DREYFUS EMERGING MARKETS FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The following semi-annual report on the Dreyfus Emerging Markets Fund
comes to you from D. Kirk Henry, the portfolio manager.
Kirk, who has managed the Fund since its inception on June 28, joined The
Boston Company - our corporate affiliate - in 1994 as an equity portfolio
manager. He is a Vice President of The Boston Company and has had 14 years
experience in the investment field.
Prior to joining The Boston Company he was Executive Vice President at
Cseh International & Associates, Inc., the international money management
division of Cashman Farrell and Associates. Previously, he was an
international portfolio manager at Provident Capital Management, Inc. He
started his career as a securities analyst with First Chicago Investment
Advisors and Sears Investment Management Co.
Kirk graduated with a B.A. in Human Biology from Stanford University in
1981 and received his MBA in accounting/finance from the University of
Chicago in 1984. He was awarded a Chartered Financial Analyst designation in
1986. In addition, he is a member of the Boston Security Analysts Society.
We have great confidence in Kirk Henry's ability to manage investments on
your behalf.
Sincerely,
[Stephen E. Canter signature logo]
Stephen E. Canter
Chief Investment Officer
DREYFUS EMERGING MARKETS FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Dreyfus Emerging Markets Fund was started five months ago on June 28,
1996. The emerging markets during this period declined 4.62% as measured by
the Morgan Stanley Capital International Emerging Markets Free Index
(MSCI/EMF).* Your Fund's performance, though down, didn't decline as much,
falling 2.16%.**
The U.S. market continued, during the period under review, to outpace the
international markets including the emerging markets. This is the second year
emerging markets have underperformed both the U.S. market and the developed
international markets. Over the past two years on an annualized basis, the
MSCI/EMF declined 5.9%, The Morgan Stanley Capital International World Index
rose 16.6%, and The Morgan Stanley Capital International Europe, Australasia,
Far East (EAFE (R)) Index rose 7.9%. This underperformance can be viewed as
an opportunity to diversify a portion of one's portfolio into the emerging
markets, which offer potentially higher returns. The GNP of the emerging
markets is growing at approximately twice the rate of developed markets. This
can translate into faster earnings growth and potentially higher stock market
returns. The emerging markets make up 85% of the world's population, 77% of
the land mass but only 23% of the GDP and 16% of the world's stock market
capitalization. Over the long term, the GDP and stock market capitalization
of the emerging markets will rise. The valuation of the emerging markets is
lower than international and world markets (see table). In addition, the
price-to-earnings ratio and price-to-book value ratio of the Fund's portfolio
is lower than the MSCI/EMF Index.
Market Valuations
______________________
P/E P/BV P/CF
___ ___ ___
Emerging Markets Free 15.8 1.6 8.4
EAFE
(International) 26.3 2.3 10.3
World 22.9 2.7 10.8
U.S. 19.7 3.6 11.4
Source: Morgan Stanley Capital International (11/29/96)
Our investment style is a bottom-up value stock selection process. We
invest in companies with good valuations, increasing earnings momentum, and
strong business fundamentals. After using computer screens to evaluate
potential candidates, our team of analysts performs rigorous fundamental
analysis on each company we consider or own. Country weightings are
determined by our ability to find attractively priced companies with good
business fundamentals.
We own 73 companies across 18 different emerging market countries. We are
well diversified across industries, holding a wide variety of companies in
the financial, cyclical, consumer, and utility industries.
From a global perspective, we are overweighted in Latin America (36.9%
vs. 29.2% for the Index) and underweighted in Asia (30.2% vs. 51.2%). Latin
America is recovering from the recession of 1994/1995 and we have recently
purchased Empaques Ponderosa, a Mexican boxboard manufacturer, and Cimentos
Itau, a Brazilian cement company, both of which are experiencing increases in
earnings as the recovery takes hold. Our overweighting in Latin America has
been beneficial as the Emerging Markets Latin America Index year-to-date is
up 15.5% whereas Emerging Markets Asia Index is only up 2.5%.
Our underweighted positions in Asia stem partly from valuation criteria
and partly from fundamentals. The valuations in Asia are higher than other
emerging market regions, reflecting higher growth expectations. At the same
time, economies in Asia are slowing. Recently, because of strong capital
expenditure in plant and equipment, the cost
basis for companies has risen while at the same time, demand has fallen short
of expectations, creating an overcapacity situation in industries such as
chemicals and cement. Slowing GDP growth, lower capacity utilization, rising
costs, and lower demand are negatively affecting the earnings growth of some
Asian companies and markets.
The countries with the biggest market weighting in the portfolio are
Brazil (14.1%), Malaysia (10.7%), and Mexico (10.8%). Countries that are
overweighted include the Philippines (5.0%), Argentina (5.4%), and Portugal
(4.3%). Among the larger emerging markets, the best performing markets so far
this year include Taiwan (+36.7%), Brazil (+31.5%), Portugal (+26.8%),
Indonesia (+23.3%), Malaysia (+23.3%), the Philippines (+14.1%), and Mexico
(+13.8%). We are underweighted in South Africa (4.6% vs. 10.8%), India (2.9%
vs. 5.2%), and Thailand (2.7% vs. 5.5%). The worst performing markets so far
this year include many of the markets in which we are underweighted: South
Africa has fallen -17.9% year-to-date, Thailand by -29.8%, India -8.9%, and
Korea -29.4%.
Despite the stock price declines in India, South Africa and Thailand, we
haven't found many attractive stocks with improving fundamentals. Our
underweighted positions still remain. However, in Korea we have been finding
attractive value situations with strong fundamentals and our weighting there
increased to 5.4%. We have recently added Korea Mobile Telephone and Kookmin
Bank to the portfolio.
Our strategy is to hold a well-diversified portfolio of emerging markets
stocks in many different countries and industries. As valuations and
fundamentals change, our specific holdings will change. We currently are
looking at companies in Eastern Europe and, assuming we find attractive
candidates, our exposure in that region will increase in the coming months.
We are pleased that you are one of our shareholders. We intend to exert
our best efforts to bring you rewarding returns on your investment.
Sincerely,
[D. Kirk Henry signature logo]
D. Kirk Henry
Portfolio Manager
December 20, 1996
New York, N.Y.
* The Morgan Stanley Capital International (MSCI) Emerging Markets Free
Index (EMF) is a market capitalization weighted index composed of companies
representative of the market structure of 26 Emerging Market countries in
Europe, Latin America, and the Pacific Basin. The MSCI/ EMF Index excludes
closed markets and those shares in otherwise free markets which are not
purchasable by foreigners.
**Total return includes reinvestment of dividends and any capital gains paid.
<TABLE>
<CAPTION>
DREYFUS EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS NOVEMBER 30, 1996 (UNAUDITED)
Common Stocks-80.4% Shares Value
______ ______
<S> <C> <C> <C>
Argentina-5.5% Central Costanera, Cl. B............... 61,000 $ 195,298
Disco, ADR............................. 4,000 (a) 100,500
Telefonica de Argentina, ADR........... 6,500 165,750
YPF Sociedad Anonima, ADR.............. 11,400 265,050
______
726,598
______
Brazil-7.0% Aracruz Celulose, ADR.................. 18,100 140,275
Companhia Brasileira de Distribuicao Grupo
Pao de Acucar........................ 4,800 80,400
Companhia Energentina De Minas Gerais, ADR 9,200 293,250
Companhia Vale do Rio Doce............. 7,100 148,213
Telecomunicacoes Brasileiras, ADR...... 3,500 265,125
______
927,263
______
Chile-4.3% Banco BHIF, ADR........................ 13,300 (a) 224,438
Compania De Telecomunicaciones, ADR.... 1,500 142,687
Cristalerias De Chile, ADR............. 10,400 201,500
______
568,625
______
China-.9% Ek Chor China Motorcycle, ADR.......... 5,600 41,300
Jilin Chemicals Industrial, ADR........ 6,000 76,500
______
117,800
______
Hong Kong-3.5% Dah Sing Financial..................... 15,000 60,333
HSBC Holdings.......................... 4,488 93,452
Harbour Centre Development............. 132,000 192,913
Yue Yuen Industrial.................... 344,000 115,675
______
462,373
______
Hungary-1.1% Pick Szeged, ADR....................... 2,800 (a,b) 140,000
______
India-2.8% Reliance Industries, GDR............... 12,000 138,360
State Bank of India, GDR............... 8,300 (b) 135,124
Steel Authority, GDR................... 12,000 (b) 102,000
______
375,484
______
Indonesia-2.9% PT Bank Bali........................... 106,000 246,354
PT Indosat, ADR........................ 3,400 93,925
PT Sari Husada......................... 10,000 46,908
______
387,187
______
Israel-1.3% Super sol.............................. 7,050 172,511
______
Luxembourg-1.3% Espirito Santo Financial, ADR.......... 13,500 177,188
______
Malaysia-10.8% AMMB Holdings Berhad................... 28,000 222,715
Affin Holdings Berhad.................. 50,000 146,419
IOI Properties Berhad.................. 60,000 197,072
Leader Universal Holdings Berhad....... 57,000 128,571
MBF Capital Berhad..................... 80,000 125,366
Malayawata Steel Berhad................ 60,000 117,293
DREYFUS EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
Common Stocks (continued) Shares Value
______ ______
Malaysia (continued) Pacific & Orient Berhad................ 50,000 $ 127,622
Perusahaan Otomobil Nasional Berhad.... 25,600 162,089
Petronas Dagangan Berhad............... 43,000 114,009
United Engineers....................... 10,000 90,621
______
1,431,777
______
Mexico-10.8% ALFA................................... 43,100 192,618
ARA.................................... 65,000 (a) 145,040
Controladora Comercial Mexicana, ADR... 9,500 171,594
Empaques Ponderosa..................... 294,000 152,824
Grupo Financiero Inbursa............... 59,700 189,980
Tablex................................. 31,000 80,570
Telefonos de Mexico, Series L, ADR..... 6,800 206,550
Transportacion Maritima, ADR........... 29,000 199,375
Tubes de Acero de Mexico, ADR.......... 6,700 (a) 91,288
______
1,429,839
______
Peru-2.3% Telefonica del Peru, ADR............... 16,000 310,000
______
Philippines-5.0% Empire East Land Holdings.............. 225,000 (a) 109,161
First Philippine Holdings.............. 45,000 95,034
Philippine Long Distance Telephone..... 3,500 201,250
Philippine National Bank............... 12,000 (a) 150,045
Universal Robina....................... 230,000 113,775
______
669,265
______
Portugal-3.0% Banco Comercial Portugues, ADR......... 10,000 132,500
Cimpor-Cimentos de Portugal............ 5,500 114,923
Portugal Telecom, ADR.................. 5,800 153,700
______
401,123
______
Singapore-5.1% Development Bank of Singapore.......... 18,000 232,300
Far East Levingston Shipbuilding....... 45,000 239,037
Singapore Airlines..................... 20,000 204,235
______
675,572
______
South Africa-4.6% Barlow, ADR............................ 11,000 99,688
Barlow................................. 11,800 108,273
Malbak................................. 32,000 151,697
Polifin................................ 80,000 137,093
Sasol.................................. 9,000 111,279
______
608,030
______
South Korea-5.5% Kookmin Bank, GDR...................... 6,500 (a,b) 119,860
Korea Electric Power................... 5,000 160,024
Korea Mobile Telecommunications........ 17,400 226,200
Pohang Iron & Steel, ADR............... 11,000 221,375
______
727,459
______
Thailand-2.7% Bangkok Bank Public.................... 16,500 188,645
DREYFUS EMERGING MARKETS FUND
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1996 (UNAUDITED)
Common Stocks (continued) Shares Value
______ ______
Thailand (continued) Srithai Superware...................... 36,000 $ 176,194
______
364,839
______
TOTAL COMMON STOCKS
(cost $10,848,472)................... $10,672,933
======
Preferred Stocks-7.2%
Brazil: Banco Itau............................. 500 $ 197,483
Brasmotor.............................. 700 197,193
Companhia Cimento Portland Itau........ 600 175,992
Ericsson Telecomunicacoes.............. 11,800 183,911
Petroleo Brasileiro.................... 1,500 204,758
______
TOTAL PREFERRED STOCKS
(cost $978,146)...................... $ 959,337
======
Principal
Short-Term Investments-18.2% Amount
______
U.S. Treasury Bills: 5%, 12/5/96............................ $ 141,000 $ 140,902
5.02%, 12/12/96........................ 386,000 385,348
5.13%, 12/19/96........................ 562,000 560,477
4.92%, 1/2/97.......................... 92,000 91,587
4.98%, 1/16/97......................... 212,000 210,633
5.12%, 1/23/97......................... 187,000 185,614
4.98%, 2/27/97......................... 856,000 845,651
______
TOTAL SHORT-TERM INVESTMENTS
(cost $2,420,359).................... $ 2,420,212
======
TOTAL INVESTMENTS (cost $14,246,977)........................................ 105.8% $14,052,482
==== ======
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (5.8%) $ (764,412)
==== ======
NET ASSETS.................................................................. 100.0% $13,288,070
==== ======
Notes to Statement of Investments:
(a) Non-income producing.
(b) Securities exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
November 30, 1996, these securities amounted to $496,984 or approximately
3.7% of net assets.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS EMERGING MARKETS FUND
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1996 (UNAUDITED)
Cost Value
______ ______
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $14,246,977 $14,052,482
Cash....................................... 77,175
Cash denominated in foreign currencies..... 365,118 364,133
Dividends receivable....................... 13,530
Receivable for subscriptions to Common Stock 12,000
Prepaid expenses........................... 5,064
Due from The Dreyfus Corporation and affiliates2,514
______
14,526,898
______
LIABILITIES: Due to Distributor......................... 8,139
Net unrealized (depreciation) on forward
....... currency exchange contracts-Note 3(a) 683
Payable for investment securities purchased 1,201,433
Accrued expenses........................... 28,573
______
1,238,828
______
NET ASSETS.................................................................. $13,288,070
======
REPRESENTED BY: Paid-in capital............................ $13,383,789
Accumulated undistributed investment income-net4,959
Accumulated net realized gain (loss) on investments 94,741
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions (195,419)
______
NET ASSETS.................................................................. $13,288,070
======
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized)............. 1,086,938
NET ASSET VALUE per share................................................... $12.23
====
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS EMERGING MARKETS FUND
STATEMENT OF OPERATIONS
FROM JUNE 28, 1996 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1996 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends
(net of $3,506 foreign taxes withheld at source) $ 36,252
Interest................................... 33,822
_____
Total Income......................... $ 70,074
EXPENSES: Management fee-Note 2(a)................... 40,697
Custodian fees............................. 15,656
Legal fees................................. 14,648
Shareholder servicing costs-Note 2(b)...... 10,722
Audit fees................................. 10,359
Registration fees.......................... 7,337
Directors' fees and expenses-Note 2(c)..... 5,966
Prospectus and shareholders' reports....... 1,560
Miscellaneous.............................. 927
_____
Total Expenses....................... 107,872
Less-expense reimbursement from the Manager due to
undertaking-Note 2(a).................. (42,757)
_____
Net Expenses......................... 65,115
_____
INVESTMENT INCOME-NET....................................................... 4,959
_____
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments and
foreign currency transactions.......... $105,559
Net realized gain (loss) on forward currency
exchange contracts..................... (10,818)
_____
Net Realized Gain (Loss)............... 94,741
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions...... (195,419)
_____
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (100,678)
_____
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (95,719)
=====
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS EMERGING MARKETS FUND
STATEMENT OF CHANGES IN NET ASSETS
FROM JUNE 28, 1996 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1996 (UNAUDITED)
OPERATIONS:
<S> <C>
Investment income-net................................................................... $ 4,959
Net realized gain (loss) on investments................................................. 94,741
Net unrealized appreciation (depreciation) on investments............................... (195,419)
______
Net Increase (Decrease) in Net Assets Resulting from Operations....................... (95,719)
______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................................... 13,526,522
Cost of shares redeemed................................................................. (142,733)
______
Increase (Decrease) in Net Assets from Capital Stock Transactions..................... 13,383,789
______
Total Increase (Decrease) in Net Assets............................................. 13,288,070
NET ASSETS:
Beginning of Period..................................................................... --
______
End of Period........................................................................... $13,288,070
======
Undistributed investment income-net....................................................... $ 4,959
______
Shares
______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................................. 1,098,719
Shares redeemed......................................................................... (11,781)
______
Net Increase (Decrease) in Shares Outstanding......................................... 1,086,938
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
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 the period June 28, 1996 (commencement
of operations) to November 30, 1996. This information has been derived from
the Fund's financial statements.
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period.................................................... $12.50
____
Investment Operations:
Investment income-net................................................................... -
Net realized and unrealized gain (loss)
on investments........................................................................ (.27)
____
Total from Investment Operations........................................................ (.27)
____
Net asset value, end of period.......................................................... $12.23
====
TOTAL INVESTMENT RETURN..................................................................... (2.16%)(1)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................................. .85%(2)
Ratio of net investment income
to average net assets................................................................. .07%(2)
Decrease reflected in above expense ratio
due to undertaking by the Manager..................................................... .56%(2)
Portfolio Turnover Rate................................................................. 19.86%(2)
Average commission rate paid (3)........................................................ $.0212
Net Assets, end of period (000's Omitted)............................................... $13,288
(1) Exclusive of redemption fee.
(2) Not annualized.
(3) The Fund is required to disclose its average commission rate paid per
share for purchases and sales of investment
securities.
See notes to financial statements.
</TABLE>
DREYFUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus International Funds, Inc. (the "Company") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering two series, including the Dreyfus Emerging Markets Fund (the "Fund")
which commenced operations on June 28, 1996. The Fund's investment objective
is long-term capital appreciation. The Dreyfus Corporation ("Manager") serves
as the Fund's investment adviser. The Manager is a direct subsidiary of
Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Bank
Corporation. 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 charge. The Fund's fiscal year end is May 31.
As of November 30, 1996, APT Holdings Corporation, an indirect subsidiary
of Mellon Bank Corporation, held 400,000 shares of the Fund.
The Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: The Fund's 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. Forward currency exchange contracts are
valued at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in the market
prices of securities held. Such fluctuations are included with the net
realized and unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amount of dividends, interest and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of 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.
DREYFUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(E) FEDERAL INCOME TAXES: It is the policy of the Fund 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.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of 1.25% of the value of
the Fund's average daily net assets and is payable monthly. The Manager has
undertaken from June 28, 1996 through May 31, 1997 to reduce the management
fee paid by or reimburse such excess expenses of the Fund, to the extent that
the Fund's aggregate annual expenses, exclusive of taxes, brokerage, interest
on borrowings and extraordinary expenses, exceed an annual rate of 2% of the
value of the Fund's average daily net assets. The expense reimbursement,
pursuant to the undertaking, amounted to $42,757 during the period ended
November 30, 1996.
(B) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the Fund's average daily net
assets for the provision of certain services. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
The Distributor may make payments to Service Agents (a securities dealer,
financial institution or other industry professional) in respect of these
services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended November 30, 1996, the Fund was charged an
aggregate of $8,139 pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $938 during the period ended November 30, 1996.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Company 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:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the period ended November 30, 1996 amounted to $12,927,164 and
$1,201,667, respectively.
In addition, the following summarizes open forward currency exchange
contracts at November 30, 1996:
<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Forward Currency Buy Contracts Amounts Cost Value (Depreciation)
______________________________ _____ _____ _____ _______
<S> <C> <C> <C> <C>
Malaysian Ringgit, expiring 12/6/96..... 300,723 $119,065 $119,004 $ (61)
Philippines Peso, expiring 12/2/96...... 708,935 27,048 26,976 (72)
Philippines Peso, expiring 12/3/96...... 827,925 31,588 31,504 (84)
South African Rand, expiring 12/6/96.... 158,790 34,910 34,444 (466)
___
$(683)
===
</TABLE>
DREYFUS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency
exchange rates on its foreign portfolio holdings. When executing forward
currency exchange contracts, the Fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the Fund would incur a loss if
the value of the contract increases between the date the forward contract is
opened and the date the forward contract is closed. The Fund realizes a gain
if the value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the Fund would incur a loss
if the value of the contract decreases between the date the forward contract
is opened and the date the forward contract is closed. The Fund realizes a
gain if the value of the contract increases between those dates. The Fund is
also exposed to credit risk associated with counter party nonperformance on
these forward currency exchange contracts which is typically limited to the
unrealized gains on such contracts that are recognized in the Statement of
Assets and Liabilities.
(B) At November 30, 1996, accumulated net unrealized depreciation on
investments and forward currency exchange contracts was $195,178, consisting
of $400,877 gross unrealized appreciation and $596,055 gross unrealized
depreciation.
At November 30, 1996, 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 lion "d" logo]
DREYFUS EMERGING MARKETS FUND
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 327SA9611
[Dreyfus logo]
Emerging Markets
Fund
Semi-Annual
Report
November 30, 1996
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report for the Dreyfus
International Growth Fund for the annual reporting period ended May 31, 1997
covering the months since I took over its management last year. Over this
period, your Fund produced a total return of 7.36%.* The result is just
slightly below the 7.54% total return of the major international stock index,
the Morgan Stanley Capital International Europe, Australasia, Far East
(EAFERegistration Mark) Index.**
A number of factors influenced performance. Among them were investments
in Hong Kong, China and Brazil and tactical hedging of both European and
Japanese currencies. The Fund also benefitted from holdings in a number of
stocks with rapidly growing earnings such as Japanese small business lender
Nichiei, the Scandinavian media-internet firm Schibsted Group, the Dutch
temporary employment services provider Goudsmit and Hong Kong real estate
developer Cheung Kong Holdings. While your Fund was underweight in Japan
during the fiscal year just ended, a greater underweight there and deployment
of more assets to markets in Europe, such as the U.K. and Spain, would have
resulted in stronger overall performance. However, it is important to note
that performance of the Japanese market improved dramatically toward the end
of the reporting period.
INVESTMENT APPROACH
My investment policies and style are detailed below.
During my 13 years in the international equity management business I
have developed an investment process designed to deliver to investors a
portfolio that includes a wide variety of holdings in 15 to 25 markets around
the world, exposure to rapidly growing emerging markets when they are
attractive for investment, and active currency management. The crucial
challenge for an international investor is how to judge the relative
attractiveness of various markets when there are scores to choose from. I
address this challenge by evaluating inputs on growth, valuation, interest
rates, liquidity, technical factors and currency in each of the world's major
markets. My work in these areas is driven by PC-based tools I have developed
over time. Markets and industry sectors will be overweighted, underweighted
or market weighted relative to those of the EAFE Index. Presently, my
strategy is to overweight or underweight markets and industry sectors by no
more than 70%, with two exceptions. First, the largest market in the EAFE
Index, Japan, has a 50% -150% weighting band. The second exception is the
asset class of emerging markets. While these markets comprise only 7% of the
EAFE Index, the Dreyfus International Growth Fund may invest up to 30% of its
assets in this area when significant opportunities present themselves. The
reason for this policy is twofold. First, emerging markets have the highest
secular GDP and EPS growth rates in the world and an international portfolio
should offer shareholders substantial exposure to this long-term opportunity.
Second, emerging markets often reach valuation extremes seldom seen in more
developed equity markets. Making a significant investment at the appropriate
time could position the Fund to benefit from these extraordinary
opportunities.
In my investment process, I attempt to manage stocks in a disciplined
manner. I search for stocks expected to have higher earnings growth rates
than the market in which they trade. Attractive companies often have made a
corporate change in management, strategy or business structure that could
positively alter their future growth rate. Stocks purchased also need to have
attractive valuations both relative to their own history and that of the
local market. Companies are sold when growth is forecast to fall below my own
or consensus estimates, the valuation target is reached or the weighting in
that market reduced as a result of an asset allocation decision.
Foreign currencies are at least partially hedged, where practicable,
when I believe that a given currency has 10% or more downside risk against
the U.S. Dollar over the next 12 to 18 months.
Below I look at the three main geographic areas outside the U.S. _
Japan, Europe and Emerging Markets.
JAPAN
Japan was the poorest performing major market in the world during the
Fund's fiscal year ended 5/31/97. In my last letter I noted that while
Japanese profits were rising again and many economic indicators were pointing
to better times ahead, one critical factor for better stock market
performance was missing _ the confidence of local investors.
I am now delighted to report that as of this writing, sentiment appears
to have improved markedly. As a result market performance has improved
substantially over the last few months. The market's advance has been
broad-based with nearly all sectors of the market participating. Developments
in two areas appear to have been pivotal for the market. First, the six-year
decline in Japanese real estate prices has ended according to statistics
released near the end of your Fund's fiscal year. The leveling off in real
estate and a broad range of other prices appear to have given the stock
market new confidence that Japan's financial system is recovering from the
long crisis of the last few years. Second, the pace of reform and
deregulation of important portions of the country's economy, including its
financial and retail distribution systems, picked up several months ago and
appears to be accelerating. In the Japanese style of decision making, courses
of action are debated until a consensus is reached. While this can be a
lengthy process that frustrates many outside observers, the action phase that
follows is usually extremely vigorous. In moving toward deregulation and
reform, Japanese society is embarking on a course that is widely believed to
have a causal relationship that could result in better performing stock
markets.
Your Fund's investments in the Japanese market, in addition to the
previously mentioned Nichiei, include Otsuka Kagu, a company that is helping
to revolutionize the way Japanese consumers shop for furniture; Namco,
producer of video game software for the Sony Playstation and other platforms,
as well as cosmetics giant Shisheido which is embarking on a new growth
strategy emphasizing the new consumer markets of emerging Asian countries.
I currently disagree with some investors who argue that Japanese stocks
are expensive. While it is true that the average stock market
price-to-earnings ratio is nearly 50 times Dreyfus' estimate of current year
earnings, I believe this figure is distorted by extremely conservative
accounting policies and lack of consolidation of subsidiaries' earnings. The
price-to-earnings ratio is still the most widely used valuation method but
certainly not the only one. The chart at the right presents two other commonly
used valuation measures, price to cash flow per share (the actual cash
generated from the company's business rather than an accounting calculation)
and price-to-book. As shown, the Japanese market's price-to-cash-flow ratio
is about the same as that of the U.S. market while its price-to-book ratio is
substantially lower.
EUROPE
European strategy is unchanged. As detailed in my last letter, most of
the Dreyfus International Growth Fund's investments in European markets fall
into three areas.
First are a significant number of "new" companies, either IPOs (initial
public offerings of stock) or parts of very large companies being spun off
into independent publicly traded stocks. A prime example of such a holding is
the sporting goods company Adidas. This German company became a publicly
traded stock in a 1995 IPO. New management appears to have revitalized the
product line and marketing strategy.
Second, there are very major structural changes going on in various
European business sectors. For example, private savings plans are beginning
to grow very rapidly as individuals move toward supplementing public pension
plans with their own investments. Swedish insurance company Skandia Group
Forsakrings stands out among several investments your Fund has in this area.
The media industry is also changing. Television channels are proliferating
rapidly. Among the several investments your Fund has in this area, British
based British Sky Broadcasting Group and its fast growing satellite service
is notable.
Third, a large number of companies in Europe are restructuring,
re-engineering and generally rethinking the way they do business. One of the
main goals of these changes is improved financial performance. Among the
holdings in this category in the Dreyfus International Growth Fund are the
German specialty chemicals/consumer products company Henkel KGaA and Swedish
global appliance giant Electrolux Cl.B, the latter of which is just beginning
the process.
EMERGING MARKETS
The Dreyfus International Growth Fund's emerging markets investments
were steadily reduced during the second half of the fiscal year just ended.
They were cut from a high level of over 20% of the Fund near the middle of
the fiscal year to a relatively low level of only 8% at May 31, 1997. This
substantial change was made for reasons particular to each of the world's two
major concentrations of emerging stock markets, Asia and Latin America.
Many of the emerging economies in Asia are undergoing wrenching
changes. These changes are the result of their success and growing wealth.
Wages have risen in South Korea, Thailand and Malaysia to the point where
these economies generally can no longer efficiently produce low value-added
goods such as textiles that were the mainstay of their economies only a few
years ago.
Many observers refer to this phenomenon as the "Nike Effect." As shown
in the graph at right, Nike sourced 70% of its Asian production in South
Korea at the beginning of the 1980s. Many other manufacturers of apparel and
other basic goods used Korea as a production base during this period, and
that nation prospered greatly as a result. Korean Gross Domestic Product per
capita (the amount of goods and services produced per person) increased from
$1,981 per person in 1985 to $10,117 in 1996. During the second half of the
1980s Nike and many other manufacturers of more basic goods began moving
their production to countries that were just beginning to climb the ladder of
wealth. Today the company in our example, Nike, has nearly 80% of its Asian
production in Indonesia and China where per capita GDP is $994 and $668
respectively, a small fraction of that in Korea. This ongoing phenomenon
challenges the wealthier Asian emerging economies to move to higher
value-added industries such as electronics and to develop new service
industries. This transition may take some time. It is an important reason
that your Fund's investments in emerging Asian countries have been reduced.
Dreyfus International Growth Fund continues to invest in attractive
individual stocks in the emerging Asian markets, but I believe opportunities
are somewhat reduced in the current environment.
The Nike Effect
Source of Nike's Asian Production
Source: Financial Times, April 2, 1997
The story in Latin America is completely different. Over the past decade,
a host of Latin American nations including
Argentina, Peru, Chile, Mexico and most recently Brazil have embarked on
economic reforms emphasizing freer markets, competition and trade. These
reforms have been quite successful despite painful setbacks such as the
Mexican currency devaluation of late 1994/early 1995. Over the fiscal year
ended May 31, 1997 your Fund's investments in Latin America have emphasized
Brazil, where the reform process has accelerated dramatically over the last
several years, and Mexico, which is getting back on track after its currency
crisis. Late in the fiscal year the Dreyfus International Growth Fund's
investments in Brazil were sold after having made substantial gains. While I
believe Brazil will continue to develop in a positive way, some challenges
that lie immediately ahead may cause market turbulence.
CURRENCY
During the fiscal year just ended the Dreyfus International Growth Fund
partially hedged its positions in several European currencies as well as the
Japanese Yen in accordance with our investment approach and style. These
positions were maintained through fiscal year-end and beyond because economic
conditions that are conducive to currency weakness continue to be present in
both Europe and Japan.
Ownership of the Dreyfus International Growth Fund is designed to offer
investors the opportunity to increase long-term capital through ownership of
growth-oriented companies and economies outside the U.S. I will continue to
manage your Fund toward that goal.
Sincerely,
[Ron Chapman signature logo]
Ron Chapman
Portfolio Manager
June 17, 1997
New York, N.Y.
* 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 (EAFERegistration Mark) 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.
DREYFUS INTERNATIONAL GROWTH FUND, INC. MAY 31, 1997
[Exhibit A]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS INTERNATIONAL
GROWTH FUND, INC. AND THE MORGAN STANLEY CAPITAL
INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (EAFE Registration Mark) INDEX
Dollars
$14,408
Morgan Stanley Capital
International Europe,
Australasia, Far East
(EAFERegistration Mark) Index*
$13,649
Dreyfus International
Growth Fund
*Source: Lipper Analytical Services, Inc.
[Exhibit A]
<TABLE>
<CAPTION>
Average Annual Total Returns
One Year Ended From Inception (6/29/93)
May 31, 1997 to May 31, 1997
___________________ ______________________________
<S> <C>
7.36% 8.26%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus International
Growth Fund on 6/29/93 (Inception Date) to a $10,000 investment made in the
Morgan Stanley Capital International Europe, Australasia, Far East
(EAFERegistration Mark) Index on that date. For comparative purposes, the
value of the Index on 6/30/93 is used as the beginning value on 6/29/93. All
dividends and capital gain distributions are reinvested.
The Fund's performance shown in the line graph takes into account all
applicable fees and expenses. The Morgan Stanley Capital International
Europe, Australasia, Far East (EAFERegistration Mark) Index, which is the
property of Morgan Stanley & Co. Incorporated, is an unmanaged index composed
of a sample of companies representative of the market structure of European
and Pacific Basin countries and includes net dividends reinvested. The Index
does not take into account charges, fees and other expenses. Further
information relating to Fund performance, including expense reimbursements,
if applicable, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
STATEMENT OF INVESTMENTS MAY 31, 1997
Common Stocks_114.2% Shares Value
_____________ ___________
<S> <C> <C>
Australia_1.1% QNI 500,000 $ 1,023,142
_____________
Canada_1.3% Canadian Conquest Exploration........... (a) 275,000 347,520
Ranger Oil.............................. 75,000 787,500
_____________
1,135,020
_____________
Chile_1.3% Empresa Nacional Electricidad, A.D.R. ... 50,000 1,125,000
_____________
China_1.8% China Overseas Land & Investment......... 600,000 414,274
China Resources Enterprise............... 125,000 438,794
New World Infrastructure................. (a) 50,000 155,837
Shanghai Industrial Holdings............. 100,000 558,818
_____________
1,567,723
_____________
Finland_3.4% Cultor Oy, Ser. 1........................ 22,000 1,145,299
Huhtamaki Group.......................... 20,000 881,896
Sampo Insurance, Cl. A................... 11,000 972,222
_____________
2,999,417
_____________
France_6.8% Banque Nationale de Paris................ 30,000 1,233,640
Elf Aquitaine............................ 12,000 1,201,875
Compagnie Generale des Eaux.............. 7,500 924,319
Compagnie Generale des Eaux (Warrants)... 7,500 5,142
Groupe AB, A.D.R. ....................... 64,000 552,000
Michelin, Cl. B.......................... 18,000 985,141
Thomson CSF.............................. 40,000 1,142,163
_____________
6,044,280
_____________
Germany_10.4% Adidas................................... 11,500 1,210,349
Bankgesellschaft Berlin.................. 50,000 1,147,757
Daimler Benz............................. 7,000 539,724
Deutsche Bank............................ 28,000 1,554,735
GEA...................................... 2,200 902,961
Henkel KGaA.............................. 2,700 141,530
Hoechst.................................. 10,000 387,570
Leica Camera............................. 36,000 970,976
Metro.................................... 9,500 1,041,352
Volkswagen............................... 2,000 1,294,635
_____________
9,191,589
_____________
Hong Kong_3.2% Cheung Kong Holdings..................... 72,000 736,401
HSBC Holdings............................ 20,000 606,569
Hong Kong & China Gas.................... 360,000 627,218
New World Development.................... 75,000 476,221
Swire Pacific, Cl. A..................... 50,000 419,436
_____________
2,865,845
_____________
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Common Stocks (continued) Shares Value
___________ ___________
Ireland_2.1% Irish Continental Group.................. 70,000 $ 782,957
Jurys Hotel Group........................ 205,000 1,115,487
_____________
1,898,444
_____________
Israel_1.5% Teva Pharmaceutical Industries, A.D.R. .. 22,000 1,320,000
_____________
Italy_5.7% Bulgari.................................. 35,000 694,213
Credito Italiano......................... 600,000 895,645
Fiat..................................... 440,000 1,453,108
Parmalat Finanziaria..................... 540,000 773,760
Stet Societa' Finanziaria Telefonica..... 240,000 1,215,858
_____________
5,032,584
_____________
Japan_37.1% Advantest................................ 9,900 675,349
Bank of Tokyo-Mitsubishi................. 74,000 1,287,511
Canon.................................... 40,000 1,016,365
Circle K Japan........................... 12,000 641,861
Dai Nippon Printing...................... 47,000 943,239
Daikin Industries........................ 70,000 681,309
Dainippon Ink & Chemicals................ 190,000 703,704
Daiwa Securities......................... 160,000 1,181,051
Family Mart.............................. 24,200 1,108,906
Fuji Bank................................ 30,000 387,597
Fuji Photo Film.......................... 21,000 815,762
Fujitsu.................................. 90,000 1,100,775
Isetan................................... 45,000 581,395
Jusco.................................... 17,000 575,452
Kao...................................... 40,000 544,358
Konami................................... 15,000 536,176
Mabuchi Motor............................ 16,000 912,317
Matsushita-Kotobuki Electric Industrial.. 25,000 900,086
Murata Manufacturing..................... 13,000 516,193
NKK...................................... 350,000 690,353
Namco.................................... 22,000 773,127
Nichiei.................................. 8,000 751,077
Nintendo................................. 10,000 783,807
Nippon Soda.............................. 95,000 859,173
Nippon Steel............................. 167,000 490,500
Nippon Telegraph & Telephone, A.D.R. .... 20,000 937,500
Nippon Zeon.............................. 160,000 766,236
Nitto Electric Works..................... 85,700 1,587,037
Otsuka Kagu.............................. 14,000 1,169,681
P.S. .................................... 400 3,893
Pioneer Electronic....................... 26,000 644,961
Rohm..................................... 5,000 521,103
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Common Stocks (continued) Shares Value
__________ __________
Japan (continued) Shiseido................................. 49,000 $ 717,485
Showa Aluminum........................... 145,000 779,328
Sony..................................... 14,000 1,182,946
Sumitomo Bank............................ 90,000 1,248,062
Sumitomo Metal Mining.................... 110,000 768,389
Sumitomo Sitix........................... 50,000 1,063,738
Tokyo Electron........................... 16,500 834,238
Toyota Motor............................. 18,000 517,829
Uni-Charm................................ 20,000 675,280
_____________
32,875,149
_____________
Malaysia_2.9% Kentucky Fried Chicken Holdings.......... 280,000 1,080,780
Renong................................... 490,000 701,950
Tenaga Nasional.......................... 165,000 755,073
_____________
2,537,803
_____________
Mexico_1.4% Grupo Casa Autrey, A.D.R. ............... 20,000 352,500
Grupo Financiero Banamex Accival, Cl. B.. (a) 200,000 432,323
Grupo Financiero Bancomer, Cl. B......... (a) 1,255,000 470,625
Grupo Financiero Inbursa, Cl. B.......... 2,338 8,103
_____________
1,263,551
_____________
Netherlands_8.5% ABN Amro Holding......................... 40,000 739,892
Cap Gemini............................... 45,000 1,582,691
Goudsmit................................. 12,000 1,638,183
Koninklijke Pakhoed...................... 30,000 1,016,048
Philips Electronics...................... 11,000 602,386
Philips Electronics (New York Shares).... 17,000 952,000
PolyGram................................. 8,000 377,657
Verenigde Nederlandse Uitgeversbedrijven
Verenigd Bezit......................... 27,000 610,567
_____________
7,519,424
_____________
Norway_1.6% Schibsted................................ 77,000 1,438,262
_____________
Philippines_1.5% Ayala Land, Cl. B........................ 65,625 52,261
Philippine Long Distance Telephone....... 24,000 709,898
San Miguel, Cl. B........................ 180,000 542,662
_____________
1,304,821
_____________
Portugal_.9% Cimpor-Cimentos de Portugal.............. 38,000 835,912
_____________
Spain_1.4% Repsol S.A. ............................. 30,000 1,256,055
_____________
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Common Stocks (continued) Shares Value
__________ __________
Sweden_6.5% Electrolux, Cl. B........................ 30,000 $ 1,789,542
Granges.................................. 15,000 186,895
Haldex................................... 80,000 976,113
Skandia Forsakrings...................... 47,000 1,659,716
Sparbanken Sverige, Cl. A................ 60,000 1,177,534
_____________
5,789,800
_____________
Switzerland_.7% Novartis................................. 450 611,638
_____________
United Kingdom_13.1% Alvis.................................... 200,000 429,680
BTR...................................... 230,000 748,742
British Sky Broadcasting Group........... 90,000 848,700
Cadbury Schweppes........................ 100,000 897,900
Capital Radio............................ 85,000 794,580
Grand Metropolitan....................... 162,000 1,509,062
JBA Holdings............................. 50,000 783,100
Misys.................................... 18,000 408,852
Powerscreen International................ 50,000 511,270
Reuters Holdings......................... 120,000 1,350,048
Sema Group............................... 19,000 398,225
Serco Group.............................. 30,000 339,480
SmithKline Beecham....................... 65,000 1,120,899
Viatel................................... 108,000 702,000
Vodafone Group........................... 175,000 777,770
_____________
11,620,308
_____________
TOTAL COMMON STOCKS
(cost $92,115,493)..................... $101,255,767
==============
Preferred Stocks_1.0%
Germany; Henkel KGaA Vorzug
(cost $591,975)........................ 16,300 $ 921,325
==============
TOTAL INVESTMENTS (cost $92,707,468).......................................... 115.2% $102,177,092
======== ==============
LIABILITIES, LESS CASH AND RECEIVABLES........................................ (15.2%) $ (13,483,220)
======== ==============
NET ASSETS.................................................................... 100.0% $ 88,693,872
======== ==============
Notes to Statement of Investments:
(a) Non-income producing.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1997
Cost Value
_______________ _______________
<S> <C> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $ 92,707,468 $102,177,092
Dividends receivable....................... 312,521
Prepaid expenses........................... 49,481
_____________
102,539,094
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 65,040
Due to Distributor......................... 58,040
Cash overdraft due to Custodian............ 12,121,520
Net unrealized depreciation on forward
currency exchange contracts_Note 4(a).... 706,982
Payable for shares of Common Stock redeemed 585,780
Payable for investment securities purchased 207,616
Accrued expenses........................... 100,244
_____________
13,845,222
_____________
NET ASSETS.................................................................. $ 88,693,872
==============
REPRESENTED BY: Paid-in capital............................ $ 77,577,173
Accumulated distributions in excess of
investment income_net (177,176)
Accumulated net realized gain (loss) on investments,
foreign currency transactions and forward
currency exchange contracts......... 2,535,889
Accumulated net unrealized appreciation (depreciation)
on investments, foreign currency transactions and
forward currency exchange contracts.. 8,757,986
_____________
NET ASSETS.................................................................. $ 88,693,872
==============
SHARES OUTSTANDING
(300 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED)............. 5,604,583
NET ASSET VALUE, offering and redemption price per share.................... $15.83
========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1997
INVESTMENT INCOME
INCOME: Cash dividends (net of $205,489 foreign taxes
withheld at source).................... $1,555,118
Interest................................... 157,574
____________
Total Income......................... $1,712,692
EXPENSES: Management fee_Note 3(a)................... 713,190
Shareholder servicing costs_Note 3(b,c).... 884,962
Custodian fees............................. 114,219
Professional fees.......................... 49,373
Directors' fees and expenses_Note 3(d)..... 44,920
Registration fees.......................... 33,757
Prospectus and shareholders' reports_Note 3(b) 18,529
Loan commitment fees_Note 2................ 532
Miscellaneous.............................. 24,098
____________
Total Expenses....................... 1,883,580
____________
INVESTMENT (LOSS)........................................................... (170,888)
____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS_Note 4:
Net realized gain (loss) on investments and
foreign currency transactions.......... $3,737,795
Net realized gain (loss) on forward currency
exchange contracts
Short Transactions..................... 3,035,668
____________
Net Realized Gain (Loss)............. 6,773,463
Net unrealized appreciation (depreciation) on investments,
foreign currency transactions and
forward currency exchange contracts.... 1,844,082
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 8,617,545
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $8,446,657
=============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
May 31, 1997 May 31, 1996
_________________ _________________
OPERATIONS:
Investment income (loss)_net.............................................. $ (170,888) $ 709,200
Net realized gain (loss) on investments................................... 6,773,463 10,297,222
Net unrealized appreciation (depreciation) on investments................. 1,844,082 3,566,028
_________________ _________________
Net Increase (Decrease) in Net Assets Resulting from Operations......... 8,446,657 14,572,450
_________________ _________________
DIVIDENDS TO SHAREHOLDERS:
From investment income_net................................................ (571,399) ___
In excess of investment income_net........................................ (177,176) ___
Net realized gain on investments.......................................... (4,084,610) ___
_________________ _________________
Total Dividends......................................................... (4,833,185) ___
_________________ _________________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold............................................. 580,556,282 418,554,429
Dividends reinvested...................................................... 4,195,270 ___
Cost of shares redeemed................................................... (602,381,534) (468,325,648)
_________________ _________________
Increase (Decrease) in Net Assets from Capital Stock Transactions....... (17,629,982) (49,771,219)
_________________ _________________
Total Increase (Decrease) in Net Assets............................... (14,016,510) (35,198,769)
NET ASSETS:
Beginning of Period..................................................... 102,710,382 137,909,151
_________________ _________________
End of Period...................................................... $ 88,693,872 $ 102,710,382
================== =================
UNDISTRIBUTED INVESTMENT INCOME (DISTRIBUTIONS IN EXCESS OF INVESTMENT
INCOME)_NET................................................................. $ (177,176) $ 444,797
_________________ _________________
Shares Shares
_________________ _________________
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................... 38,309,032 29,117,194
Shares issued for dividends reinvested.................................... 285,781 ___
Shares redeemed........................................................... (39,620,262) (32,523,537)
_________________ _________________
Net Increase (Decrease) in Shares Outstanding........................... (1,025,449) (3,406,343)
================== =================
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
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.
Year Ended May 31,
________________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994(1)
________ ________ ________ ________
<S> <C> <C> <C> <C>
Net asset value, beginning of period........... $15.49 $13.74 $15.20 $12.50
________ ________ ________ ________
Investment Operations:
Investment income (loss)_net....................... (.02) .09 .01 .05
Net realized and unrealized gain (loss)
on investments................................. 1.11 1.66 (1.19) 2.74
________ ________ ________ ________
Total from Investment Operations.................. 1.09 1.75 (1.18) 2.79
________ ________ ________ ________
Distributions:
Dividends from investment income_net.................. (.09) __ (.01) (.02)
Dividends in excess of investment income_net........ (.03) __ (.02) (.04)
Dividends from net realized gain on investments... (.63) __ (.25) (.03)
________ ________ ________ ________
Total Distributions......................... (.75) __ (.28) (.09)
________ ________ ________ ________
Net asset value, end of period............... $15.83 $15.49 $13.74 $15.20
========= ========= ======== ========
TOTAL INVESTMENT RETURN........................... 7.36% 12.74% (7.81%) 22.32%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............ 1.98% 2.04% 1.92% 1.71%(2)
Ratio of net investment income (loss)
to average net assets...................... (.18%) .62% .09% .11%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.......... __ __ __ .16%(2)
Portfolio Turnover Rate....................... 158.04% 96.45% 40.15% 51.32%(2)
Average commission rate paid(3)..... $.0217 __ __ __
Net Assets, end of period (000's Omitted)...... ...$88,694 $102,710 $137,909 $179,907
(1) From June 29, 1993 (commencement of operations) to May 31, 1994.
(2) Not annualized.
(3) For fiscal years beginning December 1, 1995, the Fund is required to
disclose its average commission rate paid per share
for purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus International Growth Fund (the "Fund") is a series of Dreyfus
International Funds, Inc. (the "Company") which is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering two series including the Fund. The Fund's investment objective is to
provide investors with capital growth. The Dreyfus Corporation ("Manager")
serves as the Fund's investment adviser. The Manager is a direct subsidiary
of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. (the "Distributor")
is the distributor of the Fund's shares, which are sold to the public without
a sales load.
Effective June 24, 1996, the Fund changed its name from "Dreyfus
International Equity Fund, Inc." to "Dreyfus International Growth Fund."
The Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operation; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange. Forward currency exchange contracts are
valued at the forward rate.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in the market
prices of securities held. Such fluctuations are included with the net
realized and unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amount of dividends, interest and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of 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. This may result in distributions
that are in excess of investment income-net and net realized gain on a fiscal
year basis. 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.
During the year ended May 31, 1997, the Fund credited accumulated
undistributed net investment income $297,489 and charged accumulated net
realized gain on investments and paid-in-surplus $257,761 and $39,728,
respectively. The results of operations and net assets were not affected by
the reclassifications.
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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.
NOTE 2_BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended May
31, 1997, the Fund did not borrow under the Facility.
NOTE 3_MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of .75 of 1% of the value of the Fund's
average daily net assets and is payable monthly.
(B) Under the Distribution Plan (the "Plan") pursuant to Rule 12b-1 under
the Act, the Fund (a) reimburses the Distributor for payments to certain
Service Agents (a securities dealer, financial institution or other industry
professional) for distributing the Fund's shares and (b) pays the Manager,
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, and
any affiliate of 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 period ended May 31, 1997, $477,631 was
charged to the Fund pursuant to the Plan.
(C) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the Fund's average daily net
assets for the provision of certain services. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
The Distributor may make payments to Service Agents in respect of these
services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended May 31, 1997, the Fund was charged an
aggregate of $237,730 pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $104,954 during the period ended May 31, 1997.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Company 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 4_SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the period ended May 31, 1997 amounted to $144,674,472 and
$153,237,604, respectively.
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In addition, the following summarizes open forward currency exchange
contracts at May 31, 1997:
<TABLE>
<CAPTION>
Foreign Unrealized
Currency Appreciation
Forward Currency Exchange Contracts Amount Proceeds Value (Depreciation)
___________________ ________ ___________ ___________ _______________
Sales:
___
<S> <C> <C> <C> <C>
British Pounds, expiring 6/11/97...... 1,450,000 $ 2,331,600 $ 2,376,840 $ (45,240)
British Pounds, expiring 8/20/97...... 399,631 650,279 654,075 (3,796)
Dutch Guilders, expiring 6/11/97...... 3,350,000 1,741,617 1,746,793 (5,176)
Dutch Guilders, expiring 7/10/97...... 3,350,000 1,794,130 1,750,261 43,869
Dutch Guilders, expiring 8/20/97...... 4,759,872 2,508,232 2,494,038 14,194
French Francs, expiring 6/11/97....... 8,850,000 1,534,726 1,537,232 (2,506)
French Francs, expiring 7/10/97....... 8,850,000 1,583,128 1,539,934 43,194
French Francs, expiring 8/20/97....... 14,273,126 2,512,122 2,489,600 22,522
German Deutsche Marks, expiring 6/11/97 1,700,000 994,443 997,360 (2,917)
German Deutsche Marks, expiring 7/10/97 1,700,000 1,024,466 999,353 25,113
German Deutsche Marks, expiring 8/20/97 8,554,896 5,071,070 5,044,160 26,910
Italian Lire, expiring 6/11/97........ 2,000,000,000 1,163,738 1,183,418 (19,680)
Italian Lire, expiring 7/10/97........ 2,000,000,000 1,204,674 1,182,257 22,417
Japanese Yen, expiring 8/6/97......... 900,000,000 7,197,121 7,806,570 (609,449)
Japanese Yen, expiring 8/19/97........ 1,654,576,000 14,112,726 14,378,865 (266,139)
Swedish Krona, expiring 6/11/97....... 6,000,000 784,314 775,725 8,589
Swedish Krona, expiring 7/10/97....... 6,000,000 791,974 776,548 15,426
Swedish Krona, expiring 8/20/97....... 19,005,581 2,489,434 2,463,746 25,688
__________
Total............................... $(706,981)
===========
</TABLE>
The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency
exchange rates on its foreign portfolio holdings. When executing forward
currency exchange contracts, the Fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the Fund would incur a loss if
the value of the contract increases between the date the forward contract is
opened and the date the forward contract is closed. The Fund realizes a gain
if the value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the Fund would incur a loss
if the value of the contract decreases between the date the forward contract
is opened and the date the forward contract is closed. The Fund realizes a
gain if the value of the contract increases between those dates. The Fund is
also exposed to credit risk associated with counter party nonperformance on
these forward currency exchange contracts which is typically limited to the
unrealized gain on each open contract.
(B) At May 31, 1997, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $8,763,260,
consisting of $13,379,648 gross unrealized appreciation and $4,616,388 gross
unrealized depreciation.
At May 31, 1997, 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 GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS INTERNATIONAL GROWTH FUND
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus International Growth Fund
(one of the Series constituting Dreyfus International Funds, Inc.) as of May
31, 1997, and the related statement of operations for the year then ended,
the statement of changes in net assets for each of the two years in the
period then ended, and financial highlights for each of the years indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 1997, by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus International Growth Fund at May 31, 1997, the results of
its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights
for each of the indicated years, in conformity with generally accepted
accounting principles.
[Ernst & Young LLP signature logo]
New York, New York
July 8, 1997
DREYFUS INTERNATIONAL GROWTH FUND
(FORMERLY DREYFUS INTERNATIONAL EQUITY FUND, INC.)_SEE NOTE 1
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund elects to provide each
shareholder with their portion of the Fund's foreign taxes paid and the
income sourced from foreign countries. Accordingly, the Fund hereby makes the
following designations regarding its fiscal year ended May 31, 1997:
_ the total amount of taxes paid to foreign countries was $205,489.
_ the total amount of income sourced to foreign countries was $43,142.
As required by Federal tax law rules, shareholders will receive
notification of their proportionate share of foreign taxes paid and foreign
source income for the 1997 calendar year with Form 1099-DIV which will be
mailed by January 31, 1998.
For Federal tax purposes the Fund hereby designates $.47 per share as a
long-term capital gain distribution paid on December 20, 1996.
[Dreyfus lion "d" logo]
Registration Mark
DREYFUS INTERNATIONAL
GROWTH FUND
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 095AR975
[Dreyfus logo]
Registration Mark
International
Growth Fund
Annual Report
May 31, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS EMERGING MARKETS FUND AND THE MORGAN
STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS
FREE INDEX
EXHIBIT A:
MORGAN STANLEY
DREYFUS CAPITAL
PERIOD EMERGING INTERNATIONAL
MARKETS EMERGING MARKETS
FUND FREE INDEX *
6/28/96 10,000 10,000
8/31/96 9,688 9,555
11/30/96 9,784 9,538
2/28/97 10,893 10,673
5/31/97 11,407 10,709
* Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS INTERNATIONAL GROWTH FUND, INC. AND THE MORGAN
STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR
EAST (EAFE(R)) INDEX
EXHIBIT A:
MORGAN STANLEY
DREYFUS CAPITAL
PERIOD INTERNATIONAL INTERNATIONAL EUROPE,
GROWTH AUSTRALASIA, FAR EAST
FUND (EAFE(R)) INDEX *
6/29/93 10,000 10,000
5/31/94 12,232 11,537
5/31/95 11,277 12,106
5/31/96 12,713 13,398
5/31/97 13,649 14,408
* Source: Lipper Analytical Services, Inc.
