DREYFUS WILSHIRE TARGET FUNDS INC, 497, 1995-01-06

DREYFUS WILSHIRE TARGET FUNDS INC
497, 1995-01-06

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FOR USE BY BANKS ONLY
December 30, 1994
DREYFUS-WILSHIRE TARGET FUNDS, INC.
Supplement to Prospectus Dated December 30, 1994
All mutual fund shares involve certain investment risks, including the
possible loss of principal.
WILS/s123094IST

DREYFUS-WILSHIRE TARGET FUNDS, INC.
PART B
(STATEMENT OF ADDITIONAL INFORMATION)
DECEMBER 30, 1994

This Statement of Additional Information, which is not a prospectus,
supplements and should be read in conjunction with the current Prospectus of
Dreyfus-Wilshire Target Funds, Inc. (the "Fund"), dated December 30, 1994,
as it may be revised from time to time. To obtain a copy of the Fund's
Prospectus, please write to the Fund at 144 Glenn Curtiss Boulevard,
Uniondale, New York 11556-0144, or call the following numbers:

Call Toll Free 1-800-645-6561
In New York City--Call 1-718-895-1206
On Long Island--Call 794-5452

Wilshire Associates Incorporated ("Wilshire") serves as the Fund's
investment adviser.

The Dreyfus Corporation ("Dreyfus") serves as the Fund's administrator.

Premier Mutual Fund Services, Inc. (the "Distributor") is the
distributor of the Fund's shares.

TABLE OF CONTENTS

Page

Investment Objective and Management Policies. . . . . . . B-2
Management of the Fund. . . . . . . . . . . . . . . . . . B-7
Investment Advisory and Administration Agreements . . . . B-10
Shareholder Services Plan . . . . . . . . . . . . . . . . B-14
Purchase of Fund Shares . . . . . . . . . . . . . . . . . B-14
Redemption of Fund Shares . . . . . . . . . . . . . . . . B-15
Shareholder Services. . . . . . . . . . . . . . . . . . . B-17
Determination of Net Asset Value. . . . . . . . . . . . . B-19
Dividends, Distributions and Taxes. . . . . . . . . . . . B-19
Performance Information . . . . . . . . . . . . . . . . . B-21
Portfolio Transactions. . . . . . . . . . . . . . . . . . B-22
Information About the Fund. . . . . . . . . . . . . . . . B-23
Custodian, Transfer and Dividend Disbursing Agent,
Counsel and Independent Accountants . . . . . . . . . . B-23
Appendix. . . . . . . . . . . . . . . . . . . . . . . . . B-24
Financial Statements. . . . . . . . . . . . . . . . . . . B-25
Report of Independent Accountants . . . . . . . . . . . . B-45
INVESTMENT OBJECTIVE AND MANAGEMENT POLICIES

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "Description of the
Fund."

Other Portfolio Securities

U.S. Government Securities--Each Portfolio may purchase securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities,
which include U.S. Treasury securities that differ in their interest rates,
maturities and times of issuance. Treasury Bills have initial maturities of
one year or less; Treasury Notes have initial maturities of one to ten
years; and Treasury Bonds generally have initial maturities of greater than
ten years. Some obligations issued or guaranteed by U.S. Government
agencies and instrumentalities, for example, Government National Mortgage
Association pass-through certificates, are supported by the full faith and
credit of the U.S. Treasury; others, such as those of the Federal Home Loan
Banks, by the right of the issuer to borrow from the Treasury; others, such
as those issued by the Federal National Mortgage Association, by
discretionary authority of the U.S. Government to purchase certain
obligations of the agency or instrumentality; and others, such as those
issued by the Student Loan Marketing Association, only by the credit of the
agency or instrumentality. These securities bear fixed, floating or
variable rates of interest. Principal and interest may fluctuate based on
generally recognized reference rates or the relationship of rates. While
the U.S. Government provides financial support to such U.S. Government-
sponsored agencies or instrumentalities, no assurance can be given that it
will always do so, since it is not so obligated by law. A Portfolio will
invest in such securities only when the Fund is satisfied that the credit
risk with respect to the issuer is minimal.

Zero Coupon Securities--Each Portfolio may invest in zero coupon U.S.
Treasury securities, which are Treasury Notes and Bonds that have been
stripped of their unmatured interest coupons, the coupons themselves and
receipts or certificates representing interests in such stripped debt
obligations and coupons. Each Portfolio also may invest in zero coupon
securities issued by corporations and financial institutions which
constitute a proportionate ownership of the issuer's pool of underlying U.S.
Treasury securities. A zero coupon security pays no interest to its holder
during its life and is sold at a discount to its face value at maturity.
The amount of the discount fluctuates with the market price of the security.

The market prices of zero coupon securities generally are more volatile than
the market prices of securities that pay interest periodically and are
likely to respond to a greater degree to changes in interest rates than non-
zero coupon securities having similar maturities and credit qualities.

Bank Obligations--Each Portfolio may purchase certificates of deposit, time
deposits, bankers' acceptances and other short-term obligations issued by
domestic banks, foreign subsidiaries of domestic banks, foreign branches of
domestic banks, and domestic and foreign branches of foreign banks, domestic
savings and loan associations and other banking institutions. With respect
to such securities issued by foreign branches of domestic banks, foreign
subsidiaries of domestic banks, and domestic and foreign branches of foreign
banks, the Portfolio may be subject to additional investment risks that are
different in some respects from those incurred by a fund which invests only
in debt obligations of U.S. domestic issuers. Such risks include possible
future political and economic developments, the possible imposition of
foreign withholding taxes on interest income payable on the securities, the
possible establishment of exchange controls or the adoption of other foreign
governmental restrictions which might adversely affect the payment of
principal and interest on these securities and the possible seizure or
nationalization of foreign deposits.

Certificates of deposit are negotiable certificates evidencing the
obligation of a bank to repay funds deposited with it for a specified period
of time.

Time deposits are non-negotiable deposits maintained in a banking
institution for a specified period of time at a stated interest rate. Each
Portfolio will invest in time deposits of domestic banks that have total
assets in excess of one billion dollars. Time deposits which may be held by
the Portfolios will not benefit from insurance from the Bank Insurance Fund
or the Savings Association Insurance Fund administered by the Federal
Deposit Insurance Corporation.

Bankers' acceptances are credit instruments evidencing the obligation
of a bank to pay a draft drawn on it by a customer. These instruments
reflect the obligation both of the bank and of the drawer to pay the face
amount of the instrument upon maturity. The other short-term obligations
may include uninsured, direct obligations bearing fixed, floating or
variable interest rates.

Repurchase Agreements--Repurchase agreements involve the acquisition by a
Portfolio of an underlying debt instrument, subject to an obligation of the
seller to repurchase, and the Portfolio to resell, the instrument at a fixed
price usually not more than one week after its purchase. The Fund's
custodian or sub-custodian will have custody of, and will hold in a
segregated account, securities acquired by a Portfolio under a repurchase
agreement. Repurchase agreements are considered by the staff of the
Securities and Exchange Commission to be loans by the Portfolio entering
into them. In an attempt to reduce the risk of incurring a loss on a
repurchase agreement, the Portfolios will enter into repurchase agreements
only with domestic banks with total assets in excess of one billion dollars,
or primary government securities dealers reporting to the Federal Reserve
Bank of New York, with respect to securities of the type in which such
Portfolio may invest, and will require that additional securities be
deposited with it if the value of the securities purchased should decrease
below resale price. Wilshire will monitor on an ongoing basis the value of
the collateral to assure that it always equals or exceeds the repurchase
price. Certain costs may be incurred by the Portfolio in connection with
the sale of the securities if the seller does not repurchase them in
accordance with the repurchase agreement. In addition, if bankruptcy
proceedings are commenced with respect to the seller of the securities,
realization on the securities by the Portfolio may be delayed or limited.
The Fund will consider on an ongoing basis the creditworthiness of the
institutions with which a Portfolio enters into repurchase agreements.

Commercial Paper and Other Short-Term Corporate Obligations--Commercial
paper consists of short-term, unsecured promissory notes issued to finance
short-term credit needs. The commercial paper purchased by the Portfolios
will consist only of direct obligations which, at the time of their
purchase, are (a) rated not lower than Prime-1 by Moody's Investors Service,
Inc., A-1 by Standard & Poor's Corporation, F-1 by Fitch Investors Service,
Inc. or Duff-1 by Duff & Phelps, Inc., (b) issued by companies having an
outstanding unsecured debt issue currently rated not lower than Aa3 by
Moody's Investors Service, Inc. or AA- by Standard & Poor's Corporation,
Fitch Investors Service, Inc. or Duff & Phelps, Inc., or (c) if unrated,
determined by Wilshire to be of comparable quality to those rated
obligations which may be purchased by such Portfolio. Each Portfolio may
purchase floating and variable rate demand notes and bonds, which are
obligations ordinarily having stated maturities in excess of one year, but
which permit the holder to demand payment of principal at any time or at
specified intervals. Variable rate demand notes include variable amount
master demand notes, which are obligations that permit the Portfolio to
invest fluctuating amounts at varying rates of interest pursuant to direct
arrangements between the Portfolio, as lender, and the borrower. These
notes permit daily changes in the amounts borrowed. As mutually agreed
between the parties, the Portfolio may increase the amount under the notes
at any time up to the full amount provided by the note agreement, or
decrease the amount, and the borrower may repay up to the full amount of the
note without penalty. Because these obligations are direct lending
arrangements between the lender and borrower, it is not contemplated that
such instruments generally will be traded, and there generally is no
established secondary market for these obligations, although they are
redeemable at face value, plus accrued interest, at any time. Accordingly,
where these obligations are not secured by letters of credit or other credit
support arrangements, the Portfolio's right to redeem is dependent on the
ability of the borrower to pay principal and interest on demand. In
connection with floating and variable rate demand obligations, Wilshire will
consider, on an ongoing basis, earning power, cash flow and other liquidity
ratios of the borrower, and the borrower's ability to pay principal and
interest on demand. Such obligations frequently are not rated by credit
rating agencies, and a Portfolio may invest in them only if at the time of
an investment the borrower meets the criteria set forth above for other
commercial paper issuers.

Management Policies

Lending Portfolio Securities--To a limited extent, each Portfolio may lend
its portfolio securities to brokers, dealers and other financial
institutions, provided it receives cash collateral which at all times is
maintained in an amount equal to at least 100% of the current market value
of the securities loaned. By lending its portfolio securities, the
Portfolio can increase its income through the investment of the cash
collateral. For purposes of this policy, the Fund considers collateral
consisting of U.S. Government securities or irrevocable letters of credit
issued by banks whose securities meet the standards for investment by the
Portfolio to be the equivalent of cash. From time to time, the Fund may
return to the borrower or a third party which is unaffiliated with the Fund,
and which is acting as a "placing broker," a part of the interest earned
from the investment of collateral received for securities loaned.

The Securities and Exchange Commission currently requires that the
following conditions must be met whenever portfolio securities are loaned:
(1) the Portfolio must receive at least 100% cash collateral from the
borrower; (2) the borrower must increase such collateral whenever the market
value of the securities rises above the level of such collateral; (3) the
Portfolio must be able to terminate the loan at any time; (4) the Portfolio
must receive reasonable interest on the loan, as well as any dividends,
interest or other distributions payable on the loaned securities, and any
increase in market value; (5) the Portfolio may pay only reasonable
custodian fees in connection with the loan; and (6) while voting rights on
the loaned securities may pass to the borrower, the Fund's Board of
Directors must terminate the loan and regain the right to vote the
securities if a material event adversely affecting the investment occurs.
These conditions may be subject to future modification.

Investment Restrictions. Each Portfolio has adopted investment
restrictions numbered 1 through 9 as fundamental policies. These
restrictions cannot be changed, as to a Portfolio, without approval by the
holders of a majority (as defined in the Investment Company Act of 1940, as
amended (the "Act")) of such Portfolio's outstanding voting shares.
Investment restrictions numbered 10 through 15 are not fundamental policies
and may be changed by vote of a majority of the Directors at any time. No
Portfolio may:

1. Invest in commodities, except that the Portfolio may purchase and
sell options, forward contracts, futures contracts, including those relating
to indexes, and options on futures contracts or indexes.

2. Purchase, hold or deal in real estate, or oil, gas or other
mineral leases or exploration or development programs, but the Portfolio may
purchase and sell securities that are secured by real estate or issued by
companies that invest or deal in real estate.

3. Borrow money, except for temporary or emergency (not leveraging)
purposes in an amount up to 15% of the value of the Portfolio's total assets
(including the amount borrowed) based on the lesser of cost or market, less
liabilities (not including the amount borrowed) at the time the borrowing is
made. While borrowings exceed 5% of the value of the Portfolio's total
assets, the Portfolio will not make any additional investments. For
purposes of this investment restriction, the entry into options, forward
contracts, futures contracts, including those relating to indexes, and
options on futures contracts or indexes shall not constitute borrowing.

4. Make loans to others, except through the purchase of debt
obligations and the entry into repurchase agreements. However, the
Portfolio may lend its portfolio securities in an amount not to exceed 33-
1/3% of the value of its total assets. Any loans of portfolio securities
will be made according to guidelines established by the Securities and
Exchange Commission and the Fund's Board of Directors.

5. Act as an underwriter of securities of other issuers, except to
the extent the Portfolio may be deemed an underwriter under the Securities
Act of 1933, as amended, by virtue of disposing of portfolio securities.

6. Invest more than 25% of its assets in the securities of issuers in
any single industry, provided there shall be no limitation on the purchase
of obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities.

7. Invest more than 5% of its assets in the obligations of any single
issuer, except that up to 25% of the value of the Portfolio's total assets
may be invested, and securities issued or guaranteed by the U.S. Government,
or its agencies or instrumentalities may be purchased, without regard to any
such limitation.

8. Hold more than 10% of the outstanding voting securities of any
single issuer. This Investment Restriction applies only with respect to 75%
of the Portfolio's total assets.

9. Issue any senior security (as such term is defined in Section
18(f) of the Act), except to the extent the activities permitted in
Investment Restriction Nos. 1, 3, 11 and 12 may be deemed to give rise to a
senior security.

10. Invest in the securities of a company for the purpose of
exercising management or control, but the Portfolio will vote the securities
it owns in its portfolio as a shareholder in accordance with its views.

11. Pledge, mortgage or hypothecate its assets, except to the extent
necessary to secure permitted borrowings and to the extent related to the
deposit of assets in escrow in connection with writing covered put and call
options and the purchase of securities on a when-issued or forward
commitment basis and collateral and initial or variation margin arrangements
with respect to options, forward contracts, futures contracts, including
those relating to indexes, and options on futures contracts or indexes.

12. Purchase, sell or write puts, calls or combinations thereof,
except as may be described in the Fund's Prospectus and this Statement of
Additional Information.

13. Purchase securities of any company having less than three years'
continuous operations (including operations of any predecessors) if such
purchase would cause the value of the Portfolio's investments in all such
companies to exceed 5% of the value of its total assets.

14. Enter into repurchase agreements providing for settlement in more
than seven days after notice or purchase securities which are illiquid, if,
in the aggregate, more than 15% of the value of the Portfolio's net assets
would be so invested.

15. Purchase securities of other investment companies, except to the
extent permitted under the Act or those received as part of a merger or
consolidation.

If a percentage restriction is adhered to at the time of investment, a
later change in percentage resulting from a change in values or assets will
not constitute a violation of such restriction.

The Fund may make commitments more restrictive than the restrictions
listed above so as to permit the sale of a Portfolio's shares in certain
states. In this regard, and while not a fundamental policy, the Fund has
undertaken that no Portfolio may invest in real estate limited partnerships.

Should the Fund determine that a commitment is no longer in the best
interest of the Portfolio and its shareholders, the Fund reserves the right
to revoke the commitment by terminating the sale of such Portfolio's shares
in the state involved.

MANAGEMENT OF THE FUND

Directors and officers of the Fund, together with information as to
their principal business occupations during at least the last five years,
are shown below. Each Director who is deemed to be an "interested person"
of the Fund, as defined in the Act, is indicated by an asterisk.

Directors of the Fund

*DAVID P. FELDMAN, Director. Corporate Vice President-Investment Management
of AT&T. He is also a trustee of Corporate Property Investors, a real
estate investment company. His address is One Oak Way, Berkeley
Heights, New Jersey 07922.

JACK R. MEYER, Director. President and Chief Executive Officer of Harvard
Management Company, an investment management company, since September
1990. For more than five years prior thereto, he was Treasurer and
Chief Investment Officer of The Rockefeller Foundation. His address is
600 Atlantic Avenue, Boston, Massachusetts 02210.

JOHN SZARKOWSKI, Director. Director Emeritus of Photography at The Museum
of Modern Art. Consultant in Photography. His address is Bristol Road
Box 221, East Chatham, New York 12060.

ANNE WEXLER, Director. Chairman of the Wexler Group, consultants
specializing in government relations and public affairs. She is also a
director of American Cyanamid Company, Alumax, The Continental
Corporation, Comcast Corporation and The New England Electric System,
and a member of the Board of the Carter Center of Emory University, the
Council of Foreign Relations, the National Park Foundation, Visiting
Committee of the John F. Kennedy School of Government at Harvard
University and the Board of Visitors of the University of Maryland
School of Public Affairs. Her address is c/o The Wexler Group, 1317 F
Street, N.W., Suite 600, Washington, D.C. 20004.

Each Director is also a director of Dreyfus Stock Index Fund, Peoples
Index Fund, Inc., Peoples S&P MidCap Index Fund, Inc. and Dreyfus Edison
Electric Index Fund, Inc. Mr. Feldman and Ms. Wexler are also directors of
Dreyfus New Jersey Municipal Bond Fund, Inc. and Premier Global Investing,
managing general partners of Dreyfus Strategic Growth, L.P. and Dreyfus
Global Growth, L.P., and trustees of Dreyfus Florida Intermediate Municipal
Bond Fund, Dreyfus Florida Municipal Money Market Fund, Dreyfus Investors
GNMA Fund, Dreyfus New York Insured Tax Exempt Bond Fund, Dreyfus 100% U.S.
Treasury Intermediate Term Fund, Dreyfus 100% U.S. Treasury Long Term Fund,
Dreyfus 100% U.S. Treasury Money Market Fund and Dreyfus 100% U.S. Treasury
Short Term Fund. Mr. Feldman is also a director of Dreyfus Strategic
Governments Income, Inc., Dreyfus BASIC Money Market Fund, Inc., Dreyfus A
Bonds Plus, Inc., Dreyfus Balanced Fund, Inc., Dreyfus Capital Growth Fund
(A Premier Fund), Dreyfus Global Bond Fund, Inc., Dreyfus Growth and Income
Fund, Inc., Dreyfus Growth Opportunity Fund, Inc., Dreyfus International
Equity Fund, Inc., Dreyfus International Recovery Fund, Inc. and Dreyfus
Money Market Instruments, Inc. and a trustee of Dreyfus BASIC U.S.
Government Money Market Fund, Dreyfus California Intermediate Municipal Bond
Fund, Dreyfus Connecticut Intermediate Municipal Bond Fund, Dreyfus
Massachusetts Intermediate Municipal Bond Fund, Dreyfus New Jersey
Intermediate Municipal Bond Fund, Dreyfus Pennsylvania Intermediate
Municipal Bond Fund, Dreyfus Strategic Income, Dreyfus Strategic Investing,
Dreyfus Institutional Money Market Fund and Dreyfus Variable Investment
Fund.

For so long as the Fund's plan described in the section captioned
"Shareholder Services Plan" remains in effect, the Directors of the Fund who
are not "interested persons" of the Fund, as defined in the Act, will be
selected and nominated by the Directors who are not "interested persons" of
the Fund.

The Fund does not pay any remuneration to its officers and Directors
other than fees and expenses to those Directors who are not officers,
directors, employees or holders of 5% or more of the outstanding voting
securities of Wilshire or Dreyfus, or their affiliates, which totalled
$17,331 for the fiscal year ended August 31, 1994 for such Directors as a
group.

Officers of the Fund

MARIE E. CONNOLLY, President and Treasurer. President and Chief Operating
Officer and a Director of the Distributor and an officer of other
investment companies advised or administered by Dreyfus. From December
1991 to July 1994, she was President and Chief Compliance Officer of
Funds Distributor, Inc., a wholly-owned subsidiary of The Boston
Company, Inc. Prior to December 1991, she served as Vice President and
Controller, and later as Senior Vice President, of The Boston Company
Advisors, Inc.

JOHN E. PELLETIER, Vice President and Secretary. Senior Vice President -
General Counsel of the Distributor and an officer of other investment
companies advised or administered by Dreyfus. From February 1992 to
July 1994, he served as Counsel for The Boston Company Advisors, Inc.
From August 1990 to February 1992, he was employed as an Associate at
Ropes & Gray, and prior to August 1990, he was employed as an Associate
at Sidley & Austin.

JOSEPH F. TOWER, III, Assistant Treasurer. Senior Vice President, Treasurer
and Chief Financial Officer of the Distributor and an officer of other
investment companies advised or administered by Dreyfus. From July
1988 to August 1994, he was employed by The Boston Company, Inc. where
he held various management positions in the Corporate Finance and
Treasury areas.

FREDERICK C. DEY, Vice President and Assistant Treasurer. Senior Vice
President of the Distributor and an officer of other investment
companies advised or administered by Dreyfus. From 1988 to August
1994, he was manager of the High Performance Fabric Division of Springs
Industries Inc.

JOHN J. PYBURN, Assistant Treasurer. Vice President of the Distributor and
an officer of other investment companies advised or administered by
Dreyfus. From 1984 to July 1994, he was Assistant Vice President in
the Mutual Fund Accounting Department of Dreyfus.

PAUL FURCINITO, Assistant Secretary. Assistant Vice President of the
Distributor and an officer of other investment companies advised or
administered by Dreyfus. From January 1992 to July 1994, he was a
Senior Legal Product Manager, and, from January 1990 to January 1992,
he was a mutual fund accountant for The Boston Company Advisors, Inc.

ERIC B. FISCHMAN, Vice President and Assistant Secretary. Associate General
Counsel of the Distributor and an officer of other investment companies
advised or administered by Dreyfus. From September 1992 to August
1994, he was an attorney with the Board of Governors of the Federal
Reserve System.

RUTH D. LEIBERT, Assistant Secretary. Assistant Vice President of the
Distributor and an officer of other investment companies advised or
administered by Dreyfus. From March 1992 to July 1994, she was a
Compliance Officer for The Managers Funds, a registered investment
company. From March 1990 until September 1991, she was Development
Director of The Rockland Center for the Arts and, prior thereto, was
employed as a Research Assistant for the Bureau of National Affairs.

The address of each officer of the Fund is 200 Park Avenue, New York,
New York 10166.

Directors and officers of the Fund, as a group, owned less than 1% of
the Fund's shares of Common Stock outstanding on October 10, 1994.

The following persons are known by the Fund to own of record 5% or more
of a Portfolio's voting securities outstanding on October 10, 1994:

Large Company Growth Portfolio: Charles Schwab & Company, 101
Montgomery Street, San Francisco, California 94104--42.9%; and Cincinnati
Bell Collectively Bargained Retirees Health Care Trust, 201 East 4th Street,
Cincinnati, Ohio 45202--34.4%.

Large Company Value Portfolio: Cincinnati Bell Collectively Bargained
Retirees Health Care Trust, 201 East 4th Street, Cincinnati, Ohio 45202--
61.4%; Charles Schwab & Company, 101 Montgomery Street, San Francisco,
California 94104--14.7%; and Jennie Edmundson Memorial Hospital, 933 East
Pierce Street, Council Bluffs, Iowa 51503--6.3%.

Small Company Growth Portfolio: Charles Schwab & Company, 101
Montgomery Street, San Francisco, California 94104--29.9%; Northland
Insurance Company, 1295 Northland Drive, Mendota, MN 55120--10.4%; and
Cincinnati Bell Collectively Bargained Retirees Health Care Trust, 201 East
4th Street, Cincinnati, Ohio 45202--8.8%.

Small Company Value Portfolio: Dreyfus Trust Company, as trustee for
Blue Cross and Blue Shield of Minnesota Employee Savings Plan, 144 Glenn
Curtiss Boulevard, Uniondale, New York 11556--28.0%; Charles Schwab &
Company, 101 Montgomery Street, San Francisco, California 94104--21.0%;
Cincinnati Bell Collectively Bargained Retirees Health Care Trust, 201 East
4th Street, Cincinnati, Ohio 45202--13.2%; Dreyfus Trust Company, as trustee
for FDC Incentive Savings Plan, 144 Glenn Curtiss Boulevard, Uniondale, New
York 11556--9.4%; and Dreyfus Trust Company, as trustee for Medline
Industries, Inc. 401(k) Profit Sharing Plan, 144 Glenn Curtiss Boulevard,
Uniondale, New York 11556--5.3%.

A shareholder that owns, directly or indirectly, 25% or more of a
Portfolio's voting securities may be deemed to be a "control person" (as
defined in the Act) of such Portfolio.

INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "Management of the Fund."

Investment Advisory Agreement. Wilshire provides investment advisory
services to each Portfolio pursuant to the Investment Advisory Agreement
(the "Advisory Agreement") dated August 12, 1992 (as revised September 17,
1992), with the Fund. As to each Portfolio, the Advisory Agreement is
subject to annual approval by (i) the Fund's Board of Directors or (ii) vote
of a majority (as defined in the Act) of the outstanding voting securities
of such Portfolio, provided that in either event the continuance also is
approved by a majority of the Directors who are not "interested persons" (as
defined in the Act) of the Fund or Wilshire, by vote cast in person at a
meeting called for the purpose of voting on such approval. As to each
Portfolio, the Advisory Agreement is terminable without penalty, on 60 days'
notice, by the Fund's Board of Directors or by vote of the holders of a
majority of such Portfolio's shares, or, on not less than 90 days' notice,
by Wilshire. The Advisory Agreement will terminate automatically, as to the
relevant Portfolio, in the event of its assignment (as defined in the Act).

The following persons are officers and directors of Wilshire: Dennis
A. Tito, President and Chief Executive Officer; Gilbert Hammer, Senior Vice
President; Robert J. Raab, Jr., Senior Vice President; Thomas D. Stevens,
Senior Vice President; Stephen L. Nesbitt, Senior Vice President; Rosalind
M. Hewsenian, Vice President; Robert C. Kuberek, Vice President; Howard M.
Yata, Vice President; Cecilia I. Loo, Vice President; Alan L. Manning, Vice
President, General Counsel and Secretary; and San Slawson, Vice President
and Treasurer.

Wilshire provides day-to-day management of each Portfolio's investments
in accordance with the stated policies of the Portfolio, subject to the
approval of the Fund's Board of Directors. Wilshire and Dreyfus provide the
Fund with Portfolio Managers who are authorized by the Board of Directors to
execute purchases and sales of securities. The Fund's Portfolio Managers
are Richard L. Dixon and Thomas D. Stevens. Wilshire and Dreyfus each
maintain a research department with a professional staff of portfolio
managers and securities analysts who provide research services for the Fund.

All purchases and sales are reported for the Board's review at the meeting
subsequent to such transactions.

As compensation for Wilshire's services, the Fund has agreed to pay
Wilshire a monthly advisory fee at the annual rate of .10 of 1% of the value
of each Portfolio's average daily net assets. All fees and expenses are
accrued daily and deducted before declaration of dividends to investors.
For the period September 30, 1992 (commencement of operations for all
Portfolios except Small Company Growth Portfolio which commenced operations
on October 1, 1992) through August 31, 1993, and for the fiscal year ended
August 31, 1994, the advisory fees for each Portfolio payable to Wilshire
were as follows:

Fee Paid For Period
Ended August 31, 1993
Advisory Reduction Net
Portfolio Fee Payable in Fee Fee Paid
- --------- ----------- --------- --------
Large Company Growth Portfolio $7,486 $7,486 -0-

Large Company Value Portfolio $5,979 $5,979 -0-

Small Company Growth Portfolio $6,308 $6,308 -0-

Small Company Value Portfolio $6,886 $6,886 -0-

Fee Paid For Fiscal Year
Ended August 31, 1994
Advisory Reduction Net
Portfolio Fee Payable in Fee Fee Paid
- --------- ----------- --------- --------
Large Company Growth Portfolio $ 8,137 $ 8,137 -0-

Large Company Value Portfolio $11,133 $11,133 -0-

Small Company Growth Portfolio $ 8,397 $ 8,397 -0-

Small Company Value Portfolio $20,919 $20,919 -0-

Administration Agreement. Pursuant to the Administration Agreement
(the "Administration Agreement") dated August 24, 1994 with the Fund,
Dreyfus furnishes the Fund clerical help and accounting, data processing,
bookkeeping, internal auditing and legal services and certain other services
required by the Fund, prepares reports to each Portfolio's shareholders, tax
returns, reports to and filings with the Securities and Exchange Commission
and state Blue Sky authorities, and generally assists in all aspects of the
Fund's operations, other than providing investment advice. Dreyfus bears
all expenses in connection with the performance of its services.

As to each Portfolio, the Administration Agreement will continue in
effect until May 14, 1995, and thereafter is subject to annual approval by
(i) the Fund's Board of Directors or (ii) vote of a majority (as defined in
the Act) of such Portfolio's outstanding voting securities, provided that in
either event the continuance also is approved by a majority of the Directors
who are not "interested persons" (as defined in the Act) of the Fund or
Dreyfus, by vote cast in person at a meeting called for the purpose of
voting on such approval. After May 14, 1995, as to each Portfolio, the
Administration Agreement is terminable without penalty, on 60 days' notice,
by the Fund's Board of Directors or by vote of the holders of a majority of
such Portfolio's shares, or, on not less than 90 days' notice by Dreyfus.
The Administration Agreement will terminate automatically, as to the
relevant Portfolio, in the event of its assignment (as defined in the Act).

The following persons are officers and/or directors of Dreyfus: Howard
Stein, Chairman of the Board and Chief Executive Officer; Julian M.
Smerling, Vice Chairman of the Board of Directors; Joseph S. DiMartino,
President and a director; W. Keith Smith, Chief Operating Officer and a
director; Paul H. Snyder, Vice President--Finance and Chief Financial
Officer; Daniel C. Maclean III, General Counsel and Vice President;
Robert F. Dubuss, Vice President; Elie M. Genadry, Vice President--
Institutional Sales; Henry D. Gottmann, Vice President--Retail Sales and
Service; Jeffrey N. Nachman, Vice President--Fund Administration; Kirk V.
Stumpp, Vice President--New Product Development; Philip L. Toia, Vice
Chairman--Operations and Administration; Lawrence S. Kash, Vice Chairman--
Distribution; Jay R. DeMartine, Vice President--Retail Marketing; Barbara E.
Casey, Vice President--Retirement Services; Diane M. Coffey, Vice President-
- -Corporate Communications; Katherine C. Wickham, Vice President--Human
Resources; Maurice Bendrihem--Controller; Mark N. Jacobs, Vice President--
Legal and Secretary; Christine Pavalos--Assistant Secretary; and Mandell L.
Berman, Alvin E. Friedman, Lawrence M. Greene, Frank V. Cahouet, Abigail Q.
McCarthy and David B. Truman, directors.

As compensation for Dreyfus' services, the Fund has agreed to pay
Dreyfus a monthly administration fee at the annual rate of .20 of 1% of the
value of each Portfolio's average daily net assets. For the period
September 30, 1992 (commencement of operations for all Portfolios except
Small Company Growth Portfolio which commenced operations on October 1,
1992) through August 31, 1993, and for the fiscal year ended August 31,
1994, the administration fees payable to Dreyfus for each Portfolio were as
follows:

Fee Paid For Period
Ended August 31, 1993
Administration Reduction Net
Portfolio Fee Payable in Fee Fee Paid
- --------- -------------- --------- --------
Large Company Growth Portfolio $14,972 $14,972 -0-

Large Company Value Portfolio $11,958 $11,958 -0-

Small Company Growth Portfolio $12,617 $12,617 -0-

Small Company Value Portfolio $13,772 $13,772 -0-

Fee Paid For Fiscal Year
Ended August 31, 1994
Administration Reduction Net
Portfolio Fee Payable in Fee Fee Paid
- --------- -------------- --------- --------
Large Company Growth Portfolio $16,275 $16,275 -0-

Large Company Value Portfolio $22,267 $22,267 -0-

Small Company Growth Portfolio $16,793 $16,793 -0-

Small Company Value Portfolio $41,838 $41,838 -0-

Expenses and Expense Information. All expenses incurred in the
operation of the Fund are borne by the Fund, except to the extent
specifically assumed by Wilshire or Dreyfus. The expenses borne by the Fund
include: organizational costs, taxes, interest, brokerage fees and
commissions, if any, fees of Directors who are not officers, directors,
employees or holders of 5% or more of the outstanding voting securities of
Wilshire or Dreyfus or any of their affiliates, Securities and Exchange
Commission fees, state Blue Sky qualification fees, advisory and
administration fees, charges of custodians, transfer and dividend disbursing
agents' fees, certain insurance premiums, industry association fees, outside
auditing and legal expenses, costs of maintaining the Fund's existence,
costs of independent pricing services, costs attributable to investor
services (including, without limitation, telephone and personnel expenses),
costs of shareholders' reports and meetings, costs of preparing and printing
prospectuses and statements of additional information for regulatory
purposes and for distribution to existing shareholders, and any
extraordinary expenses. Expenses attributable to a particular Portfolio are
charged against the assets of that Portfolio; other expenses of the Fund are
allocated between the Portfolio on the basis determined by the Board of
Directors, including, but not limited to, proportionately in relation to the
net assets of each Portfolio.

As to each Portfolio, Wilshire and Dreyfus have agreed that if in any
fiscal year the aggregate expenses of the Portfolio, exclusive of taxes,
brokerage, interest on borrowings and (with the prior written consent of the
necessary state securities commissions) extraordinary expenses, but
including the advisory and administration fees, exceed the expense
limitation of any state having jurisdiction over the Fund, the Fund may
deduct from the payments to be made to each of Wilshire and Dreyfus, or
Dreyfus will bear, such excess expense in proportion to their investment
advisory fee and administration fee to the extent required by state law.
Such deduction or payment, if any, will be estimated daily, and reconciled
and effected or paid, as the case may be, on a monthly basis.

The aggregate of the fees payable to Wilshire and Dreyfus is not
subject to reduction as the value of a Portfolio's net assets increases.

SHAREHOLDER SERVICES PLAN

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "Shareholder Services
Plan."

The Fund has adopted a Shareholder Services Plan (the "Plan") pursuant
to which the Fund reimburses Dreyfus Service Corporation, a wholly-owned
subsidiary of Dreyfus, 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 an
answering shareholder inquiries regarding the Fund and providing reports and
other information, and services related to the maintenance of shareholder
accounts.

A quarterly report of the amounts expended under the Plan, and the
purposes for which such expenditures were incurred, must be made to the
Directors for their review. In addition, the Plan provides that material
amendments of the Plan must be approved by the Board of Directors, and by
the Directors who are not "interested persons" (as defined in the Act) of
the Fund and have no direct or indirect financial interest in the operation
of the Plan, by vote cast in person at a meeting called for the purpose of
considering such amendments. The Plan is subject to annual approval by such
vote of the Directors cast in person at a meeting called for the purpose of
voting on the Plan. The Plan is terminable at any time by vote of a
majority of the Directors who are not "interested persons" and have no
direct or indirect financial interest in the operation of the Plan.

For the fiscal year ended August 31, 1994, the following amounts were
charged to each Portfolio under the Plan:

Large Company Growth Portfolio -- $19,030
Large Company Value Portfolio -- $27,242
Small Company Growth Portfolio -- $16,387
Small Company Value Portfolio -- $52,010

PURCHASE OF FUND SHARES

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "How to Buy Fund Shares."

The Distributor. The Distributor serves as the Fund's distributor
pursuant to an agreement which is renewable annually. The Distributor also
acts as distributor for the other funds in the Dreyfus Family of Funds and
for certain other investment companies.

Transactions Through Securities Dealers. Fund shares may be purchased
and redeemed through securities dealers which may charge a nominal
transaction fee for such services. Some dealers will place the Fund's
shares in an account with their firm. Dealers also may require that the
customer invest more than the $1,000 minimum investment; the customer not
take physical delivery of share certificates; the customer not request
redemption checks to be issued in the customer's name; fractional shares not
be purchased; or other conditions.

There is no sales or service charge by the Fund or the Distributor,
although investment dealers, banks and other institutions may make
reasonable charges to investors for their services. The services provided
and the applicable fees are established by each dealer or other institution
acting independently of the Fund. The Fund has been given to understand
that these fees may be charged for customer services including, but not
limited to, same-day investment of client funds; same-day access to client
funds; advice to customers about the status of their accounts, yield
currently being paid or income earned to date; provision of periodic account
statements showing security and money market positions; other services
available from the dealer, bank or other institution; and assistance with
inquiries related to their investment. Any such fees will be deducted from
the investor's account monthly and on smaller accounts could constitute a
substantial portion of the distribution. Small, inactive, long-term
accounts involving monthly service charges may not be in the best interest
of investors. Investors should be aware that they may purchase shares of
the Fund directly from the Fund without imposition of any maintenance or
service charges, other than those already described herein. In some states,
banks or other financial institutions effecting transactions in Fund shares
may be required to register as dealers pursuant to state law.

REDEMPTION OF FUND SHARES

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "How to Redeem Fund
Shares."

Wire Redemption Privilege. By using this Privilege, the investor
authorizes The Shareholder Services Group, Inc. (the "Transfer Agent") to
act on wire or telephone redemption instructions from any person
representing himself or herself to be the investor, and reasonably believed
by the Transfer Agent to be genuine. Ordinarily, the Fund will initiate
payment for shares redeemed pursuant to this Privilege on the next business
day after receipt if the Transfer Agent receives the redemption request in
proper form. Redemption proceeds will be transferred by Federal Reserve
wire only to the commercial bank account specified by the investor on the
Account Application or Shareholder Services Form. Redemption proceeds, if
wired, must be in the amount of $1,000 or more and will be wired to the
investor's account at the bank of record designated in the investor's file
at the Transfer Agent, if the investor's bank is a member of the Federal
Reserve System, or to a correspondent bank if the investor's bank is not a
member. Fees ordinarily are imposed by such bank and usually are borne by
the investor. Immediate notification by the correspondent bank to the
investor's bank is necessary to avoid a delay in crediting the funds to the
investor's bank account.

Investors with access to telegraphic equipment may wire redemption
requests to the Transfer Agent by employing the following transmittal code
which may be used for domestic or overseas transmissions:

Transfer Agent's
Transmittal Code Answer Back Sign
---------------- ----------------
144295 144295 TSSG PREP

Investors who do not have direct access to telegraphic equipment may
have the wire transmitted by contacting a TRT Cables operator at 1-800-654-
7171, toll free. Investors should advise the operator that the above
transmittal code must be used and should also inform the operator of the
Transfer Agent's answer back sign.

To change the commercial bank or account designated to receive wire
redemption proceeds, a written request must be sent to the Transfer Agent.
This request must be signed by each shareholder, with each signature
guaranteed as described below under "Stock Certificates; Signatures."

Stock Certificates; Signatures. Any certificates representing Fund
shares to be redeemed must be submitted with the redemption request.
Written redemption requests must be signed by each shareholder, including
each holder of a joint account, and each signature must be guaranteed.
Signatures on endorsed certificates submitted for redemption also must be
guaranteed. The Transfer Agent has adopted standards and procedures
pursuant to which signature-guarantees in proper form generally will be
accepted from domestic banks, brokers, dealers, credit unions, national
securities exchanges, registered securities associations, clearing agencies
and savings associations, as well as from participants in the New York Stock
Exchange Medallion Signature Program, the Securities Transfer Agents
Medallion Program ("STAMP") and the Stock Exchanges Medallion Program.
Guarantees must be signed by an authorized signatory of the guarantor and
"Signature-Guaranteed" must appear with the signature. The Transfer Agent
may request additional documentation from corporations, executors,
administrators, trustees or guardians, and may accept other suitable
verification arrangements from foreign investors, such as consular
verification. For more information with respect to signature-guarantees,
please call one of the telephone numbers listed on the cover.

Redemption Commitment. The Fund has committed itself to pay in cash
all redemption requests by any shareholder of record, limited in amount
during any 90-day period to the lesser of $250,000 or 1% of the value of the
Portfolio's net assets at the beginning of such period. Such commitment is
irrevocable without the prior approval of the Securities and Exchange
Commission. In the case of requests for redemption in excess of such
amount, the Board of Directors reserves the right to make payments in whole
or in part in securities or other assets in case of an emergency or any time
a cash distribution would impair the liquidity of the Fund to the detriment
of the existing shareholders. In such event, the securities would be
readily marketable, to the extent available, and would be valued in the same
manner as the Portfolio's investment securities are valued. If the
recipient sold such securities, brokerage charges would be incurred.

Suspension of Redemptions. The right of redemption may be suspended or
the date of payment postponed (a) during any period when the New York Stock
Exchange is closed (other than customary weekend and holiday closings), (b)
when trading in the markets the Fund ordinarily utilizes is restricted, or
when an emergency exists as determined by the Securities and Exchange
Commission so that disposal of the Fund's investments or determination of
its net asset value is not reasonably practicable, or (c) for such other
periods as the Securities and Exchange Commission by order may permit to
protect the Fund's shareholders.

SHAREHOLDER SERVICES

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "Shareholder Services."

Exchange Privilege. A 1% redemption fee will be charged upon an
exchange of shares where the exchange occurs within the initial six-month
period following the opening of the account from which the exchange is made.

Shares of other Portfolios or funds purchased by exchange will be purchased
on the basis of relative net asset value per share as follows:

A. Exchanges for shares of funds that are offered without a sales
load will be made without a sales load.

B. Shares of funds purchased without a sales load may be exchanged
for shares of other funds sold with a sales load, and the applicable sales
load will be deducted.

C. Shares of funds purchased with a sales load may be exchanged
without a sales load for shares of other funds sold without a sales load.

D. Shares of funds purchased with a sales load, shares of funds
acquired by a previous exchange from shares purchased with a sales load, and
additional shares acquired through reinvestment of dividends or
distributions of any such funds (collectively referred to herein as
"Purchased Shares") may be exchanged for shares of other funds sold with a
sales load (referred to herein as "Offered Shares"), provided that, if the
sales load applicable to the Offered Shares exceeds the maximum sales load
that could have been imposed in connection with the Purchased Shares (at the
time the Purchased Shares were acquired), without giving effect to any
reduced loads, the difference will be deducted.

To accomplish an exchange under item D above, shareholders must notify
the Transfer Agent of their prior ownership of fund shares and their account
number.

To use this Privilege, an investor must give exchange instructions to
the Transfer Agent in writing, by wire or by telephone. Telephone exchanges
may be made only if the appropriate "YES" box has been checked on the
Account Application or a separate signed Shareholder Services Form is on
file with the Transfer Agent. By using this Privilege, the investor
authorizes the Transfer Agent to act on telephonic, telegraphic or written
exchange instructions from any person representing himself or herself to be
the investor and reasonably believed by the Transfer Agent to be genuine.
Telephone exchanges may be subject to limitations as to the amount involved
or the number of telephone exchanges permitted. Shares issued in
certificate form are not eligible for telephone exchange.

To establish a Personal Retirement Plan by exchange, shares of the
Portfolio or fund being exchanged must have a value of at least the minimum
initial investment required for the Portfolio or fund into which the
exchange is being made. For Dreyfus-sponsored Keogh Plans, IRAs and IRAs
set up under a Simplified Employee Pension Plan ("SEP-IRAs") with only one
participant, the minimum initial investment is $750. To exchange shares
held in Corporate Plans, 403(b)(7) Plans and SEP-IRAs with more than one
participant, the minimum initial investment is $100 if the plan has at least
$2,500 invested among the funds in the Dreyfus Family of the Funds. To
exchange shares held in Personal Retirement Plans, the shares exchanged must
have a current value of at least $100.

This Privilege is available to shareholders resident in any state in
which shares of the Portfolio or fund being acquired may legally be sold.
Shares may be exchanged only between accounts having identical names and
other identifying designations.

The Fund reserves the right to reject any exchange request in whole or
in part. The Exchange Privilege may be modified or terminated at any time
upon notice to shareholders.

Corporate Pension/Profit-Sharing and Personal Retirement Plans. The
Fund makes available to corporations a variety of prototype pension and
profit-sharing plans including a 401(k) Salary Reduction Plan. In addition,
the Fund makes available Keogh Plans, IRAs, including SEP-IRAs and IRA
"Rollover Accounts," and 403(b)(7) Plans. Plan support services also are
available. Investors can obtain details on the various plans by calling the
following numbers toll free: for Keogh Plans, please call 1-800-358-5566;
for IRAs and IRA "Rollover Accounts," please call 1-800-645-6561; for SEP-
IRAs, 401(k) Salary Reduction Plans and 403(b)(7) Plans, please call 1-800-
322-7880.

Investors who wish to purchase a Portfolio's shares in conjunction with
a Keogh Plan, a 403(b)(7) Plan or an IRA, including an SEP-IRA, may request
from the Distributor forms for adoption of such plans.

The entity acting as custodian for Keogh Plans, 403(b)(7) Plans or IRAs
may charge a fee, payment of which could require the liquidation of shares.
All fees charged are described in the appropriate form.

Shares may be purchased in connection with these plans only by direct
remittance to the entity acting as custodian. Purchases for these plans may
not be made in advance of receipt of funds.

The minimum initial investment for corporate plans, Salary Reduction
Plans, 403(b)(7) Plans and SEP-IRAs with more than one participant, is
$2,500 with no minimum or subsequent purchases. The minimum initial
investment for Dreyfus-sponsored Keogh Plans, IRAs, SEP-IRAs and 403(b)(7)
Plans with only one participant, is normally $750, with no minimum on
subsequent purchases. Individuals who open an IRA may also open a non-
working spousal IRA with a minimum investment of $250.

The investor should read the Prototype Retirement Plan and the
appropriate form of Custodial Agreement for further details on eligibility,
service fees and tax implications, and should consult a tax adviser.

DETERMINATION OF NET ASSET VALUE

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "How to Buy Fund Shares."

Valuation of Portfolio Securities. Each Portfolio's investment
securities are valued at the last sale price on the securities exchange or
national securities market on which such securities primarily are traded.
Securities not listed on an exchange or national securities market, or
securities in 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. Short-term investments are carried at amortized cost, which
approximates value. Any securities or other assets for which recent market
quotations are not readily available are valued at fair value as determined
in good faith by the Board of Directors. Expenses and fees, including the
advisory and administration fees, are accrued daily and taken into account
for the purpose of determining the net asset value of each Portfolio's
shares.

New York Stock Exchange Closings. The holidays (as observed) on which
the New York Stock Exchange is closed currently are: New Year's Day,
Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving and Christmas.

DIVIDENDS, DISTRIBUTION AND TAXES

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "Dividends, Distributions
and Taxes."

Management of the Fund believes that each Portfolio qualified for the
fiscal year ended August 31, 1994 as a "regulated investment company" under
the Internal Revenue Code of 1986, as amended (the "Code"). Each Portfolio
intends to continue to so qualify as long as such qualification is in the
best interests of its shareholders. Qualification as a regulated investment
company relieves the Portfolio from any liability for Federal income taxes
to the extent its earnings are distributed in accordance with the applicable
provisions of the Code. The term "regulated investment company" does not
imply the supervision of management or investment practices or policies by
any government agency.

Depending on the composition of a Portfolio's income, all or a portion
of the dividends paid by such Portfolio from net investment income may
qualify for the dividends received deduction allowable to certain U.S.
corporate shareholders ("dividends received deduction"). In general,
dividend income of a Portfolio distributed to qualifying corporate
shareholders will be eligible for the dividends received deduction only to
the extent that (i) such Portfolio's income consists of dividends paid by
U.S. corporations and (ii) the Portfolio would have been entitled to the
dividends received deduction with respect to such dividend income if the
Portfolio were not a regulated investment company. The dividends received
deduction for qualifying corporate shareholders may be further reduced if
the shares of the Portfolio held by them with respect to which dividends are
received are treated as debt-financed or deemed to have been held for less
than 46 days. In addition, the Code provides other limitations with respect
to the ability of a qualifying corporate shareholder to claim the dividends
received deduction in connection with holding a Portfolio's shares.

Any dividend or distribution paid shortly after an investor's purchase
may have the effect of reducing the aggregate net asset value of his shares
below the cost of his investment. Such a dividend or distribution would be
a return on investment in an economic sense, although taxable as stated in
the Fund's Prospectus. In addition, the Code provides that if a shareholder
holds shares of the Fund for six months or less and has received a capital
gain distribution with respect to such shares, any loss incurred on the sale
of such shares will be treated as a long-term capital loss to the extent of
the capital gain distribution received.

If a shareholder holds shares of a Portfolio while holding an
offsetting short position in a regulated futures contract or an option in
such regulated futures contract, recently proposed Internal Revenue Service
regulations require any losses on the disposition of Portfolio shares to be
deferred to the extent of any unrealized appreciation in the short position.

In addition, these regulations limit a shareholder's ability to claim the
corporate dividends received deduction if such short positions are held
against Fund shares.

Ordinarily, gains and losses realized from portfolio transactions will
be treated as capital gain or loss. All or a portion of the gain realized
from engaging in "conversion transactions" may be treated as ordinary income
under Section 1258. "Conversion transactions" are defined to include
certain forward, futures, option and "straddle" transactions, transactions
marketed or sold to produce capital gains, or transactions described in
Treasury regulations to be issued in the future.

Under Section 1256 of the Code, gain or loss realized by a Portfolio
from certain financial futures transactions will be treated as 60% long-term
capital gain or loss and 40% short-term capital gain or loss. Gain or loss
will arise upon the exercise or lapse of such futures as well as from
closing transactions. In addition, any such futures remaining unexercised
at the end of the Portfolio's taxable year will be treated as sold for their
then fair market value, resulting in additional gain or loss to such
Portfolio characterized in the manner described above.

Offsetting positions held by a Portfolio involving financial futures
may constitute "straddles." Straddles are defined to include "offsetting
positions" in actively traded personal property. The tax treatment of
straddles is governed by Sections 1092 and 1258 of the Code, which, in
certain circumstances, overrides or modifies the provisions of Section 1256.

As such, all or a portion of any short or long-term capital gain from
certain "straddle" and/or conversion transactions may be recharacterized to
ordinary income.

If a Portfolio were treated as entering into straddles by reason of its
futures transactions, such straddles could be characterized as "mixed
straddles" if the futures transactions comprising such straddles were
governed by Section 1256 of the Code. The Portfolio may make one or more
elections with respect to "mixed straddles." Depending upon which election
is made, if any, the results to the Portfolio may differ. If no election is
made, to the extent the straddle rules apply to positions established by the
Portfolio, losses realized by such Portfolio will be deferred to the extent
of unrealized gain in any offsetting positions. Moreover, as a result of
the straddle and the conversion transaction rules, short-term capital loss
on straddle positions may be recharacterized as long-term capital loss, and
long-term capital gain may be recharacterized as short-term capital gain or
ordinary income.

Investment by a Portfolio in securities issued or acquired at a
discount, or providing for deferred interest or for payment of interest in
the form of additional obligations could under special tax rules affect the
amount, timing and character of distributions to shareholders by causing
such Portfolio to recognize income prior to the receipt of cash payments.
For example, the Portfolio could be required to accrue a portion of the
discount (or deemed discount) at which the securities were issued each year
and to distribute such income in order to maintain its qualification as a
regulated investment company. In such case, such Portfolio may have to
dispose of securities which it might otherwise have continued to hold in
order to generate cash to satisfy these distribution requirements.

PERFORMANCE INFORMATION

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "Performance
Information."

The Large Company Growth Portfolio's average annual total return for
the 1 and 1.921 year periods ended August 31, 1994 was 6.34% and 4.56%,
respectively. The Large Company Value Portfolio's average annual total
return for the 1 and 1.921 year periods ended August 31, 1994 was -3.61% and
9.24%, respectively. The Small Company Growth Portfolio's average annual
total return for the 1 and 1.918 year periods ended August 31, 1994 was
5.20% and 17.02%, respectively. The Small Company Value Portfolio's average
annual total return for the 1 and 1.921 year periods ended August 31, 1994
was -0.01% and 9.82%, respectively. Average annual total return is
calculated by determining the ending redeemable value of an investment
purchased at net asset value per share with a hypothetical $1,000 payment
made at the beginning of the period (assuming the reinvestment of dividends
and distributions), dividing by the amount of the initial investment, taking
the "n" th root of the quotient (where "n" is the number of years in the
period) and subtracting 1 from the result.

The total return for the period September 30, 1992 (commencement of
operations) to August 31, 1994 for each Portfolio was as follows:

Large Company Growth Portfolio-- 8.95%
Large Company Value Portfolio -- 18.50%
Small Company Growth Portfolio-- 35.19%
Small Company Value Portfolio -- 19.71%

Total return is calculated by subtracting the amount of the Portfolio's net
asset value per share at the beginning of a stated period from the net asset
value per share at the end of the period (after giving effect to the
reinvestment of dividends and distributions during the period), and dividing
the result by the net asset value per share at the beginning of the period.

From time to time advertising materials for the Fund may refer to
Morningstar ratings and related analysis supporting such ratings.

PORTFOLIO TRANSACTIONS

Wilshire supervises the placement of orders on behalf of each Portfolio
for the purchase or sale of portfolio securities. Allocation of brokerage
transactions, including their frequency, is made in the best judgment of
Wilshire and in a manner deemed fair and reasonable to shareholders. The
primary consideration is prompt execution of orders at the most favorable
net price. Subject to this consideration, the brokers selected may include
those that supplement Wilshire's research facilities with statistical data,
investment information, economic facts and opinions. Information so
received is in addition to and not in lieu of services required to be
performed by Wilshire and/or Dreyfus and their fees are not reduced as a
consequence of the receipt of such supplemental information. Such
information may be useful to Wilshire in serving both the Fund and other
clients which it advises and, conversely, supplemental information obtained
by the placement of business of other clients may be useful to Wilshire in
carrying out its obligations to the Fund. Brokers also are selected because
of their ability to handle special executions such as are involved in large
block trades or broad distributions, provided the primary consideration is
met. Large block trades, in certain cases, may result from two or more
clients Wilshire might advise being engaged simultaneously in the purchase
or sale of the same security. When transactions are executed in the over-
the-counter market, the Fund will deal with the primary market makers unless
a more favorable price or execution otherwise is obtainable.

Portfolio turnover may vary from year to year, as well as within a
year. Under normal market conditions, each Portfolio's turnover rate
generally will not exceed 60%. High turnover rates are likely to result in
comparatively greater brokerage expenses. The overall reasonableness of
brokerage commissions paid is evaluated by the Adviser based upon its
knowledge of available information as to the general level of commissions
paid by other institutional investors for comparable services.

For its portfolio securities transactions for the period September 30,
1992 (commencement of operations for all Portfolios except Small Company
Growth Portfolio which commenced operations on October 1, 1992) through
August 31, 1993 and for the fiscal year ended August 31, 1994, the Fund paid
total brokerage commissions as follows:

Period Ended Year Ended
Portfolio August 31, 1993 August 31, 1994
- ---------- --------------- ---------------
Large Company Growth Portfolio $ 8,191 $ 2,199
Large Company Value Portfolio $ 9,779 $10,349
Small Company Growth Portfolio $21,107 $12,919
Small Company Value Portfolio $17,687 $37,422

No brokerage commissions were paid to the Distributor. There were no
spreads or concessions on principal transactions for either period.

INFORMATION ABOUT THE FUND

The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "General Information."

Each share of a Portfolio has one vote and, when issued and paid for in
accordance with the terms of the offering, is fully paid and non-assessable.

A Portfolio's shares have equal rights as to dividends and in liquidation.
Shares have no preemptive, subscription or conversion rights and are freely
transferable.

The Fund will send annual and semi-annual financial statements to all
its shareholders.

CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT, COUNSEL
AND INDEPENDENT ACCOUNTANTS

Comerica Bank, a Michigan banking corporation, 100 Renaissance Center,
Detroit, Michigan 48243, acts as custodian of the Fund's investments. The
Shareholder Services Group, Inc., a subsidiary of First Data Corporation,
P.O. Box 9671, Providence, Rhode Island 02940-9671, is the Fund's transfer
and dividend disbursing agent. Neither Comerica Bank nor The Shareholder
Services Group, Inc. has any part in determining the investment policies of
the Fund or which securities are to be purchased or sold by the Fund.

Stroock & Stroock & Lavan, 7 Hanover Square, New York, New York 10004-
2696, as counsel for the Fund, has rendered its opinion as to certain legal
matters regarding the due authorization and valid issuance of the shares of
common stock being sold pursuant to the Fund's Prospectus.

Coopers & Lybrand, 1301 Avenue of the Americas, New York, New York
10019, independent accountants, have been selected as auditors of the Fund.

APPENDIX

Description of the highest commercial paper rating assigned by Standard
& Poor's Corporation ("S&P"), Moody's Investors Service, Inc. ("Moody's"),
Fitch Investors Service, Inc. ("Fitch") and Duff & Phelps, Inc. ("Duff").

The rating A is the highest rating and is assigned by S&P to issues
that are regarded as having the greatest capacity for timely payment.
Issues in this category are delineated with the number 1, 2 or 3 to indicate
the relative degree of safety. Paper rated A-1 indicates that the degree of
safety regarding timely payment is either overwhelming or very strong.
Those issues determined to possess overwhelming safety characteristics are
denoted with a plus (+) sign designation.

The rating Prime-1 (P-1) is the highest commercial paper rating
assigned by Moody's. Issuers of P-1 paper must have a superior capacity for
repayment of short-term promissory obligations, and ordinarily will be
evidenced by leading market positions in well established industries, high
rates of return on funds employed, conservative capitalization structures
with moderate reliance on debt and ample asset protection, broad margins in
earnings coverage of fixed financial charges and high internal cash
generation, and well established access to a range of financial markets and
assured sources of alternate liquidity.

The rating Fitch-1 (Highest Grade) is the highest commercial paper
rating assigned by Fitch. Paper rated Fitch-1 is regarded as having the
strongest degree of assurance for timely payment.

The rating Duff-1 is the highest commercial paper rating assigned by
Duff. Paper rated Duff-1 is regarded as having very high certainty of
timely payment with excellent liquidity factors which are supported by ample
asset protection. Risk factors are minor.

Dreyfus-Wilshire Target Funds, Inc.
Statement of Investments August 31, 1994
Large Company Growth Portfolio
Shares COMMON STOCKS-99.9% Value
-------- -------------------- ----------
<S> <C> <C> <C>
Advertising-.2%
500 Interpublic Group Cos........................... $ 17,250
----------
Aerospace & Defense-2.2%
2,000 Boeing.......................................... 91,000
600 Martin Marietta................................. 30,525
800 Raytheon........................................ 54,100
200 Sundstrand...................................... 9,950
----------
185,575
Auto Parts-.8%
900 (a) AutoZone........................................ 22,387
700 Genuine Parts................................... 25,725
400 Pep Boys-Manny, Moe & Jack...................... 13,950
200 Stewart & Stevenson............................. 7,450
----------
69,512
----------
Banking-3.1%
2,227 Banc One........................................ 77,388
1,482 KeyCorp......................................... 48,721
1,900 Norwest......................................... 50,587
1,000 Wachovia........................................ 35,000
300 Wells Fargo..................................... 47,925
----------
259,621
----------
Basic Industries-.3%
500 Fluor........................................... 26,500
----------
Beverages-6.3%
400 Brown Forman, Cl. B............................. 12,050
7,800 Coca-Cola....................................... 358,800
4,800 PepsiCo......................................... 159,000
----------
529,850
----------
Biotechnology-.3%
300 Medtronic....................................... 29,625
----------
Building Materials-.6%
500 Nucor........................................... 34,500
500 Sherwin-Williams................................ 16,562
----------
51,062
----------
Chemicals-1.3%
200 Betz Laboratories............................... 9,450
400 Great Lakes Chemical............................ 24,100
200 Loctite......................................... 9,075
400 Lubrizol........................................ 12,500
900 Morton International............................ 26,662
400 Nalco Chemical.................................. 13,550
300 Sigma-Aldrich................................... 10,425
----------
105,762
----------
Shares COMMON STOCKS (continued) Value
-------- -------------------- ----------
Commercial Services-.4%
400 Ecolab.......................................... $ 9,250
200 Flightsafety International...................... 7,825
500 Service Corp International...................... 13,250
----------
30,325
----------
Computer Software/Services-5.1%
200 (a) ADC Telecommunications.......................... 9,300
300 Adobe Systems................................... 9,525
100 Autodesk........................................ 6,075
800 Automatic Data Processing....................... 43,300
200 (a) BMC Software.................................... 8,675
1,500 (a) COMPAQ Computer................................. 56,063
200 (a) Cabletron Systems............................... 21,175
1,000 Computer Associates International............... 40,125
300 (a) Computer Sciences............................... 13,462
200 Linear Technology............................... 8,900
300 (a) Lotus Development............................... 12,262
3,500 (a) Microsoft....................................... 203,438
----------
432,300
----------
Conglomerates-4.0%
300 (a) Litton Industries............................... 11,662
5,300 Philip Morris Cos............................... 323,300
----------
334,962
Cosmetics/Toiletries-1.7%
900 Colgate-Palmolive............................... 51,525
1,300 Gillette........................................ 94,088
----------
145,613
----------
Drugs & Pharmaceuticals-10.2%
4,900 Abbott Laboratories............................. 147,000
400 Allergan........................................ 10,950
200 Cardinal Health................................. 7,750
3,900 Johnson & Johnson............................... 195,488
1,600 Marion Merrell Dow.............................. 37,800
7,700 Merck & Co...................................... 262,763
500 Mylan Laboratories.............................. 12,875
800 Rhone-Poulenc Rorer............................. 29,600
1,200 Schering-Plough................................. 83,850
1,300 Syntex.......................................... 31,200
1,000 Upjohn.......................................... 36,125
----------
855,401
----------
Electronics-14.3%
300 (a) Best Buy........................................ 10,687
700 Duracell........................................ 32,200
200 E-Systems....................................... 8,600
1,300 Emerson Electric................................ 80,762

Statement of Investments August 31, 1994 (continued)
Large Company Growth Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Electronics (continued)
10,200 General Electric................................ $ 507,450
300 Grainger (W.W.)................................. 19,500
1,500 Hewlett-Packard................................. 134,812
200 Hubbell, Cl. B.................................. 11,200
2,500 Intel........................................... 164,375
500 Loral........................................... 20,875
3,300 Motorola........................................ 178,200
300 Polaroid........................................ 10,575
500 Premier Industrial.............................. 11,250
400 Sensormatic Electronics......................... 13,850
----------
1,204,336
----------
Entertainment-2.2%
800 Carnival Cruise Lines, Cl. A.................... 35,500
500 (a) Circus Circus Enterprises....................... 12,187
3,200 Disney (Walt)................................... 131,600
200 (a) King World Productions.......................... 7,550
----------
186,837
----------
Environmental-.3%
250 (a) Thermo Instrument Systems....................... 7,656
1,100 Wheelabrator Technologies....................... 18,837
----------
26,493
Finance & Financial Services-2.6%
250 ADVANTA, Cl. A.................................. 8,125
600 Block (H & R)................................... 26,250
572 Countrywide Credit Industry..................... 8,509
350 Edwards (AG).................................... 7,044
500 Equifax......................................... 14,625
400 Fifth Third Bancorp............................. 20,600
500 Franklin Resources.............................. 19,688
400 Green Tree Financial............................ 13,400
666 Mercury Finance................................. 10,573
300 Northern Trust.................................. 11,475
400 Schwab (Chas)................................... 12,300
500 State Street Boston............................. 20,000
700 SunTrust Banks.................................. 35,788
400 Synovus Financial............................... 7,400
----------
215,777
----------
Food Distributors-.3%
1,100 Sysco........................................... 28,188
----------
Foods-6.8%
900 CPC International............................... 48,150
1,500 Campbell Soup................................... 58,125
1,500 ConAgra......................................... 49,125
200 Dean Foods...................................... 6,400

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Foods (continued)
1,000 General Mills................................... $ 54,000
1,500 Heinz (H.J.).................................... 54,938
500 Hershey Foods................................... 24,000
500 Hormel (Geo A).................................. 11,500
1,400 Kellogg......................................... 79,275
600 Pet............................................. 12,150
500 Pioneer Hi-Br International..................... 15,625
400 Quaker Oats..................................... 32,150
2,900 Sara Lee........................................ 67,063
400 Supervalu....................................... 11,850
900 Tyson Foods, Cl. A.............................. 21,825
700 Wrigley, (WM) Jr................................ 28,613
----------
574,789
----------
Health Care-.5%
200 (a) Foundation Health............................... 7,575
400 Manor Care...................................... 11,000
200 (a) MidAtlantic Medical Services.................... 5,300
400 (a) NovaCare........................................ 6,250
200 (a) PacifiCare Health Systems....................... 14,400
----------
44,525
----------
Holding Companies-.3%
500 Textron......................................... 27,625
----------
Hospital Management-.6%
500 National Health Labs............................ 6,188
900 United Healthcare............................... 47,025
----------
53,213
----------
Hotels & Motels-.3%
600 (a) Promus Cos...................................... 22,050
----------
Household Appliances-.1%
133 Lancaster Colony................................ 4,821
----------
Household Products-3.7%
400 (a) Clayton Homes................................... 8,650
500 Newell.......................................... 23,813
4,100 Procter & Gamble................................ 249,587
1,000 Rubbermaid...................................... 28,125
----------
310,175
----------
Insurance-4.5%
625 AFLAC........................................... 22,422
1,950 American International Group.................... 183,300
200 Conseco......................................... 10,325
400 GEICO........................................... 19,800
500 General Re...................................... 55,812
400 Torchmark....................................... 17,050

Statement of Investments August 31, 1994 (continued)
Large Company Growth Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Insurance (continued)
500 UNUM............................................ $ 24,562
1,000 U.S. HealthCare................................. 43,250
----------
376,521
----------
Leisure Time-.4%
200 Harley-Davidson................................. 11,300
800 International Game Technology................... 18,700
----------
30,000
----------
Machinery-.2%
200 Foster Wheeler.................................. 8,150
250 (a) Thermo Electron................................. 11,219
----------
19,369
----------
Manufacturing-.8%
400 Hillenbrand Industries.......................... 13,300
700 Illinois Tool Works............................. 30,275
200 Leggett & Platt................................. 7,400
700 Pall............................................ 12,600
----------
63,575
----------
Medical Supplies-.7%
400 Becton, Dickinson............................... 17,150
700 (a) Biomet.......................................... 7,875
300 (a) Forest Labs..................................... 14,100
300 St. Jude Medical................................ 10,350
300 Stryker......................................... 10,650
----------
60,125
----------
Metals-.1%
200 MAPCO........................................... 11,450
----------
Office & Business Equipment-.4%
900 Pitney Bowes.................................... 34,650
----------
Packaging-.3%
300 Bemis........................................... 7,350
500(a) Crown Cork & Seal............................... 18,625
----------
25,975
----------
Printing & Publishing-.5%
400 American Greetings, Cl. A....................... 12,000
700 Readers Digest Association, Cl. A............... 29,750
----------
41,750
----------
Radio & TV Broadcasting-.2%
500 Scripps (E.W.), Cl. A........................... 14,562
----------
Restaurants-1.6%
425 (a) Brinker International........................... 10,306
400 Cracker Barrel Old Country...................... 10,200
4,200 McDonald's...................................... 118,650
----------
139,156

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Retail-11.0%
1,500 Albertson's..................................... $ 43,312
900 American Stores................................. 22,725
1,500 Blockbuster Entertainment....................... 38,812
400 Dayton Hudson................................... 33,900
300 Dollar General.................................. 7,575
300 Fingerhut Companies............................. 8,588
900 Gap............................................. 38,700
300 Heilig-Meyers................................... 8,062
2,666 Home Depot...................................... 120,637
2,200 Limited......................................... 44,275
1,500 May Department Stores........................... 61,500
500 NIKE, Cl. B..................................... 32,188
500 Nordstrom....................................... 23,500
500 Reebok International............................ 18,188
1,700 (a) Toys `R' Us..................................... 62,688
13,800 Wal-Mart Stores................................. 339,825
700 Walgreen........................................ 26,338
----------
930,813
----------
Technology-7.1%
8,100 AT & T.......................................... 443,475
500 (a) Applied Materials............................... 25,250
300 (a) Atmel........................................... 8,250
1,500 (a) Cisco Systems................................... 37,219
1,700 (a) Oracle Systems.................................. 72,569
300 (a) Parametric Technology........................... 8,662
----------
595,425
----------
Textiles-.9%
300 Cintas.......................................... 9,525
500 (a) Fruit of The Loom, Cl. A........................ 13,187
200 Russel.......................................... 6,475
900 Shaw Industries................................. 15,637
400 Unifi........................................... 9,600
400 V.F............................................. 21,150
----------
75,574
----------
Tire & Rubber Goods-.2%
500 Cooper Tire & Rubber............................ 12,938
----------
Tobacco-.4%
1,200 UST............................................. 37,500
----------
Toys-.5%
500 Hasbro.......................................... 15,687
1,000 Mattel.......................................... 28,750
----------
44,437
----------
Transportation-.1%
300 Illinois Central................................ 9,450
----------
Trucking-.2%
200 Roadway Services................................ 12,800
----------

Statement of Investments August 31, 1994 (continued)
Large Company Growth Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Utilities-Telephone-1.3%
300 Century Telephone Enterprises................... $ 9,037
1,092 (a) Citizens Utility, Cl. A......................... 15,425
3,200 MCI Communications.............................. 77,800
400 Rochester Telephone............................. 9,000
----------
111,262
----------
TOTAL COMMON STOCKS
(cost $7,800,161)................................... $ 8,419,519
============
TOTAL INVESTMENTS
(cost $7,800,161)................................ 99.9% $ 8,419,519
===== ============
CASH AND RECEIVABLES (NET).......................... .1% $ 4,877
===== ============
NET ASSETS.......................................... 100.0% $ 8,424,396
===== ============

Large Company Value Portfolio
COMMON STOCKS -102.3%

Aerospace & Defense-2.2%
1,000 General Dynamics................................ $ 45,125
1,000 Lockheed........................................ 78,750
700 McDonnell Douglas............................... 82,775
800 Northrop Grumman................................ 36,000
600 Sunstrand....................................... 29,850
----------
272,500
----------
Auto/Related-7.2%
8,200 Chrysler........................................ 394,625
16,600 Ford Motor...................................... 485,550
----------
880,175
----------
Banking-23.0%
800 AmSouth Bancorp................................. 26,500
6,300 Banc One........................................ 218,925
750 Bancorp Hawaii.................................. 24,281
1,800 Bank of Boston.................................. 47,250
3,100 Bank of New York................................ 100,750
6,000 BankAmerica..................................... 296,250
1,400 Bankers Trust NY................................ 103,075
1,600 Barnett Banks................................... 75,600
1,700 Boatmen's Bancshares............................ 57,163
600 Central Fidelity Banks.......................... 19,950
3,100 Chase Manhattan................................. 117,025
4,200 Chemical Banking................................ 162,750
2,000 Comerica........................................ 60,750
2,200 CoreStates Financial............................ 62,150
1,400 First Chicago................................... 72,800
1,400 First Fidelity Bancorp.......................... 64,225
1,000 First of America Bank........................... 36,625
800 First Security.................................. 26,000
500 First Tennessee National........................ 23,750

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Banking (continued)
2,800 First Union..................................... $ 129,150
1,100 Firstar......................................... 35,750
600 Integra Financial............................... 29,325
4,028 KeyCorp......................................... 132,421
700 Mercantile Bancorp.............................. 26,775
1,000 Meridian Bancorp................................ 32,125
3,200 Morgan (J.P.)................................... 210,800
2,700 NBD Bancorp..................................... 84,038
2,600 National City................................... 69,875
700 Old Kent Financial.............................. 24,675
3,900 PNC Bank........................................ 109,200
1,500 Pinnacle West Capital........................... 27,750
700 Regions Financial............................... 25,288
900 Republic New York............................... 40,725
1,700 Shawmut National................................ 38,250
900 Signet Banking.................................. 35,213
1,300 SouthTrust...................................... 27,625
500 Star Banc....................................... 21,500
2,900 Wachovia........................................ 101,500
----------
2,797,804
---------
Beverages-.3%
1,100 Brown-Forman, Cl. B............................. 33,138
----------
Brokerage-.2%
1,300 Paine Webber Group.............................. 21,125
----------
Chemicals-1.6%
2,000 Ethyl........................................... 23,500
2,000 Monsanto........................................ 165,250
----------
188,750
----------
Electronics-.2%
800 National Service Industries..................... 21,500
----------
Energy-21.1%
8,300 Amoco........................................... 480,363
20,800 Exxon........................................... 1,237,600
6,700 Mobil........................................... 564,475
4,300 Texaco.......................................... 265,525
600 Ultramar........................................ 15,675
----------
2,563,638
----------
Finance-7.3%
8,200 American Express................................ 230,625
900 Beneficial...................................... 38,700
600 Crestar Financial............................... 28,950
1,400 First Interstate Bancorp........................ 111,825
2,300 Fleet Financial Group........................... 91,138
1,600 Household International......................... 63,200
4,500 NationsBank..................................... 250,875
1,300 Transamerica.................................... 69,387
----------
884,700
----------

Statement of Investments August 31, 1994 (continued)
Large Company Value Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Foods-.8%
600 Fleming Cos..................................... $ 17,025
1,000 Giant Food, Cl. A............................... 21,750
1,400 McCormick....................................... 27,650
1,200 Supervalu....................................... 35,550
----------
101,975
----------
Forest & Paper Products-1.3%
3,400 Weyerhaeuser.................................... 155,975
----------
Holding Companies-.1%
400 Harsco.......................................... 16,850
----------
Insurance-3.8%
1,500 Allstate........................................ 39,000
400 American National Insurance..................... 20,600
800 American Premier Underwriters................... 21,000
1,700 Aon............................................. 58,225
1,200 CIGNA........................................... 80,400
800 Jefferson-Pilot................................. 43,200
1,600 Lincoln National................................ 61,600
600 Ohio Casualty................................... 19,050
1,000 SAFECO.......................................... 54,625
1,400 St. Paul Cos.................................... 60,550
----------
458,250
----------
Machinery-.8%
1,900 Cooper Industries............................... 75,288
900 McDermott International......................... 23,512
----------
98,800
----------
Manufacturing-1.1%
800 Cummins Engine.................................. 32,200
700 Johnson Controls................................ 37,188
700 Stanley Works................................... 30,362
3,600 (a) Unisys.......................................... 35,550
----------
135,300
----------
Mining & Metals-1.0%
1,500 Cyprus Amax Minerals............................ 48,750
1,200 Phelps Dodge.................................... 76,200
----------
124,950
----------
Office & Business Equipment-.3%
700 Harris.......................................... 33,863
----------
Oil & Gas-1.1%
1,000 Ashland Oil..................................... 37,875
800 Pennzoil........................................ 41,000
1,800 Sun............................................. 50,175
----------
129,050
----------
Retail-3.3%
1,800 Melville........................................ 68,175

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Retail (continued)
600 Mercantile Stores............................... $ 22,500
1,400 Rite Aid........................................ 28,875
5,900 Sears, Roebuck.................................. 279,512
----------
399,062
----------
Tobacco-1.0%
3,400 American Brands................................. 122,400
----------
Transportation-.3%
1,300 Ryder System.................................... 35,750
----------
Utilities-8.3%
1,900 Allegheny Power System.......................... 42,750
1,800 DPL............................................. 36,450
900 DQE............................................. 27,562
2,800 Dominion Resources.............................. 105,350
3,400 Duke Power...................................... 131,750
3,200 FPL Group....................................... 100,400
1,500 Florida Progress................................ 43,500
900 Montana Power................................... 21,262
1,100 New England Electric System..................... 36,437
2,400 Niagara Mohawk Power............................ 35,700
4,700 PacifiCorp...................................... 80,487
1,000 Public Service Co. of Colorado.................. 27,125
1,000 Puget Sound P&L................................. 19,875
7,500 SCEcorp......................................... 102,187
10,700 Southern........................................ 201,962
----------
1,012,797
----------
Utilities-Electric Power-13.7%
3,100 American Electric Power......................... 97,650
2,400 Baltimore Gas & Electric........................ 55,200
700 Boston Edison................................... 18,725
2,700 Carolina Power & Light.......................... 71,550
3,100 Central & South West............................ 69,750
3,900 Consolidated Edison............................. 106,762
1,000 Delmarva Power & Light.......................... 19,000
2,500 Detroit Edison.................................. 68,125
3,900 Entergy......................................... 97,012
1,900 General Public Utilities........................ 49,637
2,200 Houston Industries.............................. 76,450
600 IPALCO Enterprises.............................. 18,600
1,000 Kansas City Power & Light....................... 21,625
500 LG&E Energy..................................... 19,063
1,900 Long Island Lighting............................ 34,200
1,100 NIPSCO Industries............................... 31,762
1,200 New York State Electric & Gas................... 24,900
2,100 Northeast Utilities............................. 48,825
1,100 Northern States Power........................... 47,575
700 Oklahoma Gas & Electric......................... 23,975
3,700 PECO Energy..................................... 100,825

Statement of Investments August 31, 1994 (continued)
Large Company Value Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Utilities-Electric Power (continued)
900 PSI Resources................................... $ 20,137
7,300 Pacific Gas & Electric.......................... 179,763
2,500 Pennsylvania Power & Light...................... 52,813
2,000 Potomac Electric Power.......................... 40,250
4,000 Public Service Enterprise Group................. 111,000
800 SCANA........................................... 36,500
700 Southwestern Public Service..................... 18,725
1,700 Union Electric.................................. 60,775
1,800 Wisconsin Energy................................ 46,800
----------
1,667,974
----------
Utilities-Natural Gas Distributors-2.3%
1,500 Consolidated Natural Gas........................ 59,813
600 El Paso Natural Gas............................. 19,725
600 National Fuel Gas............................... 18,675
1,400 Pacific Enterprises............................. 29,925
2,000 Panhandle Eastern............................... 43,750
1,900 San Diego Gas & Electric........................ 37,050
1,500 Sonat........................................... 45,750
1,000 Western Resources............................... 28,750
----------
283,438
----------
TOTAL COMMON STOCKS
(cost $12,396,299)................................. $12,439,764
===========
TOTAL INVESTMENTS
(cost $12,396,299)........................... 102.3% $12,439,764
====== ===========
LIABILITIES, LESS CASH
AND RECEIVABLES................................ (2.3%) $ (282,210)
====== ===========
NET ASSETS...................................... 100.0% $12,157,554
====== ===========
Small Company Growth Portfolio
COMMON STOCKS-94.3%
Aerospace & Defense-.3%
900 (a) Alliant Techsystems............................. $ 28,688
----------
Air Transportation-.7%
1,000 Air Express International....................... 26,875
3,100 (a) Mesa Airlines................................... 23,638
1,000 SkyWest......................................... 27,750
----------
78,263
----------
Auto Parts-1.5%
1,550 (a) Jason........................................... 13,950
500 Smith (A.O.).................................... 13,750
1,150 Spartan Motors.................................. 18,544
2,600 Superior Industries International............... 77,025
2,500 (a) TBC............................................. 24,687
800 Walbro.......................................... 17,400
----------
165,356
----------

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Banking-.1%
500 Provident Bankshares............................ $ 12,500
----------
Biotechnology-1.7%
800 Collagen........................................ 17,000
1,400 (a) Cordis.......................................... 77,000
900 (a) Mentor.......................................... 14,737
1,400 (a) Nellcor......................................... 42,350
2,000 (a) Thermo Cardiosystems............................ 40,250
----------
191,337
----------
Building Materials-.1%
800 (a) Elcor........................................... 16,300
----------
Chemicals-.6%
2,700 (a) Airgas.......................................... 66,825
----------
Commercial Services-1.2%
1,100 Adia Services................................... 39,462
1,700 (a) CDI............................................. 21,463
600 (a) Insurance Auto Auctions......................... 21,825
2,400 (a) Robert Half International....................... 51,300
----------
134,050
----------
Computer Software/Services-14.2%
900 (a) Acxiom.......................................... 24,750
4,500 (a) Adaptec......................................... 86,062
1,200 (a) Aldus........................................... 37,800
1,400 (a) American Management Systems..................... 36,750
1,200 (a) Artisoft........................................ 16,350
900 (a) BancTec......................................... 22,050
800 (a) Broderbund Software............................. 44,400
1,200 (a) Cerner.......................................... 50,100
3,350 (a) Cheyenne Software............................... 41,875
1,800 (a) Computer Network Technology..................... 11,700
1,740 (a) Comverse Technology............................. 17,482
4,400 (a) Conner Peripherals.............................. 52,800
3,300 (a) Dell Computer................................... 107,250
4,100 (a) Electronic Arts................................. 72,775
1,800 (a) Exabyte......................................... 33,975
3,400 (a) FIserv.......................................... 77,350
500 Fair Issac & Co................................. 16,500
2,600 HBO & Co........................................ 85,150
500 (a) Hutchinson Technology........................... 16,125
2,200 (a) Information Resources........................... 31,350
600 (a) Keane........................................... 20,250
1,900 (a) Komag........................................... 44,650
900 (a) MEDSTAT Group................................... 12,375
1,600 (a) Network General................................. 31,600
2,550 Paychex......................................... 83,513
3,100 (a) Pyxis........................................... 80,987
3,800 (a) Quantum......................................... 59,375

Statement of Investments August 31, 1994 (continued)
Small Company Growth Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Computer Software/Services (continued)
1,100 (a) Standard Microsystems........................... $ 21,588
1,700 (a) Sterling Software............................... 49,087
2,100 (a) Stratus Computer................................ 79,800
2,500 (a) Structural Dynamics Research.................... 20,625
1,600 (a) SunGard Data Systems............................ 55,600
2,300 System Software................................. 32,775
3,200 (a) Tech Data....................................... 60,000
1,600 (a) Zilog........................................... 52,000
----------
1,586,819
----------
Consumer Products-.9%
1,300 Harman International............................ 39,650
1,500 (a) Williams-Sonoma................................. 62,906
----------
102,556
----------
Cosmetics/Toiletries-.6%
2,600 Herbalife International......................... 54,925
966 Nature's Sunshine Products...................... 13,283
----------
68,208
----------
Distribution-1.0%
2,600 (a) Merisel......................................... 23,725
2,000 (a) Xilinx.......................................... 88,500
----------
112,225
----------
Drugs & Pharmaceuticals-.1%
1,500 (a) Nature's Bounty................................. 12,000
----------
Electronics-10.7%
2,300 Allen Group..................................... 45,425
1,800 (a) Altera.......................................... 54,900
3,700 (a) Amphenol, Cl. A................................. 75,850
1,100 (a) Analogic........................................ 16,775
1,100 (a) Anthem Electronics.............................. 25,300
1,700 Augat........................................... 39,738
500 (a) BMC Industries.................................. 14,000
400 (a) Cherry, Cl. A................................... 5,700
400 (a) Cherry, Cl. B................................... 5,600
2,400 (a) Cirrus Logic.................................... 66,300
2,200 (a) Dallas Semiconductor............................ 35,200
800 (a) Dynatech........................................ 16,600
500 (a) Exar............................................ 16,187
1,400 (a) Gentex.......................................... 30,800
1,500 (a) Input/Output.................................... 32,250
600 (a) Kent Electronics................................ 21,900
2,000 (a) Lam Research.................................... 71,000
1,600 (a) Lattice Semiconductor........................... 30,200
1,500 (a) Marshall Industries............................. 37,687
1,000 (a) Maxim Integrated Products....................... 60,750
1,400 (a) Novellus Systems................................ 61,950
1,500 (a) Oak Industries.................................. 40,312

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Electronics (continued)
500 Pacific Scientific.............................. $ 12,438
1,350 Pioneer Standard Electronics.................... 23,119
900 (a) Recoton......................................... 13,500
2,400 (a) SCI Systems..................................... 45,600
2,800 (a) Teradyne........................................ 83,300
700 (a) Three-Five Systems.............................. 27,300
2,100 (a) VeriFone........................................ 44,887
1,800 (a) Vicor........................................... 44,550
1,770 Vishay Intertechnology.......................... 76,110
900 X-Rite.......................................... 27,000
----------
1,202,228
----------
Energy-.1%
1,100 CRSS Industries................................. 11,550
----------
Engineering-.5%
2,200 (a) Jacobs Engineering Group........................ 53,350
----------
Entertainment-1.6%
2,200 (a) Caesars World................................... 102,025
700 (a) Carmike Cinemas, Cl. A.......................... 14,000
1,900 (a) Grand Casinos................................... 36,575
1,800 (a) Rio Hotel & Casino.............................. 25,875
----------
178,475
----------
Environmental-1.0%
3,200 (a) Allwaste........................................ 21,200
1,000 (a) IMCO Recycling.................................. 15,875
600 (a) Ionics.......................................... 31,575
1,300 (a) Sanifill........................................ 31,200
1,000 (a) USA Waste Services.............................. 14,625
----------
114,475
----------
Finance-4.0%
2,000 ADVANTA, Cl. B.................................. 59,000
900 (a) Concord EFS..................................... 25,875
500 Jefferies Group................................. 18,625
1,050 Legg Mason...................................... 22,969
1,200 (a) Medaphis........................................ 42,300
1,600 (a) PEC Israel Economic............................. 43,600
1,100 Pioneer Group................................... 50,050
2,500 Price (T. Rowe) Associates...................... 80,000
961 Quick & Reilly Group............................ 28,109
2,800 Total System Services........................... 80,850
----------
451,378
----------
Foods-.8%
1,900 Applebee's International........................ 28,500
2,700 (a) Buffets......................................... 53,325
900 (a) J&J Snack Foods................................. 11,587
----------
93,412
----------

Statement of Investments August 31, 1994 (continued)
Small Company Growth Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Home Furnishings-.3%
1,600 Juno Lighting................................... $ 30,000
----------
Homebuilding-.9%
2,400 Pulte........................................... 59,400
2,900 (a) Toll Brothers................................... 35,888
----------
95,288
----------
Hospital Management-8.3%
1,400 (a) Coastal Healthcare Group........................ 48,300
1,000 (a) Community Health Systems........................ 23,250
3,300 (a) Continental Medical Systems..................... 27,637
2,016 (a) Coram Healthcare................................ 31,248
2,100 (a) Diagnostek...................................... 49,613
1,100 (a) Genesis Heatlh Ventures......................... 29,012
1,100 (a) GranCare........................................ 23,513
2,500 (a) HEALTHSOUTH Rehabilitation...................... 90,000
3,100 (a) HealthCare COMPARE.............................. 83,312
2,800 (a) Health Care & Retirement........................ 78,050
2,600 (a) Healthsource.................................... 85,150
1,100 (a) Homedco Group................................... 30,525
1,600 (a) Horizon Healthcare.............................. 40,600
1,200 (a) Integrated Health Services...................... 43,650
600 (a) Isomedix........................................ 10,500
1,200 (a) Oxford Health Plans............................. 84,900
1,100 (a) Pacific Physician Services...................... 16,500
1,300 (a) Quantum Health Resources........................ 46,637
1,100 (a) Sierra Health Services.......................... 28,875
1,400 (a) Vencor.......................................... 59,500
----------
930,772
----------
Insurance-2.6%
3,400 American Annuity Group.......................... 32,725
900 (a) American Travellers............................. 14,063
1,300 (a) Capsure Holdings................................ 17,062
1,400 (a) Citizens, Cl. A................................. 11,550
3,232 (a) FHP International............................... 87,264
1,300 Fidelity National Financial..................... 16,900
1,662 Gainsco......................................... 15,374
900 (a) Gencare Health Systems.......................... 36,900
500 (a) Markel.......................................... 20,875
800 (a) United Insurance................................ 22,200
500 Unitog.......................................... 13,500
----------
288,413
----------
Leisure Time-2.3%
3,300 (a) Acclaim Entertainment........................... 56,100
1,700 Arctco.......................................... 51,425
2,400 (a) Chris-Craft Industries.......................... 87,900
800 Thor Industries................................. 16,700
2,100 (a) WMS Industries.................................. 40,425
----------
252,550
----------

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Machinery-1.9%
800 AGCO............................................ $ 39,600
500 (a) Christiana Cos.................................. 14,750
1,500 (a) Cognex.......................................... 28,500
3,000 Giddings & Lewis................................ 56,250
1,100 (a) IDEX............................................ 44,687
1,300 Roper Industries................................ 28,438
----------
212,225
----------
Manufacturing-2.1%
600 (a) Champion Enterprises............................ 21,900
2,700 HON Industries.................................. 69,525
600 Harmon Industries............................... 12,600
3,000 (a) Instrument Systems.............................. 23,250
2,200 (a) Jan Bell Marketing.............................. 12,375
1,800 Oakwood Homes................................... 50,625
1,500 (a) Shorewood Packaging............................. 31,125
1,500 (a) Thermo Process Systems.......................... 12,188
----------
233,588
----------
Medical Supplies-4.4%
1,900 Arrow International............................. 47,025
2,300 Ballard Medical Products........................ 23,862
2,400 (a) DENTSPLY International.......................... 87,000
1,400 (a) Datascope....................................... 21,700
900 Invacare........................................ 28,463
2,600 Owens & Minor................................... 38,350
700 (a) Respironics..................................... 14,175
800 (a) Rotech Medical.................................. 18,400
1,300 (a) SciMed Life Systems............................. 47,775
2,100 (a) Sofamor/Danek Group............................. 42,262
800 (a) Sullivan Dental Products........................ 12,000
1,600 (a) Sunrise Medical................................. 40,600
1,700 (a) Tecnol Medical Products......................... 27,625
2,800 (a) Thermedics...................................... 42,000
----------
491,237
----------
Metals-1.1%
1,350 (a) Material Sciences.............................. 23,119
1,100 Steel Technologies............................. 21,175
3,200 TriMas......................................... 76,800
----------
121,094
----------
Oil & Gas-3.6%
1,000 (a) Barrett Resources.............................. 18,125
1,100 (a) Energy Ventures................................ 16,638
700 Holly.......................................... 18,375
1,100 (a) Hornbeck Offshore Services..................... 13,475
1,000 KCS Energy..................................... 16,875
6,200 (a) Nabors Industries.............................. 39,525
2,100 (a) Oceaneering International...................... 28,087

Statement of Investments August 31, 1994 (continued)
Small Company Growth Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Oil & Gas (continued)
1,500 (a) Offshore Logistics............................. $ 21,000
3,100 (a) Seagull Energy................................. 74,400
600 (a) Seitel......................................... 18,900
900 (a) Tejas Gas...................................... 42,300
1,700 Vintage Petroleum.............................. 35,488
4,500 (a) Weatherford International...................... 54,562
----------
397,750
----------
Printing & Publishing-.5%
1,500 Medusa......................................... 42,563
600 Merrill........................................ 12,600
----------
55,163
----------
Radio & TV Broadcasting-1.8%
1,475 (a) Clear Channel Communication.................... 67,850
6,410 (a) IDB Communications Group....................... 61,696
900 (a) United Television.............................. 45,900
1,700 (a) Westcott Communications........................ 24,225
----------
199,671
----------
Restaurants-2.2%
2,050 Apple South.................................... 32,800
1,000 (a) Au Bon Pain, Cl. A............................. 17,187
4,200 (a) Checkers Drive-In Restaurant................... 19,950
800 (a) IHOP........................................... 24,000
2,200 (a) NPC International, Cl. A....................... 14,300
3,500 (a) Outback Steakhouse............................. 106,313
4,600 (a) Ryan's Family Steak House...................... 31,050
----------
245,600
----------
Retail-9.9%
1,200 Baker (J.)..................................... 24,450
3,150 (a) Bombay......................................... 46,069
3,550 (a) Burlington Coat Factory........................ 85,644
1,400 (a) Caldor......................................... 44,625
2,500 Cash America International..................... 20,000
1,800 Claire's Stores................................ 23,175
4,000 (a) Consolidated Stores............................ 66,000
1,900 (a) Dress Barn..................................... 20,187
2,000 (a) Eagle Hardware & Garden........................ 22,500
800 (a) Fabri-Centers America.......................... 12,000
1,600 Fastenal....................................... 62,800
1,100 (a) Good Guys...................................... 14,025
3,000 Intelligent Electronics........................ 46,500
3,100 Lands' End..................................... 62,387
2,800 Lennar......................................... 55,300
2,500 (a) MacFrugals Bargains Closeouts.................. 47,188
2,300 (a) Meyer (Fred)................................... 76,475
1,400 (a) Michaels Stores................................ 59,850
850 (a) One Price Clothing Stores...................... 13,069

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Retail (continued)
800 (a) Proffitt's..................................... $ 15,000
2,100 Ross Stores.................................... 34,125
2,400 (a) Starbucks...................................... 67,800
1,600 Sun Television & Appliances.................... 14,500
700 (a) Timberland, Cl. A.............................. 30,100
2,800 (a) Value City Department Stores................... 41,650
3,500 (a) Viking Office Products......................... 100,625
----------
1,106,044
----------
Telecommunications-3.3%
1,950 (a) Andrew......................................... 94,575
900 (a) Aspect Telecommunications...................... 33,300
1,000 (a) California Microwave........................... 23,750
1,300 (a) Digi International............................. 18,525
1,400 (a) Glenayre Technologies.......................... 79,450
2,600 (a) Network Systems................................ 23,400
2,100 (a) Octel Communications........................... 50,925
1,100 (a) United States Long Distance.................... 11,825
1,000 (a) United States Robotics......................... 36,750
----------
372,500
----------
Textiles-1.6%
800 (a) Fieldcrest Cannon.............................. 22,700
2,200 (a) Jones Apparel Group............................ 55,000
1,150 Nautica Enterprises............................ 31,050
2,300 Phillips-Van Heusen............................ 53,188
700 St. John Knits................................. 18,987
----------
180,925
----------
Toys-.2%
3,000 Tyco Toys...................................... 21,750
----------
Transportation-2.0%
1,850 Comair Holdings................................ 49,025
1,000 Expeditors International, Washington........... 20,250
900 (a) Fritz Companies................................ 30,262
2,400 (a) Kirby.......................................... 42,000
2,200 (a) National Auto Credit........................... 28,600
1,400 (a) Wisconsin Central Transportation............... 56,000
----------
226,137
----------
Trucking-2.6%
2,600 (a) American Freightways........................... 62,400
3,100 (a) Consolidated Freightways....................... 74,400
1,091 (a) Heartland Express.............................. 34,912
1,100 (a) M.S. Carriers.................................. 26,675
1,050 (a) Swift Transportation........................... 42,525
2,200 Werner Enterprises............................. 55,550
----------
296,462
----------

Statement of Investments August 31, 1994 (continued)
Small Company Growth Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Utilities-1.0%
3,000 (a) California Energy.............................. $ 52,500
2,100 (a) Magma Power.................................... 60,900
----------
113,400
----------
TOTAL COMMON STOCKS
(cost $9,286,264).......................... $10,550,564
==========
CONVERTIBLE
PREFERRED STOCKS-.3%
1,440 FHP International
(cost $33,818)............................. $ 37,080
==========
TOTAL INVESTMENTS
(cost $9,320,082)....................................... 94.6% $10,587,644
====== ===========
CASH AND RECEIVABLES (NET).............................. 5.4% $ 600,748
====== ===========
NET ASSETS.............................................. 100.0% $11,188,392
====== ===========
Small Company Value Portfolio
COMMON STOCKS-103.9%
Aerospace & Defense-.7%
6,200 Thiokol........................................ $ 158,875
----------
Auto Trucks & Parts-.2%
3,600 Purolator Products............................. 61,200
----------
Banking-21.0%
4,020 Associated Banc-Corp........................... 146,730
2,525 Bancorp South.................................. 90,900
15,400 Bank South..................................... 294,525
1,600 Blessings...................................... 57,000
2,500 Brenton Banks.................................. 50,000
3,693 CNB Bancshares................................. 130,178
1,700 CPB............................................ 45,050
4,500 Citizens Bancorp Maryland...................... 139,500
4,500 Citizens Banking............................... 113,625
2,285 Commerce Bancorp............................... 51,413
11,600 Compass Bancshares............................. 290,000
10,300 Dauphin Deposit................................ 260,075
5,600 Deposit Guaranty............................... 183,400
4,202 F&M National................................... 70,383
8,200 First American (Tennessee)..................... 281,875
8,000 First Bancorp, Ohio............................ 204,000
2,600 First Colonial Bankshares, Cl. A............... 61,750
4,910 First Michigan Bank............................ 114,158
2,000 Firstbank of Illinois.......................... 76,500
3,700 Fort Wayne National............................ 111,925
3,000 Grenada Sunburst System........................ 104,250
4,600 Jefferson Bankshares........................... 103,500
4,600 Mark Twain Bancshares.......................... 126,500
14,600 Mercantile Bankshares.......................... 319,375

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Banking (continued)
4,150 Mid Am......................................... $ 64,325
2,695 Mid-America Bancorp............................ 49,184
2,800 NBB Bancorp.................................... 133,700
5,460 One Valley Bancorp of West Virginia............ 161,070
13,700 Southern National.............................. 285,987
8,000 Summit Bancorporation.......................... 180,000
3,300 Susquehanna Bancshares......................... 80,025
6,200 Union Planters................................. 159,650
4,500 United Carolina Bancshares..................... 120,375
700 United Counties Bancorporation................. 106,750
3,900 Zions Bancorp.................................. 157,950
----------
4,925,628
----------
Chemicals-1.8%
3,100 Chemed......................................... 110,438
7,700 Dexter......................................... 198,275
2,800 LeaRonal....................................... 51,800
1,600 Stepan......................................... 53,400
----------
413,913
----------
Commercial/Personal Services-1.4%
2,800 ABM Industries................................. 64,050
8,300 Jenny Craig.................................... 50,837
5,500 PHH............................................ 202,813
----------
317,700
----------
Computer Software/Services-.3%
4,800 National Computer Systems...................... 62,400
----------
Electronics-.3%
2,300 Joslyn......................................... 69,575
----------
Finance-9.9%
3,350 Amcore Financial............................... 74,538
3,000 CCB Financial.................................. 133,500
6,600 Centura Banks.................................. 158,400
8,300 First Commerce................................. 234,475
5,900 First Commonwealth Financial................... 101,037
7,500 First Financial-Wisconsin...................... 119,063
10,300 First Hawaiian................................. 309,000
1,645 First Western Bancorp.......................... 46,882
8,400 Fourth Financial............................... 254,100
5,737 Fulton Financial............................... 120,477
3,800 JSB Financial.................................. 103,075
8,200 Magna Group.................................... 169,125
2,325 New York Bancorp............................... 46,209
4,400 ONBANCorp...................................... 134,200
5,600 Piper Jaffray Cos.............................. 55,300
5,000 Provident Bancorp.............................. 173,750
3,800 United Bancshares.............................. 94,050
----------
2,327,181
----------

Statement of Investments August 31, 1994 (continued)
Small Company Value Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Foods-1.6%
11,900 Flowers Industries............................. $ 202,300
3,500 Nash Finch..................................... 63,000
5,500 Smith's Food & Drug Centers, Cl. B............. 118,250
----------
383,550
----------
Forest Products-.4%
4,000 Pope & Talbot.................................. 88,000
----------
Household Appliances-1.2%
6,700 Kimball International, Cl. B................... 168,756
2,300 National Presto Industries..................... 99,763
----------
268,519
----------
Housing-.2%
2,600 McGrath RentCorp............................... 39,650
----------
Insurance-6.5%
2,900 AVEMCO......................................... 45,675
6,400 American Bankers Insurance Group............... 137,600
3,400 Foremost Corp., America........................ 110,500
4,850 Fremont General................................ 124,888
5,700 Home Beneficial, Cl. B......................... 120,413
9,400 NWNL Cos....................................... 296,100
5,800 SCOR U.S....................................... 67,425
4,400 Selective Insurance Group...................... 123,750
2,100 Trenwick Group................................. 82,950
7,200 USLIFE......................................... 258,300
6,100 Zenith National Insurance...................... 156,313
----------
1,523,914
----------
Leisure Time-1.2%
3,551 Anthony Industries............................. 59,923
10,600 Handleman...................................... 112,625
4,300 Sturm Ruger.................................... 112,875
----------
285,423
----------
Machinery-.2%
1,900 Cascade........................................ 45,600
----------
Manufacturing-5.2%
7,000 Arvin Industries............................... 172,375
4,600 Bassett Furniture.............................. 134,550
5,600 Brown Group.................................... 208,600
14,500 Fleetwood Enterprises.......................... 382,438
10,100 GenCorp........................................ 146,450
2,700 Manitowoc...................................... 71,212
5,200 O'Sullivan..................................... 48,750
3,500 Sealright...................................... 56,437
----------
1,220,812
----------
Medical Supplies-.3%
14,000 Kinetic Concepts............................... 63,000
----------

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Metals-1.0%
3,800 Cleveland-Cliffs............................... $ 158,650
15,500 UNR Industries................................. 86,218
----------
244,868
----------
Office & Business Equipment-1.8%
3,400 American Business Products..................... 73,100
5,000 General Binding................................ 95,000
9,100 Standard Register.............................. 202,475
5,900 United Stationers.............................. 56,050
----------
426,625
----------
Oil & Gas-1.2%
8,500 ONEOK.......................................... 153,000
8,700 Quaker State................................... 126,150
----------
279,150
----------
Railroads-1.1%
6,300 GATX........................................... 244,912
----------
Restaurants-.8%
8,400 Luby's Cafeterias.............................. 197,400
----------
Retail-3.5%
3,000 Blair.......................................... 138,000
3,600 Bradlees....................................... 58,950
6,400 Fay's.......................................... 50,400
5,700 Ingles Markets, Cl. A.......................... 69,112
6,600 Longs Drug Stores.............................. 229,350
10,200 Shopko Stores.................................. 100,725
3,324 Strawbridge-Clothier, Cl. A.................... 76,452
5,400 Venture Stores................................. 99,900
----------
822,889
----------
Steel-.7%
2,600 Carpenter Technology........................... 169,975
----------
Storage/Warehousing-.7%
4,600 Lukens......................................... 163,300
----------
Telecommunications-2.6%
12,700 Comsat......................................... 319,088
12,600 Pacific Telecom................................ 299,250
----------
618,338
----------
Textiles-2.3%
4,500 Guilford Mills................................. 87,750
6,600 Kellwood....................................... 164,175
2,700 Oxford Industries.............................. 76,950
5,600 Springs Industries, Cl. A...................... 206,500
----------
535,375
----------
Tobacco-.3%
4,200 Dibrell Brothers............................... 73,500
----------

Statement of Investments August 31, 1994 (continued)
Small Company Value Portfolio (continued)
Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Utilities-Electric Power-21.3%
17,000 Atlantic Energy................................ $ 297,500
4,500 Black Hills.................................... 93,375
4,100 CILCORP........................................ 123,000
10,800 CIPSCO......................................... 294,300
5,400 Central Hudson Gas & Electric.................. 139,050
10,300 Central Maine Power............................ 118,450
3,700 Central Vermont Public Service................. 49,025
3,300 Commonwealth Energy System Cos 133,238
6,000 Eastern Utilities Association.................. 148,500
4,300 Empire District Electric....................... 73,637
8,700 Hawaiian Electric Industries................... 276,225
9,000 IES Industries................................. 249,750
11,700 Idaho Power.................................... 283,725
9,300 Iowa-Illinios Gas & Electric................... 201,113
6,000 MDU Resources Group............................ 169,500
3,400 Madison Gas & Electric......................... 115,600
17,400 Midwest Resources.............................. 265,350
7,000 Minnesota Power & Light........................ 189,000
13,200 Nevada Power................................... 272,250
2,400 Northwestern Public Service.................... 69,600
4,300 Orange/Rockland Utilities...................... 131,150
15,100 Portland General............................... 269,912
11,800 Rochester Gas & Electric....................... 269,925
9,200 Sierra Pacific Resources....................... 184,000
5,000 Southern Indiana Gas & Electric................ 140,000
3,400 TNP Enterprises................................ 48,025
4,500 United Illuminating............................ 147,938
11,300 Universal...................................... 242,950
----------
4,996,088
----------
Utilities-Natural Gas Distributors-10.9%
7,500 Atlanta Gas Light.............................. 245,625
4,800 Atmos Energy................................... 81,600
4,100 Bay State Gas.................................. 96,862
2,700 Cascade Natural Gas............................ 42,188
2,600 Colonial Gas................................... 55,250
2,700 Connecticut Energy............................. 57,712
3,000 Connecticut Natural Gas........................ 72,000

Shares COMMON STOCKS (continued) Value
-------- -------------------------- ----------
Utilities-Natural Gas
Distributors (continued)
3,500 Energen........................................ $ 78,313
4,750 KN Energy...................................... 122,312
5,000 Laclede Gas.................................... 112,500
2,600 NUI............................................ 52,000
5,400 New Jersey Resources........................... 120,825
4,200 Northwest Natural Gas.......................... 128,100
1,700 Pennsylvania Enterprises....................... 52,275
11,100 Peoples Energy................................. 296,925
8,400 Piedmont Natural Gas........................... 176,400
5,700 Public Service Company of North Carolina....... 89,775
3,114 South Jersey Industries........................ 59,555
6,700 Southwest Gas.................................. 119,763
12,800 Transco Energy................................. 195,200
3,300 United Cities Gas.............................. 56,100
6,600 Washington Gas Light........................... 250,800
----------
2,562,080
----------
Utilities-Water-3.3%
9,900 American Water Works........................... 274,725
2,100 Aquarion....................................... 50,137
1,800 California Water Service....................... 63,000
2,600 Consumers Water................................ 44,200
1,800 E'town......................................... 48,375
2,200 IWC Resources.................................. 41,800
3,600 Philadelphia Suburban.......................... 68,400
2,500 Southern California Water...................... 44,375
9,236 United Water Resources......................... 124,686
----------
759,698
----------
TOTAL COMMON STOCKS
(cost $24,188,709).......................... $24,349,138
===========
TOTAL INVESTMENTS
(cost $24,188,709).......................... 103.9% $24,349,138
======= ===========
LIABILITIES, LESS CASH
AND RECEIVABLES.............................. (3.9%) $ (911,189)
======= ===========
NET ASSETS..................................... 100.0% $23,437,949
======= ===========
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.

See notes to financial statements.

</TABLE>

See notes to financial statements.

DREYFUS-WILSHIRE TARGET FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1994
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- --------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value
[cost_Note 4(b)]_see statement..... $ 8,419,519 $12,439,764 $10,587,644 $24,349,138
Cash................................... 16,070 13,205 611,099 93,601
Dividends receivable................... 10,364 84,289 2,030 109,144
Receivable for investment securities sold -- 64,304 -- --
Prepaid expenses and other assets...... 16,456 13,031 15,008 12,845
Due from The Dreyfus Corporation....... 33,105 33,869 35,970 98,135
----------- ------------ ----------- ------------
8,495,514 12,648,462 11,251,751 24,662,863
----------- ------------ ----------- ------------
LIABILITIES:
Payable for Common Stock redeemed...... $ 17,852 $ 442,013 $ 9,024 $ 1,160,009
Accrued expenses and other liabilities. 53,266 48,895 54,335 64,905
----------- ------------ ----------- ------------
71,118 490,908 63,359 1,224,914
----------- ------------ ----------- ------------
NET ASSETS .................... $ 8,424,396 $12,157,554 $11,188,392 $23,437,949
============ ========== =========== ===========
REPRESENTED BY:
Paid-in capital........................ $ 7,915,909 $11,772,767 $ 9,688,043 $22,722,353
Accumulated undistributed
investment income_net................ 40,777 334,686 -- 538,317
Accumulated distributions in excess of
investment income_net_Note 2(d)...... -- -- (2,150) --
Accumulated undistributed net realized
gain (loss) on investments........... (151,648) 6,636 234,937 16,850
Accumulated net unrealized appreciation on
investments_Note 4(b)................ 619,358 43,465 1,267,562 160,429
----------- ------------ ----------- ------------
NET ASSETS at value........................ $ 8,424,396 $12,157,554 $11,188,392 $23,437,949
============ ========== =========== ===========
SHARES OF COMMON STOCK OUTSTANDING
[400 million shares (with 100 million allocated
to each series) of $.001 par value
Common Stock authorized]............... 633,066 869,303 727,047 1,636,242
============ ========== =========== ===========
NET ASSET VALUE per share
(Net Assets / Shares outstanding)...... $13.31 $13.99 $15.39 $14.32
============ ========== =========== ===========

See notes to financial statements.
</TABLE>

DREYFUS-WILSHIRE TARGET FUNDS, INC.
STATEMENT OF OPERATIONS YEAR ENDED AUGUST 31, 1994
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $2,081 foreign taxes
withheld at source for the Small Company
Value Portfolio)................. $ 151,791 $ 506,484 $ 26,609 $ 859,574
Interest............................. -- 5,194 2,202 7,370
----------- ------------ ----------- ------------
TOTAL INCOME................... 151,791 511,678 28,811 866,944
----------- ------------ ----------- ------------
EXPENSES_Note 2(c):
Investment advisory fee_Note 3(a).... $ 8,137 $ 11,133 $ 8,397 $ 20,919
Administration fee_Note 3(a)......... 16,275 22,267 16,793 41,838
Shareholder servicing costs_Note 3(b) 30,750 39,603 37,466 75,896
Auditing fees........................ 25,013 25,015 25,010 25,027
Registration fees.................... 9,370 11,134 8,356 18,395
Prospectus and shareholders' reports. 6,163 4,052 9,117 7,992
Legal fees........................... 6,005 5,385 4,303 10,842
Organization expenses................ 5,124 4,000 4,268 3,585
Directors' fees and expenses_Note 3(c) 2,217 3,745 2,611 8,758
Custodian fees....................... 1,452 2,470 3,932 5,134
Miscellaneous........................ 2,861 2,812 2,964 2,996
----------- ------------ ----------- ------------
113,367 131,616 123,217 221,382
Less_expenses reimbursed and waived by
Wilshire and Dreyfus due to
undertakings_Note 3(a)........... 57,917 67,269 61,159 116,283
----------- ------------ ----------- ------------
TOTAL EXPENSES................. 55,450 64,347 62,058 105,099
----------- ------------ ----------- ------------
INVESTMENT INCOME (LOSS)_NET.. 96,341 447,331 (33,247) 761,845
----------- ------------ ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on investments_Note 4(a) $(119,770) $ 135,129 $ 284,483 $ 64,244
Net unrealized appreciation (depreciation)
on investments....................... 526,588 (920,730) 253,279 (755,152)
----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS. 406,818 (785,601) 537,762 (690,908)
----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $ 503,159 $(338,270) $ 504,515 $ 70,937
========== ========== ========== ============

See notes to financial statements.
</TABLE>

DREYFUS-WILSHIRE TARGET FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
LARGE COMPANY LARGE COMPANY
GROWTH PORTFOLIO VALUE PORTFOLIO
----------------- -------------------
YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31,
----------------- -------------------

1993(1) 1994 1993(1) 1994
----------- -------- --------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income_net................. $ 135,601 $ 96,341 $ 278,018 $ 447,331
Net realized gain (loss) on investments (31,878) (119,770) 130,997 135,129
Net unrealized appreciation (depreciation)
on investments for the year.......... 92,770 526,588 964,195 (920,730)
----------- -------- --------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS...... 196,493 503,159 1,373,210 (338,270)
----------- -------- --------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net................. (44,587) (146,578) (76,263) (314,400)
Net realized gain on investments....... -- -- -- (259,490)
----------- -------- --------- -------------
TOTAL DIVIDENDS.................. (44,587) (146,578) (76,263) (573,890)
----------- -------- --------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......... 11,142,614 6,136,117 14,165,687 11,201,295
Dividends reinvested................... 44,522 145,901 75,620 551,033
Cost of shares redeemed................ (3,303,329) (6,274,916) (7,446,854) (6,799,014)
----------- -------- --------- -------------
INCREASE IN NET ASSETS FROM CAPITAL
STOCK TRANSACTIONS............. 7,883,807 7,102 6,794,453 4,953,314
----------- -------- --------- -------------
TOTAL INCREASE IN NET ASSETS 8,035,713 363,683 8,091,400 4,041,154
NET ASSETS:
Beginning of year...................... 25,000 8,060,713 25,000 8,116,400
----------- -------- --------- -------------
End of year............................ $ 8,060,713 (2) $8,424,396 (2) $ 8,116,400 (3) $12,157,554 (3)
============ =========== ============= =============

SHARES SHARES SHARES SHARES
------------- ------------- ---------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 886,869 478,006 1,056,706 780,559
Shares issued for dividends reinvested. 3,350 11,258 5,803 39,052
Shares redeemed........................ (259,516) (488,901) (529,775) (485,042)
------------- ------------- ---------- --------------
NET INCREASE IN SHARES OUTSTANDING 630,703 363 532,734 334,569
============ ============ ========== ===============
(1) From September 30, 1992 (commencement of operations) to
August 31, 1993.
(2) Includes undistributed investment income_net: $91,014 in
1993 and $40,777 in 1994.
(3) Includes undistributed investment income_net: $201,755 in
1993 and $334,686 in 1994.

See notes to financial statements.

</TABLE>

DREYFUS-WILSHIRE TARGET FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SMALL COMPANY SMALL COMPANY
GROWTH PORTFOLIO VALUE PORTFOLIO
----------------- -------------------
YEAR ENDED AUGUST 31, YEAR ENDED AUGUST 31,
----------------- -------------------

1993(1) 1994 1993(2) 1994
----------- -------- --------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income (loss)_net.......... $ 36,141 $ (33,247) $ 274,117 $ 761,845
Net realized gain on investments....... 628,011 284,483 165,448 64,244
Net unrealized appreciation (depreciation)
on investments for the year.......... 1,014,283 253,279 915,581 (755,152)
----------- -------- --------- -------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................ 1,678,435 504,515 1,355,146 70,937
----------- -------- --------- -------------
DIVIDENDS TO SHAREHOLDERS:
From investment income_net............ (14,117) -- (55,897) (441,748)
In excess of investment income_net..... -- (32,220) -- --
From net realized gain on investments.. -- (677,557) -- (212,842)
----------- -------- --------- -------------
TOTAL DIVIDENDS.................. (14,117) (709,777) (55,897) (654,590)
----------- -------- --------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......... 11,736,296 12,327,171 24,005,189 26,817,975
Dividends reinvested................... 14,115 674,755 55,558 630,047
Cost of shares redeemed................ (5,912,594) (9,135,407) (10,230,450) (18,580,966)
----------- -------- --------- -------------
INCREASE IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS..... 5,837,817 3,866,519 13,830,297 8,867,056
----------- -------- --------- -------------
TOTAL INCREASE IN NET ASSETS 7,502,135 3,661,257 15,129,546 8,283,403
NET ASSETS:
Beginning of year...................... 25,000 7,527,135 25,000 15,154,546
----------- -------- --------- -------------
End of year............................ $ 7,527,135(3) $11,188,392(3) $15,154,546 (4) $23,437,949 (4)
============ =========== =========== ============

SHARES SHARES SHARES SHARES
------------- ------------- ---------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 866,244 799,229 1,753,333 1,879,823
Shares issued for dividends reinvested. 953 43,146 4,162 43,906
Shares redeemed........................ (399,526) (584,999) (736,070) (1,310,912)
------------- ------------- ---------- --------------
NET INCREASE IN SHARES OUTSTANDING 467,671 257,376 1,021,425 612,817
============ =========== =========== ============

(1) From October 1, 1992 (commencement of operations) to August 31, 1993.
(2) From September 30, 1992 (commencement of operations) to
August 31, 1993.
(3) Includes undistributed investment income-net; $22,024 in 1993 and
distributions in excess of investment income-net; ($2,150) in 1994.
(4) Includes undistributed investment income-net: $218,220 in 1993
and $538,317 in 1994.
See notes to financial statements.
</TABLE>

DREYFUS-WILSHIRE TARGET FUNDS, INC.
FINANCIAL HIGHLIGHTS
Reference is made to pages 3 and 4 of the Fund's Prospectus dated December
30, 1994.
See notes to financial statements.

DREYFUS-WILSHIRE TARGET FUNDS, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
Reference is made to pages 3 and 4 of the Fund's Prospectus dated December
30, 1994.
See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company and operates as a
series company issuing four classes of shares of Common Stock: the Large
Company Growth Portfolio, the Large Company Value Portfolio, the Small
Company Growth Portfolio and the Small Company Value Portfolio. The Fund
accounts separately for the assets, liabilities and operations of each
series. Wilshire Associates Incorporated ("Wilshire") serves as the Fund's
investment adviser. The Dreyfus Corporation ("Dreyfus") serves as the Fund's
administrator. Dreyfus Service Corporation, a wholly-owned subsidiary of
Dreyfus, acted as the exclusive distributor of the Fund's shares until August
24, 1994. Effective August 24, 1994, Dreyfus became a direct subsidiary of
Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. ("Premier") was
engaged as the Fund's distributor. Premier, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional
Administration Services, Inc., a provider of mutual fund administration
services, the parent company of which is Boston Institutional Group, Inc.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Each series' investments in securities
(including 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. Short-term
investments are carried at amortized cost, which approximates value.
(B) 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.
(C) EXPENSES: Expenses directly attributable to each series are charged
to that series' operations; expenses which are applicable to all series are
allocated among them.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are
recorded by each series on the ex-dividend date. Dividends from investment
income-net and dividends from net realized capital gain, with respect to each
series, are normally declared and paid annually, but each series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that a net realized
capital gain of a series can be offset by a capital loss carryover of that
series, such gain will not be distributed.
Dividends in excess of investment income_net for financial statement
purposes on the Small Company Growth Portfolio resulted primarily from
distributions of taxable income necessary to satisfy tax requirements and to
avoid a 4% excise tax. Accordingly, $41,293 of accumulated investment
income-net was reclassified to paid-in-capital since it was not deductible
for federal income tax purposes.

(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 Internal Revenue Code, and to make
distributions of taxable income sufficient to relieve it from substantially
all Federal income and excise taxes. For Federal income tax purposes, each
series is treated as a single entity for the purpose of determining such
qualification.
The Large Company Growth Portfolio has an unused capital loss carryover
of approximately $53,000 available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
August 31, 1994. The carryover does not include net realized securities
losses from November 1, 1993 through August 31, 1994, which are treated, for
Federal income tax purposes, as arising in fiscal 1995. If not applied,
$2,000 of the carryover expires in fiscal 2001 and $51,000 expires in fiscal
2002.
NOTE 3-INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS
WITH AFFILIATES:
(A) Fees paid by the Fund pursuant to the provisions of an Investment
Advisory Agreement with Wilshire and an Administration Agreement with Dreyfus
are payable monthly based on annual rates of .10 of 1% and .20 of 1%,
respectively, of the average daily value of each series' net assets. The
agreements further provide that if in any full fiscal year the aggregate
expenses of any series, exclusive of interest on borrowings, taxes, brokerage
and extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund, that series may deduct from payments to be made
to Wilshire and Dreyfus, or Wilshire and Dreyfus will bear, the amount of
such excess to the extent required by state law in proportion to their
respective fees. The most stringent state expense limitation applicable to
the Fund presently requires reimbursement of expenses in any full fiscal year
that such expenses of a series exceed 2 1/2% of the first $30 million, 2% of
the next $70 million and 1 1/2% of the excess over $100 million of the
average value of that series' net assets in accordance with California "blue
sky" regulations. However, Wilshire and Dreyfus had undertaken from September
1, 1993 through January 11, 1994 to reimburse all fees and expenses of each se
ries and thereafter, had undertaken through October 31, 1994, or until such
time as the net assets of a series exceed $50 million, regardless of whether
they remain at that level, to waive receipt of the advisory fee and
administration fee payable to it by each series. In addition, Dreyfus
voluntarily assumed other expenses of each series as follows: from January
12, 1994 through January 24, 1994 for the Small Company Value Portfolio,
through January 25, 1994 for the Large Company Value Portfolio, through
February 7, 1994 for the Large Company Growth Portfolio and through February
9, 1994 for the Small Company Growth Portfolio.

The expense reimbursements, pursuant to the undertakings and the
voluntary assumption of other expenses amounted to the following for the year
ended August 31, 1994:
ADVISORY FEE ADMINISTRATION FEE EXPENSES
WAIVED BY WAIVED BY ASSUMED BY
WILSHIRE DREYFUS DREYFUS TOTAL
------------ -------------- ------------- ------------
<S> <C> <C> <C> <C>
Large Company Growth Portfolio............. $ 8,137 $16,275 $33,505 $ 57,917
Large Company Value Portfolio.............. 11,133 22,267 33,869 67,269
Small Company Growth Portfolio............. 8,397 16,793 35,969 61,159
Small Company Value Portfolio.............. 20,919 41,838 53,526 116,283

</TABLE>
The undertakings may be modified by Wilshire or Dreyfus from time to
time, provided that the resulting expense reimbursement would not be less
than the amount required pursuant to the agreements.

(B) Pursuant to the Fund's Shareholder Services Plan, each series
reimburses Dreyfus Service Corporation an amount not to
exceed an annual rate of .25 of 1% of the value of a series' average daily
net assets for servicing shareholder accounts. 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 following summarizes the aggregate amount charged by Dreyfus Service
Corporation pursuant to the Shareholder Services Plan during the year ended
August 31, 1994:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Large Company Growth Portfolio $19,030 Small Company Growth Portfolio $16,387
Large Company Value Portfolio 27,242 Small Company Value Portfolio 52,010
</TABLE>

(C) Prior to August 24,1994 certain officers and directors of the
Fund were "affiliated persons," as defined in the Act, of
Wilshire and Dreyfus. Each director who is not an "affiliated person"
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting.
(D) A 1% redemption fee is charged on certain redemptions of Series'
shares (including redemptions through use of the Exchange Privilege) where
the redemption or exchange occurs within a six-month period following the
date of issuance. During the year ended August 31, 1994, redemption fees for
each series were as follows:
<TABLE>
<CAPTION>

<S> <C> <S> <C>
Large Company Growth Portfolio $258 Small Company Growth Portfolio $ 642
Large Company Value Portfolio 778 Small Company Value Portfolio 3,000
</TABLE>

NOTE 4-SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and
sales of investment securities, other than short-term securities, for
the year ended August 31, 1994:
<TABLE>
<CAPTION>

PURCHASES SALES
------------ ---------------
<S> <C> <C>
Large Company Growth Portfolio.......................... $ 1,747,029 $1,778,939
Large Company Value Portfolio........................... 10,276,520 5,126,876
Small Company Growth Portfolio.......................... 6,441,205 3,887,570
Small Company Value Portfolio........................... 19,921,441 9,977,568
</TABLE>

(B) The following summarizes the accumulated net unrealized appreciation
on investments for each series at August 31, 1994:
GROSS GROSS
APPRECIATION (DEPRECIATION) NET
------------ ------------- -----------
<S> <C> <C> <C>
Large Company Growth Portfolio.......................... $1,085,948 $ (466,590) $ 619,358
Large Company Value Portfolio........................... 670,177 (626,712) 43,465
Small Company Growth Portfolio.......................... 1,770,664 (503,102) 1,267,562
Small Company Value Portfolio........................... 1,326,488 (1,166,059) 160,429
</TABLE>

At August 31, 1994, the cost of investments of each series for Federal
income tax purposes was substantially the same as the
cost for financial reporting purposes. The cost of investments for each
series for financial reporting purposes as of August 31, 1994 was as follows:
<TABLE>
<CAPTION>

<S> <C> <S> <C>
Large Company Growth Portfolio $ 7,800,161 Small Company Growth Portfolio $ 9,320,082
Large Company Value Portfolio 12,396,299 Small Company Value Portfolio 24,188,709
</TABLE>

REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of the
Dreyfus-Wilshire Target Funds, Inc.
We have audited the accompanying statements of assets and liabilities of
the Dreyfus-Wilshire Target Funds, Inc. (comprised of the Large Company
Growth Portfolio, the Large Company Value Portfolio, the Small Company Growth
Portfolio and the Small Company Value Portfolio), including the statements of
investments, as of August 31, 1994, and the related statements of operations
for the year then ended, the statements of changes in net assets and the
financial highlights for the year then ended and for the period from
September 30, 1992 (when operations commenced for all series except Small
Company Growth Portfolio, which commenced operations October 1, 1992) to
August 31, 1993. The financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1994 by correspondence with the custodian.
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 the Dreyfus-Wilshire Target Funds, Inc. as of August 31, 1994,
the results of its operations, the changes in its net assets, and the
financial highlights for the periods referred to above, in conformity with
generally accepted accounting principles.

COOPERS & LYBRAND, L.L.P.

New York, New York
October 5, 1994