Dreyfus Premier
International
Growth Fund
ANNUAL REPORT October 31, 1999
(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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
17 Financial Highlights
21 Notes to Financial Statements
26 Report of Independent Auditors
27 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Premier
International Growth Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier International
Growth Fund, covering the 12-month period from November 1, 1998 through October
31, 1999. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Douglas Loeffler.
When the reporting period began, much of the world was experiencing the
aftermath of a global currency and credit crisis, and many of the world's
central banks had lowered key short-term interest rates to stimulate economic
growth. This strategy appears to have been effective. Soon after 1999 began,
evidence emerged that less restrictive monetary policies had helped prevent
further economic deterioration in Japan and the emerging markets of Asia, Latin
America and Eastern Europe.
The prospect of better economic conditions and the start of banking reform and
corporate restructuring helped Japan lead the world's stock markets higher.
European markets also fared relatively well in local currency terms, but returns
were generally flat for U.S. investors after adjusting for currency-related
effects. The improving economic climate produced particularly good results for
emerging market stocks. Stocks in Southeast Asia began to recover in 1999,
showing their first signs of real strength in over a year. Latin America
provided good results after concerns about Brazil's currency devaluation abated.
Even selected markets in Eastern Europe performed well, despite ongoing
financial problems in Russia.
We appreciate your confidence over the past year, 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
November 15, 1999
DISCUSSION OF FUND PERFORMANCE
Douglas Loeffler, Portfolio Manager
How did Dreyfus Premier International Growth Fund perform relative to its
benchmark?
For the 12-month period ended October 31, 1999, the fund produced a total return
of 20.74% for Class A shares, 19.83% for Class B shares, 19.75% for Class C
shares and 21.04% for Class R shares.(1) This compares with a 23.49% total
return produced by the fund' s benchmark, the Morgan Stanley Capital
International World ("MSCI") Ex US Index (net dividends reinvested) for the same
period.(2)
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 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 will typically hold 55-75 stocks, broadly invested across countries and
industries, representing what we believe to be the best growth ideas in the
world. We generally sell a stock when it reaches its target price or when we
determine that circumstances have changed and it will most likely not reach the
previously set target sale price.
What other factors influenced the fund's performance?
The fund benefited from the recovery of Japan's economy and financial markets,
which advanced strongly during the reporting period. The Fun
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Electronics firms were market leaders and their growth fueled downstream demand
for electronic components. Benefiting from a growing wave of deregulation,
consolidation and restructuring, telecommunications providers and equipment
manufacturers, as well as banking and other financial service companies,
advanced sharply. Throughout the period, the sharp rise of the yen against the
dollar boosted the Japanese market's return in dollar terms.
On the other hand, the fund received mixed results from European markets. Stocks
advanced early in the reporting period, in response to strong U.S. markets and
in anticipation of the introduction of the new common currency, the euro.
However, midway through the fund's fiscal year, European markets stalled, as
initial euphoria over the euro ebbed and its value declined against the dollar.
As the period ended, European economic recovery was clearly under way. Business
and consumer confidence increased, and exports and industrial production rose,
prompting the euro to rebound as well. Perhaps most importantly, economic
integration, spurred by the introduction of a common currency and increased
cross-border merger activity, is creating a new, highly competitive business
culture. The creation of shareholder value has become top priority for investors
and money managers alike.
What is the fund's current strategy?
We further diversified the portfolio later in the period, increasing the number
of companies in which we invest to approximately 75, up from 55-60 earlier in
the year. We did this for two reasons: first, to take advantage of the expanding
number of growth opportunities we see in world markets; and second, to protect
the portfolio from recently renewed market volatility.
In Japan, a recent slowdown in foreign investment has resulted in more volatile
markets. In response, we took profits in several of our investments after
valuations increased sharply. Most recently, we have been shifting our focus
away from leading-edge, high-technology investments, choosing instead to place a
greater emphasis on companies we believe are positioned to benefit from a
recovery of the Japanese domestic economy.
In Europe, our prime investment emphasis has been in the rapidly deregulating
telecommunications industry, with a special focus on mobile telephone and cable
television operators. The capital goods sector also remains attractive. Here we
are concentrating our investments in manufacturers of telecommunications
equipment and semiconductors. The German economy, always a prime driver of
continental economic health, appears to be recovering and the French, Spanish
and Scandinavian markets remain strong; we have concentrated investments in
these countries. We have, however, decreased exposure to the United Kingdom,
where interest rates are high and rising, fanning inflation fears.
Elsewhere, we have slightly reduced our exposure to emerging markets because we
feel they have become more fully valued. On the other hand, Canadian companies
appear very attractively valued when compared to their peers in the United
States, and we are actively seeking investment opportunities there.
November 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGES
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 PRICES AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST
(2) SOURCE: MORGAN STANLEY CAPITAL INTERNATIONAL -- 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.
INCLUDES NET DIVIDENDS REINVESTED.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier
International Growth Fund Class A shares with the Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE((reg.tm))) Index and the
Morgan Stanley Capital International World Ex U.S. Index
((+)) SOURCE: MORGAN STANLEY CAPITAL INTERNATIONAL
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES OF DREYFUS
PREMIER INTERNATIONAL GROWTH FUND ON 1/31/92 (INCEPTION DATE) TO A $10,000
INVESTMENT MADE ON THAT DATE IN THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD
EX US INDEX AS WELL AS THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE,
AUSTRALASIA, FAR EAST (EAFE((reg.tm)))INDEX. ALL DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS B, CLASS C AND CLASS R
SHARES WILL VARY FROM THE PERFORMANCE OF CLASS A SHARES SHOWN ABOVE DUE TO
DIFFERENCES IN CHARGES AND EXPENSES.
THIS IS THE FIRST YEAR IN WHICH COMPARATIVE PERFORMANCE IS BEING SHOWN FOR THE
MORGAN STANLEY CAPITAL INTERNATIONAL WORLD EX US INDEX, WHICH HAS BEEN SELECTED
AS THE PRIMARY INDEX FOR COMPARING THE FUND'S PERFORMANCE. THE MORGAN STANLEY
CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (EAFE((reg.tm)))INDEX WAS
THE FUND'S BENCHMARK INDEX LAST YEAR. PERFORMANCE FOR THIS INDEX WILL NOT BE
PROVIDED WITH THE NEXT ANNUAL REPORT, BUT IS PROVIDED HEREWITH PURSUANT TO
APPLICABLE REGULATIONS.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM
INITIAL SALES CHARGE ON CLASS A SHARES AND ALL OTHER APPLICABLE FEES AND
EXPENSES. THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD EX US INDEX IS AN
UNMANAGED INDEX OF GLOBAL STOCK MARKET PERFORMANCE, EXCLUDING THE U.S.,
CONSISTING SOLELY OF EQUITY SECURITIES AND INCLUDES NET DIVIDENDS REINVESTED.
THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST
(EAFE((reg.tm)))INDEX IS AN UNMANAGED INDEX COMPOSED OF A SAMPLE OF COMPANIES
REPRESENTATIVE OF THE MARKET STRUCTURE OF EUROPEAN AND PACIFIC BASIN COUNTRIES
AND INCLUDES NET DIVIDENDS REINVESTED.
NEITHER OF THE FOREGOING INDICES TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
Average Annual Total Returns AS OF 10/31/99
<TABLE>
<CAPTION>
Inception From
Date 1 Year 5 Years Inception
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Shares
<S> <C> <C> <C> <C>
WITH SALES CHARGE (5.75%) 1/31/92 13.82% 7.60% 18.85%
WITHOUT SALES CHARGE 1/31/92 20.74% 8.88% 9.68%
Class B Shares
WITH REDEMPTION((+)) 1/15/93 15.83% 7.77% 8.86%
WITHOUT REDEMPTION 1/15/93 19.83% 8.07% 8.86%
Class C Shares
WITH REDEMPTION((+)(+)) 9/5/95 18.75% -- 8.79%
WITHOUT REDEMPTION 9/5/95 19.75% -- 8.79%
Class R Shares
9/5/95 21.04% -- 9.85%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
( (+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%
AND IS REDUCED TO 0% AFTER SIX YEARS.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
The Fund
</TABLE>
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
October 31, 1999
COMMON STOCKS--87.4% Shares Value ($)
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AUSTRIA--1.1%
<S> <C> <C>
Bank Austria 18,000 896,977
BELGIUM--.7%
Lernout & Hauspie Speech Products, ADR 18,900 (a) 635,513
CANADA--2.9%
AT&T Canada, ADR 29,200 (a) 941,700
Nortel Networks, ADR 15,200 941,450
Telesystems International Wireless 31,275 (a) 573,931
2,457,081
DENMARK--1.3%
Novo Nordisk, Cl. B 9,175 1,103,415
FINLAND--1.0%
Nokia, ADS 7,500 866,719
FRANCE--6.4%
Accor 3,800 857,276
Alcatel 6,600 1,033,221
Altran Technologies 5,050 1,734,997
Elf Aquitaine 7,900 1,165,945
Vivendi 8,429 640,226
5,431,665
GERMANY--8.0%
Bayerische Motoren Werke 42,250 1,349,560
Continental 45,500 990,500
Deutsche Bank 14,300 1,028,119
Douglas Holding 9,000 409,399
Epcos, ADR 21,275 (a) 866,956
Mannesmann 7,525 1,185,962
Preussag 17,771 964,811
6,795,307
HONG KONG--1.5%
China Telecom (Hong Kong) 206,000 (a) 705,407
China Telecom (Hong Kong), ADS 9,000 (a) 607,500
1,312,907
IRELAND--1.4%
Esat Telecom, ADS 26,000 (a) 1,163,500
ISRAEL--1.4%
Partner Communications, ADR 73,600 (a) 1,159,200
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
ITALY--2.9%
Alleanza Assicurazioni 84,000 857,368
Banca Intesa 380,000 738,699
Bulgari 120,000 851,372
2,447,439
JAPAN--20.3%
Bank of Fukuoka 132,000 1,017,285
Internet Initiative Japan, ADR 7,500 (a) 403,125
JAPAN TELECOM 50 1,717,933
Kao 45,000 1,373,386
Konami 14,000 1,357,071
NTT Mobile Communications Network 86 2,286,290
Nippon Express 174,000 1,232,420
RICOH 64,400 1,051,340
Ryohin Keikaku 4,825 928,927
SOFTBANK 3,750 1,558,376
SONY 9,300 1,451,298
Sakura Bank 88,000 756,735
TAKEFUJI 9,500 1,230,865
TDK 8,700 852,507
17,217,558
LUXEMBOURG--.9%
Societe Europeenne des Satellites 6,100 763,636
MEXICO--.7%
Telefonos de Mexico, ADR 7,400 632,700
NETHERLANDS--8.1%
ASM Lithography, ADR 18,550 (a) 1,347,194
Benckiser, Cl. B 18,500 1,096,052
Getronics 15,000 749,536
ING Groep 19,100 1,129,183
STMicroelectronics 17,950 1,580,061
United Pan-Europe Communications 11,100 (a) 855,388
VNU 3,250 110,151
6,867,565
NORWAY--.7%
Tomra Systems 16,500 632,135
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
PORTUGAL--1.7%
Brisa-Auto Estradas de Portugal 35,700 1,409,429
SINGAPORE--1.8%
Chartered Semiconductor Manufacturing, ADR 9,425 (a) 312,792
DBS Group 104,899 1,186,583
1,499,375
SOUTH KOREA--1.1%
Korea Telecom, ADR 26,900 (a) 948,225
SPAIN--4.6%
Amadeus Global Travel Distribution, Cl. A 90,225 (a) 541,205
Banco Santander Central Hispano 79,200 824,072
Centros Comerciales Continente 29,000 696,426
Tabacalera, Cl. A 48,575 801,402
Telefonica Publicidad e Informacion 46,025 (a) 1,006,781
3,869,886
SWEDEN--2.4%
ForeningsSparbanken 50,000 798,420
Skandia Forsakrings 56,000 1,249,193
2,047,613
SWITZERLAND--3.2%
ABB 8,100 (a) 808,647
Roche Holding Ag-Genusss 87 1,046,058
Swatch 1,050 837,516
2,692,221
TAIWAN--1.0%
Taiwan Semiconductor Manufacturing, ADS 23,781 (a) 823,417
UNITED KINGDOM--11.2%
BP Amoco, ADS 17,000 981,750
COLT Telecom 36,000 (a) 1,076,622
Dixons 42,000 744,383
Energis 36,400 (a) 1,161,596
Pearson 76,000 1,708,088
Rentokil Initial 230,000 766,685
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
SmithKline Beecham, ADR 15,400 985,600
Vodafone AirTouch 230,000 1,070,145
WPP 93,000 1,009,913
9,504,782
UNITED STATES--1.1%
Global TeleSystems Group 38,410 (a) 919,439
TOTAL COMMON STOCKS
(cost $61,933,058) 74,097,704
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PREFERRED STOCKS--2.4%
- ------------------------------------------------------------------------------------------------------------------------------------
BRAZIL--1.5%
Petroleo Brasileiro 9,750 1,328,863
GERMANY--.9%
SAP 1,700 750,907
TOTAL PREFERRED STOCKS
(cost $1,754,157) 2,079,770
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Principal
SHORT-TERM INVESTMENTS--13.0% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
AGENCY DISCOUNT NOTES
Federal Home Loan Assoc, 5.16% 11/1/99
(cost $11,000,000) 11,000,000 11,000,000
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TOTAL INVESTMENTS (cost $74,687,215) 102.8% 87,177,474
LIABILITIES, LESS CASH AND RECEIVABLES (2.8%) (2,358,169)
NET ASSETS 100.0% 84,819,305
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 74,687,215 87,177,474
Cash 426,291
Receivable for investment securities sold 1,431,626
Dividends receivable 315,005
Prepaid expenses 27,380
89,377,776
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 50,894
Due to Distributor 32,915
Payable for investment securities purchased 4,283,012
Payable for shares of Common Stock redeemed 110,571
Accrued expenses 81,079
4,558,471
- --------------------------------------------------------------------------------
NET ASSETS ($) 84,819,305
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 69,834,737
Accumulated net realized gain (loss) on investments
and foreign currency transactions 2,532,695
Accumulated net unrealized appreciation (depreciation) on investments
and foreign currency transactions 12,451,873
- --------------------------------------------------------------------------------
NET ASSETS ($) 84,819,305
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C Class R
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 58,908,073 24,853,115 965,631 92,486
Shares Outstanding 3,665,592 1,594,341 63,706 5,763
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 16.07 15.59 15.16 16.05
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Year Ended October 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME
Cash dividends (net of $185,063 foreign taxes withheld at source) 1,202,931
Interest 139,497
TOTAL INCOME 1,342,428
EXPENSES:
Management fee--Note 3(a) 640,711
Shareholder servicing costs--Note 3(c) 310,076
Distribution fees--Note 3(b) 295,455
Custodian fees 104,170
Professional fees 59,217
Registration fees 49,584
Prospectus and shareholders' reports 27,131
Directors' fees and expenses--Note 3(d) 19,700
Miscellaneous 4,326
TOTAL EXPENSES 1,510,370
INVESTMENT (LOSS) (167,942)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 8,516,124
Net realized gain (loss) on forward currency exchange contracts 140,007
NET REALIZED GAIN (LOSS) 8,656,131
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 7,868,350
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 16,524,481
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 16,356,539
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
----------------------------
1999 1998
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income (loss)--net (167,942) 176,999
Net realized gain (loss) on investments 8,656,131 (5,024,444)
Net unrealized appreciation (depreciation)
on investments 7,868,350 2,812,814
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 16,356,539 (2,034,631)
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (62,191) --
Class R shares (300) --
Net realized gain on investments:
Class A shares -- (8,881,717)
Class B shares -- (10,185,321)
Class C shares -- (35,735)
Class R shares -- (12,932)
TOTAL DIVIDENDS (62,491) (19,115,705)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 97,018,471 53,917,170
Class B shares 8,889,496 5,524,765
Class C shares 7,676,981 296,792
Class R shares 44,552 47,105
Year Ended October 31,
---------------------------------
1999 1998
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS (CONTINUED) ($):
Dividends reinvested:
Class A shares 58,864 8,559,934
Class B shares -- 9,726,754
Class C shares -- 29,819
Class R shares 295 12,932
Cost of shares redeemed:
Class A shares (89,448,790) (71,212,104)
Class B shares (42,381,559) (17,753,575)
Class C shares (7,274,598) (148,177)
Class R shares (11,506) (79,530)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (25,427,794) (11,078,115)
TOTAL INCREASE (DECREASE) IN NET ASSETS (9,133,746) (32,228,451)
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 93,953,051 126,181,502
END OF PERIOD 84,819,305 93,953,051
Undistributed investment income--net -- 126,701
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended October 31,
-----------------------------
1999 1998
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 6,604,528 3,605,498
Shares issued for dividends reinvested 4,348 607,518
Shares redeemed (6,067,447) (4,676,922)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 541,429 (463,906)
- --------------------------------------------------------------------------------
CLASS B(A)
Shares sold 634,452 377,290
Shares issued for dividends reinvested -- 702,800
Shares redeemed (3,029,148) (1,208,591)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,394,696) (128,501)
- --------------------------------------------------------------------------------
CLASS C
Shares sold 552,113 20,307
Shares issued for dividends reinvested -- 2,212
Shares redeemed (519,809) (9,478)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 32,304 13,041
- --------------------------------------------------------------------------------
CLASS R
Shares sold 3,155 3,028
Shares issued for dividends reinvested 22 919
Shares redeemed (827) (5,407)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,350 (1,460)
(A) DURING THE PERIOD ENDED OCTOBER 31, 1999, 1,484,026 CLASS B SHARES
REPRESENTING $20,911,825 WERE AUTOMATICALLY CONVERTED TO 1,444,292 CLASS A
SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
<CAPTION>
Year Ended October 31,
-------------------------------------------------------------------
CLASS A SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 13.33 16.45 16.59 16.10 15.78
Investment Operations:
Investment income--net .00(a,b) .26 .00(b) .14 .24
Net realized and unrealized
gain (loss) on investments 2.76 (.86) 2.24 1.44 .47
Total from Investment Operations 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 -- (2.52) (2.21) (.84) (.24)
Total Distributions (.02) (2.52) (2.38) (1.09) (.39)
Net asset value, end of period 16.07 13.33 16.45 16.59 16.10
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 20.74 (4.50) 15.00 10.21 4.72
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 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 (.01) .55 .00(d) .76 1.38
Portfolio Turnover Rate 221.94 193.76 161.62 176.17 229.90
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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 $.01 PER SHARE.
C EXCLUSIVE OF SALES CHARGE.
D AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
Year Ended October 31,
-------------------------------------------------------------------
CLASS B SHARES 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 13.00 16.22 16.37 15.90 15.59
Investment Operations:
Investment income (loss)--net (.06)(a) (.03)(a) (.14) .00(b) .10
Net realized and unrealized
gain (loss) on investments 2.65 (.67) 2.24 1.44 .49
Total from Investment Operations 2.59 (.70) 2.10 1.44 .59
Distributions:
Dividends from investment income--net -- -- (.04) (.13) (.04)
Dividends from net realized gain on
investments -- (2.52) (2.21) (.84) (.24)
Total Distributions -- (2.52) (2.25) (.97) (.28)
Net asset value, end of period 15.59 13.00 16.22 16.37 15.90
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 19.83 (5.22) 14.14 9.36 3.96
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 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 (.41) (.20) (.76) .01 .62
Portfolio Turnover Rate 221.94 193.76 161.62 176.17 229.90
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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 $.01 PER SHARE.
C EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
Year Ended October 31,
-------------------------------------------------------------------
CLASS C SHARES 1999 1998 1997 1996 1995(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 12.66 15.87 16,20 15.90 15.85
Investment Operations:
Investment income (loss)--net (.14)(b) (.03)(b) (.12)(b) .28 (.01)
Net realized and unrealized
gain (loss) on investments 2.64 (.66) 2.18 1.14 .06
Total from Investment Operations 2.50 (.69) 2.06 1.42 .05
Distributions:
Dividends from investment income--net -- -- (.18) (.28) --
Dividends from net realized gain on
investments -- (2.52) (2.21) (.84) --
Total Distributions -- (2.52) (2.39) (1.12) --
Net asset value, end of period 15.16 12.66 15.87 16.20 15.90
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 19.75 (5.34) 14.17 9.36 .32(d)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 2.22 2.04 2.10 1.90 .35(d)
Ratio of interest expense to average
net assets -- .08 .01 -- --
Ratio of net investment (loss)
to average net assets (.97) (.19) (.73) (.19) (.09)(d)
Portfolio Turnover Rate 221.94 193.76 161.62 176.17 229.90
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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>
Year Ended October 31,
-------------------------------------------------------------------
CLASS R SHARES 1999 1998 1997 1996 1995(a)
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 13.32 16.43 16.59 16.11 16.04
Investment Operations:
Investment income--net .02(b) .33 .17 .26 .01
Net realized and unrealized
gain (loss) on investments 2.77 (.92) 2.10 1.35 .06
Total from Investment Operations 2.79 (.59) 2.27 1.61 .07
Distributions:
Dividends from investment income--net (.06) -- (.22) (.29) --
Dividends from net realized gain on
investments -- (2.52) (2.21) (.84) --
Total Distributions (.06) (2.52) (2.43) (1.13) --
Net asset value, end of period 16.05 13.32 16.43 16.59 16.11
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 21.04 (4.44) 15.21 10.45 .44(c)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 1.24 1.08 1.09 .87 .18(c)
Ratio of interest expense to average
net assets -- .08 .01 -- --
Ratio of net investment income
to average net assets .15 .70 .21 .94 .08(c)
Portfolio Turnover Rate 221.94 193.76 161.62 176.17 229.90
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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>
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier International Growth Fund (the "fund" ) is a separate
non-diversified portfolio of Dreyfus Premier International Funds, Inc. (the
" Company" ) which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company currently offering four series including the fund. The
fund' s investment objective is to maximize capital growth. The Dreyfus
Corporation (" Dreyfus" ) serves as the fund's investment adviser. Dreyfus is a
direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of
Mellon Financial Corporation.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund' s shares. The fund is authorized to issue 300 million shares of $.001 par
value Common Stock in each of the following classes of shares: Class A, Class B,
Class C and Class R shares. Class A shares are subject to a sales charge imposed
at the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase, Class C shares are subject to a CDSC imposed on Class C shares
redeemed within one year of purchase and Class R shares are sold at net asset
value per share only to institutional investors. Other differences between the
classes include the services offered to and the expenses borne by each class and
certain voting rights.
The Company accounts separately for the assets, liabilities and operations of
each 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 The
Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange or
the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked prices,
except for open short positions, where the asked price is used for valuation
purposes. Bid price is used when no asked price is available. Securities for
which there are no such valuations are valued at fair value as determined in
good faith under the direction of the Board of Directors. Investments
denominated in foreign currencies are translated to U.S. dollars at the
prevailing rates of exchange. Forward currency exchange contracts are valued at
the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest, and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the
custody agreement, the fund receives net earnings credits based on available
cash balances left on deposit.
(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.
During the period ended October 31, 1999, the fund increased accumulated
undistributed investment income net by $103,732 and increased accumulated net
realized gain (loss) on investments by $285,107 and decreased paid-in capital by
$388,839. Net assets were not affected by this reclassification.
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 October 31, 1999, 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus, retained
$24,512 during the period ended October 31, 1999 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 and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares. During the period ended October 31,
1999, Class B and Class C shares were charged $291,613 and $3,842, respectively,
pursuant to the Plan.
(C) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the Distributor at an annual rate of .25 of 1% of the value of their average
daily net assets for the provision of certain services. The services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended October 31, 1999, Class A, Class B and Class C
shares were charged $114,900, $97,204 and $1,281, respectively, pursuant to the
Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 1999, the fund was charged $65,948 pursuant to the transfer
agency agreement.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
NOTE 4--Securities Transactions:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended October 31, 1999, amounted to $183,830,805 and $219,449,495,
respectively.
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings. When executing forward currency exchange contracts, the fund is
obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The fund realizes a gain if the value of the
contract increases between those dates. The fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract. At October 31, 1999, there were no open forward currency exchange
contracts.
(B) At October 31, 1999, accumulated net unrealized appreciation on investments
was $12,490,259, consisting of $14,419,625 gross unrealized appreciation and
$1,929,366 gross unrealized depreciation.
At October 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Premier International Growth Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments of Dreyfus Premier International Growth Fund (one
of the Series constituting Dreyfus Premier International Funds, Inc.) as of
October 31, 1999, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and financial highlights for each of the years indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1999 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier International Growth Fund at October 31, 1999, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the indicated years, in conformity with generally accepted accounting
principles.
New York, New York
December 9, 1999
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $.0016 per share as a
long-term capital gain distribution of the $.082 per share paid on December 16,
1998.
The Fund
NOTES
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
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 092/633AR9910
================================================================================
Dreyfus
Premier Greater
China Fund
ANNUAL REPORT October 31, 1999
(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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
14 Financial Highlights
18 Notes to Financial Statements
24 Report of Independent Auditors
25 Important Tax Information
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Greater China Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Greater China
Fund, covering the 12-month period from November 1, 1998 through October 31,
1999. Inside, you' ll find valuable information about how the fund was managed
during the reporting period, including a discussion with the fund's portfolio
manager, Mandy Tong.
When the reporting period began, much of the world was experiencing the
aftermath of a global currency and credit crisis, and many of the world's
central banks had lowered key short-term interest rates to stimulate economic
growth. This strategy appears to have been effective. Soon after 1999 began,
evidence emerged that less restrictive monetary policies had helped prevent
further economic deterioration in Japan and the emerging markets of Asia, Latin
America and Eastern Europe.
The prospect of better economic conditions and the start of banking reform and
corporate restructuring helped Japan lead the world's stock markets higher.
European markets also fared relatively well in local currency terms, but returns
were generally flat for U.S. investors after adjusting for currency-related
effects. The improving economic climate produced particularly good results for
emerging market stocks. Stocks in Southeast Asia began to recover in 1999,
showing their first signs of real strength in over a year. Latin America
provided good results after concerns about Brazil's currency devaluation abated.
Even selected markets in Eastern Europe performed well, despite ongoing
financial problems in Russia.
We appreciate your confidence over the past year, 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
November 15, 1999
DISCUSSION OF FUND PERFORMANCE
Mandy Tong, Portfolio Manager
How did Dreyfus Premier Greater China Fund perform relative to its benchmark?
For the 12-month period ended October 31, 1999, the fund produced a total return
of 14.18% for Class A shares, 13.36% for Class B shares, 13.38% for Class C
shares and 14.54% for Class R shares.(1) Because the concept of investing in the
Greater China region is relatively new, there is no commonly accepted benchmark
index. We can, however, compare performance to that of the individual markets
in which the fund invests. In the People's Republic of China, the Shanghai B
Index produced a total return of 27.67%,(2) and the total returns for the Taiwan
Weighted (TWSE) Index and the Hang Seng Index, in Hong Kong, were 13.22%(3) and
34.24%,(4) respectively, for the 12-month period ended October 31, 1999.
We attribute the fund's performance to our cautious investment approach, both
during last year' s Asian financial crisis and through the early phases of the
region' s subsequent recovery. We maintained a relatively high level of cash for
a significant portion of the period. This strategy served us well during periods
of sharp decline. However, we did not participate fully when markets advanced. A
strategy of increased commitment to selected markets and stocks aided the fund's
performance in the latter part of the reporting period.
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 individual markets.
We invest in growth companies with superior earnings streams at reasonable
valuations. Our strength is to identify companies with focused The Fun
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
management with a well-defined business strategy and model to add value to
shareholders. Given the rapidly changing business environment in the Internet
era and industry deregulation in Asia, management's capability to recognize
major changes in the operating environment and reposition the company will be
critical to differentiate winners from losers.
We also look at the respective strengths of individual markets. We attempt to
identify the macroeconomic events such as changes in monetary or exchange-rate
policies that often mark market turning points. We then increase or decrease
investments based upon anticipated market direction.
What other factors influenced the fund's performance?
The fund was launched in a period of crisis as global market forces and local
market excesses combined to create near panic throughout the Asian region. Share
prices plummeted across the board as foreign investors fled for presumably safer
markets at home and domestic demand for stocks evaporated.
But just as quickly, it seemed, markets found their equilibrium. Currencies
stabilized and interest rates began to fall. Companies returned to profitability
by reducing wages, while recessionary pressures allowed for previously
difficult, but much needed, structural change, such as shutting down excess
capacity. Demand in the United States (and to a somewhat lesser extent, in
Europe) remained strong for export goods. Lower interest rates boosted domestic
demand.
These positive factors created renewed interest in regional stocks among foreign
investors. Initially, offshore investors tended to focus on large, better known
regional names. Later, as positive trends were sustained and markets looked
relatively cheap, a large influx of foreign investment fueled rallies across
markets and market sectors.
What is the fund's current strategy?
As conditions have improved, the fund has steadily invested in stocks. We have,
however, taken a more focused approach, reducing the num
ber of stocks in our portfolio from approximately 50 to a current level of
35-40. Such a reduction is in keeping with our view that careful stock selection
will be increasingly important. Broad rallies across entire markets in response
to waves of returning foreign liquidity are likely a thing of the past. We now
look for individual stocks in whose earnings we have confidence, both as to
current quality and sustainable momentum.
We have identified four major investment themes in the Greater China region in
the coming 12 months: export-oriented electronics companies with a focus on the
global outsourcing trend; technology stocks leveraging on growing business
opportunities in software applications and system solutions; consumer cyclical
companies taking advantage of the recovery in consumer spending; and
beneficiaries of deregulation in the telecommunications industry.
November 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGES
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 RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: BLOOMBERG L.P. -- THE SHANGHAI B-SHARE STOCK PRICE INDEX IS A
CAPITALIZATION-WEIGHTED INDEX. THE INDEX TRACKS THE DAILY PRICE PERFORMANCE OF
ALL SHARES LISTED ON THE SHANGHAI STOCK EXCHANGE THAT ARE AVAILABLE FOR
INVESTMENT BY FOREIGN INVESTORS. THE INDEX IS PRICED IN US$ AND INCLUDES NET
DIVIDENDS REINVESTED.
(3) SOURCE: BLOOMBERG L.P. -- THE TAIWAN WEIGHTED (TWSE) INDEX IS A
CAPITALIZATION-WEIGHTED INDEX OF ALL LISTED COMMON SHARES TRADED ON THE TAIWAN
STOCK EXCHANGE. THE INDEX IS PRICED IN US$ AND INCLUDES NET DIVIDENDS
REINVESTED.
(4) SOURCE: BLOOMBERG L.P. -- 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 SUBINDEXES: COMMERCE, FINANCE, UTILITIES AND PROPERTIES.
THE INDEX IS PRICED IN US$ AND INCLUDES NET DIVIDENDS REINVESTED.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Greater
China Fund Class A shares, Class B shares, Class C shares and Class R shares and
the Hang Seng Index
((+)) SOURCE: BLOOMBERG L.P.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE CLASS A, CLASS
B, CLASS C AND CLASS R SHARES OF DREYFUS PREMIER GREATER CHINA FUND ON 5/12/98
(INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE HANG SENG INDEX ON THAT
DATE. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX ON 4/30/98 IS USED AS THE
BEGINNING VALUE ON 5/12/98. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE
REINVESTED.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM
INITIAL SALES CHARGES ON CLASS A SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES
CHARGE ON CLASS B AND CLASS C SHARES AND ALL OTHER APPLICABLE FEES AND EXPENSES
ON ALL CLASSES. THE HANG SENG INDEX IS A CAPITALIZATION-WEIGHTED INDEX OF
APPROXIMATELY 33 COMPANIES THAT REPRESENT 70 PERCENT OF THE TOTAL MARKET
CAPITALIZATION OF THE STOCK EXCHANGE OF HONG KONG. THE COMPONENTS OF THE INDEX
ARE DIVIDED INTO SUBINDEXES: COMMERCE, FINANCE, UTILITIES AND PROPERTIES.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
Average Annual Total Returns AS OF 10/31/99
<TABLE>
<CAPTION>
Inception From
Date 1 Year Inception
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
<S> <C> <C> <C>
WITH SALES CHARGE (5.75%) 5/12/98 7.61% 6.73%
WITHOUT SALES CHARGE 5/12/98 14.18% 11.10%
CLASS B SHARES
WITH REDEMPTION((+)) 5/12/98 9.36% 7.65%
WITHOUT REDEMPTION 5/12/98 13.36% 10.26%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 5/12/98 12.38% 10.28%
WITHOUT REDEMPTION 5/12/98 13.38% 10.28%
CLASS R SHARES 5/12/98 14.54% 11.40%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
( (+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%
AND IS REDUCED TO 0% AFTER SIX YEARS.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
The Fund
STATEMENT OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
COMMON STOCKS--97.6% Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
CHINA--5.7%
<S> <C> <C>
Eastern Communications 45,000 36,720
Jiangxi Copper 400,000 (a) 61,792
Shanghai Petrochemical 240,000 49,125
147,637
HONG KONG--60.4%
ASM Pacific Technology 58,000 68,319
Asia Satellite Telecommunications 11,000 25,914
Automated Systems 94,000 48,404
CCT Telecom 300,000 (a) 96,550
CCT Telecom Warrants 180,000 (a) 27,111
China Pharmaceutical Enterprise & Investment 236,000 43,141
China Pharmaceutical Enterprise & Investment Warrants 23,600 (a) 1,033
China Telecom 48,000 (a) 164,367
Citic Pacific 20,000 51,751
Dah Sing Financial 16,600 66,246
Esprit 94,000 88,942
Giordano International 112,000 118,950
Globe Tech 90,000 52,716
HSBC 7,200 86,431
HSBC Warrants 84,000 8,218
Hutchison Whampoa 16,000 160,659
Johnson Electric 10,500 56,771
Pacific Century CyberWorks 91,000 (a) 68,531
SmarTone Telecommunications 34,000 119,928
South China Morning Post 128,000 93,100
Sun Hung Kai Properties 7,000 56,546
Swire Pacific 11,000 54,519
1,558,147
SINGAPORE--3.3%
Elec & Eltek International 25,000 85,000
TAIWAN--28.2%
Advanced Semiconductor Engineering 18,819 (a) 57,845
Asustek Computer 8,516 89,402
Chinatrust Commercial Bank 39,800 (a) 36,513
Compeq Manufacturing 12,000 (a) 61,286
Formosa Chemicals & Fibre 1,120 1,264
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
TAIWAN (CONTINUED)
Formosa Plastics 24,050 48,145
Hon Hai Precision Industry 7,000 (a) 47,888
Quanta Computer 1 8
Shinkong Synthetic Fibers 117,000 (a) 40,943
Taiwan Semiconductor Manufacturing 40,194 (a) 178,668
United World Chinese Commercial Bank 32,000 40,555
Via Technolgies 15,701 (a) 93,553
Winbond Electronics 17,000 (a) 31,084
727,154
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $2,191,924) 97.6% 2,517,938
CASH AND RECEIVABLES (NET) 2.4% 61,953
NET ASSETS 100.0% 2,579,891
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 2,191,924 2,517,938
Cash 13,214
Cash denominated in foreign currencies 176,430 176,324
Receivable for investment securities sold 24,083
Dividends receivable 7,621
Prepaid expenses 60,009
Due from The Dreyfus Corporation 18,421
2,817,610
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to Distributor 883
Payable for investment securities purchased 191,809
Payable for shares of Common Stock redeemed 7,504
Accrued expenses 37,523
237,719
- --------------------------------------------------------------------------------
NET ASSETS ($) 2,579,891
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 2,242,747
Accumulated undistributed investment income--net 4,131
Accumulated net realized gain (loss) on investments
and foreign currency transactions 7,150
Accumulated net unrealized appreciation (depreciation) on investments
and foreign currency transactions 325,863
- --------------------------------------------------------------------------------
NET ASSETS ($) 2,579,891
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C Class R
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 1,721,082 268,210 356,248 234,351
Shares Outstanding 119,110 18,705 24,879 16,176
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 14.45 14.34 14.32 14.49
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Year Ended October 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $1,570 foreign taxes withheld at source) 45,766
Interest 13,343
TOTAL INCOME 59,109
EXPENSES:
Investment advisory fee--Note 3(a) 28,506
Registration fees 92,468
Custodian fees 66,431
Organization expenses 14,191
Auditing fees 10,939
Prospectus and shareholders' reports 10,289
Shareholder servicing costs--Note 3(c) 5,409
Distribution fees--Note 3(b) 4,141
Directors' fees and expenses--Note 3(d) 892
Legal fees 772
Miscellaneous 3,897
TOTAL EXPENSES 237,935
Less-expense reimbursement from Dreyfus due to undertaking--Note 3(a) (183,011)
NET EXPENSES 54,924
INVESTMENT INCOME--NET 4,185
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 34,462
Net realized gain (loss) on forward currency exchange contracts (1,108)
NET REALIZED GAIN (LOSS) 33,354
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 274,100
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 307,454
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 311,639
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
----------------------------
1999 1998(a)
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 4,185 19,322
Net realized gain (loss) on investments 33,354 (26,204)
Net unrealized appreciation (depreciation)
on investments 274,100 51,763
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 311,639 44,881
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (13,561) --
Class B shares (1,375) --
Class C shares (2,296) --
Class R shares (2,144) --
TOTAL DIVIDENDS (19,376) --
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 127,540 1,413,371
Class B shares 15,811 222,500
Class C shares 172,118 200,000
Class R shares -- 200,000
Dividends reinvested:
Class A shares 13,561 --
Class B shares 1,375 --
Class C shares 2,296 --
Class R shares 2,144 --
Cost of shares redeemed:
Class A shares (58,150) (2,689)
Class B shares (5,376) --
Class C shares (61,754) --
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 209,565 2,033,182
TOTAL INCREASE (DECREASE) IN NET ASSETS 501,828 2,078,063
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 2,078,063 --
END OF PERIOD 2,579,891 2,078,063
Undistributed investment income--net 4,131 19,322
(A) FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
----------------------------
1999 1998(a)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 9,279 113,093
Shares issued for dividends reinvested 1,113 --
Shares redeemed (4,145) (230)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 6,247 112,863
- --------------------------------------------------------------------------------
CLASS B
Shares sold 1,122 17,851
Shares issued for dividends reinvested 113 --
Shares redeemed (381) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 854 17,851
- --------------------------------------------------------------------------------
CLASS C
Shares sold 13,114 16,000
Shares issued for dividends reinvested 189 --
Shares redeemed (4,424) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 8,879 16,000
- --------------------------------------------------------------------------------
CLASS R
Shares sold -- 16,000
Shares issued for dividends reinvested 176 --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 176 16,000
(A) FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
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.
Year Ended October 31,
----------------------------
CLASS A SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.78 12.50
Investment Operations:
Investment income--net .04(b) .13
Net realized and unrealized gain (loss)
on investments 1.75 .15
Total from Investment Operations 1.79 .28
Distributions:
Dividends from investment income--net (.12) --
Net asset value, end of period 14.45 12.78
- --------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 14.18 2.24(d)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.25 1.08(d)
Ratio of net investment income
to average net assets .34 1.04(d)
Decrease reflected in above expense ratios
due to undertakings by Dreyfus 8.03 2.75(d)
Portfolio Turnover Rate 206.09 10.65(d)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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.
Year Ended October 31,
-----------------------------
CLASS B SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.73 12.50
Investment Operations:
Investment income (loss)--net (.05)(b) .08
Net realized and unrealized gain (loss)
on investments 1.74 .15
Total from Investment Operations 1.69 .23
Distributions:
Dividends from investment income--net (.08) --
Net asset value, end of period 14.34 12.73
- --------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 13.36 1.84(d)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 3.00 1.44(d)
Ratio of net investment income (loss)
to average net assets (.41) .69(d)
Decrease reflected in above expense ratios
due to undertakings by Dreyfus 8.03 2.75(d)
Portfolio Turnover Rate 206.09 10.65(d)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
--------------------------
CLASS C SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.73 12.50
Investment Operations:
Investment income (loss)--net (.05)(b) .08
Net realized and unrealized gain (loss)
on investments 1.74 .15
Total from Investment Operations 1.69 .23
Distributions:
Dividends from investment income--net (.10) --
Net asset value, end of period 14.32 12.73
- --------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 13.38 1.84(d)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 3.00 1.43(d)
Ratio of net investment income (loss)
to average net assets (.38) .68(d)
Decrease reflected in above expense ratios
due to undertakings by Dreyfus 8.03 2.75(d)
Portfolio Turnover Rate 206.09 10.65(d)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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.
Year Ended October 31,
-----------------------------
CLASS R SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.79 12.50
Investment Operations:
Investment income--net .08(b) .14
Net realized and unrealized gain (loss)
on investments 1.75 .15
Total from Investment Operations 1.83 .29
Distributions:
Dividends from investment income--net (.13) --
Net asset value, end of period 14.49 12.79
- --------------------------------------------------------------------------------
TOTAL RETURN (%) 14.54 2.32(c)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.00 .96(c)
Ratio of net investment income
to average net assets .59 1.16(c)
Decrease reflected in above expense ratios
due to undertakings by Dreyfus 8.03 2.75(c)
Portfolio Turnover Rate 206.09 10.65(c)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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.
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Greater China Fund (the "fund") is a separate non-diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering four series including the fund. The fund's investment
objective is long-term capital appreciation. The Dreyfus Corporation ("Dreyfus")
serves as the fund' s investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. (" 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.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund' s shares. The fund is authorized to issue 200 million shares of $.001 par
value Common Stock in each of the following classes of shares: Class A, Class B,
Class C and Class R shares. Class A shares are subject to a sales charge imposed
at the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase, Class C shares are subject to a CDSC imposed on Class C shares
redeemed within one year of purchase and Class R shares are sold at net asset
value per share only to institutional investors. Other differences between the
classes include the services offered to and the expenses borne by each class and
certain voting rights.
As of October 31, 1999, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares:
Class A 113,103 Class C 16,126
Class B 16,101 Class R 16,176
The Company accounts separately for the assets, liabilities and operations of
each 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 (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 $609 during the period ended October 31, 1999 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, 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 October 31, 1999, 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, 1998 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, service plan fees, taxes,
brokerage, 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 $183,011 during the
period ended October 31, 1999.
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.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares. During the period ended October 31,
1999, Class B and Class C shares were charged $1,778 and $2,363, respectively,
pursuant to the Plan.
(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the Distributor at an annual rate of .25 of 1% of the value of their average
daily net assets for the provision of certain services. The services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The Distributor may make payments to Service Agents (a securities
dealer, financial institu The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
tion or other industry professional) in respect of these services. The
Distributor determines the amounts to be paid to Service Agents. During the
period ended October 31, 1999, Class A, Class B and Class C shares were charged
$3,793, $593 and $787, respectively, pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 1999, the fund was charged $217 pursuant to the transfer
agency agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended October 31, 1999, amounted to $5,160,588 and $3,889,311,
respectively.
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the fund would incur a loss if the
value of the contract increases between the date the forward contract is opened
and the date the forward contract is closed. The fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchases
of forward currency exchange contracts, the fund would incur a loss if the value
of the contract decreases between the date the
forward contract is opened and the date the forward contract is closed. The fund
realizes a gain if the value of the contract increases between those dates. The
fund is also exposed to credit risk associated with counter party nonperformance
on these forward currency exchange contracts which is typically limited to the
unrealized gain on each open contract. At October 31, 1999, there were no open
forward currency exchange contracts.
(b) At October 31, 1999, accumulated net unrealized appreciation on investments
was $326,014, consisting of $374,934 gross unrealized appreciation and $48,920
gross unrealized depreciation.
At October 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Premier Greater China Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Premier Greater China Fund (one of the
series constituting Dreyfus Premier International Funds, Inc.) as of October 31,
1999, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and financial highlights for each of the years indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund' s management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1999 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Greater China Fund at October 31, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the indicated years, in conformity with generally accepted accounting
principles.
New York, New York
December 9, 1999
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund elects to provide each shareholder
with their portion of the fund's foreign taxes paid and the income sourced from
foreign countries. Accordingly, the fund hereby makes the following designations
regarding its fiscal year ended October 31, 1999:
--the total amount of foreign taxes paid to foreign countries was $1,570
--the total amount of income sourced from foreign countries was $15,503
As required by Federal tax law rules, shareholders will receive notification of
their proportionate share of foreign taxes paid and foreign sourced income for
the 1999 Calendar year with Form 1099-DIVwhich will be mailed by January 31,
2000.
The Fund
For More Information
Dreyfus Premier Greater China Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Hamon U.S. Investment-Advisors Ltd.
2903-5 Alexandra House
16-20 Chater Road
Hong Kong
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 130/170AR9910
================================================================================
Dreyfus
Premier European
Equity Fund
ANNUAL REPORT October 31, 1999
(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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
22 Report of Independent Auditors
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier European Equity Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier European Equity
Fund, covering the period from December 10, 1998, the fund's inception, through
October 31, 1999. Inside, you'll find valuable information about how the fund
was managed during the reporting period, including a discussion with the fund's
portfolio managers, Joanna Bowen and Kieran Gallagher.
When the reporting period began, much of the world was experiencing the
aftermath of a global currency and credit crisis, and many of the world's
central banks had lowered key short-term interest rates to stimulate economic
growth. This strategy appears to have been effective. Soon after 1999 began,
evidence emerged that less restrictive monetary policies had helped prevent
further economic deterioration in Japan and the emerging markets of Asia, Latin
America and Eastern Europe.
The prospect of better economic conditions and the start of banking reform and
corporate restructuring helped Japan lead the world's stock markets higher.
European markets also fared relatively well in local currency terms, but returns
were generally flat for U.S. investors after adjusting for currency-related
effects. The improving economic climate produced particularly good results for
emerging market stocks. Stocks in Southeast Asia began to recover in 1999,
showing their first signs of real strength in over a year. Latin America
provided good results after concerns about Brazil's currency devaluation abated.
Even selected markets in Eastern Europe performed well, despite ongoing
financial problems in Russia.
We appreciate your confidence over the past year, 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
November 15, 1999
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?
The fund' s Class A shares produced a 12.40% total return, Class B shares
provided a total return of 11.68%, Class C shares returned 11.68% and Class R
shares returned 12.64% during the reporting period that began at the fund's
December 10, 1998 inception and ended October 31, 1999.(1) The Financial Times
Eurotop 300 Index, the fund's benchmark, produced a total return of 9.03% from
December 10, 1998 through October 31, 1999.(2)
The public offering of the fund's Class T shares commenced on September 30,
1999. From September 30, 1999 through October 31, 1999, the fund produced a
total return of 0.07% for Class T shares.(1)
We attribute the fund' s good relative performance to our stock selection and
sector allocation strategies. The fund benefited from our decision to target
companies that we believed were likely to report positive earnings surprises in
an improving economy, particularly among consumer-oriented and economically
sensitive industrial companies. Similarly, we focused on companies that we
believed had the ability to raise prices in a low-inflation environment.
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 The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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.
What other factors influenced the fund's performance?
As interest rates declined during the autumn of 1998, we became convinced of the
need to increase the fund's exposure to companies that, in our opinion, would
benefit from expectations of stronger economic growth. In our view, economically
sensitive companies' valuations had fallen to levels that reflected recessionary
or deflationary conditions. As a result, we increased our holdings of basic
materials producers. Investments in these areas included U.K. mining company
Billiton, French steel company Usinor, and U.K. engineering firm Bodycote
International. These stocks performed well through the second quarter of 1999,
boosting fund performance. We also increased our positions in economically
sensitive stocks such as industrial gas group Linde, automobile manufacturer
Bayerische Motoren Werke (BMW) and Swedish truck and construction equipment
manufacturer Volvo.
Across Europe and throughout the reporting period, consumption remained robust
against a background of rising wages, falling unemployment and relatively low
interest rates. The consumer service stocks in our portfolio benefited most from
these positive economic conditions.
Toward the end of the reporting period, uncertainty over the direction of
interest rates adversely affected European stock markets. During the third
quarter of 1999, higher short-term interest rates had a negative impact on some
of the fund' s economically sensitive holdings. However, there were also some
bright spots in recent months, especially among companies involved in merger and
acquisition activities or corporate restructuring. Fund holdings Vodafone Group
and Societe Generale made especially good progress over the past several months
because of these influences.
What is the fund's current strategy?
Long-term bond yields have risen sharply since their January lows as global
economic conditions have improved. However, inflation has remained low amid
ongoing pricing pressures related to capacity, deregulation and technology
advances. Accordingly, we have positioned the fund to benefit if, as we expect,
interest rates and bond yields have already hit their cyclical highs and may
decline from current levels. We have, therefore, focused recently on companies
within market sectors that we believe will benefit most from lower interest
rates. In addition, we have maintained our positions in companies that we expect
to be able to exert pricing power in an improving European economy. We also
continue to watch for potential mergers and acquisitions that may positively
affect stock prices.
November 15, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN THE
CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGES 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 RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: BLOOMBERG L.P. -- THE FINANCIAL TIMES EUROTOP 300 INDEX IS A MARKET
CAPITALIZATION INDEX OF EUROPE'S 300 LARGEST COMPANIES.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier European
Equity Fund Class A shares, Class B shares, Class C shares and Class R shares
and the Financial Times Eurotop 300 Index
((+)) SOURCE: BLOOMBERG L.P.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE CLASS A, CLASS
B, CLASS C AND CLASS R SHARES OF DREYFUS PREMIER EUROPEAN EQUITY FUND ON
12/10/98 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE FINANCIAL TIMES
EUROTOP 300 INDEX ON THAT DATE. FOR COMPARATIVE PURPOSES, THE VALUE OF THE INDEX
ON 11/30/98 IS USED AS THE BEGINNING VALUE ON 12/10/98. ALL DIVIDENDS AND
CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED. PERFORMANCE FOR CLASS T SHARES WILL
VARY FROM THE PERFORMANCE OF CLASS A, CLASS B, CLASS C AND CLASS R SHARES SHOWN
ABOVE DUE TO DIFFERENCES IN CHARGES AND EXPENSES.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM
INITIAL SALES CHARGE ON CLASS A SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES
CHARGE ON CLASS B AND CLASS C SHARES AND ALL OTHER APPLICABLE FEES AND EXPENSES.
THE FINANCIAL TIMES EUROTOP 300 INDEX MEASURES THE PERFORMANCE OF EUROPE'S
LARGEST 300 COMPANIES BY MARKET CAPITALIZATION.
THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. FURTHER
INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF
APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS
AND ELSEWHERE IN THIS REPORT.
Actual Aggregate Total Returns AS OF 10/31/99
<TABLE>
<CAPTION>
Inception From
Date Inception
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Shares
<S> <C> <C>
WITH SALES CHARGE (5.75%) 12/10/98 5.96%
WITHOUT SALES CHARGE 12/10/98 12.40%
Class B Shares
WITH REDEMPTION((+)) 12/10/98 7.68%
WITHOUT REDEMPTION 12/10/98 11.68%
Class C Shares
WITH REDEMPTION((+)(+)) 12/10/98 10.68%
WITHOUT REDEMPTION 12/10/98 11.68%
Class R Shares 12/10/98 12.64%
Class T Shares
WITH SALES CHARGE (4.5%) 9/30/99 (4.43)%
WITHOUT SALES CHARGE 9/30/99 0.07%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
( (+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%
AND IS REDUCED TO 0% AFTER SIX YEARS.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
October 31, 1999
COMMON STOCKS--93.6% Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
AUSTRIA--1.6%
<S> <C> <C>
Voest-Alpine Stahl 1,500 46,569
FRANCE--14.8%
Axa 360 50,893
Carbone Lorraine 1,100 47,440
Elf Aquitaine 360 53,132
IPSOS 580 29,563
Rexel 540 48,388
Societe Generale, Cl. A 430 93,834
Total Fina, Cl. B 340 46,058
Vivendi 785 59,625
428,933
GERMANY--14.3%
Apcoa Parking 530 39,110
Bayerische Motoren Werke 2,600 83,050
Celanese 190 3,005
Epcos 500 20,546
Hoechst 1,900 83,825
Linde 1,300 68,249
Linde (Rights) 1,300 4,125
Mannesmann 440 69,345
Zapf Creation 1,250 (a) 43,459
414,714
IRELAND--1.7%
Bank of Ireland 6,200 48,497
ITALY--3.1%
ENI 4,800 28,291
Telecom Italia 7,000 60,888
89,179
NETHERLANDS--8.7%
Fortis 2,200 75,909
ING Groep 1,280 75,673
VNU 1,900 64,396
Wolters Kluwer 1,080 36,171
252,149
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
PORTUGAL--2.3%
Banco Pinto & Sotto Mayor 1,400 29,222
Portugal Telecom 850 37,993
67,215
SPAIN--7.4%
Argentaria 2,660 59,168
Funespana 2,130 35,478
Sogecable 1,050 (a) 28,957
Telefonica 5,450 (a) 89,858
213,461
SWEDEN--7.0%
Skandia Forsakrings 1,500 33,460
Telefonaktiebolaget LM Ericsson 2,780 115,894
Volvo, Cl. B 2,100 54,396
203,750
SWITZERLAND--4.9%
BioMarin Pharmaceutical 2,000 (a) 30,552
Kuoni Reisen 11 46,978
UBS 220 64,107
141,637
UNITED KINGDOM--27.8%
Bank of Scotland 2,300 28,701
Barclays 1,430 43,800
Billiton 7,200 31,133
Blue Circle Industries 7,900 36,692
Bodycote International 11,800 48,113
Capital Shopping Centres 4,300 28,491
Dixons Group 2,500 44,309
Glaxo Wellcome 2,300 67,915
Granada 8,000 63,265
Great Universal Stores 3,700 28,104
Northern Rock 4,600 31,121
Prudential 3,900 61,202
Rentokil Initial 9,700 32,334
Reuters 3,700 34,400
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
Shell Transport & Trading 12,200 93,572
Stagecoach Holdings 14,600 41,527
Standard Chartered 3,000 42,097
Vodafone Group 10,000 46,528
803,304
TOTAL COMMON STOCKS
(cost $2,667,794) 2,709,408
- ------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--4.1%
- ------------------------------------------------------------------------------------------------------------------------------------
GERMANY--3.2%
Fielmann 1,140 43,264
Fresenius 310 50,818
94,082
PORTUGAL--.9%
Lusomundo 3,360 26,211
TOTAL PREFERRED STOCKS
(cost $112,023) 120,293
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $2,779,817) 97.7% 2,829,701
CASH AND RECEIVABLES (NET) 2.3% 65,642
NET ASSETS 100.0% 2,895,343
A NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 2,779,817 2,829,701
Cash 67,995
Cash denominated in foreign currencies 7,989 7,985
Receivable for investment securities sold 44,594
Dividends receivable 8,049
Net unrealized appreciation on forward currency
exchange contracts--Note 4(a) 60
Prepaid expenses 10,365
Due from The Dreyfus Corporation 9,727
2,978,476
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to Distributor 1,206
Payable for investment securities purchased 49,906
Accrued expenses and other liabilities 32,021
83,133
- --------------------------------------------------------------------------------
NET ASSETS ($) 2,895,343
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 2,580,529
Accumulated net realized gain (loss) on investments and
foreign currency transactions 264,903
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 49,911
- --------------------------------------------------------------------------------
NET ASSETS ($) 2,895,343
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 ($) 1,205,167 560,492 562,577 566,106 1,001
Shares Outstanding 85,761 40,150 40,298 40,191 71.327
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 14.05 13.96 13.96 14.09 14.03
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
From December 10, 1998 (commencement of operations) to October 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $7,010 foreign taxes withheld at source) 47,354
Interest 2,550
TOTAL INCOME 49,904
EXPENSES:
Investment advisory fee--Note 3(a) 22,192
Registration fees 61,994
Auditing fees 24,782
Custodian fees 16,387
Distribution fees--Note 3(b) 7,283
Shareholder servicing costs--Note 3(c) 5,140
Prospectus and shareholders' reports 9,211
Legal fees 1,550
Director's fees and expenses--Note 3(d) 683
Miscellaneous 3,046
TOTAL EXPENSES 152,268
Less--expense reimbursement from Dreyfus due to
undertaking--Note 3(a) (90,739)
NET EXPENSES 61,529
INVESTMENT (LOSS) (11,625)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and
foreign currency transactions 290,211
Net realized gain (loss) on forward currency
exchange contracts (21,869)
NET REALIZED GAIN (LOSS) 268,342
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions 49,911
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 318,253
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 306,628
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
From December 10, 1998 (commencement of operations) to October 31, 1999
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (11,625)
Net realized gain (loss) on investments 268,342
Net unrealized appreciation (depreciation)
on investments 49,911
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 306,628
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 1,081,444
Class B shares 502,096
Class C shares 504,146
Class R shares 507,500
Class T shares (a) 1,000
Cost of shares redeemed:
Class A shares (2,401)
Class R shares (5,070)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 2,588,715
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,895,343
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period --
END OF PERIOD 2,895,343
A FROM SEPTEMBER 30, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER31, 1999
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
From December 10, 1998 (commencement of operations)
to October 31, 1999
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 85,939
Shares redeemed (178)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 85,761
- --------------------------------------------------------------------------------
CLASS B
SHARES SOLD 40,150
- --------------------------------------------------------------------------------
CLASS C
SHARES SOLD 40,298
- --------------------------------------------------------------------------------
CLASS R
Shares sold 40,557
Shares redeemed (366)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 40,191
- --------------------------------------------------------------------------------
CLASS T(A)
SHARES SOLD 71
(A) FROM SEPTEMBER 30, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31,
1999.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following table describes the performance for each share class for the
period from December 10, 1998 (commencement of operations) to October 31, 1999.
All information (except portfolio turnover rate) reflects financial results for
a single fund share. Total return shows how much your investment in the fund
would have increased (or decreased) during each period, assuming you had
reinvested all dividends and distributions. These figures have been derived from
the fund's financial statements.
<TABLE>
<CAPTION>
Year Ended October 31, 1999
---------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS R CLASS T(a)
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 12.50 12.50 12.50 12.50 14.02
Investment Operations:
Investment income (loss)--Net (b) (.03) (.12) (.12) .00(c) (.04)
Net realized and unrealized gain (loss)
on investments 1.58 1.58 1.58 1.59 .05
Total from Investment Operations 1.55 1.46 1.46 1.59 .01
Net asset value, end of period 14.05 13.96 13.96 14.09 14.03
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (D) 12.40(e) 11.68(e) 11.68(e) 12.64 .07(e)
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets (d) 2.01 2.68 2.68 1.79 .22
Ratio of net investment income (loss)
to average net assets (d) (.21) (.87) (.87) .03 (.22)
Decrease reflected in above expense ratio
due to undertakings by Dreyfus (d) 3.29 3.29 3.29 3.28 .42
Portfolio Turnover Rate (d) 104.68 104.68 104.68 104.68 104.68
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1,205 560 563 566 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 AMOUNT REPRESENTS LESS THAN $.01.
D NOT ANNUALIZED.
E EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier European Equity Fund (the "fund") is a separate diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering four series, including the fund which commenced operations on
December 10, 1998. The fund's investment objective is long-term capital growth.
The Dreyfus Corporation (" Dreyfus") serves as the fund's investment adviser.
Dreyfus is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned
subsidiary of Mellon Financial Corporation. Newton Capital Management Limited
(" Newton" ) serves as the fund's sub-investment adviser. Newton is an affiliate
of Mellon Bank, N.A.
On July 12, 1999, the Board of Directors approved the addition of Class T
shares, which became effective September 30, 1999.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of
the fund' s shares. The fund is authorized to issue 200 million shares of $.001
par value Common Stock in each of the following classes of shares: Class A,
Class B, Class C, 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 October 31, 1999, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares of the fund:
Class A ..................... 80,000 Class C .....................40,000
Class B ................... 40,000 Class R ............................ 40,000
The Company accounts separately for the assets, liabilities and operations of
each 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 The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 $128 during the period ended October 31, 1999 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, 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.
During the period ended October 31, 1999, the fund increased accumulated
undistributed investment income-net by $11,625, and decreased accumulated net
realized gain (loss) on investments by $3,439 and decreased paid-in capital by
$8,186. Net assets were not affected by this reclassification.
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 October 31, 1999, the fund did not borrow
under the line of credit.
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions
(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 December 10, 1998 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 $90,739 during the period ended October 31, 1999.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Newton, the
sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the
value of the fund's average daily net assets, computed at the following annual
rates:
AVERAGE NET ASSETS
0 to $100 million................................................. .35 of 1%
$100 million to $1 billion.......................................... .30 of 1%
$1 billion to $1.5 billion...................................... .26 of 1%
In excess of $1.5 billion...................................... .20 of 1%
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 October 31,
1999, Class B and Class C shares were charged $3,644 and $3,639, respectively,
pursuant to the Plan.
(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 October 31, 1999,
Class A, Class B and Class C shares were charged $2,503, $1,215 and $1,213,
respectively, pursuant to the Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 1999, the fund was charged $85 pursuant to the transfer agency
agreement.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
NOTE 4--Securities Transactions:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange
contracts, during the period ended October 31, 1999, amounted to $5,368,968 and
$2,880,547, respectively.
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the fund would incur a loss if the
value of the contract increases between the date the forward contract is opened
and the date the forward contract is closed. The fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchases
of forward currency exchange contracts, the fund would incur a loss if the value
of the contract decreases between the date the forward contract is opened and
the date the forward contract is closed. The fund realizes a gain if the value
of the contract increases between those dates. The fund is also exposed to
credit risk associated with counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gain on
each open contract.
The following summarizes open forward currency exchange contracts at October 31,
1999:
<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Forward Currency Exchange Contracts Amount Cost ($) Value ($) Appreciation ($)
- ------------------------------------------------------------------------------------------------------------------------------------
PURCHASES:
<S> <C> <C> <C> <C>
EURO DOLLARS, EXPIRING 11/2/99 12,848 13,484 13,544 60
</TABLE>
(B) At October 31, 1999, accumulated net unrealized appreciation on investments
and forward currency exchange contracts was $49,944, consisting of $256,305
gross unrealized appreciation and $206,361, gross unrealized depreciation.
At October 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Premier European Equity Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments of Dreyfus Premier European Equity Fund (one of the
series constituting Dreyfus Premier International Funds, Inc.) as of October 31,
1999, and the related statements of operations and changes in net assets and
financial highlights for the period from December 10, 1998 (commencement of
operations) to October 31, 1999. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements and
financial highlights. Our procedures included confirmation of securities owned
as of October 31, 1999 by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier European Equity Fund at October 31, 1999, the results of its
operations, the changes in its net assets and the financial highlights for the
period from December 10, 1998 to October 31, 1999, in conformity with generally
accepted accounting principles.
New York, New York
December 9, 1999
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
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 223/224AR9910
for Graphe in President's Letter
================================================================================
Dreyfus Premier
Global Allocation
Fund
ANNUAL REPORT October 31, 1999
(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
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
Contents
THE FUND
- --------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
7 Fund Performance
9 Statement of Investments
18 Statement of Financial Futures
19 Statement of Assets and Liabilities
20 Statement of Operations
21 Statement of Changes in Net Assets
23 Financial Highlights
27 Notes to Financial Statements
33 Report of Independent Auditors
34 Important Tax Information
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier Global Allocation Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Global
Allocation Fund, covering the 12-month period from November 1, 1998 through
October 31, 1999. Inside, you'll find valuable information about how the fund
was managed during the reporting period, including a discussion with the fund's
portfolio manager, Lex C. Huberts.
The past 12 months have been highly volatile for stocks and bonds, which began
the reporting period in the wake of a sharp correction caused primarily by the
spread of the global financial crisis in overseas markets. The Federal Reserve
Board responded to the crisis last fall by reducing short-term interest rates.
Its strategy apparently was effective, and the U.S. economy remained strong
through the remainder of the reporting period.
Because inflation is more likely to rise in a strong economy, the U.S. bond
market generally declined during the first ten months of 1999. To help forestall
a rise of inflation, the Federal Reserve Board raised short-term interest rates
twice during the summer of 1999, effectively reversing most of last fall's
interest-rate cuts.
Despite weakness in the U.S. stock market toward the end of the reporting
period, these economic conditions generally supported stock prices throughout
the year. Technology stocks and other stocks with high earnings growth rates
provided the highest overall returns, while value-oriented and small-cap stocks
generally lagged the market averages.
We appreciate your confidence over the past year, 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
November 15, 1999
DISCUSSION OF FUND PERFORMANCE
Lex C. Huberts, Portfolio Manager
How did Dreyfus Premier Global Allocation Fund perform relative to its
benchmark?
For the 12-month period ended October 31, 1999, the fund produced a total return
of 14.42% for Class A shares, 13.54% for Class B and Class C shares, and 14.54%
for Class R shares.(1) This compares with a 14.26% total 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
The fund' s performance came in slightly above the global balanced benchmark's
return. Our asset allocation helped our performance, since we were overweighted
in equities and they dramatically outperformed bonds during the past year.
Within our equity allocation, we favored Japan, which outperformed the other
developed equity markets. However, our currency hedging strategy offset some of
the gains from our asset allocation decisions.
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 overpriced 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 The Fun
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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 October 31, 1999, the fund's market exposure by country, taking into
account physical securities holdings and derivatives, was as follows:
Market Exposure by Country (as of October 31, 1999)
United States 35.1%
Japan 21.8%
Germany 13.3%
France 8.0%
United Kington 7.3%
Other 4.9%
Netherlands 4.7%
Switzerland 3.9%
Italy 1.0%
Our currency hedging strategy seeks to add value by taking advantage of
differences in real interest -- that is, interest rates that are adjusted for
inflation. Discrepancies in real interest rates occur when a country's central
bank undertakes monetary policies for domestic economic purposes, such as
combating unemployment or attempting to offset inflation. The effect of these
policies tends to spill over into international markets, creating opportunities
for global investors. For example, we may currently obtain income from a
reduction in Japanese yen exposure. Additionally,demand for a currency with high
real interest rates is generally strong and the value of such a currency will
rise over time. We seek to emphasize currencies with high real interest rates
and to de-emphasize those currencies with low real interest rates.
What other factors influenced the fund's performance?
At the beginning of the period, we heavily emphasized stocks, investing 10% to
20% above our neutral 60% weighting. As equity markets advanced sharply over the
first half of our fiscal year, such overweighting enhanced performance
Our equity emphasis focused on Japan, Switzerland and Germany. Japan and Germany
outperformed global averages and enhanced the fund's return. This gain was
somewhat offset by the underperformance of the Swiss stock market. We believed
the U.S. stock market to be overvalued and reduced our exposure to U.S. equities
during a period when they continued to advance, consequently reducing return.
Our stance on relative value shifted at the end of June. After a lengthy run-up,
stocks as an asset class became, in our view, overvalued when compared to bonds.
As real interest rates rose to historically high levels, our gradual shift of
allocation, selling stocks and buying bonds (with a strong emphasis on
dollar-denominated issues), improved fund returns.
Currencies also influenced fund performance. We hedged our exposure to the euro
and the yen, believing that these currencies would decline in value against the
dollar. The euro did as we expected, but the yen advanced sharply, reducing fund
returns.
What is the fund's current strategy?
We currently believe that, globally, equities are slightly overvalued.
Consequently, we have reduced equity exposure to slightly less than our neutral
weighting. We believe that a higher exposure to bonds is prudent, given
currently modest global inflationary expectations.
In our view, U.S. equities are significantly overvalued, and we have reduced our
domestic equity investments to a level that is below that of the U.S. market
benchmark. On the other hand, the Japanese equity market appears to offer solid
investment potential fueled by strong earnings recovery, and we have emphasized
investments there.
November 15, 1999
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 SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGES
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 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 (A): LIPPER ANALYTICAL SERVICES, INC. -- MORGAN STANLEY CAPITAL
INTERNATIONAL WORLD INDEX IS AN UNMANAGED INDEX OF GLOBAL STOCK MARKET
PERFORMANCE, INCLUDING THE UNITED STATES, CANADA, AUSTRALIA, NEW ZEALAND AND THE
FAR EAST. THE INDEX INCLUDES NET DIVIDENDS REINVESTED. SOURCE (B): SALOMON SMITH
BARNEY INC. -- THE SALOMON SMITH BARNEY WORLD GOVERNMENT BOND INDEX (UNHEDGED)
IS A FIXED-INCOME INDEX AND A MARKET CAPITALIZATION BENCHMARK THAT TRACKS THE
PERFORMANCE AND COVERS DEBT ISSUES OF 14 GOVERNMENT BOND MARKETS. SOURCE (C):
SALOMON SMITH BARNEY INC. -- 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.
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Global
Allocation Fund Class A shares, Class B shares, Class C shares and Class R
shares with a Customized Blended Index and the Morgan Stanley Capital
International World Index
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE CLASS A, CLASS
B, CLASS C AND CLASS R SHARES OF DREYFUS PREMIER GLOBAL ALLOCATION FUND ON
6/29/98 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE ON THAT DATE IN THE MORGAN
STANLEY CAPITAL INTERNATIONAL WORLD INDEX AS WELL AS A CUSTOMIZED BLENDED INDEX.
FOR COMPARATIVE PURPOSES, THE VALUE OF EACH INDEX ON 6/30/98 IS USED AS THE
BEGINNING VALUE ON 6/29/98. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE
REINVESTED.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM
INITIAL SALES CHARGE ON CLASS A SHARES, THE MAXIMUM CONTINGENT DEFERRED SALES
CHARGE ON CLASS B AND CLASS C SHARES AND ALL OTHER APPLICABLE FEES AND EXPENSES
ON ALL CLASSES. THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX IS AN
UNMANAGED INDEX OF GLOBAL STOCK MARKET PERFORMANCE, INCLUDING THE UNITED STATES,
CANADA, AUSTRALIA, NEW ZEALAND AND THE FAR EAST. THE INDEX IS THE PROPERTY OF
MORGAN STANLEY & CO. INCORPORATED AND INCLUDES NET DIVIDENDS REINVESTED. THE
CUSTOMIZED BLENDED INDEX HAS BEEN PREPARED BY THE FUND FOR PURPOSES OF A MORE
ACCURATE COMPARISON TO THE FUND'S OVERALL PORTFOLIO COMPOSITION. THE CUSTOMIZED
BLENDED INDEX IS COMPOSED OF 60% MORGAN STANLEY CAPITAL INTERNATIONAL WORLD
INDEX, 30% SOLOMON SMITH BARNEY WORLD GOVERNMENT BOND INDEX, AND 10% SOLOMON
SMITH BARNEY 3-MONTH CD. THE SOLOMON SMITH BARNEY WORLD GOVERNMENT BOND INDEX
IS A MARKET CAPITALIZATION-WEIGHTED INDEX CONSISTING OF DEBT ISSUES OF
GOVERNMENT BOND MARKETS.
NEITHER OF THE FOREGOING INDICES TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
The Fund
FUND PERFORMANCE (CONTINUED)
Average Annual Total Returns AS OF 10/31/99
<TABLE>
<CAPTION>
Inception From
Date 1 Year Inception
- ------------------------------------------------------------------------------------------------------------------------------------
Class A Shares
<S> <C> <C> <C>
WITH SALES CHARGE (5.75%) 6/29/98 7.81% 3.08%
WITHOUT SALES CHARGE 6/29/98 14.42% 7.72%
Class B Shares
WITH REDEMPTION ((+)) 6/29/98 9.54% 3.97%
WITHOUT REDEMPTION 6/29/98 13.54% 6.91%
Class C Shares
WITH REDEMPTION ((+)(+)) 6/29/98 12.54% 6.91%
WITHOUT REDEMPTION 6/29/98 13.54% 6.91%
Class R Shares 6/29/98 14.73% 8.01%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
( (+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%
AND IS REDUCED TO 0% AFTER SIX YEARS.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
STATEMENT OF INVESTMENTS
October 31, 1999
<TABLE>
<CAPTION>
COMMON STOCKS--25.6% Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
AUSTRIA--.1%
<S> <C> <C>
Bank Austria 100 4,969
OMV 100 9,650
14,619
BELGIUM--.6%
Barco 100 12,929
Electrabel 100 32,962
Fortis (B) 900 30,366
Groupe Bruxelles Lambert 100 17,301
KBC Bancassurance 200 10,301
Solvay 100 7,668
Tractebel 100 17,469
128,996
DENMARK--.3%
A/S Dampskibsselskabet Svendborg 1 14,494
D/S 1912, Cl. B 1 10,110
Den Danske Bank 100 11,383
Tele Danmark 200 12,133
Unidanmark, Cl. A 100 7,777
55,897
FINLAND--.7%
Merita 1,000 5,792
Nokia 1,200 137,244
UPM-Kymmene 9,460
152,496
HONG KONG--.6%
CLP 2,000 9,164
Cable & Wireless HKT 10,000 22,846
Cheung Kong 2,000 18,148
Hang Seng Bank 2,000 21,752
Hutchison Whampoa 3,000 30,118
New World Development 3,000 5,676
Sun Hung Kai Properties 2,021 16,322
Swire Pacific, Cl. A 2,000 9,910
133,936
IRELAND--.1%
Allied Irish Banks 700 8,756
CRH 400 7,547
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
IRELAND (CONTINUED)
Jefferson Smurfit 1,700 4,413
20,716
ITALY--1.0%
Assicurazioni Generali 800 25,773
Banca Intesa 1,300 5,531
ENI 6,400 37,611
Edison 700 5,814
Fiat 300 9,482
Istituto Nazionale delle Assicurazioni 3,300 10,014
Mediaset 1,000 9,960
Mediobanca 600 6,202
Montedison 2,600 4,597
Pirelli 1,700 3,908
Riunione Adriatica di Sicurta 500 4,620
San Paolo - IMI 1,222 16,084
Telecom Italia 3,000 26,018
Telecom Italia (RNC) 1,000 4,924
Telecom Italia Mobile 5,300 33,174
Telecom Italia Mobile (RNC) 2,000 6,933
UniCredito Italiano 2,500 11,683
Unione Immobiliare 3,300 1,694
224,022
JAPAN--15.3%
ACOM 200 21,847
ADVANTEST 100 15,044
ASAHI BREWERIES 1,000 14,210
Ajinomoto 1,000 11,202
Alps Electric 1,000 19,356
Aoyamma Trading 200 6,382
Asahi Bank 4,000 35,493
Asahi Chemical Industry 2,000 12,074
Asahi Glass 2,000 15,887
Bank of Fukuoka 1,000 7,695
Bank of Tokyo-Mitsubishi 7,000 115,906
Bank of Yokohama 2,000 11,211
Benesse 100 21,368
Bridgestone 1,000 27,501
The Fund
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
Canon 1,000 28,268
Central Japan Railway 2 13,511
Chugai Pharmaceutical 1,000 11,882
Citizen Watch 1,000 7,062
DAINIPPON INK AND CHEMICALS 2,000 7,666
DAIWA HOUSE INDUSTRY 1,000 9,141
Dai Nippon Printing 1,000 18,216
Daikin Industries 1,000 11,020
Daiwa Bank 2,000 9,563
Daiwa Securities 3,000 31,995
Denso 1,000 21,368
EBARA 1,000 11,920
East Japan Railway 5 30,615
FANUC 600 46,570
Fuji Bank 5,000 68,513
Fuji Photo Film 1,000 32,100
Fujitsu 3,000 90,264
Furukawa Electric 2,000 14,565
Gunma Bank 1,000 7,493
Hitachi 4,000 43,197
Honda Motor 1,000 42,162
ITOCHU 1,000 (a) 3,680
Industrial Bank of Japan 4,000 54,044
Isetan 1,000 7,139
JAPAN AIRLINES 2,000 6,707
JAPAN TOBACCO 3 33,059
JUSCO 1,000 23,285
Joyo Bank 2,000 9,774
KINDEN 1,000 8,959
KIRIN BREWERY 2,000 22,882
KOKUYO 1,000 18,139
KOMATSU 2,000 11,614
Kansai Electric Power 1,300 24,278
Kao 1,000 30,471
Kawasaki Heavy Industries 3,000 4,111
Kawasaki Steel 3,000 (a) 6,784
Kinki Nippon Railway 2,000 9,256
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
Konami 100 9,678
Kubota 3,000 11,930
Kuraray 1,000 13,415
Kyocera 600 57,493
Marui 1,000 18,877
Matsushita Electric Industrial 2,000 42,066
Minebea 1,000 13,463
Mitsubishi 2,000 14,373
Mitsubishi Chemical 2,000 9,065
Mitsubishi Electric 4,000 22,116
Mitsubishi Estate 2,000 20,027
Mitsubishi Heavy Industries 6,000 23,515
Mitsubishi Rayon 2,000 5,040
Mitsubishi Trust & Banking 2,000 26,888
Mitsui & Co. 2,000 14,776
Mitsui Fudosan 1,000 7,465
Mitsui Marine & Fire Insurance 1,000 6,621
Mycal 1,000 4,734
NEC 2,000 40,437
NIDEC 100 19,404
NGK Insulators 1,000 9,477
NGK Spark Plug 1,000 8,135
NSK 1,000 8,001
Nichiei 100 5,174
Nikon 1,000 23,764
Nintendo 200 31,717
Nippon Express 1,000 7,072
Nippon Mitsubishi Oil 2,000 8,815
Nippon Paper Industries 2,000 15,523
Nippon Steel 12,000 30,471
Nippon Telegraph & Telephone 18 275,968
Nippon Yusen Kabushiki Kaisha 2,000 8,624
Nissan Motor 5,000 (a) 29,944
Nomura Securities 3,000 49,473
OBAYASHI 2,000 11,978
ORIENTAL LAND 100 9,467
OSAKA GAS 3,000 10,033
The Fund
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
Oji Paper 2,000 14,086
Olympus Optical 1,000 13,511
Omron 1,000 20,889
Orix 100 13,415
Promise 200 13,415
Rohm 100 22,422
SHIMANO 1,000 24,914
SHIMIZU 2,000 7,168
SMC 100 16,855
SOFTBANK 100 41,491
SONY 800 124,645
Sakura Bank 6,000 51,514
Sankyo 1,000 28,459
Sanyo Electric 4,000 19,164
Sekisui Chemical 1,000 4,916
Sekisui House 1,000 10,818
77 Bank 1,000 11,863
Sharp 2,000 31,813
Shimamura 100 14,373
Shin-Etsu Chemical 1,000 41,204
Shionogi & Co. 1,000 9,189
Shizuoka Bank 1,000 11,307
Sumitomo 2,000 14,603
Sumitomo Bank 4,000 64,316
Sumitomo Chemical 3,000 19,232
Sumitomo Electric Industries 1,000 13,425
Sumitomo Marine & Fire Insurance 1,000 7,714
Sumitomo Metal Industries 6,000 (a) 5,864
TAKEFUJI 200 25,872
TOKYO GAS 5,000 11,834
TOSHIBA 3,000 18,858
Taisho Pharmaceutical 1,000 41,587
Takashimaya 1,000 8,959
Takeda Chemical Industries 1,000 57,397
Teijin 2,000 10,195
Terumo 1,000 30,376
Tobu Railway 2,000 6,267
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
JAPAN (CONTINUED)
Tohoku Electric Power 1,000 15,600
Tokai Bank 3,000 26,159
Tokio Marine & Fire Insurance 2,000 26,159
Tokyo Broadcasting System 1,000 26,399
Tokyo Electric Power 1,600 35,723
Tokyu 2,000 5,462
Toppan Printing 1,000 12,256
Toray Industries 2,000 11,020
Toto 1,000 7,608
Toyota Motor 5,000 172,959
Yamanouchi Pharmaceutical 1,000 45,324
Yamato Transport 1,000 28,747
3,388,814
NETHERLANDS--1.0%
ABN AMRO 740 17,882
Akzo Nobel 160 6,885
Elsevier 350 3,322
Getronics 50 2,491
Heineken 180 9,174
ING Groep 502 29,591
KPN 247 12,667
Koninklijke Ahold 311 9,545
Koninklijke (Royal) Philips Electronics 179 18,344
Royal Dutch Petroleum 1,160 69,292
TNT Post 240 6,105
Unilever 321 21,256
Wolters Kluwer 160 5,343
211,897
NEW ZEALAND--.0%
Telecom Corporation of New Zealand 2,000 8,039
NORWAY--.0%
Den Norske Bank 1,100 4,263
Norsk Hydro 200 7,980
12,243
PORTUGAL--.2%
BPI-SGPS 1,330 5,312
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
PORTUGAL (CONTINUED)
Banco Comercial Portugues 300 8,444
Banco Espirito Santo 200 5,197
Electricidade de Portugal 300 4,661
Portugal Telecom 220 9,805
33,419
SINGAPORE--.3%
DBS 1,163 13,141
Oversea-Chinese Banking 2,100 15,777
Singapore Airlines 1,000 10,578
Singapore Press 900 15,417
Singapore Telecommunications 5,000 9,497
64,410
SPAIN--.8%
Argentaria, Caja Postal y Banco Hipotecario 400 8,871
Autopistas, Concesionaria Espanola 525 5,656
Banco Bilbao Vizcaya 1,500 20,150
Banco Santander Central Hispano 3,120 32,368
Endesa 800 16,002
Fomento de Construcciones y Contratas 400 10,028
Gas Natural SDG, Cl. E 300 6,559
Iberdrola 700 10,198
Repsol - YPF 600 12,361
Sociedad General de Aguas de Barcelona 600 9,573
Tabacalera, Cl. A 300 4,935
Telefonica 2,496 (a) 41,032
177,733
SWEDEN--.8%
Drott, Cl. B 200 1,917
Electrolux, Cl. B 300 5,972
ForeningsSparbanken 450 7,156
Hennes & Mauritz, Cl. B 800 21,218
NetCom, Cl. B 300 (a) 12,436
Sandvik, Cl. A 300 7,702
Securitas, Cl. B 800 11,847
Skandia Forsakrings 400 8,885
Skandinaviska Enskilda Banken, Cl. A 500 5,129
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
SWEDEN (CONTINUED)
Skanska, Cl. B 200 7,307
Svenska Cellulosa, Cl. B 300 8,084
Svenska Handelsbanken, Cl. A 600 8,303
Telefonaktiebolaget LM Ericsson, Cl. B 1,600 66,422
Volvo, Cl. A 300 7,811
Volvo, Cl. B 200 5,159
185,348
SWITZERLAND--3.8%
ABB 75 (a) 7,556
ABB (Bearer) 25 40,198
Adecco 25 15,160
Alusuisse Lonza 10 6,104
Credit Suisse 382 73,457
Holderbank Financiere Glarus 30 9,923
Holderbank Financiere Glarus, Cl. B 4 4,927
Lonza (Rights) 10 5,841
Nestle 61 117,700
Novartis 106 158,614
Roche (Bearer) 3 52,373
Roche (Genusss) 11 132,113
Sulzer 10 7,022
Swisscom 120 36,582
Swiss Re 21 43,552
UBS 323 94,015
Zurich Allied 79 44,744
849,881
TOTAL COMMON STOCKS
(cost $4,517,110) 5,662,466
- ------------------------------------------------------------------------------------------------------------------------------------
Principal
BONDS AND NOTES--18.7% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS--3.7%
Netherlands Government, Bonds:
6%, 1/15/2006 210,000 231,878
5.75%, 2/15/2007 206,445 224,084
7.50%, 4/15/2010 169,234 208,087
7.50%, 1/15/2023 120,000 151,984
816,033
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
UNITED STATES--15.0%
U.S. Treasury, Notes,
6.50%, 8/15/2005 1,685,000 (b) 1,716,425
U.S. Treasury, Bonds,
8%, 11/15/2021 1,360,000 1,597,130
3,313,555
TOTAL BONDS AND NOTES
(cost $4,270,693) 4,129,588
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--55.3%
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER:
A.I. Credit, 5.26%, 11/18/1999 800,000 798,013
Abbey National North America, 5.35%, 12/15/1999 800,000 794,769
Associates Corporation of North America,
5.30%, 11/1/1999 1,112,000 1,112,000
Atlantis One Funding, 6%, 1/18/2000 1,600,000 1,579,200
BP America, 5.23%, 11/19/1999 771,000 768,984
CIT Group, 5.26%, 12/10/1999 400,000 397,721
Ciesco, 5.30%, 11/23/1999 1,600,000 1,594,818
E. I. du Pont de Nemours, 5.27%, 11/12/1999 800,000 798,712
Ford Motor Credit, 5.28%, 12/16/1999 800,000 794,720
General Electric Credit, 5.29%, 12/16/1999 800,000 794,710
Lucent Technologies, 5.29%, 12/1/1999 400,000 398,236
Metlife Funding, 5.96%, 1/24/2000 800,000 788,874
Toyota Motor Credit, 5.25%, 11/12/1999 800,000 798,717
Xerox Capital (Europe), 5.26%, 11/19/1999 800,000 797,896
TOTAL SHORT-TERM INVESTMENTS
(cost $12,217,370) 12,217,370
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $21,005,173) 99.6% 22,009,424
CASH AND RECEIVABLES (NET) .4% 77,984
NET ASSETS 100.0% 22,087,408
(A) NON-INCOME PRODUCING.
(B) PARTIALLY HELD BY THE CUSTODIAN IN A SEGREGATED ACCOUNT AS COLLATERAL FOR
OPEN FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF FINANCIAL FUTURES
October 31, 1999
<TABLE>
<CAPTION>
Unrealized
Market Value Appreciation
Covered (Depreciation)
Contracts by Contracts ($) Expiration ($)
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL FUTURES LONG:
<S> <C> <C> <C> <C>
Australian 10 Year Bond 1 89,811 December '99 (862)
CAC 40 11 562,864 December '99 34,397
Euro Bund 21 2,345,624 December '99 (17,406)
Euro Notional 10 Year 13 1,193,921 December '99 1,219
Financial Times Stock Exchange 100 9 915,576 December '99 1,518
German Stock 4 577,632 December '99 3,661
Japanese 10 Year Government Bond 1 584,834 March '00 13,176
Long Gilt 4 685,487 December '99 (16,146)
Nikkei 9 256,112 December '99 7,694
S&P 500 9 3,096,450 December '99 27,775
Tokyo Price 4 570,048 December '99 29,322
U.S. Long Bond 11 1,249,531 December '99 (5,219)
79,129
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1999
Cost Value
- --------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 21,005,173 22,009,424
Cash 940
Cash denominated in foreign currencies 10,213 10,240
Receivable for investment securities sold 186,394
Receivable for futures variation margin--Note 4(a) 170,432
Dividends and interest receivable 120,429
Prepaid expenses 21,151
22,519,010
- --------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 6,519
Due to Distributor 9,819
Payable for investment securities purchased 345,096
Net unrealized (depreciation) on forward
currency exchange contracts--Note 4(a) 37,566
Accrued expenses and other liabilities 32,602
431,602
- --------------------------------------------------------------------------------
NET ASSETS ($) 22,087,408
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 20,070,991
Accumulated undistributed investment income--net 523,660
Accumulated net realized gain (loss) on investments
and foreign currency transactions 446,709
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions
(including $79,129 net unrealized appreciation on
financial futures) 1,046,048
- --------------------------------------------------------------------------------
NET ASSETS ($) 22,087,408
NET ASSET VALUE PER SHARE
<TABLE>
<CAPTION>
Class A Class B Class C Class R
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Assets ($) 7,769,093 7,694,960 2,187,700 4,435,655
Shares Outstanding 562,512 562,763 160,000 320,074
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 13.81 13.67 13.67 13.86
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Year Ended October 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 781,225
Cash dividends (net of $10,844 foreign taxes withheld at source) 66,867
TOTAL INCOME 848,092
EXPENSES:
Management fee--Note 3(a) 210,961
Registration fees 77,232
Distribution fees--Note 3(b) 70,902
Shareholder servicing costs--Note 3(c) 42,294
Professional fees 24,842
Prospectus and shareholders' reports 21,556
Custodian fees 20,515
Directors' fees and expenses--Note 3(d) 4,617
Miscellaneous 4,572
TOTAL EXPENSES 477,491
Less-reduction in management fee due to undertaking--Note 3(a) (27,279)
NET EXPENSES 450,212
INVESTMENT INCOME--NET 397,880
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 239,089
Net realized gain (loss) on forward currency exchange contracts (544,974)
Net realized gain (loss) on financial futures 1,806,230
NET REALIZED GAIN (LOSS) 1,500,345
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions [including ($465,438) net
unrealized (depreciation) on financial futures] 831,343
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 2,331,688
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,729,568
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
----------------------------
1999 1998(a)
- --------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 397,880 125,780
Net realized gain (loss) on investments 1,500,345 (1,053,636)
Net unrealized appreciation (depreciation)
on investments 831,343 214,705
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS 2,729,568 (713,151)
- --------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 32,966 7,001,300
Class B shares 36,816 7,000,000
Class C shares -- 2,000,000
Class R shares 1,000 4,000,000
Cost of shares redeemed:
Class A shares (1,078) --
Class B shares (13) --
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 69,691 20,001,300
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,799,259 19,288,149
- --------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 19,288,149 --
END OF PERIOD 22,087,408 19,288,149
Undistributed investment income--net 523,660 125,780
(A) FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended October 31,
-----------------------------
1999 1998(a)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 2,488 560,105
Shares redeemed (81) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,407 560,105
- --------------------------------------------------------------------------------
CLASS B
Shares sold 2,764 560,000
Shares redeemed (1) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,763 560,000
- --------------------------------------------------------------------------------
CLASS C
SHARES SOLD -- 160,000
- --------------------------------------------------------------------------------
CLASS R
SHARES SOLD 74 320,000
(A) FROM JUNE 29, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
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.
Year Ended October 31,
-----------------------------
CLASS A SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.07 12.50
Investment Operations:
Investment income--net .29(b) .09
Net realized and unrealized gain (loss)
on investments 1.45 (.52)
Total from Investment Operations 1.74 (.43)
Net asset value, end of period 13.81 12.07
- --------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 14.42 (3.44)(d)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.85 .59(d)
Ratio of net investment income
to average net assets 2.17 .75(d)
Decrease reflected in above expense ratios
due to undertakings by Dreyfus .13 .11(d)
Portfolio Turnover Rate 40.60 12.26(d)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
----------------------------
CLASS B SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.04 12.50
Investment Operations:
Investment income--net .19(b) .06
Net realized and unrealized gain (loss)
on investments 1.44 (.52)
Total from Investment Operations 1.63 (.46)
Net asset value, end of period 13.67 12.04
- --------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 13.54 (3.68)(d)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.60 .84(d)
Ratio of net investment income
to average net assets 1.42 .50(d)
Decrease reflected in above expense ratios
due to undertakings by Dreyfus .13 .11(d)
Portfolio Turnover Rate 40.60 12.26(d)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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.
Year Ended October 31,
----------------------------
CLASS C SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.04 12.50
Investment Operations:
Investment income--net .19(b) .06
Net realized and unrealized gain (loss)
on investments 1.44 (.52)
Total from Investment Operations 1.63 (.46)
Net asset value, end of period 13.67 12.04
- --------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 13.54 (3.68)(d)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.60 .84(d)
Ratio of net investment income
to average net assets 1.42 .50(d)
Decrease reflected in above expense ratios
due to undertakings by Dreyfus .13 .11(d)
Portfolio Turnover Rate 40.60 12.26(d)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
----------------------------
CLASS R SHARES 1999 1998(a)
- --------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.08 12.50
Investment Operations:
Investment income--net .32(b) .10
Net realized and unrealized gain (loss)
on investments 1.46 (.52)
Total from Investment Operations 1.78 (.42)
Net asset value, end of period 13.86 12.08
- --------------------------------------------------------------------------------
TOTAL RETURN (%) 14.73 (3.36)(c)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.60 .50(c)
Ratio of net investment income
to average net assets 2.42 .84(c)
Decrease reflected in above expense ratios
due to undertakings by Dreyfus .13 .11(c)
Portfolio Turnover Rate 40.60 12.26(c)
- --------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 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.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Global Allocation Fund (the "fund") is a separate diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering four series including the fund. The fund's investment
objective is total return. The Dreyfus Corporation ("Dreyfus") serves as the
fund' s investment adviser. Dreyfus is a direct subsidiary of Mellon Bank, N.A.,
which is a wholly-owned subsidiary of Mellon Financial Corporation.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
fund' s shares. 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 and Class R shares. Class A shares are subject to a sales charge imposed
at the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase, Class C shares are subject to a CDSC imposed on Class C shares
redeemed within one year of purchase and Class R shares are sold at net asset
value per share only to institutional investors. Other differences between the
classes include the services offered to and the expenses borne by each class and
certain voting rights.
As of October 31, 1999, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares:
Class A .................... 560,000 Class C ..................... 160,000
Class B .................... 560,000 Class R ..................... 320,000
The Company accounts separately for the assets, liabilities and operations of
each 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.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 $934 during the
period ended October 31, 1999 based on available cash balances left on deposit.
Income earned under this arrangement is included in interest income.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain, are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, 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 October 31, 1999, 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 1% of the value of the fund's average daily net
assets and is payable monthly. Dreyfus has undertaken from November 1, 1998
through October 31, 2000 to reduce the management fee paid by the fund, to the
extent that the fund's aggregate expenses, excluding 12b-1 distribution fees,
share The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
holder service plan fees, taxes, brokerage, 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 $27,279 during the period ended October 31, 1999.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares. During the period ended October 31,
1999, Class B and Class C shares were charged $55,160 and $15,742, respectively,
pursuant to the Plan.
(C) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the Distributor at an annual rate of .25 of 1% of the value of their average
daily net assets for the provision of certain services. The services provided
may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The Distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended October 31, 1999, Class A, Class B and Class C
shares were charged $18,522, $18,387 and $5,247, respectively, pursuant to the
Shareholder Services Plan.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 1999, the fund was charged $113 pursuant to the transfer
agency agreement.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
NOTE 4--Securities Transactions:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, financial futures and forward currency exchange
contracts, during the period ended October 31, 1999, amounted to $4,344,144 and
$3,164,980, respectively.
The following summarizes open forward currency exchange contracts at October 31,
1999:
<TABLE>
<CAPTION>
FOREIGN UNREALIZED
FORWARD CURRENCY CURRENCY APPRECIATION
EXCHANGE CONTRACTS AMOUNTS COST ($) VALUE ($) (DEPRECIATION) ($)
- ------------------------------------------------------------------------------------------------------------------------------------
PURCHASES:
British Pounds,
<S> <C> <C> <C> <C>
expiring 12/20/99 1,003,980 1,655,493 1,648,166 (7,327)
Euro Dollars,
expiring 12/20/99 2,649,000 2,796,188 2,794,790 (1,398)
SALES: PROCEEDS
Japanese Yen,
expiring 12/20/99 254,519,000 2,429,042 2,459,104 (30,062)
Swiss Francs,
expiring 12/20/99 1,303,000 861,271 860,050 1,221
TOTAL (37,566)
</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 The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 October 31, 1999 are set
forth in the Statement of Financial Futures.
(B) At October 31, 1999, accumulated net unrealized appreciation on investments,
forward currency exchange contracts and financial futures was $1,045,814,
consisting of $1,516,941 gross unrealized appreciation and $471,127 gross
unrealized depreciation.
At October 31, 1999, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Premier Global Allocation Fund
We have audited the accompanying statement of assets and liabilities, including
the statements of investments and financial futures, of Dreyfus Premier Global
Allocation Fund (one of the series constituting Dreyfus Premier International
Funds, Inc.) as of October 31, 1999, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are the
responsibility of the fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1999 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Premier Global Allocation Fund at October 31, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period than ended, and the financial highlights for each of
the indicated years, in conformity with generally accepted accounting
principles.
New York, New York
December 9, 1999
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund elects to provide each shareholder
with their portion of the fund's foreign taxes paid and the income sourced from
foreign countries. Accordingly, the fund hereby makes the following designations
regarding its fiscal year ended October 31, 1999:
--the total amount of taxes paid to foreign countries was $10,844
--the total amount of income sourced from foreign countries was $25,399
As required by Federal tax law rules, shareholders will receive notification of
their proportionate share of foreign taxes paid and foreign sourced income for
the 1999 calendar year with Form 1099-DIV which will be mailed by January 31,
2000.
NOTES
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
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 545/546AR9910
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS PREMIER INTERNATIONAL GROWTH FUND CLASS A
SHARES WITH THE MORGAN STANLEY CAPITAL INTERNATIONAL
EUROPE, AUSTRALASIA, FAR EAST (EAFE(R)) INDEX AND THE MORGAN
STANLEY CAPITAL INTERNATIONAL WORLD EX U.S. INDEX
EXHIBIT A:
MORGAN
STANLEY
CAPITAL
DREYFUS MORGAN INTERNATIONAL
PREMIER STANLEY EUROPE,
INTERNATIONAL CAPITAL AUSTRALASIA,
GROWTH FUND INTERNATIONAL FAR EAST
PERIOD (CLASS A WORLD (EAFE(R))
SHARES) EX U.S. INDEX* INDEX*
1/31/92 9,427 10,000 10,000
10/31/92 10,317 8,835 8,845
10/31/93 11,933 12,066 12,158
10/31/94 12,604 13,260 13,385
10/31/95 13,199 13,244 13,336
10/31/96 14,546 14,727 14,732
10/31/97 16,728 15,492 15,414
10/31/98 15,975 16,835 16,900
10/31/99 19,289 20,790 20,793
* Source: Morgan Stanley Capital International
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
PREMIER GREATER CHINA FUND CLASS A SHARES, CLASS B SHARES,
CLASS C SHARES AND CLASS R SHARES AND THE HANG SENG INDEX
================================================================================
EXHIBIT A:
DREYFUS DREYFUS DREYFUS DREYFUS
PREMIER PREMIER PREMIER PREMIER
GREATER GREATER GREATER GREATER
CHINA CHINA CHINA CHINA
PERIOD HANG FUND FUND FUND FUND
SENG (CLASS A (CLASS B (CLASS C (CLASS R
INDEX* SHARES) SHARES) SHARES) SHARES)
5/12/98 10,000 9,427 10,000 10,000 10,000
7/31/98 7,730 9,035 9,568 9,568 9,592
10/31/98 10,005 9,638 10,184 10,184 10,232
1/31/99 9,410 8,415 8,880 8,886 8,945
4/30/99 13,317 9,870 10,393 10,393 10,498
7/31/99 13,235 10,921 11,472 11,474 11,622
10/31/99 13,430 11,005 11,145 11,546 11,719
================================================================================
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER EUROPEAN EQUITY FUND CLASS A SHARES,
CLASS B SHARES, CLASS C SHARES AND CLASS R SHARES
AND THE FINANCIAL TIMES EUROTOP 300 INDEX
DREYFUS DREYFUS DREYFUS DREYFUS
PREMIER PREMIER PREMIER PREMIER
EUROPEAN EUROPEAN EUROPEAN EUROPEAN FINANCIAL
EQUITY EQUITY EQUITY EQUITY TIMES
PERIOD FUND FUND FUND FUND EUROTOP
(CLASS A (CLASS B (CLASS C (CLASS R 300
SHARES) SHARES) SHARES) SHARES) INDEX *
12/10/98 9,427 10,000 10,000 10,000 10,000
1/31/99 10,000 10,600 10,600 10,616 10,367
4/30/99 10,498 11,104 11,104 11,144 10,575
7/31/99 10,724 11,320 11,320 11,392 10,396
10/31/99 10,596 10,768 11,068 11,264 10,833
* Source: Bloomberg L.P.
================================================================================
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS PREMIER GLOBAL ALLOCATION FUND CLASS A SHARES,
CLASS B SHARES, CLASS C SHARES AND CLASS R SHARES WITH A CUSTOMIZED
BLENDED INDEX AND THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX
DREYFUS DREYFUS DREYFUS DREYFUS MORGAN
PREMIER PREMIER PREMIER PREMIER STANLEY
GLOBAL GLOBAL GLOBAL GLOBAL CAPITAL
ALLOCATION ALLOCATION ALLOCATION ALLOCATION INTER-
PERIOD FUND FUND FUND FUND CUSTOMIZED NATIONAL
(CLASS A (CLASS B (CLASS C (CLASS R BLENDED WORLD
SHARES) SHARES) SHARES) SHARES) INDEX * INDEX *
6/29/98 9,427 10,000 10,000 10,000 10,000 10,000
7/31/98 9,517 10,088 10,088 10,096 9,998 9,982
10/31/99 9,103 9,632 9,632 9,664 10,121 9,595
1/31/99 9,894 10,448 10,448 10,512 10,944 10,891
4/30/99 10,234 10,792 10,792 10,880 11,234 11,474
7/31/99 10,166 10,704 10,704 10,816 11,253 11,531
10/31/99 10,415 10,536 10,936 11,088 11,614 11,986
*Source: Lipper Analytical Services, Inc.
