PRESIDENT'S LETTER
Dear Shareholder:
We are pleased to send you this first financial report for the
Dreyfus Asset Allocation Fund, covering the semi-annual fiscal period from
inception of the Fund on July 1, 1993, through October 31, 1993.
These first four months of the Fund's existence have been spent
primarily in laying the groundwork for future investments. During this time
span, while the Fund's assets grew to approximately $36.6 million under
management as of October 31, we began to deploy the assets into the three
major categories in which the Fund is authorized to invest.
As you will recall from reading the Prospectus, the Fund invests in
common stocks as represented by the Standard & Poor's 500 Composite Stock
Price Index,* in U.S. Treasury Notes and Bonds with remaining maturities at
the time of purchase of at least one year, and in short-term money market
instruments.
The Fund has broad latitude in selecting the class of investments
and market sectors in which it will invest.
Some of the factors that are considered in determining the Fund's
asset allocation mix include: (1) overall price/earnings ratio of the S & P
500 Index based on earnings estimates, dividend yields and payout ratios;
(2) level and direction of long-term interest rates versus short-term rates;
(3) historical investment returns for each asset class in which the Fund can
invest relative to the prevailing business cycle; and (4) general economic
conditions such as current inflation, unemployment and capacity utilization
figures.
Under normal circumstances, the Fund's asset class weightings are
anticipated to be 55% in common stocks, 35% in U.S. Treasury Notes and Bonds,
and 10% in short-term money market instruments.
Initially, we allocated approximately half of the assets to common
stocks. By October 31, the allocation had changed to: 71% common stocks; 6%
U.S. Treasury Notes and Bonds; and 23% cash equivalents, including U.S.
Treasury bills.
The total return for the Fund during this initial start-up period
reflects, in part, the high percentage in cash. For the first four months,
the Fund's total return was 2%**. As the Fund becomes more fully invested,
we expect that returns should more closely approximate average returns for
the categories in which the Fund invests.
In the common stock portion of the Fund, allocation among industry
classifications closely follows that of the Standard & Poor's 500 Index. At
the end of the fiscal period there were 90 different issues of common stocks
in the Fund's portfolio, covering 18 different industry sectors. Among the
biggest sectors were: utilities (including telephone companies) with 10.63%
of total Fund assets; energy with 8.97%; finance with 7.75%; manufacturing
with 6.76%; electronics with 6.71%; and health technology with 5.67%.
We welcome you as an investor in the Dreyfus Asset Allocation Fund
and look forward to serving your investment needs.
Sincerely,
Howard Stein
President
November 22, 1993
New York, N.Y.
* The Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of stock market performance.
** Total return represents the change during the period in a hypothetical
account with dividends reinvested.
DREYFUS ASSET ALLOCATION FUND, INC. OCTOBER 31, 1993
BROAD SECTOR ALLOCATION*
[Exhibit A]
Sector allocations in the pie chart are broader groupings than are listed in
the Report's Statement of Investments.
Portfolio composition is subject to change at any time.
ASSET ALLOCATION*
Common Stocks...................... 70.8%
U.S. Treasury Notes................ 5.9
Cash Equivalents.................. 23.3
-------
100.0%
TEN LARGEST HOLDINGS*
General Electric............................ 3.4%
American Telephone & Telegraph.............. 3.4
Exxon....................................... 3.1
U.S. Treasury Note, 7.25%, 8/31/1996........ 2.9
U.S. Treasury Note, 6.375%, 8/15/2002....... 2.9
WalMart Stores.............................. 2.7
Coca Cola................................... 2.5
Royal Dutch Petroleum....................... 2.5
Philip Morris Cos........................... 2.2
Dupont (EI) De Nemours...................... 1.8
*As a percentage of Total Net Assets.
<TABLE>
<CAPTION>
DREYFUS ASSET ALLOCATION FUND, INC.
STATEMENT OF INVESTMENTS OCTOBER 31, 1993 (UNAUDITED)
COMMON STOCKS-70.8%
BASIC INDUSTRIES-5.1% SHARES VALUE
--------------- -------------
<S> <C> <C>
Chemicals-2.3% Dow Chemical.................................. 3,300 $ 183,150
Dupont (EI) De Nemours........................ 13,500 644,625
-------------
827,775
-------------
Metals-.5% Alcan Aluminium............................... 1,100 22,550
Aluminum Co. of America....................... 2,500 170,000
-------------
192,550
-------------
Mining-1.3% Minnesota Mining & Manufacturing.............. 3,900 404,625
Placer Dome................................... 2,900 70,688
-------------
475,313
-------------
Paper & Forest
Products-.4% International Paper........................... 1,200 71,100
Weyerhauser Co................................ 2,400 95,100
-------------
166,200
-------------
Photography-.6% Eastman Kodak................................. 3,500 220,500
-------------
TOTAL BASIC INDUSTRIES 1,882,338
=============
CAPITAL GOODS-1.8%
Environmental
Control-.8% WMX Technologies.............................. 12,000 295,500
-------------
Machinery &
Industrial-1.0% Caterpillar................................... 2,300 210,450
Cooper Industries............................. 2,600 135,850
-------------
346,300
-------------
TOTAL CAPITAL GOODS 641,800
=============
CAPITAL GOODS/TECHNOLOGY-9.7%
Aerospace/
Defense-.6% Allied Signal................................. 1,700 121,762
United Technologies........................... 1,800 111,600
-------------
233,362
-------------
Electrical
Equipment-3.7% General Electric.............................. 13,000 1,261,000
Westinghouse Electric......................... 6,800 98,600
-------------
1,359,600
-------------
Electronics-3.0% Intel Corp.................................... 8,300 524,975
Motorola Inc.................................. 4,600 481,850
Texas Instruments............................. 1,400 91,875
-------------
1,098,700
-------------
Information
Processing-2.4% Apple Computer................................ 1,500 46,125
Automatic Data Processing..................... 2,600 138,775
Hewlett Packard............................... 1,100 80,988
International Business Machines............... 10,600 487,600
Pitney Bowes.................................. 2,900 113,825
-------------
867,313
-------------
TOTAL CAPITAL GOODS/TECHNOLOGY 3,558,975
=============
CONGLOMERATES-.3%
ITT........................................... 1,300 121,063
=============
CONSUMER CYCLICAL-8.7%
Appliances-.2% Corning....................................... 2,700 69,862
-------------
Auto Related-3.3% Ford Motor.................................... 9,400 581,625
General Motors................................ 13,000 619,125
-------------
1,200,750
-------------
Merchandising-5.2% May Department Stores......................... 3,000 132,750
Home Depot.................................... 7,800 309,075
Kmart......................................... 4,800 117,600
Penney (J.C.)................................. 2,700 140,400
Sears Roebuck................................. 3,400 195,075
WalMart Stores................................ 38,100 1,004,887
-------------
1,899,787
-------------
TOTAL CONSUMER CYCLICAL 3,170,399
=============
SHARES VALUE
--------------- -------------
Beverages-4.0% Coca Cola..................................... 21,100 $ 915,212
Pepsico....................................... 14,200 560,900
-------------
1,476,112
-------------
Drugs-4.0% American Home Products........................ 1,600 100,000
Bristol-Myers Squibb.......................... 9,800 575,750
Merck & Co.................................... 20,000 642,500
UpJohn........................................ 3,900 127,238
-------------
1,445,488
-------------
Entertainment-.6% Disney (Walt)................................. 5,200 222,300
-------------
Hospital
Supplies-1.7% Abbott Laboratories........................... 7,900 224,163
Baxter International.......................... 3,400 80,750
Johnson & Johnson............................. 7,800 328,575
-------------
633,488
-------------
Printing &
Publishing-.8% Dun & Bradstreet.............................. 2,500 167,500
Gannett Co. Inc............................... .2,200 113,025
-------------
280,525
-------------
Restaurants-1.0% McDonald's.................................... 6,200 357,275
-------------
TOTAL CONSUMER GROWTH STAPLES............. 4,415,188
=============
CONSUMER STAPLES-4.7%
Foods-.8% Albertons..................................... 3,800 99,275
General Mills................................. 1,800 115,200
Sara Lee...................................... 3,500 92,750
-------------
307,225
-------------
Household
Products-1.7% Proctor & Gamble.............................. 11,800 640,150
-------------
Tobacco-2.2% Philip Morris Cos............................. 14,700 790,125
-------------
TOTAL CONSUMER STAPLES.................... 1,737,500
=============
ENERGY-9.0%
Oil & Gas
Production-9.0% Amoco......................................... 3,300 184,388
Atlantic Richfield............................ 500 55,125
Chevron....................................... 2,900 281,300
Exxon......................................... 17,500 1,144,063
Mobil......................................... 6,700 546,050
Royal Dutch Petroleum......................... 8,500 898,875
Texaco........................................ 2,600 177,125
-------------
TOTAL ENERGY.............................. 3,286,926
=============
FINANCIAL-7.4%
Banking-4.0% Banc One...................................... 5,425 208,184
BankAmerica................................... 8,100 338,175
Bankers Trust New York........................ 1,400 110,950
Chase Manhattan............................... 6,000 198,000
Chemical Banking.............................. 2,600 104,000
Citicorp...................................... 3,900 141,375
Morgan (J.P.)................................. 2,300 164,163
Nationsbank................................... 4,500 209,813
-------------
1,474,660
-------------
Finance-1.4% American Express.............................. 5,700 183,825
Federal Nat'l Mort. Assn...................... 4,300 334,862
-------------
518,687
-------------
Insurance-2.0% American General.............................. 2,700 79,312
American Int'l Group.......................... 5,900 531,000
General Re.................................... 1,000 115,750
-------------
726,062
-------------
TOTAL FINANCIAL........................... 2,719,409
=============
SHARES VALUE
--------------- --------------
RAILROADS--1.4%
CSX........................................... 1,700 137,700
Norfolk Southern.............................. 1,600 106,000
Union Pacific................................. 4,500 284,625
-------------
TOTAL RAILROADS........................... 528,325
=============
UTILITIES-10.6%
Communication-8.4%
American Telephone & Telegraph................ 21,800 1,256,225
Ameritech..................................... 2,400 203,400
Bell Atlantic................................. 1,700 108,162
BellSouth..................................... 6,100 382,775
GTE........................................... 13,400 532,650
NYNEX......................................... 4,400 185,900
Pacific Telesis............................... 1,600 87,800
Southwestern Bell............................. 5,100 225,675
U.S. West..................................... 2,000 100,250
-------------
3,082,837
-------------
Electrical-2.2% Duke Power.................................... 2,400 105,000
Pacific Gas & Electric........................ 8,200 297,250
Pub. Serv. Enterprise Group................... 300 10,125
SCE Corp...................................... 5,400 113,400
Southern...................................... 3,700 166,037
Texas Utilities............................... 2,700 121,500
-------------
813,312
-------------
TOTAL UTILITIES 3,896,149
=============
TOTAL COMMON STOCKS
(cost $25,845,639) $ 25,958,072
=============
U.S. TREASURY NOTES-5.9%
PRINCIPAL
AMOUNT
----------
U.S. Treasury Note, 7.25%, 8/31/1996.......... $1,000,000 $1,078,281
U.S. Treasury Note, 6.375%, 8/15/2002......... 1,000,000 1,068,438
-------------
TOTAL U.S. TREASURY NOTES
(cost $2,000,000)......................... $2,146,719
=============
SHORT-TERM INVESTMENTS--21.0%
U.S. Treasury Bills:
3.12%, 11/26/1993............................. $533,000 $531,901
3.57%, 12/16/1993............................. 3,377,000 3,364,700
3.20%, 12/23/1993............................. 706,000 703,053
3.10%, 1/6/1994............................... 1,801,000 1,791,276
3.15%, 1/20/1994.............................. 1,068,000 1,060,825
3.24%, 1/27/1994.............................. 252,000 250,136
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $7,701,891)..................... $ 7,701,891
=============
TOTAL INVESTMENTS (cost $35,547,530)................................................ 97.7% $ 35,806,682
====== =============
CASH AND RECEIVABLES (NET).......................................................... 2.3% $ 848,834
====== =============
NET ASSETS.......................................................................... 100.0% $ 36,655,516
====== =============
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS ASSET ALLOCATION FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1993 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $35,547,530)-see statement.......................................... $35,806,682
Cash........................................................................... 68,912
Receivable for shares of Common Stock subscribed............................... 697,864
Dividends and interest receivable.............................................. 66,705
Prepaid expenses............................................................... 88,451
Due from The Dreyfus Corporation............................................... 68,510
-----------
36,797,124
LIABILITIES:
Payable for shares of Common Stock redeemed.................................... $ 10,710
Accrued expenses............................................................... 130,898 141,608
----------- -----------
NET ASSETS.......................................................................... $36,655,516
===========
REPRESENTED BY:
Paid-in capital................................................................ $36,137,120
Accumulated undistributed investment income-net................................ 190,831
Accumulated undistributed net realized gain on investments..................... 68,413
Accumulated net unrealized appreciation on investments-Note 4(b)............... 259,152
-----------
NET ASSETS at value applicable to 2,875,814 shares outstanding
(300 million shares of $.001 par value Common Stock authorized)................ $36,655,516
===========
NET ASSET VALUE, offering and redemption price per share
($36,655,516/2,875,814 shares)................................................. $12.75
======
STATEMENT OF OPERATIONS
FROM JULY 1, 1993 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1993 (UNAUDITED)
INVESTMENT INCOME:
INCOME:
Interest.................................................................. $132,424
Cash dividends (net of $617 foreign taxes withheld at source)............. 58,407
--------
TOTAL INCOME.................................................... $ 190,831
EXPENSES:
Management fee-Note 2(a).................................................. 51,394
Shareholder servicing costs-Note 2(b,c)................................... 55,000
Auditing fees............................................................. 18,003
Registration fees......................................................... 12,005
Legal fees................................................................ 8,085
Organization expenses-Note 1(e)........................................... 5,997
Directors fees and expenses-Note 2(d)..................................... 5,401
Shareholders' reports-Note 2(b)........................................... 4,000
Custodian fees............................................................ 3,281
Miscellaneous............................................................. 1,222
--------
164,388
Less-expense reimbursement from Manager due to undertaking-Note 2(a)..... 164,388
--------
TOTAL EXPENSES.................................................. -
--------
INVESTMENT INCOME-NET........................................... 190,831
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments (including option transactions)-Note 3(a)... $ (21,928)
Net realized gain (loss) on financial futures-Note 3(a):
Long transactions......................................................... 96,992
Short transactions........................................................ (6,651)
---------
NET REALIZED GAIN......................................................... 68,413
Net unrealized appreciation on investments..................................... 259,152
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 327,565
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................ $ 518,396
=========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS ASSET ALLOCATION FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FROM JULY 1, 1993 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1993 (UNAUDITED)
OPERATIONS:
<S> <C>
Investment income-net.......................................................... $ 190,831
Net realized gain on investments............................................... 68,413
Net unrealized appreciation on investments for the period...................... 259,152
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... 518,396
-----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.................................................. 43,841,760
Cost of shares redeemed........................................................ (7,804,640)
-----------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.................... 36,037,120
-----------
TOTAL INCREASE IN NET ASSETS......................................... 36,555,516
NET ASSETS:
Beginning of period-Note 1..................................................... 100,000
-----------
End of period (including undistributed investment
income-net of $190,831)................................................... $36,655,516
===========
SHARES
-----------
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................................................... 3,491,448
Shares redeemed................................................................ (623,634)
-----------
NET INCREASE IN SHARES OUTSTANDING........................................ 2,867,814
===========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS ASSET ALLOCATION FUND, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for the period July 1, 1993
(commencement of operations) to October 31, 1993. This information has
been derived from information provided in the Fund's financial statements.
PER SHARE DATA:
<S> <C>
Net asset value, beginning of period........................................... $12.50
------
INVESTMENT OPERATIONS:
Investment income -net......................................................... .07
Net realized and unrealized gain on investments................................ .18
------
TOTAL FROM INVESTMENT OPERATIONS.......................................... .25
------
Net asset value, end of period................................................. $12.75
======
TOTAL INVESTMENT RETURN 2.00%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets.............................. _
Ratio of net investment income to average net assets........................... 1.00%*
Decrease reflected in above expense ratio due to
undertaking by the Manager................................................ .86%*
Portfolio Turnover Rate........................................................ _
Net Assets, end of period (000's Omitted)...................................... $36,656
- ----------------
* Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS ASSET ALLOCATION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Asset Allocation Fund, Inc. (the "Fund") was incorporated on May
12, 1993 and had no operations until July 1, 1993 (commencement of operations)
other than matters relating to its organization and registration as a
non-diversified open-end management investment company under the Investment
Company Act of 1940 ("Act") and the Securities Act of 1933 and the sale and
issuance of 8,000 shares of Common Stock ("Initial Shares") to The Dreyfus
Corporation ("Manager"). Dreyfus Service Corporation ("Distributor") acts as
the distributor of the Fund's shares, which are sold to the public without a
sales load. The Distributor is a wholly-owned subsidiary of the Manager. As
of October 31, 1993, the Manager held 408,000 shares. The Fund's fiscal year
ends on April 30.
(A) PORTFOLIO VALUATION: Investments in securities (including options
and financial futures) are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Securities for which there are no such valuations are valued at fair value as
determined in good faith under the direction of the Board of Directors.
Short-term investments are carried at amortized cost, which approximates
value. Investments traded in foreign currencies are translated to U.S.
dollars at the prevailing rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a
regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of taxable income sufficient to
relieve it from all, or substantially all, Federal income taxes.
(E) OTHER: Organization expenses paid by the Fund are included in
prepaid expenses and are being amortized to operations from July 1, 1993,
the date operations commenced, over the period during which it is expected
that a benefit will be realized, not to exceed five years. At October 31,
1993, the unamortized balance of such expenses amounted to $85,940. In the
event that any of the Initial Shares are redeemed during the amortization
period, the redemption proceeds will be reduced by any unamortized
organization expenses in the same proportion as the number of such shares
being redeemed bears to the number of such shares outstanding at the time of
such redemption.
DREYFUS ASSET ALLOCATION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .75 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund. 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, the Manager has undertaken from July 1,
1993 through October 31, 1993 to reimburse all fees and expenses of the Fund.
The expense reimbursement, pursuant to the undertaking, amounted to $164,388
for the period ended October 31, 1993.
The Manager may modify the expense limitation percentages from time to
time, provided that the resulting expense reimbursement would not be less than
the amount required pursuant to the Agreement.
(B) Under the Distribution Plan (the "Plan") adopted pursuant to Rule
12b-1 under the Act, the Fund pays the Distributor, at an annual rate of
.50 of 1% of the value of the Fund's average daily net assets, for costs and
expenses in connection with advertising, marketing and distributing the
Fund's shares and for servicing shareholder accounts. The Distributor may
make payments to one or more Service Agents (a securities dealer, financial
institution, or other industry professional) based on the value of the Fund's
shares owned by clients of the Service Agent. The Plan also separately
provides for the Fund to bear the costs of preparing, printing and
distributing certain of the Fund's prospectuses and statements of additional
information and costs associated with implementing and operating the Plan,
not to exceed the greater of $100,000 or .005 of 1% of the Fund's average
daily net assets for any full fiscal year. During the period ended October
31, 1993, the Fund was charged $34,263 pursuant to the Plan.
(C) Pursuant to the Fund's Shareholder Services Plan, the Fund pays
the Distributor, at an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for 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. During the period ended October 31, 1993, the Fund
was charged $17,131 pursuant to the Shareholder Services Plan.
(D) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives an annual fee of $1,000 and an
attendance fee of $250 per meeting.
DREYFUS ASSET ALLOCATION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases of investment securities,
excluding short-term securities and options transactions, during the period
ended October 31, 1993 amounted to $27,845,639.
The Fund is engaged in trading financial futures contracts. The Fund
is exposed to market risk as a result of changes in the value of the
underlying financial instruments. Investments in financial futures require
the Fund to "mark to market" on a daily basis, which reflects the change in
the market value of the contract at the close of each day's trading.
Accordingly, variation margin payments are made or received to reflect
daily unrealized gains or losses. When the contracts are closed, the Fund
recognizes a realized gain or loss. These investments require initial margin
deposits with a custodian, which consist of cash or cash equivalents, up to
approximately 10% of the contract amount. The amount of these deposits is
determined by the exchange or Board of Trade on which the contract is traded
and is subject to change. At October 31, 1993, there were no financial
futures contracts outstanding.
(B) At October 31, 1993, accumulated net unrealized appreciation on
investments was $259,152, consisting of $803,310 gross unrealized
appreciation and $544,158 gross unrealized depreciation.
At October 31, 1993, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
(Dreyfus Logo)
Asset Allocation Fund, Inc.
Semi-Annual
Report
October 31, 1993
(Dreyfus Lion Logo)
(Dreyfus 'D' Logo)
DREYFUS ASSET
ALLOCATION FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 550SA9310
Dreyfus Asset Allocation Fund, Inc. October 31, 1993
Broad Sector Allocation *
|--------------------------------------------------------------|
|Cash Equivalents 23.3 % |
|Consumer Growth Staples 12.1 % |
|Utilities 10.6 % |
|Capital Goods/Technology 9.7 % |
|Energy 9.0 % |
|Consumer Cyclical 8.7 % |
|Financial 7.4 % |
|U.S. Treasury Notes 5.9 % |
|Basic Industries 5.1 % |
|Consumer Staples 4.7 % |
|Other 3.5 % |
|--------------------------------------------------------------|
