Letter to Shareholders
- -------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to provide you with this semi-annual report on the activity of
the Premier Growth Fund, Inc. for the six-month period ended April 30, 1995.
During that period, the Fund's Class A shares provided a total return of 6.83%,
and the Class B shares provided a total return of 6.47%.* During the same
period, the Standard & Poor's 500 Composite Stock Price Index provided a return
of 10.46% and the Morgan Stanley Capital International EAFE Index provided a
total return of 1.39%.**
Portfolio Composition
At the close of the period, the Fund had 19.7% of its net assets in
short-term Treasuries and had industry concentrations in consumer nondurables,
financial services, technology and health care. We currently plan to reduce
the position in Treasuries, as market conditions permit, and commit these
assets to what we believe are high quality equities.
Long-Term Outlook
Currently, your Fund continues to be guided by a long-term investment
strategy, which looks out over the next three to five years to determine broad
economic and industry characteristics in the United States and abroad. The
Fund's current holdings include equities of what we believe are quality
multinational corporations -- emphasizing companies based in the U.S. In the
increasingly competitive global marketplace, we believe that companies with
leading technologies and products and well-known brands and franchises should
have higher sales and earnings.
Economic growth in the U.S. has moderated during the past six months as a
result of the Federal Reserve Board's policy of raising interest rates. This
downshift in the economy's growth, with inflation well contained relative to
previous cyclical peaks, should support an extended economic cycle over which
the economy can achieve stable growth. We expect capital spending to support
the economy's expansion, but at a slower rate than in the previous two years.
We anticipate export growth should increase and imports should decline as
consumer demand moderates in the U.S. and domestic corporations gain market
share abroad. We believe that corporate profits should remain strong,
particularly for those companies which are already ranked in international
markets and are continuing to benefit from restructuring, secular improvement
in product quality and extremely competitive positioning in the global
marketplace.
Investment Highlights
During the six-month period, a wide variety of equity holdings were
increased in the Fund and new positions were established in AlliedSignal and
International Paper. The holding in Toys R Us was eliminated because our
outlook for the retail sector is somewhat uncertain in a slowing economy, and
the toy market in particular has become extremely competitive.
The Fund's emphasis on consumer nondurables was very beneficial to
performance during the reporting period, with particularly positive results in
the shares of Coca-Cola, Sara Lee, L'Oreal A.D.R., LVMH Moet Hennessy Louis
Vuitton A.D.R. and PepsiCo. The health care holdings provided the second
<PAGE>
most positive impact with solid returns in all four holdings -- Roche Holdings
A.D.S., Merck, Johnson & Johnson and Pfizer. The results in the technology and
energy sectors were also strong, led by shares of General Electric, Texas
Instruments, Exxon and Royal Dutch Petroleum, respectively. Approximately one
fifth of the Fund's capital is currently invested in cash and cash equivalents
and this liquidity restrained the performance of the Fund in the rising equity
markets experienced in the last six months.
We appreciate your investment in Premier Growth Fund and we will continue to
seek rewarding returns on your behalf.
Sincerely,
Fayez Sarofim
Portfolio Manager
May 17, 1995
Houston, TX
*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 domestic stock market performance. The Morgan Stanley
Capital International Europe Australasia Far East (EAFE) Index is a widely
accepted unmanaged index of foreign stock market performance.
<PAGE>
Premier Growth Fund, Inc.
- --------------------------------------------------------------------------
Statement of Investments April 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks--79.8% Shares Value
- --------------------------------------------------------------------------------------- ---------- ------------
<S> <C> <C> <C>
Aerospace & Electronics--5.9% Emerson Electric .......................... 4,000 $ 269,000
General Electric .......................... 15,000 840,000
Motorola .................................. 8,000 455,000
Texas Instruments ......................... 2,500 265,000
-----------
1,829,000
-----------
Auto Related--.9% Ford Motor ................................ 10,500 283,500
-----------
Banking--6.2% Citicorp .................................. 17,000 788,375
Deutsche Bank A.D.R ...................... 1,200 587,400
Union Bank of Switzerland ................. 2,510 540,210
-----------
1,915,985
-----------
Capital Goods--1.0% AlliedSignal .............................. 8,000 317,000
-----------
Chemicals--4.0% Dow Chemical .............................. 9,000 625,500
duPont(E.I.) de Nemours ................... 9,000 592,875
-----------
1,218,375
-----------
Energy--8.0% Chevron ................................... 8,000 379,000
Elf Aquitaine A.D.S ....................... 5,000 198,750
Exxon ..................................... 8,000 557,000
Mobil ..................................... 3,500 332,063
Royal Dutch Petroleum ..................... 5,000 620,000
Total, Cl. B, A.D.S ....................... 12,000 376,500
-----------
2,463,313
-----------
Financial--3.8% Eurafrance ................................ 1,860 583,492
HSBC Holdings PLC, A.D.R .................. 5,000 580,000
-----------
1,163,492
-----------
Food, Beverage & Tobacco--18.4% Coca-Cola ................................. 20,000 1,162,500
Guinness PLC, A.D.R ....................... 15,000 566,250
Kellogg ................................... 3,000 190,500
LVMH Moet Hennessy Louis Vuitton A.D.S .... 18,050 685,900
Nestle A.D.R .............................. 12,000 592,500
PepsiCo ................................... 15,000 624,375
Philip Morris Cos ......................... 17,000 1,151,750
Sara Lee .................................. 5,000 139,375
Seagram .................................. 20,000 542,500
-----------
5,655,650
-----------
Health Care--10.5% Johnson & Johnson ......................... 11,000 715,000
Merck ..................................... 22,000 943,250
Pfizer .................................... 10,000 866,250
Roche Holdings A.D.S ...................... 12,000 721,500
-----------
3,246,000
-----------
Insurance--1.7% AXA ....................................... 8,000 421,035
Zuerich Versicherung ...................... 100 106,387
-----------
527,422
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Premier Growth Fund, Inc.
- --------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1995 (Unaudited)
Common Stocks (continued) Shares Value
- --------------------------------------------------------------------------------------- ---------- ------------
<S> <C> <C> <C>
Media/Entertainment--2.9% News A.D.S ................................ 12,000 $ 234,000
Pearson PLC ............................... 45,288 417,925
Reader's Digest Association, Cl. A ........ 6,000 236,250
-----------
888,175
-----------
Metals--.9% Debeers Consolidated Mining A.D.R ......... 10,000 276,250
-----------
Multi Industry--3.2% Eaux (Generale Des) ....................... 4,000 420,711
Minnesota Mining & Manufacturing .......... 9,500 566,438
-----------
987,149
-----------
Office & Business Equipment--2.1% AT&T ...................................... 8,000 406,000
Ericsson (LM) Telephone, Cl. B, A.D.R ..... 2,500 167,656
MCI Communications ........................ 4,000 87,000
-----------
660,656
-----------
Paper & Forest Products--1.0% International Paper ....................... 4,000 308,000
-----------
Personal Care--7.0% Gillette .................................. 7,500 615,000
L'Oreal A.D.R ............................. 12,000 630,000
Procter & Gamble .......................... 10,000 698,750
Unilever N.V .............................. 1,500 200,438
-----------
2,144,188
-----------
Photography--1.1% Eastman Kodak ............................. 6,000 345,000
-----------
Retail--1.2% Wal-Mart Stores ........................... 15,000 356,250
-----------
TOTAL COMMON STOCKS
(cost $21,950,293) ...................... $24,585,405
===========
Preferred Stock--.4%
- ---------------------------------------------------------------------------------------
Media/Entertainment; News A.D.S., Cum. $.4428
(cost $92,438) .......................... 6,000 $ 108,000
===========
Corporate Bond--.0% Principal
- --------------------------------------------------------------------------------------- Amount
---------
Zuerich International,
2%, 3/1/2001
(cost $3,384) ........................... $ 5,000 $ 3,893
===========
Short-Term Investments--19.7%
- ---------------------------------------------------------------------------------------
U.S. Treasury Bills: 5.68%, 5/11/1995 ........................ $ 477,000 $ 476,122
5.01%, 6/1/1995 ......................... 558,000 555,104
6.37%, 7/6/1995 ......................... 5,090,000 5,035,792
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $6,069,773) ....................... $ 6,067,018
===========
TOTAL INVESTMENTS (cost $28,115,888) .................................................. 99.9% $30,764,316
====== ===========
CASH AND RECEIVABLES (NET) ............................................................ .1% $ 38,512
====== ===========
NET ASSETS ............................................................................ 100.0% $30,802,828
====== ===========
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
Premier Growth Fund, Inc.
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1995 (Unaudited)
ASSETS:
Investments in securities, at value
(cost $28,115,888)--see statement .............. $30,764,316
Cash ............................................. 304,738
Receivable for subscriptions to Common Stock ..... 394,684
Dividends and interest receivable ................ 67,984
Prepaid expenses ................................. 66,542
-----------
31,598,264
LIABILITIES:
Payable for investment securities purchased ...... $721,665
Due to the Distributor ........................... 16,930
Due to The Dreyfus Corporation ................... 6,035
Payable for Common Stock redeemed ................ 5,039
Accrued expenses ................................. 45,767 795,436
-------- -----------
NET ASSETS ......................................... $30,802,828
===========
REPRESENTED BY:
Paid-in capital .................................. $28,147,988
Accumulated undistributed investment income--net.. 61,655
Accumulated net realized (loss) on investments and
foreign currency transactions .................. (55,793)
Accumulated net unrealized appreciation on
investments and foreign currency transactions... 2,648,978
-----------
NET ASSETS at value ................................ $30,802,828
===========
Shares of Common Stock outstanding:
Class A Shares
(150 million shares of $.001 par value authorized) 823,364
===========
Class B Shares
(150 million shares of $.001 par value authorized) 1,273,005
===========
NET ASSET VALUE per share:
Class A Shares
($12,155,825 / 823,364 shares) ................... $14.76
======
Class B Shares
($18,647,003 / 1,273,005 shares) ................. $14.65
======
See independent accountants' review report and notes to financial statements.
<PAGE>
Premier Growth Fund, Inc.
- ------------------------------------------------------------------------------
Statement of Operations six months ended April 30, 1995 (Unaudited)
INVESTMENT INCOME:
Income:
Cash dividends (net of $7,484 foreign taxes
withheld at source) .......................... $ 214,611
Interest ....................................... 125,433
----------
Total Income ................................. $ 340,044
Expenses:
Investment advisory fee--Note 2(a) ............. 86,073
Distribution fees (Class B shares)--Note 2(b)... 51,020
Shareholder servicing costs--Note 2(c) ......... 49,613
Registration fees .............................. 24,508
Auditing fees .................................. 18,963
Directors' fees and expenses--Note 2(d) ........ 9,282
Legal Fees ..................................... 8,801
Prospectus and shareholders' reports ........... 4,969
Custodian fees ................................. 4,079
Miscellaneous .................................. 8,232
----------
265,540
Less--reduction in advisory fee due to
undertakings--Note 2(a) ...................... 80,038
----------
Total Expenses ............................. 185,502
----------
INVESTMENT INCOME--NET ..................... 154,542
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments--Note 3 ....... $ (55,812)
Net realized (loss) on foreign currency
transactions ................................... (17)
----------
Net Realized Loss ............................ (55,829)
Net unrealized appreciation on investments ....... 1,711,023
Net unrealized appreciation on translation of
assets and liabilities in foreign currencies ... 550
----------
Total Unrealized Appreciation ................ 1,711,573
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 1,655,744
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,810,286
==========
See independent accountants' review report and notes to financial statements.
<PAGE>
Premier Growth Fund, Inc.
- ------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Six Months Ended
October 31, April 30, 1995
1994 (Unaudited)
----------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net .................................................................... $ 140,756 $ 154,542
Net realized gain (loss) on investments ................................................... 36 (55,829)
Net unrealized appreciation on investments for the period ................................. 713,079 1,711,573
----------- -----------
Net Increase In Net Assets Resulting From Operations .................................... 853,871 1,810,286
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net:
Class A shares .......................................................................... -- (126,276)
Class B shares .......................................................................... -- (107,367)
----------- -----------
Total Dividends ....................................................................... -- (233,643)
----------- -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares .......................................................................... 6,206,463 4,303,238
Class B shares .......................................................................... 9,723,924 8,024,426
Dividends reinvested:
Class A shares .......................................................................... -- 117,816
Class B shares .......................................................................... -- 92,548
Cost of shares redeemed:
Class A shares .......................................................................... (1,868,176) (946,415)
Class B shares .......................................................................... (1,865,001) (1,308,036)
----------- -----------
Increase In Net Assets From Capital Stock Transactions ................................ 12,197,210 10,283,577
----------- -----------
Total Increase In Net Assets ........................................................ 13,051,081 11,860,220
NET ASSETS:
Beginning of period ....................................................................... 5,891,527 18,942,608
----------- -----------
End of period [including undistributed investment income--net of $140,756 in 1994
and $61,665 in 1995] .................................................................... $18,942,608 $30,802,828
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
Shares
---------------------------------------------------------------------
Class A Class B
----------------------------------- --------------------------------
Year Ended Six Months Ended Year Ended Six Months Ended
October 31, April 30, 1995 October 31, April 30, 1995
1994 (Unaudited) 1994 (Unaudited)
---------- --------------- ---------- --------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold .......................................... 463,318 307,139 729,175 579,176
Shares issued for dividends reinvested ............... -- 8,898 -- 7,027
Shares redeemed ...................................... (140,311) (68,320) (140,585) (95,677)
----------- ----------- ----------- -----------
Net Increase In Shares Outstanding ................ 323,007 247,717 588,590 490,526
=========== =========== =========== ===========
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
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 the Fund's financial statements.
<TABLE>
<CAPTION>
Class A Shares Class B Shares
--------------------------------------------------------------------------------------
Year Ended October 31, Six Months Ended Year Ended October 31, Six Months Ended
---------------------- April 30, 1995 ---------------------- April 30, 1995
1993(1) 1994 (Unaudited) 1993(1) 1994 (Unaudited)
------ ------ -------------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period $12.50 $13.21 $14.03 $12.50 $13.17 $13.89
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income (loss)--net ...... (.01) .16 .11 (.03) .09 .08
Net realized and unrealized gain
on investments ................... .72 .66 .83 .70 .63 .81
------ ------ ------ ------ ------ ------
Total from Investment Operations .71 .82 .94 .67 .72 .89
------ ------ ------ ------ ------ ------
Distributions;
Dividends from investment income--net -- -- (.21) -- -- (.13)
------ ------ ------ ------ ------ ------
Net asset value, end of period ..... $13.21 $14.03 $14.76 $13.17 $13.89 $14.65
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN (2) .......... 5.68%(3) 6.21% 6.83%(3) 5.36%(3) 5.47% 6.47%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .77%(3) 1.33% .58%(3) 1.14%(3) 2.07% .95%(3)
Ratio of net investment income (loss)
to average net assets ............ (.12%)(3) 1.49% .86%(3) (.53%)(3) .71% .54%(3)
Decrease reflected in above expense
ratios due to undertakings by the
Manager and Sub-Investment Adviser .88%(3) .75% .35%(3) 1.01%(3) .75% .35%(3)
Portfolio Turnover Rate ............ -- .71% .67%(3) -- .71% .67%(3)
Net Assets, end of period
(000's Omitted) .................. $3,338 $8,075 $12,156 $2,554 $10,867 $18,647
<FN>
- --------------
(1) From July 15, 1993 (commencement of operations) to October 31, 1993.
(2) Exclusive of sales load.
(3) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
<PAGE>
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. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares. The Distributor, located at One Exchange Place, Boston, Massachusetts
02109, is a wholly-owned subsidiary of FDI Distribution Services, Inc., a
provider of mutual fund administrative services, which in turn is a
wholly-owned subsidiary of FDI Holdings, Inc., the parent company of which is
Boston Institutional Group, Inc. Dreyfus is a direct subsidiary of Mellon
Bank, N.A.
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. Investments
denominated in foreign currencies are translated to U.S. dollars at the
prevailing rates of exchange.
(b) Foreign currency transactions: The Fund does not isolate that portion of
the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, the
difference between the amounts of dividends, interest and foreign withholding
taxes recorded on the Fund's books, and the U.S. dollar equivalent of the
amounts actually received or paid. Net unrealized foreign exchange gains and
losses arise from changes in the value of assets and liabilities other than
investments in securities at fiscal year end, resulting from changes in
exchange rates.
(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.
<PAGE>
Premier Growth Fund, Inc.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (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--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 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 had undertaken from November 1, 1994 through March 31, 1995,
to waive receipt of the investment advisory fee payable to it by the Fund, and
thereafter has undertaken from April 1, 1995 through June 30, 1995, 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 in excess of .25 of 1% of the Fund's average
daily net assets. The investment advisory fee waived pursuant to the
undertaking amounted to $80,038 for the six months ended April 30, 1995.
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:
Annual Fee as a Percentage of
Total Net Assets Average Daily Net Assets
---------------- ----------------------------
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%
Sarofim is currently waiving its sub-investment advisory fee.
Dreyfus Service Corporation, a wholly owned subsidiary of Dreyfus, retained
$941 during the six months ended April 30, 1995 from commissions earned on
sales of the Fund's Class A shares.
<PAGE>
Premier Growth Fund, Inc.
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(b) Under a Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, 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. During the six months ended April 30, 1995, $51,020
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 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, 1995, $11,684 and $17,007 were
charged to Class A and Class B shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.
(d) Each director who is not an "affiliated person," as defined in the Act,
receives an annual fee of $1,500 and an attendance fee of $250 per meeting.
The Chairman of the Board receives an additional 25% of such compensation.
NOTE 3--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, other
than short-term securities, during the six months ended April 30, 1995,
amounted to $7,157,838 and $125,321, respectively.
At April 30, 1995, accumulated net unrealized appreciation on investments was
$2,648,428, consisting of $2,861,672 gross unrealized appreciation and $213,244
gross unrealized depreciation, excluding foreign currency transactions.
At April 30, 1995, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
<PAGE>
Premier Growth Fund, Inc.
- ------------------------------------------------------------------------------
Review Report of Ernst & Young LLP, 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, 1995, and the related statements of operations and changes in net assets
and financial highlights for the six month period ended April 30, 1995. These
financial statements and financial highlights are the responsibility of the
Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with generally accepted auditing standards, which will be
performed for the full year with the objective of expressing an opinion
regarding the financial statements and financial highlights taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the statement of changes in net assets for the year ended October
31, 1994 and financial highlights for each of the two years in the period ended
October 31, 1994 and in our report dated December 9, 1994, we expressed an
unqualified opinion on such statement of changes in net assets and financial
highlights.
Ernst & Young LLP
New York, New York
June 6, 1995
<PAGE>
Premier Growth
Fund, Inc.
200 Park Avenue
New York, NY 10166
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. 070/628SA954
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Semi-Annual Report
------------------------
Premier Growth
Fund, Inc.
------------------------
April 30, 1995
<Lion>
<PAGE>
