PREMIER GROWTH FUND, INC.
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 from
November 1, 1995 through April 30, 1996. During that period, the Fund's Class
A shares provided a total return of 11.39%, Class B shares 11.03%, and Class
C shares 10.89%. The Fund's Class R shares commenced operations on March 4,
1996 and since then have provided a total return of .55%.* During the
six-month period, the Standard & Poor's 500 Composite Stock Price Index
provided a total return of 13.76% and the Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE) Index provided a total
return of 13.21%.**
PORTFOLIO COMPOSITION
At the close of the period, the Fund had 5.8% of its net assets in
short-term Treasuries and the balance in equities. In the equity portion of
the Fund, industry concentrations were in consumer nondurables, health care
and financial services. As investment opportunities arise, in favorable
market conditions, the short-term cash equivalent assets will be committed to
high quality equity holdings.
ECONOMIC OUTLOOK
We expect average annual Gross Domestic Product in 1996 to expand
approximately 2.0%. This level of growth will be subpar to the cyclical peak,
which reflects successful implementation of monetary policy to extend the
economy's cycle, curbing growth before excess demand forces pricing
pressures to take hold in the system. Bond markets also serve to engineer
lengthened economic cycles, as investors drive up interest rates, if
inflation pressures surface, or perceptions of higher inflation trends build.
A negative shift in investor sentiment can thus almost immediately impact
market interest rates, and in turn raise the cost of capital. This pattern of
events, which has caused a sharp increase in interest rates since early this
year, will in our view, slow economic growth in the second half of the year.
We believe that fears of established higher trends in inflation are
overblown. We expect average annual inflation to be at or near the 1995 level
of 2.6%. As muted growth and inflation trends become more apparent, bond
prices should rise, bringing yields back toward 6.0% by year-end. This would
bring about a less volatile, constructive environment for equity markets.
INVESTMENT STRATEGY
Investments for the Premier Growth Fund emphasize the highest quality,
large capitalization companies, which we believe are well positioned to
achieve consistent earnings growth from dominant positioning in the U.S., and
from rapidly expanding sales in international markets.
When the direction of economic growth and inflation are somewhat
uncertain, investors' actions reflect this uncertainty, and daily volatility
in markets increases. In our view, in such an environment, investors' time
horizons should lengthen to look beyond shorter-term factors, with an eye on
long-term economic and industry trends - as opposed to day-to-day
distractions. Our strategy to avoid the short-term market timing and momentum
approaches in investment strategy should benefit the portfolio, as it is
structured with a three-to-five year time horizon, with a perspective well
into the next decade, and a focus on the highest-quality global corporations
with an average over 40% of sales in international markets. Companies
represented in the portfolio are continuing significant share repurchase
programs as market dominance, innovative management teams and productivity
enhancements produce excess cash flow. Global industry consolidation and
merger activity, particularly in the health care and financial services
sectors, should also continue to benefit holdings in the portfolio as the
world's leading corporations are positioned to solidify their presence in
developed and emerging markets and to enhance channels of distribution and
penetrate new markets.
INVESTMENT HIGHLIGHTS
Equity markets have continued to be quite positive during this reporting
period; however, there has also been increased volatility, which relates to
uncertainty about signs of a pickup in economic growth and investors'
concerns that inflation will accompany stronger growth. We believe
perceptions of building inflation are unfounded. We expect economic growth to
moderate in the second half, which should further dispel inflation fears.
The high-quality holdings in the consumer nondurables industry group had
the most positive impact on the Fund's performance during the six-month
reporting period - led by shares of L'Oreal ADR, Coca-Cola, PepsiCo, Eastman
Kodak, Philip Morris Cos. and Gillette. The holdings in health care, energy,
technology and chemicals also benefited performance returns - led by shares
of Pfizer, Royal Dutch Petroleum, General Electric and duPont (EI) de
Nemours.
We continue to have a positive long-term outlook on equity markets, and
during the reporting period, a wide variety of holdings in the Fund were
increased with new contributions. New positions were also established, with
the purchase of shares of American Home Products, Berkshire Hathaway, Chase
Manhattan Corp. and Estee Lauder Companies.
We appreciate your investment in Premier Growth Fund, Inc., and we will
continue to seek rewarding returns on your behalf.
Sincerely,
[Fayez Sarofim signature logo]
Fayez Sarofim
Portfolio Manager
May 15, 1996
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid,
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 and Class C 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 U.S. stock market performance. The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE(R)) Index is an unmanaged
index of foreign stock market performance.
<TABLE>
PREMIER GROWTH FUND, INC.
STATEMENT OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS-92.4% SHARES VALUE
______ ______
<S> <C> <C>
AEROSPACE & ELECTRONICS-8.1% Emerson Electric 10,000 $ 836,250
General Electric 30,000 2,325,000
Intel 30,000 2,032,500
Motorola 10,000 612,500
Philips Electronics NV A.D.R 30,000 1,076,250
Texas Instruments 5,000 282,500
____________
7,165,000
____________
AUTO RELATED-2.0%.......... Ford Motor 50,000 1,793,750
____________
BANKING-7.6%............ Chase Manhattan 25,000 1,721,875
Citicorp 30,000 2,362,500
Deutsche Bank A.D.R 20,000 952,500
HSBC Holdings A.D.R 5,500 816,750
Union Bank of Switzerland 4,010 870,338
____________
6,723,963
____________
CAPITAL GOODS-1.3%......... AlliedSignal 20,000 1,162,500
____________
CHEMICALS-6.2%........ Air Liquide A.D.R 45,000 1,636,875
Dow Chemical 11,500 1,022,063
duPont (EI) de Nemours 15,000 1,205,625
Norsk Hydro A.D.R 35,000 1,610,000
____________
5,474,563
____________
ENERGY-9.2%................... Chevron 20,000 1,160,000
Elf Aquitaine A.D.S 15,000 564,375
Exxon 22,000 1,870,000
Mobil 12,000 1,380,000
Royal Dutch Petroleum 15,000 2,148,750
Total, Cl. B, A.D.S 30,000 1,027,500
____________
8,150,625
____________
FINANCIAL-4.3%....... Berkshire Hathaway 65 2,177,500
Eurafrance 4,263 1,637,967
____________
3,815,467
____________
FOOD, BEVERAGE & TOBACCO-16.6% Coca-Cola 40,000 3,260,000
Guinness PLC, A.D.R 45,000 1,631,250
Kellogg 15,000 1,070,625
LVMH Moet Hennessy Louis Vuitton A.D.S 35,050 1,787,550
Nestle A.D.R 30,000 1,668,750
PepsiCo 30,000 1,905,000
Philip Morris Cos 25,000 2,253,125
Sara Lee 5,000 155,000
Seagram 28,000 948,500
____________
14,679,800
____________
PREMIER GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
HEALTH CARE-14.1%... Abbott Laboratories 33,000 $ 1,340,625
American Home Products 17,000 1,793,500
Johnson & Johnson 28,000 2,590,000
Merck 45,000 2,722,500
Pfizer 33,000 2,272,875
Roche Holdings A.D.S 22,000 1,729,750
____________
12,449,250
____________
INSURANCE-2.7%...............AXA 27,857 1,657,745
Zuerich Versicherung 2,500 697,347
____________
2,355,092
____________
LEISURE TIME-3.7%......... Disney (Walt) 15,000 930,000
Eastman Kodak 15,000 1,147,500
McDonalds 25,000 1,196,875
____________
3,274,375
____________
MEDIA/ENTERTAINMENT-1.8%.... News A.D.S 12,000 282,000
Pearson PLC 100,288 1,069,912
Reader's Digest Association, Cl. A 6,000 246,000
____________
1,597,912
____________
METALS-.4% Debeers Consolidated Mining A.D.R 10,000 317,500
____________
MULTI INDUSTRY-1.8%. Eaux (Generale Des) 6,000 651,720
Minnesota Mining & Manufacturing 15,000 986,250
____________
1,637,970
____________
OFFICE & BUSINESS EQUIPMENT-.9% Ericsson (LM) Telephone, Cl. B, A.D.R 10,000 203,750
General Motors, Cl. E 10,000 563,750
____________
767,500
____________
PAPER & FOREST PRODUCTS-.9% International Paper 20,000 797,500
____________
PERSONAL CARE-8.7%.. Estee Lauder, Cl. A 18,000 659,250
Gillette 35,000 1,890,000
International Flavor & Fragrances 20,000 982,500
L'Oreal A.D.R 30,000 1,856,250
Procter & Gamble 25,000 2,112,500
Unilever N.V. A.D.R 1,500 204,750
____________
7,705,250
____________
RETAIL-1.1%............. Wal-Mart Stores 40,000 955,000
____________
UTILITIES-1.0%...............Veba 18,000 894,301
____________
TOTAL COMMON STOCKS
(cost $68,730,214) $81,717,318
============
PREMIER GROWTH FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
PREFERRED STOCK-.8% SHARES VALUE
______ ______
MEDIA/ENTERTAINMENT News A.D.S., Cum., $.4428
(cost $655,528) 35,000 $ 713,125
============
CORPORATE BOND-.0% PRINCIPAL
AMOUNT
_________
Zuerich International,
2%, 3/1/2001
(cost $3,384) $ 5,000 $ 4,140
============
SHORT-TERM INVESTMENTS-5.8%
U.S. TREASURY BILLS: 5.83%, 5/2/1996 $ 657,000 $ 656,908
5.29%, 5/9/1996 411,000 410,564
5.22%, 6/27/1996 325,000 322,442
5.03%, 7/5/1996 638,000 632,271
5.02%, 7/11/1996 457,000 452,517
5.38%, 7/25/1996 2,720,000 2,687,931
____________
TOTAL SHORT-TERM INVESTMENTS
(cost $5,162,773) $ 5,162,633
============
TOTAL INVESTMENTS (cost $74,551,899). 99.0% $87,597,216
====== ============
CASH AND RECEIVABLES (NET)..... .................................... 1.0% $ 830,143
====== ============
NET ASSETS..................... ..................................... 100.0% $88,427,359
====== ============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
PREMIER GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $74,551,899)-see statement.................................... $87,597,216
Cash................................................................. 284,334
Receivable for subscriptions to Common Stock......................... 518,487
Dividends and interest receivable.................................... 184,765
Prepaid expenses..................................................... 39,060
____________
88,623,862
LIABILITIES:
Due to The Dreyfus Corporation....................................... $ 23,990
Due to Distributor................................................... 51,857
Payable for Common Stock redeemed.................................... 44,154
Accrued expenses..................................................... 76,502 196,503
____________
NET ASSETS............................................................... $88,427,359
============
REPRESENTED BY:
Paid-in capital...................................................... $75,342,562
Accumulated undistributed investment income-net..................... 60,519
Accumulated net realized (loss) on investments....................... (20,350)
Accumulated net unrealized appreciation on investments and foreign
currency transactions................................................ 13,044,628
____________
NET ASSETS at value...................................................... $88,427,359
============
Shares of Common Stock outstanding:
Class A Shares
(100 million shares of $.001 par value authorized)................... 1,700,389
============
Class B Shares
(100 million shares of $.001 par value authorized)................... 3,184,329
============
Class C Shares
(100 million shares of $.001 par value authorized)................... 30,468
============
Class R Shares
(100 million shares of $.001 par value authorized)................... 55
============
NET ASSET VALUE per share:
Class A Shares
($30,833,120 / 1,700,389 shares)..................................... $18.13
========
Class B Shares
($57,049,304 / 3,184,329 shares)..................................... $17.92
========
Class C Shares
($543,938 / 30,468 shares)........................................... $17.85
========
Class R Shares
($997 / 55 shares)................................................... $18.13
========
See independent accountants' review report and notes to financial statements.
PREMIER GROWTH FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $34,043 foreign taxes withheld at source)..... $ 655,402
Interest............................................................. 118,775
____________
TOTAL INCOME......................................................... $ 774,177
EXPENSES:
Investment advisory fee-Note 2(a)................................... 263,564
Distribution fees-Note 2(b)......................................... 167,522
Shareholder servicing costs-Note 2(c)............................... 146,816
Professional fees.................................................... 26,359
Registration fees.................................................... 24,098
Prospectus and shareholders' reports................................. 13,088
Directors' fees and expenses-Note 2(d).............................. 9,591
Custodian fees....................................................... 8,547
Miscellaneous........................................................ 12,886
____________
TOTAL EXPENSES....................................................... 672,471
Less-reduction in advisory fee due to
undertaking-Note 2(a)............................................... 65,674
____________
NET EXPENSES......................................................... 606,797
____________
INVESTMENT INCOME-NET............................................... 167,380
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments and foreign currency
transactions-Note 3................................................. $ 44,604
Net unrealized appreciation on investments and foreign currency
transactions......................................................... 6,650,840
____________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS...................... 6,695,444
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $6,862,824
============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
PREMIER GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1996
1995 (UNAUDITED)
______ _________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 363,224 $ 167,380
Net realized gain (loss) on investments................................. (64,990) 44,604
Net unrealized appreciation on investments for the period............... 5,456,383 6,650,840
___________ ___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................... 5,754,617 6,862,824
___________ ___________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net:
Class A shares.......................................................... (126,276) (186,456)
Class B shares.......................................................... (107,367) (189,905)
Class C shares.......................................................... - (837)
___________ ___________
TOTAL DIVIDENDS......................................................... (233,643) (377,198)
___________ ___________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.......................................................... 10,672,133 11,832,373
Class B shares.......................................................... 23,316,171 23,032,338
Class C shares.......................................................... 47,427 522,624
Class R shares.......................................................... - 1,000
Dividends reinvested:
Class A shares.......................................................... 118,079 168,140
Class B shares.......................................................... 92,549 156,144
Class C shares.......................................................... - 396
Cost of shares redeemed:
Class A shares.......................................................... (2,206,613) (2,384,642)
Class B shares.......................................................... (5,078,376) (2,763,781)
Class C shares.......................................................... - (47,811)
___________ ___________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.................. 26,961,370 30,516,781
___________ ___________
TOTAL INCREASE IN NET ASSETS............................................ 32,482,344 37,002,407
NET ASSETS:
Beginning of period..................................................... 18,942,608 51,424,952
___________ ___________
End of period (including undistributed investment income-net:
$270,337 in 1995 and $60,519 in 1996)................................... $51,424,952 $88,427,359
============ ============
</TABLE>
<TABLE>
SHARES
_________________________________________________________________________________________________________________________________
CLASS A CLASS B CLASS C CLASS R
____________________________ ____________________________ ____________________________ ________
SIX MONTHS SIX MONTHS SIX MONTHS PERIOD ENDED
YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED ENDED APRIL 30,
OCTOBER 31, APRIL 30, 1996 OCTOBER 31, APRIL 30, 1996 OCTOBER 31, APRIL 30, 1996 1996(2)
1995 (UNAUDITED) 1995 (UNAUDITED) 1995(1) (UNAUDITED) (UNAUDITED)
_________ _________ _________ _________ _________ ___________ ___________
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold.......... 709,874 678,342 1,554,836 1,327,330 2,940 30,285 55
Shares issued for
dividends
reinvested............ 8,918 9,753 7,027 9,136 - 23 -
Shares redeemed..... (147,256) (134,889) (337,253) (159,226) - (2,780) -
_________ _________ _________ _________ _________ ___________ __________
NET INCREASE IN SHARES
OUTSTANDING............ 571,536 553,206 1,224,610 1,177,240 2,940 27,528 55
========= ========= ========= ========= ======= ========= ==========
(1) From June 21, 1995 (commencement of initial offering) to October 31,
1995.
(2) From March 4, 1996 (commencement of initial offering) to April 30, 1996.
See independent accountants' review report and 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 period indicated. This
information has been derived from the Fund's financial statements.
CLASS A SHARES
___________________________________________________________
YEAR ENDED OCTOBER 31, SIX MONTHS ENDED
_____________________________________ APRIL 30, 1996
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED)
________ ________ ________ _______________
<S> <C> <C> <C> <C>
Net asset value, beginning of period...... $12.50 $13.21 $14.03 $16.41
______ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income (loss)-net.............. (.01) .16 .20 .06
Net realized and unrealized gain on investments .72 .66 2.39 1.80
______ ______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS........ .71 .82 2.59 1.86
______ ______ ______ ______
DISTRIBUTIONS;
Dividends from investment income-net...... - - (.21) (.14)
______ ______ ______ ______
Net asset value, end of period............ $13.21 $14.03 $16.41 $18.13
====== ====== ====== ======
TOTAL INVESTMENT RETURN(2).................... 5.68%(3) 6.21% 18.77% 11.39%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets... .77%(3) 1.33% 1.22% .62%(3)
Ratio of net investment income (loss) to average
net assets.............................. (.12%)(3) 1.49% 1.59% .47%(3)
Decrease reflected in above expense ratios due to
undertakings by Dreyfus................. .88%(3) .75% .53% .09%(3)
Portfolio Turnover Rate................... - .71% 1.16% .74%(3)
Average commission rate paid(4)........... - - - $ .0817
Net Assets, end of period (000's Omitted). $3,338 $8,075 $18,822 $30,833
(1) From July 15, 1993 (commencement of operations) to October 31, 1993.
(2) Exclusive of sales load.
(3) Not annualized.
(4) For fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose its average commission rate paid per share for purchases
and sales of investment securities.
See independent accountants' review report and notes to financial statements.
</TABLE>
PREMIER GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
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>
CLASS B SHARES
____________________________________________________________
YEAR ENDED OCTOBER 31, SIX MONTHS ENDED
___________________________________________ APRIL 30, 1996
PER SHARE DATA: 1993(1) 1994 1995 (UNAUDITED)
______ ______ ______ ______________
<S> <C> <C> <C> <C>
Net asset value, beginning of period...... $12.50 $13.17 $13.89 $16.22
______ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income (loss)-net.............. (.03) .09 .12 .02
Net realized and unrealized gain on investments .70 .63 2.34 1.77
______ ______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS........ .67 .72 2.46 1.79
______ ______ ______ ______
DISTRIBUTIONS;
Dividends from investment income-net...... - - (.13) (.09)
______ ______ ______ ______
Net asset value, end of period............ $13.17 $13.89 $16.22 $17.92
======= ====== ======= ========
TOTAL INVESTMENT RETURN(2).................... 5.36%(3) 5.47% 17.88% 11.03%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets... 1.14%(3) 2.07% 1.98% 1.00%(3)
Ratio of net investment income (loss) to average
net assets.............................. (.53%)(3) .71% .84% .10%(3)
Decrease reflected in above expense ratios due to
undertakings by Dreyfus................. 1.01%(3) .75% .46% .09%(3)
Portfolio Turnover Rate................... - .71% 1.16% .74%(3)
Average commission rate paid(4)........... - - - $ .0817
Net Assets, end of period (000's Omitted). $2,554 $10,867 $32,555 $57,049
(1) From July 15, 1993 (commencement of operations) to October 31, 1993.
(2) Exclusive of sales load.
(3) Not annualized.
(4) For fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose its average commission rate paid per share for purchases
and sales of investment securities.
See independent accountants' review report and notes to financial statements.
</TABLE>
PREMIER GROWTH FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
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>
CLASS C SHARES CLASS R SHARES
_____________________________________ ________________
YEAR ENDED SIX MONTHS ENDED PERIOD ENDED
OCTOBER 31, APRIL 30, 1996 APRIL 30, 1996(2)
PER SHARE DATA: 1995(1) (UNAUDITED) (UNAUDITED)
___________ _____________ _________________
<S> <C> <C> <C>
Net asset value, beginning of period...... $15.56 $16.22 $18.03
_____ ______ ______
INVESTMENT OPERATIONS:
Investment income (loss)-net.............. (.01) .12 .04
Net realized and unrealized gain (loss)
on investments.......................... .67 1.64 .06
_____ ______ ______
TOTAL FROM INVESTMENT OPERATIONS........ .66 1.76 .10
_____ ______ ______
DISTRIBUTIONS;
Dividends from investment income-net...... - (.13) -
_____ ______ ______
Net asset value, end of period............ $16.22 $17.85 $18.13
======== ======== ========
TOTAL INVESTMENT RETURN(3)(4)................. 4.71% 10.89% .55%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(4) 1.56% 1.03% .13%
Ratio of net investment income (loss) to average
net assets(4)........................... (.63%) .10% .23%
Decrease reflected in above expense ratios due to
undertakings by Dreyfus(4).............. .73% .09% .09%
Portfolio Turnover Rate(4)................ 1.16% .74% .74%
Average commission rate paid(5)........... - $.0817 $.0817
Net Assets, end of period (000's Omitted). $48 $ 544 $ 1
(1) From June 21, 1995 (commencement of initial offering) to October 31,
1995.
(2) From March 4, 1996 (commencement of initial offering) to April 30, 1996.
(3) Exclusive of sales load.
(4) Not annualized.
(5) For fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose its average commission rate paid per share for purchases
and sales of investment securities.
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:
Premier Growth Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 ("Act") as a diversified open-end management investment
company. The Fund's investment objective is to provide an investor with
long-term capital growth consistent with the preservation of capital. The
Dreyfus Corporation ("Dreyfus") serves as the Fund's investment adviser.
Fayez Sarofim & Co. ("Sarofim") serves as the Fund's sub-investment adviser.
Dreyfus is a direct subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund offers Class A, Class B, Class C
and Class R shares. Class A shares are subject to a sales charge imposed at
the time of purchase, 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, Class C shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within one year
of purchase and Class R shares are sold at net asset value per share only to
institutional investors. Other differences between the four 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.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amounts of dividends, interest and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
PREMIER GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, it is the policy of
the Fund not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $67,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1995. If not
applied, the carryover expires in fiscal 2003.
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
value of the Fund's average daily 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, exclusive of 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 (excluding 12b-1 Distribution Plan fees 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, 1995 through October
31, 1996, to reduce the management fee paid by, or reimburse such excess
expenses of the Fund, to the extent that the Fund's aggregate annual expenses
(excluding 12b-1 Distribution Plan fees and certain expenses as described
above) exceed an annual rate of 1.25 of 1% of the value of the Fund's average
daily net assets. The reduction in investment advisory fee, pursuant to the
undertaking, amounted to $65,674 for the six months ended April 30, 1996.
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>
PREMIER GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Dreyfus Service Corporation, a wholly-owned subsidiary of Dreyfus,
retained $7,750 during the six months ended April 30, 1996
from commissions earned on sales of the Fund's shares.
(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 and Class C shares at an annual rate of .75 of 1% of the value of the
average daily net assets of Class B and Class C shares. During the six months
ended April 30, 1996, $166,467 was charged to the Fund for the Class B shares
and $1,055 was charged to the Fund for the Class C shares.
(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, Class B and Class C shares for the provision of certain services.
The services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the six months ended April 30,
1996, $32,014, $55,489 and $352 were charged to Class A, B and C shares,
respectively, by the Distributor pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for
providing personnel and facilities to perform transfer agency services for
the Fund. Such compensation amounted to $25,644 for the period from December
1, 1995 through April 30, 1996.
(D) Each director who is not an "affiliated person," as defined in the
Act receives from the Fund 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,
excluding short-term securities, during the six months ended April 30, 1996,
amounted to $27,745,948 and $492,746, respectively.
At April 30, 1996, accumulated net unrealized appreciation on investments
was $13,045,317, consisting of $13,399,967 gross unrealized appreciation and
$354,650 gross unrealized depreciation.
At April 30, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
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, 1996, and the related statements of operations and changes in net
assets and financial highlights for the six month period ended April 30,
1996. 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, 1995 and financial highlights for each of the three years in the
period ended October 31, 1995 and in our report dated December 1, 1995, 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 4, 1996
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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 070/628SA964
Semi-Annual Report
Premier Growth
Fund, Inc.
April 30, 1996
[Dreyfus lion logo]
