PRESIDENT'S LETTER
Dear Shareholder:
We are pleased to report to you on the activity of the Premier Growth
Fund, Inc. for the semi-annual reporting period ended April 30, 1994.
At the end of the reporting period, the Fund had 30.1% of its net assets
in short-term Treasuries, as unsettled conditions in equity markets have not
yet provided what we believe are advantageous conditions in which to commit
the funds. However, during the six-month reporting period short-term
Treasuries outperformed longer maturity fixed-income instruments as well as
the Standard & Poor's 500 Composite Stock Price Index.
CAPITALIZING ON GLOBAL OPPORTUNITIES
The portfolio continues to be structured to benefit from our economic and
investment outlook for the next three to five years. The prospect of
increasingly competitive global markets supports our current strategy
primarily to focus on what we believe to be high quality companies in diverse
sectors which already have, or we expect will have, the number one and two
products, services and proprietary technologies in each of their markets.
Portfolio holdings emphasize a wide variety of consumer nondurables,
financial services, technology and energy companies both domestic and foreign
that already occupy the dominant positions in their industries or, we expect,
can solidify their leadership in the near future. Rapid growth in emerging
economies gives workers disposable income and creates a growing middle class.
Both groups rely on brand recognition to ensure value and quality. Products
and services that are globally dominant and easily accessible are very much
in demand. Over the long term, we believe this approach is warranted.
During the past six months, we added to a number of positions in the
portfolio to build up the Fund's holdings. We also established some new
positions, with the purchase of shares of Zuerich Insurance, Pearson PLC,
Emerson Electric, Motorola, MCI Communications and Debeers Consolidated
Mining A.D.R. These purchases continue to reflect the Fund's emphasis on
companies that are international leaders in their industries and are
benefitting from expanding markets.
The concentration in consumer nondurable stocks had the most positive
impact on the Fund's performance during the period, particularly the holdings
in LVMH Moet Hennessy Louis Vuitton A.D.R. and Gillette. The drug company
Roche Holding A.D.S. and the chemical company duPont (E.I.) de Nemours also
performed well. The weakest areas were technology and financial services
which have underperformed in 1994 in the more volatile and uncertain
international market environment resulting from higher interest rates.
ECONOMIC OUTLOOK
The threat of a more robust recovery than has been projected, along with
rising interest rates, have adversely affected U.S. equities. Uncertainty
about the Federal Reserve Board's new preemptive policy, based on
expectations about future levels of inflation rather than confirmed
indicators, is constructive from a long-term perspective but unsettling in
the short term. Because we believe that responsible monetary policy will slow
growth and thus prolong the economic cycle, while keeping inflation at low
historical levels, we remain positive about the outlook for equity markets in
the United States. We believe that recovery in Germany and France, and
moderate growth in the United Kingdom, should continue to benefit their
equity markets.
We would like to take this opportunity to thank you for your
participation in the Fund and renew our commitment to serving your investment
needs.
Sincerely,
(signature logo)
Howard Stein
President
May 16, 1994
New York, N.Y.
PERFORMANCE
TOTAL RETURN FOR THE SIX MONTHS ENDED APRIL 30, 1994
Premier Growth Fund - Class A (1) 0.23%
Premier Growth Fund - Class B (2) (0.15%)
Standard & Poor's 500 Composite Stock Price Index (3) (2.31%)
Dow Jones Industrial Average (3) 1.39%
(1) Total return represents the change during the period in a
hypothetical account with dividends reinvested, without taking
into account the maximum initial sales charge.
(2) Total return represents the change during the period in a
hypothetical account with dividends reinvested, without taking
into account the applicable contingent deferred sales charge imposed on
redemptions.
(3) SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment
of income dividends and, where applicable, capital
gain distributions. Both the Dow Jones Industrial Average and the
Standard & Poor's 500 Composite Stock Price Index are widely accepted
unmanaged indexes of stock market performance.
PREMIER GROWTH FUND, INC.
ASSET ALLOCATION AS OF APRIL 30, 1994 DIVERSIFICATION OF FOREIGN INVESTMENTS
AS OF APRIL 30, 1994
Exhibit A
Cash Equivalents (33.9%)
Common Stocks (66.1%)
Exhibit B
Australia (1.2%)
Hong Kong (1.3%)
Canada (1.6%)
France (9.0%)
South Africa (1.7%)
Germany (2.0%)
United Kingdom (2.7%)
Switzerland (5.3%)
Netherlands (3.6%)
(Foreign Securities equal 28.4% of Total Net Assets)
<TABLE>
<CAPTION>
FIVE LARGEST SECTORS
AS OF OCTOBER 31, 1993 AS OF APRIL 30, 1994
---------------------- --------------------
<S> <C> <S> <C>
Consumer Staples.............. 13.0% Food, Beverage & Tobacco...... 14.8%
Energy........................ 9.3 Energy........................ 8.6
Financial..................... 8.6 Health Care................... 6.6
Health Care................... 7.9 Personal Care................. 5.9
Utilities..................... 6.8 Banking....................... 5.3
</TABLE>
TEN LARGEST HOLDINGS AS OF APRIL 30, 1994
Philip Morris Cos...................................... 2.9%
Coca-Cola.............................................. 2.9
General Electric....................................... 2.7
Royal Dutch Petroleum.................................. 2.4
Deutsche Bank A.D.R. .................................. 2.1
Roche Holding A.D.S.................................... 1.9
PepsiCo................................................ 1.8
LVMH Moet Hennessy Louis Vuitton A.D.R. ............... 1.8
Citicorp............................................... 1.7
Debeers Consolidated Mining A.D.R...................... 1.7
All percentages shown above are based on Total Net Assets.
<TABLE>
<CAPTION>
PREMIER GROWTH FUND, INC.
STATEMENT OF INVESTMENTS
APRIL 30, 1994 (UNAUDITED)
COMMON STOCKS--66.1% SHARES VALUE
------------- -------------
<S> <C> <C>
AEROSPACE & ELECTRONICS--4.6%
Emerson Electric................. 2,000 $ 116,500
General Electric................. 4,000 380,500
Motorola......................... 3,200 142,800
----------
639,800
----------
AUTO RELATED--1.7%
Ford Motor...................... 4,000 233,500
----------
BANKING--5.3%
Citicorp......................... 6,500(a) 240,500
Deutsche Bank A.D.R.............. 600 284,400
Union Bank of Switzerland........ 1,000 214,102
----------
739,002
----------
CHEMICALS--1.4%
duPont (E.I.) de Nemours........ 3,500 199,937
----------
ENERGY--8.6%
Chevron.......................... 2,500 222,500
Elf Aquitaine A.D.S.............. 5,000 181,875
Exxon............................ 3,500 220,062
Mobil............................ 3,000 234,750
Royal Dutch Petroleum............ 3,000 327,000
----------
1,186,187
----------
FINANCIAL--2.7%
Eurafrance....................... 500 188,017
HSBC Holdings PLC A.D.R.......... 1,600 179,200
----------
367,217
----------
FOOD, BEVERAGE & TOBACCO--14.8%
Coca-Cola........................ 9,500 395,437
Guinness PLC A.D.R............... 5,000 183,125
Kellogg.......................... 1,500 75,563
LVMH Moet Hennessy Louis Vuitton A.D.R. 7,500 246,562
Nestle A.D.R..................... 4,000 166,500
PepsiCo.......................... 7,000 255,500
Philip Morris Cos................ 7,500 408,750
Sara Lee......................... 5,000 103,750
Seagram.......................... 7,500 220,313
----------
2,055,500
----------
HEALTH CARE--6.6%
Johnson & Johnson................ 5,000 206,875
Merck............................ 7,000 207,375
Pfizer........................... 4,000 236,000
Roche Holding A.D.S.............. 5,500 262,625
----------
912,875
----------
INSURANCE--1.9%
Axa.............................. 700 175,819
Zuerich Versicherung............. 100 91,636
----------
267,455
----------
MEDIA/ENTERTAINMENT--3.6%
News A.D.S. ..................... 3,000 164,250
Pearson PLC...................... 20,000 196,061
Reader's Digest Association, Cl. A 3,500 145,250
----------
505,561
----------
METALS--1.7%
Debeers Consolidated Mining A.D.R. 10,000 237,500
----------
PREMIER GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
APRIL 30, 1994 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
------------- -------------
MULTI INDUSTRY--3.1% Eaux (Generale Des) 500 $ 232,458
Minnesota Mining & Manufacturing. 4,000 195,500
----------
427,958
----------
OFFICE & BUSINESS EQUIPMENT--2.0%
American Telephone & Telegraph .. 3,500 178,937
MCI Communications............... 4,000 91,500
----------
270,437
----------
PERSONAL CARE--5.9%
Gillette......................... 3,500 234,938
L'Oreal A.D.R.................... 5,000 218,750
Procter & Gamble................. 3,500 199,063
Unilever N.V..................... 1,500 166,500
----------
819,251
----------
RETAIL--2.2%
Toys R Us ....................... 3,500(a) 121,188
Wal-Mart Stores.................. 7,000 176,750
----------
297,938
----------
TOTAL COMMON STOCKS
(cost $9,055,030).............. $ 9,160,118
==========
CORPORATE BOND--.0%
PRINCIPAL
AMOUNT
-----------
Zuerich Insurance 2%, 3/1/2001
(cost $3,384).................. $ 5,000 $ 3,354
==========
SHORT-TERM INVESTMENTS--30.1%
U.S. TREASURY BILLS:
3.09%, 5/5/1994 ............... $519,000 $ 518,814
3%, 5/19/1994.................. 1,142,000 1,140,046
3.24%, 5/26/1994............... 1,322,000 1,318,902
3.44%, 6/2/1994................ 905,000 902,305
3.125%, 7/21/1994.............. 292,000 289,661
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $4,169,728).............. $ 4,169,728
==========
TOTAL INVESTMENTS
(cost $13,228,142).................................................... 96.2% $13,333,200
====== ==========
CASH AND RECEIVABLES (NET).................................................. 3.8% $ 526,935
====== ==========
NET ASSETS.................................................................. 100.0% $13,860,135
====== ==========
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1994 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $13,228,142)-see statement...................................... $13,333,200
Cash.................................................................... 162,180
Receivable for subscriptions to Common Stock............................ 287,808
Dividends and interest receivable....................................... 18,588
Prepaid expenses........................................................ 102,080
Due from The Dreyfus Corporation........................................ 18,378
-----------
13,922,234
LIABILITIES:
Payable for Common Stock redeemed....................................... $ 3,007
Accrued expenses and other liabilities.................................. 59,092 62,099
------- ------------
NET ASSETS ................................................................ $13,860,135
==========
REPRESENTED BY:
Paid-in capital......................................................... $13,732,357
Accumulated undistributed investment income-net-Note 1(d)............... 12,198
Accumulated undistributed net realized gain on investments.............. 10,522
Accumulated net unrealized appreciation on investments-Note 3........... 105,058
-------------
NET ASSETS at value......................................................... $13,860,135
==========
Shares of Common Stock outstanding:
Class A Shares
(150 million shares of $.001 par value authorized).................... 477,752
==========
Class B Shares
(150 million shares of $.001 par value authorized).................... 572,981
==========
NET ASSET VALUE per share:
Class A Shares
($6,323,825 / 477,752 shares)......................................... $13.24
==========
Class B Shares
($7,536,310 / 572,981 shares)......................................... $13.15
==========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER GROWTH FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)
INVESTMENT INCOME:
INCOME:
<S> <C> <C>
Cash dividends (net of $2,878 foreign taxes withheld at source)....... $ 67,569
Interest.............................................................. 40,141
----------
TOTAL INCOME.................................................... $107,710
EXPENSES:
Investment advisory fee-Note 2(a)..................................... 36,944
Shareholder servicing costs-Note 2(c)................................. 24,498
Distribution fees (Class B shares)-Note 2(b).......................... 19,404
Registration fees..................................................... 12,995
Prospectus and shareholders' reports.................................. 9,445
Organization expenses................................................. 9,444
Legal fees............................................................ 7,520
Directors' fees and expenses-Note 2(d)................................ 7,261
Custodian fees........................................................ 3,192
Auditing fees......................................................... 1,022
Miscellaneous......................................................... 731
----------
132,456
Less-investment advisory fee waived due to
undertaking-Note 2(a)............................................. 36,944
----------
TOTAL EXPENSES.................................................. 95,512
----------
INVESTMENT INCOME--NET.......................................... 12,198
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 10,463
Net unrealized (depreciation) on investments............................ (119,268)
----------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (108,805)
----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (96,607)
==========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1994
1993* (UNAUDITED)
-------------- -----------------
OPERATIONS:
<S> <C> <C>
Investment income (loss)-net......................................... $ (8,679) $ 12,198
Net realized gain on investments..................................... 59 10,463
Net unrealized appreciation (depreciation) on investments for the period 224,326 (119,268)
------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 215,706 (96,607)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares..................................................... 3,328,136 3,206,818
Class B shares..................................................... 2,451,603 5,884,233
Cost of shares redeemed:
Class A shares..................................................... (196,158) (202,118)
Class B shares..................................................... (7,760) (823,718)
------------- -------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS......... 5,575,821 8,065,215
------------- -------------
TOTAL INCREASE IN NET ASSETS................................. 5,791,527 7,968,608
NET ASSETS:
Beginning of period.................................................. 100,000 5,891,527
------------- -------------
End of period [including investment (loss)-net of ($8,679) in 1993
and undistributed investment income-net of $12,198 in 1994]........ $ 5,891,527 $13,860,135
============ ===========
</TABLE>
<TABLE>
<CAPTION>
SHARES
-----------------------------------------------------------
CLASS A CLASS B
--------------------- -------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1994 OCTOBER 31, APRIL 30, 1994
1993* (UNAUDITED) 1993* (UNAUDITED)
------------- ----------------- ------------ -------------------
CAPITAL SHARE TRANSACTIONS:
<S> <C> <C> <C> <C>
Shares sold................... 263,706 240,160 190,488 442,633
Shares redeemed............... (15,066) (15,048) (599) (63,541)
------------- ------------- ------------- -------------
NET INCREASE IN SHARES
OUTSTANDING........... 248,640 225,112 189,889 379,092
======== ======== ======== =======
- ------------------------
* From July 15, 1993 (commencement of operations) to October 31, 1993.
See independent accountants' review report and notes to financial statements.
</TABLE>
PREMIER GROWTH 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 information provided in the Fund's
financial statements.
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES
-------------------------------- -------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1994 OCTOBER 31, APRIL 30, 1994
PER SHARE DATA: 1993(1) (UNAUDITED) 1993(1) (UNAUDITED)
------------ ------------------ ------------ ------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.50 $13.21 $12.50 $13.17
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income (loss)--net......... (.01) .05 (.03) (.02)
Net realized and unrealized gain (loss)
on investments...................... .72 (.02) .70 -
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.... .71 .03 .67 (.02)
------- ------- ------- -------
Net asset value, end of period........ $13.21 $13.24 $13.17 $13.15
====== ====== ======= =======
TOTAL INVESTMENT RETURN (2)(3) 5.68% .23% 5.36% (.15%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(3)(4) .77% .77% 1.14% 1.13%
Ratio of net investment income (loss)
to average net assets (3)........... (.12%) .32% (.53%) (.06%)
Portfolio Turnover Rate (3)........... - .14% - .14%
Net Assets, end of period (000's Omitted) $3,338 $6,324 $2,554 $7,536
- -----------------------------
(1) From July 15, 1993 (commencement of operations) to October 31, 1993.
(2) Exclusive of sales load.
(3) Not annualized.
(4) Net of expenses reimbursed.
See independent accountants' review report and notes to financial statements.
</TABLE>
PREMIER GROWTH 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 diversified open-end management investment company. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. Fayez
Sarofim & Co. ("Sarofim") serves as the Fund's sub-investment adviser.
Dreyfus Service Corporation ("Distributor"), a wholly-owned subsidiary of
Dreyfus, acts as the distributor of the Fund's shares.
The Fund offers both Class A and Class B shares. Class A shares are
subject to a sales charge imposed at the time of purchase and Class B shares
are subject to a contingent deferred sales charge imposed at the time of
redemption on redemptions made within six years of purchase. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available. Short-term
investments are carried at amortized cost, which approximates value.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(C) 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.
(D) 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 provisions
available to certain investment companies, as defined in applicable sections
of the Internal Revenue Code, and to make distributions of taxable income
sufficient to relieve it from all, or substantially all, Federal income
taxes.
The Fund had a net operating loss from investment income-net of $8,679
for the fiscal year ending October 31, 1993. Net operating losses from
investment income-net are not deductible for federal income tax purposes and
can not be carried forward to any future tax year. This amount was
reclassified to paid-in capital for financial reporting purposes.
NOTE 2--INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to an Investment Advisory Agreement with Dreyfus, the
investment advisory fee is computed at the annual rate of .75 of 1% of the
average daily value of the Fund's net assets and is payable monthly. The
Investment Advisory Agreement further provides that if in any full fiscal
year the aggregate expenses of the Fund, excluding interest, taxes, brokerage
and extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund, the Fund may deduct from the fee to be paid to
Dreyfus, or Dreyfus will bear, such excess expense to the extent required by
state law. The most stringent state expense
PREMIER GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
limitation applicable to the Fund presently requires reimbursement of
expenses in any full fiscal year that such expenses (exclusive of
distribution expenses and certain 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.
However, Dreyfus has undertaken from November 1, 1993 through July 1,
1994, or until such time as the net assets of the Fund exceed $50 million,
regardless of whether they remain at that level, to waive receipt of the
investment advisory fee payable to it by the Fund. The investment advisory
fee waived pursuant to the undertaking amounted to $36,944 for the six months
ended April 30, 1994.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and
Sarofim, Dreyfus has agreed to pay Sarofim a monthly sub-advisory fee,
computed at the following annual rates:
<TABLE>
<CAPTION>
ANNUAL FEE AS A PERCENTAGE OF
TOTAL NET ASSETS AVERAGE DAILY NET ASSETS
------------------- -------------------------------------
<S> <C>
0 to $25 million.......................................... .11 of 1%
$25 up to $75 million..................................... .18 of 1%
$75 up to $200 million.................................... .22 of 1%
$200 up to $300 million................................... .26 of 1%
In excess of $300 million................................. .275 of 1%
</TABLE>
Sarofim is currently waiving its sub-investment advisory fee.
The Distributor retained $7,323 during the six months ended April 30,
1994 from commissions earned on sales of the Fund's Class A shares.
The Distributor retained $29,494 during the six months ended April 30,
1994 from contingent deferred sales charges imposed upon redemptions of the
Fund's Class B shares.
(B) Under the Distribution Plan ("Class B Distribution Plan") adopted
pursuant to Rule 12b-1 under the Act, the Fund pays the Distributor at an
annual rate of .75 of 1% of the value of the Fund's Class B shares average
daily net assets, for the costs and expenses in connection with advertising,
marketing and distributing the Fund's Class B shares. The Distributor may
make payments to one or more Service Agents (a securities dealer, financial
institution, or other industry professional) based on the value of the Fund's
Class B shares owned by clients of the Service Agent. During the six months
ended April 30, 1994, $19,404 was charged to the Fund pursuant to the Class B
Distribution 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 average daily net assets
of Class A and Class B shares for servicing shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. For the six months ended April 30,
1994, $5,847 and $6,468 were charged to the Class A and Class B shares,
respectively, pursuant to the Shareholder Services Plan.
(D) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of Dreyfus and/or the Distributor. Each director who
is not an "affiliated person" receives an annual fee of $1,500 and an
attendance fee of $250 per meeting.
PREMIER GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(E) On December 5, 1993, Dreyfus entered into an Agreement and Plan of
Merger (the "Merger Agreement") providing for the merger of Dreyfus with a
subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that Dreyfus will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number
of contingencies, including receipt of certain regulatory approvals and
approvals of the stockholders of Dreyfus and of Mellon. The merger is
expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, Dreyfus will seek various approvals from the Fund's board and
shareholders before completion of the merger. Shareholder approval will be
solicited by a proxy statement.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
other than short-term securities, during the six months ended April 30, 1994,
amounted to $5,412,059 and $10,226, respectively.
At April 30, 1994, accumulated net unrealized appreciation on investments
was $105,058, consisting of $352,445 gross unrealized appreciation and
$247,387 gross unrealized depreciation.
At April 30, 1994, 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).
PREMIER GROWTH FUND, INC.
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
PREMIER GROWTH FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Premier Growth Fund, Inc., including the statement of investments, as of
April 30, 1994, and the related statements of operations and changes in net
assets and financial highlights for the six month period ended April 30,
1994. 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 and financial
highlights for the period from July 15, 1993 (commencement of operations) to
October 31, 1993 and in our report dated December 9, 1993, we expressed an
unqualified opinion on such statement of changes in net assets and financial
highlights.
(Ernst & Young Signature Logo)
New York, New York
June 2, 1994
SEMI-ANNUAL REPORT
PREMIER
GROWTH FUND, INC.
APRIL 30, 1994
Dreyfus Lion Logo
PREMIER GROWTH FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
Fayez Sarofim & Co.
Two Houston Center,
Suite 2907
Houston, TX 77010
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 070/SA944
Premier Growth Fund, Inc.
Asset Allocation as of April 30, 1994
|----------------------------------------------------------
|Common Stocks 66.1 % |
|Cash Equivalents 33.9 % |
----------------------------------------------------------
Premier Growth Fund, Inc.
Diversification of Foreign Investments as of April 30, 1994
|----------------------------------------------------- |
|France 9.0 % |
|Switzerland 5.3 % |
|Netherlands 3.6 % |
|United Kingdom 2.7 % |
|Germany 2.0 % |
|South Africa 1.7 % |
|Canada 1.6 % |
|Hong Kong 1.3 % |
|Australia 1.2 % |
|----------------------------------------------------- |
(Foreign Securities equal 28.4% of Total Net Assets)
