LETTER TO SHAREHOLDERS
- -------------------------------------------------------------------------
Dear Shareholder:
It is a pleasure to send you this first annual report of the Dreyfus
Growth Portfolio of the Dreyfus Asset Allocation Fund, Inc. It covers
the period from inception of the Portfolio on October 18, 1994 through
April 30, 1995, the Fund's fiscal year-end.
Dreyfus Growth Portfolio provided a total return of 5.53% for the
period since inception.* This compares with a total return of 9.10% for
the Wilshire 5000 Index, which is the benchmark index used for the
Portfolio for evaluating performance.**
While the Portfolio can invest in any of the 5000 stocks composing
the Wilshire 5000 Index, during the period we chose to concentrate
investments primarily in technology, health care, selected chemicals,
energy and producer manufacturing. In addition, the Portfolio had some
exposure to consumer stocks which dampened overall performance.
Among the major holdings in the technology field were Microsoft,
Motorola and Texas Instruments, which have worked out well to date.
In health care, our principal investments were such names as Merck &
Co., Johnson & Johnson, American Home Products, Baxter International and
Abbott Laboratories. This group began to show strength when the Clinton
health reform plan foundered in Congress.
In the energy group, we favored Texaco and Royal Dutch Petroleum,
and in energy services, Schlumberger.
The chemicals group benefited from restructuring in duPont (EI)
deNemours and Grace (W.R.). Among producer goods, holdings such as
TRINOVA, Deere & Co., and Boeing proved rewarding.
The Portfolio also has holdings in American multinational companies
that derive a considerable share of their business from overseas sales.
The low price of the dollar on foreign exchange markets boosted profits
for these companies and strengthened their stocks. We look for this
favorable trend to most likely continue for the balance of this calendar
year and into 1996, as we maintain prudence in an investment field
involving certain special risk considerations.
We appreciate your investment in the Portfolio and will continue to
exert our best effort to provide capital appreciation on your holdings.
Sincerely,
Ernest G. Wiggins
Portfolio Manager
May 16, 1995
New York, N.Y.
*Total return represents the change during the period in a hypothetical
account with dividends reinvested.
**SOURCE: WILSHIRE ASSOCIATES, INCORPORATED. - Reflects the reinvestment
of income dividends and, where applicable, capital gain distributions.
The Wilshire 5000 Index consists of all publicly traded stocks in the
United States, and is a widely accepted unmanaged index of overall
stock market performance. The Wilshire 5000 Index total return is from
10/31/94-4/30/95 (not from inception, 10/18/94).
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
- -------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE DREYFUS
GROWTH PORTFOLIO OF DREYFUS ASSET ALLOCATION FUND, INC. WITH THE
WILSHIRE 5000 INDEX
(Exhibit A)
$10,910
Wilshire 5000 Index*
$10,553
Dreyfus
Growth Portfolio
In Dollars
*Source: Wilshire Associates, Incorporated
ACTUAL AGGREGATE TOTAL RETURN
- ------------------------------------------------------------------------------
From Inception (10/18/94) to April 30, 1995............................ 5.53%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in the Dreyfus Growth
Portfolio on 10/18/94 (Inception Date) to a $10,000 investment made in
the Wilshire 5000 Index on that date. For comparative purposes, the
value of the Index on 10/31/94 is used as the beginning value on
10/18/94. All dividends and capital gain distributions are reinvested.
The Portfolio's performance takes into account all applicable fees and
expenses. The Wilshire 5000 Index consists of all publicly traded stocks
in the United States, and is a widely accepted, unmanaged index of
overall stock market performance which does not take into account
charges, fees and other expenses. Further information relating to the
Portfolio's performance, including expense reimbursements, if
applicable, is contained in the Condensed Financial Information section
of the Prospectus and elsewhere in this Report.
<TABLE>
<CAPTION>
DREYFUS ASSET ALLOCATION FUND, INC. GROWTH PORTFOLIO
ACTUAL AGGREGATE TOTAL RETURN
FROM INCEPTION (10/18/94) TO APRIL 30, 1995
5.53%
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
- ---------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS APRIL 30, 1995
COMMON STOCKS--95.4% SHARES VALUE
- -------------------------------------------------------------------------------------- ---------- ----------
<S> <C> <C>
CONSUMER DURABLES--1.3% Mattel................................. 737 $ 17,504
----------
CONSUMER NON-DURABLES--5.7% CPC International...................... 500 29,313
Dean Foods............................. 245 6,982
General Mills.......................... 200 12,200
Heinz (H.J.)........................... 500 21,000
PepsiCo................................ 190 7,909
----------
77,404
----------
CONSUMER SERVICES--4.7% Gaylord Entertainment, Cl. A........... 500 11,812
Mirage Resorts......................... 500 (a) 15,000
Time Warner............................ 1,000 36,625
----------
63,437
----------
ENERGY--13.0% Amerada Hess........................... 640 32,400
Anadarko Petroleum..................... 400 16,450
Arethusa (OFF-Shore)................... 500 (a) 7,125
Burlington Resources................... 500 19,563
Energy Service......................... 675 (a) 11,306
Louisiana Land & Exploration........... 350 12,819
Schlumberger........................... 700 44,013
Texaco................................. 505 34,529
----------
178,205
----------
FINANCE--9.9% American International Group........... 300 32,025
EXEL................................... 775 35,262
Executive Risk......................... 1,025 (a) 18,066
First Interstate Bancorp............... 250 19,219
Transatlantic Holdings................. 480 30,480
----------
135,052
----------
HEALTH CARE--11.4% Abbott Laboratories.................... 200 7,875
American Home Products................. 200 15,425
Baxter International................... 300 10,425
Columbia/HCA Healthcare................ 575 24,150
Lilly (Eli)............................ 425 31,769
Scherer (R.P.)......................... 350 (a) 16,712
Schering-Plough........................ 95 7,161
SmithKline Beecham A.D.R............... 400 15,550
United Healthcare...................... 300 10,875
Watson Pharmaceuticals................. 525 (a) 16,341
----------
156,283
----------
INDUSTRIAL SERVICES--2.5% WMX Technologies....................... 500 13,625
Western Atlas.......................... 300 (a) 13,500
Wheelabrator Technology................ 500 7,250
----------
34,375
----------
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
- ---------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------------- ---------- ----------
PROCESS INDUSTRIES--9.3% AlliedSignal........................... 200 $ 7,925
duPont (EI) deNemours.................. 500 32,937
Grace (W.R.)........................... 800 42,900
Lubrizol............................... 210 7,324
Monsanto............................... 300 24,975
Witco.................................. 380 10,877
----------
126,938
----------
PRODUCER MANUFACTURING--13.2% Authentic Fitness...................... 955 (a) 15,757
CBI Industries......................... 1,100 27,225
Cooper Industries...................... 790 30,810
Deere & Co............................. 300 24,600
Minnesota Mining & Manufacturing....... 265 15,801
Norton McNaughton...................... 435 (a) 7,504
Roper Industries....................... 600 16,200
TRINOVA................................ 1,225 42,569
----------
180,466
----------
RETAIL TRADE--7.6% Consolidated Stores.................... 685 (a) 11,731
Federated Department Stores............ 800 (a) 16,900
Home Shopping Network.................. 1,500 (a) 10,312
May Department Stores.................. 400 14,500
Sears, Roebuck......................... 500 27,125
Talbots................................ 310 9,416
Wal-Mart Stores........................ 600 14,250
----------
104,234
----------
TECHNOLOGY--12.9% Bay Networks........................... 200 (a) 7,275
cisco Systems.......................... 300 (a) 11,963
DSC Communications..................... 410 (a) 15,170
Electronic Arts........................ 650 (a) 14,950
General Instrument..................... 450 (a) 15,356
Intel.................................. 215 22,011
Microsoft.............................. 225 (a) 18,394
Motorola............................... 300 17,062
Novell................................. 700 (a) 15,225
Sierra On-Line......................... 625 (a) 11,797
Texas Instruments...................... 190 20,140
Thermo Electron........................ 140 (a) 7,542
----------
176,885
----------
TRANSPORTATION--3.9% Burlington Northern.................... 500 29,750
OMI.................................... 2,050 (a) 11,787
Overseas Shipholding................... 615 12,300
----------
53,837
----------
TOTAL COMMON STOCKS
(cost $1,197,213).................... $1,304,620
==========
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
- ----------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995
PRINCIPAL
SHORT-TERM INVESTMENTS-8.8% AMOUNT VALUE
- ------------------------------------------------------------------------------------------ ---------- ----------
U.S. TREASURY BILL; 6.37%, 7/6/1995
(cost $120,734)..................................... $122,000 $ 120,701
==========
TOTAL INVESTMENTS (cost $1,317,947).................................................... 104.2% $1,425,321
========== ==========
LIABILITIES, LESS CASH AND RECEIVABLES................................................. (4.2%) $ (56,997)
========== ==========
NET ASSETS ............................................................................ 100.0% $1,368,324
=========== ==========
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $1,317,947)-see statement.................................................. $1,425,321
Cash............................................................................... 17,529
Receivable for investment securities sold.......................................... 19,522
Dividends receivable............................................................... 4,294
Prepaid expenses................................................................... 15,469
Due from The Dreyfus Corporation................................................... 3,659
----------
1,485,794
LIABILITIES:
Due to Distributor................................................................. $ 830
Payable for investment securities purchased........................................ 92,270
Accrued expenses................................................................... 24,370 117,470
--------
NET ASSETS............................................................................. $1,368,324
==========
REPRESENTED BY:
Paid-in capital.................................................................... $1,297,177
Accumulated undistributed investment income-net.................................... 44,262
Accumulated net realized (loss) on investments..................................... (80,489)
Accumulated net unrealized appreciation on investments-Note 3...................... 107,374
----------
NET ASSETS at value applicable to 104,004 shares outstanding
(100 million shares of $.001 par value Common Stock authorized).................... $1,368,324
==========
NET ASSET VALUE, offering and redemption price per share
($1,368,324 / 104,004 shares)...................................................... $13.16
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
STATEMENT OF OPERATIONS
FROM OCTOBER 18, 1994 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends................................................................... $ 55,629
Interest......................................................................... 7,917
--------
TOTAL INCOME................................................................... $ 63,546
EXPENSES:
Management fee-Note 2(a)......................................................... 4,800
Legal fees....................................................................... 26,395
Auditing fees.................................................................... 15,000
Registration fees................................................................ 8,557
Shareholder servicing costs-Note 2(b,c).......................................... 7,391
Custodian fees................................................................... 4,637
Prospectus and shareholders' reports-Note 2(b)................................... 3,733
Directors' fees and expenses-Note 2(d)........................................... 256
Miscellaneous.................................................................... 1,424
--------
72,193
Less-expense reimbursement from Manager due to
undertaking and expense limitation-Note 2(a)................................... 55,445
----------
TOTAL EXPENSES............................................................... 16,748
----------
INVESTMENT INCOME-NET........................................................ 46,798
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3(a)....................................... $ (80,489)
Net unrealized appreciation on investments......................................... 107,374
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.............................. 26,885
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................... $ 73,683
==========
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
STATEMENT OF CHANGES IN NET ASSETS
FROM OCTOBER 18, 1994 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1995
<S> <C>
OPERATIONS:
Investment income-net.............................................................. $ 46,798
Net realized (loss) on investments................................................. (80,489)
Net unrealized appreciation on investments for the period ......................... 107,374
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. 73,683
----------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net.............................................................. (2,536)
----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold...................................................... 1,789,201
Dividends reinvested............................................................... 2,536
Cost of shares redeemed............................................................ (494,560)
----------
Increase In Net Assets From Capital Stock Transactions.......................... 1,297,177
----------
TOTAL INCREASE IN NET ASSETS.................................................. 1,368,324
NET ASSETS:
Beginning of period-Note 1........................................................ --
----------
End of period (including undistributed investment
income-net of $44,262)......................................................... $ 1,368,324
==========
CAPITAL SHARE TRANSACTIONS: SHARES
----------
Shares sold....................................................................... 143,001
Shares issued for dividends reinvested............................................ 207
Shares redeemed................................................................... (39,204)
----------
NET INCREASE IN SHARES OUTSTANDING.............................................. 104,004
----------
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
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 the period October 18, 1994
(commencement of operations) to April 30, 1995. This information has
been derived from the Portfolio's financial statements.
<S> <C>
PER SHARE DATA:
Net asset value, beginning of period.............................................. $12.50
------
INVESTMENT OPERATIONS:
Investment income-net............................................................. .45
Net realized and unrealized gain on investments................................... .24
------
TOTAL FROM INVESTMENT OPERATIONS................................................ .69
DISTRIBUTIONS;
Dividends from investment income-net.............................................. (.03)
------
Net asset value, end of period.................................................... $13.16
======
TOTAL INVESTMENT RETURN............................................................... 5.53%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........................................... 1.40%*
Ratio of net investment income to average net assets.............................. 3.91%*
Decrease reflected in above expense ratio due to
undertaking by the Manager and expense limitation............................... 4.63%*
Portfolio Turnover Rate........................................................... 497.41%*
Net Assets, end of period (000's Omitted)......................................... $1,368
- --------
*Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Asset Allocation Fund, Inc. (the "Fund") began operating
under such name on July 1, 1993 and is currently offering three
portfolios, including the Dreyfus Growth Portfolio (the "Portfolio"),
which was authorized by the Board of Directors on August 25, 1994. The
Portfolio had no operations until October 18, 1994 (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. Premier Mutual Fund Services, Inc. (the "Distributor") acts as
the distributor of the Portfolio's shares, which are sold to the public
without a sales load. 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 administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings,
Inc., the parent company of which is Boston Institutional Group, Inc.
The Dreyfus Corporation ("Manager") serves as the Portfolio's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
As of April 30, 1995, Major Trading Corporation, a subsidiary of
Mellon Bank Investments Corporation, held 80,189 shares of Common Stock
of the Portfolio. Mellon Bank Investments Corporation is a subsidiary of
Mellon Bank.
The Fund accounts separately for the assets, liabilities and
operations of each portfolio. Expenses directly attributable to each
portfolio are charged to that portfolio's operations; expenses which are
applicable to all portfolios are allocated among them.
(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. Investments denominated in
foreign currencies are translated to U.S. dollars at the prevailing
rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss
from securities transactions are recorded on the identified cost basis.
Dividend income is recognized on the ex-dividend date and interest income,
including, where applicable, amortization of discount on investments, is
recognized on the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-
dividend date. Dividends from investment income-net and dividends from
net realized capital gain, if any, are normally declared and paid
annually, but the Portfolio 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 Portfolio
not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Portfolio 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.
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
NOTES TO FINANCIAL STATEMENTS (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 Portfolio's net assets and is payable
monthly. The Agreement provides for an expense reimbursement from the
Manager should the Portfolio's aggregate expenses, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over the Portfolio.
The most stringent state expense limitation applicable to the Portfolio
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 Portfolio's net assets in accordance with
California "blue sky" regulations. However, the Manager had undertaken
from October 18, 1994 to April 30, 1995 to waive receipt of the
management, service and distribution fees. The expense reimbursement,
pursuant to the undertaking and expenses limitation, amounted to $55,445
for the period ended April 30, 1995.
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 Portfolio (a) reimburses the Distributor
for payments to certain Service Agents for distributing shares and (b)
pays the Manager, Dreyfus Service Corporation or any affiliate
(collectively "Dreyfus") for advertising and marketing relating to the
Portfolio and servicing Shareholders accounts, at an annual rate of .50
of 1% of the value of the Portfolio's average daily net assets. Each of
the Distributor and Dreyfus may pay Service Agents (a securities dealer,
financial institution or other industry professional) a fee in respect
of the Portfolio's shares owned by shareholders with whom the Service
Agent has a servicing relationship or for whom the Service Agent is the
dealer or holder of record. Each of the Distributor and Dreyfus
determine the amounts to be paid to Service Agents to which it will make
payments and the basis on which such payments are made. The Plan also
separately provides for the Portfolio to bear the costs of preparing,
printing and distributing certain of the Portfolio'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 Portfolio's average daily net assets for
any full fiscal year. For the period ended April 30, 1995, $4,829 was
charged to the Portfolio pursuant to the Distribution Plan.
(C) Pursuant to the Portfolio's Shareholder Services Plan, the
Portfolio pays the Distributor, at an annual rate of .25 of 1% of the
value of the Portfolio'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 Portfolio 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 period ended April 30, 1995, $1,600 was charged
to the Portfolio pursuant to the Shareholder Services Plan.
(D) Each director who is not an "affiliated person" as defined in
the Act, receives from the Fund an annual fee of $1,000 and an
attendance fee of $250 per meeting. The Chairman of the Board receives
an additional 25% of such compensation.
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment
securities, excluding short-term securities during the period ended
April 30, 1995 amounted to $5,437,450 and $4,160,961, respectively.
In addition, the following table summarizes the Fund's option
transactions for the period ended April 30, 1995:
<TABLE>
<CAPTION>
OPTIONS TERMINATED
-------------------------
NET
NUMBER OF PREMIUMS REALIZED
CONTRACTS RECEIVED COST (LOSS)
----------- -------- -------- --------
<S> <C> <C> <C> <C>
OPTIONS WRITTEN:
Contracts outstanding October 18, 1994............... -- $ --
Contracts written.................................... 5 8,548
----------- --------
5 8,548
----------- --------
Contracts Terminated;
Closed............................................. 5 8,548 $ 8,753 $ (205)
----------- -------- ======== ========
Contracts outstanding April 30, 1995................. -- $ --
=========== ========
</TABLE>
As a writer of call options, the Fund receives a premium at the
outset and then bears the market risk of unfavorable changes in the
price of the financial instrument underlying the option. Generally, the
Fund would incur a gain, to the extent of the premiums, if the price of
the underlying financial instrument decreases between the date the
option is written and the date on which the option is terminated.
Generally, the Fund would realize a loss, if the price of the financial
instrument increases between those dates. At April 30, 1995, there were
no written call options outstanding.
(B) At April 30, 1995, accumulated net unrealized appreciation on
investments was $107,374, consisting of $123,162 gross unrealized
appreciation and $15,788 gross unrealized depreciation.
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).
DREYFUS ASSET ALLOCATION FUND, INC., Dreyfus Growth Portfolio
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS ASSET ALLOCATION FUND, INC., DREYFUS GROWTH PORTFOLIO
We have audited the accompanying statement of assets and
liabilities, including the statement of investments, of Dreyfus Asset
Allocation Fund, Inc., Dreyfus Growth Portfolio (one of the Series
constituting the Dreyfus Asset Allocation Fund, Inc.) as of April 30,
1995, and the related statements of operations and changes in net assets
and financial highlights for the period from October 18, 1994
(commencement of operations) to April 30, 1995. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of April 30, 1995 by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Dreyfus Asset Allocation Fund, Inc., Dreyfus
Growth Portfolio at April 30, 1995, and the results of its operations,
the changes in its net assets and the financial highlights for the
period from October 18, 1994 to April 30, 1995, in conformity with
generally accepted accounting principles.
Ernst & Young LLP
New York, New York
June 2, 1995
Asset Allocation
Fund, Inc.
Dreyfus
Growth Portfolio
Annual Report
April 30, 1995
(Dreyfus Lion Logo)
DREYFUS ASSET ALLOCATION FUND, INC.
DREYFUS GROWTH PORTFOLIO
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
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. 554AR955
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
DREYFUS GROWTH PORTFOLIO OF DREYFUS ASSET ALLOCATION
FUND, INC. WITH THE WILSHIRE 5000 INDEX
EXHIBIT A:
|-----------|--------------------------------------- |
| | | |
| | DREYFUS | |
| PERIOD | GROWTH | |
| | PORTFOLIO | WILSHIRE 5000 INDEX* |
|-----------|--------------- | -------------------- |
| 10/18/94 | 10,000 | 10,000 |
| 10/31/94 | 10,128 | 10,000 |
| 1/31/95 | 9,607 | 9,975 |
| 4/30/95 | 10,553 | 10,910 |
|--------------------------------------------------- |
*Source: Wilshire Associates, Incorporated
