Dreyfus
Premier Greater
China Fund
SEMIANNUAL REPORT April 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
8 Statement of Assets and Liabilities
9 Statement of Operations
10 Statement of Changes in Net Assets
13 Financial Highlights
18 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Premier Greater China Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Greater
China Fund, covering the six-month period from November 1, 1999 through April
30, 2000. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Raymond Chan.
When the reporting period began, it had become apparent that global economic
growth was substantially stronger than many analysts had expected. In fact, many
global markets had already rebounded sharply from 1998's currency and credit
crises in emerging market countries. The rally continued through the final two
months of 1999 and into the first quarter of 2000, before peaking in early
March. In April, many markets around the world experienced heightened levels of
volatility when expensively priced technology stocks began to decline sharply in
the wake of evidence that inflationary pressures were building.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Greater China Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Raymond Chan, Portfolio Manager
How did Dreyfus Premier Greater China Fund perform relative to its benchmark?
For the six-month period ended April 30, 2000, the fund produced a total return
of 74.46% for Class A shares, 73.78% for Class B shares, 73.86% for Class C
shares and 74.74% for Class R shares.(1) The fund's benchmark, the Hang Seng
Index, produced a total return of 18.43%.(2)
From its March 1, 2000 inception through April 30, 2000, the fund's Class T
shares produced a total return of -13.32%.(1)
We attribute the fund' s positive absolute performance during the reporting
period to regional recovery and industry sector selection. We attribute the
fund' s positive performance relative to its benchmark to our emphasis on
investments in technology stocks, which advanced sharply until a mid-March
correction trimmed gains (and produced negative returns for Class T shares). At
the same time, we de-emphasized interest-rate-sensitive stocks, such as banks
and property companies, which, as a group, performed poorly during the past six
months.
What is the fund's investment approach?
The fund seeks long-term capital appreciation by investing in stocks of
companies in the Greater China region: Hong Kong, China and Taiwan. The fund's
investment approach is based on fundamental research of individual companies as
well as macroeconomic analysis of each market's overall economic prospects.
We look for rapidly growing companies whose stock prices appear reasonable.
Characteristics of such companies include high quality management with a
commitment to increasing shareholder value, strong earnings momentum with
consistent free cash flow generation, sound business fundamentals and long-term
vision. Generally, the companies in which we invest are leaders in their
respective industries and have exceptional brand recognition.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
We also gauge the respective strengths of markets. We attempt to identify the
macroeconomic events, such as changes in monetary or exchange rate policy, that
often mark market turning points. Accordingly, we then increase or decrease
investments based upon anticipated market direction.
What other factors influenced the fund's performance?
The fund' s relatively small size combined with a period of high stock market
performance in the Greater China region contributed to the fund's success.
Moreover, the fund's investments in the technology sector during a period that
was favorable for that sector in general also contributed significantly to the
fund's performance. Of course, the technology sector is one of the most volatile
sectors of the market and investors should not expect the types of returns
experienced during the last six months.
The fund benefited from the strong economic recovery across the Greater China
region. As a result, analysts revised estimates of economic growth and corporate
earnings upward. Investors grew more confident that the region's economies were
back on the right track.
The fund was well positioned to take advantage of strong global trends. For
example, Hong Kong is experiencing rapid transformation from an economy led by
property and finance to a new, knowledge-based economic structure, where our
investments were concentrated. In China, an increasing integration into the
world economy is greatly increasing demand for telecommunications
infrastructure-related goods and services, and the fund benefited from its
investments in this area. In addition, fund performance in Taiwan was influenced
by two factors. First, concerns that the electronics industry would slow down
after Y2K proved unfounded: earnings growth remained strong, boosting stock
prices. Second, worries about China's reaction to Taiwan's presidential election
appeared overblown. Both sides have taken a conciliatory post-election stance.
The fund's choice of industries and individual stocks also benefited
performance. We expanded our investment in sectors that appeared best
positioned to take advantage of the global technology boom. Those investments
included export-oriented electronics firms, outsourcing specialists like
contract manufacturers and system integration firms benefiting from the massive
infrastructure development of China's telecommunications data networks. On the
other hand, areas where we de-emphasized investment also aided fund performance.
Previously, "old economy" firms -- banks and property owners -- led Hong Kong's
stock market. As Hong Kong' s regional role changes, the importance of these
firms will likely diminish. Knowledge-based, telecommunications and
Internet-related companies will likely take on greater market leadership
What is the fund's current strategy?
From the beginning of the reporting period through mid-March, we increased the
percentage of the portfolio's investments in technology stocks from
approximately 40% to near 70% to take advantage of the previously described
trends. From mid-March, however, our view changed. Global liquidity -- that is,
money available for investing -- began to shrink as central banks increased
interest rates in an attempt to head off inflation. In response, we've pared our
technology commitment to about 50% of portfolio investment. We increased the
fund' s exposure to more defensive stocks, like consumer durables, which we
believe should be well positioned to take advantage of recovery in the region's
domestic economies.
May 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN
THE CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT
DEFERRED SALES CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND
CLASS C SHARES. HAD THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN
LOWER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. RETURN FIGURES PROVIDED
REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT
TO AN AGREEMENT IN EFFECT THROUGH OCTOBER 31, 2000, AT WHICH TIME IT MAY BE
EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT BEEN ABSORBED, THE
FUND'S RETURN WOULD HAVE BEEN LOWER
(2) SOURCE: BLOOMBERG L.P. -- REFLECTS REINVESTMENT OF NET DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE HANG SENG INDEX IS A
CAPITALIZATION-WEIGHTED INDEX OF APPROXIMATELY 33 COMPANIES THAT REPRESENT
70 PERCENT OF THE TOTAL MARKET CAPITALIZATION OF THE STOCK EXCHANGE OF HONG
KONG. THE COMPONENTS OF THE INDEX ARE DIVIDED INTO SUB-INDEXES: COMMERCE,
FINANCE, UTILITIES AND PROPERTIES.
The Fund
STATEMENT OF INVESTMENTS
April 30, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
COMMON STOCKS--98.0% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CHINA--2.8%
China Shipping Development 550,000 (a) 65,669
Guangdong Kelon Electrical 90,000 56,040
Jiangxi Copper 700,000 (a) 58,415
180,124
HONG KONG--44.3%
Asia Satellite Telecommunications 59,000 184,444
Cable & Wireless 150,000 353,378
Cheung Kong 16,000 191,036
Citic Pacific 40,000 183,333
Computer & Technologies 90,000 (a) 103,414
Culturecom 1,400,000 (a) 208,496
Denway Investment 600,000 (a) 56,232
e-Kong Group 750,000 (a) 137,692
Hutchison Whampoa 25,000 364,291
i-CABLE Communications 350,000 (a) 153,901
Johnson Electric 20,500 165,151
Li & Fung 40,000 154,575
Oriental Press 700,000 (a) 143,791
Technology Venture 350,000 130,310
Television Broadcasts 16,000 109,384
Vanda Systems & Communication 500,000 255,164
2,894,592
SINGAPORE--8.4%
CSA 65,000 (a) 110,060
Datacraft Asia 14,000 105,000
JIT 66,000 155,449
NatSteel Electonics 31,000 177,994
548,503
TAIWAN--42.5%
Ambit Microsystems 10,000 92,499
Arima Computer 40,000 (a) 187,612
Asustek Computer 18,000 199,444
D-Link 60,000 176,499
DBTEL 66,000 (a) 206,014
Formosa Chemicals & Fibre 1,120 1,538
Hitron Technology 27,000 (a) 172,969
Hon Hai Precision Industry 16,000 (a) 154,274
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TAIWAN (CONTINUED)
Macronix International 80,000 (a) 241,870
Procomp Informatics 21,000 (a) 164,733
Quanta Computer 27,001 210,042
Realtek Semiconductor 31,000 (a) 251,283
Taiwan Semiconductor Manufacturing 55,194 (a) 355,392
Via Technolgies 21,701 (a) 361,742
2,775,911
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $6,529,473) 98.0% 6,399,130
CASH AND RECEIVABLES (NET) 2.0% 131,693
NET ASSETS 100.0% 6,530,823
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 6,529,473 6,399,130
Cash 145,666
Cash denominated in foreign currencies 125,708 125,291
Receivable for investment securities sold 243,663
Receivable for shares of Common Stock subscribed 22,612
Dividends receivable 1,233
Prepaid expenses 83,709
Due from The Dreyfus Corporation and affiliates 17
7,021,321
--------------------------------------------------------------------------------
LIABILITIES ($):
Payable for investment securities purchased 467,155
Accrued expenses 23,343
490,498
--------------------------------------------------------------------------------
NET ASSETS ($) 6,530,823
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 4,290,302
Accumulated investment (loss) (65,982)
Accumulated net realized gain (loss) on investments and
foreign currency transactions 2,437,245
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (130,742)
--------------------------------------------------------------------------------
NET ASSETS ($) 6,530,823
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Assets ($) 4,281,839 906,351 924,739 417,027 867
Shares Outstanding 171,328 36,580 37,310 16,646 34.771
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 24.99 24.78 24.79 25.05 24.93
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends 8,382
Interest 3,333
TOTAL INCOME 11,715
EXPENSES:
Investment advisory fee--Note 3(a) 32,634
Custodian fees 33,067
Auditing fees 14,460
Registration fees 13,543
Prospectus and shareholders' reports 10,509
Organization expenses 8,781
Shareholder servicing costs--Note 3(c) 6,841
Distribution fees--Note 3(b) 5,402
Legal fees 958
Directors' fees and expenses--Note 3(d) 532
Miscellaneous 2,231
TOTAL EXPENSES 128,958
Less--expense reimbursement from The Dreyfus
Corporation due to undertaking--Note 3(a) (65,289)
NET EXPENSES 63,669
INVESTMENT (LOSS) (51,954)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign
currency transactions 2,448,880
Net realized gain (loss) on forward currency exchange contracts (7,975)
NET REALIZED GAIN (LOSS) 2,440,905
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (456,605)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,984,300
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,932,346
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income (loss)--net (51,954) 4,185
Net realized gain (loss) on investments 2,440,905 33,354
Net unrealized appreciation (depreciation)
on investments (456,605) 274,100
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS 1,932,346 311,639
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (13,881) (13,561)
Class B shares (1,318) (1,375)
Class C shares (695) (2,296)
Class R shares (2,265) (2,144)
Net realized gain on investments:
Class A shares (6,940) --
Class B shares (1,450) --
Class C shares (1,530) --
Class R shares (890) --
TOTAL DIVIDENDS (28,969) (19,376)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 1,547,514 127,540
Class B shares 595,493 15,811
Class C shares 528,712 172,118
Class R shares 11,955 --
Class T shares 1,000 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000 FOR
CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($) (CONTINUED):
Dividends reinvested:
Class A shares 20,596 13,561
Class B shares 2,669 1,375
Class C shares 2,225 2,296
Class R shares 3,154 2,144
Cost of shares redeemed:
Class A shares (263,584) (58,150)
Class B shares (156,851) (5,376)
Class C shares (243,166) (61,754)
Class R shares (2,162) --
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 2,047,555 209,565
TOTAL INCREASE (DECREASE) IN NET ASSETS 3,950,932 501,828
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 2,579,891 2,078,063
END OF PERIOD 6,530,823 2,579,891
Undistributed investment income (loss)--net (65,982) 4,131
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000 FOR
CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 61,612 9,279
Shares issued for dividends reinvested 1,096 1,113
Shares redeemed (10,490) (4,145)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 52,218 6,247
--------------------------------------------------------------------------------
CLASS B
Shares sold 25,499 1,122
Shares issued for dividends reinvested 143 113
Shares redeemed (7,767) (381)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 17,875 854
--------------------------------------------------------------------------------
CLASS C
Shares sold 23,587 13,114
Shares issued for dividends reinvested 119 189
Shares redeemed (11,275) (4,424)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 12,431 8,879
--------------------------------------------------------------------------------
CLASS R
Shares sold 386 --
Shares issued for dividends reinvested 168 176
Shares redeemed (84) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 470 176
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 35 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000 FOR
CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share.Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31
---------------------------
CLASS A SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 14.45 12.78 12.50
Investment Operations:
Investment income (loss)--net (.22)(b) .04(b) .13
Net realized and unrealized gain (loss)
on investments 10.93 1.75 .15
Total from Investment Operations 10.71 1.79 .28
Distributions:
Dividends from investment income--net (.11) (.12) --
Dividends from net realized gain on investments (.06) -- --
Total Distributions (.17) (.12) --
Net asset value, end of period 24.99 14.45 12.78
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 74.46(d) 14.18 2.24(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.12(d) 2.25 1.08(d)
Ratio of net investment income (loss)
to average net assets (.89)(d) .34 1.04(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation 1.24(d) 8.03 2.75(d)
Portfolio Turnover Rate 191.71(d) 206.09 10.65(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 4,282 1,721 1,442
(A) FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31
---------------------------
CLASS B SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 14.34 12.73 12.50
Investment Operations:
Investment income (loss)--net (.30)(b) (.05)(b) .08
Net realized and unrealized gain (loss)
on investments 10.85 1.74 .15
Total from Investment Operations 10.55 1.69 .23
Distributions:
Dividends from investment income--net (.05) (.08) --
Dividends from net realized gain on investments (.06) -- --
Total Distributions (.11) (.08) --
Net asset value, end of period 24.78 14.34 12.73
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 73.78(d) 13.36 1.84(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.49(d) 3.00 1.44(d)
Ratio of net investment income (loss)
to average net assets (1.26)(d) (.41) .69(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation 1.23(d) 8.03 2.75(d)
Portfolio Turnover Rate 191.71(d) 206.09 10.65(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 906 268 227
(A) FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31
--------------------------
CLASS C SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 14.32 12.73 12.50
Investment Operations:
Investment income (loss)--net (.31)(b) (.05)(b) .08
Net realized and unrealized gain (loss)
on investments 10.87 1.74 .15
Total from Investment Operations 10.56 1.69 .23
Distributions:
Dividends from investment income--net (.03) (.10) --
Dividends from net realized gain on investments (.06) -- --
Total Distributions (.09) (.10) --
Net asset value, end of period 24.79 14.32 12.73
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 73.86(d) 13.38 1.84(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.49(d) 3.00 1.43(d)
Ratio of net investment income (loss)
to average net assets (1.28)(d) (.38) .68(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation 1.24(d) 8.03 2.75(d)
Portfolio Turnover Rate 191.71(d) 206.09 10.65(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 925 356 204
(A) FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31
--------------------------
CLASS R SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 14.49 12.79 12.50
Investment Operations:
Investment income (loss)--net (.18)(b) .08(b) .14
Net realized and unrealized gain (loss)
on investments 10.94 1.75 .15
Total from Investment Operations 10.76 1.83 .29
Distributions:
Dividends from investment income--net (.14) (.13) --
Dividends from net realized gain on investments (.06) -- --
Total Distributions (.20) (.13) --
Net asset value, end of period 25.05 14.49 12.79
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 74.74(c) 14.54 2.32(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .99(c) 2.00 .96(c)
Ratio of net investment income (loss)
to average net assets (.77)(c) .59 1.16(c)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation 1.27(c) 8.03 2.75(c)
Portfolio Turnover Rate 191.71(c) 206.09 10.65(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 417 234 205
(A) FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
Period Ended
April 30, 2000(a)
CLASS T SHARES (Unaudited)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 28.39
Investment Operations:
Investment (loss) (.10)(b)
Net realized and unrealized gain (loss) on investments (3.36)
Total from Investment Operations (3.46)
Net asset value, end of period 24.93
--------------------------------------------------------------------------------
TOTAL RETURN (%)(C) (13.32)(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .42(d)
Ratio of investment income (loss) to average net assets (.33)(d)
Decrease reflected in above expense ratios due to
undertakings by The Dreyfus Corporation .32(d)
Portfolio Turnover Rate 191.71(d)
Net Assets, end of period ($ x 1,000) 1
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Greater China Fund (the "fund") is a separate non-diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering five series including the fund. The fund's investment
objective is long-term capital appreciation. The Dreyfus Corporation ("Dreyfus")
serves as the fund' s investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. (" Mellon" ), which is a wholly-owned subsidiary of Mellon
Financial Corporation. Hamon U.S. Investment Advisors Limited ("Hamon") serves
as the fund's sub-investment adviser. Hamon is an affiliate of Mellon.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. 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, Class R and
Class T shares. Class A and Class T 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 (Class B shares automatically convert to
Class A shares after six years) and Class R shares are sold at net asset value
per share only to institutional investors. Other differences between the classes
include the services offered to and the expenses borne by each class and certain
voting rights.
As of April 30, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares of the fund:
Class A .................... 114,096 Class C ..................16,195
Class B .................... 16,192 Class R ..................16,343
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series 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
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 $1,829 during the period ended April 30, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions.
Interest is charged to the fund at rates which are related to the Federal Funds
rate in effect at the time of the borrowings. During the period ended April 30,
2000, the fund did not borrow under the line of credit.
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of 1.25% of the value of the fund's
average daily net assets and is payable monthly. Dreyfus has undertaken from
November 1, 1999 through October 31, 2000 to reduce the management fee paid by
or reimburse such excess expenses of the fund, to the extent that the fund's
aggregate expenses, excluding 12b-1 distribution fees, shareholder service plan
fees, taxes, brokerage fees, interest on borrowings and extraordinary expenses,
exceed an annual rate of 2% of the value of the fund's average daily net assets.
The expense reimbursement, pursuant to the undertaking, amounted to $65,289
during the period ended April 30, 2000.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Hamon,
Dreyfus pays Hamon a fee payable monthly at the annual rate of .625 of 1% of the
value of the fund's average daily net assets.
DSC retained $5,919 during the period ended April 30, 2000, from 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, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets for Class T shares. During the period
ended April 30, 2000, Class B, Class C and Class T shares were charged $2,442,
$2,959 and $1, respectively, pursuant to the Plan, of which $761, $892 and $1
for Class B, Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at an annual rate of .25 of 1% of the
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
value of their average daily net assets for the provision of certain services.
The services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The distributor determines the amounts to be paid to
Service Agents. During the period ended April 30, 2000, Class A, Class B, Class
C and Class T shares were charged $4,245, $814, $986 and $1, respectively,
pursuant to the Shareholder Services Plan, of which $1,265, $254, $297 and $1
for Class A, Class B, Class C and Class T shares, respectively, were paid to
DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2000, the fund was charged $653 pursuant to the transfer agency
agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member receives an annual fee of $30,000 and a fee of $4,000 for each
meeting held in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 11, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the
Company an annual fee of $1,000 and an attendance fee of $250 per meeting. The
Chairman of the Board received an additional 25% of such compensation. Subject
to the fund's Director Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the Company's annual retainer fee and per meeting fee paid
at the time the Board member achieved emeritus status.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended April 30, 2000, amounted to $11,207,174 and $9,319,442,
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 April 30, 2000, there were no open forward currency
exchange contracts.
(b) At April 30, 2000, accumulated net unrealized depreciation on investments
was $130,343, consisting of $657,945 gross unrealized appreciation and $788,288
gross unrealized depreciation.
At April 30, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
NOTES
For More Information
Dreyfus Premier Greater China Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Hamon U.S. Investment-Advisors Ltd.
2701-2 One International Finance Centre
1 Harbour View Street, Central
Hong Kong
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 130SA004
Dreyfus
Premier European
Equity Fund
SEMIANNUAL REPORT April 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
14 Financial Highlights
17 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier European Equity Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier European
Equity Fund, covering the six-month period from November 1, 1999 through April
30, 2000. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio managers, Joanna Bowen and Kieran Gallagher.
When the reporting period began, it had become apparent that global economic
growth was substantially stronger than many analysts had expected. In fact, many
global markets had already rebounded sharply from 1998's currency and credit
crises in emerging market countries. The rally continued through the final two
months of 1999 and into the first quarter of 2000, before peaking in early
March. In April many markets around the world experienced heightened levels of
volatility when expensively priced technology stocks began to decline sharply in
the wake of evidence that inflationary pressures were building.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier European Equity Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Joanna Bowen and Kieran Gallagher, Portfolio Managers
How did Dreyfus Premier European Equity Fund perform relative to its benchmark
during the period?
For the six-month period ended April 30, 2000, the fund's total return was
37.84% for Class A shares, 37.34% for Class B shares, 37.34% for Class C shares,
38.05% for Class R shares and 37.52% for Class T shares.(1) For the same period,
the Financial Times Eurotop 300 Index, the fund's benchmark, produced a total
return of 7.09%.(2)
We attribute the fund' s good performance to our sector allocation strategy,
which led us to avoid underperforming industry groups such as pharmaceuticals
and food manufacturers, while emphasizing some of the market's top-performing
areas, such as the technology and telecommunications sectors. The fund also
benefited from good macroeconomic conditions, including positive economic
growth, relatively low interest rates as well as ongoing deregulation and
corporate restructuring.
What is the fund's investment approach?
Our investment approach begins at the strategic level. We establish a framework
of investment themes after considering economic data, the relative valuations of
both stocks and bonds, and the latest political and industrial developments.
These global and regional themes help us identify market sectors that we believe
have strong long-term growth prospects.
When choosing stocks within those industries, we employ the resources provided
by our in-house team of global securities analysts. Our research team strives to
identify the most compelling investment opportunities within industries that
have a positive long-term outlook. In addition, we look for companies that are
reasonably valued relative to similar companies both within Europe and
overseas.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
The fund was positively influenced by good economic and market conditions during
most of the six-month reporting period. Europe' s economic recovery has
continued, with economic activity building within core Europe in addition to
already robust levels of activity in non-core markets. A moderately
accommodative monetary policy, coupled with ongoing deregulation, corporate
restructuring and the weak euro, have also contributed to a positive stock
market environment.
After a dramatic advance during the final two months of 1999, however, many
European stock market averages have paused during the first four months of 2000.
While technology, media and telecommunications stocks have generally continued
to rise during the first quarter of 2000, progress in other market sectors was
limited against a backdrop of rising interest rates in the United States, the
United Kingdom and Europe. The European Central Bank raised interest rates
during the first quarter of 2000, and further increases are widely expected.
Our strategy of emphasizing investments in the volatile technology and
telecommunications industry groups was highly beneficial during the reporting
period. We decided to increase the fund's exposure to selected information
technology service stocks when we noted that European stocks in these areas had
not performed as strongly as their U.K. counterparts. We took advantage of this
valuation anomaly by purchasing the stocks of leading European technology
companies. Despite generally strong gains in the technology and
telecommunications sectors, it was definitely not all smooth sailing, however.
Several of the most popular software services stocks and business-to-consumer
stocks suffered a sharp sell-off in March and April when investor attention
shifted to previously out-of-favor "old economy" stocks.
What is the fund's current strategy?
Given the strong gains in the information technology sector during the reporting
period, we have become fairly cautious regarding the valuations of stocks that
we believe may have become over-extended.
Accordingly, we have recently reduced our exposure to telecommunications
companies, and we have cut back on our holdings in software and technology
services companies. We have redeployed those assets primarily in "old economy"
service companies that we believe have a clear competitive advantage and
comprehensible valuations. This strategy of targeting the better quality
companies with more rational valuations provided protection for the fund through
the volatility that has recently affected the information technology sector.
We have also continued to pursue a "bar-bell" investment approach. At one end of
the spectrum, the fund still maintains a modest emphasis on the ultra-growth
stocks in the volatile telecommunications and technology sectors. At the other
end of the spectrum, the fund has above-average exposure to cyclical stocks of
companies that we believe have the ability to raise prices in the global
economy.
May 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN
THE CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT
DEFERRED SALES CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND
CLASS C SHARES. HAD THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN
LOWER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. RETURN FIGURES PROVIDED
REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT
TO AN AGREEMENT IN EFFECT THROUGH OCTOBER 31, 2000, AT WHICH TIME IT MAY BE
EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT BEEN ABSORBED, THE
FUND'S RETURN WOULD HAVE BEEN LOWER.
(2) SOURCE: BLOOMBERG, L.P. -- REFLECTS THE REINVESTMENT OF NET DIVIDENDS AND,
WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE FINANCIAL TIMES EUROTOP
300 INDEX IS A MARKET CAPITALIZATION INDEX OF EUROPE'S LARGEST 300
COMPANIES.
The Fund
STATEMENT OF INVESTMENTS
STATEMENT OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS--92.2% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRIA--1.0%
Voest-Alpine Stahl 1,950 55,683
BELGIUM--.9%
Lernout & Hauspie Speech Products 520 (a) 50,310
FINLAND--3.7%
Nokia 3,560 204,284
FRANCE--10.9%
Axa 640 94,927
Elior 8,800 95,793
Lafarge 640 53,022
Rexel 910 62,811
Total Fina Elf 1,080 163,921
Vivendi 1,360 134,562
605,036
GERMANY--6.6%
Altana 1,150 82,567
Emprise Management Consulting 380 42,505
Global TeleSystems Group 2,700 (a) 37,322
Linde 1,943 74,743
SAP 170 79,773
Techem 1,800 48,617
365,527
IRELAND--3.0%
Bank of Ireland 11,500 77,599
Independent News & Media 10,700 85,434
163,033
ISRAEL--1.1%
Oridion Systems 2,400 58,419
ITALY--3.8%
Freedomland--Internet Television Network 330 26,979
Italcementi 9,900 86,663
Telecom Italia 7,000 97,957
211,599
NETHERLANDS--12.7%
Be Semiconductor Industries 3,200 (a) 64,895
ING Groep 2,090 114,077
Koninklijke Numico 1,400 52,072
Koninklijke (Royal) Philips Electronics 3,560 158,862
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS (CONTINUED)
PinkRoccade 930 (a) 58,356
Seagull Holding 1,800 (a) 40,268
VNU 2,170 116,134
Wegener 3,500 53,605
Wolters Kluwer 2,040 48,160
706,429
PORTUGAL--1.7%
Banco Pinto & Sotto Mayor 1,900 (a) 39,896
Portugal Telecom 4,800 53,560
93,456
SPAIN--2.8%
Actividades de Construccion y Servicious 1,900 52,665
Telefonica 4,700 (a) 104,632
157,297
SWEDEN--4.0%
Information Highway 3,400 (a) 35,018
Telefonaktiebolaget LM Ericsson 2,070 184,693
219,711
SWITZERLAND--2.0%
UBS 450 110,320
UNITED KINGDOM--37.1%
BP Amoco 7,700 66,282
Bank of Scotland 8,100 71,611
Billiton 19,100 70,717
Bodycote International 21,300 81,839
British Telecommunications 7,300 130,437
CGU 8,900 126,903
Capital Shopping Centres 10,100 59,424
Glaxo Wellcome 5,600 172,217
Granada 4,900 47,618
Imperial Chemical Industries 11,000 93,920
New Dixons Group 17,400 70,771
Northern Rock 9,000 46,246
Prudential 6,300 96,432
Rentokil Initial 41,900 114,318
Reuters Group 4,800 85,618
Severn Trent 12,900 130,469
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
Shell Transport & Trading 25,200 204,405
Stagecoach Holdings 49,000 47,923
Standard Chartered 5,600 74,851
Taylor Nelson Sofres 15,000 57,720
Vodafone AirTouch 45,600 208,475
2,058,196
UNITED STATES--.9%
LHS Group 1,300 (a) 51,072
TOTAL COMMON STOCKS
(cost $5,014,449) 5,110,372
------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--2.8%
------------------------------------------------------------------------------------------------------------------------------------
GERMANY:
Fielmann 2,200 72,025
Fresenius 370 83,110
TOTAL PREFERRED STOCKS
(cost $159,223) 155,135
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $5,173,672) 95.0% 5,265,507
CASH AND RECEIVABLES (NET) 5.0% 278,093
NET ASSETS 100.0% 5,543,600
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 5,173,672 5,265,507
Cash 135,919
Cash denominated in foreign currencies 50,085 49,640
Receivable for investment securities sold 121,597
Dividends receivable 22,582
Prepaid expenses 71,071
Due from The Dreyfus Corporation and affiliates 4,816
5,671,132
-------------------------------------------------------------------------------
LIABILITIES ($):
Payable for investment securities purchased 105,358
Accrued expenses 22,174
127,532
-------------------------------------------------------------------------------
NET ASSETS ($) 5,543,600
-------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 4,297,965
Accumulated investment (loss) (23,850
Accumulated net realized gain (loss) on investments and
foreign currency transactions 1,177,098
Accumulated net unrealized appreciation (depreciation) on investments
and foreign currency transactions 92,387
-------------------------------------------------------------------------------
NET ASSETS ($) 5,543,600
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 2,226,219 1,470,285 1,005,037 840,683 1,376
Shares Outstanding 123,322 82,319 56,275 46,387 76.537
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 18.05 17.86 17.86 18.12 17.98
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $4,257 foreign taxes withheld at source) 33,338
Interest 2,376
TOTAL INCOME 35,714
EXPENSES:
Investment advisory fee--Note 3(a) 21,094
Registration fees 52,790
Custodian fees 21,049
Distribution fees--Note 3(b) 7,772
Prospectus and shareholders' reports 5,725
Shareholder servicing costs--Note 3(c) 5,372
Auditing fees 4,560
Legal fees 956
Director's fees and expenses--Note 3(d) 606
Miscellaneous 3,068
TOTAL EXPENSES 122,992
Less- expense reimbursement from The
Dreyfus Corporation due to undertaking--Note 3(a) (63,428)
NET EXPENSES 59,564
INVESTMENT (LOSS) (23,850)
-------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-NOTE 4 ($):
Net realized gain (loss) on investments and
foreign currency transactions 1,188,532
Net realized gain (loss) on forward currency
exchange contracts (11,358)
NET REALIZED GAIN (LOSS) 1,177,174
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 42,476
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,219,650
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,195,800
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended Year Ended
April 30, 2000 October 31,
(Unaudited) 1999(a)
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (23,850) (11,625)
Net realized gain (loss) on investments 1,177,174 268,342
Net unrealized appreciation (depreciation) 42,476 49,911
on investments
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,195,800 306,628
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Net realized gain on investments:
Class A shares (104,119) --
Class B shares (55,604) --
Class C shares (56,553) --
Class R shares (48,618)
Class T shares (85) --
TOTAL DIVIDENDS (264,979) --
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 544,587 1,081,444
Class B shares 715,432 502,096
Class C shares 268,296 504,146
Class R shares 60,001 507,500
Class T shares -- 1,000
Dividends reinvested:
Class A shares 104,119 --
Class B shares 55,604 --
Class C shares 56,553 --
Class R shares 48,618 --
Class T shares 85 --
(A) ON DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) THE FUND COMMENCED
SELLING CLASS A, CLASS B, CLASS C AND CLASS R SHARES. ON SEPTEMBER 30, 1999
(COMMENCEMENT OF INITIAL OFFERING) THE FUND COMMENCED SELLING CLASS T
SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended Year Ended
April 30, 2000 October 31,
(Unaudited) 1999(a)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($) (continued):
Cost of shares redeemed:
Class A shares (549) (2,401)
Class B shares (64,311) --
Class C shares (70,999) --
Class R shares -- (5,070)
Class T shares -- --
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 1,717,436 2,588,715
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,648,257 2,895,343
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 2,895,343 -
END OF PERIOD 5,543,600 2,895,343
A ON DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) THE FUND COMMENCED
SELLING CLASS A, CLASS B, CLASS C AND CLASS R SHARES. ON SEPTEMBER 30,
1999 (COMMENCEMENT OF INITIAL OFFERING) THE FUND COMMENCED SELLING
CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended Year Ended
April 30, 2000 October 31,
(Unaudited) 1999(a)
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 31,222 85,939
Shares issued for dividends reinvested 6,368 --
Shares redeemed (29) (178)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 37,561 85,761
--------------------------------------------------------------------------------
CLASS B
Shares sold 42,214 40,150
Shares issued for dividends reinvested 3,428 --
Shares redeemed (3,473) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 42,169 40,150
--------------------------------------------------------------------------------
CLASS C
Shares sold 16,330 40,298
Shares issued for dividends reinvested 3,487 --
Shares redeemed (3,840) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 15,977 40,298
-------------------------------------------------------------------------------
CLASS R
Shares sold 3,232 40,557
Shares issued for dividends reinvested 2,964 --
Shares redeemed -- (366)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 6,196 40,191
-------------------------------------------------------------------------------
CLASS T
Shares sold -- 71
Shares issued for dividends reinvested 6 --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 6 71
(A) ON DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) THE FUND COMMENCED
SELLING CLASS A, CLASS B, CLASS C AND CLASS R SHARES. ON SEPTEMBER 30, 1999
(COMMENCEMENT OF INITIAL OFFERING) THE FUND COMMENCED SELLING CLASS T
SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
<CAPTION>
Class A Shares Class B Shares
--------------------------------------------------------------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
April 30 2000 October 31, April 30, 2000 October 31,
(Unaudited) 1999(a) (Unaudited) 1999(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 14.05 12.50 13.96 12.50
Investment Operations:
Investment income (loss)--net(b) (.06) (.03) (.13) (.12)
Net realized and unrealized gain (loss)
on investments 5.25 1.58 5.22 1.58
Total from Investment Operations 5.19 1.55 5.09 1.46
Distributions:
Dividends from net realized gain
on investments (1.19) -- (1.19) --
Net asset value, end of period 18.05 14.05 17.86 13.96
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C,D) 37.84 12.40 37.34 11.68
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets(c) 1.12 2.01 1.50 2.68
Ratio of net investment income (loss)
to average net assets(c) (.36) (.21) (.72) (.87)
Decrease reflected in above expense
ratio due to undertakings by
The Dreyfus Corporation(c) 1.35 3.29 1.33 3.29
Portfolio Turnover Rate(c) 88.59 104.68 88.59 104.68
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 2,226 1,205 1,470 560
(A) FROM DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
(D) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Class C Shares Class R Shares
--------------------------------------------------------------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
April 30 2000 October 31, April 30, 2000 October 31,
(Unaudited) 1999(a) (Unaudited) 1999(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.96 12.50 14.09 12.50
Investment Operations:
Investment income (loss)--net (b) (.13) (.12) (.04) .00(c)
Net realized and unrealized gain (loss)
on investments 5.22 1.58 5.26 1.59
Total from Investment Operations 5.09 1.46 5.22 1.59
Distributions:
Dividends from net realized gain
on investments (1.19) -- (1.19) --
Net asset value, end of period 17.86 13.96 18.12 14.09
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (D) 37.34(e) 11.68(e) 38.05 12.64
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets (d) 1.49 2.68 .98 1.79
Ratio of net investment income (loss)
to average net assets (d) (.74) (.87) (.25) .03
Decrease reflected in above expense
ratio due to undertakings by
The Dreyfus Corporation (d) 1.35 3.29 1.36 3.28
Portfolio Turnover Rate (d) 88.59 104.68 88.59 104.68
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1,005 563 841 566
(A) FROM DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01.
(D) NOT ANNUALIZED.
(E) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Class T
------------------------------------
Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31,1999(a)
-----------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C>
Net asset value, beginning of period 14.03 14.02
Investment Operations:
Investment income (loss)--net (b) (.11) (.04)
Net realized and unrealized gain (loss)
on investments 5.25 .05
Total from Investment Operations 5.14 .01
Distributions:
Dividends from net realized gain on investments (1.19) --
Net asset value, end of period 17.98 14.03
-----------------------------------------------------------------------------------------
TOTAL RETURN (%) (C,D) 37.52 .07
-----------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets (c) 1.37 .22
Ratio of net investment income (loss)
to average net assets (c) (.65) (.22)
Decrease reflected in above expense ratio
due to undertakings by The Dreyfus Corporation (c) 1.36 .42
Portfolio Turnover Rate (c) 88.59 104.68
-----------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1 1
A FROM SEPTEMBER 30, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 1999.
B BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
C NOT ANNUALIZED.
D EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier European Equity Fund (the "fund") is a separate diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering five series, including the fund. The fund's investment
objective is long-term capital growth. The Dreyfus Corporation ("Dreyfus")
serves as the fund' s investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial
Corporation. Newton Capital Management Limited ("Newton") serves as the fund's
sub-investment adviser. Newton is an affiliate of Mellon Bank, N.A.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. 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, Class R and
Class T shares. Class A and Class T shares are subject to a sales charge imposed
at the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase, Class C shares are subject to a CDSC imposed on Class C shares
redeemed within one year of purchase and Class R shares are sold at net asset
value per share only to institutional investors. Other differences between the
classes include the services offered to and the expenses borne by each class and
certain voting rights.
As of April 30, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares of the fund:
Class A .................... 85,832 Class C ...................42,940
Class B .................... 42,940 Class R ...................42,907
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series 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.
(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 $2,376 during the period ended April 30, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
fund at rates which are related to the Federal
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
Funds rate in effect at the time of borrowings. During the period ended April
30, 2000, the fund did not borrow under the line of credit.
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of .90 of 1% of the value of the
fund' s average daily net assets and is payable monthly. Dreyfus has undertaken
from October 31, 1999 through October 31, 2000 to reduce the management fee paid
by or reimburse such excess expenses of the fund, to the extent that the fund's
aggregate expenses, excluding 12b-1 distribution fees, shareholder service plan
fees, taxes, brokerage commissions, interest on borrowings and extraordinary
expenses, exceed an annual rate of 2% of the value of the fund's average daily
net assets. The expense reimbursement, pursuant to the undertaking, amounted to
$63,428 during the period ended April 30, 2000.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Newton, the
sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the
value of the fund's average daily net assets, computed at the following annual
rates:
Average Net Assets
0 to $100 million. . . . . . . . . . . . . . . . . .35 of 1%
$100 million to $1 billion . . . . . . . . . . . . .30 of 1%
$1 billion to $1.5 billion . . . . . . . . . . . . .26 of 1%
In excess of $1.5 billion. . . . . . . . . . . . . .20 of 1%
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
average daily net assets of Class T shares. During the period ended April 30,
2000, Class B, Class C and Class T shares were charged $4,276, $3,494 and $2,
respectively, pursuant to the Plan, of which $1,219 and $864 for Class B and
Class C shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
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, Class C and Class T
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 April 30, 2000,
Class A, Class B, Class C and Class T shares were charged $2,325, $1,425, $1,165
and $2, respectively, pursuant to the Shareholder Services Plan, of which $615,
$406 and $288 for Class A, Class B and Class C shares, respectively, were paid
to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2000, the fund was charged $369 pursuant to the transfer agency
agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member receives an annual fee of $30,000 and a fee of $4,000 for each
meeting held in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 11, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the
Company an annual fee of $1,000 and an attendance fee of $250 per meeting. The
Chairman of the Board received an additional 25% of such compensation. Subject
to the fund's Director Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the Company's annual retainer fee and per meeting fee paid
at the time the Board member achieved emeritus status.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended April 30, 2000, amounted to $5,109,101 and $3,892,949,
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 April 30, 2000, there were no open forward currency
exchange contracts.
(b) At April 30, 2000, accumulated net unrealized appreciation on investments
was $91,835 consisting of $590,065 gross unrealized appreciation and $498,230
gross unrealized depreciation.
At April 30, 2000, 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).
NOTES
For More Information
Dreyfus Premier European Equity Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Newton Capital Management Limited
71 Queen Victoria Street
London, EC4V 4DR
England
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 223SA004
Dreyfus Premier
Japan Fund
SEMIANNUAL REPORT April 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
8 Statement of Assets and Liabilities
9 Statement of Operations
10 Statement of Changes in Net Assets
12 Financial Highlights
17 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Japan Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Japan Fund,
covering the period from its December 15, 1999 inception through April 30, 2000.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Miki Sugimoto.
When the reporting period began, it had become apparent that global economic
growth was substantially stronger than many analysts had expected. In fact, many
global markets had already rebounded sharply from 1998's currency and credit
crises in emerging market countries. The rally continued through the final two
months of 1999 and into the first quarter of 2000, before peaking in early
March. In April, many markets around the world experienced heightened levels of
volatility when expensively priced technology stocks began to decline sharply in
the wake of evidence that inflationary pressures were building.
We appreciate your confidence and we look forward to your continued
participation in Dreyfus Premier Japan Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Miki Sugimoto, Portfolio Manager
How did Dreyfus Premier Japan Fund perform during the period?
Since its inception on December 15, 1999 through the end of the reporting period
on April 30, 2000, Dreyfus Premier Japan Fund produced a total return of 16.24%
for Class A shares, 15.92% for Class B shares, 15.92% for Class C shares, 16.32%
for Class R shares, and 16.16% for Class T shares.(1)
We attribute the fund' s positive performance primarily to Japan's ongoing
economic recovery and to the generally improving health of other Asian economies
that provide markets for Japanese goods. The fund also benefited from our
theme-based investment approach, which led us to focus the fund's assets across
several industry sectors that performed better than average.
What is the fund's investment approach?
The fund invests primarily in stocks of Japanese companies with a wide range of
market capitalizations, including small-, mid- and large-cap companies. We
generally invest 60% or more of the fund's assets in Japanese companies with
market caps of at least $1.5 billion at the time of investment.
Our investment selection process focuses on themes that we believe are likely to
drive global economic growth, such as the impact of new technologies and the
globalization of industries and brands. These themes help us identify industries
and market sectors that we believe offer above-average opportunities for
long-term growth.
Within selected markets and industries, we seek attractively priced companies
that appear to have substantial competitive advantages over their peers. We use
fundamental analysis in making individual purchasing decisions, and we generally
hold a security until the company's prospects decline, its stock becomes fully
valued by the market, or the theme underlying our investment changes. Since many
of the fund's
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
securities are denominated in yen, we may occasionally engage in currency
hedging to protect against depreciation versus the U.S. dollar.
What other factors influenced the fund's performance?
The fund benefited from continuing slow improvement of the Japanese economy in
the wake of the 1998 recession. Recovery trends established early in 1999 held
steady throughout the reporting period. Many Japanese companies benefited from a
healthier regional economy and internal restructurings undertaken in response to
the challenges of recession.
The fund took advantage of these trends by focusing on restructuring as a key
theme during the period. We looked for undervalued industries in which we
believed organizational changes were likely to produce heightened productivity
and sharpened competitiveness. Among the most promising opportunities we
identified was the Japanese brokerage industry. At the fund's inception in
December 1999, prices for most Japanese brokerage firms stood at very low levels
due to concerns regarding competition from the Internet and the impact of
commission price deregulation. We invested in several brokerage firms, such as
Ichiyoshi Securities, that had reduced their operating costs during the
recession and showed strong prospects for future growth, yet were selling at
single digit price-to-earnings multiples. Many of these investments performed
well for the fund after brokerage firms generally delivered strong earnings in
early 2000.
This restructuring theme helped us identify attractive investment opportunities
in other industries as well. Several of the fund's holdings in the industrial
sector, such as YASKAWA Electric, produced rising earnings and stock prices
after trimming underperforming divisions and emphasizing more profitable ones.
Other industries that supported the fund's positive performance included media
companies and technology, where we maintained our value conscious investment
approach. By avoiding the most highly valued technology stocks, we limited the
fund' s losses during the technology correction that occurred in March and April
2000.
What is the fund's current strategy?
Stock market volatility reached extremely high levels by the end of the
reporting period. We have taken steps to reduce the fund's volatility on several
fronts. For example, we have increased the fund' s cash position from
approximately 5% in mid-March 2000 to approximately 10% as of the end of the
reporting period, since cash tends to cushion the impact of stock price
fluctuations. We have also intensified our efforts to diversify the fund's
holdings across capitalization levels and industry sectors. In several
instances, we have found particularly attractive investment opportunities among
the stocks of small- to mid-sized companies, which have generally fallen more
sharply than large company stocks. We have also started turning our attention
toward undervalued industries, such as pharmaceuticals, that we believe offer
strong prospects for stable, long-term growth.
May 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD
THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE
DREYFUS CORPORATION PURSUANT TO AN AGREEMENT IN EFFECT THROUGH OCTOBER 31, 2000,
AT WHICH TIME IT MAY BE EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT
BEEN ABSORBED, THE FUND'S RETURN WOULD HAVE BEEN LOWER.
The Fund
STATEMENT OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS--90.1% Shares Value ($)
----------------------------------------------------------------------------------------
<S> <C> <C>
BASIC MATERIALS--7.3%
Kao 2,000 60,791
Sumitomo Electric Industries 6,000 79,767
TOSOH 8,000 42,203
182,761
CAPITAL GOODS--7.4%
DISCO 250 39,496
S.E.S. 3,000 44,623
SHINKAWA 2,400 101,995
186,114
COMMUNICATIONS--4.3%
NIPPON TELEGRAPH AND TELEPHONE 6 74,279
NTT DoCoMo 1 33,352
107,631
CONSUMER CYCLICAL--14.9%
ADERANS 2,200 95,732
ASAHI RUBBER 5,000 55,432
C TWO-NETWORK 500 83,149
KIRIN BREWERY 4,000 51,995
NISSAN MOTOR 19,000 (a) 86,188
372,496
ELECTRIC MACHINERY--22.8%
CASIO COMPUTER 6,000 65,965
FUNAI ELECTRIC 300 166,297
IBIDEN 6,000 93,126
NIKON 2,000 70,214
Sharp 4,000 77,051
YASKAWA Electric 7,000 (a) 99,529
572,182
ELECTRONIC TECHNOLOGY--8.6%
ALPINE ELECTRONICS 4,000 60,865
FUJITSU 3,000 84,812
SONY 600 69,041
214,718
FINANCIAL--8.6%
ACOM 700 67,323
Daiwa Securities Group 3,000 45,732
Ichiyoshi Securities 7,000 66,482
Shinko Securities 8,000 34,959
214,496
COMMON STOCKS (CONTINUED) Shares Value ($)
----------------------------------------------------------------------------------------
PHARMACETICAL--1.9%
KYORIN Pharmaceutical 1,000 48,965
PROPERTY/CONSTRUCTION--3.6%
Mitsubishi Estate 8,000 89,800
SERVICES--10.7%
Aoi Advertising Promotion 5,300 83,241
Fuji Television Network 1 16,630
H.I.S. 1,500 90,077
MEITEC 2,500 78,298
268,246
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT (cost $2,196,394) 90.1% 2,257,409
CASH AND RECEIVABLES (NET) 9.9% 246,666
NET ASSETS 100.0% 2,504,075
A NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
Cost Value
------------------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 2,196,394 2,257,409
Cash 254,175
Receivable for investment securities sold 12,009
Dividends receivable 6,460
Prepaid expenses 14,999
Due from The Dreyfus Corporation 15,695
2,560,747
------------------------------------------------------------------------------------------
LIABILITIES ($):
Net unrealized (depreciation) on forward
currency exchange contracts--Note 3(a) 10,871
Accrued expenses and other liabilities 45,801
56,672
--------------------------------------------------------------------------------
NET ASSETS ($) 2,504,075
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 2,174,847
Accumulated investment (loss) (12,264)
Accumulated net realized gain (loss) on investments and
foreign currency transactions 292,286
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 49,206
--------------------------------------------------------------------------------
NET ASSETS ($) 2,504,075
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 589,831 468,691 469,171 511,499 464,883
Shares Outstanding 40,568 32,324 32,357 35,143 32,000
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 14.54 14.50 14.50 14.55 14.53
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
From December 15, 1999 (commencement of operations) to April 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $959 foreign taxes withheld at source) 5,438
Interest 4,195
TOTAL INCOME 9,633
EXPENSES:
Investment advisory fee--Note 2(a) 8,618
Legal fees 40,761
Registration fees 15,574
Auditing fees 13,092
Custodian fees 3,005
Distribution fees--Note 2(b) 2,930
Shareholder servicing costs--Note 2(c) 1,976
Prospectus and shareholders' reports 1,918
Directors' fees and expenses--Note 2(d) 139
Miscellaneous 1,710
TOTAL EXPENSES 89,723
Less--expense reimbursement from The Dreyfus Corporation
due to undertaking--Note 2(a) (67,826)
NET EXPENSES 21,897
INVESTMENT (LOSS) (12,264)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 3 ($):
Net realized gain (loss) on investments and foreign currency
transactions 285,751
Net realized gain (loss) on forward currency exchange contracts 6,535
NET REALIZED GAIN (LOSS) 292,286
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions 49,206
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 341,492
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 329,228
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
From December 15, 1999 (commencement of operations) to April 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (12,264)
Net realized gain (loss) on investments 292,286
Net unrealized appreciation (depreciation) on investments 49,206
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 329,228
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 520,511
Class B shares 407,466
Class C shares 417,710
Class R shares 450,000
Class T shares 400,000
Cost of shares redeemed:
Class A shares (4,479)
Class B shares (3,092)
Class C shares (13,269)
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 2,174,847
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,504,075
--------------------------------------------------------------------------------
NET ASSETS ($)
Beginning of Period --
END OF PERIOD 2,504,075
SEE NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 40,842
Shares redeemed (274)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 40,568
--------------------------------------------------------------------------------
CLASS B
Shares sold 32,557
Shares redeemed (233)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 32,324
--------------------------------------------------------------------------------
CLASS C
Shares sold 33,257
Shares redeemed (900)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 32,357
--------------------------------------------------------------------------------
CLASS R
SHARES SOLD 35,143
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 32,000
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
periodfrom December 15, 1999 (commencement of operations) to April 30, 2000. All
information (except portfolio turnover rate) reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during each period, assuming you had reinvested
all dividends and distributions. These figures have been derived from the fund's
financial statements.
CLASS A SHARES
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss)--net (.01)(a)
Net realized and unrealized gain (loss)
on investments 2.05
Total from Investment Operations 2.04
Net asset value, end of period 14.54
--------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 16.24(c)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .86(c)
Ratio of net investment (loss)
to average net assets (.43)(c)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 3.03(c)
Portfolio Turnover Rate 170.73(c)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 590
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
CLASS B SHARES
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss)--net (.02)(a)
Net realized and unrealized gain (loss)
on investments 2.02
Total from Investment Operations 2.00
Net asset value, end of period 14.50
--------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 15.92 (c)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.12 (c)
Ratio of net investment (loss)
to average net assets (.71) (c)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 2.94 (c)
Portfolio Turnover Rate 170.73 (c)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 469
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS C SHARES
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss)--net (.02) (a)
Net realized and unrealized gain (loss)
on investments 2.02
Total from Investment Operations 2.00
Net asset value, end of period 14.50
--------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 15.92 (c)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.13 (c)
Ratio of net investment (loss)
to average net assets (.71) (c)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 2.95 (c)
Portfolio Turnover Rate 170.73 (c)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 469
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES LOAD.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
CLASS R SHARES
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss)--net (.01)(a)
Net realized and unrealized gain (loss)
on investments 2.06
Total from Investment Operations 2.05
Net asset value, end of period 14.55
--------------------------------------------------------------------------------
TOTAL RETURN (%) 16.32 (b)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .75 (b)
Ratio of net investment (loss)
to average net assets (.33) (b)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 2.97 (b)
Portfolio Turnover Rate 170.73 (b)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 511
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS T SHARES
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss)--net (.01) (a)
Net realized and unrealized gain (loss)
on investments 2.04
Total from Investment Operations 2.03
Net asset value, end of period 14.53
--------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 16.16 (c)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .93 (c)
Ratio of net investment (loss)
to average net assets (.52) (c)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 2.94 (c)
Portfolio Turnover Rate 170.73 (c)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 465
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Japan 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 five series including the fund, which commenced operations on December
15, 1999. The fund' s investment objective is long-term capital growth. The
Dreyfus Corporation ("Dreyfus") serves as the fund's investment adviser. Dreyfus
is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary
of Mellon Financial Corporation. Newton Capital Management Limited ("Newton")
serves as the fund's sub-investment adviser. Newton is an affiliate of Mellon
Bank, N.A.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC), a wholly-owned
subsidiary of Dreyfus, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. 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, Class R and
Class T shares. Class A and Class T 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 B shares automatically convert to Class A shares after six
years) , Class C shares are subject to a CDSC imposed on Class C shares redeemed
within one year of purchase and Class R shares are sold at net asset value per
share only to institutional investors. Other differences between the classes
include the services offered to and the expenses borne by each class and certain
voting rights.
As of April 30, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares of the fund:
Class A 32,000 Class C 32,000
Class B 32,000 Class R 32,000
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series 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.
(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 $4,195 during the period ended April 30, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the fund to qualify as a regulated
investment company, if such qualification is in the best interests of its
shareholders, by complying with the applicable provisions of the Code, and to
make distributions of taxable income sufficient to relieve it from substantially
all Federal income and excise taxes.
NOTE 2--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% of the value of the fund's
average daily net assets and is payable monthly. Dreyfus has undertaken from
December 15, 1999 through October 31,
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
2000 to reduce the management fee paid by or reimburse such excess expenses of
the fund, to the extent that the fund's aggregate expenses, excluding 12b-1
distribution fees, shareholder service plan fees, taxes, brokerage commissions,
interest on borrowings and extraordinary expenses, exceed an annual rate of 2%
of the value of the fund's average daily net assets. The expense reimbursement,
pursuant to the undertaking, amounted to $67,826 during the period ended April
30, 2000.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Newton, the
sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the
value of the fund's average daily net assets, computed at the following annual
rates:
AVERAGE NET ASSETS
0 to $100 million. . . . . . . . . . . . . . . . . .35 of 1%
$100 million to $1 billion . . . . . . . . . . . . .30 of 1%
$1 billion to $1.5 billion . . . . . . . . . . . . .26 of 1%
In excess of $1.5 billion. . . . . . . . . . . . . .20 of 1%
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T 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 and .25 of 1% of the value of
the average daily net assets of Class T. During the period ended April 30, 2000,
Class B, Class C and Class T shares were charged $1,252, $1,262 and $416,
respectively, pursuant to the Plan, of which $397, $403 and $131 for Class B,
Class C and Class T shares, respectively, were paid to DSC.
(C) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
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, Class C and Class T
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 April 30, 2000,
Class A, Class B, Class C and Class T shares were charged $478, $418, $421, and
$416, respectively, pursuant to the Shareholder Services Plan, of which $161,
$132, $134 and $131 for Class A, Class B, Class C and Class T shares,
respectively, were paid to DSC.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member receives an annual fee of $30,000 and a fee of $4,000 for each
meeting held in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 11, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the
Company an annual fee of $1,000 and an attendance fee of $250 per meeting. The
Chairman of the Board received an additional 25% of such compensation. Subject
to the fund's Director Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the Company's annual retainer fee and per meeting fee paid
at the time the Board member achieved emeritus status.
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 April 30, 2000, amounted to $5,765,031 and $3,849,283,
respectively.
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
exchange contracts, the fund would incur a loss if the value of the contract
increases between the date the forward contract is opened and the date the
forward contract is closed. The fund realizes a gain if the value of the
contract decreases between those dates. With respect to purchases of forward
currency exchange contracts, the fund would incur a loss if the value of the
contract decreases between the date the forward contract is opened and the date
the forward contract is closed. The fund realizes a gain if the value of the
contract increases between those dates. The fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract.
The following summarizes open forward currency exchange contracts at April 30,
2000:
<TABLE>
<CAPTION>
Foreign Unrealized
Currency Appreciation
Forward Currency Exchange Contracts Amounts Cost ($) Value ($) (Depreciation) ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES:
Japanese Yen, expiring 6/15/00 59,515,000 578,940 554,164 (24,776)
SALES: PROCEEDS ($)
Japanese Yen, expiring 6/15/00 177,996,000 1,671,284 1,657,379 13,905
TOTAL (10,871)
</TABLE>
(B) At April 30, 2000, accumulated net unrealized appreciation on investments
and forward currency exchange contracts was $50,144, consisting of $162,895
gross unrealized appreciation and $112,751 gross unrealized depreciation.
At April 30, 2000, 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).
NOTES
For More Information
Dreyfus Premier Japan Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Newton Capital Management Limited
71 Queen Victoria Street
London, EC4V 4DR
England
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 296SA004
Dreyfus Premier
Global Allocation
Fund
SEMIANNUAL REPORT April 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
7 Statement of Investments
16 Statement of Financial Futures
17 Statement of Assets and Liabilities
18 Statement of Operations
19 Statement of Changes in Net Assets
22 Financial Highlights
27 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier Global Allocation Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier Global
Allocation Fund, covering the six-month period from November 1, 1999 through
April 30, 2000. Inside, you'll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Lex C. Huberts.
When the reporting period began, it had become apparent that global economic
growth was substantially stronger than many analysts had expected. In fact, most
global stock markets had already rebounded from 1998's currency and credit
crises in emerging market countries. The global stock market rally continued
into the first quarter of 2000, before peaking in early March. In April, many
markets around the world experienced heightened levels of volatility when
expensively priced technology stocks began to decline sharply in the wake of
evidence that inflationary pressures may be building.
In the global bond markets, robust economic growth caused many nations' central
banks, including the Federal Reserve Board in the U.S., to raise interest rates
in an attempt to forestall inflationary pressures. These moves caused most bond
prices to fall. One notable exception, however, was U.S. Treasury securities,
which rallied because of reduced supply amid robust demand from investors
worldwide.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier Global Allocation Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Lex C. Huberts, Portfolio Manager
How did Dreyfus Premier Global Allocation Fund perform relative to its
benchmark?
For the six-month period ended April 30, 2000, the fund produced a total return
of 3.93% for Class A shares, 3.57% for Class B and Class C shares and 4.03% for
Class R shares.(1) This compares with a 3.50% return for the fund's global
balanced benchmark, which consists of 60% Morgan Stanley Capital International
World Index, 30% Salomon Smith Barney World Government Bond Index and 10% cash
(as measured by the Salomon Smith Barney Three Month CD Index) .(2)
From its March 1, 2000 inception through April 30, 2000, the fund's Class T
shares produced a total return of 1.05%.(1)
The fund slightly outperformed its global balanced benchmark during the
reporting period. Our asset-allocation strategy, which de-emphasized stock
investment, restrained performance when stock markets rallied earlier in the
period. However, in the last two months of the reporting period when stock
markets began to decline, performance benefited relative to funds that emphasize
stocks. Additionally, during a period of dollar strength, our currency strategy
generally benefited fund performance.
What is the fund's investment approach?
The fund seeks to take advantage of discrepancies in price that, from time to
time, occur in global financial markets. From a starting allocation of 60%
exposure to stocks, we analyze the relative value of stocks versus bonds versus
cash from the perspective of a local investor in each of the markets we follow.
If we believe, based on the fundamental economic outlook, that stocks are
inexpensive relative to bonds, we increase our stock allocation to over 60%.
Over time, the relationship in price should return to its appropriate level, and
stock prices will rise. Naturally, the converse is also true. If we believe
stocks are over
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
priced relative to bonds, we reduce our exposure to a level under the benchmark
Our country allocations are made on a country-by-country basis, again against a
measure of each country' s relative value: whether or not stocks, given the
outlook for profits, are expensive or cheap in comparison to stocks in other
markets. In each country' s market, we purchase individual stocks as well as
instruments that represent the performance of the market as a whole.
As of April 30, 2000, the fund's market exposure by country, taking into account
physical securities holdings and derivatives, was as follows:
Market Exposure by Country (as of April 30, 2000)
United States 35.9%
Japan 27.7%
Germany 14.4%
United Kingdom 8.2%
Other 5.0%
Netherlands 4.1%
Switerzerland 2.4%
France 1.3%
Italy 1.0%
Our currency-hedging strategy seeks to add value by taking advantage of
differences in REAL interest rates -- that is, interest rates that are adjusted
for inflation. Discrepancies in real interest rates occur when a country's
central bank manipulates monetary policy for domestic economic purposes, such as
combating unemployment or attempting to offset inflation. The effects of these
policies tend to spill over into international markets, creating opportunities
for global investors. Additionally, demand for a currency with high real
interest rates is
generally strong and the value of such a currency will rise over time. We seek
to emphasize currencies with high real interest rates and to de-emphasize those
currencies with low real interest rates.
What other factors influenced the fund's performance?
Equity markets around the world generally performed well in the last two months
of 1999, due to strong economic growth and increasing business confidence. The
fund was hurt in particular due to our underweighted position in U.S. equities
during this rally. Then, in early 2000, equity markets declined as investors
grew concerned about rising interest rates. As a result, the fund benefited from
our underweighted position relative to the benchmark in U.S. equities.
On the other hand, our currency positioning aided fund performance. Believing
that rising U.S. interest rates would strengthen the dollar, we hedged much of
our foreign currency exposure. That hedging protected fund return as foreign
currencies, the euro in particular, lost value in dollar terms.
What is the fund's current strategy?
We adjusted our portfolio several times to take advantage of opportunities when
relative value shifted between stocks and bonds. As stock prices rose through
the end of 1999, we reduced the fund's stock allocation. Then, when equity
markets faltered in mid-March and the relative value of stock investments
improved, we increased our exposure to near our neutral benchmark.
In our view, U.S. stocks remain greatly overvalued. Accordingly, we are
maintaining an exposure significantly under our benchmark. We also believe that
European stocks have become overvalued and have reduced our investments there as
well. On the other hand, we are currently emphasizing investments in Japan,
where we believe stock values have not kept pace with the country's recovery,
reform and earnings growth.
May 15, 2000
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN
THE CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT
DEFERRED SALES CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND
CLASS C SHARES. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE
PRICE AND INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND
SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. RETURN FIGURES
PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION
PURSUANT TO AN AGREEMENT IN EFFECT THROUGH OCTOBER 31, 2000, AT WHICH TIME
IT MAY BE EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT BEEN
ABSORBED, THE FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
NET DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. 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 SALOMON SMITH BARNEY WORLD
GOVERNMENT BOND INDEX (UNHEDGED) IS AN UNMANAGED, FIXED-INCOME INDEX AND A
MARKET CAPITALIZATION BENCHMARK THAT TRACKS THE PERFORMANCE AND COVERS DEBT
ISSUES OF 14 GOVERNMENT BOND MARKETS. THE SALOMON SMITH BARNEY THREE MONTH
CD INDEX IS A ROTATING SAMPLE COLLECTED BY THE NEW YORK FEDERAL RESERVE
BANK OF FIVE BANKS AND DEALERS SURVEYED DAILY ON SECONDARY MARKET DEALER
OFFER RATES FOR JUMBO CERTIFICATES OF DEPOSIT.
STATEMENT OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS--24.1% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AUSTRIA--.1%
Bank Austria 100 4,447
OMV 100 8,234
12,681
BELGIUM--.3%
Barco 100 10,936
Electrabel 50 12,116
Fortis (B) 400 10,123
Groupe Bruxelles Lambert 50 12,165
KBC Bancassurance 200 7,363
Solvay 100 6,780
Tractebel 100 12,667
72,150
DENMARK--.2%
A/S Dampskibsselskabet Svendborg, Cl. B 1 13,873
D/S 1912, Cl. B 1 10,084
Den Danske Bank 50 4,981
Tele Danmark 200 14,667
Unidanmark, Cl. A 100 8,005
51,610
FINLAND--1.0%
Nokia 3,800 218,511
UPM-Kymmene 300 7,792
226,303
HONG KONG--.6%
CLP 2,000 8,961
Cable & Wireless HKT 10,000 23,558
Cheung Kong 2,000 23,879
Hang Seng Bank 1,400 12,896
Hutchison Whampoa 3,000 43,714
New World Development 3,000 4,045
Sun Hung Kai Properties 2,021 16,022
Swire Pacific, Cl. A 2,000 11,298
144,373
IRELAND--.1%
Allied Irish Banks 700 7,004
CRH 400 6,416
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
IRELAND (CONTINUED)
Jefferson Smurfit 1,700 3,718
17,138
ITALY--1.0%
Assicurazioni Generali 800 22,753
Banca Intesa 1,300 4,850
ENI 6,400 31,775
Enel 1,000 4,261
Fiat 300 7,376
Mediaset 1,000 16,540
Mediobanca 600 4,993
Pirelli 1,700 4,116
Riunione Adriatica di Sicurta 500 5,086
San Paolo - IMI 1,222 17,194
Telecom Italia 3,000 42,069
Telecom Italia (RNC) 1,000 6,274
Telecom Italia Mobile 5,300 50,738
Telecom Italia Mobile (RNC) 2,000 7,790
UniCredito Italiano 2,500 10,268
236,083
JAPAN--15.3%
ACOM 200 19,264
ADVANTEST 200 45,728
ALPS ELECTRIC 1,000 12,722
ASAHI BREWERIES 1,000 10,178
ASAHI CHEMICAL INDUSTRY 2,000 11,511
AOYAMA TRADING 200 2,611
Ajinomoto 1,000 11,427
Asahi Bank 4,000 19,246
Asahi Glass 2,000 17,543
BANK OF FUKUOKA 1,000 6,597
BRIDGESTONE 1,000 21,698
Bank of Tokyo-Mitsubishi 7,000 90,289
Bank of Yokohama 2,000 7,661
Benesse 100 8,725
Benesse (Bonus) 100 8,725
CANON 1,000 45,709
CHUGAI PHARMACEUTICAL 1,000 19,246
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
Central Japan Railway 4 21,467
Citizen Watch 1,000 7,495
DAI NIPPON PRINTING 1,000 16,960
DAIKIN INDUSTRIES 1,000 19,015
DAINIPPON INK AND CHEMICALS 2,000 8,217
DENSO 1,000 24,475
Daiwa Bank 2,000 5,404
Daiwa House Industry 1,000 6,662
Daiwa Securities 3,000 45,802
EBARA 1,000 11,557
East Japan Railway 5 29,609
FANUC 600 62,845
FUJITSU 3,000 84,941
Fuji Bank 5,000 41,638
Fuji Photo Film 1,000 40,065
Furukawa Electric 2,000 27,740
Gunma Bank 1,000 5,015
HONDA MOTOR 1,000 44,691
Hitachi 4,000 47,745
ITOCHU 1,000 (a) 4,654
Industrial Bank of Japan 4,000 32,940
Isetan 1,000 9,253
JAPAN AIRLINES 2,000 6,218
JAPAN TOBACCO 3 22,068
JUSCO 1,000 18,506
Joyo Bank 2,000 7,143
KINDEN 1,000 6,172
KIRIN BREWERY 2,000 26,037
KOKUYO 1,000 14,203
KOMATSU 2,000 9,623
KONAMI 200 12,214
KONAMI (Bonus) 200 11,677
KUBOTA 3,000 9,771
KYOCERA 400 66,879
Kansai Electric Power 1,300 20,449
Kao 1,000 30,442
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
Kawasaki Heavy Industries 3,000 (a) 3,359
Kawasaki Steel 3,000 4,663
Kinki Nippon Railway 2,000 7,550
Kuraray 1,000 8,217
MARUI 1,000 18,783
MINEBEA 1,000 12,214
MITSUI & CO. 2,000 14,823
MYCAL 1,000 3,053
Matsushita Electric Industrial 3,000 79,389
Mitsubishi 2,000 17,395
Mitsubishi Chemical 2,000 8,013
Mitsubishi Electric 4,000 34,161
Mitsubishi Estate 2,000 22,484
Mitsubishi Heavy Industries 6,000 18,654
Mitsubishi Rayon 2,000 5,237
Mitsubishi Trust & Banking 2,000 16,785
Mitsui Fudosan 1,000 10,160
Mitsui Marine & Fire Insurance 1,000 4,395
NEC 2,000 54,407
NIDEC 100 6,940
NIDEC (Bonus) 100 6,940
NIKON 1,000 35,161
NIPPON MITSUBISHI OIL 2,000 6,921
NIPPON TELEGRAPH AND TELEPHONE 18 223,178
NIPPON STEEL 12,000 26,981
NISSAN MOTOR 5,000 (a) 22,716
NGK INSULATORS 1,000 9,207
NGK SPARK PLUG 1,000 10,585
NSK 1,000 7,708
Nichiei 100 1,980
Nintendo 200 33,310
Nippon Express 1,000 6,310
Nippon Paper Industries 2,000 12,658
Nippon Yusen Kabushiki Kaisha 2,000 7,957
Nomura Securities 3,000 75,503
OBAYASHI 2,000 6,958
OJI PAPER 2,000 12,547
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
OLYMPUS OPTICAL 1,000 16,396
OMRON 1,000 27,203
ORIENTAL LAND 100 10,613
ORIX 120 17,121
OSAKA GAS 3,000 8,189
Promise 200 16,192
ROHM 200 66,991
SANKYO 1,000 22,022
SANYO ELECTRIC 4,000 26,685
SHIMAMURA 100 14,555
SHIMANO 1,000 18,598
SHIMIZU 2,000 5,404
SHIZUOKA BANK 1,000 9,253
SMC 100 19,894
SOFTBANK 100 24,613
SOFTBANK (Bonus) 200 49,410
SUMITOMO 2,000 22,392
SUMITOMO CHEMICAL 3,000 14,934
SONY 700 80,379
SONY (Bonus) 700 80,962
Sakura Bank 6,000 42,082
Sekisui Chemical 1,000 3,664
Sekisui House 1,000 9,160
77 Bank 1,000 7,180
Sharp 2,000 38,584
Shin-Etsu Chemical 1,000 52,834
Shionogi & Co. 1,000 15,452
Sumitomo Bank 4,000 50,002
Sumitomo Electric Industries 1,000 13,315
Sumitomo Marine and Fire Insurance 1,000 5,274
Sumitomo Metal Industries 6,000 (a) 3,886
TAISHO PHARMACEUTICAL 1,000 33,495
TAKEFUJI 200 21,152
TEIJIN 2,000 8,938
TERUMO 1,000 30,257
TOKYO BROADCASTING SYSTEM 1,000 43,488
TOKYO GAS 5,000 11,011
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
TOKYU 2,000 7,846
TOPPAN PRINTING 1,000 10,456
TORAY INDUSTRIES 2,000 7,254
TOSHIBA 3,000 29,091
TOTO 1,000 6,135
TUBU RAILWAY 2,000 5,293
Takashimaya 1,000 7,819
Takeda Chemical Industries 1,000 65,788
Tohoku Electric Power 1,000 11,788
Tokai Bank 3,000 15,600
Tokio Marine & Fire Insurance 2,000 19,505
Tokyo Electric Power 1,600 37,752
Toyota Motor 5,000 248,439
YAMATO TRANSPORT 1,000 24,982
3,515,102
NETHERLANDS--1.0%
ABN AMRO 740 15,274
ASM Lithography 165 (a) 6,466
Aegon 150 10,806
Akzo Nobel 160 6,566
Elsevier 350 3,413
Getronics 50 2,989
Heineken 180 10,006
ING Groep 502 27,457
KPN 217 21,921
Koninklijke Ahold 311 7,270
Koninklijke (Royal) Philips Electronics 616 27,546
Royal Dutch Petroleum 985 56,910
TNT Post 240 5,249
Unilever 321 14,614
Wolters Kluwer 160 3,785
220,272
NEW ZEALAND--.0%
Telecom Corporation of New Zealand 2,000 8,460
NORWAY--.0%
Den Norske Bank 1,100 3,860
COMMON STOCKS (CONTINUED) Shares Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
NORWAY (CONTINUED)
Norsk Hydro 200 7,321
11,181
PORTUGAL--.1%
BPI-SGPS 1,330 4,339
Banco Comercial Portugues 1,500 7,053
Banco Espirito Santo 200 4,648
Electricidade de Portugal 300 5,331
Portugal Telecom 1,100 12,300
33,671
SINGAPORE--.3%
DBS 1,163 16,006
Oversea-Chinese Banking 2,100 14,389
Singapore Airlines 1,000 10,366
Singapore Press 900 17,605
Singapore Telecommunications 5,000 7,204
65,570
SPAIN--.8%
Altadis 300 3,535
Autopistas, Concesionaria Espanola 525 4,641
Banco Bilbao Vizcaya Argentaria 2,166 29,608
Banco Santander Central Hispano 2,820 29,476
Endesa 800 17,395
Fomento de Construcciones y Contratas 400 8,220
Gas Natural SDG, Cl. E 300 5,025
Iberdrola 700 9,001
Repsol - YPF 600 12,303
Sociedad General de Aguas de Barcelona 600 8,814
Telefonica 2,296 (a) 51,220
179,238
SWEDEN--.9%
Drott, Cl. B 200 1,787
Electrolux, Cl. B 300 5,077
ForeningsSparbanken 450 6,635
Hennes & Mauritz, Cl. B 600 15,950
NetCom, Cl. B 100 (a) 7,115
Sandvik, Cl. A 300 7,238
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
SWEDEN (CONTINUED)
Securitas, Cl. B 400 10,365
Skandia Forsakrings 400 19,167
Skandinaviska Enskilda Banken, Cl. A 500 5,473
Skanska, Cl. B 200 7,305
Svenska Cellulosa, Cl. B 300 5,696
Svenska Handelsbanken, Cl. A 600 7,941
Telefonaktiebolaget LM Ericsson, Cl. B 1,200 106,824
Volvo, Cl. A 300 7,020
Volvo, Cl. B 200 4,859
218,452
SWITZERLAND--2.4%
ABB 330 37,271
Adecco 25 20,561
Alusuisse Lonza 10 6,347
Credit Suisse 301 54,548
Holderbank Financiere Glarus 10 3,230
Holderbank Financiere Glarus, Cl. B 4 4,534
Nestle 41 72,414
Novartis 76 106,589
Roche (Bearer) 2 24,179
Roche (Genusss) 8 83,865
Sulzer 10 6,417
Swiss Re 16 25,765
Swisscom 80 28,338
UBS 233 57,246
Zurich Allied 59 25,136
556,440
TOTAL COMMON STOCKS
(cost $4,258,556) 5,568,724
------------------------------------------------------------------------------------------------------------------------------------
Principal
BONDS AND NOTES--20.8% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS--3.1%
Netherlands Government, Bonds:
6%, 1/15/2006 170,000 160,106
5.75%, 2/15/2007 176,445 164,872
5.25%, 7/15/2008 65,000 58,723
5.50%, 7/15/2010 175,000 160,154
7.50%, 1/15/2023 130,000 146,612
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS (CONTINUED)
5.50%, 1/15/2028 30,000 26,601
717,068
UNITED STATES--17.7%
U.S. Treasury, Notes,
6.50%, 8/15/2005 2,005,000 (b) 2,001,191
U.S. Treasury, Bonds,
8%, 11/15/2021 1,715,000 2,065,237
4,066,428
TOTAL BONDS AND NOTES
(cost $4,937,261) 4,783,496
-----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--53.5%
-----------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER:
A.I. Credit, 5.99%, 5/18/2000 800,000 797,737
American Honda Finance, 5.91%, 6/2/2000 400,000 397,899
Associates Corporation of North America,
6.02%, 5/1/2000 1,174,000 1,174,000
Citicorp, 6.03%, 5/4/2000 800,000 799,598
Daimlerchrysler, 5.86%, 5/8/2000 800,000 799,088
E. I. du Pont de Nemours, 6.02%, 5/4/2000 800,000 799,599
Ford Motor Credit, 6.03%, 6/9/2000 800,000 794,774
General Electric Credit, 6.03%, 5/4/2000 800,000 799,598
General Electric Credit, 5.92%, 6/6/2000 800,000 795,264
General Mills, 5.98%, 5/12/2000 800,000 798,538
General Motors, 5.78%, 5/12/2000 1,600,000 1,597,174
International Leasing, 5.88%, 5/25/2000 771,000 767,978
Toyota Motor Credit, 5.84%, 5/15/2000 400,000 399,091
Transamerica, 5.92%, 6/13/2000 800,000 794,343
USAA Capitol, 5.88%, 5/24/2000 800,000 796,995
TOTAL SHORT-TERM INVESTMENTS
(cost $12,311,676) 12,311,676
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $21,507,493) 98.4% 22,663,896
CASH AND RECEIVABLES (NET) 1.6% 356,558
NET ASSETS 100.0% 23,020,454
(A) NON-INCOME PRODUCING.
(B) PARTIALLY HELD BY THE CUSTODIAN IN A SEGREGATED ACCOUNT AS COLLATERAL FOR
OPEN FINANCAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF FINANCIAL FUTURES
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Unrealized
Market Value Appreciation
Covered by (Depreciation)
Contracts Contracts ($) Expiration at 4/30/2000 ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL FUTURES LONG:
Australian 10 Year Bond 1 82,213 June 2000 1,898
CAC 40 5 292,498 June 2000 1,644
Euro Bund 29 2,775,548 June 2000 49,547
Financial Times Stock Exchange 100 10 990,079 June 2000 (30,475)
German Stock 3 506,747 June 2000 (19,547)
Japanese 10 Year Government Bond 1 122,452 June 2000 1,277
Long Gilt 5 889,560 June 2000 17,933
Nikkei 8 235,999 June 2000 11,770
S&P 500 9 3,267,968 June 2000 142,000
Tokyo Price 16 2,441,075 June 2000 42,840
U.S. 10 Year Note 2 193,906 June 2000 (2,219)
U.S. Long Bond 7 675,940 June 2000 7,934
224,602
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Cost Value
---------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS ($):
Investments in securities--See Statement of Investments 21,507,493 22,663,896
Cash 27,545
Cash denominated in foreign currencies 27,976 26,230
Receivable for investment securities sold 216,062
Dividends and interest receivable 118,727
Receivable for futures variation margin--Note 4(a) 52,865
Prepaid expenses 23,910
23,129,235
----------------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 25,368
Net unrealized (depreciation) on forward
currency exchange contracts--Note 4(a) 61,162
Accrued expenses 22,251
108,781
----------------------------------------------------------------------------------------------
NET ASSETS ($) 23,020,454
----------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 21,351,300
Accumulated undistributed investment income--net 672,341
Accumulated net realized gain (loss) on investments and
foreign currency transactions (355,676)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (including
$224,602 net unrealized appreciation on financial futures) 1,352,489
-----------------------------------------------------------------------------------------------
NET ASSETS ($) 23,020,454
</TABLE>
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 8,131,957 7,991,516 2,279,489 4,616,482 1,010.40
Shares Outstanding 599,519 593,197 169,208 339,586 74.683
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 13.56 13.47 13.47 13.59 13.53
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 500,822
Cash dividends (net of $4,183 foreign taxes withheld at source) 24,135
TOTAL INCOME 524,957
EXPENSES:
Management fee--Note 3(a) 113,435
Distribution fees--Note 3(b) 37,993
Shareholder servicing costs--Note 3(c) 22,915
Registration fees 15,058
Auditing fees 13,716
Prospectus and shareholders' reports 9,368
Custodian fees 7,558
Legal fees 5,112
Directors' fees and expenses--Note 3(d) 2,104
Miscellaneous 15,981
TOTAL EXPENSES 243,240
Less--reduction in management fee due to
undertaking--Note 3(a) (22,612)
NET EXPENSES 220,628
INVESTMENT INCOME--NET 304,329
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 44,193
Net realized gain (loss) on forward currency exchange contracts (231,426)
Net realized gain (loss) on financial futures 415,482
NET REALIZED GAIN (LOSS) 228,249
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions (including $145,473 net unrealized
appreciation on financial futures) 306,441
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 534,690
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 839,019
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2000 Year Ended
(Unaudited)(a) October 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 304,329 397,880
Net realized gain (loss) on investments 228,249 1,500,345
Net unrealized appreciation (depreciation)
on investments 306,441 831,343
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 839,019 2,729,568
-------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (75,939) --
Class B shares (19,697) --
Class C shares (5,600) --
Class R shares (54,412) --
Net realized gain on investments:
Class A shares (361,133) --
Class B shares (361,294) --
Class C shares (102,720) --
Class R shares (205,487) --
TOTAL DIVIDENDS (1,186,282) --
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 86,759 32,966
Class B shares 46,983 36,816
Class C shares 13,929 --
Class R shares -- 1,000
Class T shares 1,000 --
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS (CONTINUED) ($):
Dividends reinvested:
Class A shares 437,072 --
Class B shares 379,618 --
Class C shares 108,320 --
Class R shares 259,900 --
Cost of shares redeemed:
Class A shares (30,111) (1,078)
Class B shares (23,161) (13)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 1,280,309 69,691
TOTAL INCREASE (DECREASE) IN NET ASSETS 933,046 2,799,259
-------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 22,087,408 19,288,149
END OF PERIOD 23,020,454 22,087,408
Undistributed investment income--net 672,341 523,660
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000 FOR
CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended
April 30, 2000 Year Ended
(Unaudited)(a) October 31, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 6,387 2,488
Shares issued for dividends reinvested 32,862 --
Shares redeemed (2,242) (81)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 37,007 2,407
--------------------------------------------------------------------------------
CLASS B
Shares sold 3,487 2,764
Shares issued for dividends reinvested 28,650 --
Shares redeemed (1,703) (1)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 30,434 2,763
--------------------------------------------------------------------------------
CLASS C
Shares sold 1,033 --
Shares issued for dividends reinvested 8,175 --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 9,208 --
--------------------------------------------------------------------------------
CLASS R
Shares sold -- 74
Shares issued for dividends reinvested 19,512 --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 19,512 74
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 75 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000 FOR
CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31
---------------------
CLASS A SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.81 12.07 12.50
Investment Operations:
Investment income--net .20(b) .29(b) .09
Net realized and unrealized gain (loss)
on investments .33 1.45 (.52)
Total from Investment Operations .53 1.74 (.43)
Distributions:
Dividends from investment income--net (.14) -- --
Dividends from net realized gain on investments (.64) -- --
Total Distributions (.78) -- --
Net asset value, end of period 13.56 13.81 12.07
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 3.93(d) 14.42 (3.44)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .83(d) 1.85 .59(d)
Ratio of net investment income
to average net assets 1.48(d) 2.17 .75(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .10(d) .13 .11(d)
Portfolio Turnover Rate 6.73(d) 40.60 12.26(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 8,132 7,769 6,758
(A) FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31
---------------------
CLASS B SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.67 12.04 12.50
Investment Operations:
Investment income--net .15(b) .19(b) .06
Net realized and unrealized gain (loss)
on investments .33 1.44 (.52)
Total from Investment Operations .48 1.63 (.46)
Distributions:
Dividends from investment income--net (.04) -- --
Dividends from net realized gain on investments (.64) -- --
Total Distributions (.68) -- --
Net asset value, end of period 13.47 13.67 12.04
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 3.57(d) 13.54 (3.68)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.20(d) 2.60 .84(d)
Ratio of net investment income
to average net assets 1.10(d) 1.42 .50(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .10(d) .13 .11(d)
Portfolio Turnover Rate 6.73(d) 40.60 12.26(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 7,992 7,695 6,740
(A) FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31
---------------------
CLASS C SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.67 12.04 12.50
Investment Operations:
Investment income--net .15(b) .19(b) .06
Net realized and unrealized gain (loss)
on investments .33 1.44 (.52)
Total from Investment Operations .48 1.63 (.46)
Distributions:
Dividends from investment income--net (.04) -- --
Dividends from net realized gain on investments (.64) -- --
Total Distributions (.68) -- --
Net asset value, end of period 13.47 13.67 12.04
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 3.57(d) 13.54 (3.68)(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.20(d) 2.60 .84(d)
Ratio of net investment income
to average net assets 1.10(d) 1.42 .50(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .10(d) .13 .11(d)
Portfolio Turnover Rate 6.73(d) 40.60 12.26(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 2,279 2,188 1,926
(A) FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31
---------------------
CLASS R SHARES (Unaudited) 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.86 12.08 12.50
Investment Operations:
Investment income--net .22(b) .32(b) .10
Net realized and unrealized gain (loss)
on investments .32 1.46 (.52)
Total from Investment Operations .54 1.78 (.42)
Distributions:
Dividends from investment income--net (.17) -- --
Dividends from net realized gain on investments (.64) -- --
Total Distributions (.81) -- --
Net asset value, end of period 13.59 13.86 12.08
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 4.03(c) 14.73 (3.36)(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .70(c) 1.60 .50(c)
Ratio of net investment income
to average net assets 1.60(c) 2.42 .84(c)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .10(c) .13 .11(c)
Portfolio Turnover Rate 6.73(c) 40.60 12.26(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 4,616 4,436 3,864
(A) FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 2000
CLASS T SHARES (Unaudited)(a)
---------------------------------------------------------------------------------------
<S> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.39
Investment Operations:
Investment income--net .04(b)
Net realized and unrealized gain on investments .10
Total from Investment Operations .14
Net asset value, end of period 13.53
--------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 1.05(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .53(d)
Ratio of net investment income to average net assets .31(d)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation .06(d)
Portfolio Turnover Rate 6.73(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Global Allocation Fund (the "fund") is a separate diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering five series including the fund. The fund's investment
objective is total return. The Dreyfus Corporation (the "Manager") serves as the
fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue 100 million shares of $.001 par value Common Stock in
each of the following classes of shares: Class A, Class B, Class C, Class R and
Class T shares. Class A and Class T 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 B shares automatically convert to A shares after six years),
Class C shares are subject to a CDSC imposed on Class C shares redeemed within
one year of purchase and Class R shares are sold at net asset value per share
only to institutional investors. Other differences between the classes include
the services offered to and the expenses borne by each class and certain voting
rights.
As of April 30, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares:
Class A ................... 592,716 Class C ................... 168,175
Class B ................... 588,613 Class R ................... 339,508
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
charged to that series' operations; expenses which are applicable to all series
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.
(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 $397 during the period ended April 30, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders by complying with the applicable provisions of the Code, and
to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions. Interest is charged to the
fund at rates which are related to the Federal Funds rate in effect at the time
of borrowings. During the period ended April 30, 2000, the fund did not borrow
under the line of credit.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of 1% of the value of the fund's average daily net
assets and is payable monthly. The Manager has undertaken from November 1, 1999
through October 31, 2000 to reduce the management fee paid by the fund, to the
extent that the fund's aggregate expenses, excluding 12b-1 distribution fees,
shareholder service plan fees, taxes, brokerage commissions, interest on
borrowings and extraordinary expenses, exceed an annual rate of 1.75% of the
value of the fund's average daily net assets. The reduction in management fee,
pursuant to the undertaking, amounted to $22,612 during the period ended April
30, 2000.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
April 30, 2000, Class B, Class C and Class T shares were charged $29,568, $8,424
and $1, respectively, pursuant to the Plan of which $6,600, $1,886 and $1 for
Class B, Class C and Class T shares, respectively, were paid to DSC.
(C) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services.
The distributor determines the amounts to be paid to Service Agents. During the
period ended April 30, 2000, Class A, Class B, Class C and Class T shares were
charged $10,000, $9,856, $2,808 and $1, respectively, pursuant to the
Shareholder Services Plan, of which $2,242, $2,200, $629 and $1 for Class A,
Class B, Class C and Class T shares, respectively, were paid to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2000, the fund was charged $199 pursuant to the transfer agency
agreement.
(D) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member receives an annual fee of $30,000 and a fee of $4,000 for each
meeting held in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 11, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the
Company an annual fee of $1,000 and an attendance fee of $250 per meeting. The
Chairman of the Board received an additional 25% of such compensation. Subject
to the fund's Director Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the Company's annual retainer fee and per meeting fee paid
at the time the Board member achieved emeritus status.
NOTE 4--Securities Transactions:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, financial futures and forward currency exchange
contracts, during the period ended April 30, 2000, amounted to $1,233,495 and
$893,963, respectively.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
The following summarizes open forward currency exchange contracts at April 30,
2000:
<TABLE>
<CAPTION>
Foreign Unrealized
Forward Currency Currency Appreciation
Exchange Contracts Amounts Cost ($) Value ($) (Depreciation) ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES:
British Pounds,
expiring 6/30/2000 1,225,980 1,942,167 1,919,288 (22,879)
Euro Dollars,
expiring 6/30/2000 3,505,000 3,346,977 3,206,810 (140,167)
SALES: PROCEEDS
Japanese Yen,
expiring 6/30/2000 312,727,000 3,010,630 2,924,230 86,400
Swiss Francs,
expiring 6/30/2000 963,000 578,222 562,738 15,484
TOTAL (61,162)
</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 counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gain on
each open contract.
The fund may invest in financial futures contracts in order to gain exposure to
or protect against changes in the market. The fund is exposed to market risk as
a result of changes in the value of the underlying financial instruments.
Investments in financial futures require the
fund to "mark to market" on a daily basis, which reflects the change in the
market value of the contract at the close of each day's trading. Accordingly,
variation margin payments are received or made to reflect daily unrealized gains
or losses. When the contracts are closed, the fund recognizes a realized gain or
loss. These investments require initial margin deposits with a custodian, which
consist of cash or cash equivalents, up to approximately 10% of the contract
amount. The amount of these deposits is determined by the exchange or Board of
Trade on which the contract is traded and is subject to change. Contracts open
at April 30, 2000 are set forth in the Statement of Financial Futures.
(B) At April 30, 2000, accumulated net unrealized appreciation on investments,
forward currency exchange contracts and financial futures was $1,319,843,
consisting of $2,150,960 gross unrealized appreciation and $831,117 gross
unrealized depreciation.
At April 30, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
For More Information
Dreyfus Premier Global Allocation Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 545SA004
Dreyfus Premier
International
Growth Fund
SEMIANNUAL REPORT April 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
15 Financial Highlights
20 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
International Growth Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Premier
International Growth Fund, covering the six-month period from November 1, 1999
through April 30, 2000. Inside, you'll find valuable information about how the
fund was managed during the reporting period, including a discussion with the
fund's portfolio manager, Douglas A. Loeffler, CFA.
When the reporting period began, it had become apparent that global economic
growth was substantially stronger than many analysts had expected. In fact, many
global markets had already rebounded sharply from 1998's currency and credit
crises in emerging market countries. The rally continued through the final two
months of 1999 and into the first quarter of 2000, before peaking in early
March. In April, many markets around the world experienced heightened levels of
volatility when expensively priced technology stocks began to decline sharply in
the wake of evidence that inflationary pressures were building.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Premier International Growth Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Douglas A. Loeffler, CFA, Portfolio Manager
How did Dreyfus Premier International Growth Fund perform relative to its
benchmark?
For the six-month period ended April 30, 2000, the fund produced a total return
of 24.14% for Class A shares, 23.58% for Class B shares, 23.66% for Class C
shares and 24.23% for Class R shares.(1) This compares with a 7.74% total return
produced by the fund' s benchmark, the Morgan Stanley Capital International
(MSCI) World ex U.S. Index, for the same period.(2)
From its March 1, 2000 inception through April 30, 2000, the fund's Class T
shares produced a total return of -15.01%.(1)
We attribute the fund' s strong performance to the global resurgence of the
growth stocks, including technology stocks, in which the fund invests. However,
toward the end of the period market sentiment seemed to shift away from growth
stocks, which dampened fund performance. Investors in the fund must be willing
to accept the volatility associated with global investments and the technology
sector.
What is the fund's investment approach?
The fund focuses on individual stock selection. We do not attempt to predict
interest rates or market movements, nor do we have country allocation models or
targets. Rather, we choose investments on a company-by-company basis, searching
to find the best-managed, best-positioned companies, wherever they may be.
Starting with roughly 1,000 of the largest companies outside of the United
States, we perform rigorous stock-by-stock analyses. Our goal is to identify
companies that we believe have achieved and can sustain growth through a strong
brand name, growing market share, high barriers to entry or untapped market
opportunities. In our view, these factors are the marks of companies whose
growth, in both revenues and earnings, will exceed that of global industry peers
as well as that of its local market.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
The fund will typically hold 60-80 stocks, broadly invested across countries and
industries, representing what we believe to be the best growth investment ideas
in the world.
What other factors influenced the fund's performance?
At the beginning of the reporting period, the fund benefited from strong global
demand for growth stocks. As Y2K concerns proved groundless, stock markets
continued their advance through year-end. After a brief January pause, the rally
in growth stocks continued through most of the first quarter.
However, from mid-March through the end of the reporting period, rapid swings in
stock markets and shifts in investor sentiment trimmed gains established
earlier, reducing overall fund return. Investors grew concerned over lofty stock
prices within the technology sector, and the effect higher interest rates might
have on stock valuations. While demand for stocks remained high, supply grew
rapidly, as firms rushed to market new shares. Supply eventually outstripped
demand, pushing prices downward. By the end of the reporting period, the equity
markets appeared to stabilize, even though concerns over higher interest rates
continued.
In terms of market sectors, the telecommunications, media and technology
industries, areas in which the fund placed a heavy investment emphasis, drove
the global advance. In terms of regional markets, the Japanese advance slowed,
as growth stocks there weakened beginning in December. A slower than hoped for
recovery and a strong yen held back earnings growth.
On the other hand, European markets advanced sharply, as the benefits of moving
away from a centralized economic model and toward a more competitive,
market-driven structure became apparent. Weakness in the euro, however,
negatively affected performance of the fund's European investments in dollar
terms.
What is the fund's current strategy?
Continental Europe remains an attractive area for investment, representing the
fund's largest regional exposure. Recently, we have
trimmed our investments in European financial firms, choosing instead to
concentrate on companies that are positioned to take advantage of convergence in
the telecommunications and entertainment industries. We have also de-emphasized
our investments in the United Kingdom, specifically within the financial service
industry. The fund' s largest country weighting is in Japan, where we believe
steps towards fundamental restructuring are apparently taking hold. We are also
taking advantage of select opportunities in emerging market countries, including
Asian technology firms outside Japan, as well as Latin American stocks that are
tied closely to U.S. market performance.
By industry sector, we have reduced emphasis on commodity telecommunication
providers, particularly in markets with many new entrants. In the media sector,
we are focusing more on company valuation and potential profitability. Within
the technology sector, we have begun to shift our emphasis away from European
companies and toward Asian manufacturers.
We believe these changes in our stock selection process will enable us to
continue to focus on uncovering the strongest growth opportunities worldwide.
May 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN
THE CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT
DEFERRED SALES CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND
CLASS C SHARES. HAD THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN
LOWER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
NET DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN
STANLEY CAPITAL INTERNATIONAL (MSCI) WORLD EX U.S. INDEX IS AN UNMANAGED
INDEX OF GLOBAL STOCK MARKET PERFORMANCE, EXCLUDING THE U.S., CONSISTING
SOLELY OF EQUITY SECURITIES.
The Fund
STATEMENT OF INVESTMENTS
April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS--92.4% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL--3.4%
Aracruz Celulose, ADR 62,750 1,173,085
Embratel Participacoes, ADR 40,275 906,188
Petroleo Brasileiro 6,100 1,350,304
3,429,577
CANADA--1.2%
AT&T Canada, Cl. B, ADR 28,600 (a) 1,219,129
DENMARK--1.5%
Novo Nordisk, Cl. B 11,650 1,564,006
FINLAND--6.7%
HPY Holding 35,850 1,291,365
Nokia, ADS 38,250 2,175,469
Perlos 58,000 2,149,598
Tietoenator 24,600 1,185,676
6,802,108
FRANCE--9.6%
Accor 30,725 1,141,403
Alcatel 7,225 1,675,456
Altran Technologies 6,025 1,231,710
Dassault Systemes 18,825 1,448,306
Thomson Multimedia 6,900 (a) 677,685
Total Fina Elf 12,008 1,822,560
Vivendi 17,625 1,743,865
9,740,985
HONG KONG--.9%
China Telecom (Hong Kong) 127,000 (a) 917,147
ISRAEL--1.9%
Check Point Software Technologies, ADR 4,175 (a) 726,094
Partner Communications, ADR 113,400 (a) 1,211,963
1,938,057
ITALY--4.2%
Alleanza Assicurazioni 157,500 1,614,351
Saipem 267,425 1,320,312
San Paolo-IMI 94,050 1,320,569
4,255,232
JAPAN--22.4%
AIFUL 10,575 1,064,925
Ajinomoto 118,000 1,346,360
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
CITIZEN ELECTRONICS 11,480 1,442,424
Don Quijote 4,183 707,214
FUJI MACHINE MFG. 10,600 735,458
Mitsubishi Electric 248,000 2,114,782
NEC 76,000 2,064,302
NIPPON TELEGRAPH AND TELEPHONE 134 1,658,906
Nippon Express 267,000 1,682,317
Nippon Television Network 2,030 1,513,498
PIONEER 83,000 2,262,103
SONY 6,400 739,098
TOKYO GAS 498,000 1,095,011
TOYODA GOSEI 29,000 1,674,520
Taiyo Yuden 22,000 1,554,878
Takeda Chemical Industries 17,000 1,116,685
22,772,481
LUXEMBOURG--1.3%
Societe Europeenne des Satellites 8,975 1,364,052
MEXICO--2.7%
Cemex, ADR 61,300 (a) 1,342,459
Telefonos de Mexico, ADR 24,450 1,438,509
2,780,968
NETHERLANDS--9.2%
ASM Lithography, ADR 35,650 (a) 1,426,362
Heineken 25,600 1,420,119
Koninklijke (Royal) Philips Electronics, ADR 66,550 2,969,794
STMicroelectronics 6,400 1,221,651
TNT Post 64,025 1,397,384
United Pan-Europe Communications 24,525 (a) 894,563
9,329,873
NORWAY--1.2%
Netcom 29,800 (a) 1,183,174
SINGAPORE--1.3%
NatSteel Electronics 229,000 1,314,858
SOUTH KOREA--2.2%
Samsung Electronics, GDR 14,000 (a,b) 2,257,500
SPAIN--2.4%
Altadis 116,250 1,366,931
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
SPAIN (CONTINUED)
Banco Santander Central Hispano 102,150 1,065,508
2,432,439
SWEDEN--6.5%
Electrolux , Cl. B 67,800 1,149,911
ForeningsSparbanken 112,150 1,657,278
Nordic Baltic 262,675 1,661,458
Telefonaktiebolaget LM Ericsson, Cl. B, ADR 23,650 2,091,547
6,560,194
SWITZERLAND--4.7%
Ares-Serono, Cl. B 320 983,173
Swatch 1,025 1,099,106
Swisscom 3,900 1,375,885
Synthes-Stratec 3,200 (a,b) 1,362,887
4,821,051
UNITED KINGDOM--8.1%
BP Amoco, ADS 25,300 1,290,364
Cable & Wireless 79,550 1,312,735
Energis 11,125 (a) 547,300
Invensys 376,600 1,797,749
Nycomed Amersham 143,397 1,093,013
Vodafone AirTouch 483,509 2,210,515
8,251,676
UNITED STATES--1.0%
NTL 13,825 (a) 1,057,613
TOTAL COMMON STOCKS
(cost $89,705,389) 93,992,120
------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--1.1%
------------------------------------------------------------------------------------------------------------------------------------
GERMANY;
Marschollek, Lautenschlaeger 2,075 1,098,238
(cost $959,239)
Principal
SHORT-TERM INVESTMENTS--10.8% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER:
American Express Credit, 5.90%, 5/1/2000 1,000,000 1,000,000
Assoc. Corp. of North America, 6.04%, 5/1/2000 5,000,000 5,000,000
General Electric Capital, 5.75%, 5/1/2000 5,000,000 5,000,000
(cost $11,000,000) 11,000,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $101,664,628) 104.3% 106,090,358
LIABILITIES, LESS CASH AND RECEIVABLES (4.3%) (4,346,026)
NET ASSETS 100.0% 101,744,332
(A) NON-INCOME PRODUCING.
(B) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT APRIL 30,
2000, THESE SECURITIES AMOUNTED TO $3,620,387 OR APPROXIAMATELY 3.6% OF NET
ASSETS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 101,664,628 106,090,358
Cash 134,265
Dividends receivable 288,331
Receivable for investment securities sold 83,124
Receivable for shares of Common Stock subscribed 45,636
Prepaid expenses 33,247
106,674,961
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 104,424
Payable for shares of Common Stock redeemed 2,621,062
Payable for investment securities purchased 2,131,321
Accrued expenses 73,822
4,930,629
--------------------------------------------------------------------------------
NET ASSETS ($) 101,744,332
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 68,614,955
Accumulated investment (loss) (316,364)
Accumulated net realized gain (loss) on investments
and foreign currency transactions 29,051,092
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 4,394,649
--------------------------------------------------------------------------------
NET ASSETS ($) 101,744,332
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 83,711,959 15,621,891 2,090,705 318,927 850
Shares Outstanding 4,334,978 838,481 115,463 16,528 44.150
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 19.31 18.63 18.11 19.30 19.25
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $49,439 foreign taxes witheld at source) 347,730
Interest 155,488
TOTAL INCOME 503,218
EXPENSES:
Management fee--Note 3(a) 389,802
Shareholder servicing costs--Note 3(c) 181,591
Distribution fees--Note 3(b) 90,183
Custodian fees 66,683
Professional fees 36,470
Registration fees 22,871
Prospectus and shareholders' reports 16,563
Directors' fees and expenses--Note 3(d) 9,687
Miscellaneous 5,732
TOTAL EXPENSES 819,582
INVESTMENT (LOSS) (316,364)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 29,658,348
Net unrealized appreciation (depreciation) on
investments and foreign currency transactions (8,057,224)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 21,601,124
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 21,284,760
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (316,364) (167,942)
Net realized gain (loss) on investments 29,658,348 8,656,131
Net unrealized appreciation (depreciation)
on investments (8,057,224) 7,868,350
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 21,284,760 16,356,539
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares -- (62,191)
Class R shares -- (300)
Net realized gain on investments:
Class A shares (2,226,325) --
Class B shares (869,984) --
Class C shares (39,906) --
Class R shares (3,736) --
TOTAL DIVIDENDS (3,139,951) (62,491)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 157,812,819 97,018,471
Class B shares 9,042,472 8,889,496
Class C shares 17,209,444 7,676,981
Class R shares 312,296 44,552
Class T shares 1,000 --
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($) (CONTINUED):
Dividends reinvested:
Class A shares 2,149,731 58,864
Class B shares 825,027 --
Class C shares 36,703 --
Class R shares 3,736 295
Cost of shares redeemed:
Class A shares (147,440,994) (89,448,790)
Class B shares (24,476,640) (42,381,559)
Class C shares (16,619,619) (7,274,598)
Class R shares (75,757) (11,506)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (1,219,782) (25,427,794)
TOTAL INCREASE (DECREASE) IN NET ASSETS 16,925,027 (9,133,746)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 84,819,305 93,953,051
END OF PERIOD 101,744,332 84,819,305
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000 FOR
CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
April 30, 2000(a) Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(B)
Shares sold 7,837,227 6,604,528
Shares issued for dividends reinvested 113,923 4,348
Shares redeemed (7,281,765) (6,067,447)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 669,385 541,429
--------------------------------------------------------------------------------
CLASS B(B)
Shares sold 467,040 634,452
Shares issued for dividends reinvested 45,158 --
Shares redeemed (1,268,058) (3,029,148)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (755,860) (2,394,696)
--------------------------------------------------------------------------------
CLASS C
Shares sold 904,030 552,113
Shares issued for dividends reinvested 2,067 --
Shares redeemed (854,340) (519,809)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 51,757 32,304
--------------------------------------------------------------------------------
CLASS R
Shares sold 14,137 3,155
Shares issued for dividends reinvested 198 22
Shares redeemed (3,570) (827)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 10,765 2,350
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 44 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000 FOR
CLASS T SHARES.
(B) DURING THE PERIOD ENDED APRIL 30, 2000, 850,198 CLASS B SHARES REPRESENTING
$16,804,153 WERE AUTOMATICALLY CONVERTED TO 822,115 CLASS A SHARES AND
DURING THE PERIOD ENDED OCTOBER 31, 1999, 1,484,026 CLASS B SHARES
REPRESENTING $20,911,825 WERE AUTOMATICALLY CONVERTED TO 1,444,292 CLASS A
SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31,
----------------------------------------------------------------
CLASS A SHARES (Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 16.07 13.33 16.45 16.59 16.10 15.78
Investment Operations:
Investment income (loss)--net (.04)(a) .00(a,b) .26 .00(b) .14 .24
Net realized and unrealized
gain (loss) on investments 3.90 2.76 (.86) 2.24 1.44 .47
Total from Investment Operations 3.86 2.76 (.60) 2.24 1.58 .71
Distributions:
Dividends from
investment income--net -- (.02) -- (.17) (.25) (.15)
Dividends from net realized
gain on investments (.62) -- (2.52) (2.21) (.84) (.24)
Total Distributions (.62) (.02) (2.52) (2.38) (1.09) (.39)
Net asset value,
end of period 19.31 16.07 13.33 16.45 16.59 16.10
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 24.14(d) 20.74 (4.50) 15.00 10.21 4.72
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets .69(d) 1.42 1.27 1.30 1.31 1.31
Ratio of interest expense
to average net assets -- -- .08 -- -- .01
Ratio of net investment income
(loss) to average net assets (.19)(d) (.01) .55 .00(e) .76 1.38
Portfolio Turnover Rate 152.00(d) 221.94 193.76 161.62 176.17 229.90
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 83,712 58,908 41,637 59,030 66,907 68,584
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
(E) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31,
----------------------------------------------------------------
CLASS B SHARES (Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 15.59 13.00 16.22 16.37 15.90 15.59
Investment Operations:
Investment income (loss)--net (.12)(a) (.06)(a) (.03)(a) (.14) .00(b) .10
Net realized and unrealized
gain (loss) on investments 3.78 2.65 (.67) 2.24 1.44 .49
Total from Investment Operations 3.66 2.59 (.70) 2.10 1.44 .59
Distributions:
Dividends from
investment income--net -- -- -- (.04) (.13) (.04)
Dividends from net realized
gain on investments (.62) -- (2.52) (2.21) (.84) (.24)
Total Distributions (.62) -- (2.52) (2.25) (.97) (.28)
Net asset value, end of period 18.63 15.59 13.00 16.22 16.37 15.90
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 23.58(d) 19.83 (5.22) 14.14 9.36 3.96
-----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.09(d) 2.18 2.04 2.05 2.06 2.06
Ratio of interest expense
to average net assets -- -- .08 -- -- .01
Ratio of net investment income
(loss) to average net assets (.68)(d) (.41) (.20) (.76) .01 .62
Portfolio Turnover Rate 152.00(d) 221.94 193.76 161.62 176.17 229.90
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period ($ x 1,000) 15,622 24,853 51,873 66,781 71,983 72,215
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31,
----------------------------------------------------------------
CLASS C SHARES (Unaudited) 1999 1998 1997 1996 1995(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 15.16 12.66 15.87 16.20 15.90 15.85
Investment Operations:
Investment income (loss)--net (.14)(b) (.14)(b) (.03)(b) (.12)(b) .28 (.01)
Net realized and unrealized
gain (loss) on investments 3.71 2.64 (.66) 2.18 1.14 .06
Total from Investment Operations 3.57 2.50 (.69) 2.06 1.42 .05
Distributions:
Dividends from
investment income--net -- -- -- (.18) (.28) --
Dividends from net realized
gain on investments (.62) -- (2.52) (2.21) (.84) --
Total Distributions (.62) -- (2.52) (2.39) (1.12) --
Net asset value, end of period 18.11 15.16 12.66 15.87 16.20 15.90
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 23.66(d) 19.75 (5.34) 14.17 9.36 .32(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 1.07(d) 2.22 2.04 2.10 1.90 .35(d)
Ratio of interest expense to
average net assets -- -- .08 .01 -- --
Ratio of investment (loss)
to average net assets (.59)(d) (.97) (.19) (.73) (.19) (.09)(d)
Portfolio Turnover Rate 152.00(d) 221.94 193.76 161.62 176.17 229.90
------------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period ($ x 1,000) 2,091 966 397 291 53 1
(A) FROM SEPTEMBER 5, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 1995.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Year Ended October 31,
----------------------------------------------------------------
CLASS R SHARES (Unaudited) 1999 1998 1997 1996 1995(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 16.05 13.32 16.43 16.59 16.11 16.04
Investment Operations:
Investment income--net .01(b) .02(b) .33 .17 .26 .01
Net realized and unrealized
gain (loss) on investments 3.86 2.77 (.92) 2.10 1.35 .06
Total from Investment Operations 3.87 2.79 (.59) 2.27 1.61 .07
Distributions:
Dividends from investment
income--net -- (.06) -- (.22) (.29) --
Dividends from net realized
gain on investments (.62) -- (2.52) (2.21) (.84) --
Total Distributions (.62) (.06) (2.52) (2.43) (1.13) --
Net asset value, end of period 19.30 16.05 13.32 16.43 16.59 16.11
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 24.23(c) 21.04 (4.44) 15.21 10.45 .44(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets .62(c) 1.24 1.08 1.09 .87 .18(c)
Ratio of interest expense to
average net assets -- -- .08 .01 -- --
Ratio of net investment income
to average net assets .06(c) .15 .70 .21 .94 .08(c)
Portfolio Turnover Rate 152.00(c) 221.94 193.76 161.62 176.17 229.90
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period ($ x 1,000) 319 92 45 80 4 1
(A) FROM SEPTEMBER 5, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31,
1995.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
Six Months Ended
April 30, 2000(a)
CLASS T SHARES (Unaudited)
-------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 22.65
Investment Operations:
Investment (loss) (.03)(b)
Net realized and unrealized gain (loss) on investments (3.37)
Total from Investment Operations (3.40)
Net asset value, end of period 19.25
-------------------------------------------------------------------------------
TOTAL RETURN (%)(c) (15.01)(d)
-------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .51(d)
Ratio of investment (loss) to average net assets (.15)(d)
Portfolio Turnover Rate 152.00(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Premier International Growth Fund (the "fund" ) is a separate
non-diversified portfolio of Dreyfus Premier International Funds, Inc. (the
" Company" ) which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company currently offering five 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., which is a wholly-owned subsidiary of
Mellon Financial Corporation.
On July 12, 1999, the Board of Directors approved the addition of Class T
shares, which became effective March 1, 2000.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. 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, Class R and
Class T shares. Class A and Class T 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 B shares automatically convert to Class A shares after six
years) , 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 series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(c) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund received net
earnings credits of $4,729 during the period ended April 30, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
In accordance with an agreement with a bank, the fund may borrow up to $10
million under a short-term unsecured line of credit. Interest on borrowings is
charged at rates which are related to Federal Funds rate in effect from time to
time. During the period ended April 30, 2000, the fund did not borrow under the
line of credit.
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.
DSC retained $11,787 during the period ended April 30, 2000 from 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, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
April 30, 2000, Class B, Class C and Class T shares were charged $84,479, $5,703
and $1, respectively, pursuant to the Plan, of which $14,506, $1,453 and $1 for
Class B, Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The distributor determines the amounts to be paid to Service
Agents. During the period ended April 30, 2000, Class A, Class B, Class C and
Class T shares were charged $99,621, $28,160, $1,901 and $1, respectively,
pursuant to the Shareholder Services Plan, of which $24,112, $4,835, $484 and $1
for Class A, Class B, Class C and Class T shares, respectively, were paid to
DSC.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (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 April 30, 2000, the fund was charged $37,741 pursuant to the transfer
agency agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member receives an annual fee of $30,000 and a fee of $4,000 for each
meeting held in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 11, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the
Company an annual fee of $1,000 and an attendance fee of $250 per meeting. The
Chairman of the Board received an additional 25% of such compensation. Subject
to the fund's Director Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the Company's annual retainer fee and per meeting fee paid
at the time the Board member achieved emeritus status.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities during the period ended April 30, 2000, amounted
to $146,117,461 and $148,831,124, respectively.
(b) At April 30, 2000, accumulated net unrealized appreciation on investments
was $4,425,730, consisting of $10,754,549 gross unrealized appreciation and
$6,328,819 gross unrealized depreciation.
At April 30, 2000, 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).
For More Information
Dreyfus Premier International Growth Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 092SA004
