . . . . . . . . . . . . . . 1,000 28,662
Yamato Transport . . . . . . . . . . . . . . . . . . . 1,000 12,048
____________
2,744,418
____________
Malaysia--.1% Malayan Banking . . . . . . . . . . . . . . . . . . . 5,000 4,236
Telekom Malaysia . . . . . . . . . . . . . . . . . . . 4,000 5,009
Tenaga Nasional . . . . . . . . . . . . . . . . . . . 4,000 3,167
____________
12,412
____________
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ____________ ___________
Netherlands--.9% ABN-AMRO . . . . . . . . . . . . . . . . . . . . . . . 740 $ 13,867
Akzo Nobel . . . . . . . . . . . . . . . . . . . . . . 160 6,219
Elsevier . . . . . . . . . . . . . . . . . . . . . . . 350 4,929
Getronics . . . . . . . . . . . . . . . . . . . . . . 50 2,075
Heineken . . . . . . . . . . . . . . . . . . . . . . . 180 9,589
ING Groep . . . . . . . . . . . . . . . . . . . . . . 502 24,298
KPN . . . . . . . . . . . . . . . . . . . . . . . . . 246 9,562
Koninklijke Ahold . . . . . . . . . . . . . . . . . . 311 10,341
Koninklijke (Royal) Philips Electronics . . . . . . . 195 10,378
Royal Dutch Petroleum . . . . . . . . . . . . . . . . 1,160 56,022
TNT Post . . . . . . . . . . . . . . . . . . . . . . . 240 6,425
Unilever . . . . . . . . . . . . . . . . . . . . . . . 360 26,715
Wolters Kluwer . . . . . . . . . . . . . . . . . . . . 40 7,753
____________
188,173
____________
New Zealand--.0% Telecom Corporation of New Zealand . . . . . . . . . . 2,000 8,206
____________
Norway--.1% Den Norske Bank . . . . . . . . . . . . . . . . . . . 1,100 3,865
Norsk Hydro . . . . . . . . . . . . . . . . . . . . . 200 8,681
____________
12,546
____________
Portugal--.2% BPI-SGPS . . . . . . . . . . . . . . . . . . . . . . . 200 6,138
Banco Comercial Portugues . . . . . . . . . . . . . . 300 9,399
Banco Espirito Santo e Comercial de Lisboa . . . . . . 200 5,914
Electricidade de Portugal . . . . . . . . . . . . . . 300 7,547
Portugal Telecom . . . . . . . . . . . . . . . . . . . 200 9,484
____________
38,482
____________
Singapore--.2% Development Bank of Singapore . . . . . . . . . . . . 1,000 6,264
Oversea-Chinese Banking . . . . . . . . . . . . . . . 2,000 8,721
Singapore Airlines . . . . . . . . . . . . . . . . . . 1,000 6,141
Singapore Press Holdings . . . . . . . . . . . . . . . 900 7,793
Singapore Telecommunications . . . . . . . . . . . . . 5,000 8,629
____________
37,548
____________
Spain--.9% Autopistas, Concesionaria Espanola . . . . . . . . . . 500 8,167
Banco Bilbao Vizcaya . . . . . . . . . . . . . . . . . 1,500 20,196
Banco Central Hispanoamericano . . . . . . . . . . . . 900 9,917
Banco Santander . . . . . . . . . . . . . . . . . . . 1,020 18,648
Corporacion Bancaria de Espana . . . . . . . . . . . . 400 8,688
Endesa . . . . . . . . . . . . . . . . . . . . . . . . 800 20,125
Fomento de Construcciones y Contratas . . . . . . . . 200 10,516
Gas Natural SDG, Cl. E . . . . . . . . . . . . . . . . 100 8,595
Iberdrola . . . . . . . . . . . . . . . . . . . . . . 700 11,285
Repsol . . . . . . . . . . . . . . . . . . . . . . . . 200 10,020
Sociedad General de Aguas de Barcelona . . . . . . . . 200 10,643
Sociedad General de Aguas de Barcelona (Rights) . . . 200 99
Tabacalera, Cl. A . . . . . . . . . . . . . . . . . . 300 7,228
Telefonica . . . . . . . . . . . . . . . . . . . . . . 800 36,054
____________
180,181
____________
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ____________ ___________
Sweden--.9% ABB, Cl. A . . . . . . . . . . . . . . . . . . . . . . 600 $ 6,332
ABB, Cl. B . . . . . . . . . . . . . . . . . . . . . . 500 5,277
AGA, Cl. A . . . . . . . . . . . . . . . . . . . . . . 400 5,526
Astra, Cl. A . . . . . . . . . . . . . . . . . . . . . 1,100 17,801
Astra, Cl. B . . . . . . . . . . . . . . . . . . . . . 400 6,268
Drott, Cl. B . . . . . . . . . . . . . . . . . . . . . 200 (a) 1,535
ForenungsSparbanken . . . . . . . . . . . . . . . . . 300 8,117
Hennes & Mauritz, Cl. B . . . . . . . . . . . . . . . 200 14,072
NetCom, Cl. B . . . . . . . . . . . . . . . . . . . . 300 (a) 11,244
Sandvik, Cl. A . . . . . . . . . . . . . . . . . . . . 300 6,159
Securitas, Cl. B . . . . . . . . . . . . . . . . . . . 800 9,825
Skandinaviska Enskilda Banken, Cl. A . . . . . . . . . 500 5,053
Skanska, Cl. B . . . . . . . . . . . . . . . . . . . . 200 6,575
Stora Kopparbergs Bergslags Aktiebolag, Cl. A . . . . 400 4,401
Svenska Cellulosa, Cl. B . . . . . . . . . . . . . . . 300 7,023
Svenska Handelsbanken, Cl. A . . . . . . . . . . . . . 200 8,405
Telefonaktiebolaget LM Ericsson, Cl. B . . . . . . . . 1,600 36,024
Volvo, Cl. A . . . . . . . . . . . . . . . . . . . . . 300 6,294
Volvo, Cl. B . . . . . . . . . . . . . . . . . . . . . 200 4,311
____________
170,242
____________
Switzerland--9.6% ABB . . . . . . . . . . . . . . . . . . . . . . . . . 35 41,921
Adecco . . . . . . . . . . . . . . . . . . . . . . . . 70 27,913
Alusuisse Lonza . . . . . . . . . . . . . . . . . . . 30 (a) 34,293
Credit Suisse . . . . . . . . . . . . . . . . . . . . 845 129,945
Holderbank Financiere Glarus . . . . . . . . . . . . . 30 33,429
Nestle . . . . . . . . . . . . . . . . . . . . . . . . 145 308,374
Novartis . . . . . . . . . . . . . . . . . . . . . . . 220 396,396
Novartis (Bearer) . . . . . . . . . . . . . . . . . . 25 45,008
Roche . . . . . . . . . . . . . . . . . . . . . . . . 26 303,353
Roche (Bearer) . . . . . . . . . . . . . . . . . . . . 6 108,773
Societe Generale de Surveillance . . . . . . . . . . . 10 7,045
Sulzer . . . . . . . . . . . . . . . . . . . . . . . . 20 11,520
Swatch . . . . . . . . . . . . . . . . . . . . . . . . 100 13,680
Schweizerische Rueckversicherungs-Gesellschaft . . . . 55 122,493
UBS . . . . . . . . . . . . . . . . . . . . . . . . . 695 190,661
Zurich Allied . . . . . . . . . . . . . . . . . . . . 125 75,967
____________
1,850,771
____________
TOTAL COMMON STOCKS
(cost $6,013,896) . . . . . . . . . . . . . . . . $ 5,888,475
____________
____________
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED)OCTOBER 31, 1998
Principal
Bonds and Notes--7.4% Amount Value
- ------------------------------------------------------- ____________ ___________
Netherlands--1.0% Netherlands Government, Bonds,
5.75%, 2/15/07 . . . . . . . . . . . . . . . . . . $ 250,000 (c) $ 148,168
Netherlands Government, Bonds,
7.50%, 4/15/10 . . . . . . . . . . . . . . . . . . 60,000 (c) 41,122
____________
189,290
____________
United States--6.4% U.S. Treasury, Notes,
6.50%, 8/15/05 . . . . . . . . . . . . . . . . . . 1,105,000 1,234,263
____________
TOTAL BONDS AND NOTES
(cost $1,334,673) . . . . . . . . . . . . . . . . $ 1,423,553
____________
Short-Term Investments--62.4%
- -------------------------------------------------------
Commercial Paper--55.6% A1 Credit, 5.02%, 1/5/99 . . . . . . . . . . . . . . . $ 400,000 $ 396,374
Allied Domecq, 5.09%, 11/25/98 . . . . . . . . . . . . 800,000 797,285
American Honda Finance, 5.08%, 1/13/99 . . . . . . . . 800,000 791,759
Coca-Cola, 4.97%, 12/15/98 . . . . . . . . . . . . . . 800,000 795,141
Dupont International, 5.01%, 12/16/98 . . . . . . . . 800,000 794,990
Ford Credit Europe, 5.11%, 1/6/99 . . . . . . . . . . 4,000,000 3,962,527
GE Capital, 5.04%, 12/15/98 . . . . . . . . . . . . . 800,000 795,072
Paccar, 5.05%, 11/25/98 . . . . . . . . . . . . . . . 800,000 797,307
Weyerhauser, 5.05%, 11/25/98 . . . . . . . . . . . . . 800,000 797,307
Xerox Capital, 5.04%, 12/22/98 . . . . . . . . . . . . 800,000 794,288
____________
10,722,050
____________
U.S. Treasury Bills--6.8% 3.61%, 12/10/98 . . . . . . . . . . . . . . . . . . . 800,000 (b) 796,696
4.47%, 12/17/98 . . . . . . . . . . . . . . . . . . . 121,000 120,408
4.48%, 12/24/98 . . . . . . . . . . . . . . . . . . . 266,000 264,423
4.21%, 1/28/99 . . . . . . . . . . . . . . . . . . . . 138,000 136,592
____________
1,318,119
____________
TOTAL SHORT-TERM INVESTMENTS
(cost $12,040,054) . . . . . . . . . . . . . . . . $12,040,169
____________
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOTAL INVESTMENTS (cost $19,388,623) . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.3% $19,352,197
_______ ____________
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . . . . . . (.3%) $ (64,048)
_______ ____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $19,288,149
_______ ____________
NOTES TO STATEMENT OF INVESTMENTS:
- -----------------------------------------------------------------------------
(a) Non-income producing.
(b) Partially held by custodian in a segregated account as collateral for open
financial futures positions.
(c) Denominated in Dutch Guilders.
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF FINANCIAL FUTURES OCTOBER 31, 1998
Unrealized
Number Market Value Appreciation
of Covered by (Depreciation)
Financial Futures Long: Contracts Contracts Expiration at 10/31/98
____________________ ________ ___________ _________ ____________
<S> <C> <C> <C> <C>
Australian All Ordinaries. . . . . . . . . . . . . . . . 2 $ 79,239 December '98 $ 2,956
Australian 10 Year Bond. . . . . . . . . . . . . . . . . 1 551,514 December '98 5,321
CAC 40 . . . . . . . . . . . . . . . . . . . . . . . . . 23 728,892 December '98 68,213
Financial Times Stock Exchange 100 . . . . . . . . . . . 6 551,208 December '98 24,233
French 10 Year Bond. . . . . . . . . . . . . . . . . . . 7 659,510 December '98 10,520
German 10 Year Bond. . . . . . . . . . . . . . . . . . . 3 497,068 December '98 4,295
Dax 30 . . . . . . . . . . . . . . . . . . . . . . . . . 6 1,679,809 December '98 7,746
S&P 500. . . . . . . . . . . . . . . . . . . . . . . . . 18 4,973,400 December '98 470,776
Topix. . . . . . . . . . . . . . . . . . . . . . . . . . 9 684,569 December '98 (67,483)
Toronto 35 Stock . . . . . . . . . . . . . . . . . . . . 5 568,442 December '98 16,083
U.S. 10 Year Note. . . . . . . . . . . . . . . . . . . . 6 722,250 December '98 1,907
_________
$544,567
_________
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998
Cost Value
_____________ ______________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $19,388,623 $19,352,197
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 443
Cash denominated in foreign currencies . . . . . . . . . 68 68
Receivable for futures variation margin--Note 3(a) . . . 121,795
Receivable for investment securities sold . . . . . . . . 109,189
Dividends and interest receivable . . . . . . . . . . . . 32,830
Prepaid expenses--Note 1(f) . . . . . . . . . . . . . . . 65,273
_____________
19,681,795
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 15,458
Due to Distributor . . . . . . . . . . . . . . . . . . . 8,391
Net unrealized depreciation on forward currency
exchange contracts--Note 3(a) . . . . . . . . . . . . . 294,268
Payable for investment securities purchased . . . . . . . 46,219
Accrued expenses and other liabilities . . . . . . . . . 29,310
_____________
393,646
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,288,149
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $20,001,300
Accumulated undistributed investment income--net . . . . 125,780
Accumulated net realized gain (loss) on investments
and foreign currency transactions . . . . . . . . . . . (1,053,636)
Accumulated net unrealized appreciation (depreciation)
on investments, forward currency exchange contracts
and foreign currency transactions (including $544,567
net unrealized appreciation on financial futures) . . . 214,705
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,288,149
_____________
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
------------------------------------------------------------
Class A Class B Class C Class R
___________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
Net Assets . . . . . . . . . . . . . . . . . . . . . . $6,758,292 $6,739,750 $1,925,627 $3,864,480
Shares Outstanding . . . . . . . . . . . . . . . . . . 560,105 560,000 160,000 320,000
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . $12.07 $12.04 $12.04 $12.08
_______ _______ _______ _______
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Interest . . . . . . . . . . . . . . . . . . . . $ 244,327
Cash dividends (net of $2,296 foreign taxes
withheld at source) . . . . . . . . . . . . . 13,120
____________
Total Income . . . . . . . . . . . . . . . $ 257,447
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . 65,756
Distribution fees--Note 2(b) . . . . . . . . . . 22,174
Registration fees . . . . . . . . . . . . . . . . 15,564
Auditing fees . . . . . . . . . . . . . . . . . . 15,000
Shareholder servicing costs--Note 2(c) . . . . . 13,573
Custodian fees . . . . . . . . . . . . . . . . . 13,490
Prospectus and shareholders' reports . . . . . . 2,177
Organization expense--Note 1(f) . . . . . . . . . 1,757
Legal fees . . . . . . . . . . . . . . . . . . . 981
Directors' fees and expenses--Note 2(d) . . . . . 784
Miscellaneous . . . . . . . . . . . . . . . . . . 1,204
____________
Total Expenses . . . . . . . . . . . . . . 152,460
Less--reduction in management fee due to
undertaking--Note 2(a) . . . . . . . . . . . . (20,793)
____________
Net Expenses . . . . . . . . . . . . . . . 131,667
_____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,780
_____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments and
foreign currency transactions . . . . . . . . $ 17,858
Net realized gain (loss) on forward currency
exchange contracts . . . . . . . . . . . . . . (3,954)
Net realized gain (loss) on financial futures . . (1,067,540)
____________
Net Realized Gain (Loss) . . . . . . . . . (1,053,636)
Net unrealized appreciation (depreciation) on
investments, forward currency exchange
contracts and foreign currency transactions
(including $544,567 net unrealized
appreciation on financial futures) . . . . . . 214,705
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . (838,931)
_____________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . $ (713,151)
_____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,780
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,053,636)
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . 214,705
____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . . . . . . . . . . (713,151)
____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,001,300
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000
Class R shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000
____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . . . . . . . . . . . . . . 20,001,300
____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,288,149
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --
____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,288,149
____________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,780
____________
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998
CAPITAL SHARE TRANSACTIONS:
Class A
-----
Shares sold . . . . . . . . 560,105
________
Class B
--------
Shares sold . . . . . . . . 560,000
________
Class C
--------
Shares sold . . . . . . . . 160,000
________
Class R
--------
Shares sold . . . . . . . . 320,000
________
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for the period from June 29, 1998 (commencement of
operations) to October 31, 1998. This information has been derived from the
Fund's financial statements.
PER SHARE DATA: Class A Class B Class C Class R
________ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $12.50 $12.50 $12.50 $12.50
________ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .09 .06 .06 .10
Net realized and unrealized gain (loss) on investments . . . . . . . . (.52) (.52) (.52) (.52)
________ _______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . (.43) (.46) (.46) (.42)
________ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $12.07 $12.04 $12.04 $12.08
________ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . . . . . . . . . . . . . (3.44%)(2) (3.68%)(2) (3.68%)(2) (3.36%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(1) . . . . . . . . . . . . . . .59% .84% .84% .50%
Ratio of net investment income to average net assets(1) . . . . . . . . .75% .50% .50% .84%
Decrease reflected in above expense ratio due to undertakings
by Dreyfus(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . .11% .11% .11% .11%
Portfolio Turnover Rate(1) . . . . . . . . . . . . . . . . . . . . . . 12.26% 12.26% 12.26% 12.26%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $6,758 $6,740 $1,926 $3,864
- ---------------
(1) Not annualized.
(2) Exclusive of sales load.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
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 which commenced operations on
June 29, 1998. 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 October 31, 1998, MBC Investment 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 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.
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (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 credit of $10,864 during the period ended October 31, 1998 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 $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.
(F) OTHER: Organization expenses paid by the Fund are included in prepaid
expenses and are being amortized to operations from June 29, 1998, the date
operations commenced, over the period during which it is expected that a benefit
will be realized, not to exceed five years. At October 31, 1998, the unamortized
balance of such expenses amounted to $18,000.
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 had undertaken from June 29, 1998 through
October 31, 1998 to reduce the management fee paid by the Fund, to the extent
that the Fund' s aggregate expenses, excluding 12b-1 distribution fees, taxes,
brokerage, commitment fees, interest on borrowings and extraordinary expenses
exceeded an annual rate of 2.00% of the value of the Fund's average daily net
assets. The reduction in management fee, pursuant to the undertaking, amounted
to $20,793 during the period ended October 31, 1998.
(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. During the period ended October 31, 1998,
Class B and Class C shares were charged $17,246 and $4,928, 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 Class A, Class B and Class C shares
and providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended October 31, 1998,
Class A, Class B and Class C shares were charged $5,757, $5,749 and $1,642,
respectively, pursuant to the Shareholder Services Plan.
DREYFUS PREMIER GLOBAL ALLOCATION FUND
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 October 31, 1998, the Fund was charged $85 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 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 October 31, 1998, amounted to $8,053,309 and
$721,052, respectively.
The following summarizes open forward currency exchange contracts at October
31, 1998:
<TABLE>
<CAPTION>
Unrealized
Foreign Currency Appreciation
Forward Currency Exchange Contracts Amount Cost Value (Depreciation)
_________________________________ ________ ________ ________ ____________
Purchases:
_____
<S> <C> <C> <C> <C>
Australian Dollars, expiring 12/29/98 . . . . . . . . 283,000 $ 168,611 $ 176,266 $ 7,655
Canadian Dollars, expiring 12/29/98 . . . . . . . . . 830,500 544,005 536,880 (7,125)
German Deutsche Marks, expiring 12/29/98 . . . . . . 3,668,450 2,186,008 2,220,866 34,858
French Francs, expiring 12/29/98 . . . . . . . . . . 7,641,950 1,394,847 1,378,935 (15,912)
British Pounds, expiring 12/29/98 . . . . . . . . . . 651,980 1,092,132 1,088,846 (3,286)
Sales: Proceeds
_____ ________
Swiss Francs, expiring 11/4/98 . . . . . . . . . . . 141,557 104,514 104,532 (18)
Swiss Francs, expiring 12/29/98 . . . . . . . . . . . 2,438,000 1,762,834 1,811,561 (48,727)
Japanese Yen, expiring 12/29/98 . . . . . . . . . . . 225,456,000 1,692,168 1,947,279 (255,111)
Dutch Guilder, expiring 12/29/98 . . . . . . . . . . 776,000 410,246 416,848 (6,602)
_________
Total . . . . . . . . . . . . . . . . . . . . . . $(294,268)
_________
</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 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 counterparty 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. Typically, variation margin payments are received
or DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 October 31, 1998 are set
forth in the Statement of Financial Futures.
(B) At October 31, 1998, accumulated net unrealized appreciation on
investments, forward currency exchange contracts and financial futures was
$213,873, consisting of $1,167,312 gross unrealized appreciation and $953,439
gross unrealized depreciation.
At October 31, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
DREYFUS PREMIER GLOBAL ALLOCATION FUND
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS PREMIER GLOBAL ALLOCATION FUND
We have audited the accompanying statement of assets and liabilities,
including the statements of investments and financial futures, of Dreyfus
Premier Global Allocation Fund (one of the series constituting Dreyfus Premier
International Funds, Inc.) as of October 31, 1998, and the related statements of
operations and changes in net assets and financial highlights for the period
from June 29, 1998 (commencement of operations) to October 31, 1998. These
financial statements and financial highlights are the responsibility of the
Fund' s management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1998 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Global Allocation Fund at October 31, 1998, and the results of
its operations, the changes in its net assets and the financial highlights for
the period from June 29, 1998 to October 31, 1998, in conformity with generally
accepted accounting principles.
New York, New York
December 8, 1998
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
Printed in U.S.A. 545/546AR9810
ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER
GLOBAL ALLOCATION
FUND
- -------------------------------------------------------------------------------
OCTOBER 31, 1998
[lion logo reg.tm]
January 13, 1999
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Dreyfus Premier International Funds, Inc. -
- Dreyfus Premier International Growth Fund
- Dreyfus Premier Global Allocation Fund
- Dreyfus Premier Greater China Fund
Registration Statement File Nos. 33-44254; 811-6490
Ladies and Gentlemen:
Enclosed is one (1) copy of the Annual Report to Shareholders for each
of the above-referenced portfolios of the Dreyfus Premier International
Funds, Inc. for the annual period ended October 31, 1998 filed in compliance
with the provisions of Section 30 of the Investment Company Act of 1940, as
amended.
If you have any questions or comments on the attached, please do not
hesitate to contact the undersigned at (212) 922-6855.
Sincerely yours,
Lisa R. Grosswirth
LRG\
Enclosures
cc: Stroock & Stroock & Lavan
Ernst & Young
Michael A. Rosenberg
