Dreyfus
Premier Greater
China Fund
ANNUAL REPORT October 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
15 Financial Highlights
20 Notes to Financial Statements
26 Report of Independent Auditors
27 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Premier Greater China Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Greater China
Fund, covering the 12-month period from November 1, 1999 through October 31,
2000. Inside, you'll find valuable information about how the fund was managed
during the reporting period, including a discussion with the fund's portfolio
manager, Raymond Chan.
The MSCI Europe, Australasia, Far East Index, a popular measure of international
stock market performance, fell almost 3% over the 12-month reporting period in
an investment environment marked by dramatic price fluctuations. International
stocks were adversely influenced by slowing economic growth in the U.S. and
Europe. Additionally, the moderating effects of the Federal Reserve Board's
interest-rate hikes during 2000 to prevent domestic inflationary pressures from
reemerging also affected global economies along with higher energy prices and a
weak euro.
Since some global equities in general provided returns well above their
historical averages during the second half of the 1990s, some investors may have
developed unrealistic expectations in equities. Recent volatility has reminded
investors of both the risks of investing and the importance of fundamental
research and investment selection.
For more information about the economy and financial markets, including
international markets, we encourage you to visit the Market Commentary section
of our website at www.dreyfus.com. Or, to speak with a customer service
representative, call us at 1-800-782-6620.
Thank you for investing in Dreyfus Premier Greater China Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 2000
DISCUSSION OF FUND PERFORMANCE
Raymond Chan, Portfolio Manager
How did Dreyfus Premier Greater China Fund perform relative to its benchmark?
For the 12-month period ended October 31, 2000, the fund produced a total return
of 27.06% for Class A shares, 25.95% for Class B shares, 26.10% for Class C
shares and 27.40% for Class R shares.(1) The fund's benchmark, the Hang Seng
Stock Index, produced a total return of -2.90% for the same period.(2)
The public offering of the fund's Class T shares commenced on March 1, 2000.
From March 1, 2000 through October 31, 2000, the fund's Class T shares produced
a total return of -37.48% , evidence of the fund's volatility during the
period.(1)
We attribute the fund's good relative performance during the full reporting
period to regional economic conditions and industry sector selection. During the
first four months of the reporting period we placed an emphasis on technology
stocks, which advanced sharply until a mid-March correction that significantly
trimmed gains and produced negative returns for the fund's Class T shares.
What is the fund's investment approach?
The fund seeks long-term capital appreciation by investing in stocks of
companies in the Greater China region -- Hong Kong, China and Taiwan. The fund's
investment approach is based on fundamental research of individual companies as
well as macroeconomic analysis of each market's overall economic prospects.
We look for rapidly growing companies whose stock prices appear reasonable.
Characteristics of such companies include high quality management with a
commitment to increasing shareholder value, strong earnings momentum with
consistent free cash flow generation, sound business fundamentals and long-term
vision. Generally, the companies in which we invest are leaders in their
respective industries and have exceptional brand recognition.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
We also gauge the respective strengths of markets. We attempt to identify the
macroeconomic events, such as changes in monetary or exchange rate policy, that
often indicate market turning points. Accordingly, we then increase or decrease
investments based upon anticipated market direction.
What other factors influenced the fund's performance?
The fund's positive performance was particularly notable during the first half
of the reporting period, a time marked by strong global demand for growth
stocks. Global markets however, have become increasingly linked -- when demand
for an American technology company' s product drops, demand for the
semiconductors produced by its Asian suppliers drops as well. The mid-March
decline in the technology rich Nasdaq had a direct, negative impact on growth
stocks in the Greater China region.
Regional trends played both a positive and negative role in fund performance.
For example, the fund's Hong Kong investments were concentrated in technology --
an area that has fueled the growth of Hong Kong's developing information-based
economy. Performance here was exceptionally strong in the first half of the
reporting period, but then tapered off. Facing uncertainty, investors retreated
to value-oriented stocks, such as property companies and banks, which the fund,
with its growth-oriented investment style, does not emphasize. Concern over
continuity in government and the lack of a clear economic direction in Taiwan
worked to lower stock prices significantly. In China, the fund benefited by
investing in companies that support its increasing integration into the world
economy and its continued demand for goods and services needed to build an
infrastructure.
Industry sector and individual stock choices also had a mixed effect on fund
performance. We concentrated a large portion of the fund's investments in
export-oriented manufacturers of semiconductors and other electronics and
telecommunications equipment that we believe are positioned to benefit from
strong regional demand for infrastructure development. In general, the
growth-oriented stocks in which the fund concentrated its investments followed
global trends: they rallied through the beginning of 1999, stumbled in
mid-March, then fell slowly but steadily into somewhat volatile trading
patterns.
What is the fund's current strategy?
Toward the end of the reporting period we slightly decreased our technology
commitment, choosing instead to increase our exposure to more defensive stocks,
including consumer durables, software providers and information system
consultants. We have taken this more defensive stance in response to what we
believe is a shrinkage in global liquidity -- that is, money that's available
for investing. This shrinkage occurred once central banks increased interest
rates in an attempt to head off inflation.
Our focus, however, remains on growth stocks, particularly those within the
technology sector. While such stocks have fallen from earlier lofty levels, we
believe that the areas where we have concentrated investment --
telecommunications and Internet sectors in China as well as semiconductor and
other electronics manufacturers in Hong Kong and Taiwan -- offer the best
potential for long-term growth. Of course, investments in Greater China can be
extremely volatile and an investment in the fund should be considered as a
supplement to a balanced investment program.
November 15, 2000
(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 PRICES, YIELD 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, 2001, 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. -- REFLECTS REINVESTMENT OF NET DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE HANG SENG STOCK INDEX IS A MARKET
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 SUBINDICES: COMMERCE, FINANCE,
UTILITIES AND PROPERTIES.
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. 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 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 SUBINDICES: 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.
<TABLE>
Average Annual Total Returns as of 10/31/00
Inception From
Date 1 Year Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A SHARES
WITH SALES CHARGE (5.75%) 5/12/98 19.76% 14.47%
WITHOUT SALES CHARGE 5/12/98 27.06% 17.23%
CLASS B SHARES
WITH REDEMPTION((+)) 5/12/98 21.95% 15.32%
WITHOUT REDEMPTION 5/12/98 25.95% 16.29%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 5/12/98 25.10% 16.36%
WITHOUT REDEMPTION 5/12/98 26.10% 16.36%
CLASS R SHARES 5/12/98 27.40% 17.54%
------------------------------------------------------------------------------------------------------------------------------------
Actual Aggregate Total Returns AS OF 10/31/00
Inception From
Date 1 Year Inception
------------------------------------------------------------------------------------------------------------------------------------
CLASS T SHARES
WITH SALES CHARGE (4.5%) 3/1/00 -- (40.30%)
WITHOUT SALES CHARGE 3/1/00 -- (37.48%)
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, AT WHICH TIME CLASS B SHARES WILL CONVERT TO
CLASS A SHARES.
((+)(+)) 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
<TABLE>
STATEMENT OF INVESTMENTS
October 31, 2000
STATEMENT OF INVESTMENTS
COMMON STOCKS--93.2% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HONG KONG--64.3%
Asia Satellite Telecommunications 72,000 145,872
Cheung Kong 15,000 165,895
China Resources Enterprise 100,000 112,841
China Unicom 165,000 (a) 331,117
Computer & Technologies 180,000 123,484
e-Kong 500,000 (a) 34,622
Esprit 150,000 128,869
Giordano International 94,000 55,144
Great Eagle 50,000 71,808
Guoco 45,000 112,520
Hang Seng Bank 26,000 305,888
HKCB Bank 690,000 172,531
Hutchison Whampoa 36,500 452,822
i-CABLE Communications 400,000 (a) 146,180
Kingboard Chemical 150,000 64,435
Pacific Century CyberWorks 80,000 (a) 61,549
Pacific Century CyberWorks Warrant 980,000 (a) 1,257
Phoenix Satellite Television 300,000 (a) 70,013
SmarTone Telecommunications 96,000 142,179
South China Morning Post 131,000 89,869
Swire Pacific 31,000 191,201
Television Broadcasts 49,000 268,292
Vanda Systems & Communication 700,000 (a) 105,019
Wharf 90,000 183,494
3,536,901
SINGAPORE--11.1%
Chartered Semiconductor Manufacturing 44,000 (a) 190,520
NatSteel Electonics 90,000 233,819
Venture Manufacturing 19,000 184,025
608,364
TAIWAN--15.9%
Asustek Computer 27,000 134,582
Everlight Electronics 300 (a) 247
Formosa Chemicals & Fibre 1,198 927
Hitron Technology 8,100 11,536
Nien Hsing Textile 1 (a) 1
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TAIWAN (CONTINUED)
Pro Mos Technologies 11,146 (a) 10,594
Procomp Informatics 45 (a) 162
Quanta Computer 4,800 16,347
Taiwan Semiconductor Manufacturing 76,648 (a) 232,554
United Microelectronics 199,000 (a) 351,176
Via Technolgies 16,000 (a) 114,922
873,048
UNITED STATES--1.9%
AsiaInfo 8,500 (a) 103,063
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $6,095,701) 93.2% 5,121,376
CASH AND RECEIVABLES (NET) 6.8% 374,041
NET ASSETS 100.0% 5,495,417
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 6,095,701 5,121,376
Cash denominated in foreign currencies 179,547 179,495
Receivable for investment securities sold 297,050
Dividends receivable 4,574
Prepaid expenses 55,564
Due from The Dreyfus Corporation and affiliates 6,930
5,664,989
--------------------------------------------------------------------------------
LIABILITIES ($):
Cash overdraft due to Custodian 49,124
Payable for investment securities purchased 77,969
Accrued expenses 42,479
169,572
--------------------------------------------------------------------------------
NET ASSETS ($) 5,495,417
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 5,096,716
Accumulated net realized gain (loss) on investments and
foreign currency transactions 1,373,063
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (974,362)
--------------------------------------------------------------------------------
NET ASSETS ($) 5,495,417
<TABLE>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 3,712,235 961,256 492,227 328,565 1,134
Shares Outstanding 203,965 53,506 27,377 17,982 63.047
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 18.20 17.97 17.98 18.27 17.99
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Year Ended October 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $779 foreign taxes withheld at source) 35,318
Interest 10,300
TOTAL INCOME 45,618
EXPENSES:
Investment advisory fee-Note 3(a) 72,599
Custodian fees 68,324
Registration fees 33,208
Auditing fees 24,528
Prospectus and shareholders' reports 20,463
Organization expenses 17,563
Shareholder servicing costs--Note 3(c) 17,427
Distribution fees--Note 3(b) 11,922
Legal fees 2,058
Directors' fees and expenses--Note 3(d) 1,222
Miscellaneous 8,078
TOTAL EXPENSES 277,392
Less--expense reimbursement from The Dreyfus
Corporation due to undertaking--Note 3(a) (135,735)
NET EXPENSES 141,657
INVESTMENT (LOSS) (96,039)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 1,339,897
Net realized gain (loss) on forward currency exchange contracts (10,232)
NET REALIZED GAIN (LOSS) 1,329,665
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (1,300,225)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 29,440
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (66,599)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
--------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income (loss)--net (96,039) 4,185
Net realized gain (loss) on investments 1,329,665 33,354
Net unrealized appreciation (depreciation)
on investments (1,300,225) 274,100
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS (66,599) 311,639
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (13,881) (13,561)
Class B shares (1,318) (1,375)
Class C shares (695) (2,296)
Class R shares (2,265) (2,144)
Net realized gain on investments:
Class A shares (6,940) --
Class B shares (1,450) --
Class C shares (1,530) --
Class R shares (889) --
TOTAL DIVIDENDS (28,968) (19,376)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 2,868,733 127,540
Class B shares 1,051,459 15,811
Class C shares 795,034 172,118
Class R shares 37,195 --
Class T shares 1,630 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
--------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($)(CONTINUED):
Dividends reinvested:
Class A shares 20,596 13,561
Class B shares 2,669 1,375
Class C shares 2,225 2,296
Class R shares 3,154 2,144
Cost of shares redeemed:
Class A shares (805,178) (58,150)
Class B shares (261,188) (5,376)
Class C shares (703,075) (61,754)
Class R shares (2,161) --
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 3,011,093 209,565
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,915,526 501,828
--------------------------------------------------------------------------------
NET ASSETS ($)
Beginning of Period 2,579,891 2,078,063
END OF PERIOD 5,495,417 2,579,891
Undistributed investment income--net -- 4,131
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended October 31,
--------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A (B)
Shares sold 120,055 9,279
Shares issued for dividends reinvested 1,096 1,113
Shares redeemed (36,296) (4,145)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 84,855 6,247
--------------------------------------------------------------------------------
CLASS B( B)
Shares sold 47,154 1,122
Shares issued for dividends reinvested 143 113
Shares redeemed (12,496) (381)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 34,801 854
--------------------------------------------------------------------------------
CLASS C
Shares sold 36,709 13,114
Shares issued for dividends reinvested 119 189
Shares redeemed (34,330) (4,424)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,498 8,879
--------------------------------------------------------------------------------
CLASS R
Shares sold 1,722 --
Shares issued for dividends reinvested 168 176
Shares redeemed (84) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,806 176
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 63 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000
FOR CLASS T SHARES.
(B) DURING THE PERIOD ENDED OCTOBER 31, 2000, 1,222 CLASS B SHARES REPRESENTING
$27,562 WERE AUTOMATICALLY CONVERTED TO 1,209 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
Year Ended October 31,
------------------------------------------
CLASS A SHARES 2000 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 14.45 12.78 12.50
Investment Operations:
Investment income (loss)--net (.34)(b) .04(b) .13
Net realized and unrealized gain (loss)
on investments 4.26 1.75 .15
Total from Investment Operations 3.92 1.79 .28
Distributions:
Dividends from investment income--net (.11) (.12) --
Dividends from net realized gain on investments (.06) -- --
Total Distributions (.17) (.12) --
Net asset value, end of period 18.20 14.45 12.78
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 27.06 14.18 2.24(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.25 2.25 1.08(d)
Ratio of net investment income (loss)
to average net assets (1.46) .34 1.04(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation 2.34 8.03 2.75(d)
Portfolio Turnover Rate 488.33 206.09 10.65(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 3,712 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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
------------------------------------------
CLASS B SHARES 2000 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.34 12.73 12.50
Investment Operations:
Investment income (loss)--net (.49)(b) (.05)(b) .08
Net realized and unrealized gain (loss)
on investments 4.23 1.74 .15
Total from Investment Operations 3.74 1.69 .23
Distributions:
Dividends from investment income--net (.05) (.08) --
Dividends from net realized gain on investments (.06) -- --
Total Distributions (.11) (.08) --
Net asset value, end of period 17.97 14.34 12.73
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 25.95 13.36 1.84(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 3.00 3.00 1.44(d)
Ratio of net investment income (loss)
to average net assets (2.17) (.41) .69(d
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation 2.33 8.03 2.75(d)
Portfolio Turnover Rate 488.33 206.09 10.65(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 961 268 227
(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.
Year Ended October 31,
-------------------------------------------
CLASS C SHARES 2000 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.32 12.73 12.50
Investment Operations:
Investment income (loss)--net (.54)(b) (.05)(b) .08
Net realized and unrealized gain (loss)
on investments 4.29 1.74 .15
Total from Investment Operations 3.75 1.69 .23
Distributions:
Dividends from investment income--net (.03) (.10) --
Dividends from net realized gain on investments (.06) -- --
Total Distributions (.09) (.10) --
Net asset value, end of period 17.98 14.32 12.73
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 26.10 13.38 1.84(d)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 3.00 3.00 1.43(d)
Ratio of net investment income (loss)
to average net assets (2.28) (.38) .68(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation 2.33 8.03 2.75(d)
Portfolio Turnover Rate 488.33 206.09 10.65(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 492 356 204
(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.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
------------------------------------------
CLASS R SHARES 2000 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.49 12.79 12.50
Investment Operations:
Investment income (loss)--net (.28)(b) .08(b) .14
Net realized and unrealized gain (loss)
on investments 4.26 1.75 .15
Total from Investment Operations 3.98 1.83 .29
Distributions:
Dividends from investment income--net (.14) (.13) --
Dividends from net realized gain on investments (.06) -- --
Total Distributions (.20) (.13) --
Net asset value, end of period 18.27 14.49 12.79
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 27.40 14.54 2.32(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.00 2.00 .96(c)
Ratio of net investment income (loss)
to average net assets (1.24) .59 1.16(c)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation 2.37 8.03 2.75(c)
Portfolio Turnover Rate 488.33 206.09 10.65(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 329 234 205
(A) FROM MAY 12, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
Year Ended
CLASS T SHARES October 31, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 28.76
Investment Operations:
Investment (loss) (.24)(b)
Net realized and unrealized gain (loss)
on investments (10.53)
Total from Investment Operations (10.77)
Net asset value, end of period 17.99
--------------------------------------------------------------------------------
TOTAL RETURN (%)(C) (37.48)(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.67(d)
Ratio of net investment (loss)
to average net assets (1.04)(d)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 1.46(d)
Portfolio Turnover Rate 488.33
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Greater China Fund (the "fund") is a separate non-diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering five series including the fund. The fund's investment
objective is long-term capital appreciation. The Dreyfus Corporation ("Dreyfus")
serves as the fund's investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A. (" Mellon" ), which is a wholly-owned subsidiary of Mellon
Financial Corporation. Hamon U.S. Investment Advisors Limited ("Hamon") serves
as the fund's sub-investment adviser. Hamon is an affiliate of Mellon.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of Dreyfus, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue 200 million shares of $.001 par value Common Stock in
each of the following classes of shares: Class A, Class B, Class C, Class R and
Class T shares. Class A and Class T shares are subject to a sales charge imposed
at the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase, (Class B shares automatically convert to Class A shares after six
years) , Class C shares are subject to a CDSC imposed on Class C shares redeemed
within one year of purchase and Class R shares are sold at net asset value per
share only to institutional investors. Other differences between the classes
include the services offered to and the expenses borne by each class and certain
voting rights.
As of October 31, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares:
Class A .................... 114,096 Class C ....................16,195
Class B .................... 16,192 Class R ....................16,343
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are
charged to that series' operations; expenses which are applicable to all series
are allocated among them on a pro rata basis.
The fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, 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 $4,202 during the period ended October 31, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
During the period ended October 31, 2000, as a result of permanent book to tax
differences, the fund increased accumulated undistributed investment income net
by $110,067, increased accumulated net realized gain (loss) on investments by
$47,057 and decreased paid-in capital by $157,124. 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 the borrowings. During the period ended October 31,
2000, the fund did not borrow under the line of credit.
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of 1.25% of the value of the fund's
average daily net assets and is payable monthly. Dreyfus has undertaken from
November 1, 1999 through October 31, 2001 to reduce the management fee paid by
or reimburse such excess expenses of the fund, to the extent that the fund's
aggregate expenses, excluding 12b-1 distribution fees, shareholder service plan
fees, taxes, brokerage fees, interest on borrowings and extraordinary expenses,
exceed an annual rate of 2% of the value of the fund's average daily net assets.
The expense reimbursement, pursuant to the undertaking, amounted to $135,735
during the period ended October 31, 2000.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Hamon,
Dreyfus pays Hamon a fee payable monthly at the annual rate of .625 of 1% of the
value of the fund's average daily net assets.
DSC retained $13,832 during the period ended October 31, 2000, from commissions
earned on sales of the fund's shares.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets for Class T shares. During the period
ended October 31, 2000, Class B, Class C and Class T shares were charged $5,925,
$5,995 and $2, respectively, pursuant to the Plan, of which $4,639, $4,441 and
$2 for Class B, Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain ser-
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
vices. 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, 2000,
Class A, Class B, Class C and Class T shares were charged $9,594, $1,975, $1,998
and $2, respectively, pursuant to the Shareholder Services Plan, of which
$7,301, $1,546, $1,480 and $2 for Class A, Class B, Class C and Class T shares,
respectively, were paid to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 2000, the fund was charged $2,606 pursuant to the transfer
agency agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $30,000 and an attendance fee of $4,000 for each meeting attended
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to April 11, 2000, each Board member who was not an
"affiliated person" as defined in the Act received from the Company an annual
fee of $1,000 and an attendance fee of $250 per meeting. The Chairman of the
Board received an additional 25% of such compensation. Subject to the fund's
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
fund's annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
NOTE 4-Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended October 31, 2000, amounted to $27,548,045 and $25,017,279,
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, 2000, there were no open forward currency
exchange contracts.
(b) At October 31, 2000, accumulated net unrealized depreciation on investments
was $974,325, consisting of $130,776 gross unrealized appreciation and
$1,105,101 gross unrealized depreciation.
At October 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
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,
2000, 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 auditing standards generally accepted
in the United States. 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, 2000 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, 2000, 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 accounting principles generally accepted
in the United States.
[Ernst & Young signature logo]
New York, New York
December 12, 2000
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $.0550 per share as a
long-term capital gain distribution paid on December 20, 1999.
The Fund
Notes
FOR MORE INFORMATION
Dreyfus Premier Greater China Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Hamon U.S. Investment-Advisors Ltd.
2701-2 One International Finance Centre
1 Harbour View Street, Central
Hong Kong
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative
or 1-800-554-4611
BY MAIL Write to:
The Dreyfus Premier Family of Funds
144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 130AR0010
Dreyfus
Premier European
Equity Fund
ANNUAL REPORT October 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
16 Financial Highlights
19 Notes to Financial Statements
26 Report of Independent Auditors
27 Important Tax Information
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 12-month period from November 1, 1999 through October 31,
2000. Inside, you' ll find valuable information about how the fund was managed
during the reporting period, including a discussion with the fund's portfolio
managers, Joanna Bowen and Kieran Gallagher.
The MSCI Europe Australasia Far East Index, a popular measure of international
stock market performance, fell almost 3% over the 12-month reporting period in
an investment environment marked by dramatic price fluctuations. International
stocks were adversely influenced by slowing economic growth in the U.S. and
Europe. Additionally, the moderating effects of the Federal Reserve Board's
interest-rate hikes during 2000 to prevent domestic inflationary pressures from
reemerging also affected global economies along with higher energy prices and a
weak euro.
Since some global equities in general provided returns well above their
historical averages during the second half of the 1990s, some investors may have
developed unrealistic expectations in equities. Recent volatility has reminded
investors of both the risks of investing and the importance of fundamental
research and investment selection.
For more information about the economy and financial markets, including
international markets, we encourage you to visit the Market Commentary section
of our website at www.dreyfus.com. Or, to speak with a customer service
representative, call us at 1-800-782-6620.
Thank you for investing in Dreyfus Premier European Equity Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 2000
DISCUSSION OF FUND PERFORMANCE
Joanna Bowen and Kieran Gallagher, Portfolio Managers
How did Dreyfus Premier European Equity Fund perform relative to its benchmark?
For the 12-month period ended October 31, 2000, the fund's total returns were
28.06% for Class A shares, 27.11% for Class B and Class C shares, 28.45% for
Class R shares and 27.11% for Class T shares.(1) For the same period, the
Financial Times Eurotop 300 Index, the fund's benchmark, produced a total return
of 1.79%.(2)
We attribute the fund's strong performance to our sector allocation strategy,
which emphasized stocks from some of the reporting period's best performing
industry groups. These included "new economy" stocks in the telecommunications,
technology and media sectors early in the reporting period, and "old economy"
stocks later in the reporting period.
What is the fund's investment approach?
Our investment approach begins at the strategic level. We establish a framework
of investment themes after considering economic data, the relative valuations of
both stocks and bonds, and the latest political and industrial developments.
These global and regional themes help us identify market sectors that we believe
have strong long-term growth prospects.
When choosing stocks within those industries, we employ the resources provided
by our in-house team of global securities analysts. Our research team strives to
identify the most compelling investment opportunities within industries that
have a positive long-term outlook. In addition, we look for companies that are
reasonably valued relative to similar companies both within Europe and overseas.
What other factors influenced the fund's performance?
Relatively slow economic growth in most European markets adversely affected the
region's stock markets during the 12-month reporting
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
period. As a result, many investors participated in U.S. markets rather than in
European ones. This contributed to a sharp decline in the euro relative to the
U.S. dollar. On one hand, adverse currency movements eroded the value of
European securities for U.S. investors. On the other hand, the inexpensive euro
boosted overseas sales, revenues and earnings for some European exporters,
especially in Germany, the region's leading producer of capital goods.
The fund was positively influenced by market trends. When the reporting period
began, telecommunications, technology and media stocks dominated European stock
markets. These companies benefited from investor enthusiasm for businesses that
they believed were likely to prosper in the "new economy." From November 1999
through the first quarter of 2000, the fund had substantial investments in these
areas and, therefore, participated in their strong performance.
During the first half of 2000, however, we decided to take profits on some of
our holdings in these areas. We reinvested the proceeds into more traditional
" old economy" companies that we believed had strong business fundamentals, but
had been largely neglected by investors. This move proved to be well timed as
telecommunications, technology and media stocks were particularly hard hit in
the market downturn that began in March.
Our focus on investment themes also positively influenced performance. For
example, outsourcing -- contracting out non-core functions to third-party
companies -- has been a particularly successful theme over the past year. Elior,
a French company that provides catering services, has grown strongly in both
domestic and international markets. Techem, the market leader in the measuring
and billing of energy and water in Germany, and French utilities group Vivendi
Environment have also benefited from the trend toward outsourcing.
Finally, we received strong returns from certain individual investments in both
" new" and "old economy" stocks. These winners included Reuters Group, an
international news and information organization, Altana, a German
pharmaceuticals and specialty chemicals manufacturer, and PinkRoccade, a Dutch
information technology company.
What is the fund's current strategy?
We have continued to search the European markets for companies that, we believe,
have strong long-term outlooks and are reasonably valued. During the reporting
period, we shifted the fund's sector allocation strategy to one that we consider
to be more closely aligned with industry group representation in the Financial
Times Eurotop 300 Index. We maintained this position through the end of the
period because we believed -- correctly, as it turned out -- that technology
stocks had risen too far, too fast. Instead, we chose to focus on companies with
strong business fundamentals in an environment in which investors were rewarding
companies that have strong and growing earnings streams and reasonable
valuations.
From a country allocation standpoint, we have added to our holdings in the
United Kingdom while reducing our exposure to German and French companies. As of
October 31, 2000, the U.K. represented our largest concentration of assets,
followed by France and The Netherlands.
November 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD
THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE
DREYFUS CORPORATION PURSUANT TO AN AGREEMENT IN EFFECT THROUGH OCTOBER 31, 2001,
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. -- REFLECTS REINVESTMENT OF NET DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. 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.
<TABLE>
<CAPTION>
Average Annual Total Returns AS OF 10/31/00
Inception From
Date 1 Year Inception
--------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
<S> <C> <C> <C>
WITH SALES CHARGE (5.75%) 12/10/98 20.68% 17.53%
WITHOUT SALES CHARGE 12/10/98 28.06% 21.25%
CLASS B SHARES
WITH REDEMPTION((+)) 12/10/98 23.11% 18.56%
WITHOUT REDEMPTION 12/10/98 27.11% 20.37%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 12/10/98 26.11% 20.37%
WITHOUT REDEMPTION 12/10/98 27.11% 20.37%
CLASS R SHARES 12/10/98 28.45% 21.58%
CLASS T SHARES
WITH SALES CHARGE (4.5%) 9/30/99 21.40% 19.55%
WITHOUT SALES CHARGE 9/30/99 27.11% 24.70%
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, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) 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
STATEMENT OF INVESTMENTS
October 31, 2000
COMMON STOCKS--97.2% Shares Value ($)
--------------------------------------------------------------------------------
CZECH REPUBLIC--1.3%
Cesky Telecom 5,700 (a) 75,016
FINLAND--1.4%
Nokia 1,930 79,464
FRANCE--13.3%
Axa 863 114,313
Elior 9,800 103,099
Lafarge 1,340 98,988
Pechiney 2,350 87,797
Rexel 1,330 92,603
Total Fina Elf 1,210 173,221
Vivendi Environnement 1,900 70,985
741,006
GERMANY--8.4%
AMB Aachener & Muenchener Beteiligungs 1,120 102,897
Altana 650 78,924
Deutsche Bank 700 57,654
Fielmann 2,100 73,999
Gehe 2,200 79,764
Roesch Medizintechnik 600 32,198
Techem 1,800 44,018
469,454
IRELAND--2.5%
Bank of Ireland 17,700 136,464
ITALY--3.4%
Parmalat Finanziaria 62,000 90,285
Telecom Italia 8,400 97,857
188,142
NETHERLANDS--12.6%
Be Semiconductor Industries 5,500 (a) 51,371
Ing Groep 1,740 119,554
Koninklijke Ahold 3,800 110,446
Koninklijke (Royal) Philips Electronics 2,522 99,170
PinkRoccade 1,260 (a) 70,076
Seagull Holding 3,000 (a) 49,418
Unit 4 630 (a) 25,944
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
NETHERLANDS (CONTINUED)
VNU 2,630 123,939
Wegener 4,400 51,931
701,849
PORTUGAL--1.3%
Portugal Telecom 8,100 72,216
SPAIN--6.0%
Altadis 6,300 94,416
Aumar-Autopistas del Mare Nostrum 5,500 83,594
Grupo Dragados 5,300 51,528
Telefonica 5,500 (a) 104,936
334,474
SWEDEN--4.2%
Gambro, Cl. A 9,400 73,820
Telefonaktiebolaget LM Ericsson 12,100 160,994
234,814
SWITZERLAND--3.8%
Roche Holding 11 100,478
UBS 820 113,585
214,063
UNITED KINGDOM--39.0%
BP Amoco 8,800 74,520
Bank of Scotland 15,500 144,395
Bodycote International 21,300 54,004
British Telecommunications 10,500 122,916
CGNU 9,500 126,900
COLT Telecom Group 900 (a) 28,686
Capital Shopping Centres 10,100 56,044
Glaxo Wellcome 5,600 160,967
Granada Media 2,000 (a) 11,619
Imperial Chemical Industries 15,400 94,155
New Dixons Group 20,600 61,183
Northern Rock 11,400 71,020
Pearson 2,663 71,337
Prudential 10,400 139,676
Reuters Group 4,200 81,660
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
SEMA Group 3,380 42,603
Shell Transport & Trading 32,700 262,699
Smith (David S) Holdings 31,000 68,267
Stagecoach Holdings 49,000 48,984
Standard Chartered 9,499 136,796
Taylor Nelson Sofres 13,900 54,373
Vodafone AirTouch 63,800 265,053
2,177,857
--------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $5,462,332) 97.2% 5,424,819
CASH AND RECEIVABLES (NET) 2.8% 157,348
NET ASSETS 100.0% 5,582,167
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 5,462,332 5,424,819
Cash 137,501
Cash denominated in foreign currencies 5,979 5,957
Receivable for investment securities sold 177,126
Dividends receivable 10,441
Net unrealized appreciation on forward
currency exchange contracts--Note 4(a) 91
Prepaid expenses 40,155
5,796,090
---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 51,753
Payable for investment securities purchased 130,420
Payable for shares of Common Stock redeemed 54
Accrued expenses 31,696
213,923
--------------------------------------------------------------------------------
NET ASSETS ($) 5,582,167
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 4,764,255
Accumulated net realized gain (loss) on investments 855,761
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (37,849)
----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 5,582,167
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 2,250,503 1,588,734 959,644 782,014 1,272
Shares Outstanding 134,186 96,123 58,059 46,388 76.537
---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 16.77 16.53 16.53 16.86 16.62
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended October 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $12,966 foreign taxes withheld at source) 88,847
Interest 5,729
TOTAL INCOME 94,576
EXPENSES:
Investment advisory fee--Note 3(a) 47,218
Registration fees 65,217
Custodian fees 36,264
Auditing fees 17,778
Distribution fees--Note 3(b) 17,483
Shareholder servicing costs--Note 3(c) 12,586
Prospectus and shareholders' reports 9,905
Legal fees 2,207
Directors' fees and expenses--Note 3(d) 1,159
Miscellaneous 7,458
TOTAL EXPENSES 217,275
Less--expense reimbursement from The Dreyfus Corporation
due to undertaking--Note 3(a) (83,720)
NET EXPENSES 133,555
INVESTMENT (LOSS) (38,979)
--------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and
foreign currency transactions 907,368
Net realized gain (loss) on forward currency
exchange contracts (12,582)
NET REALIZED GAIN (LOSS) 894,786
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions (87,760)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 807,026
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 768,047
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
---------------------------------
2000 1999(a)
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (38,979) (11,625)
Net realized gain (loss) on investments 894,786 268,342
Net unrealized appreciation
(depreciation) on investments (87,760) 49,911
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 768,047 306,628
---------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Net realized gain on investments:
Class A shares (104,119) --
Class B shares (55,604) --
Class C shares (56,553) --
Class R shares (48,619) --
Class T shares (85) --
TOTAL DIVIDENDS (264,980) --
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 4,149,753 1,081,444
Class B shares 1,084,944 502,096
Class C shares 299,290 504,146
Class R shares 60,000 507,500
Class T shares -- 1,000
Dividends reinvested:
Class A shares 104,119 --
Class B shares 55,604 --
Class C shares 56,553 --
Class R shares 48,619 --
Class T shares 85 --
(A) ON DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) THE FUND COMMENCED
SELLING CLASS A, CLASS B, CLASS C AND CLASS R SHARES.ON SEPTEMBER 30, 1999
(COMMENCEMENT OF INITIAL OFFERING) THE FUND COMMENCED SELLING CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended October 31,
---------------------------------
2000 1999(a)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($) (CONTINUED):
Cost of shares redeemed:
Class A shares (3,412,703) (2,401)
Class B shares (191,508) --
Class C shares (70,999) --
Class R shares -- (5,070)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 2,183,757 2,588,715
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,686,824 2,895,343
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 2,895,343 --
END OF PERIOD 5,582,167 2,895,343
(A) ON DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) THE FUND COMMENCED
SELLING CLASS A, CLASS B, CLASS C AND CLASS R SHARES.ON SEPTEMBER 30, 1999
(COMMENCEMENT OF INITIAL OFFERING) THE FUND COMMENCED SELLING CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
--------------------------------
2000 1999(a)
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 230,437 85,939
Shares issued for dividends reinvested 6,368 --
Shares redeemed (188,380) (178)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 48,425 85,761
--------------------------------------------------------------------------------
CLASS B
Shares sold 63,313 40,150
Shares issued for dividends reinvested 3,428 --
Shares redeemed (10,768) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 55,973 40,150
--------------------------------------------------------------------------------
CLASS C
Shares sold 18,115 40,298
Shares issued for dividends reinvested 3,486 --
Shares redeemed (3,840) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 17,761 40,298
--------------------------------------------------------------------------------
CLASS R
Shares sold 3,232 40,557
Shares issued for dividends reinvested 2,965 --
Shares redeemed -- (366)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 6,197 40,191
--------------------------------------------------------------------------------
CLASS T
Shares sold -- 71
Shares issued for dividends reinvested 5 --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 5 71
(A) ON DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) THE FUND COMMENCED
SELLING CLASS A, CLASS B, CLASS C AND CLASS R SHARES. ON SEPTEMBER 30, 1999
(COMMENCEMENT OF INITIAL OFFERING) THE FUND COMMENCED SELLING CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Class A Shares Class B Shares
------------------------------------------------------
Year Ended October 31, Year Ended October 31,
-----------------------------------------------------------
2000 1999(a) 2000 1999(a)
-------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C>
Net asset value, beginning of period 14.05 12.50 13.96 12.50
Investment Operations:
Investment (loss)--net (.08)(b) (.03)(b) (.21)(b) (.12)(b)
Net realized and unrealized
gain (loss) on investments 3.99 1.58 3.97 1.58
Total from Investment Operations 3.91 1.55 3.76 1.46
Distributions:
Dividends from net realized
gain on investments (1.19) -- (1.19) --
Net asset value, end of period 16.77 14.05 16.53 13.96
--------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 28.06 12.40(d) 27.11 11.68(d)
---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.25 2.01(d) 3.00 2.68(d)
Ratio of net investment (loss)
to average net assets (.46) (.21)(d) (1.16) (.87)(d)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation 1.60 3.29(d) 1.48 3.29(d)
Portfolio Turnover Rate 137.97 104.68(d) 137.97 104.68(d)
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 2,251 1,205 1,589 560
(A) FROM DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Class C Shares Class R Shares
-------------------------------------------------
Year Ended October 31, Year Ended October 31,
--------------------------------------------------------------
2000 1999(a) 2000 1999(a)
--------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.96 12.50 14.09 12.50
Investment Operations:
Investment income (loss)--net (.21)(b) (.12)(b) (.03)(b) .00(bc)
Net realized and unrealized gain (loss)
on investments 3.97 1.58 3.99 1.59
Total from Investment Operations 3.76 1.46 3.96 1.59
Distributions:
Dividends from net realized
gain on investments (1.19) -- (1.19) --
Net asset value, end of period 16.53 13.96 16.86 14.09
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 27.11(d) 11.68(d,e) 28.45 12.64(e)
-------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 3.00 2.68(e) 1.98 1.79(e)
Ratio of net investment income (loss)
to average net assets (1.21) (.87)(e) (.19) .03(e)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation 1.68 3.29(e) 1.68 3.28(e)
Portfolio Turnover Rate 137.97 104.68(e) 137.97 104.68(e)
--------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 960 563 782 566
(A) FROM DECEMBER 10, 1998 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(D) EXCLUSIVE OF SALES CHARGE.
(E) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Class T Shares
----------------------
Year Ended October 31,
----------------------
2000 1999(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.03 14.02
Investment Operations:
Investment (loss)--net (.21)(b) (.04)(b)
Net realized and unrealized gain (loss)
on investments 3.99 .05
Total from Investment Operations 3.78 .01
Distributions:
Dividends from net realized gain on investments (1.19) --
Net asset value, end of period 16.62 14.03
--------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 27.11 .07(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.50 .22(d)
Ratio of net investment (loss)
to average net assets (.73) (.22)(d)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation 1.71 .42(d)
Portfolio Turnover Rate 137.97 104.68(d)
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 1 1
(A) FROM SEPTEMBER 30, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
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 five series, including the fund. The fund's investment
objective is long-term capital growth. The Dreyfus Corporation ("Dreyfus")
serves as the fund's investment adviser. Dreyfus is a direct subsidiary of
Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Financial
Corporation. Newton Capital Management Limited ("Newton") serves as the fund's
sub-investment adviser. Newton is a wholly-owned subsidiary of Mellon Bank, N.A
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of Dreyfus, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue 200 million shares of $.001 par value Common Stock in
each of the following classes of shares: Class A, Class B, Class C, Class R and
Class T shares. Class A and Class T shares are subject to a sales charge imposed
at the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase, Class 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, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares of the fund:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Class A 85,832 Class C 42,940
Class B 42,940 Class R 42,907
The Fund
</TABLE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
(a) Portfolio valuation: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last sales price on the
national securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices, except for open
short positions, where the asked price is used for valuation purposes. Bid price
is used when no asked price is available. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Directors. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of exchange.
Forward currency exchange contracts are valued at the forward rate.
(b) Foreign currency transactions: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest, and foreign withholding taxes
recorded on the fund's books and the U.S. dollar equivalent of the amounts
actually received or paid. Net unrealized foreign exchange gains and losses
arise from changes in the value of assets and liabilities other than investments
in securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(c) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund received net
earnings credits of $5,729 during the period ended October 31, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
During the period ended October 31, 2000, as a result of permanent book to tax
differences, the fund increased accumulated undistributed investment loss by
$38,979, decreased accumulated net realized gain (loss) on investments by
$38,948, and decreased paid-in capital by $31. 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, 2000, the fund did not borrow
under the line of credit.
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions With Affiliates
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of .90 of 1% of the value of the
fund's average daily net assets and is payable monthly. Dreyfus has undertaken
from November 1, 1999 through October 31, 2001 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
$83,720 during the period ended October 31, 2000.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Newton, the
sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the
value of the fund's average daily net assets, computed at the following annual
rates:
Average Net Assets
0 to $100 million. . . . . . . . . . . . . . . . . .35 of 1%
In excess of $100 million to $1 billion. . . . . . .30 of 1%
In excess of $1 billion to $1.5 billion. . . . . . .26 of 1%
In excess of $1.5 billion. . . . . . . . . . . . . .20 of 1%
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
average daily net assets of Class T shares. During the period ended October 31,
2000, Class B, Class C and Class T shares were charged $10,210, $7,270 and $3,
respectively, pursuant to the Plan, of which $7,819, $5,134 and $2 for Class B,
Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding Class A, Class B, Class C and Class T
shares and providing reports and other information, and services related to the
maintenance of shareholder accounts. The distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The distributor determines the
amounts to be paid to Service Agents. During the period ended October 31, 2000,
Class A, Class B, Class C and Class T shares were charged $5,313, $3,403, $2,423
and $3, respectively, pursuant to the Shareholder Services Plan, of which
$3,929, $2,606, $1,711 and $2 for Class A, Class B, Class C and Class T shares,
respectively, were paid to DSC.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 2000, the fund was charged $1,069 pursuant to the transfer
agency agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $30,000 and an attendance fee of $4,000 for each meeting attended
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to April 11, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the Company an annual
fee of $1,000 and an attendance fee of $250 per meeting. The Chairman of the
Board received an additional 25% of such compensation. Subject to the fund's
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
fund's annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended October 31, 2000, amounted to $8,646,826 and $6,856,649,
respectively.
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the fund is obligated to buy or sell a foreign
currency at a specified rate on a
certain date in the future. With respect to sales of forward currency exchange
contracts, the fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The fund realizes a gain if the value of the
contract increases between those dates. The fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract. The following summarizes open forward currency exchange contracts at
October 31, 2000:
<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Forward Currency Exchange Contracts Amounts Cost ($) Value ($) Appreciation ($)
--------------------------------------------------------------------------------------------------------------------------------
PURCHASES:
<S> <C> <C> <C> <C>
Euro, expiring 11/2/2000 7,716 6,505 6,552 47
British Pounds,
expiring 11/1/2000 3,169 4,547 4,591 44
TOTAL 91
</TABLE>
(b) At October 31, 2000, accumulated net unrealized depreciation on investments
and forward currency exchange contracts was $37,422, consisting of $383,378
gross unrealized appreciation and $420,800 gross unrealized depreciation.
At October 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000 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 European Equity Fund at October 31, 2000, 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 accounting principles generally accepted
in the United States.
[E & Y signature logo]
New York, New York
December 12, 2000
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, 2000:
-- the total amount of taxes paid to foreign countries was $12,966
-- the total amount of income sourced from foreign countries was $88,555
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 2000 calendar year with Form 1099-DIV which will be mailed by January 31,
2001.
The Fund
NOTES
For More Information
Dreyfus Premier European Equity Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Newton Capital Management Limited
71 Queen Victoria Street
London, EC4V 4DR
England
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 223AR0010
Dreyfus Premier
International
Growth Fund
ANNUAL REPORT October 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 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
22 Notes to Financial Statements
27 Report of Independent Auditors
28 Important Tax Information
FOR MORE INFORMATION
---------------------------------------------------------------------------
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, 1999 through October
31, 2000. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Douglas A. Loeffler, CFA.
The MSCI Europe, Australasia, Far East Index, a popular measure of international
stock market performance, fell almost 3% over the 12-month reporting period in
an investment environment marked by dramatic price fluctuations. International
stocks were adversely influenced by slowing economic growth in the U.S. and
Europe. Additionally, the moderating effects of the Federal Reserve Board's
interest-rate hikes during 2000 to prevent domestic inflationary pressures from
reemerging also affected global economies along with higher energy prices and a
weak euro.
Since some global equities in general provided returns well above their
historical averages during the second half of the 1990s, some investors may have
developed unrealistic expectations in equities. Recent volatility has reminded
investors of both the risks of investing and the importance of fundamental
research and investment selection.
For more information about the economy and financial markets, including
international markets, we encourage you to visit the Market Commentary section
of our website at www.dreyfus.com. Or, to speak with a customer service
representative, call us at 1-800-782-6620.
Thank you for investing in Dreyfus Premier International Growth Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 2000
DISCUSSION OF FUND PERFORMANCE
Douglas A. Loeffler, CFA, Portfolio Manager
How did Dreyfus Premier International Growth Fund perform relative to its
benchmark?
For the 12-month period ended October 31, 2000, the fund produced total returns
of 10.70% for Class A shares, 9.72% for Class B shares, 9.45% for Class C shares
and 10.84% for Class R shares.(1) This compares with a -1.44% total return
produced by the fund's benchmark, the Morgan Stanley Capital International
(MSCI) World ex U.S. Index, for the same period.(2)
The public offering of the fund's Class T shares commenced on March 1, 2000.
From March 1, 2000 through October 31, 2000, the fund's Class T shares produced
a total return of -24.37% , evidence of the fund's volatility during the
period.(1)
We attribute the fund's strong performance relative to that of its benchmark to
our successful country, sector and individual stock selection in a generally
positive but volatile market for international growth stocks. However, a
significant portion of the fund's returns were realized in the first half of the
reporting period, with weaker results beginning in mid-March.
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
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
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 their local
markets.
The fund has typically held 60-80 stocks, broadly invested across countries and
industries, representing what we believe to be the best growth investment ideas
in the world.
What other factors influenced the fund's performance?
The fund's positive performance was particularly notable during the first half
of the reporting period, a time marked by strong global demand for growth
stocks. However, the mid-March decline in the technology rich Nasdaq had a
direct negative impact on international growth stocks and the fund as well.
Investors grew concerned over lofty stock prices within the technology sector
and about whether higher interest rates might affect stock valuations overall.
As a result, the rapid swings in the stock markets and the shifts in investor
sentiment trimmed the gains we had established earlier, reducing the fund's
overall return.
The fund also placed a significant investment emphasis in the
telecommunications, media and technology sectors, where early strength boosted
performance, but later weakness held back performance. The Japanese market
advanced early in the reporting period, then slowed, as growth stocks weakened
from December. That' s because an oversupply of stocks caused by both newly
issued shares as well as the unwinding of intercompany stock ownership put
downward pressure on prices throughout the second half of the reporting period.
European stock markets also began the reporting period with a sharp advance for
the growth stocks in which the fund invests. However, a combination of a lower
euro value and higher energy prices began to erode consumer confidence and slow
European growth through the second half of the reporting period, which
ultimately hurt the fund.
What is the fund's current strategy?
When growth stock prices declined in the latter half of the period, we
selectively added some new investments that we believed represented attractive
investment opportunities. After trimming our exposure to
the telecommunications sector, and slightly reducing our technology position,
particularly in the telecommunications equipment and semiconductor manufacturing
sectors, we increased our exposure in business services, software and selected
utilities. We have made these changes across the board, placing emphasis in each
investment on reasonableness of valuation and potential for profitability.
We are also attempting to remain geographically balanced. Japan, which remains
our largest single country exposure, is a market where, in our view, growth
stocks are reasonably priced. Continental Europe is an attractive area in terms
of its underlying economic conditions and earnings environment. We have
concentrated our European investments in manufacturers of wireless equipment and
semiconductors, particularly in smaller markets such as France, Sweden and
Finland. We are also pleased that our de-emphasis in the United Kingdom early in
the reporting period enabled us to avoid the near collapse of prices in its
financial services sector. Finally, our exposure to emerging markets remains
moderate, with investments in Latin American stocks that are closely tied to the
U.S. markets and world-class Asian technology manufacturers.
November 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
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, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF NET DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) WORLD EX U.S. INDEX IS AN UNMANAGED INDEX OF GLOBAL STOCK MARKET
PERFORMANCE EXCLUDING THE U.S., CONSISTING SOLELY OF EQUITY SECURITIES.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier
International Growth Fund Class A shares and the Morgan Stanley Capital
International World Ex U.S. Index
((+)) SOURCE: LIPPER INC.
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 U.S. INDEX. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
PERFORMANCE FOR CLASS B, CLASS C, CLASS R, AND CLASS T SHARES WILL VARY FROM THE
PERFORMANCE OF CLASS A 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 AND ALL OTHER APPLICABLE FEES AND
EXPENSES. THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD EX U.S. 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 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.
<TABLE>
<CAPTION>
Average Annual Total Returns AS OF 10/31/00
Inception From
Date 1 Year 5 Years Inception
------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
<S> <C> <C> <C> <C>
WITH SALES CHARGE (5.75%) 1/31/92 4.34% 8.81% 9.06%
WITHOUT SALES CHARGE 1/31/92 10.70% 10.10% 9.79%
CLASS B SHARES
WITH REDEMPTION((+)) 1/15/93 5.72% 8.96% 9.09%
WITHOUT REDEMPTION 1/15/93 9.72% 9.24% 9.09%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 9/5/95 8.45% 9.15% 8.92%
WITHOUT REDEMPTION 9/5/95 9.45% 9.15% 8.92%
CLASS R SHARES
9/5/95 10.84% 10.28% 10.04%
------------------------------------------------------------------------------------------------------------------------------------
Actual Aggregate Total Returns AS OF 10/31/00
Inception From
Date 1 Year 5 Years Inception
------------------------------------------------------------------------------------------------------------------------
CLASS T SHARES
WITH SALES CHARGE (4.5%) 3/1/00 -- -- (27.78%)
WITHOUT SALES CHARGE 3/1/00 -- -- (24.37%)
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, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
<TABLE>
<CAPTION>
The Fund
STATEMENT OF INVESTMENTS
October 31, 2000
COMMON STOCKS--96.8% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
BRAZIL--4.3%
<S> <C> <C>
Aracruz Celulose, ADR 26,750 401,250
Embraer-Empresa Brasileira de Aeronautica, ADR 57,500 1,663,906
Petroleo Brasileiro, ADR 16,225 (a) 471,539
Tele Norte Leste Participacoes, ADR 56,825 1,257,253
3,793,948
CANADA--1.7%
Nortel Networks 34,100 1,533,767
DENMARK--3.1%
ISS 15,475 (a) 953,253
Novo Nordisk, Cl. B 8,425 1,787,584
2,740,837
FINLAND--4.5%
Nokia, ADR 51,275 2,192,006
Perlos 86,300 1,839,261
4,031,267
FRANCE--12.5%
Accor 40,600 1,644,384
Alcatel 41,775 2,550,375
Altran Technologies 4,850 992,059
Business Objects 13,725 (a) 1,060,505
Dassault Systemes 18,175 1,386,600
Havas Advertising 72,125 1,162,973
STMicroelectronics 12,325 622,154
Total Fina Elf 12,075 1,728,636
11,147,686
GERMANY--1.2%
Epcos 14,400 (a) 1,094,320
HONG KONG--2.4%
China Mobile (Hong Kong) 290,500 (a) 1,867,374
MTR 189,425 280,545
2,147,919
ISRAEL--2.4%
Check Point Software Technologies 10,175 (a) 1,611,466
Partner Communications, ADR 88,300 (a) 529,800
2,141,266
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ITALY--6.4%
Alleanza Assicurazioni 186,000 2,490,597
Saipem 314,275 1,667,818
San Paolo--IMI 94,050 1,521,292
5,679,707
JAPAN--16.3%
Ajinomoto 157,000 1,755,878
FAST RETAILING 7,800 1,919,879
Furukawa Electric 51,000 1,341,798
MURATA MANUFACTURING 8,330 997,294
NEC 67,000 1,277,536
NIPPON TELEGRAPH AND TELEPHONE 106 964,917
PIONEER 32,000 991,521
TOKYO GAS 603,000 1,575,423
TOYODA GOSEI 30,000 1,837,100
Taiyo Yuden 18,000 688,087
Takeda Chemical Industries 18,000 1,186,414
14,535,847
LUXEMBOURG--1.5%
Societe Europeenne des Satellites 10,050 1,339,752
MEXICO--1.5%
Cemex, ADR 62,670 1,323,904
NETHERLANDS--7.7%
Heineken 24,500 1,331,389
Koninklijke (Royal) Philips Electronics, ADR 65,525 2,616,905
TNT Post 74,400 1,576,799
VNU 29,225 1,377,229
6,902,322
SINGPAORE--2.3%
Flextronics International 31,600 (a) 1,200,800
Singapore Press 62,000 886,623
2,087,423
SOUTH KOREA--1.3%
Samsung Electronics, GDR 16,000 (b) 1,184,000
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
SPAIN--3.4%
Altadis 105,100 1,575,093
Banco Santander Central Hispano 145,050 1,406,510
2,981,603
SWEDEN--4.6%
Assa Abloy, Cl. B 70,125 1,290,816
ForeningsSparbanken 121,175 1,739,557
Securitas, Cl. B 49,250 1,049,445
4,079,818
SWITZERLAND--3.6%
Swatch 1,325 1,754,283
Synthes-Stratec 2,325 1,480,932
3,235,215
TAIWAN--.8%
Taiwan Semiconductor Manufacturing, ADR 29,500 (a) 669,281
UNITED KINGDOM--15.3%
BP Amoco, ADS 27,600 1,405,875
Energis 163,250 (a) 1,394,265
Glaxo Wellcome 56,100 1,612,549
Logica 42,125 1,244,416
Logica (Fully Paid) 3,740 107,287
Marconi 97,150 1,224,533
Nycomed Amersham 124,172 1,109,986
Reckitt Benckiser 93,975 1,233,528
Sage 161,075 1,173,828
Vodafone 473,359 1,966,539
WPP 85,825 1,150,175
13,622,981
TOTAL COMMON STOCKS
(cost $84,646,432) 86,272,863
PREFERRED STOCK--1.6% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
GERMANY:
Fresenius Medical Care 16,508 700,847
MLP 5,410 730,388
TOTAL PREFERRED STOCK
(cost $1,341,294) 1,431,235
------------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--1.7% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER;
Assoc. Corp. of North America,
6.61%, 11/1/2000
(cost $1,500,000) 1,500,000 1,500,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $87,487,726) 100.1% 89,204,098
LIABILITIES, LESS CASH AND RECEIVABLES (.1%) (61,664)
NET ASSETS 100.0% 89,142,434
(A) NON-INCOME PRODUCING.
(B) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THIS SECURITY MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION,
NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT OCTOBER 31, 2000, THIS SECURITY
AMOUNTED TO $1,184,000 OR APPROXIMATELY 1.3% OF NET ASSETS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 87,487,726 89,204,098
Cash 146,693
Receivable for investment securities sold 1,434,772
Receivable for shares of Common Stock subscribed 277,650
Dividends receivable 121,274
Prepaid expenses 15,107
91,199,594
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 80,156
Payable for investment securities purchased 1,790,568
Payable for shares of Common Stock redeemed 103,163
Accrued expenses 83,273
2,057,160
--------------------------------------------------------------------------------
NET ASSETS ($) 89,142,434
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 64,520,218
Accumulated net realized gain (loss) on
investments and foreign currency transactions 22,920,802
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 1,701,414
--------------------------------------------------------------------------------
NET ASSETS ($) 89,142,434
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 74,590,101 10,047,323 2,986,648 1,502,462 15,900
Shares Outstanding 4,332,994 607,377 186,393 87,262 928
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 17.21 16.54 16.02 17.22 17.13
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Year Ended October 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $127,142 foreign taxes witheld at source) 854,770
Interest 363,037
TOTAL INCOME 1,217,807
EXPENSES:
Management fee--Note 3(a) 766,552
Shareholder servicing costs--Note 3(c) 352,084
Distribution fees--Note 3(b) 146,364
Custodian fees 121,151
Professional fees 60,473
Registration fees 51,098
Prospectus and shareholders' reports 29,758
Directors' fees and expenses--Note 3(d) 18,766
Miscellaneous 11,886
TOTAL EXPENSES 1,558,132
INVESTMENT (LOSS) (340,325)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and
foreign currency transactions 23,472,304
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (10,750,459)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 12,721,845
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 12,381,520
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
-----------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (340,325) (167,942)
Net realized gain (loss) on investments 23,472,304 8,656,131
Net unrealized appreciation (depreciation)
on investments (10,750,459) 7,868,350
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 12,381,520 16,356,539
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares -- (62,191)
Class R shares -- (300)
Net realized gain on investments:
Class A shares (2,226,325) --
Class B shares (869,983) --
Class C shares (39,906) --
Class R shares (3,736) --
TOTAL DIVIDENDS (3,139,950) (62,491)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 378,973,230 97,018,471
Class B shares 16,634,823 8,889,496
Class C shares 48,923,680 7,676,981
Class R shares 1,818,995 44,552
Class T shares 18,000 --
Year Ended October 31,
-----------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($) (CONTINUED):
Dividends reinvested:
Class A shares 2,149,731 58,864
Class B shares 825,027 --
Class C shares 36,703 --
Class R shares 3,736 295
Cost of shares redeemed:
Class A shares (370,244,932) (89,448,790)
Class B shares (36,461,729) (42,381,559)
Class C shares (47,403,169) (7,274,598)
Class R shares (191,536) (11,506)
Class T shares (1,000) --
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (4,918,441) (25,427,794)
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,323,129 (9,133,746)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 84,819,305 93,953,051
END OF PERIOD 89,142,434 84,819,305
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended October 31,
-----------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(B)
Shares sold 19,388,596 6,604,528
Shares issued for dividends reinvested 113,923 4,348
Shares redeemed (18,835,117) (6,067,447)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 667,402 541,429
--------------------------------------------------------------------------------
CLASS B(B)
Shares sold 888,591 634,452
Shares issued for dividends reinvested 45,157 --
Shares redeemed (1,920,712) (3,029,148)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (986,964) (2,394,696)
--------------------------------------------------------------------------------
CLASS C
Shares sold 2,698,297 552,113
Shares issued for dividends reinvested 2,067 --
Shares redeemed (2,577,677) (519,809)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 122,687 32,304
--------------------------------------------------------------------------------
CLASS R
Shares sold 90,734 3,155
Shares issued for dividends reinvested 198 22
Shares redeemed (9,433) (827)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 81,499 2,350
--------------------------------------------------------------------------------
CLASS T
Shares sold 982 --
Shares redeemed (54) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 928 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000
FOR CLASS T SHARES.
(B) DURING THE PERIOD ENDED OCTOBER 31, 2000, 1,102,222 CLASS B SHARES
REPRESENTING $21,340,470 WERE AUTOMATICALLY CONVERTED TO 1,064,629 CLASS A
SHARES AND DURING THE PERIOD ENDED OCTOBER 31, 1999, 1,484,026 CLASS B SHARES
REPRESENTING $20,911,825 WERE AUTOMATICALLY CONVERTED TO 1,444,292 CLASS A
SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended October 31,
-----------------------------------------------------------------------
CLASS A SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period 16.07 13.33 16.45 16.59 16.10
Investment Operations:
Investment income (loss)--net (.03)(a) .00(a,b) .26 .00(b) .14
Net realized and unrealized gain
(loss) on investments 1.79 2.76 (.86) 2.24 1.44
Total from Investment Operations 1.76 2.76 (.60) 2.24 1.58
Distributions:
Dividends from investment income--net -- (.02) -- (.17) (.25)
Dividends from net realized
gain on investments (.62) -- (2.52) (2.21) (.84)
Total Distributions (.62) (.02) (2.52) (2.38) (1.09)
Net asset value, end of period 17.21 16.07 13.33 16.45 16.59
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 10.70 20.74 (4.50) 15.00 10.21
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.37 1.42 1.27 1.30 1.31
Ratio of interest expense
to average net assets -- -- .08 -- --
Ratio of net investment income
(loss) to average net assets (.15) (.01) .55 .00(d) .76
Portfolio Turnover Rate 221.46 221.94 193.76 161.62 176.17
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 74,590 58,908 41,637 59,030 66,907
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) EXCLUSIVE OF SALES CHARGE.
(D) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
-----------------------------------------------------------------------
CLASS B SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 15.59 13.00 16.22 16.37 15.90
Investment Operations:
Investment income (loss)--net (.20)(a) (.06)(a) (.03)(a) (.14) .00(b
Net realized and unrealized gain
(loss) on investments 1.77 2.65 (.67) 2.24 1.44
Total from Investment Operations 1.57 2.59 (.70) 2.10 1.44
Distributions:
Dividends from investment income--net -- -- -- (.04) (.13)
Dividends from net realized
gain on investments (.62) -- (2.52) (2.21) (.84)
Total Distributions (.62) -- (2.52) (2.25) (.97)
Net asset value, end of period 16.54 15.59 13.00 16.22 16.37
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(C) 9.72 19.83 (5.22) 14.14 9.36
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 2.18 2.18 2.04 2.05 2.06
Ratio of interest expense
to average net assets -- -- .08 -- --
Ratio of net investment income (loss)
to average net assets (1.13) (.41) (.20) (.76) .01
Portfolio Turnover Rate 221.46 221.94 193.76 161.62 176.17
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 10,047 24,853 51,873 66,781 71,983
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended October 31,
-----------------------------------------------------------------------
CLASS C SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 15.16 12.66 15.87 16.20 15.90
Investment Operations:
Investment income (loss)--net (.17)(a) (.14)(a) (.03)(a) (.12)(a) .28
Net realized and unrealized gain
(loss) on investments 1.65 2.64 (.66) 2.18 1.14
Total from Investment Operations 1.48 2.50 (.69) 2.06 1.42
Distributions:
Dividends from investment income--net -- -- -- (.18) (.28)
Dividends from net realized
gain on investments (.62) -- (2.52) (2.21) (.84)
Total Distributions (.62) -- (2.52) (2.39) (1.12)
Net asset value, end of period 16.02 15.16 12.66 15.87 16.20
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) 9.45 19.75 (5.34) 14.17 9.36
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 2.14 2.22 2.04 2.10 1.90
Ratio of interest expense to
average net assets -- -- .08 .01 --
Ratio of investment (loss)
to average net assets (.89) (.97) (.19) (.73) (.19)
Portfolio Turnover Rate 221.46 221.94 193.76 161.62 176.17
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 2,987 966 397 291 53
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended October 31,
-----------------------------------------------------------------------
CLASS R SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 16.05 13.32 16.43 16.59 16.11
Investment Operations:
Investment income (loss)--net (.02)(a) .02(a) .33 .17 .26
Net realized and unrealized gain
(loss) on investments 1.81 2.77 (.92) 2.10 1.35
Total from Investment Operations 1.79 2.79 (.59) 2.27 1.61
Distributions:
Dividends from investment income--net -- (.06) -- (.22) (.29)
Dividends from net realized
gain on investments (.62) -- (2.52) (2.21) (.84)
Total Distributions (.62) (.06) (2.52) (2.43) (1.13)
Net asset value, end of period 17.22 16.05 13.32 16.43 16.59
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 10.84 21.04 (4.44) 15.21 10.45
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.20 1.24 1.08 1.09 .87
Ratio of interest expense
to average net assets -- -- .08 .01 --
Ratio of net investment income
(loss) to average net assets (.13) .15 .70 .21 .94
Portfolio Turnover Rate 221.46 221.94 193.76 161.62 176.17
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,502 92 45 80 4
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended
CLASS T SHARES October 31, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 22.65
Investment Operations:
Investment (loss) (.06)(b)
Net realized and unrealized gain
(loss) on investments (5.46)
Total from Investment Operations (5.52)
Net asset value, end of period 17.13
--------------------------------------------------------------------------------
TOTAL RETURN (%)(C) (24.37)(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.16(d)
Ratio of investment (loss)
to average net assets (.36)(d)
Portfolio Turnover Rate 221.46
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 16
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier International Growth Fund (the "fund" ) is a separate
non-diversified portfolio of Dreyfus Premier International Funds, Inc. (the
" Company" ) which is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open-end management investment company and operates
as a series company currently offering five series including the fund. The
fund's investment objective is to maximize capital growth. The Dreyfus
Corporation ("Manager") serves as the fund's investment adviser. The Manager is
a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary of
Mellon Financial Corporation.
On July 12, 1999, the Board of Directors approved the addition of Class T
shares, which became effective March 1, 2000.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue 300 million shares of $.001 par value Common Stock in
each of the following classes of shares: Class A, Class B, Class C, Class R and
Class T shares. Class A and Class T shares are subject to a sales charge imposed
at the time of purchase. Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase (Class B shares automatically convert to Class A shares after six
years) , Class C shares are subject to a CDSC imposed on Class C shares redeemed
within one year of purchase and Class R shares are sold at net asset value per
share only to institutional investors. Other differences between the classes
include the services offered to and the expenses borne by each class and certain
voting rights.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, 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 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, 2000, as a result of permanent book to tax
differences, the fund increased accumulated undistributed investment income-net
by $340,325 and increased accumulated net realized gain (loss) on investments by
$55,753 and decreased paid-in capital by $396,078. 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, 2000, the fund did not borrow under
the line of credit.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .75 of 1% of the value of the fund's average
daily net assets and is payable monthly.
DSC retained $8,957 during the period ended October 31, 2000 from commissions
earned on sales of the fund's shares.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
October 31, 2000, Class B, Class C and Class T shares were charged $131,936,
$14,408 and $20, respectively, pursuant to the Plan, of which $71,087, $11,064
and $20 for Class B, Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The distributor determines the amounts to be paid to Service
Agents. During the period ended October 31, 2000, Class A, Class B, Class C and
Class T shares were charged $205,435, $43,979, $4,803 and $20, respectively,
pursuant to the Shareholder Services Plan, of which $143,714, $23,696, $3,688
and $20 for Class A, Class B, Class C and Class T shares, respectively, were
paid to DSC.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 2000, the fund was charged $66,535 pursuant to the transfer
agency agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $30,000 and an attendance fee of $4,000 for each meeting attended
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to April 11, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the fund an annual fee
of $1,000 and an attendance fee of $250 per meeting. The Chairman of the Board
received an additional 25% of such compensation. Subject to the fund's Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the Company's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities during the period ended October 31, 2000, amounted to
$208,366,295 and $209,569,413, respectively.
At October 31, 2000, accumulated net unrealized appreciation on investments was
$1,716,372, consisting of $7,195,965 gross unrealized appreciation and
$5,479,593 gross unrealized depreciation.
At October 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000 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, 2000, 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 accounting principles generally
accepted in the United States.
[Ernst & Young signature logo]
New York, New York
December 12, 2000
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, 2000:
-- the total amount of taxes paid to foreign countries was $127,142
-- the total amount of income sourced from foreign countries was $892,007
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 2000 calendar year with Form 1099-DIV which will be mailed by January 31,
2001.
For Federal tax purposes, the fund hereby designates $.6240 per share as a
long-term capital gain distribution paid on December 13, 1999.
For More Information
Dreyfus Premier International Growth Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 092AR0010
Dreyfus Premier
Japan Fund
ANNUAL REPORT October 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 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
19 Notes to Financial Statements
26 Report of Independent Auditors
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier
Japan Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Japan Fund,
covering the 12-month period from November 1, 1999 through October 31, 2000.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Miki Sugimoto.
The MSCI Europe, Australasia, Far East Index, a popular measure of international
stock market performance, fell almost 3% over the 12-month reporting period in
an investment environment marked by dramatic price fluctuations. International
stocks were adversely influenced by slowing economic growth in the U.S. and
Europe. Additionally, the moderating effects of the Federal Reserve Board's
interest-rate hikes during 2000 to prevent domestic inflationary pressures from
reemerging also affected global economies along with higher energy prices and a
weak euro.
Since some global equities in general provided returns well above their
historical averages during the second half of the 1990s, some investors may have
developed unrealistic expectations in equities. Recent volatility has reminded
investors of both the risks of investing and the importance of fundamental
research and investment selection.
For more information about the economy and financial markets, including
international markets, we encourage you to visit the Market Commentary section
of our website at www.dreyfus.com. Or, to speak with a customer service
representative, call us at 1-800-782-6620.
Thank you for investing in Dreyfus Premier Japan Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 2000
DISCUSSION OF FUND PERFORMANCE
Miki Sugimoto, Portfolio Manager
How did Dreyfus Premier Japan Fund perform relative to its benchmark?
Since its inception on December 15, 1999 through the end of the reporting period
on October 31, 2000, Dreyfus Premier Japan Fund produced total returns of -1.12%
for Class A shares, -1.84% for Class B shares, -1.84% for Class C shares, -0.96%
for Class R shares, and -1.36% for Class T shares.(1) In comparison, the fund's
benchmark, the MSCI Japan Index (the "Index" ), produced a total return of
-20.19% from December 31, 1999 through October 31, 2000.(2)
We attribute the fund's performance primarily to an unsettled economic
environment, which led to heightened volatility in the Japanese equities market.
The fund benefited from our theme-based investment approach, which led us to
focus the fund's assets on several industry sectors that performed better than
average.
What is the fund's investment approach?
The fund invests primarily in stocks of Japanese companies with a wide range of
market capitalizations, including small-, mid- and large-cap companies. We
generally invest 60% or more of the fund's assets in Japanese companies with
market caps of at least $1.5 billion at the time of investment.
Our investment selection process focuses on themes that we believe are likely to
drive global economic growth, such as the impact of new technologies and the
globalization of industries and brands. These themes help us identify industries
and market sectors that we believe offer above-average opportunities for
long-term growth.
Within selected markets and industries, we seek attractively priced companies
that appear to have substantial competitive advantages over their peers. We use
fundamental analysis in making individual purchasing decisions, and we generally
hold a security until the company's
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
prospects decline, its stock becomes fully valued by the market, or the theme
underlying our investment changes. Since many of the fund's securities are
denominated in yen, we may occasionally engage in currency hedging to protect
against depreciation versus the U.S. dollar.
What other factors influenced the fund's performance?
The fund benefited from continuing slow improvement of the Japanese economy in
the wake of the 1998 recession. Recovery trends established early in 1999 held
steady throughout the reporting period. Many Japanese companies benefited from a
healthier regional economy and internal restructurings undertaken in response to
the challenges of recession.
The fund took advantage of these trends during the period by focusing on
restructuring as a key theme. We looked for undervalued industries in which we
believed organizational changes were likely to produce heightened productivity
and sharpened competitiveness. Among the most promising opportunities we
identified was the Japanese non-bank financial industry, including credit card
companies, such as ACOM, and short-term consumer lenders, such as Credit Saison.
We also identified attractive investment opportunities based on this
restructuring theme in the industrial sector, such as KOMORI and Nissan Motor.
Other industries that supported the fund's positive performance included media
and technology companies, where we maintained our value-conscious investment
approach. By avoiding the most highly valued technology stocks, we limited the
fund's losses during the technology correction that occurred in March and April
2000. In late April and early May, with global economies showing signs of
slowing, we reduced our export-oriented technology holdings. Instead, we shifted
assets into more value-conscious and less economically sensitive industries. In
particular, we increased our holdings of reasonably priced Japanese
pharmaceutical companies, such as DAIICHI Pharmaceutical and Nippon Shinyaku,
which performed well through the rest of the
period. Among our remaining technology stocks, we concentrated on domestic
Japanese internet infrastructure companies, such as ITOCHU TECHNO-SCIENCE,
rather than export-oriented semiconductor and equipment makers.
What is the fund's current strategy?
As of the end of the reporting period, the Japanese economy continues to show
signs of continued, albeit slow, recovery. The Japanese yen remains relatively
stable in relation to the strong U.S. dollar. However, domestic Japanese
consumption remains flat and global demand shows signs of slowing growth,
creating challenges for Japanese exporters. Therefore, we continue to look for
investment opportunities among companies positioned to benefit from
restructuring, particularly those focused on the domestic Japanese market. We
hold relatively large positions among non-bank financials (approximately 14% of
the fund, versus approximately 2% of the Index) and pharmaceuticals
(approximately 12% of the fund, versus approximately 4.6% of the Index). We
believe these domestically focused sectors remain attractively valued while
offering strong prospects for stable, long-term growth.
November 15, 2000
(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, 2001,
AT WHICH TIME IT MAY BE EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT
BEEN ABSORBED, THE FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF NET DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) JAPAN INDEX IS A MARKET CAPITALIZATION INDEX OF JAPANESE COMPANIES BASED
ON MSCI-SELECTED CRITERIA.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier Japan
Fund Class A shares, Class B shares, Class C shares, Class R shares and Class T
shares and the Morgan Stanley Capital International Japan Index
((+)) SOURCE: LIPPER 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, CLASS R AND CLASS T SHARES OF DREYFUS PREMIER JAPAN FUND ON 12/15/99
(INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE MORGAN STANLEY CAPITAL
INTERNATIONAL JAPAN INDEX ON THAT DATE. FOR COMPARATIVE PURPOSES, THE VALUE OF
THE INDEX ON 11/30/99 IS USED AS THE BEGINNING VALUE ON 12/15/99. 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 AND CLASS T 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 JAPAN
INDEX IS A MARKET CAPITALIZATION INDEX OF JAPANESE COMPANIES INTENDED TO
REPLICATE THE INDUSTRY COMPOSITION OF THE LOCAL MARKET. THE MSCI SELECTED STOCKS
INCLUDES A REPRESENTATIVE SAMPLING OF LARGE, MEDIUM AND SMALL CAPITALIZATION
WEIGHTED STOCKS, TAKING EACH STOCK'S LIQUIDITY INTO ACCOUNT. THE RETURNS OF THE
INDEX INCLUDES NET DIVIDENDS REINVESTED.
THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. FURTHER
INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF
APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS
AND ELSEWHERE IN THIS REPORT.
<TABLE>
<CAPTION>
Actual Aggregate Total Returns AS OF 10/31/00
Inception From
Date Inception
------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
<S> <C> <C>
WITH SALES CHARGE (5.75%) 12/15/99 (6.79%)
WITHOUT REDEMPTION 12/15/99 (1.12%)
CLASS B SHARES
WITH REDEMPTION ((+)) 12/15/99 (5.77%)
WITHOUT REDEMPTION 12/15/99 (1.84%)
CLASS C SHARES
WITH REDEMPTION ((+)(+)) 12/15/99 (2.82%)
WITHOUT REDEMPTION 12/15/99 (1.84%)
CLASS R SHARES 12/15/99 (0.96%)
CLASS T SHARES
WITH SALES CHARGE (4.5%) 12/15/99 (5.81%)
WITHOUT SALES CHARGE 12/15/99 (1.36%)
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, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
<TABLE>
<CAPTION>
The Fund
STATEMENT OF INVESTMENTS
October 31, 2000
COMMON STOCKS--97.6% Shares Value ($)
----------------------------------------------------------------------------------------------
COMMUNICATIONS--5.7%
<S> <C> <C>
NIPPON TELEGRAPH AND TELEPHONE 8 72,824
NTT DoCoMo 2 49,319
122,143
CONSUMER ELECTRONICS--7.9%
ALPS ELECTRIC 2,000 39,602
Matsushita-Kotobuki Electronics Industries 3,000 58,991
OLYMPUS OPTICAL 5,000 69,120
167,713
ELECTRONIC TECHNOLOGY--2.8%
MURATA MANUFACTURING 500 59,862
FINANCIAL--19.9%
ACOM 1,100 89,041
AIFUL 800 63,070
Bank of Yokohama 9,000 44,140
Credit Saison 4,200 88,940
Dai-Tokyo Fire & Marine Insurance 20,000 58,486
Promise 800 60,063
Sakura Bank 3,000 21,864
425,604
MACHINERY--7.6%
GLORY 4,000 66,737
KOMORI 3,000 35,834
SANKYO 1,800 59,733
162,304
MINING & METALS--3.5%
KANEKA 4,000 38,869
Sumitomo Electric Industries 2,000 36,944
75,813
PHARMACEUTICAL--13.3%
DAIICHI PHARMACEUTICAL 3,000 85,255
KISSEI PHARMACEUTICAL 3,000 54,975
KYORIN Pharmaceutical 2,000 65,820
Nippon Shinyaku 8,000 78,471
284,521
REAL ESTATE--2.5%
Mitsubishi Estate 5,000 53,170
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------
RETAIL--14.0%
ADERANS 1,900 69,496
ITO-YOKADO 2,000 90,388
KIRIN BREWERY 4,000 41,729
NISSAN MOTOR 7,000 (a) 48,063
OTSUKA KAGU 600 48,953
298,629
SERVICES--20.4%
Aoi Advertising Promotion 300 2,778
DATA COMMUNICATION SYSTEM 600 36,412
FUJITSU SUPPORT AND SERVICE 800 97,245
ITOCHU TECHNO-SCIENCE 300 71,339
KONAMI 600 50,603
MEITEC 900 37,787
NAMCO LIMITED 2,000 51,703
Net One Systems 3 89,105
436,972
--------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $2,139,183) 97.6% 2,086,731
CASH AND RECEIVABLES (NET) 2.4% 51,438
NET ASSETS 100.0% 2,138,169
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
Cost Value
------------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 2,139,183 2,086,731
Cash denominated in foreign currencies 34,706 34,848
Receivable for investment securities sold 123,254
Dividends receivable 5,611
Prepaid expenses 7
Due from The Dreyfus Corporation 32,151
2,282,602
--------------------------------------------------------------------------------
LIABILITIES ($):
Cash overdraft due to Custodian 52,183
Payable for investment securities purchased 60,246
Accrued expenses and other liabilities 32,004
144,433
--------------------------------------------------------------------------------
NET ASSETS ($) 2,138,169
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 2,123,747
Accumulated net realized gain (loss) on investments and
foreign currency transactions 66,951
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (52,529)
--------------------------------------------------------------------------------
NET ASSETS ($) 2,138,169
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Assets ($) 507,137 404,261 397,094 435,160 394,517
Shares Outstanding 41,049 32,941 32,357 35,143 32,000
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 12.35 12.27 12.27 12.38 12.33
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
From December 15, 1999 (commencement of operations) to October 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $2,102 foreign taxes withheld at source) 11,915
Interest 5,849
TOTAL INCOME 17,764
EXPENSES:
Investment advisory fee-Note 3(a) 20,591
Registration fees 60,796
Legal fees 43,446
Auditing fees 26,312
Custodian fees 7,423
Distribution fees-Note 3(b) 6,788
Prospectus and shareholders' reports 5,754
Shareholder servicing costs-Note 3(c) 4,741
Directors' fees and expenses-Note 3(d) 445
Miscellaneous 5,723
TOTAL EXPENSES 182,019
Less--expense reimbursement from The Dreyfus Corporation
due to undertaking -Note 3 (a) (129,925)
NET EXPENSES 52,094
INVESTMENT (LOSS) (34,330)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 84,293
Net realized gain (loss) on forward currency exchange contracts (42,185)
NET REALIZED GAIN (LOSS) 42,108
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (52,529)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (10,421)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (44,751)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended
October 31, 2000(a)
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (34,330)
Net realized gain (loss) on investments 42,108
Net unrealized appreciation (depreciation) on investments (52,529)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (44,751)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 1,871,722
Class B shares 417,399
Class C shares 417,710
Class R shares 450,000
Class T shares 400,000
Cost of shares redeemed:
Class A shares (1,355,723)
Class B shares (4,919)
Class C shares (13,269)
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 2,182,920
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,138,169
--------------------------------------------------------------------------------
NET ASSETS ($)
Beginning of Period -
END OF PERIOD 2,138,169
(A) FROM DECEMBER 15, 1999 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 2000.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended
October 31, 2000(a)
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(B)
Shares sold 142,815
Shares redeemed (101,766)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 41,049
--------------------------------------------------------------------------------
CLASS B(B)
Shares sold 33,305
Shares redeemed (364)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 32,941
--------------------------------------------------------------------------------
CLASS C
Shares sold 33,257
Shares redeemed (900)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 32,357
--------------------------------------------------------------------------------
CLASS R
SHARES SOLD 35,143
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 32,000
(A) FROM DECEMBER 15, 1999 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 2000.
B DURING THE PERIOD ENDED OCTOBER 31, 2000, 130 CLASS B SHARES REPRESENTING
$1,817 WERE AUTOMATICALLY CONVERTED TO 130 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
period indicated. All information (except portfolio turnover rate) reflects
financial results for a single fund share. Total return shows how much your
investment in the fund would have increased (or decreased) during the period,
assuming you had reinvested all dividends and distributions. These figures have
been derived from the fund's financial statements.
Year Ended
CLASS A SHARES October 31, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss) (.17)(b)
Net realized and unrealized gain (loss) on investments .02
Total from Investment Operations (.15)
Net asset value, end of period 12.35
--------------------------------------------------------------------------------
TOTAL RETURN (%)(C) (1.12)(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.00(d)
Ratio of net investment (loss) to average net assets (1.24)(d)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 5.48(d)
Portfolio Turnover Rate 327.77(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 507
(A) FROM DECEMBER 15, 1999 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 2000.
(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
CLASS B SHARES October 31, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss) (.26)(b)
Net realized and unrealized gain (loss) on investments .03
Total from Investment Operations (.23)
Net asset value, end of period 12.27
--------------------------------------------------------------------------------
TOTAL RETURN (%)(C) (1.84)(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.64(d)
Ratio of net investment (loss) to average net assets (1.88)(d)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 5.59(d)
Portfolio Turnover Rate 327.77(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 404
(A) FROM DECEMBER 15, 1999 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended
CLASS C SHARES October 31, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss) (.26)(b)
Net realized and unrealized gain (loss) on investments .03
Total from Investment Operations (.23)
Net asset value, end of period 12.27
--------------------------------------------------------------------------------
TOTAL RETURN (%)(C) (1.84)(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.64(d)
Ratio of net investment (loss) to average net assets (1.88)(d)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 5.58(d)
Portfolio Turnover Rate 327.77(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 397
(A) FROM DECEMBER 15, 1999 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 2000.
(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
CLASS R SHARES October 31, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss) (.14)(b)
Net realized and unrealized gain (loss) on investments .02
Total from Investment Operations (.12)
Net asset value, end of period 12.38
--------------------------------------------------------------------------------
TOTAL RETURN (%) (.96)(c)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.75(c)
Ratio of net investment (loss) to average net assets (.99)(c)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 5.56(c)
Portfolio Turnover Rate 327.77(c)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 435
(A) FROM DECEMBER 15, 1999 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended
CLASS T SHARES October 31, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 12.50
Investment Operations:
Investment (loss) (.19)(b)
Net realized and unrealized gain (loss) on investments .02
Total from Investment Operations (.17)
Net asset value, end of period 12.33
--------------------------------------------------------------------------------
TOTAL RETURN (%)(C) (1.36)(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.18(d)
Ratio of net investment (loss) to average net assets (1.42)(d)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation 5.57(d)
Portfolio Turnover Rate 327.77(d)
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 395
(A) FROM DECEMBER 15, 1999 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Japan Fund (the "fund") is a separate diversified series of
Dreyfus Premier International Funds, Inc. (the "Company") which is registered
under the Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company and operates as a series company currently
offering five series including the fund, which commenced operations on December
15, 1999. The fund's investment objective is long-term capital growth. The
Dreyfus Corporation ("Dreyfus") serves as the fund's investment adviser. Dreyfus
is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned subsidiary
of Mellon Financial Corporation. Newton Capital Management Limited ("Newton")
serves as the fund's sub-investment adviser. Newton is wholly-owned subsidiary
of Mellon Bank, N.A.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC), a wholly-owned
subsidiary of Dreyfus, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue 200 million shares of $.001 par value Common Stock in
each of the following classes of shares: Class A, Class B, Class C, Class R and
Class T shares. Class A and Class T shares are subject to a sales charge imposed
at the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase (Class B shares automatically convert to Class A shares after six
years) . Class C shares are subject to a CDSC imposed on Class C shares redeemed
within one year of purchase and Class R shares are sold at net asset value per
share only to institutional investors. Other differences between the classes
include the services offered to and the expenses borne by each class and certain
voting rights.
<TABLE>
<CAPTION>
As of October 31, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares of the fund:
<S> <C> <C> <C>
Class A 32,000 Class R 32,000
Class B 32,000 Class T 32,000
Class C 32,000
The Fund
</TABLE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States, which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.
(a) Portfolio valuation: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities exchange
on which such securities are primarily traded or at the last sales price on the
national securities market. Securities not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices, except for open
short positions, where the asked price is used for valuation purposes. Bid price
is used when no asked price is available. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Directors. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of exchange.
Forward currency exchange contracts are valued at the forward rate.
(b) Foreign currency transactions: The fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amounts of
dividends, interest, and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities, resulting from changes in
exchange rates. Such gains and losses are included with net realized and
unrealized gain or loss on investments.
(c) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund received net
earnings credits of $5,749 during the period ended October 31, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
During the period ended October 31, 2000, as a result of permanent book to tax
differences, the fund increased accumulated undistributed investment income-net
by $34,330 accumulated net realized gain (loss) on investments by $24,843 and
decreased paid-in capital by $59,173. Net assets were not effected by this
reclassification.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 2000, the fund did not borrow
under the line of credit.
NOTE 3--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions With Affiliates:
(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment
advisory fee is computed at the annual rate of 1% of the value of the fund's
average daily net assets and is payable monthly. Dreyfus has undertaken from
December 15, 1999 through October 31, 2001 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
$129,925 during the period ended October 31, 2000.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Newton, the
sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the
value of the fund's average daily net assets, computed at the following annual
rates:
Average Net Assets
0 to $100 million. . . . . . . . . . . . . . . . . .35 of 1%
$100 million to $1 billion . . . . . . . . . . . . .30 of 1%
$1 billion to $1.5 billion . . . . . . . . . . . . .26 of 1%
In excess of $1.5 billion. . . . . . . . . . . . . .20 of 1%
DSC retained $368 during the period ended October 31, 2000 from commissions
earned on sales of fund shares.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
average daily net assets of Class T. During the period ended October 31, 2000,
Class B, Class C and Class T shares were charged $2,910, $2,915 and $963,
respectively, pursuant to the Plan, of which $2,266, $2,273 and $748 for Class
B, Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding Class A, Class B, Class C and Class T
shares and providing reports and other information, and services related to the
maintenance of shareholder accounts. The distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The distributor determines the
amounts to be paid to Service Agents. During the period ended October 31, 2000,
Class A, Class B, Class C and Class T shares were charged $1,218, $970, $972,
and $963, respectively, pursuant to the Shareholder Services Plan, of which
$987, $755, $758 and $748 for Class A, Class B, Class C and Class T shares,
respectively, were paid to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 2000, the fund was charged $434 pursuant to the transfer
agency agreement.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $30,000 and an attendance fee of $4,000 for each meeting attended
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to April 11, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the Company an annual
fee of $1,000 and an attendance fee of $250 per meeting. The Chairman of the
Board received an additional 25% of such compensation. Subject to the Company's
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended October 31, 2000, amounted to $9,396,075 and $7,338,068,
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 for-
ward 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, 2000 there were no open
forward currency exchange contracts.
(b) At October 31, 2000, accumulated net unrealized depreciation on investments
was $52,452, consisting of $111,516 gross unrealized appreciation and $163,968
gross unrealized depreciation.
At October 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
The Fund
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus Premier Japan Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Premier Japan Fund (one of the series
constituting Dreyfus Premier International Funds, Inc.) as of October 31, 2000,
and the related statements of operations and changes in net assets and financial
highlights for the period from December 15, 1999 (commencement of operations) to
October 31, 2000. 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 auditing standards generally accepted
in the United States. 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, 2000 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 Japan Fund at October 31, 2000, the results of its operations,
the changes in net assets and the financial highlights for the period from
December 15, 1999 to October 31, 2000, in conformity with accounting principles
generally accepted in the United States.
[Ernst & Young signature logo]
New York, New York
December 12, 2000
NOTES
For More Information
Dreyfus Premier Japan Fund
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Newton Capital Management Limited
71 Queen Victoria Street
London, EC4V 4DR
England
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New ork, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 296AR0010
Dreyfus Premier
Global Allocation
Fund
ANNUAL REPORT October 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
7 Fund Performance
9 Statement of Investments
17 Statement of Financial Futures
18 Statement of Assets and Liabilities
19 Statement of Operations
20 Statement of Changes in Net Assets
23 Financial Highlights
28 Notes to Financial Statements
35 Report of Independent Auditors
36 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, 1999 through
October 31, 2000. Inside, you'll find valuable information about how the fund
was managed during the reporting period, including a discussion with the fund's
portfolio manager, Lex C. Huberts.
In the 12-month reporting period, the MSCI World Index rose approximately 1%,
while the Salomon Smith Barney World Government Bond Index fell more than 5%.
International stocks and bonds were adversely influenced by slowing economic
growth in the U.S. and Europe. Additionally, the moderating effects of the
Federal Reserve Board's interest-rate hikes during 2000 to prevent domestic
inflationary pressures from reemerging also affected global economies, along
with higher energy prices and a weak euro.
Since the investment environment in general provided returns well above their
historical averages during the second half of the 1990s, some investors may have
developed unrealistic expectations. Recent volatility has reminded investors of
both the risks of investing and the importance of fundamental research and
investment selection.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
November 15, 2000
DISCUSSION OF FUND PERFORMANCE
Lex C. Huberts, Portfolio Manager
How did Dreyfus Premier Global Allocation Fund perform relative to its
benchmark?
For the 12-month period ended October 31, 2000, the fund produced a total return
of -0.67% for Class A shares, -1.43% for Class B and Class C shares and -0.41%
for Class R shares. From its inception on March 1, 2000 through October 31,
2000, the fund's Class T shares produced a total return of -3.88%.(1) This
compares with a -0.21% 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 (unhedged) and 10% cash (as measured by
the Salomon Smith Barney Three Month CD Index).(2)
Our asset allocation strategy, which de-emphasized stock investments early in
the reporting period, held back the fund's performance as stocks continued to
advance. However, after mid-March, stock markets began to decline and our
underemphasis on stocks served to help performance.
What is the fund's investment approach?
The fund seeks to take advantage of discrepancies in price that, from time to
time, occur in global financial markets. From a starting allocation of 60%
exposure to stocks, we analyze the relative value of stocks versus bonds versus
cash from the perspective of a local investor in each of the markets we follow.
If we believe, based on the fundamental economic outlook, that stocks are
inexpensive relative to bonds, we increase our stock allocation to over 60%.
Over time, the relationship in price should return to its appropriate level, and
stock prices will rise. Naturally, the converse is also true. If we believe
stocks are 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 com-
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
parison to stocks in other markets. In each country's market, we purchase
individual stocks as well as instruments that represent the performance of the
market as a whole.
Our currency hedging strategy seeks to add value by taking advantage of
differences in real interest rates -- that is, interest rates that are adjusted
for inflation. Discrepancies in real interest rates occur when a country's
central bank manipulates monetary policy for domestic economic purposes, such as
combating unemployment or attempting to offset inflation. The effects of these
policies tend to spill over into international markets, creating opportunities
for global investors. Additionally, demand for a currency with high real
interest rates is generally strong and the value of such a currency will rise
over time. We seek to emphasize currencies with high real interest rates and to
de-emphasize those currencies with low real interest rates.
What other factors influenced the fund's performance?
Our de-emphasis on equities held back performance early in the period -- stocks
in most major global markets advanced sharply. In particular, our limited
exposure to U.S. stocks dampened our returns. By mid-March, however, when equity
markets began to falter and the relative value of stocks began to improve, we
increased our equity exposure to near, and later above, the benchmark's neutral
stance. This increased commitment to stocks helped boost our returns, in spite
of increased levels of volatility within the global equity markets.
At the beginning of the reporting period we viewed bonds as undervalued in
comparison to stocks. However, bonds became more fairly valued, in our view, as
the reporting period continued. High real U.S. dollar interest rates continued
to make the U.S. bond market by far the world's most attractive, in our opinion.
As yields dropped, our emphasis on U.S. bonds boosted performance.
As for our currency strategy, during much of the reporting period we believed
that higher real U.S. interest rates would strengthen the dollar
relative to other currencies. Accordingly, we hedged our foreign currency
exposure, a move that benefited the fund as foreign currencies -- the yen in
particular--depreciated steadily through the reporting period.
What is the fund's current strategy?
As of October 31, 2000, the fund's market exposure by country, taking into
account physical securities holdings and derivatives, was as follows:
Market Exposure by Country (as of October 31, 2000)
United States 36.7%
Japan 26.7%
Germany 16.0%
United Kingdom 9.4%
Other 5.1%
The Netherlands 4.9%
Italy 1.2%
At the end of the reporting period, approximately 67% of the portfolio was
invested in stocks, with the remaining 33% invested in bonds. In our view,
stocks became somewhat cheaper relative to bonds when equity markets declined.
As a result, we added to our U.S. equity holdings. We also continued to place a
strong emphasis on Japanese stocks and increased our equity holdings there as
well.
On October 17, 2000, the fund's Board of Directors approved a proposal to
liquidate the fund and distribute its assets to shareholders on
The Fund
or about December 29, 2000. Accordingly, this will be the final shareholder
report issued for the fund.
November 15, 2000
(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 PRICES 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, 2001,
AT WHICH TIME IT MAY BE EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT
BEEN ABSORBED, THE FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF NET DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY CAPITAL INTERNATIONAL
(MSCI) WORLD INDEX IN AN UNMANAGED INDEX OF GLOBAL STOCK MARKET PERFORMANCE,
INCLUDING THE UNITED STATES, CANADA, AUSTRALIA, NEW ZEALAND AND THE FAR EAST.
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. 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 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. 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
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.
<TABLE>
<CAPTION>
The Fund
Average Annual Total Returns AS OF 10/31/00
Inception From
Date 1 Year Inception
---------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
<S> <C> <C> <C>
WITH SALES CHARGE (5.75%) 6/29/98 (6.37%) 1.46%
WITHOUT SALES CHARGE 6/29/98 (0.67%) 4.05%
CLASS B SHARES
WITH REDEMPTION ((+)) 6/29/98 (5.18%) 2.02%
WITHOUT REDEMPTION 6/29/98 (1.43%) 3.26%
CLASS C SHARES
WITH REDEMPTION ((+)(+)) 6/29/98 (2.36%) 3.26%
WITHOUT REDEMPTION 6/29/98 (1.43%) 3.26%
CLASS R SHARES 6/29/98 (0.41%) 4.33%
---------------------------------------------------------------------------------------------------------------------------------
Actual Aggregate Total Returns AS OF 10/31/00
Inception From
Date 1 Year Inception
---------------------------------------------------------------------------------------------------------------------------------
CLASS T SHARES
WITH SALES CHARGE (4.5%) 3/1/00 -- (8.20%)
WITHOUT SALES CHARGE 3/1/00 -- (3.88%)
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, AT WHICH TIME CLASS B SHARES WILL CONVERT TO
CLASS A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
October 31, 2000
COMMON STOCKS--19.0% Shares Value ($)
--------------------------------------------------------------------------------
AUSTRIA--.1%
<S> <C> <C>
Bank Austria 100 5,403
OMV 100 6,777
12,180
BELGIUM--.3%
Barco 100 11,205
Electrabel 50 10,845
Fortis (B) 400 12,239
Groupe Bruxelles Lambert 50 11,443
KBC Bancassurance 200 8,273
Solvay 100 5,086
Tractebel 100 13,570
72,661
DENMARK--.2%
A/S Dampskibsselskabet Svendborg, Cl. B 1 13,210
D/S 1912, Cl. B 1 9,566
Danske Bank 50 7,232
Tele Danmark 200 9,452
39,460
FINLAND--.8%
Finnlines 300 4,908
Nokia 3,800 156,180
Sonera 300 6,601
UPM-Kymmene 300 8,480
176,169
HONG KONG--.5%
CLP 2,000 9,334
Hang Seng Bank 1,400 16,470
Hutchison Whampoa 3,300 40,937
New World Development 3,000 3,558
Pacific Century CyberWorks 6,889 (a) 5,300
Sun Hung Kai Properties 2,021 16,714
Swire Pacific, Cl. A 2,000 12,335
104,648
IRELAND--.1%
Allied Irish Banks 713 7,252
CRH 400 6,062
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
IRELAND (CONTINUED)
Jefferson Smurfit 1,700 3,026
16,340
ITALY--1.1%
Assicurazioni Generali 800 26,276
Banca Intesa 2,046 8,497
ENI 6,400 34,392
Enel 1,000 3,679
Fiat 300 6,934
Mediaset 1,000 14,553
Mediobanca 600 6,627
Olivetti 2,500 7,650
Pirelli 1,700 4,986
Riunione Adriatica di Sicurta 600 7,822
San Paolo--IMI 1,222 19,731
Telecom Italia 3,000 34,887
Telecom Italia (RNC) 1,000 5,448
Telecom Italia Mobile 5,300 45,417
Telecom Italia Mobile (RNC) 2,000 10,637
UniCredito Italiano 2,500 12,778
250,314
JAPAN--13.9%
ACOM 200 16,174
ADVANTEST 200 26,065
ALPS ELECTRIC 1,000 19,782
AOYAMA TRADING 200 1,630
ASAHI BREWERIES 1,000 9,873
ASAHI CHEMICAL INDUSTRY 2,000 12,382
Ajinomoto 1,000 11,173
Asahi Bank 4,000 15,752
Asahi Glass 2,000 20,515
BANK OF FUKUOKA 1,000 4,909
BRIDGESTONE 1,000 9,909
Bank of Tokyo-Mitsubishi 7,000 83,918
Bank of Yokohama 2,000 9,800
Benesse 200 10,990
CANON 1,000 39,656
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
JAPAN (CONTINUED)
CHUGAI PHARMACEUTICAL 1,000 16,961
Central Japan Railway 4 24,361
Citizen Watch 1,000 9,808
DAI NIPPON PRINTING 1,000 15,661
DAIKIN INDUSTRIES 1,000 19,324
DAINIPPON INK AND CHEMICALS 2,000 6,466
DENSO 1,000 22,804
Daiwa Bank 2,000 4,066
Daiwa House Industry 1,000 6,273
Daiwa Securities 3,000 33,217
EBARA 1,000 15,523
East Japan Railway 5 28,711
FANUC 600 53,851
FUJITSU 3,000 53,411
Fuji Photo Film 1,000 37,091
Furukawa Electric 1,000 26,284
Gunma Bank 1,000 5,083
HONDA MOTOR 1,000 34,527
Hitachi 4,000 42,861
ITOCHU 1,000 (a) 4,259
Isetan 1,000 8,490
JAPAN AIRLINES 2,000 8,004
JAPAN TOBACCO 3 20,606
JUSCO 1,000 18,775
2,000 6,832
KINDEN 1,000 6,548
KIRIN BREWERY 2,000 20,844
KOKUYO 1,000 15,386
KOMATSU 2,000 8,865
KONAMI 300 25,277
KUBOTA 3,000 10,083
KYOCERA 300 39,015
Kansai Electric Power 1,300 21,276
Kao 1,000 29,948
Kawasaki Heavy Industries 3,000 (a) 3,105
Kawasaki Steel 3,000 2,940
Kinki Nippon Railway 2,000 8,664
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
JAPAN (CONTINUED)
Kuraray 1,000 9,387
MARUI 1,000 14,745
MINEBEA 1,000 9,983
MITSUI & CO. 2,000 13,280
MYCAL 1,000 2,308
Matsushita Electric Industrial 3,000 87,096
Mitsubishi 2,000 16,485
Mitsubishi Chemical 2,000 6,319
Mitsubishi Electric 4,000 28,721
Mitsubishi Estate 2,000 21,247
Mitsubishi Heavy Industries 6,000 23,299
Mitsubishi Rayon 2,000 7,125
Mitsubishi Trust & Banking 2,000 16,210
Mitsui Fudosan 1,000 12,107
Mitsui Marine & Fire Insurance 1,000 5,074
Mizuho 13 99,890
NEC 2,000 38,099
NGK INSULATORS 1,000 13,234
NGK SPARK PLUG 1,000 15,377
NIDEC 200 12,254
NIKON 1,000 14,525
NIPPON MITSUBISHI OIL 2,000 10,752
NIPPON TELEGRAPH AND TELEPHONE 18 163,696
NIPPON STEEL 12,000 19,452
NISSAN MOTOR 5,000 (a) 34,298
NSK 1,000 7,198
Nichiei 100 440
Nintendo 200 33,062
Nippon Express 1,000 5,999
Nippon Paper Industries 2,000 11,393
Nippon Yusen Kabushiki Kaisha 2,000 9,378
Nomura Securities 3,000 63,605
OBAYASHI 2,000 8,279
OJI PAPER 2,000 11,631
OLYMPUS OPTICAL 1,000 13,811
OMRON 1,000 24,636
ORIENTAL LAND 100 6,045
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
JAPAN (CONTINUED)
ORIX 120 12,584
OSAKA GAS 3,000 7,391
Promise 200 15,001
ROHM 200 50,389
SANKYO 1,000 22,026
SANYO ELECTRIC 4,000 30,406
SHIMAMURA 100 7,583
SHIMANO 1,000 20,103
SHIMIZU 2,000 5,458
SHIZUOKA BANK 1,000 9,076
SMC 100 14,140
SOFTBANK 500 29,994
SONY 1,400 111,805
SUMITOMO 2,000 17,584
SUMITOMO CHEMICAL 3,000 14,782
Sakura Bank 6,000 43,685
Sekisui Chemical 1,000 2,885
Sekisui House 1,000 10,569
77 Bank 1,000 7,400
Sharp 2,000 25,460
Shin-Etsu Chemical 1,000 41,029
Shionogi & Co. 1,000 19,507
Sumitomo Bank 4,000 48,539
Sumitomo Electric Industries 1,000 18,454
Sumitomo Marine & Fire Insurance 1,000 6,099
Sumitomo Metal Industries 6,000 (a) 3,297
TAISHO PHARMACEUTICAL 1,000 28,757
TAKEFUJI 200 19,782
TEIJIN 2,000 9,049
TERUMO 1,000 28,299
TOBU RAILWAY 2,000 5,898
TOKYO BROADCASTING SYSTEM 1,000 39,106
TOKYO GAS 5,000 13,051
TOKYU 2,000 10,331
TOPPAN PRINTING 1,000 8,829
TORAY INDUSTRIES 2,000 7,785
TOSHIBA 3,000 21,431
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
JAPAN (CONTINUED)
TOTO 1,000 7,583
Takashimaya 1,000 7,299
Takeda Chemical Industries 1,000 65,849
Tohoku Electric Power 1,000 13,463
Tokai Bank 3,000 16,073
Tokio Marine & Fire Insurance 2,000 22,090
Tokyo Electric Power 1,600 38,831
Toyota Motor 5,000 199,651
YAMATO TRANSPORT 1,000 20,194
3,076,765
NEW ZEALAND--.0%
Telecom Corporation of New Zealand 2,000 4,429
NORWAY--.1%
Den Norske Bank 1,100 4,766
Norsk Hydro 200 7,935
12,701
PORTUGAL--.1%
BPI-SGPS 1,330 4,318
Banco Comercial Portugues 1,500 7,489
Banco Espirito Santo 326 4,946
Electricidade de Portugal 1,500 4,068
Portugal Telecom 1,100 9,790
30,611
SINGAPORE--.3%
DBS 1,163 13,714
Oversea-Chinese Banking 2,100 13,398
Singapore Airlines 1,000 10,026
Singapore Press 900 12,868
Singapore Telecommunications 5,000 8,288
58,294
SPAIN--.7%
Altadis 300 4,488
Autopistas, Concesionaria Espanola 551 4,185
Banco Bilbao Vizcaya Argentaria 2,166 28,824
Banco Santander Central Hispano 2,820 27,296
Empresa Nacional de Electricidad 800 13,019
Fomento de Construcciones y Contratas 400 7,340
COMMON STOCKS (CONTINUED) Shares Value ($)
--------------------------------------------------------------------------------
SPAIN (CONTINUED)
Gas Natural SDG 300 5,136
Iberdrola 700 8,550
Repsol--YPF 600 9,520
Sociedad General de Aguas de Barcelona 600 7,374
Telefonica 2,296 (a) 43,729
159,461
SWEDEN--.8%
Drott, Cl. B 200 2,345
Electrolux, Cl. B 300 3,772
ForeningsSparbanken 450 6,445
Hennes & Mauritz, Cl. B 600 11,198
NetCom, Cl. B 100 (a) 4,681
Nordic Baltic 1,270 9,506
Sandvik 300 6,602
Securitas, Cl. B 400 8,503
Skandia Forsakrings 800 13,533
Skandinaviska Enskilda Banken, Cl. A 500 5,888
Skanska, Cl. B 200 7,904
Svenska Cellulosa, Cl. B 300 6,138
Svenska Handelsbanken, Cl. A 600 9,401
Telefonaktiebolaget LM Ericsson, Cl. B 4,800 63,713
Volvo, Cl. A 270 4,042
Volvo, Cl. B 180 2,766
166,437
TOTAL COMMON STOCKS
(cost $3,402,675) 4,180,470
--------------------------------------------------------------------------------------------------------------------------------
Principal
BONDS AND NOTES--15.4% Amount ($) Value ($)
--------------------------------------------------------------------------------------------------------------------------------
NETHERLANDS--4.8%
Netherlands Government, Bonds:
6%, 1/15/2006 195,000 170,716
5.75%, 2/15/2007 206,445 179,781
5.25%, 7/15/2008 340,000 287,227
5.50%, 7/15/2010 175,000 149,933
7.50%, 1/15/2023 130,000 134,225
5.50%, 1/15/2028 160,000 132,573
1,054,455
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
--------------------------------------------------------------------------------
UNITED STATES--10.6%
U.S. Treasury, Notes,
6.50%, 8/15/2005 1,145,000 (b) 1,177,164
U.S. Treasury, Bonds,
8%, 11/15/2021 945,000 1,168,866
2,346,030
TOTAL BONDS AND NOTES
(cost $ 3,538,301) 3,400,485
------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--60.2% Amount ($) Value ($)
--------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER:
AIG Funding, 6.46%, 11/30/2000 400,000 397,918
AT & T, 6.48%, 12/5/2000 800,000 795,104
Alcoa, 6.47%, 11/27/2000 800,000 796,262
Associates Corporation of North America,
6.62%, 11/1/2000 2,148,000 2,148,000
British Telecommunications, 6.50%, 11/9/2000 771,000 769,886
Caterpillar Financial Service, 6.46%, 11/13/2000 400,000 399,139
Ciesco L. P., 6.47%, 11/14/2000 800,000 798,131
E. I. du Pont de Nemours, 6.44%, 12/4/2000 800,000 795,277
Ford Motor Credit, 6.49%, 11/21/2000 800,000 797,116
General Motors, 6.46%, 11/9/2000 800,000 798,852
IBM Credit, 6.46%, 11/3/2000 800,000 799,713
International Leasing, 6.46%, 11/7/2000 800,000 799,139
Metlife Funding, 6.47%, 11/6/2000 800,000 799,281
Philip Morris, 6.49%, 11/17/2000 800,000 797,692
Schering-Plough, 6.45%, 11/27/2000 800,000 796,273
USAA Capitol, 6.45%, 12/14/2000 800,000 793,837
TOTAL SHORT-TERM INVESTMENTS
(cost $13,281,620) 13,281,620
---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $20,222,596) 94.6% 20,862,575
CASH AND RECEIVABLES (NET) 5.4% 1,198,652
NET ASSETS 100.0% 22,061,227
A NON-INCOME PRODUCING.
B PARTIALLY HELD BY THE CUSTODIAN IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF FINANCIAL FUTURES
October 31, 2000
Unrealized
Market Value Appreciation
Covered by (Depreciation)
Contracts Contracts ($) Expiration at 10/31/2000 ($)
-------------------------------------------------------------------------------------------------------------------------------
FINANCIAL FUTURES LONG:
Australian 10 Year Bond 1 79,559 December 2000 (536)
Dax 30 1 153,566 December 2000 (4,725)
Euro Bund 35 3,259,277 December 2000 11,392
Financial Times 100 22 2,018,628 December 2000 (28,998)
Japanese 10 Year Government Bond 3 380,461 December 2000 7,446
Nikkei 300 6 152,608 December 2000 (7,766)
S&P 500 17 6,120,850 December 2000 (299,200)
S&P/TSE 60 2 151,633 December 2000 (15,256)
Topix 16 2,089,982 December 2000 (167,598)
U.S. 10 Year Note 2 201,406 December 2000 2,000
(503,241)
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
<S> <C> <C>
Investments in securities--See Statement of Investments 20,222,596 20,862,575
Cash 1,358
Cash denominated in foreign currencies 17,469 17,148
Receivable for investment securities sold 1,455,353
Receivable for futures variation margin--Note 4(a) 124,237
Dividends and interest receivable 102,026
Prepaid expenses 19,746
22,582,443
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 25,987
Payable for investment securities purchased 406,383
Net unrealized (depreciation) on forward
currency exchange contracts--Note 4(a) 55,163
Accrued expenses 33,683
521,216
--------------------------------------------------------------------------------
NET ASSETS ($) 22,061,227
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 21,453,458
Accumulated undistributed investment income--net 1,032,987
Accumulated net realized gain (loss) on investments and
foreign currency transactions (503,206)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions [including
($503,241) net unrealized (depreciation) on financial futures] 77,988
--------------------------------------------------------------------------------
NET ASSETS ($) 22,061,227
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 7,766,484 7,636,631 2,192,665 4,416,932 48,515
Shares Outstanding 599,180 595,459 170,979 339,586 3,770
--------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 12.96 12.82 12.82 13.01 12.87
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF OPERATIONS
Year Ended October 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 1,073,299
Cash dividends (net of $8,790 foreign taxes withheld at source) 52,097
TOTAL INCOME 1,125,396
EXPENSES:
Management fee--Note 3(a) 228,011
Distribution fees-Note 3(b) 76,306
Shareholder servicing costs-Note 3(c) 46,272
Registration fees 32,394
Auditing fees 23,633
Prospectus and shareholders' reports 18,177
Custodian fees 16,913
Legal fees 7,742
Directors' fees and expenses--Note 3(d) 4,010
Miscellaneous 37,079
TOTAL EXPENSES 490,537
Less--reduction in management fee due to
undertaking by The Dreyfus Corporation--Note 3(a) (30,116)
NET EXPENSES 460,421
INVESTMENT INCOME--NET 664,975
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 47,025
Net realized gain (loss) on forward currency exchange contracts (476,534)
Net realized gain (loss) on financial futures 510,228
NET REALIZED GAIN (LOSS) 80,719
Net unrealized appreciation (depreciation) on investments and
foreign currency transactions [including ($582,370) net unrealized
(depreciation) on financial futures] (968,060)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (887,341)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (222,366)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended October 31,
----------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 664,975 397,880
Net realized gain (loss) on investments 80,719 1,500,345
Net unrealized appreciation (depreciation)
on investments (968,060) 831,343
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (222,366) 2,729,568
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (75,939) --
Class B shares (19,696) --
Class C shares (5,600) --
Class R shares (54,413) --
Net realized gain on investments:
Class A shares (361,133) --
Class B shares (361,294) --
Class C shares (102,720) --
Class R shares (205,487) --
TOTAL DIVIDENDS (1,186,282) --
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 1,435,982 32,966
Class B shares 90,998 36,816
Class C shares 38,929 --
Class R shares -- 1,000
Class T shares 50,993 --
Year Ended October 31,
----------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS (CONTINUED) ($):
Dividends reinvested:
Class A shares 437,072 --
Class B shares 379,618 --
Class C shares 108,320 --
Class R shares 259,900 --
Cost of shares redeemed:
Class A shares (1,381,292) (1,078)
Class B shares (36,543) (13)
Class C shares (1,510) --
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 1,382,467 69,691
TOTAL INCREASE (DECREASE) IN NET ASSETS (26,181) 2,799,259
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 22,087,408 19,288,149
END OF PERIOD 22,061,227 22,087,408
Undistributed investment income--net 1,032,987 523,660
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended October 31,
--------------------------------
2000(a) 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 107,495 2,488
Shares issued for dividends reinvested 32,863 --
Shares redeemed (103,690) (81)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 36,668 2,407
--------------------------------------------------------------------------------
CLASS B
Shares sold 6,740 2,764
Shares issued for dividends reinvested 28,650 --
Shares redeemed (2,694) (1)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 32,696 2,763
--------------------------------------------------------------------------------
CLASS C
Shares sold 2,916 --
Shares issued for dividends reinvested 8,175 --
Shares redeemed (112) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 10,979 --
--------------------------------------------------------------------------------
CLASS R
Shares sold -- 74
Shares issued for dividends reinvested 19,512 --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 19,512 74
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 3,770 --
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000
FOR CLASS T SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
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 2000 1999 1998(a)
-----------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
<S> <C> <C> <C>
Net asset value, beginning of period 13.81 12.07 12.50
Investment Operations:
Investment income--net .43(b) .29(b) .09
Net realized and unrealized gain (loss)
on investments (.50) 1.45 (.52)
Total from Investment Operations (.07) 1.74 (.43)
Distributions:
Dividends from investment income--net (.14) -- --
Dividends from net realized gain on investments (.64) -- --
Total Distributions (.78) -- --
Net asset value, end of period 12.96 13.81 12.07
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)( C) (.67) 14.42 (3.44)(d)
---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.73 1.85 .59(d)
Ratio of net investment income
to average net assets 3.20 2.17 .75(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .14 .13 .11(d)
Portfolio Turnover Rate 17.59 40.60 12.26(d)
--------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 7,766 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 2000 1999 1998(a)
--------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.67 12.04 12.50
Investment Operations:
Investment income--net .33(b) .19(b) .06
Net realized and unrealized gain (loss)
on investments (.50) 1.44 (.52)
Total from Investment Operations (.17) 1.63 (.46)
Distributions:
Dividends from investment income--net (.04) -- --
Dividends from net realized gain on investments (.64) -- --
Total Distributions (.68) -- --
Net asset value, end of period 12.82 13.67 12.04
--------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)( C) (1.43) 13.54 (3.68)(d)
--------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.48 2.60 .84(d)
Ratio of net investment income
to average net assets 2.45 1.42 .50(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .14 .13 .11(d)
Portfolio Turnover Rate 17.59 40.60 12.26(d)
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 7,637 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 2000 1999 1998(a)
--------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.67 12.04 12.50
Investment Operations:
Investment income--net .33(b) .19(b) .06
Net realized and unrealized gain (loss)
on investments (.50) 1.44 (.52)
Total from Investment Operations (.17) 1.63 (.46)
Distributions:
Dividends from investment income--net (.04) -- --
Dividends from net realized gain on investments (.64) -- --
Total Distributions (.68) -- --
Net asset value, end of period 12.82 13.67 12.04
--------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)( C) (1.43) 13.54 (3.68)(d)
---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 2.48 2.60 .84(d)
Ratio of net investment income
to average net assets 2.45 1.42 .50(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .14 .13 .11(d)
Portfolio Turnover Rate 17.59 40.60 12.26(d)
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 2,193 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 2000 1999 1998(a)
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.86 12.08 12.50
Investment Operations:
Investment income--net .47(b) .32(b) .10
Net realized and unrealized gain (loss)
on investments (.51) 1.46 (.52)
Total from Investment Operations (.04) 1.78 (.42)
Distributions:
Dividends from investment income--net (.17) -- --
Dividends from net realized gain on investments (.64) -- --
Total Distributions (.81) -- --
Net asset value, end of period 13.01 13.86 12.08
---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (.41) 14.73 (3.36)(c)
--------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.48 1.60 .50(c)
Ratio of net investment income
to average net assets 3.45 2.42 .84(c)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation .13 .13 .11(c)
Portfolio Turnover Rate 17.59 40.60 12.26(c)
---------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 4,417 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.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended
CLASS T SHARES October 31, 2000(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.39
Investment Operations:
Investment income--net .22(b)
Net realized and unrealized (loss) on investments (.74)
Total from Investment Operations (.52)
Net asset value, end of period 12.87
--------------------------------------------------------------------------------
TOTAL RETURN (%) (C) (3.88)(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.48(d)
Ratio of net investment income
to average net assets 2.12(d)
Decrease reflected in above expense ratio
due to undertaking by The Dreyfus Corporation .05(d)
Portfolio Turnover Rate 17.59
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 49
(A) FROM MARCH 1, 2000 (COMMENCEMENT OF INITIAL OFFERING) TO OCTOBER 31, 2000.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS..
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Global Allocation Fund (the "fund") is a separate diversified
portfolio of Dreyfus Premier International Funds, Inc. (the "Company") which is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
an open-end management investment company and operates as a series company
currently offering five series including the fund. The fund's investment
objective is total return. The Dreyfus Corporation (the "Manager") serves as the
fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A., which is a wholly-owned subsidiary of Mellon Financial Corporation.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. The fund
is authorized to issue 100 million shares of $.001 par value Common Stock in
each of the following classes of shares: Class A, Class B, Class C, Class R and
Class T shares. Class A and Class T shares are subject to a sales charge imposed
at the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six years
of purchase (Class B shares automatically convert to Class A shares after six
years) , Class C shares are subject to a CDSC imposed on Class C shares redeemed
within one year of purchase and Class R shares are sold at net asset value per
share only to institutional investors. Other differences between the classes
include the services offered to and the expenses borne by each class and certain
voting rights.
As of October 31, 2000, MBC Investments Corp., an indirect subsidiary of Mellon
Financial Corporation, held the following shares:
Class A ................... 592,716 Class C ................... 168,175
Class B ................... 588,613 Class R ................... 339,508
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are 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 with
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
holding 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 $1,325 during the period ended October 31, 2000 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date.
Dividends from investment income-net and dividends from net realized capital
gain are normally declared and paid annually, but the fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders by complying with the applicable provisions of the Code, and
to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes, including the financing of redemptions.
Interest is charged to the fund at rates which are related to the Federal Funds
rate in effect at the time of borrowings. During the period ended October 31,
2000, the fund did not borrow under the line of credit.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of 1% of the value of the fund's average daily net
assets and is payable monthly. The Manager has undertaken from November 1, 1999
through October 31, 2001 to reduce the management fee paid by the fund, to the
extent that the fund's aggregate expenses, excluding 12b-1 distribution fees,
shareholder service plan fees, taxes, brokerage commissions, interest on
borrowings and extraordinary expenses, exceed an annual rate of 1.75% of the
value of the fund's average daily net assets. The reduction in management fee,
pursuant to the undertaking, amounted to $30,116 during the period ended October
31, 2000.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the distributor for
distributing their shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
October 31, 2000, Class B, Class C and Class T shares were charged $59,344,
$16,940 and $22, respectively, pursuant to the Plan of which $34,966, $11,385
and $22 for Class B, Class C and Class T shares, respectively, were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T
shares pay the distributor at an annual rate of .25 of 1% of the value of their
average daily net assets for the provision of certain services. The services
provided may include personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts. The distributor may make payments to Service Agents (a securities
dealer, financial
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 2000, Class A, Class B, Class C and Class T shares were
charged $20,128, $19,781, $5,647 and $22, respectively, pursuant to the
Shareholder Services Plan, of which $13,541, $13,274, $3,311 and $22 for Class
A, Class B, Class C and Class T shares, respectively, were paid to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended October 31, 2000, the fund was charged $493 pursuant to the transfer
agency agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 11, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $30,000 and an attendance fee of $4,000 for each meeting attended
and $500 for telephone meetings. These fees are allocated among the funds in the
Fund Group. The Chairman of the Board receives an additional 25% of such
compensation. Prior to April 11, 2000, each Board member who was not an
" affiliated person" as defined in the Act received from the Company an annual
fee of $1,000 and an attendance fee of $250 per meeting. The Chairman of the
Board received an additional 25% of such compensation. Subject to the fund's
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
Company' s annual retainer fee and per meeting fee paid at the time the Board
member achieves emeritus status.
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, financial futures and forward currency exchange
contracts, during the period ended October 31, 2000, amounted to $1,755,599 and
$3,665,090, respectively.
<TABLE>
<CAPTION>
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the fund would incur a loss if the
value of the contract increases between the date the forward contract is opened
and the date the forward contract is closed. The fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchases
of forward currency exchange contracts, the fund would incur a loss if the value
of the contract decreases between the date the forward contract is opened and
the date the forward contract is closed. The fund realizes a gain if the value
of the contract increases between those dates. The fund is also exposed to
credit risk associated with counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gain on
each open contract. The following summarizes open forward currency exchange
contracts at October 31, 2000:
Foreign Unrealized
Forward Currency Currency Appreciation
Exchange Contracts Amounts Cost ($) Value ($) (Depreciation) ($)
---------------------------------------------------------------------------------------------------------------------------------
PURCHASES:
British Pounds,
<S> <C> <C> <C> <C>
expiring 12/21/2000 1,432,480 2,096,520 2,082,297 (14,223)
Canadian Dollars,
expiring 12/21/2000 262,000 174,603 171,807 (2,796)
Euro,
expiring 12/21/2000 3,789,000 3,320,933 3,218,252 (102,681)
SALES: PROCEEDS
Canadian Dollars,
expiring 11/3/2000 4,036 2,648 2,642 6
Euro,
expiring 11/3/2000 254,977 216,193 216,193 0
Japanese Yen,
expiring 11/3/2000 316,578,000 2,988,248 2,923,717 64,531
TOTAL (55,163)
The Fund
</TABLE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 2000 are set
forth in the Statement of Financial Futures.
(b) At October 31, 2000, accumulated net unrealized appreciation on investments,
forward currency exchange contracts and financial futures was $81,575,
consisting of $1,325,712 gross unrealized appreciation and $1,244,137 gross
unrealized depreciation.
At October 31, 2000, the cost of investments for Federal income tax purposes was
substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
Note 5--Subsequent Event:
At a meeting of the Board of Director's held on October 17, 2000, the Board
approved the liquidation of the fund on or about December 29, 2000. Accordingly,
effective at the close of business on October 31, 2000, the fund closed to new
investments, including new investments in existing shareholder accounts.
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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000 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, 2000, 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 accounting principles generally accepted
in the United States.
[Ernst & Young signature logo]
New York, New York
December 12, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $.2520 per share as a
long-term capital gain distribution paid on December 16, 1999.
For More Information
Dreyfus Premier Global Allocation Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 545AR0010
