LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this annual report on the activity of
the Premier Growth Fund, Inc., for the 12-month period from November 1, 1993
through October 31, 1994. During that period, the Fund's Class A shares
provided a total return of 6.21%, and the Class B shares provided a total
return of 5.47%.* During the same period, the Standard & Poor's 500 Composite
Stock Price Index provided a return of 3.86%.**
PORTFOLIO COMPOSITION
At the close of the period, the Fund had 14.6% of its net assets in
short-term Treasuries and industry concentrations in consumer nondurables,
technology and financial services. As market conditions permit, we will
continue to reduce the position in Treasuries and commit these assets to high
quality equities. Unsettled conditions persist in equity markets, so we are
making additional commitments at a conservative pace.
LONG-TERM OUTLOOK
The Fund's investment strategy continues to focus on a long-term
investment horizon. Our outlook over the next three-to-five-year period calls
for moderate, stable growth in the mature, industrialized economies, with
rapid growth among the newly industrialized and emerging economies in Latin
America, the Pacific Rim, China and India. We currently expect that quality,
multinational companies, with strong balance sheets, established franchises,
proprietary products and channels of distribution in foreign markets, are,
for the most part, well-positioned to achieve consistent earnings growth.
Generally, we believe they could add value to the portfolio.
Although the U.S. economy continues to exhibit solid momentum, we believe
higher interest rates will prove to be effective in moderating growth and the
inflationary pressures which have been trending higher at the producer and
wholesale levels. Equity markets have anticipated the economy's slowdown, and
investors are showing increasingly positive sentiment toward quality growth
stocks at the expense of cyclical issues which usually perform well during
the earlier stages of an economic cycle. In this more restrictive monetary
environment, equity markets have become less speculative and oriented more to
the long term. Excess liquidity, which propels more speculative markets, has
been considerably reduced due to policy initiatives of lower money growth and
higher interest rates. A shift in investor psychology has resulted, which, in
our opinion, favors companies with prospects of more consistent and above
average earnings growth over a longer-term investment horizon. This shift in
investor psychology has benefitted portfolio performance over the past year.
INVESTMENT HIGHLIGHTS
During the 12-month fiscal year ended October 31, 1994, equity holdings
were increased in the portfolio and new positions were established in Dow
Chemical, Eastman Kodak, Kellogg, Total Petroleum Cl.B A.D.S. and Texas
Instruments. Each of these companies holds a prominent position in its
respective industry and should benefit from increased demand for its
proprietary technology and/or products in the global marketplace.
The portfolio's focus on consumer nondurables had the most positive
impact on performance during the reporting period, led by Philip Morris Cos.,
Coca-Cola, LVMH Moet Hennessy Louis Vuitton A.D.R. and Gillette. The health
care, energy and financial services sectors also exhibited strength, led by
Johnson & Johnson, Royal Dutch Petroleum and Citicorp, respectively.
We appreciate your investment in Premier Growth Fund and we will continue
to seek rewarding returns on your behalf.
Sincerely,
(Fayez Sarofim Signature Logo)
Fayez Sarofim
Portfolio Manager
November 18, 1994
New York, N.Y.
* Total return represents the change during the period in a
hypothetical account with dividends reinvested, without taking into
account the maximum initial sales charge in the case of Class A shares,
or the applicable contingent deferred sales charge imposed on redemptions
in the case of Class B shares.
** SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the
reinvestment of income dividends and, where applicable, capital gain
distributions. The Standard & Poor's 500 Composite Stock Price Index is a
widely accepted unmanaged index of stock market performance.
PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER GROWTH FUND, INC.
CLASS A SHARES AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A]
* Source: Lipper Analytical Services, Inc.
<TABLE>
AVERAGE ANNUAL TOTAL RETURNS
CLASS A CLASS B
- ------------------------------------------------------------ -----------------------------------------------------------
% RETURN REFLECTING
% RETURN APPLICABLE CONTINGENT
REFLECTING % RETURN DEFERRED SALES
% RETURN WITHOUT MAXIMUM INITIAL ASSUMING NO CHARGE UPON
PERIOD ENDED 10/31/94 SALES CHARGE SALES CHARGE (4.5%) PERIOD ENDED 10/31/94 REDEMPTION REDEMPTION*
- ------------------------ ----------------- ------------------- --------------------- ------------- -----------------
<S> <C> <C> <C> <C> <C>
1 Year 6.21% 1.45% 1 Year 5.47% 1.47%
From Inception (7/15/93) 9.30 5.48 From Inception (7/15/93) 8.46 5.44
</TABLE>
Past performance is not predictive of future performance. Share price and
investment return fluctuate and share price may be more or less than original
cost upon redemption.
The above graph compares a $10,000 investment made in Class A shares of the
Premier Growth Fund on 7/15/93 (Inception Date) to a $10,000 investment made
in the Standard & Poor's 500 Composite Stock Price Index on that date. For
comparative purposes, the value of the Index on 6/30/93 is used as the
beginning value on 7/15/93. All dividends and capital gain distributions are
reinvested. Performance for Class B shares will differ from the results shown
above due to differences in expenses charged to that class.
The Fund's performance takes into account the maximum sales charge on Class A
shares and all other applicable fees and expenses. Unlike the Fund, the
Standard & Poor's Composite Stock Price Index is a widely accepted, unmanaged
index of overall stock market performance, which 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 Condensed Financial Information section of the Prospectus and elsewhere
in this report.
* Maximum contingent deferred sales charge for Class B shares is 4% and is
reduced to 0% after six years.
<TABLE>
PREMIER GROWTH FUND, INC. OCTOBER 31, 1994
ASSET ALLOCATION DIVERSIFICATION OF FOREIGN INVESTMENTS
[Exhibit B] [Exhibit C]
(Foreign Securities equal 34.1% of Total Net Assets)
<S> <C> <C>
FIVE LARGEST SECTORS
Food, Beverage & Tobacco........................................ 18.6%
Energy.......................................................... 8.6
Health Care..................................................... 8.3
Banking......................................................... 6.5
Aerospace & Electronics......................................... 6.3
TEN LARGEST HOLDINGS
Philip Morris Cos............................................... 4.0%
Coca-Cola....................................................... 4.0
General Electric................................................ 3.1
Merck........................................................... 2.8
Dow Chemical.................................................... 2.7
LVMH Moet Hennessy Louis Vuitton A.D.R.......................... 2.6
Citicorp........................................................ 2.5
Royal Dutch Petroleum........................................... 2.5
AT&T............................................................ 2.3
Deutsche Bank A.D.R............................................. 2.3
All percentages shown above are based on Total Net Assets.
</TABLE>
<TABLE>
PREMIER GROWTH FUND, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1994
COMMON STOCKS--84.5% SHARES VALUE
-------------- -------------
<S> <C> <C> <C>
AEROSPACE & ELECTRONICS--6.3% Emerson Electric 3,000 $ 182,250
General Electric................. 12,000 586,500
Motorola......................... 4,000 235,500
Texas Instruments................ 2,500 187,188
-------------
1,191,438
-------------
AUTO RELATED--1.6% Ford Motor 10,000 295,000
-------------
BANKING--6.5% Citicorp 10,000 477,500
Deutsche Bank A.D.R. ............ 900 438,300
Union Bank of Switzerland........ 1,510 320,867
-------------
1,236,667
-------------
CHEMICALS--4.9% Dow Chemical 7,000 514,500
duPont (EI) de Nemours........... 7,000 417,375
-------------
931,875
-------------
ENERGY--8.6% Chevron 6,000 270,000
Elf Aquitaine A.D.S. ............ 5,000 183,125
Exxon............................ 4,500 282,938
Mobil............................ 3,500 301,000
Royal Dutch Petroleum............ 4,000 466,000
TOTAL, Cl. B, A.D.S. ............ 4,000 132,000
-------------
1,635,063
-------------
FINANCIAL--3.7% Eurafrance 1,000 346,019
HSBC Holdings PLC, A.D.R. ....... 3,000 348,000
-------------
694,019
-------------
FOOD, BEVERAGE & TOBACCO--18.6% Coca-Cola 15,000 753,750
Guinness PLC, A.D.R. ............ 10,000 371,250
Kellogg.......................... 3,000 176,250
LVMH Moet Hennessy Louis Vuitton A.D.R. 15,050 485,362
Nestle A.D.R. ................... 4,000 187,000
PepsiCo. ........................ 8,000 280,000
Philip Morris Cos. .............. 12,500 765,625
Sara Lee......................... 5,000 123,125
Seagram.......................... 12,000 370,500
-------------
3,512,862
-------------
HEALTH CARE--8.3% Johnson & Johnson 6,000 327,750
Merck............................ 15,000 536,250
Pfizer........................... 5,000 370,625
Roche Holdings A.D.S. ........... 7,500 332,344
-------------
1,566,969
-------------
INSURANCE--2.4% AXA 8,000 370,796
Zuerich Versicherung............. 100 91,126
-------------
461,922
-------------
MEDIA/ENTERTAINMENT--5.1% News A.D.S 6,000 293,250
Pearson PLC...................... 40,000 413,581
Reader's Digest Association, Cl. A 6,000 263,250
-------------
970,081
-------------
PREMIER GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- -------------
METALS--1.3% Debeers Consolidated Mining A.D.R. 10,000 $ 238,750
-------------
MULTI INDUSTRY--3.7% Eaux (Generale Des) 4,000 366,214
Minnesota Mining & Manufacturing. 6,000 332,250
-------------
698,464
-------------
OFFICE & BUSINESS EQUIPMENT--3.6% AT&T 8,000 440,000
Ericsson (LM) Telephone, Cl. B, A.D.R. 2,500 152,344
MCI Communications............... 4,000 92,000
-------------
684,344
-------------
PERSONAL CARE--5.9% Gillette 4,500 334,688
L'Oreal A.D.R. .................. 9,000 391,500
Procter & Gamble................. 3,500 218,750
Unilever N.V. ................... 1,500 178,125
-------------
1,123,063
-------------
PHOTOGRAPHY--1.5% Eastman Kodak 6,000 288,750
-------------
RETAIL--2.5% Toys R Us 5,000 (a) 192,500
Wal-Mart Stores.................. 12,000 282,000
-------------
474,500
-------------
TOTAL COMMON STOCKS
(cost $15,066,320)............. $16,003,767
=============
PRINCIPAL
CORPORATE BOND--.0% AMOUNT
-------------
Zuerich International,
2%, 3/1/2001
(cost $3,384).................. $ 5,000 $ 3,342
=============
SHORT-TERM INVESTMENTS--14.6%
U.S. TREASURY BILLS: 4.81%, 11/10/1994 $ 1,555,000 $ 1,553,074
4.595%, 11/25/1994............. 1,207,000 1,203,404
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $2,756,478).............. $ 2,756,478
=============
TOTAL INVESTMENTS (cost $17,826,182) ................................ 99.1% $18,763,587
====== =============
CASH AND RECEIVABLES (NET).................................................. .9% $ 179,021
====== =============
NET ASSETS.................................................................. 100.0% $18,942,608
====== =============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
</TABLE>
<TABLE>
PREMIER GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $17,826,182)_see statement...................................... $18,763,587
Cash.................................................................... 135,279
Receivable for subscriptions to Common Stock............................ 110,152
Dividends and interest receivable....................................... 28,402
Prepaid expenses........................................................ 88,041
Due from The Dreyfus Corporation........................................ 25,382
-------------
19,150,843
LIABILITIES:
Payable for investment securities purchased............................. $132,066
Due to the Distributor.................................................. 10,732
Payable for Common Stock redeemed....................................... 5,820
Accrued expenses and other liabilities.................................. 59,617 208,235
---------- -------------
NET ASSETS ................................................................ $18,942,608
=============
REPRESENTED BY:
Paid-in capital......................................................... $17,864,411
Accumulated undistributed investment income_net_Note 1(c)............... 140,756
Accumulated undistributed net realized gain on investments.............. 36
Accumulated net unrealized appreciation on investments_Note 3........... 937,405
-------------
NET ASSETS at value......................................................... $18,942,608
=============
Shares of Common Stock outstanding:
Class A Shares
(150 million shares of $.001 par value authorized).................... 575,647
=============
Class B Shares
(150 million shares of $.001 par value authorized).................... 782,479
=============
NET ASSET VALUE per share:
Class A Shares
($8,075,402 / 575,647 shares)......................................... $14.03
=======
Class B Shares
($10,867,206 / 782,479 shares)........................................ $13.89
=======
See notes to financial statements.
</TABLE>
<TABLE>
PREMIER GROWTH FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $17,080 foreign taxes withheld at source)...... $242,276
Interest.............................................................. 129,340
----------
TOTAL INCOME.................................................... $371,616
EXPENSES:
Investment advisory fee--Note 2(a).................................... 99,498
Shareholder servicing costs_Note 2(c)................................. 63,185
Distribution fees (Class B shares)_Note 2(b).......................... 54,614
Registration fees..................................................... 34,353
Organization expenses................................................. 18,717
Auditing fees......................................................... 15,374
Directors' fees and expenses_Note 2(d)................................ 13,614
Legal fees............................................................ 11,818
Prospectus and shareholders' reports.................................. 11,648
Custodian fees........................................................ 6,029
Miscellaneous......................................................... 1,508
----------
330,358
Less_investment advisory fee waived due to
undertaking_Note 2(a)............................................. 99,498
----------
TOTAL EXPENSES.................................................. 230,860
----------
INVESTMENT INCOME--NET.......................................... 140,756
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 3................................ $ 36
Net unrealized appreciation on investments.............................. 713,079
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 713,115
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $853,871
==========
See notes to financial statements.
</TABLE>
<TABLE>
PREMIER GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
-------------------------------
1993* 1994
------------- -------------
<S> <C> <C>
OPERATIONS:
Investment income (loss)--net........................................... $ (8,679) $ 140,756
Net realized gain on investments........................................ 59 36
Net unrealized appreciation on investments for the year................. 224,326 713,079
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 215,706 853,871
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 3,328,136 6,206,463
Class B shares........................................................ 2,451,603 9,723,924
Cost of shares redeemed:
Class A shares........................................................ (196,158) (1,868,176)
Class B shares........................................................ (7,760) (1,865,001)
------------- -------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............ 5,575,821 12,197,210
------------- -------------
TOTAL INCREASE IN NET ASSETS.................................... 5,791,527 13,051,081
NET ASSETS:
Beginning of year....................................................... 100,000 5,891,527
------------- -------------
End of year [including investment (loss)_net of ($8,679) in 1993 and
undistributed
investment income_net of $140,756 in 1994]............................ $ 5,891,527 $18,942,608
============= =============
SHARES
--------------------------------------------------------------
CLASS A CLASS B
------------------------------- -----------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
------------------------------- -----------------------------
1993 1994 1993* 1994
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................ 263,706 463,318 190,488 729,175
Shares redeemed........................ (15,066) (140,311) (599) (140,585)
------------- ------------- ------------- -------------
NET INCREASE IN SHARES OUTSTANDING 248,640 323,007 189,889 588,590
============= ========== ============ =============
* From July 15, 1993 (commencement of operations) to October 31, 1993.
See notes to financial statements.
</TABLE>
<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 year indicated. This information
has been derived from the Fund's financial statements.
CLASS A SHARES CLASS B SHARES
--------------------------- --------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
--------------------------- --------------------------
PER SHARE DATA: 1993(1) 1994 1993(1) 1994
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of year................... $12.50 $13.21 $12.50 $13.17
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income (loss)--net........................ (.01) .16 (.03) .09
Net realized and unrealized gain on investments...... .72 .66 .70 .63
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS................... .71 .82 .67 .72
------- ------- ------- -------
Net asset value, end of year......................... $13.21 $14.03 $13.17 $13.89
====== ======= ======= =======
TOTAL INVESTMENT RETURN (2).............................. 5.68%(3) 6.21% 5.36%(3) 5.47%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .77%(3) 1.33% 1.14%(3) 2.07%
Ratio of net investment income (loss) to average net assets (.12%)(3) 1.49% (.53%)(3) .71%
Decrease reflected in above expense ratios due to under-
taking by the Manager.............................. .88%(3) .75% 1.01%(3) .75%
Portfolio Turnover Rate.............................. -_ .71% -_ .71%
Net Assets, end of year (000's Omitted).............. $3,338 $8,075 $2,554 $10,867
- ------------------------
(1) From July 15, 1993 (commencement of operations) to October 31, 1993.
(2) Exclusive of sales load.
(3) Not annualized.
</TABLE>
See notes to financial statements.
PREMIER GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
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, a wholly-owned subsidiary of Dreyfus, until
August 24, 1994, acted as the distributor of the Fund's shares. Effective
August 24, 1994, Dreyfus became a direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
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.
During the year ended October 31, 1994, the Fund reclassed $8,679 from
accumulated undistributed investment income to paid-in capital and reclassed
$59 from paid-in capital to accumulated undistributed net realized capital
gains. These reclass adjustments resulted primarily from a net-operating loss
in a prior fiscal year, which is not deductable for Federal income tax
purposes and cannot be carried forward to any future tax year.
(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 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.
PREMIER GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 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 11/2% 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 December
31, 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 $99,498 for the
year ended October 31, 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>
ANNUAL FEE AS A PERCENTAGE OF
TOTAL NET ASSETS AVERAGE DAILY NET ASSETS
------------------ -----------------------------
<S> <C> <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.
Dreyfus Service Corporation retained $10,171 during the year ended
October 31, 1994 from commissions earned on sales of the Fund's Class A
shares.
Prior to August 24, 1994, Dreyfus Service Corporation retained $34,556
from contingent deferred sales charges imposed upon redemptions of the Fund's
Class B shares.
(B) On August 3, 1994, the Fund's Shareholders approved a revised
Distribution Plan with respect to Class B shares only (the "Class B
Distribution Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the
Class B Distribution Plan, effective August 24, 1994, the Fund pays the
Distributor for distributing the Fund's Class B shares at an annual rate of
.75 of 1% of the value of the average daily net assets of Class B shares.
Prior to August 24, 1994, the Distribution Plan ("prior Class B
Distribution Plan") provided that the Fund pay Dreyfus Service Corporation 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. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Fund's Class B shares owned by clients of the Service Agent.
PREMIER GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
During the year ended October 31, 1994, $14,924 was charged to the Fund
pursuant to the Class B Distribution Plan and $39,690 was charged to the Fund
pursuant to the prior 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. From May 1, 1994 through August 23,
1994, $11,338 and $13,230 were charged to Class A and Class B shares,
respectively, by Dreyfus Service Corporation. From August 24, 1994 through
October 31, 1994, $3,623 and $4,975 were charged to Class A and Class B
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan.
(D) Prior to August 24, 1994, certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of Dreyfus and/or Dreyfus
Service Corporation. Each director who is not an "affiliated person" receives
an annual fee of $1,500 and an attendance fee of $250 per meeting.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
other than short-term securities, during the year ended October 31, 1994,
amounted to $11,492,819 and $69,563, respectively.
At October 31, 1994, accumulated net unrealized appreciation on
investments was $937,405, consisting of $1,175,048 gross unrealized
appreciation and $237,643 gross unrealized depreciation.
At October 31, 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.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
PREMIER GROWTH FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Premier Growth Fund, Inc., including the statement of investments, as of
October 31, 1994, 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. Our procedures included confirmation of
securities owned as of October 31, 1994 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 Premier Growth Fund, Inc. at October 31, 1994, 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
December 9, 1994
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
CUSTODIAN
The Bank of New York
90 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. 070/628AR9410
Annual Report
Premier
Growth Fund, Inc.
October 31, 1994
(Dreyfus Lion Logo)
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
PREMIER GROWTH FUND, INC. CLASS A SHARES AND THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
_________________________________________________________________________
| | | |
| | PREMIER | STANDARD & POOR'S |
| PERIOD | GROWTH FUND, | 500 COMPOSITE |
| | (CLASS A SHARES) | STOCK PRICE INDEX* |
|--------------------- | -------------------- | -----------------------|
| 7/15/93 | 9,549 | 10,000 |
| 7/31/93 | 9,534 | 9,960 |
| 10/31/93 | 10,092 | 10,470 |
| 1/31/94 | 10,626 | 10,852 |
| 4/30/94 | 10,115 | 10,228 |
| 7/31/94 | 10,336 | 10,474 |
| 10/31/94 | 10,718 | 10,873 |
|----------------------------------------------------------------------- |
*Source: Lipper Analytical Services, Inc.
Premier Growth Fund, Inc. October 31, 1994
Asset Allocation
| ------------------------------------------------------------------|
| Common Stocks 84.5 %|
| Cash Equivalents 15.5 %|
| ------------------------------------------------------------------|
Premier Growth Fund, Inc. October 31, 1994
Diversification of Foreign Investments
| ------------------------------------------------------------------|
| France 12.0 %|
| Switzerland 4.9 %|
| United Kingdom 4.1 %|
| Netherlands 3.4 %|
| Germany 2.3 %|
| Canada 2.0 %|
| Hong Kong 1.8 %|
| Australia 1.5 %|
| South Africa 1.3 %|
| Sweden 0.8 %|
| ------------------------------------------------------------------|
(Foreign Securities equal 34.1% of Total Net Assets)
