DREYFUS LIFETIME PORTFOLIOS, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that the Growth and Income and the Growth
Portfolios of Dreyfus LifeTime Portfolios, Inc. each outperformed their
respective Customized Blended Indices both for the latest six-month fiscal
period ended March 31, 1996, and for the twelve months since the Fund began
operations in March of last year. The Income Portfolio, managed passively,
underperformed its Customized Blended Index for the six- and twelve-month
periods.
The following summarizes the performance:
<TABLE>
<CAPTION>
Total Return* Customized** Total Return* Customized **
Portfolio: 10/1/95-3/31/96 Blended Index 3/31/95-3/31/96 Blended Index
<S> <C> <C> <C> <C>
GROWTH AND INCOME
Investor Class Shares 8.22% 6.69% 23.71% 19.79%
Class R Shares 8.29% 6.69% 23.97% 19.79%
INCOME
Investor Class Shares 4.12% 4.68% 12.53% 14.21%
Class R Shares 4.27% 4.68% 12.86% 14.21%
GROWTH
Investor Class Shares 11.57% 8.83% 32.28% 24.95%
Class R Shares 11.64% 8.83% 32.54% 24.95%
STANDARD & POOR'S 500
COMPOSITE STOCK PRICE
INDEX 11.70% 32.07%
LEHMAN BROTHERS
GOVERNMENT/CORPORATE
INTERMEDIATE BOND INDEX 2.65% 9.56%
</TABLE>
A Customized Blended Index is utilized by each Portfolio in order to
provide a more accurate performance comparison to the
respective Portfolio's overall asset allocation. For each Portfolio, the
Customized Blended Index reflects the target percentages of stocks, bonds and
money market instruments, weighted by the return of the broad market index
that is representative for the particular asset class, as set forth in the
Fund's Prospectus. Performance for the Standard and Poor's 500 Composite
Stock Price Index has been included as the benchmark for the Growth Portfolio
and the Growth and Income Portfolio. The Lehman Brothers Government/Corporate
Intermediate Bond Index is the benchmark for the Income Portfolio.
The following report describes the general economic situation and the
market environment in which the Fund operated in recent months, and then
explains the policies and market strategies for each Portfolio.
ECONOMIC REVIEW
In April the U.S. economy embarked on its sixth expansion year for this
business cycle. However, the previous year was one of slow economic expansion
with the picture remaining sluggish in the past six months. This kept
inflation moderate, but it also began to erode corporate profitability. The
combination of slow economic growth and low inflation helped pull interest
rates down sharply in 1995. While short-term interest rates are still quite
low, long-term rates have risen substantially since January. Higher long-term
rates reflect a shift in the market's view about the direction of the
economy. Long-term rates that rise above short-term rates indicate a steep
yield curve, which is favorable for sustained economic growth. Hence, we
believe that this business cycle could last still longer.
Although the economy surged 3.6% in the third quarter of 1995, it then
slowed to only 0.5% in the fourth quarter, and remains below trend in early
1996. Sequential events have made the economy volatile in the last six
months: the Boeing and GM strikes, the Federal shutdown and the severe winter
weather. These shocks created caution in key economic sectors. Since the
third quarter, real consumer spending has increased only 1.9%. Capital
spending slowed from its previously strong pace. And weak overseas economies
may now be curbing exports. On the plus side, job growth has been steady,
boosting real disposable income by 3.6% - almost double the rise in consumer
spending. New orders for capital goods are robust. Housing construction and
sales are at high levels. The uncertainty of demand nevertheless kept
producers cautious, leaving inventories quite lean in many economic sectors.
Low inventories relative to demand provide a force for sustained economic
growth and could spur the economy to somewhat faster growth in coming months.
MARKET OVERVIEW
The past six months have witnessed one of the strongest rises in average
stock prices in many years. This was based on the combination of low
interest rates, which continued for most of the period, a very moderate rate
of inflation and strong corporate profits. However, as the economy
strengthened, the price of bonds weakened.
To be sure, the general rise of stock prices did not affect stocks across
the board. Heavily capitalized blue chip companies represented in the Dow
Jones Industrial Average rose more than the general market as measured by the
Standard & Poor's 500 Composite Stock Price Index. However, this was also a
good period for small capitalization stocks that appear in the Russell 2000
Index.
During the Fund's reporting period, equity mutual fund assets have grown
impressively. One reason for this has been the growth of 401(k) and other
retirement plans that give employees the right to choose their own investment
vehicles. But quite apart from retirement plans, individual investors and
large institutions have also been seeking out equities on their own.
As the latest fiscal period for your Fund closed, the rush into equities
was given pause by signs that the pace of economic activity was speeding up,
bringing with it the threat of higher interest rates. To what extent this
will cool down the equity market remains to be seen.
PORTFOLIO OVERVIEW
The LifeTime Portfolios are a series of three portfolios specifically
designed for investors with differing time horizons and risk tolerances.
The Income Portfolio is designed for the investor with a relatively
shorter investment horizon than the other two portfolios. The Portfolio can
invest up to 10% of its assets in cash and has a target allocation of 25% to
stocks and 75% to fixed-income securities. We maintain constant allocations
to each asset class in this Portfolio, and manage each asset class passively,
using an index-based approach.
The Growth and Income Portfolio is designed for the investor with a
longer investment horizon and a higher risk level than the Income Portfolio
investor. A modest portion of assets may be allocated to international
investments. With a target allocation of 50% in each of stocks and bonds
(both domestically and internationally), we can vary the allocation from
baseline weights for the mix of international versus domestic assets and for
the mix of domestic stocks versus domestic bonds. Currently the Portfolio is
at its maximum domestic equity weighting; however, this weighting may be
changed at any time depending on our assessment of relative values in the
market. To make these decisions, Mellon Equity Associates, the Fund's
sub-investment adviser, uses its proprietary asset allocation models.
Domestic stocks are actively managed; passive management strategies are
employed for all other asset classes.
The Growth Portfolio is designed for the investor with a long investment
horizon and the highest risk tolerance. A larger portion of assets, as
compared to the Growth and Income Portfolio, may be allocated
to international investments with stocks dominating the allocation for both
international and domestic assets (there is an 80% target allocation for
stocks). This Portfolio is now at its maximum weighting for domestic equities
within its allocation range, a situation which precludes holding any bonds at
this time; however, this weighting may be changed depending on our assessment
of changing relative values. The allocation can vary significantly from
baseline weights and the asset allocation decisions are also implemented
using Mellon Equity's disciplined asset allocation process. Like the Growth
and Income Portfolio, domestic stocks are actively managed and all other
classes are invested passively.
In constructing each Portfolio, Mellon Equity established an asset
allocation baseline that described target levels of relative weight for the
Portfolio's asset classes. For each Portfolio, Mellon Equity then established
active allocation ranges. All of this is done within the defined Prospectus
guidelines. One deals with relative weighting (compared to the Portfolio
baseline) as between international and domestic assets; the other involves
weightings for domestic assets as between common stock and fixed-income
assets.
To implement the first stage of allocation in the Growth Portfolio and
the Growth and Income Portfolio, we evaluate risk and return characteristics
of capital markets around the world and their correlation across countries,
including expected movements in currency markets.
In the second stage of allocation in domestic markets, we evaluate risk
and return characteristics of the domestic equity and fixed-income markets.
We do this by comparing the valuation of equity and fixed income assets
relative to their current market prices and long-term values in the context
of the current economic environment. Using this analysis, we arrive at
appropriate relative weightings among domestic asset classes.
Mellon Equity maintains a continuous watch on these relative asset class
weights, making changes when required, subject to our assessment of relative
values and investment opportunities.
In selecting securities for each Portfolio, we attempt to approximate the
investment characteristics of designated benchmark indices, while seeking to
exceed the returns of the benchmark.
In its active investment process, Mellon Equity concentrates on
fundamental factors such as relative price/earnings ratios, relative
book-to-price ratios, earnings growth rates and momentum, and consensus
earnings expectations and changes in that consensus. Using this information,
we value and rank stocks based on our belief of expected performance relative
to the asset class benchmark.
The strong performance by the Growth and Income and the Growth Portfolios
was generated by our asset allocation decisions and successful stock
selection in the domestic equity component. The decision to assume maximum
permissible stock positions in both Portfolios was rewarding, as stocks
outperformed bonds over both the last six- and twelve-month periods.
We monitor the relative attractiveness of security classes continuously.
Be assured that if underlying market conditions change, we will not hesitate
to change securities allocations and selections of individual common stocks.
We thank you for your continued confidence in Dreyfus LifeTime
Portfolios. We look forward to a long-term, mutually rewarding relationship.
Sincerely,
[Steven A. Falci signature logo]
Steven A. Falci
Portfolio Manger
May 1, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** For the Growth portfolio, the Customized Blended Index has been
prepared by the Fund for purposes of more accurate comparison to the
Portfolio's overall portfolio composition. We have combined the performance
of unmanaged indices reflecting the baseline percentages set forth in the
Prospectus, but in greater detail than the broader Prospectus Baseline
percentages: Domestic Large Company Stocks - 54.4%; Domestic Small Company
Stocks - 13.6%; Foreign Stocks - 12.0%; Domestic Bonds - 17.0%; and Foreign
Bonds - 3.0%. The Customized Blended Index combines returns from the S&P 500
Index, the Russell 2000 Index, the Morgan Stanley Capital International
Europe, Australasia, Far East (Free) Index ("EAFE" Index); the Lehman
Brothers Government/Corporate Intermediate Bond Index ("Lehman
Government/Corporate Bond Index") and the J.P. Morgan Non-U.S. Government
Bond Index-Hedged ("J.P. Morgan Global Index") and is weighted to the
aforementioned Baseline percentages. The Russell 2000 Index is an unmanaged
index and is composed of the 2,000 smallest companies in the Russell 3000
Index. The Russell 3000 Index is composed of the largest U.S. companies by
market capitalization. The EAFE Index, which is the property of Morgan
Stanley & Co., Incorporated, is an unmanaged index composed of a sample of
companies representative of the market structure of 16 European and Pacific
Basin countries and includes net dividends reinvested. The Lehman
Government/Corporate Index is a widely accepted, unmanaged index of
Government and Corporate bond market performance composed of U.S. Government
Treasury and agency securities, fixed-income securities and nonconvertible
investment grade corporate debt, with an average maturity of 1-10 years. The
J.P. Morgan Global Index is an index Portfolio that measures returns on bonds
from 12 world markets, hedged into U.S. dollars. This index does not include
a U.S. Bonds component. None of the foregoing indices reflect account
charges, fees or other expenses.
For the Growth and Income Portfolio, we have combined the performance of
unmanaged indices reflecting the baseline percentages set forth in the
Prospectus, but in greater detail than the broader Prospectus Baseline
percentages: Domestic Large Company Stocks - 36%; Domestic Small Company
Stocks - 9%; Foreign Stocks - 5%; Domestic Bonds - 45%; and Foreign Bonds -
5.0%. The Customized Blended Index combines returns from the S&P 500 Index,
the Russell 2000 Index, the EAFE Index, the Lehman Government/Corporate Bond
Index and the J.P. Morgan Global Index and is weighted to the aforementioned
Baseline percentages. The indices are described above.
For the Income Portfolio, we have combined the performance of unmanaged
indices reflecting the baseline percentages set forth in the Prospectus, but
in greater detail than the broader Prospectus Baseline percentages: Bonds -
67.5%; Stocks - 22.5%; and Treasury Bills - 10%. The Customized Blended Index
combines returns from the Lehman Government/Corporate Bond Index, the S&P 500
Index (described above) and the 90-day Treasury Bill rate, as it changes from
time to time, and is weighted to the aforementioned Baseline percentages.
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Income Portfolio
STATEMENT OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
PRINCIPAL
BONDS AND NOTES-66.4% AMOUNT VALUE
__________ __________
<S> <C> <C>
U.S. GOVERNMENT SECURITIES:
U.S. Treasury Bonds;
10 3/4%, 8/15/2005................... $ 600,000 $ 780,937
__________
U.S. Treasury Notes:
7 1/2%, 1/31/1997.................... 1,065,000 1,082,639
5 5/8%, 1/31/1998.................... 2,700,000 2,693,250
5 7/8%, 8/15/1998.................... 1,000,000 1,000,625
5 1/8%, 11/30/1998................... 250,000 245,234
8 7/8%, 2/15/1999.................... 225,000 242,262
7 1/8%, 9/30/1999.................... 1,000,000 1,035,156
8 3/4%, 8/15/2000.................... 700,000 771,313
8%, 5/15/2001........................ 1,150,000 1,243,977
7 1/2%, 11/15/2001................... 180,000 191,194
6 1/4%, 2/15/2003.................... 700,000 698,578
7 7/8%, 11/15/2004................... 110,000 120,794
7 1/2%, 2/15/2005.................... 1,400,000 1,503,906
__________
10,828,928
__________
TOTAL BONDS AND NOTES
(cost $11,588,702)................... $11,609,865
===========
SHORT-TERM INVESTMENTS-35.1%
U.S. TREASURY BILLS:
5.01%, 4/11/1996....................... $ 120,000 $ 119,792
4.97%, 4/25/1996....................... 2,984,000 2,972,959
4.88%, 5/2/1996 (a).................... 2,824,000 2,810,699
4.75%, 5/9/1996........................ 109,000 108,381
4.74%, 5/16/1996....................... 121,000 120,204
__________
TOTAL SHORT-TERM INVESTMENTS
(cost $6,134,825).................... $ 6,132,035
==========
TOTAL INVESTMENTS
(cost $17,723,527)...................................................... 101.5% $17,741,900
======= ===========
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (1.5%) $ (261,776)
======= ===========
NET ASSETS.................................................................. 100.0% $17,480,124
======= ===========
NOTE TO STATEMENT OF INVESTMENTS;
(a) Partially held by the custodian in a segregated account as
collateral for open futures positions.
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Income Portfolio (continued)
STATEMENT OF FINANCIAL FUTURES MARCH 31, 1996 (UNAUDITED)
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
FINANCIAL FUTURES PURCHASED; CONTRACTS BY CONTRACTS EXPIRATION AT 3/31/96
_________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
Standard & Poor's 500.................... 12 $3,907,500 June `96 $13,380
==========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth and Income Portfolio
STATEMENT OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS-43.9% SHARES VALUE
________ ________
<S> <C> <C>
BASIC INDUSTRIES-2.4% Armstrong World Industries............. 400 $ 24,850
Dow Chemical........................... 500 43,437
duPont (E.I.) de Nemours & Co.......... 500 41,500
Eastman Chemical....................... 1,200 82,950
Hercules............................... 400 24,800
IMC Global............................. 1,600 58,400
Kimberly-Clark......................... 1,000 74,500
PPG Industries......................... 1,100 53,762
Sealed Air............................. (a) 900 30,713
Union Carbide.......................... 1,200 59,550
_______
494,462
_______
CAPITAL SPENDING-9.1% 3COM................................. (a) 700 27,912
Applied Materials.................... (a) 1,100 38,363
Arrow Electronics.................... (a) 800 37,600
Avnet............................... 1,100 53,075
Bay Networks......................... (a) 800 24,600
Cabletron Systems.................... (a) 700 46,375
Case................................. 2,000 101,750
Caterpillar............................ 1,600 108,800
Ceridian............................. (a) 1,300 55,900
cisco Systems........................ (a) 2,100 97,388
Computer Associates International...... 600 42,975
Digital Equipment.................... (a) 1,300 71,662
General Electric....................... 1,200 93,450
Harnischfeger Industries............... 1,800 69,750
Harsco................................. 100 6,625
HealthCare COMPARE................... (a) 800 40,300
Illinois Tool Works.................... 600 38,775
Intel................................. 1,400 79,625
International Business Machines........ 1,400 155,575
Lockheed Martin........................ 600 45,525
Mallinckrodt Group..................... 1,100 41,388
McDonnell Douglas...................... 400 36,650
Micron Technology...................... 500 15,687
Microsoft............................ (a) 1,800 185,625
National Service Industries............ 300 10,875
Omnicom Group.......................... 600 27,000
Oracle................................. (a) 1,100 51,837
Raytheon............................... 2,300 117,875
Rockwell International................. 900 52,988
Sun Microsystems..................... (a) 800 35,000
Teradyne............................. (a) 1,700 28,475
Textron................................ 600 48,000
_______
1,887,425
_______
DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Porftolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_________ _________
CONSUMER CYCLICAL-5.9% Chrysler.............................. 1,300 $ 80,925
Disney (Walt).......................... 500 31,938
Eckerd............................... (a) 900 43,313
Gap................................... 1,800 99,675
General Motors......................... 2,300 122,475
Goodyear Tire & Rubber................. 600 30,600
King World Productions............... (a) 900 37,238
Leggett & Platt........................ 800 18,300
Magna International, Cl. A............. 400 18,450
Mattel................................. 1,000 27,125
McDonald's............................. 2,000 96,000
Mirage Resorts....................... (a) 1,200 52,650
New York Times, Cl. A.................. 1,300 37,700
NIKE, Cl. B............................ 800 65,000
OfficeMax............................ (a) 1,800 43,650
Philips Electronics, N.V............... 1,300 47,287
Premark International.................. 300 16,087
Reynolds & Reynolds, Cl. A............. 900 36,900
Safeway.............................. (a) 3,200 91,200
Sara Lee............................... 900 29,362
Sears, Roebuck & Co.................... 1,600 78,000
Tommy Hilfiger....................... (a) 800 36,700
Tribune................................ 600 39,525
Viking Office Products............... (a) 400 22,250
Waban................................ (a) 700 18,375
________
1,220,725
________
CONSUMER STAPLES-5.5% Coca-Cola............................. 2,700 223,088
ConAgra................................ 700 28,438
CPC International...................... 1,200 83,250
Eastman Kodak.......................... 700 49,700
Gillette............................... 1,700 87,975
Hershey Foods.......................... 700 52,150
IBP.................................... 2,000 51,250
Johnson & Johnson...................... 2,000 184,500
PepsiCo................................ 1,500 94,875
Philip Morris Cos...................... 1,600 140,400
Procter & Gamble....................... 600 50,850
Ralston-Ralston Purina Group........... 500 33,437
Unilever, N.V. (New York Shares)....... 400 54,300
________
1,134,213
________
DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_________ _________
ENERGY-4.4% Amoco.................................. 1,400 $ 101,150
Coastal................................ 500 19,750
Exxon................................. 2,700 220,388
Kerr-McGee............................ 300 19,050
Mobil................................ 1,500 173,812
Panhandle Eastern...................... 1,500 46,687
Phillips Petroleum..................... 1,400 55,300
Royal Dutch Petroleum (New York Shares) 800 113,000
Smith International.................. (a) 1,000 25,250
Sonat Offshore Drilling................ 800 40,800
Tidewater.............................. 400 15,200
Williams Cos........................... 1,500 75,563
________
905,950
________
HEALTH CARE-4.1% Abbott Laboratories.................... 1,700 69,275
Becton, Dickinson & Co................. 1,200 98,250
Boston Scientific.................... (a) 200 9,200
Bristol-Myers Squibb................... 1,500 128,437
Columbia/HCA Healthcare................ 1,200 69,300
McKesson............................... 300 15,375
Medtronic.............................. 1,000 59,625
Merck & Co............................. 2,700 168,075
Pfizer................................. 1,900 127,300
Schering-Plough........................ 1,700 98,813
________
843,650
________
INTEREST SENSITIVE-6.0% Allstate............................... 2,839 119,593
American National Insurance............ 300 20,250
Bank of Boston......................... 1,000 49,625
Bank of New York....................... 500 25,750
BankAmerica............................ 2,200 170,500
Bear Stearns Cos....................... 2,300 56,925
Chemical Banking....................... 1,500 105,750
CIGNA.................................. 700 79,975
Citicorp............................... 1,000 80,000
Dean Witter, Discover & Co............. 600 34,350
EXEL................................... 1,100 75,900
First Chicago NBD...................... 1,629 67,604
First USA.............................. 1,300 73,612
Loews.................................. 400 30,250
NationsBank............................ 1,800 144,225
Standard Federal Bancorporation........ 400 17,000
DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
__________ __________
INTEREST SENSITIVE (CONTINUED) Student Loan Marketing Association...... 400 $ 30,600
Travelers Group........................ 900 59,400
_______
1,241,309
_______
MINING AND METALS-.7% Aluminum Co. of America................. 500 31,312
ASARCO................................. 1,100 38,500
Nucor.................................. 400 23,650
Phelps Dodge........................... 500 34,313
Reynolds Metals........................ 400 23,650
_______
151,425
_______
TRANSPORTATION-.8% AMR................................... (a) 200 17,900
Conrail................................ 500 35,812
CSX.................................... 800 36,500
Delta Air Lines........................ 300 23,063
Illinois Central, Ser. A............... 1,050 29,925
Litton Industries.................... (a) 400 18,400
_______
161,600
_______
UTILITIES-5.0% Ameritech............................... 2,600 141,700
AT&T.................................... 2,900 177,625
Consolidated Edison.................... 2,200 70,125
DQE..................................... 1,150 33,206
Entergy................................ 2,900 81,200
General Public Utilities............... 2,000 66,000
MCI Communications..................... 3,600 108,900
NYNEX.................................. 700 34,913
Pacific Gas & Electric................. 1,400 31,675
Pinnacle West Capital.................. 800 23,100
SBC Communications..................... 1,600 84,200
Sprint................................. 2,900 110,200
WorldCom............................. (a) 1,400 64,400
_______
1,027,244
________
TOTAL COMMON STOCKS
(cost $7,353,000).................... $ 9,068,003
===========
PRINCIPAL
NOTES AND BONDS-30.9% AMOUNT
______
CONSUMER CYCLICAL-1.3%. Disney (Walt), Ser. B
6.75%, 3/30/2006..................... $270,000 $ 269,028
________
U.S. GOVERNMENT
SECURITIES-29.6% U.S. Treasury Bonds;
10.75%, 8/15/2005.................... 500,000 650,781
________
DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
PRINCIPAL
NOTES AND BONDS (CONTINUED) AMOUNT VALUE
__________ __________
U.S. GOVERNMENT SECURITIES
(CONTINUED): U.S. Treasury Notes:
7.50%, 1/31/1997..................... $ 675,000 $ 686,180
5.63%, 1/31/1998..................... 1,150,000 1,147,125
5.88%, 8/15/1998..................... 600,000 600,375
5.13%, 11/30/1998.................... 350,000 343,328
8.88%, 2/15/1999..................... 300,000 323,016
7.13%, 9/30/1999..................... 500,000 517,578
8.75%, 8/15/2000..................... 300,000 330,562
8%, 5/15/2001........................ 600,000 649,031
7.50%, 11/15/2001.................... 100,000 106,219
6.25%, 2/15/2003..................... 200,000 199,594
5.75%, 8/15/2003..................... 55,000 53,170
7.88%, 11/15/2004.................... 60,000 65,887
7.50%, 2/15/2005..................... 400,000 429,688
________
5,451,753
________
TOTAL NOTES AND BONDS
(cost $6,397,715).................... $ 6,371,562
============
SHORT-TERM INVESTMENTS-23.8%
U.S. TREASURY BILLS: 5.08%, 4/18/1996.................... (b) 670,000 $668,158
4.98%, 4/25/1996..................... (b) 2,962,000 2,951,040
4.87%, 5/2/1996...................... (b) 835,000 831,067
4.77%, 5/9/1996...................... (b) 254,000 252,557
4.74%, 5/16/1996..................... (b) 116,000 115,237
4.98%, 6/27/1996..................... (b) 102,000 100,738
________
TOTAL SHORT-TERM INVESTMENTS
(cost $4,920,866).................... $ 4,918,797
============
TOTAL INVESTMENTS (cost $18,671,581)........................................ 98.6% $20,358,362
======= ===========
CASH AND RECEIVABLES (NET).................................................. 1.4% $ 295,114
======= ===========
NET ASSETS.................................................................. 100.0% $20,653,476
======= ===========
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as
collateral for open futures positions.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC.,
Growth and Income Portfolio (continued)
STATEMENT OF FINANCIAL FUTURES MARCH 31, 1996 (UNAUDITED)
UNREALIZED
MARKET VALUE APPRECIATION/
NUMBER OF COVERED (DEPRECIATION)
FINANCIAL FUTURES PURCHASED: CONTRACTS BY CONTRACTS EXPIRATION AT 3/31/96
__________ _____________ _________ ____________
<S> <C> <C> <C> <C>
CAC 40................................... 1 $ 79,002 June `96 $2,205
Deutsche Akteinindex..................... 1 167,950 June `96 2,640
Financial Times 100...................... 2 282,273 June `96 725
Hang Seng................................ 1 70,620 April `96 (847)
Nikkei 300............................... 13 377,974 June `96 24,641
Russell 2000............................. 15 2,512,500 June `96 114,225
Standard & Poor's 500.................... 3 976,875 June `96 3,345
_________
$146,934
=========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio
STATEMENT OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS-69.2% SHARES VALUE
________ ________
<S> <C> <C>
BASIC INDUSTRIES-3.8% Armstrong World Industries............. 800 $ 49,700
Dow Chemical........................... 1,100 95,563
duPont (E.I.) de Nemours & Co. ........ 1,100 91,300
Eastman Chemical....................... 2,500 172,813
Hercules............................... 800 49,600
IMC Global............................. 3,300 120,450
Kimberly-Clark......................... 2,100 156,450
PPG Industries......................... 2,300 112,412
Sealed Air........................... (a) 1,900 64,837
Union Carbide.......................... 2,600 129,025
________
1,042,150
________
CAPITAL SPENDING- 14.4% 3COM................................. (a) 1,400 55,825
Applied Materials.................... (a) 2,300 80,213
Arrow Electronics.................... (a) 1,700 79,900
Avnet.................................. 2,300 110,975
Bay Networks......................... (a) 1,600 49,200
Cabletron Systems.................... (a) 1,700 112,625
Case................................... 4,200 213,675
Caterpillar............................ 3,300 224,400
Ceridian............................. (a) 2,700 116,100
cisco Systems........................ (a) 4,400 204,050
Computer Associates International...... 1,200 85,950
Digital Equipment.................... (a) 2,600 143,325
General Electric....................... 2,600 202,475
Harnischfeger Industries............... 3,800 147,250
Harsco................................. 300 19,875
HealthCare COMPARE................... (a) 1,700 85,638
Illinois Tool Works.................... 1,200 77,550
International Business Machines........ 2,900 322,263
Intel.................................. 3,100 176,313
Lockheed Martin........................ 1,300 98,637
Mallinckrodt Group..................... 2,300 86,537
McDonnell Douglas...................... 900 82,462
Micron Technology...................... 1,200 37,650
Microsoft............................ (a) 3,700 381,563
National Service Industries............ 700 25,375
Omnicom Group.......................... 1,200 54,000
Oracle....................... (a) 2,300 108,387
Raytheon............................... 4,800 246,000
Rockwell International................. 1,900 111,862
Sun Microsystems..................... (a) 1,600 70,000
Teradyne............................. (a) 3,600 60,300
Textron................................ 1,200 96,000
________
3,966,375
________
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_________ _________
CONSUMER CYCLICAL-9.2% Chrysler............................... 2,500 $ 155,625
Disney (Walt).......................... 1,200 76,650
Eckerd................................. (a) 1,800 86,625
Gap.................................... 3,600 199,350
General Motors......................... 4,900 260,925
Goodyear Tire & Rubber................. 800 40,800
King World Productions............... (a) 1,900 78,613
Leggett & Platt........................ 1,800 41,175
Magna International, Cl. A............. 900 41,513
Mattel................................. 2,200 59,675
McDonald's............................. 4,300 206,400
Mirage Resorts....................... (a) 2,600 114,075
New York Times, Cl. A.................. 2,700 78,300
NIKE, Cl. B............................ 1,700 138,125
OfficeMax............................ (a) 3,800 92,150
Philips Electronics, N.V............... 2,800 101,850
Premark International.................. 700 37,538
Reynolds & Reynolds, Cl. A............. 1,900 77,900
Safeway.............................. (a) 6,700 190,950
Sara Lee............................... 1,900 61,987
Sears, Roebuck & Co.................... 3,400 165,750
Tommy Hilfiger....................... (a) 1,700 77,987
Tribune................................ 1,100 72,462
Viking Office Products............... (a) 800 44,500
Waban................................ (a) 1,300 34,125
________
2,535,050
________
CONSUMER STAPLES-8.6% Coca-Cola............................. 5,600 462,700
ConAgra................................ 1,500 60,938
CPC International...................... 2,600 180,375
Eastman Kodak.......................... 1,400 99,400
Gillette............................... 3,600 186,300
Hershey Foods.......................... 1,400 104,300
IBP.................................... 4,200 107,625
Johnson & Johnson...................... 4,200 387,450
PepsiCo................................ 3,200 202,400
Philip Morris Cos...................... 3,400 298,350
Procter & Gamble....................... 1,200 101,700
Ralston-Ralston Purina Group........... 1,100 73,562
Unilever, N.V. (New York Shares)....... 800 108,600
________
2,373,700
________
ENERGY-6.8% Amoco.................................. 2,900 209,525
Coastal................................ 1,000 39,500
Exxon.................................. 5,800 473,425
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
________ ________
ENERGY (CONTINUED) Kerr-McGee.............................. 600 $ 38,100
Mobil.................................. 3,100 359,213
Panhandle Eastern...................... 3,200 99,600
Phillips Petroleum..................... 3,000 118,500
Royal Dutch Petroleum (New York Shares) 1,600 226,000
Smith International.................. (a) 2,100 53,025
Sonat Offshore Drilling................ 1,600 81,600
Tidewater.............................. 900 34,200
Williams Cos........................... 3,000 151,125
________
1,883,813
________
HEALTH CARE-6.5% Abbott Laboratories.................... 3,700 150,775
Becton, Dickinson & Co................. 2,600 212,875
Boston Scientific...................... (a) 600 27,600
Bristol-Myers Squibb................... 3,200 274,000
Columbia/HCA Healthcare................ 2,500 144,375
McKesson............................... 500 25,625
Medtronic.............................. 2,200 131,175
Merck & Co............................. 5,700 354,825
Pfizer................................. 4,000 268,000
Schering-Plough........................ 3,500 203,438
________
1,792,688
________
INTEREST SENSITIVE-9.6% Allstate............................... 6,000 252,750
American National Insurance............ 700 47,250
Bank of Boston......................... 2,000 99,250
Bank of New York....................... 1,100 56,650
BankAmerica............................ 4,700 364,250
Bear Stearns Cos....................... 4,900 121,275
Chemical Banking....................... 3,300 232,650
CIGNA.................................. 1,500 171,375
Citicorp............................... 2,100 168,000
Dean Witter, Discover & Co............. 1,200 68,700
EXEL................................... 2,300 158,700
First Chicago NBD...................... 3,400 141,100
First USA.............................. 2,800 158,550
Loews.................................. 900 68,063
NationsBank............................ 3,800 304,475
Standard Federal Bancorporation........ 900 38,250
Student Loan Marketing Association..... 900 68,850
Travelers Group........................ 1,900 125,400
________
2,645,538
________
MINING AND METALS-1.2% Aluminum Co. of America................ 1,100 68,887
ASARCO................................. 2,300 80,500
Nucor.................................. 900 53,213
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio (continued)
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
________ ________
MINING AND METALS
(CONTINUED) Phelps Dodge........................... 1,000 $ 68,625
Reynolds Metals........................ 800 47,300
________
318,525
________
TRANSPORTATION-1.3% AMR................................... (a) 500 44,750
Conrail................................ 1,100 78,787
CSX.................................... 1,800 82,125
Delta Air Lines........................ 600 46,125
Illinois Central, Ser. A............... 2,200 62,700
Litton Industries.................... (a) 900 41,400
_______
355,887
_______
UTILITIES-7.8% 360 Communications..................... 1 24
Ameritech.............................. 5,500 299,750
AT&T................................... 6,000 367,500
Consolidated Edison.................... 4,700 149,813
DQE.................................... 2,300 66,412
Entergy................................ 6,200 173,600
General Public Utilities............... 4,200 138,600
MCI Communications..................... 7,600 229,900
NYNEX.................................. 1,400 69,825
Pacific Gas & Electric................. 3,000 67,875
Pinnacle West Capital.................. 1,700 49,087
SBC Communications..................... 3,200 168,400
Sprint................................. 6,000 228,000
WorldCom............................. (a) 3,100 142,600
________
2,151,386
________
TOTAL COMMON STOCKS
(cost $15,562,176)................... $19,065,112
===========
PRINCIPAL
SHORT-TERM INVESTMENT-29.9% AMOUNT
_________
U.S. TREASURY BILLS: 5.02%, 4/11/1996..................... (b) $1,947,000 $1,943,632
5.08%, 4/18/1996..................... (b) 879,000 876,583
4.98%, 4/25/1996..................... (b) 3,365,000 3,352,549
4.87%, 5/2/1996...................... (b) 1,934,000 1,924,891
4.78%, 5/16/1996..................... (b) 125,000 124,177
________
TOTAL SHORT-TERM INVESTMENTS
(cost $8,225,149).................... $ 8,221,832
===========
TOTAL INVESTMENTS (cost $23,787,325)........................................ 99.1% $27,286,944
======= ===========
CASH AND RECEIVABLES (NET).................................................. .9% $ 247,393
======= ===========
NET ASSETS.................................................................. 100.0% $27,534,337
======= ===========
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio (continued)
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Partially held by the custodian in a segregated account as
collateral for open future positions.
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES MARCH 31, 1996 (UNAUDITED)
UNREALIZED
MARKET VALUE APPRECIATION
NUMBER OF COVERED (DEPRECIATION)
FINANCIAL FUTURES PURCHASED: CONTRACTS BY CONTRACTS EXPIRATION AT 3/31/96
______________ _________ _____________ __________ ____________
<S> <C> <C> <C> <C>
CAC 40 Index................................. 3 $ 237,004 June `96 $ 6,615
Deutsche Aktienindex......................... 2 335,900 June `96 5,281
Financial Times 100.......................... 5 705,683 June `96 1,794
Hang Seng.................................... 3 211,861 April `96 (2,799)
Nikkei 300................................... 36 1,046,696 June `96 68,235
Russell 2000................................. 28 4,690,000 June `96 213,220
Standard & Poor's 500........................ 2 651,250 June `96 2,230
_______
$294,576
========
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996 (UNAUDITED)
INCOME GROWTH AND INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
______ ______ ___________
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value
[cost-Note 4(b)]-see statement........................ $17,741,900 $20,358,362 $27,286,944
Cash.................................................... -- 117,675 129,326
Receivable for investment securities sold............... 301,937 215,555 32,082
Dividends and interest receivable....................... 166,939 104,098 29,976
Receivable for futures variation margin................. -- 35,319 95,898
Prepaid expenses........................................ 55,434 75,900 56,028
___________ ___________ ____________
18,266,210 20,906,909 27,630,254
___________ ___________ ____________
LIABILITIES:
Due to The Dreyfus Corporation.......................... 13,243 2,105 7,602
Due to Distributor...................................... 1,796 1,983 2,839
Payable for investment securities purchased............. 703,013 220,236 16,374
Payable for futures variation margin.................... 21,785 -- --
Accrued expenses and other liabilities.................. 46,249 29,109 69,102
___________ ___________ ____________
786,086 253,433 95,917
___________ ___________ ____________
NET ASSETS.................................................. $17,480,124 $20,653,476 $27,534,337
=========== =========== ============
REPRESENTED BY:
Paid-in capital......................................... $16,822,438 $18,074,412 $22,589,135
Accumulated undistributed investment income net......... 216,624 143,974 108,429
Accumulated undistributed net realized gain on investments and
foreign currency transactions......................... 409,309 601,375 1,042,578
Accumulated net unrealized appreciation on investments and
foreign currency transactions [including $13,380, $146,934 and
$294,576 net unrealized appreciation on financial futures for the
Income Portfolio, Growth and Income Portfolio and
Growth Portfolio, respectively]-Note 4(b)............... 31,753 1,833,715 3,794,195
___________ ___________ ____________
NET ASSETS at value......................................... $17,480,124 $20,653,476 $27,534,337
=========== =========== ============
Shares of Common Stock outstanding:
Class R Shares
(50 million shares of $.001 par value shares authorized) 690,310 773,350 907,847
=========== =========== ============
Investor Class Shares
(50 million shares of $.001 par value shares authorized) 651,266 646,540 871,987
=========== =========== ============
NET ASSET VALUE per share:
Class R Shares
($8,999,072 / 690,310 shares)......................... $13.04
=======
($11,254,713 / 773,350 shares)........................ $14.55
========
($14,048,128 / 907,847 shares)........................ $15.47
========
Investor Class Shares
($8,481,052 / 651,266 shares)......................... $13.02
=======
($9,398,763 / 646,540 shares)......................... $14.54
========
($13,486,209 / 871,987 shares)........................ $15.47
========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
INCOME GROWTH AND INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
___________ ___________ __________
<S> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.............................................. $ 538,761 $ 321,389 $194,783
Cash dividends (net of $272 and $655 foreign taxes
withheld at source for the Growth and Income Portfolio
and the Growth Portfolio, respectively)........... -- 87,634 183,332
________ ________ _______
TOTAL INCOME.................................... 538,761 409,023 378,115
________ ________ _______
EXPENSES:
Management fee-Note 3(a).............................. $ 50,991 $ 71,590 $ 95,619
Shareholder servicing costs-Note 3(b)................. 12,533 14,742 19,466
Auditing fees......................................... 11,691 11,688 11,703
Organization expenses................................. 6,550 7,666 6,550
Director's fees and expenses-Note 3(c)................ 3,205 3,789 5,014
Legal fees............................................ 3,092 3,501 11,178
Prospectus and shareholders' reports.................. 2,649 3,642 7,673
Custodian fees........................................ 1,263 8,401 11,259
Registration fees..................................... 1,133 20,277 8,365
Miscellaneous......................................... 1,780 1,892 1,834
________ ________ _______
TOTAL EXPENSES.................................. 94,887 147,188 178,661
Less-reduction in management fee due to
undertakings-Note 3(a)............................ 32,819 63,379 66,498
________ ________ _______
NET EXPENSES.................................... 62,068 83,809 112,163
________ ________ _______
INVESTMENT INCOME-NET........................... 476,693 325,214 265,952
________ ________ _______
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments (including foreign
currency transactions)-Note 4(a)...................... $ 92,196 $ 508,312 $ 926,045
Net realized gain on financial futures-Note 4(a);
Long Transactions..................................... 480,935 142,547 170,739
________ ________ _______
NET REALIZED GAIN..................................... 573,131 650,859 1,096,784
________ ________ _______
Net unrealized appreciation (depreciation) on investments
[including ($147,040), $112,274 and $272,601 net unrealized
appreciation (depreciation) for financial futures for the
Income Portfolio, the Growth and Income Portfolio and the
Growth Portfolio, respectively]....................... (360,834) 527,860 1,452,805
________ ________ __________
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS.............................. 212,297 1,178,719 2,549,589
________ ________ __________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $ 688,990 $1,503,933 $2,815,541
=========== ========== ===========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIO, INC., Income Portfolio
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996
1995* (UNAUDITED)
__________ _______________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 474,272 $ 476,693
Net realized gain on investments........................................ 353,820 573,131
Net unrealized appreciation (depreciation) on investments for the period 392,587 (360,834)
___________ ___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 1,220,679 688,990
___________ ___________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class R shares........................................................ -- (373,549)
Investor Class shares................................................. -- (360,792)
Net realized gain on investments:
Class R shares........................................................ -- (259,074)
Investor Class shares................................................. -- (258,568)
___________ ___________
TOTAL DIVIDENDS................................................... -- (1,251,983)
___________ ___________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class R shares........................................................ 7,508,845 8,851,249
Investor Class shares................................................. 7,504,669 8,332,240
Dividends reinvested:
Class R shares........................................................ -- 632,623
Investor Class shares................................................. -- 619,360
Cost of shares redeemed:
Class R shares........................................................ -- (8,343,898)
Investor Class shares................................................. (4,658) (8,310,992)
___________ ___________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............ 15,008,856 1,780,582
___________ ___________
TOTAL INCREASE IN NET ASSETS.................................... 16,229,535 1,217,589
NET ASSETS:
Beginning of period..................................................... 33,000 16,262,535
___________ ___________
End of period (including undistributed investment income-net:
$474,272 in 1995 and $216,624 in 1996)................................ $16,262,535 $17,480,124
============ ===========
</TABLE>
<TABLE>
<CAPTION>
SHARES
____________________________________________________________________
CLASS R INVESTOR CLASS
__________________________________ _____________________________
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996 SEPTEMBER 30, MARCH 31, 1996
1995* (UNAUDITED) 1995* (UNAUDITED)
_______ _________ ________ _________
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold........................... 600,655 640,664 600,353 601,711
Shares issued for dividends reinvested -- 49,308 -- 48,312
Shares redeemed....................... -- (601,637) (353) (600,077)
_______ _________ ________ _________
NET INCREASE IN
SHARES OUTSTANDING............ 600,655 88,335 600,000 49,946
========== =========== ======== =========
* From March 31, 1995 (commencement of operations) to September 30, 1995.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth and Income Portfolio
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996
1995* (UNAUDITED)
_______ _________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 332,653 $ 325,214
Net realized gain on investments........................................ 545,329 650,859
Net unrealized appreciation on investments for the period............... 1,305,855 527,860
___________ ___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 2,183,837 1,503,933
___________ ___________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class R shares........................................................ -- (272,975)
Investor Class shares................................................. -- (240,918)
Net realized gain on investments:
Class R shares........................................................ -- (308,722)
Investor Class shares................................................. -- (286,091)
___________ ___________
TOTAL DIVIDENDS................................................... -- (1,108,706)
___________ ___________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class R shares........................................................ 8,144,735 10,126,128
Investor Class shares................................................. 7,509,353 8,929,780
Dividends reinvested:
Class R shares........................................................ -- 581,166
Investor Class shares................................................. -- 527,010
Cost of shares redeemed:
Class R shares........................................................ (20,620) (8,918,225)
Investor Class shares................................................. (915) (8,838,000)
___________ ___________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........... 15,632,553 2,407,859
___________ ___________
TOTAL INCREASE IN NET ASSETS.................................... 17,816,390 2,803,086
NET ASSETS:
Beginning of period..................................................... 34,000 17,850,390
___________ ___________
End of period (including undistributed investment income-net:
$332,653 in 1995 and $143,974 in 1996)................................ $17,850,390 $20,653,476
============ ==============
</TABLE>
<TABLE>
<CAPTION>
SHARES
______________________________________________________________________________
CLASS R INVESTOR CLASS
_________________________________ ____________________________________
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996 SEPTEMBER 30, MARCH 31, 1996
1995* (UNAUDITED) 1995* (UNAUDITED)
__________ ____________ _______ ____________
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold........................... 646,375 689,562 600,654 606,320
Shares issued for dividends reinvested -- 42,205 -- 38,272
Shares redeemed....................... (1,438) (604,714) (66) (600,000)
______ _________ ______ __________
NET INCREASE IN
SHARES OUTSTANDING.......... 644,937 127,053 600,588 44,592
======== ========== ======== ==========
* From March 31, 1995 (commencement of operations) to September 30, 1995.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996
1995* (UNAUDITED)
_______ _________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 318,027 $ 265,952
Net realized gain on investments........................................ 1,074,382 1,096,784
Net unrealized appreciation on investments for the period............... 2,341,390 1,452,805
___________ __________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 3,733,799 2,815,541
___________ __________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class R shares........................................................ -- (249,191)
Investor Class shares................................................. -- (226,359)
Net realized gain on investments:
Class R shares........................................................ -- (562,690)
Investor Class shares................................................. -- (565,898)
___________ __________
TOTAL DIVIDENDS................................................... -- (1,604,138)
___________ __________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class R shares........................................................ 10,007,843 13,031,467
Investor Class shares................................................. 10,067,618 12,433,660
Dividends reinvested:
Class R shares........................................................ -- 811,742
Investor Class shares................................................. -- 792,257
Cost of shares redeemed:
Class R shares........................................................ -- (12,306,532)
Investor Class shares................................................. (5,256) (12,276,664)
___________ ___________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............ 20,070,205 2,485,930
___________ ___________
TOTAL INCREASE IN NET ASSETS.................................... 23,804,004 3,697,333
NET ASSETS:
Beginning of period..................................................... 33,000 23,837,004
__________ __________
End of period (including undistributed investment income-net:
$318,027 in 1995 and $108,429 in 1996)................................ $23,837,004 $27,534,337
============= ============
</TABLE>
<TABLE>
<CAPTION>
SHARES
_________________________________________________________________________
CLASS R INVESTOR CLASS
________________________________ _________________________________
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996 SEPTEMBER 30, MARCH 31, 1996
1995* (UNAUDITED) 1995* (UNAUDITED)
_______ _________ _______ ________________
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold........................... 800,540 849,677 804,636 811,044
Shares issued for dividends reinvested -- 57,044 -- 55,676
Shares redeemed....................... -- (800,734) (370) (800,319)
_______ _________ _______ ________________
NET INCREASE IN
SHARES OUTSTANDING............ 800,540 105,987 804,266 66,401
========== ========= ========= =========
* From March 31, 1995 (commencement of operations) to September 30, 1995.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS LIFETIME PORTFOLIOS, INC., Income 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 each period indicated. This
information has been derived from the Portfolios' financial statements.
<TABLE>
<CAPTION>
CLASS R SHARES INVESTOR CLASS SHARES
---------------------------------- -----------------------------------
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996 SEPTEMBER 30, MARCH 31, 1996
PER SHARE DATA: 1995(1) (UNAUDITED) 1995(1) (UNAUDITED)
------- --------- -------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.50 $13.52 $12.50 $13.51
_______ ______ ________ _____
INVESTMENT OPERATIONS:
Investment income-net................. .40 .39 .39 .36
Net realized and unrealized gain
on investments...................... .62 .18 .62 .18
_______ ______ ________ _____
TOTAL FROM INVESTMENT OPERATIONS.... 1.02 .57 1.01 .54
_______ ______ ________ _____
DISTRIBUTIONS:
Dividends from investment income-net.. -- (.62) -- (.60)
Dividends from net realized gain
on investments...................... -- (.43) -- (.43)
_______ ______ ________ _____
TOTAL DISTRIBUTIONS................. -- (1.05) -- (1.03)
_______ ______ ________ _____
Net asset value, end of period........ $13.52 $13.04 $13.51 $13.02
======= ======== ======== =======
TOTAL INVESTMENT RETURN(2)................ 8.24% 4.27% 8.08% 4.12%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(2) .30% .24% .43% .48%
Ratio of net investment income to
average net assets(2)............... 3.08% 2.80% 2.95% 2.66%
Decrease reflected in above expense
ratios due
to undertaking by the Manager(2).... .26% .15% .26% .22%
Portfolio Turnover Rate(2)............ 5.66% 27.77% 5.66% 27.77%
Net Assets, end of period (000's Omitted) $8,141 $8,999 $8,122 $8,481
(1) From March 31, 1995 (commencement of operations) to September 30, 1995.
(2) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS LIFETIME PORTFOLIOS, INC., Growth and Income Portfolio
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 Portfolios' financial statements.
<TABLE>
<CAPTION>
CLASS R SHARES INVESTOR CLASS SHARES
__________________________________ _____________________________________
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996 SEPTEMBER 30, MARCH 31, 1996
PER SHARE DATA: 1995(1) (UNAUDITED) 1995(1) (UNAUDITED)
_______ _________ ________ ___________________
<S> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.50 $14.31 $12.50 $14.29
_____ _____ _____ _____
INVESTMENT OPERATIONS:
Investment income-net................. .27 .25 .27 .24
Net realized and unrealized gain
on investments...................... 1.54 .89 1.52 .89
_____ _____ _____ _____
TOTAL FROM INVESTMENT OPERATIONS.... 1.81 1.14 1.79 1.13
_____ _____ _____ _____
DISTRIBUTIONS:
Dividends from investment income-net.. -- (.42) -- (.40)
Dividends from net realized gain
on investments...................... -- (.48) -- (.48)
_____ _____ _____ _____
TOTAL DISTRIBUTIONS................. -- (.90) -- (.88)
_____ _____ _____ _____
Net asset value, end of period........ $14.31 $14.55 $14.29 $14.54
========= ======== ========== =========
TOTAL INVESTMENT RETURN(2)................ 14.48% 8.29% 14.32% 8.22%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(2) .38% .38% .51% .51%
Ratio of net investment income to
average net assets(2)............... 2.10% 1.76% 1.98% 1.64%
Decrease reflected in above expense ratios due
to undertaking by the Manager(2).... .33% .33% .33% .33%
Portfolio Turnover Rate(2)............ 33.55% 36.37% 33.55% 36.37%
Average commission rate paid.......... -- $.0573 -- $.0573
Net Assets, end of period (000's Omitted) $9,248 $11,254 $8,602 $9,399
(1) From March 31, 1995 (commencement of operations) to September 30, 1995.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS LIFETIME PORTFOLIOS, INC., Growth Portfolio
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 Portfolios' financial statements.
<TABLE>
<CAPTION>
CLASS R SHARES INVESTOR CLASS SHARES
__________________________________ _____________________________________
YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996 SEPTEMBER 30, MARCH 31, 1996
PER SHARE DATA: 1995(1) (UNAUDITED) 1995(1) (UNAUDITED)
_______ _________ ________ ___________________
<S> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.50 $14.84 $12.50 $14.82
_____ _____ _____ _____
INVESTMENT OPERATIONS:
Investment income-net................. .21 .17 .19 .15
Net realized and unrealized gain
on investments...................... 2.13 1.47 2.13 1.48
_____ _____ _____ _____
TOTAL FROM INVESTMENT OPERATIONS.... 2.34 1.64 2.32 1.63
_____ _____ _____ _____
DISTRIBUTIONS:
Dividends from investment income-net.. -- (.31) -- (.28)
Dividends from net realized gain
on investments...................... -- (.70) -- (.70)
_____ _____ _____ _____
TOTAL DISTRIBUTIONS................. -- (1.01) -- (.98)
_____ _____ _____ _____
Net asset value, end of period........ $14.84 $15.47 $14.82 $15.47
======= ======== ======= =======
TOTAL INVESTMENT RETURN(2)................ 18.72% 11.64% 18.56% 11.57%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets(2) .38% .38% .51% .50%
Ratio of net investment income to
average net assets(2)............... 1.51% 1.10% 1.39% .98%
Decrease reflected in above expense ratios
due to undertaking by the Manager(2) .26% .26% .26% .26%
Portfolio Turnover Rate(2)............ 52.86% 35.59% 52.86% 35.59%
Average Commission rate paid.......... -- $.0559 -- $.0559
Net Assets, end of period (000's Omitted) $11,898 $14,048 $11,939 $13,486
(1) From March 31, 1995 (commencement of operations) to September 30, 1995.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS LIFETIME PORTFOLIOS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-GENERAL:
Dreyfus LifeTime Portfolios, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended, ("Act") as a diversified open-end
management investment company and operates as a series company currently
offering three Portfolios: the Income Portfolio, the goal of which is to
maximize current income, the Growth and Income Portfolio, the goal of which
is to maximize total return, consisting of capital appreciation and current
income and the Growth Portfolio, the goal of which is capital appreciation.
The Fund accounts separately for the assets, liabilities and operations of
each series. The Dreyfus Corporation ("Manager") serves as each Portfolio's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
Mellon Equity Associates ("Mellon Equity") serves as each Portfolio's
sub-investment adviser.
As of March 31, 1996, Allomon Corporation, a subsidiary of Mellon Bank
Investments Corporation, which in turn is a subsidiary of Mellon Bank, held
the following shares:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Income Portfolio............... 1,297,310 Growth Portfolio.................... 1,711,876
Growth and Income Portfolio.... 1,277,124
</TABLE>
On February 1, 1996, the Board approved an Agreement and Plan of
Reorganization providing for the transfer of all or
substantially all of the assets and liabilities of Dreyfus Asset Allocation
Fund, Inc., Dreyfus Growth Portfolio and Dreyfus Income Portfolio to the
Fund's Growth Portfolio and Income Portfolio, respectively, in a tax free
exchange for shares of Common Stock of the respective Portfolio at net asset
value and the assumption of stated liabilities (the "Exchange"). The Exchange
is subject to the approval of Dreyfus Asset Allocation Fund, Inc.
shareholders.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. Each Portfolio offers both Investor Class
shares and Class R shares. Investor Class shares are offered to any investor
and Class R shares are currently offered only to institutional investors.
Other differences between the two classes include the services offered to and
the expenses borne by each class.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Each Portfolios' 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.
Most debt securities (excluding short-term investments) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Directors. Debt securities for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other debt securities are carried at fair value as
determined by the Service, based on methods which include consideration of:
yields or prices of securities of comparable quality, coupon, maturity and
type; indications as to values from dealers; and general market conditions.
(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
DREYFUS LIFETIME PORTFOLIOS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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, and
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 at fiscal year end, resulting from changes in
exchange rates. Such gains and losses are included with net realized and
unrealized gain and 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) EXPENSES: Expenses directly attributable to each Portfolio are
charged to that Portfolio's operations; expenses which are applicable to all
series are allocated among them on a pro rata basis.
(E) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are
recorded by each Portfolio on the ex-dividend date. Dividends from investment
income-net and dividends from net realized capital gain, with respect to each
Portfolio, are normally declared and paid annually, but each Portfolio may
make distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that a net realized
capital gain of a Portfolio can be offset by a capital loss carryover, if
any, of that Portfolio, such gain will not be distributed.
(F) 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 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. For
Federal income tax purposes, each Portfolio is treated as a single entity for
the purpose of determining such qualification.
NOTE 3-MANAGEMENT FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH
AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed on the value of each Portfolio's average daily
net assets and is payable monthly at the following annual rates: .60 of 1% of
the Income Portfolio, and .75 of 1% of the Growth and Income Portfolio and
the Growth Portfolio. The Agreement provides that if in any full fiscal year
the aggregate expenses of any Portfolio, exclusive of taxes, brokerage,
interest on borrowings (which, in the view of Stroock & Stroock & Lavan,
counsel to the Fund, also contemplates dividends accrued on securities sold
short) and extraordinary expenses, exceed the expense limitation of any state
having jurisdiction over the Fund, that Portfolio may deduct from payments to
be made to the Manager, or the Manager will bear the amount of such excess to
the extent required by state law. The most stringent state expense limitation
applicable to each Portfolio presently requires reimbursement of expenses in
any full fiscal year that such expenses (exclusive of 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
that Portfolio's net assets in accordance with
DREYFUS LIFETIME PORTFOLIOS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
California "blue sky" regulations. The Manager has undertaken with respect to
the Income Portfolio from October 1, 1995 through September 30, 1996, or
until such time as the net assets of the Portfolio exceed $500 million,
regardless of whether they remain at that level, to reduce to the management
fee paid by, or reimburse such excess expenses of the Portfolio, to the
extent that the Portfolio's aggregate annual expenses (exclusive of certain
expenses as described above) exceed an annual rate of .60 of 1% of the value
of the Portfolio's average daily net assets. With respect to the Growth and
Income Portfolio and the Growth Portfolio, the Manager has undertaken from
October 1, 1995 through September 30, 1996, or until such time as the net
assets of the Portfolios' exceed $500 million, regardless of whether they
remain at that level, to reduce the management fee paid by, or reimburse such
excess expenses of the Portfolio, to the extent that the Portfolio's
aggregate annual expenses (exclusive of certain expenses as described above)
exceed an annual rate of .75 of 1% of the value of the Portfolio's average
daily net assets.
The expense reimbursements, pursuant to the undertakings amounted to the
following for the six months ended March 31, 1996:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Income Portfolio............... $32,819 Growth Portfolio................ $66,498
Growth and Income Portfolio.... 63,379
</TABLE>
The undertakings may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the agreement.
Pursuant to a Sub-Investment Advisory Agreement between the Manager and
Mellon Equity, the Manager has agreed to pay Mellon Equity a monthly
sub-advisory fee for each Portfolio, computed at the following annual rates:
<TABLE>
<CAPTION>
ANNUAL FEE AS A PERCENTAGE OF
TOTAL FUND NET ASSETS AVERAGE DAILY NET ASSETS OF EACH PORTFOLIO
___________ ________________________________________
<S> <C>
0 to $600 million........................................... .35 of 1%
$600 up to $1.2 billion..................................... .25 of 1%
$1.2 up to $1.8 billion..................................... .20 of 1%
In excess of $1.8 billion................................... .15 of 1%
</TABLE>
(B) 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 the Portfolio's Investor Class shares for
servicing shareholder accounts. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. The Distributor
may make payments to Service Agents in respect of these services. The
Distributor determines the amounts to be paid to Service Agents.
During the six months ended March 31, 1996, the following was charged to
each Portfolio pursuant to the Shareholder Services Plan.
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Income Portfolio............... $10,311 Growth Portfolio................ $15,734
Growth and Income Portfolio.... 11,180
</TABLE>
Effective December 1, 1995, each Portfolio compensates Dreyfus Transfer,
Inc., a wholly owned subsidiary of the Manager,
under a transfer agency agreement for providing personnel and facilities to
DREYFUS LIFETIME PORTFOLIOS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
perform transfer agency services for each Portfolio. For the period from
December 1, 1995 through March 31, 1996, each Portfolio compensates the
following:
<TABLE>
<CAPTION>
<S> <C> <S> <C>
Income Portfolio............... $57 Growth Portfolio................ $110
Growth and Income Portfolio.... 86
</TABLE>
(C) 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.
NOTE 4-SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales
of investment securities, excluding short-term securities, for the six months
ended March 31, 1996:
<TABLE>
<CAPTION>
PURCHASES SALES
__________ __________
<S> <C> <C>
Income Portfolio................................................. $3,972,472 $3,071,190
Growth and Income Portfolio...................................... 5,906,063 5,310,058
Growth Portfolio................................................. 6,422,223 6,459,597
</TABLE>
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The
Fund is exposed to market risk as a result of changes in the value of the
underlying financial instruments (see the Statements of Financial Futures).
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. Typically, 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. Contracts open at
March 31, 1996 and their related unrealized market appreciation (deprecation)
are set forth in the Statements of Financial Futures.
(B) The following summarizes accumulated net unrealized appreciation on
investments and financial futures for each Portfolio at March 31, 1996:
<TABLE>
<CAPTION>
GROSS GROSS
APPRECIATION (DEPRECIATION) NET
___________ ______________ ______
<S> <C> <C> <C>
Income Portfolio............................... $ 316,564 $(284,811) $ 31,753
Growth and Income Portfolio.................... 2,001,165 (167,450) 1,833,715
Growth Portfolio............................... 3,991,951 (197,756) 3,794,195
</TABLE>
At March 31, 1996, the cost of investments of each Portfolio for Federal
income tax purposes was substantially the same as
the cost for financial reporting purposes. The cost of investments for each
Portfolio for financial reporting purposes as of March 31, 1996 was as
follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Income Portfolio............ $17,723,527 Growth Portfolio............ $23,787,325
Growth and Income Portfolio. 18,671,581
</TABLE>
DREYFUS LIFETIME PORTFOLIOS, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS LIFETIME PORTFOLIOS, INC.
We have reviewed the accompanying statement of assets and liabilities,
including the statements of investments and financial futures, of Dreyfus
LifeTime Portfolios, Inc., (comprised of the Income Portfolio, the Growth and
Income Portfolio and the Growth Portfolio) as of March 31, 1996, and the
related statements of operations and changes in net assets and financial
highlights for the six month period ended March 31, 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 statements of changes in net assets and financial
highlights from March 31, 1995 (commencement of operations) to September 30,
1995 and in our report dated November 8, 1995, we expressed an unqualified
opinion on such statement of changes in net assets and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
May 6, 1996
[Dreyfus lion "d" logo]
DREYFUS LIFETIME
PORTFOLIOS, INC.
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
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. DRPSA963
[Dreyfus logo]
LifeTime
Portfolios, Inc.
Semi-Annual
Report
March 31, 1996
