DREYFUS INTERNATIONAL EQUITY FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
Dreyfus International Equity Fund, Inc. marked its latest semi-annual
fiscal period November 30, 1995. During the six months, the United States
enjoyed an unprecedented securities boom based on an economy that was growing
at a sustainable rate, without inflation. Markets elsewhere in the world were
overshadowed for the time being by the stellar American performance.
ECONOMIC ENVIRONMENT
In Japan, the economic authorities were still trying to cope with major
debt problems that had weakened the nation's credit structure. Yet the
Government's evident determination to correct the situation encouraged
investors. For a good part of the period, the Yen was weak versus the dollar.
Lately, however, there has been some recovery by the Japanese currency, which
could have a negative impact on their exports.
The Southeast Asian "Tigers" are still experiencing market levels well
below previous peaks. This is due in part to excessive speculation, but also
to overheated economies. In due course, we expect these markets to resume
their impressive growth curves.
In Europe, the major factor recently has been the painful process of
adjusting, or preparing to adjust, economic realities to the coming of a
unified European currency. France was seriously affected by protest strikes,
which reduced securities values as well as economic activity for most of
November. The Germans, who still are the economic powerhouse of the
Continent, are burdened by a cost structure, including interest rates, that
has been kept high to offset the effect of absorbing East Germany. Elsewhere
on the Continent, country-specific problems, such as the political/financial
scandals in Italy, have put a damper on equities. By comparison, Britain
seems to be doing reasonably well, though faced with the possibility that the
Conservative government may not be able to retain power.
As far as concerns Europe, we have no doubt that the Maastricht Treaty
provides a very constructive path toward a much better future for the
participating economies. The journey toward that goal will, however, not be
smooth.
PORTFOLIO OVERVIEW
During the six months ended November 30, 1995, the Dreyfus International
Equity Fund's total return amounted to 1.16%,* which can be compared with the
2.36% return for the Morgan Stanley Capital International Europe,
Australasia, Far East (EAFE(R)) Index.** The Japanese market performed
strongly early in the period, but this was offset by the significant
weakening of the Yen. Within the Continent, the Swiss market benefited from
the safe haven status of the Franc.
The Far Eastern markets disappointed and we took advantage of weakness in
Hong Kong to add to the property stocks Shun Tak Holdings and Hong Kong Land
Holdings. Malaysia was weak latterly due to concern at an overheating economy
and, we now believe, offers reasonable value.
A number of changes were made to the country allocation - notably an
increase in the U.K. content to near 25%, compared to the EAFE Index
weighting of 16.6%. Small- and mid-size stocks have been underperforming in
this market though dividends have been growing at about 10% a year. Finally,
we sold out of the emerging markets of Mexico, South Africa and India.
Falling interest rates provide an encouraging background for markets in
early 1996. Positive returns, however, could be partly offset if the dollar
remains strong.
Sincerely,
[J.C. Whitaker signature logo]
J.C. Whitaker
Portfolio Manager
Dreyfus International Equity Fund
M & G Investment Management, Ltd.
December 18, 1995
London, U.K.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE(R)) Index is an unmanaged
index composed of a sample of companies representative of the market
structure of European and Pacific Basin countries. The return indicated
includes net dividends reinvested. The Index is the property of Morgan
Stanley & Co., Incorporated.
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DREYFUS INTERNATIONAL EQUITY FUND, INC.
STATEMENT OF INVESTMENTS NOVEMBER 30, 1995 (UNAUDITED)
COMMON STOCKS-92.6% SHARES VALUE
_______ _______
<S> <C> <C>
AUSTRALIA-3.3% BTR Nylex...................................... 600,000 $ 1,611,624
Boral.......................................... 800,000 1,893,584
_______
3,505,208
_______
FRANCE-6.4% BUT S.A........................................ 7,000 1,596,958
Banque Nationale de Paris...................... 31,400 1,388,713
Bollore Technologies S.A....................(a) 8,850 761,557
Castorama Dubois Investissements S.A........... 8,085 1,278,197
Compagnie Financiere de Paribas S.A., Cl.A..... 13,600 754,165
Imetal......................................... 9,000 1,044,627
_________
6,824,217
_________
GERMANY-4.0% Adidas AG...................................(a) 13,000 692,675
BASF AG........................................ 5,000 1,095,370
Etienne Aigner AG.............................. 4,000 1,857,636
Felten & Guilleaume Energietechnik............. 4,200 661,783
_________
4,307,464
_________
HONG KONG-4.6% HKR International.............................. 596,800 509,261
Hong Kong Land Holdings........................ 750,000 1,335,000
Lamex Holdings................................. 5,808,000 1,156,419
Shun Tak Holdings.............................. 1,700,000 1,153,921
Swire Pacific, Cl. A........................... 100,000 756,351
_________
4,910,952
_________
INDONESIA-.9% PT Indofood Sukses Makmur...................... 150,000 657,030
PT Telekomunikasi Indonesia, A.D.R..........(a) 15,000 315,000
_______
972,030
_______
ITALY-1.3% Edison S.P.A..................................... 340,000 1,358,724
_________
JAPAN-26.3% Amway Japan...................................... 55,000 2,237,745
Asahi Concrete Works............................. 24,000 261,176
DDI.............................................. 180 1,443,529
East Japan Railway.............................. 260 1,271,961
Hitachi Credit.................................. 100,000 1,813,726
Komori.......................................... 50,000 1,176,471
Kurimoto........................................ 140,000 1,413,726
Mitsubishi Bank................................. 80,000 1,741,176
Mitsubishi Chemical............................. 200,000 972,549
Mitsui Fudosan.................................. 125,000 1,544,118
NEC............................................. 130,000 1,656,863
NKK......................................... (a) 500,000 1,372,549
Nippon Express.................................. 170,000 1,471,667
Nippon Telegraph & Telephone.................... 204 1,662,000
Nissan Chemical Industries...................... 210,000 1,348,529
P.S............................................. 70,400 1,173,333
Sankyo.......................................... 19,500 927,206
Seven Eleven Japan.............................. 22,000 1,518,431
DREYFUS INTERNATIONAL EQUITY FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______
JAPAN (CONTINUED) Sumitomo Bank................................... 60,000 $ 1,152,941
Sumitomo Metal Mining........................... 160,000 1,394,510
Toshoku......................................... 100,000 525,490
______
28,079,696
__________
MALAYSIA-2.2% Hong Leong Credit Berhad........................ 120,000 477,730
Leader Universal Holdings Berhad................ 334,666 890,420
Metacorp Berhad................................. 107,667 244,023
Renong Berhad................................... 490,000 714,623
_________
2,326,796
_________
NETHERLANDS-5.5% Ahrend Groep N.V................................. 55,000 1,850,309
Akzo N.V......................................... 17,000 1,920,370
OCE-Van Der Grinten N.V.......................... 35,000 2,138,889
_________
5,909,568
_________
SINGAPORE-1.3% Overseas Union Bank............................... 220,000 1,395,761
_________
SPAIN-6.2% Hidroelectrica del Cantabrico S.A................. 46,000 1,476,773
Iberdrola S.A. ................................... 234,000 1,972,923
Repsol S.A. ...................................... 61,000 1,921,240
Uralita S.A. ..................................(a) 125,000 1,266,721
_________
6,637,657
_________
SWEDEN-2.0% Lindex AB......................................... 67,000 930,272
Volvo AB.......................................... 57,000 1,182,789
_________
2,113,061
_________
SWITZERLAND-5.7% Compagnie Financiere Michelin..................(a) 5,250 2,365,066
Elektrowatt AG (Warrants)......................(a) 14,000 1,029,324
Motor-Columbus.................................(a) 500 837,229
Pelikan Holding AG.............................(a) 7,000 630,684
Sulzer AG......................................... 2,150 1,187,846
_________
6,050,149
_________
UNITED KINGDOM-22.9% BAT Industries PLC............................... 210,000 1,791,247
Booker PLC....................................... 270,000 1,466,505
British Steel PLC................................ 700,000 1,807,312
British Telecommunications PLC................... 290,000 1,674,968
Burton Group PLC................................. 800,000 1,554,480
Concentric PLC................................... 232,000 614,081
Cookson Group PLC................................ 350,000 1,654,963
Glaxo Wellcome PLC............................... 120,000 1,600,074
Hammerson PLC.................................... 275,000 1,426,342
Harrisons & Crosfield PLC........................ 650,000 1,437,053
Lloyds Bank PLC.................................. 140,000 1,859,256
Lucas Industries PLC............................. 940,000 2,660,670
RTZ PLC.......................................... 110,000 1,577,812
DREYFUS INTERNATIONAL EQUITY FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_______ _______
UNITED KINGDOM (CONTINUED) Royal Doulton PLC............................... 500,000 $ 1,954,575
Welsh Water PLC................................. 125,003 1,316,788
__________
24,396,126
__________
TOTAL COMMON STOCKS
(cost $93,660,245)............................ $ 98,787,409
==========
PREFERRED STOCKS- 3.5%
GERMANY: Fresenius AG.................................... 3,000 $ 2,400,829
Herlitz AG...................................... 8,444 1,383,019
_________
TOTAL PREFERRED STOCKS
(cost $3,554,665)............................. $ 3,783,848
=========
PRINCIPAL
SHORT-TERM INVESTMENTS-2.6% AMOUNT
_______
UNITED STATES: U.S. Treasury Bills:
5.15%, 12/7/95.................................. $ 7,000 $ 6,994
5.57%, 12/21/95................................. 772,000 769,607
5.33%, 1/11/96.................................. 2,017,000 2,004,615
_________
TOTAL SHORT-TERM INVESTMENTS
(cost $2,781,362)............................. $ 2,781,216
=========
TOTAL INVESTMENTS (cost $99,996,272)................................................. 98.7% $105,352,473
==== ===========
CASH AND RECEIVABLES (NET)........................................................... 1.3% $ 1,393,476
==== =========
NET ASSETS........................................................................... 100.0% $106,745,949
===== ===========
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See independent accountants' review report and notes to financial statements.
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DREYFUS INTERNATIONAL EQUITY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $99,996,272)-see statement...................................... $105,352,473
Cash.................................................................... 672,727
Receivable for investment securities sold............................... 3,231,907
Dividends receivable.................................................... 545,431
Prepaid expenses........................................................ 81,753
___________
109,884,291
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 67,511
Due to Distributor...................................................... 67,511
Payable for Common Stock redeemed....................................... 1,568,245
Payable for investment securities purchased............................. 1,304,731
Accrued expenses........................................................ 130,344 3,138,342
___________ ___________
NET ASSETS.................................................................. $106,745,949
============
REPRESENTED BY:
Paid-in capital......................................................... $111,363,127
Accumulated undistributed investment income-net......................... 169,751
Accumulated net realized (loss) on investments.......................... (10,135,950)
Accumulated net unrealized appreciation on investments
and foreign currency transactions..................................... 5,349,021
_________
NET ASSETS at value applicable to 7,679,076 outstanding shares of
Common Stock, equivalent to $13.90 per share (300 million
shares of $.001 par value authorized)................................... $106,745,949
===========
See independent accountants' review report and notes to financial statements.
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DREYFUS INTERNATIONAL EQUITY FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED NOVEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $217,143 foreign taxes withheld at source)..... $1,488,245
Interest.............................................................. 166,800
_______
TOTAL INCOME.................................................... $1,655,045
EXPENSES:
Management fee-Note 2(a).............................................. 459,435
Shareholder servicing costs-Note 2(b,c)............................... 579,468
Custodian fees........................................................ 80,038
Professional fees..................................................... 33,700
Directors' fees and expenses-Note 2(d)................................ 22,869
Registration fees..................................................... 16,499
Prospectus and shareholders' reports-Note 2(b)........................ 16,065
Miscellaneous......................................................... 12,818
______
TOTAL EXPENSES.................................................. 1,220,892
_________
INVESTMENT INCOME-NET........................................... 434,153
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments and foreign currency
transactions-Note 3................................................... $ 56,474
Net unrealized appreciation on investments and foreign currency
transactions.......................................................... 2,001,145
_________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 2,057,619
__________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,491,772
=========
See independent accountants' review report and notes to financial statements.
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DREYFUS INTERNATIONAL EQUITY FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MAY 31, NOVEMBER 30, 1995
1995 (UNAUDITED)
________ ___________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 144,098 $ 434,153
Net realized gain (loss) on investments............................. (9,638,920) 56,474
Net unrealized appreciation (depreciation) on investments for the period (2,647,103) 2,001,145
___________ _________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS... (12,141,925) 2,491,772
___________ _________
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.......................................... (144,098) __
In excess of investment income-net.................................. (207,897) __
From net realized gain on investments............................... (2,933,301) __
___________ _________
TOTAL DIVIDENDS................................................... (3,285,296) __
___________ _________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold....................................... 514,593,936 206,259,574
Dividends reinvested................................................ 3,064,914 __
Cost of shares redeemed............................................. (544,228,996) (239,914,548)
____________ ____________
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.......... (26,570,146) (33,654,974)
___________ ___________
TOTAL (DECREASE) IN NET ASSETS................................ (41,997,367) (31,163,202)
NET ASSETS:
Beginning of period................................................. 179,906,518 137,909,151
___________ ___________
End of period [including distributions in excess of investment income-net;
($237,568) and undistributed investment income-net;
$169,751, respectively]........................................... $ 137,909,151 $ 106,745,949
=========== ===========
SHARES SHARES
_______ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 35,280,834 14,781,911
Shares issued for dividends reinvested.............................. 217,216 __
Shares redeemed..................................................... (37,294,477) (17,139,210)
___________ ___________
NET (DECREASE) IN SHARES OUTSTANDING.............................. (1,796,427) (2,357,299)
========== ==========
See independent accountants' review report and notes to financial statements.
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DREYFUS INTERNATIONAL EQUITY FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED MAY 31, NOVEMBER 30, 1995
________________________
PER SHARE DATA: 1994(1) 1995 (UNAUDITED)
____ ____ ______
<S> <C> <C> <C>
Net asset value, beginning of period....................... $12.50 $15.20 $13.74
_____ ____ _____
INVESTMENT OPERATIONS:
Investment income-net...................................... .05 .01 .05
Net realized and unrealized gain (loss) on investments..... 2.74 (1.19) .11
_____ ______ _____
TOTAL FROM INVESTMENT OPERATIONS......................... 2.79 (1.18) .16
_____ ______ _____
DISTRIBUTIONS:
Dividends from investment income-net....................... (.02) (.01) __
Dividends in excess of investment income-net............... (.04) (.02) __
Dividends from net realized gain on investments............ (.03) (.25) __
_____ ______ _____
TOTAL DISTRIBUTIONS...................................... (.09) (.28) __
_____ ______ _____
Net asset value, end of period............................. $15.20 $13.74 $13.90
====== ====== =====
TOTAL INVESTMENT RETURN........................................ 22.32%(2) (7.81%) 1.16%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................... 1.71%(2) 1.92% 1.00%(2)
Ratio of net investment income to average net assets....... .11%(2) .09% .35%(2)
Decrease reflected in above expense ratios due to
undertakings by Dreyfus.................................. .16%(2) __ __
Portfolio Turnover Rate.................................... 51.32%(2) 40.15% 16.64%(2)
Net Assets, end of period (000's Omitted).................. $179,907 $137,909 $106,746
(1) From June 29, 1993 (commencement of operations) to May 31, 1994.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
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DREYFUS INTERNATIONAL EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. M&G
Investment Management Limited ("M&G") serves as the Fund's sub-investment
adviser. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales load. The Distributor, located at One Exchange Place, Boston,
Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution Services,
Inc., a provider of mutual fund administration services, which in turn is a
wholly-owned subsidiary of FDI Holdings, Inc., the parent company of which is
Boston Institutional Group, Inc. Dreyfus is a direct subsidiary of Mellon
Bank, N.A.
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Fund not to distribute such gain.
Dividends in excess of investment income-net result from Federal income
tax distribution requirements, primarily unrealized gains on Passive Foreign
Investment Companies and foreign currency transactions.
DREYFUS INTERNATIONAL EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
In accordance with a recently adopted Statement of Position (SOP 93-02)
certain differences resulting from the classification
of gains/losses recognized on foreign currency transactions and PFIC's for
book and tax purposes and the recording of related distributions to
shareholders have been reclassified. To reflect these reclassifications,
during the six months ended November 30, 1995 the Fund credited paid-in
capital $167,356 and charged accumulated undistributed net investment income
and accumulated net realized loss on investments $26,835 and $140,521
respectively. During the year ended May 31, 1995, the Fund charged paid-in
capital $253,131, and credited accumulated undistributed net investment
income and accumulated net realized loss on investments $68,998 and $184,132,
respectively. These reclassifications had no effect on net investment income,
net realized gains and net assets.
(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.
The Fund has an unused capital loss carryover of approximately $2,639,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to May 31, 1995. The
carryover does not include net realized securities losses from November 1,
1994 through May 31, 1995 which are treated, for Federal income tax purposes,
as arising in fiscal 1996. If not applied, the carryover expires in fiscal
2003.
NOTE 2- INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSAC
TIONS WITH AFFILIATES:
(A) Pursuant to a Management Agreement with Dreyfus, the management fee
is computed at the annual rate of .75 of 1% of the average daily value of the
Fund's net assets and is payable monthly. Dreyfus and M&G have agreed that if
in any full fiscal year the Fund's aggregate expenses, exclusive of interest,
taxes, brokerage and extraordinary expenses, exceed the expense limitation of
any state having jurisdiction over the Fund, Dreyfus and M&G will bear the
excess expense in proportion to their management fee and sub-advisory fee to
the extent required by state law. The most stringent state expense limitation
applicable to the Fund presently requires reimbursement of expenses in any
full fiscal year that such expenses (excluding distribution expenses and certa
in expenses as described above) 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 the Fund's net assets in accordance with California "blue
sky" regulations. No expense reimbursement was required for the six months
ended November 30, 1995.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and M&G,
the sub-advisory fee is computed at the annual rate of .30 of 1% of the
average daily value of the Fund's net assets and is payable monthly by
Dreyfus.
Effective December 1, 1995, Dreyfus Transfer, Inc., a wholly-owned
subsidiary of Dreyfus, serves as the Fund's Transfer and Dividend Disbursing
Agent.
(B) Pursuant to the Fund's Distribution Plan (the "Plan") pursuant to
Rule 12b-1 under the Act, the Fund (a) reimburses the Distributor for
payments to certain Service Agents for distributing the Fund's shares and (b)
pays the Manager, Dreyfus Service Corporation, a wholly-owned subsidiary of
Dreyfus and any affiliate of
DREYFUS INTERNATIONAL EQUITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
either of them for advertising and marketing relating to the Fund, at an
aggregate annual rate of .50 of 1% of the value of the Fund's average daily
net assets. The Distributor may pay one or more Service Agents in respect of
distribution services. The Distributor determines the amounts, if any, to be
paid to Service Agents under the Plan and the basis on which such payments
are made. The fees payable under the Plan are payable without regard to
actual expenses incurred. The Plan also separately provides for the Fund to
bear the costs of preparing, printing and distributing certain of the Fund's
prospectuses and statements of additional information and costs associated
with implementing and operating the Plan, not to exceed the greater of
$100,000 or .005 of 1% of the Fund's average daily net assets for any full
fiscal year. During the six months ended November 30, 1995, $308,503 was
charged to the Fund pursuant to the Plan.
(C) Pursuant to the Fund's Shareholder Services Plan, the Fund pays the
Distributor an annual rate of .25 of 1% of the value of the Fund's 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. For the six months ended November 30, 1995, $153,145 was charged to
the Fund by the Distributor pursuant to the Shareholder Services Plan.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended November 30,
1995 amounted to $19,138,926 and $44,098,561, respectively.
At November 30, 1995, accumulated net unrealized appreciation on
investments was $5,356,201, consisting of $11,114,100 gross unrealized
appreciation and $5,757,899 gross unrealized depreciation, excluding foreign
currency transactions.
At November 30, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS INTERNATIONAL EQUITY FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS INTERNATIONAL EQUITY FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus International Equity Fund, Inc., including the statement of
investments, as of November 30, 1995, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended November 30, 1995. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
May 31, 1995 and financial highlights for each of the two years in the period
ended May 31, 1995 and in our report dated June 30, 1995, we expressed an
unqualified opinion on such statement of changes in net assets and financial
highlights.
[Ernst and Young LLP signature logo]
New York, New York
January 9, 1996
[Dreyfus lion "d" logo]
DREYFUS INTERNATIONAL
EQUITY FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
M&G Investment Management Limited
Three Quays, Tower Hill
London, EC3R 6BQ, England
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 095SA9511
[Dreyfus logo]
International
Equity Fund, Inc.
Semi-Annual
Report
November 30, 1995
