Dreyfus
Growth Opportunity Fund, Inc.
SEMIANNUAL REPORT August 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 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
14 Financial Highlights
15 Notes to Financial Statements
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus
Growth Opportunity Fund, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Growth Opportunity
Fund, Inc., covering the six-month period from March 1, 2000 through August 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, Timothy M. Ghriskey.
Although large-cap U.S. stocks generally provided attractive returns over the
past six months, the reporting period was marked by high levels of volatility
and dramatic shifts in investor sentiment. In mid-March, technology and other
growth-oriented stocks corrected sharply over concerns about rising interest
rates and extremely high valuations, eroding much of the gains achieved earlier
in the year.
Also, primarily because of the precipitous drop in technology-stock prices,
value-oriented stocks generally outperformed growth stocks during the reporting
period, a reversal of the trends established over the past several years. In our
view, these short-term swings in investor sentiment highlight once again the
importance of broad diversification and a long-term perspective for most
investors.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Growth Opportunity Fund, Inc.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
September 15, 2000
DISCUSSION OF FUND PERFORMANCE
Timothy M. Ghriskey, Portfolio Manager
How did Dreyfus Growth Opportunity Fund, Inc. perform relative to its benchmark
For the six-month period ended August 31, 2000, Dreyfus Growth Opportunity Fund,
Inc. produced a total return of 5.18%.(1) This compares with the 11.72% return
provided by the fund' s benchmark, the Standard & Poor's 500 Composite Stock
Price Index ("S&P 500 Index"), for the same period.(2)
We attribute the fund' s underperformance to its large technology exposure.
Following an extended period of strong outperformance by technology stocks, the
technology sector has recently produced more modest returns. We made some
disappointing stock selections within the technology area that affected the
fund's overall performance.
What is the fund's investment approach?
The fund invests in growth and value stocks, including stocks that exhibit
characteristics of both investment styles. We begin with a proprietary computer
model that identifies suitable candidates for the fund. We then reduce that list
of names by conducting fundamental research and meeting with the management
teams of the remaining candidates. Specifically, we are looking for factors that
could signal a rise in the stock's price, including new products or markets,
opportunities for gaining greater market share, more effective management teams,
or positive changes in the company's corporate structure or market perception.
What other factors influenced the fund's performance?
As "bottom-up" investors, we choose stocks based on their individual merits
rather than according to market or economic trends. However, we remain fully
cognizant of the overall economic environment, and we are aware of trends that
may affect our performance.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Technology stocks, which make up the largest sector of the fund, fell out of
favor during the past six months after achieving particularly strong gains just
prior to the beginning of the reporting period. Our heavy exposure to that
industry group hindered our overall returns. While we trimmed our exposure to
the technology area early in the period, we slightly increased our exposure
after we began to see valuations improve. In hindsight, we may have moved back
into this sector a little too early.
However, we achieved solid returns from several other market sectors, including
the financial, health care, energy and capital goods industry groups. Within
financials, the fund' s strongest gains stemmed from finance companies and
lending institutions. In addition, we benefited from our investments in
financial conglomerates, investment banks and brokerage firms and, toward the
end of the reporting period, in insurance companies.
Within the health care area, we benefited most from our pharmaceutical holdings,
including Pfizer, Eli Lilly and ALZA, as well as Watson Pharmaceutical and Teva
Pharmaceutical Industries, ADR, two generic drug companies. We also achieved
gains from several of our investments in biotechnology stocks.
The fund's energy stocks benefited from the rising price of oil. When oil prices
fell at the end of last summer, we believed that those prices were unsustainably
low and presented excellent investment opportunities. After oil prices began to
climb, energy stock prices generally followed, boosting the fund's overall
returns.
Within capital goods, the fund held relatively large positions in
strong-performing companies like General Electric, which delivered better than
expected earnings during the period. We also enjoyed attractive returns from
companies such as Flextronics International, a contract manufacturer for the
technology industry, as well as Tyco International, a diversified manufacturing
and service company, and Boeing, the aerospace firm.
What is the fund's current strategy?
As of the end of the reporting period, we believe that market conditions remain
volatile and the market' s direction continues to be unclear. Accordingly, at
this time we have chosen to generally match the percentage of assets devoted to
technology and financial stocks -- the two largest sectors of the fund -- to
that of the S&P 500 Index. This posture will help reduce the risks of over- or
underexposure to these two important areas. Of course, our strategy in this
regard may change at any time.
We have also chosen to maintain the fund's level of exposure to energy stocks.
With oil and natural gas inventories at low levels going into the winter season,
these types of securities provide the fund with a good performance opportunity.
Finally, in light of the upcoming November elections, we have been monitoring
our holdings in certain sectors that we believe may be influenced by the outcome
of the elections. These areas include, among others, health care, defense,
military and aerospace. Depending on which presidential candidate happens to be
leading the polls at the time, each of these sectors has come into and out of
favor. As an actively traded fund, we are carefully monitoring our investments
in these areas and are adjusting them accordingly in an attempt to benefit the
fund' s return.
September 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR
LESS THAN THEIR ORIGINAL COST.
(2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF INCOME DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD & POOR'S 500 COMPOSITE
STOCK PRICE INDEX ("S&P 500 INDEX") IS A WIDELY ACCEPTED, UNMANAGED INDEX OF
U.S. STOCK MARKET PERFORMANCE.
The Fund
STATEMENT OF INVESTMENTS
August 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS
COMMON STOCKS--97.7% Shares Value ($)
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COMMERCIAL SERVICES--1.6%
<S> <C> <C>
Lamar Advertising 54,400 (a) 2,526,200
McGraw-Hill Cos. 83,000 5,140,812
7,667,012
CONSUMER DURABLES--.6%
Ford Motor 67,289 1,627,559
General Motors 18,801 1,357,197
2,984,756
CONSUMER NON--DURABLES--5.5%
Anheuser-Busch Cos. 24,300 1,915,144
Coca-Cola 90,300 4,752,038
Kimberly-Clark 19,800 1,158,300
NIKE, Cl. B 24,600 973,237
Nabisco Group Holdings 87,600 2,458,275
PepsiCo 116,600 4,970,075
Philip Morris Cos. 175,900 5,211,037
UST 225,800 4,882,925
26,321,031
CONSUMER SERVICES--5.1%
Clear Channel Communications 67,100 (a) 4,856,363
Comcast, Cl. A 33,800 (a) 1,259,050
Disney (Walt) 78,300 3,048,806
McDonald's 48,000 1,434,000
Time Warner 54,800 4,685,400
USA Networks 141,400 (a) 3,402,437
Viacom, Cl. B 83,052 (a) 5,590,438
24,276,494
CONSUMER STAPLES--.2%
Gillette 36,100 1,083,000
ELECTRONIC TECHNOLOGY COMPONENTS--12.3%
Applied Materials 28,300 (a) 2,442,644
Flextronics International 41,300 (a) 3,440,806
Intel 357,900 26,797,763
JDS Uniphase 26,200 (a) 3,261,491
Lucent Technologies 58,400 2,441,850
Nokia, ADS 42,500 1,909,844
Nortel Networks 132,500 10,807,031
Qualcomm 26,400 (a) 1,580,700
COMMON STOCKS (CONTINUED) Shares Value ($)
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ELECTRONIC TECHNOLOGY COMPONENTS (CONTINUED)
Tellabs 23,600 (a) 1,326,025
Texas Instruments 69,000 4,618,687
58,626,841
ELECTRONIC TECHNOLOGY HARDWARE--11.0%
Apple Computer 12,000 (a) 731,250
Boeing 32,300 1,732,087
Compaq Computer 90,200 3,072,437
Dell Computer 93,300 (a) 4,070,213
EMC 75,800 (a) 7,428,400
Hewlett-Packard 35,500 4,286,625
International Business Machines 97,100 12,817,200
Micron Technology 21,100 (a) 1,724,925
Motorola 129,400 4,666,488
Scientific-Atlanta 21,700 1,691,244
Sun Microsystems 72,700 (a) 9,228,356
Xilinx 11,400 (a) 1,013,175
52,462,400
ENERGY MINERALS--4.6%
Anadarko Petroleum 96,200 6,327,074
Chevron 23,500 1,985,750
Exxon Mobil 96,150 7,848,244
Royal Dutch Petroleum, ADR 53,000 3,242,938
Santa Fe International 61,300 2,409,856
21,813,862
FINANCE--15.1%
American Express 71,800 4,245,175
American General 900 65,531
American International Group 84,413 7,523,264
Associates First Capital, Cl. A 123,100 3,462,188
Bank of America 59,300 3,176,256
Bank of New York 93,400 4,897,663
Chase Manhattan 76,700 4,285,612
Citigroup 221,600 12,935,900
Federal Home Loan Mortgage 26,000 1,095,250
FleetBoston Financial 117,700 5,024,319
Goldman Sachs Group 41,000 5,250,562
Hartford Financial Services Group 15,800 1,052,675
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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FINANCE (CONTINUED)
Lincoln National 25,200 1,360,800
Merrill Lynch 33,100 4,799,500
Morgan Stanley Dean Witter & Co. 46,500 5,001,656
Schwab (Charles) 50,300 1,920,831
USA Education 51,800 2,029,913
Wells Fargo 87,500 3,778,906
71,906,001
HEALTH SERVICES--.5%
HCA-Healthcare 65,300 2,252,850
HEALTH TECHNOLOGY--11.2%
ALZA 69,000 (a) 5,218,125
American Home Products 57,700 3,126,619
Amgen 55,400 (a) 4,200,013
Andrx 59,400 (a) 5,167,800
Barr Laboratories 32,300 (a) 2,293,300
Bristol-Myers Squibb 100,500 5,326,500
Johnson & Johnson 25,300 2,326,019
Lilly (Eli) 20,300 1,481,900
Maxygen 14,200 (a) 763,250
Merck & Co. 80,300 5,610,962
Pfizer 225,950 9,772,337
Pharmacia 45,000 2,635,312
Schering-Plough 77,800 3,121,725
Teva Pharmaceutical Industries, ADR 34,700 2,103,688
53,147,550
INDUSTRIAL SERVICES--.8%
BJ Services 17,300 (a) 1,159,100
Schlumberger 29,100 2,482,594
Transocean Sedco Forex 1,100 65,725
3,707,419
NON--ENERGY MINERALS--.5%
Alcoa 69,100 2,297,575
PROCESS INDUSTRIES--1.4%
Corning 10,000 3,279,375
duPont (E.I.) deNemours 72,500 3,253,438
6,532,813
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
PRODUCER MANUFACTURING--6.9%
Emerson Electric 67,400 4,461,037
General Electric 353,300 20,734,294
Tyco International 138,100 7,871,700
33,067,031
RETAIL TRADE--4.1%
Costco Wholesale 135,300 (a) 4,659,394
Gap 31,550 707,903
Home Depot 86,250 4,145,391
Sears, Roebuck & Co. 33,800 1,054,137
Target 33,400 776,550
Wal-Mart Stores 171,600 8,140,275
19,483,650
TECHNOLOGY SERVICES--7.5%
America Online 85,000 (a) 4,983,125
Electronic Data Systems 94,300 4,697,319
Microsoft 191,700 (a) 13,383,056
Oracle 103,500 (a) 9,412,031
Veritas Software 29,300 (a) 3,532,481
36,008,012
UTILITIES--8.8%
AES 15,400 (a) 981,750
AT&T 28,414 895,033
AT&T--Liberty Media Group, Cl. A 92,800 1,983,600
Alltel 23,100 1,167,994
BellSouth 70,100 2,615,606
Coastal 40,600 2,796,325
Duke Energy 64,900 4,855,331
Enron 28,000 2,376,500
NEXTEL Communications, Cl. A 27,400 (a) 1,518,988
NEXTLINK Communications, Cl. A 11,800 (a) 413,738
Qwest Communications International 87,465 (a) 4,515,381
SBC Communications 119,170 4,975,348
Southern 14,400 431,100
Sprint (FON Group) 74,100 2,482,350
Sprint (PCS Group) 33,000 (a) 1,656,187
Telefonos de Mexico, Cl. L, ADS 20,200 1,099,637
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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UTILITIES (CONTINUED)
WorldCom 192,500 (a) 7,026,250
41,791,118
TOTAL COMMON STOCKS
(cost $330,711,468) 465,429,415
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Principal
SHORT-TERM INVESTMENTS--2.5% Amount ($) Value ($)
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U.S. TREASURY BILLS:
6.26%, 9/21/2000 3,556,000 3,542,665
6.06%, 11/16/2000 559,000 551,800
6.12%, 11/30/2000 8,206,000 8,080,859
TOTAL SHORT--TERM INVESTMENTS
(cost $12,175,930) 12,175,324
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TOTAL INVESTMENTS (cost $342,887,398) 100.2% 477,604,739
LIABILITIES, LESS CASH AND RECEIVABLES (.2%) (1,145,859)
NET ASSETS 100.0% 476,458,880
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 342,887,398 477,604,739
Cash 4,433,437
Receivable for investment securities sold 8,821,629
Dividends receivable 510,492
Receivable for shares of Common Stock subscribed 352,065
Prepaid expenses 20,301
491,742,663
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 319,879
Payable for investment securities purchased 14,859,522
Payable for shares of Common Stock redeemed 26,704
Accrued expenses 77,678
15,283,783
--------------------------------------------------------------------------------
NET ASSETS ($) 476,458,880
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 319,187,481
Accumulated undistributed investment income--net 216,391
Accumulated net realized gain (loss) on investments 22,337,667
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4(b) 134,717,341
--------------------------------------------------------------------------------
NET ASSETS ($) 476,458,880
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 41,129,398
NET ASSET VALUE, offering and redemption price per share ($) 11.58
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended August 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $26,586 foreign taxes withheld at source) 2,137,656
Interest 160,822
TOTAL INCOME 2,298,478
EXPENSES:
Management fee--Note 3(a) 1,765,197
Shareholder servicing costs--Note 3(b) 443,317
Professional fees 34,225
Custodian fees--Note 3(b) 30,653
Directors' fees and expenses--Note 3(c) 18,564
Prospectus and shareholders' reports 14,472
Registration fees 11,584
Loan commitment fees--Note 2 2,386
Interest expense--Note 2 1,577
Miscellaneous 3,829
TOTAL EXPENSES 2,325,804
INVESTMENT (LOSS) (27,326)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 24,143,004
Net realized gain (loss) on financial futures (449,893)
NET REALIZED GAIN (LOSS) 23,693,111
Net unrealized appreciation (depreciation) on investments 849,142
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 24,542,253
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 24,514,927
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
August 31, 2000 Year Ended
(Unaudited) February 29, 2000
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income (loss)--net (27,326) 510,332
Net realized gain (loss) on investments 23,693,111 13,545,186
Net unrealized appreciation (depreciation)
on investments 849,142 59,520,971
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 24,514,927 73,576,489
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (167,309) (345,766)
Net realized gain on investments (5,688,519) (49,715,408)
TOTAL DIVIDENDS (5,855,828) (50,061,174)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 157,037,039 388,258,284
Dividends reinvested 5,664,913 48,371,887
Cost of shares redeemed (187,759,201) (436,480,907)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (25,057,249) 149,264
TOTAL INCREASE (DECREASE) IN NET ASSETS (6,398,150) 23,664,579
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 482,857,030 459,192,451
END OF PERIOD 476,458,880 482,857,030
Undistributed investment income--net 216,391 411,026
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 14,113,892 36,332,414
Shares issued for dividends reinvested 477,649 4,694,022
Shares redeemed (16,814,324) (40,759,872)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (2,222,783) 266,564
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
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.
Six Months Ended
August 31, 2000 Fiscal Year Ended February,
----------------------------------------------------------------
(Unaudited) 2000 1999 1998 1997 1996
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PER SHARE DATA ($):
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period 11.14 10.66 10.15 10.22 9.56 8.67
Investment Operations:
Investment income--net .00(a,b) .01 .07 .05 .10 .10
Net realized and unrealized
gain (loss) on investments .58 1.65 .97 1.39 1.93 2.19
Total from Investment Operations .58 1.66 1.04 1.44 2.03 2.29
Distributions:
Dividends from investment income--net -- (.01) (.07) (.07) (.09) (.12)
Dividends from net realized
gain on investments (.14) (1.17) (.46) (1.22) (1.28) (1.26)
Dividends in excess of net realized
gain on investments -- -- -- (.22) -- (.02)
Total Distributions (.14) (1.18) (.53) (1.51) (1.37) (1.40)
Net asset value, end of period 11.58 11.14 10.66 10.15 10.22 9.56
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TOTAL RETURN (%) 5.18(c) 16.63 10.57 15.62 22.35 27.37
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average
net assets .49(c) 1.03 1.04 1.06 1.06 1.04
Ratio of net investment income (loss)
to average net assets (.01)(c) .11 .64 .50 .91 .91
Portfolio Turnover Rate 101.77(c) 86.41 162.98 112.32 137.38 268.40
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Net Assets, end of period
($ x 1,000) 476,459 482,857 459,192 508,562 471,660 419,240
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) NOT ANNUALIZED.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Growth Opportunity Fund, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The fund's investment objective is to
provide long-term capital growth consistent with the preservation of capital.
The Dreyfus Corporation (the "Manager") serves as the fund's investment adviser.
The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon"), 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, which are sold to the
public without a sales charge. Prior to March 22, 2000, Premier Mutual Fund
Services, Inc. was the distributor.
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. 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
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
in the 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 amount 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 discounts on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund received net
earnings credits of $5,284 during the period ended August 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 pro
visions 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 $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of borrowings.
The average daily amount of borrowings outstanding during the period ended
August 31, 2000 was approximately $45,400 with a related weighted average
annualized interest rate of 6.90%.
NOTE 3--Management Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement ("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. The Agreement provides
that if in any full fiscal year the aggregate expenses of the fund, exclusive of
taxes, brokerage fees, interest on borrowings (which in the view of Stroock,
Stroock & Lavan LLP, counsel to the fund, also includes loan commitment fees)
and extraordinary expenses, exceed 1 1/2% of the average value of the fund's
average daily net assets, the Manager will bear such excess expense. During the
period ended August 31, 2000, there was no expense reimbursement pursuant to the
Agreement.
(b) Under the Shareholder Services Plan, the fund reimburses DSC an amount not
to exceed an annual rate of .25 of 1% of the value of the fund's average daily
net assets for certain allocated expenses of providing personal services and/or
maintaining shareholder accounts. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the fund
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
and providing reports and other information, and services related to the
maintenance of shareholder accounts. During the period ended August 31, 2000,
the fund was charged $318,000 pursuant to the Shareholder Services Plan.
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 August 31, 2000, the fund was charged $82,493 pursuant to the transfer
agency agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended August 31, 2000, the fund was
charged $30,653 pursuant to the custody agreement.
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not
an "affiliated person" as defined in the Act receives an annual fee of $40,000
and an attendance fee of $6,000 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. 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 financial futures, during the period ended
August 31, 2000, amounted to $471,240,419 and $500,144,378, respectively.
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 contracts at the
close of each day's trading. Typically, 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. At August 31, 2000, there were no financial
futures contracts outstanding.
(b) At August 31, 2000, accumulated net unrealized appreciation on investments
was $134,717,341, consisting of $138,060,840 gross unrealized appreciation and
$3,343,499 gross unrealized depreciation.
At August 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
Notes
For More Information
Dreyfus Growth Opportunity Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
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 1-800-645-6561
BY MAIL Write to: The Dreyfus Family of Funds 144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation 018SA008
