Dreyfus
LifeTime
Portfolios, Inc.
ANNUAL REPORT
September 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the portfolio are subject to change at any time based on
market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Performance
8 Portfolio Performance
Statement of Investments
14 Income Portfolio
20 Growth & Income Portfolio
31 Growth Portfolio
Statement of Financial Futures
19 Income Portfolio
30 Growth & Income Portfolio
40 Growth Portfolio
41 Statement of Assets and Liabilities
43 Statement of Operations
Statement of Changes in Net Assets
45 Income Portfolio
47 Growth & Income Portfolio
49 Growth Portfolio
Financial Highlights
51 Income Portfolio
53 Growth & Income Portfolio
55 Growth Portfolio
57 Notes to Financial Statements
65 Report of Independent Auditors
66 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Portfolios
Dreyfus LifeTime
Portfolios, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus LifeTime Portfolios,
Inc., covering the 12-month period from October 1, 1999 through September 30,
2000. Inside, you'll find valuable information about how the fund was managed
during the reporting period, including a discussion with the fund's portfolio
manager, Steven A. Falci.
In the past 12 months, the Standard & Poor's 500 Composite Stock Price Index
("S&P 500 Index") rose more than 13% while the Lehman Brothers Intermediate
Government/Credit Bond Index provided a more modest return of slightly under 7%.
Most stock market gains were realized during the fourth quarter of 1999 when
investors were enthusiastic about technology stocks. Conversely, in the first
nine months of 2000 the investment environment was marked by dramatic price
fluctuations. In the bond market, rising interest rates have taken their toll on
most sectors, with the exception of long-term U.S. Treasury bonds. Additionally,
the moderating effects of the Federal Reserve Board's (the "Fed") interest-rate
hikes during the first half of 2000 helped the Fed to achieve its goal of
slowing the U.S. economy. Other factors such as higher energy prices and a weak
euro also served to slow economic growth.
Since stocks provided returns well above their historical averages during the
second half of the 1990s, some investors may have developed unrealistic
expectations. Recent volatility has reminded investors of both the risks of
investing and the importance of fundamental research and investment selection.
For more information about the economy and financial markets, we encourage you
to visit the Market Commentary section of our website at www.dreyfus.com. Or, to
speak with a Dreyfus customer service representative, call us at 1-800-782-6620.
Thank you for investing in Dreyfus LifeTime Portfolios, Inc.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
October 16, 2000
DISCUSSION OF PERFORMANCE
Steven A. Falci, Portfolio Manager
How did Dreyfus LifeTime Portfolios, Inc. perform relative to its benchmarks?
For the 12-month period ended September 30, 2000, Dreyfus LifeTime Portfolios,
Inc. produced the following total returns:(1)
GROWTH PORTFOLIO CUSTOMIZED BLENDED INDEX(2,3)
--------------------------------------------------------------------------------
Investor Shares 8.85% 13.82%
Restricted Shares 9.13%
GROWTH AND INCOME PORTFOLIO
--------------------------------------------------------------------------------
Investor Shares 7.16% 10.94%
Restricted Shares 7.39%
INCOME PORTFOLIO
--------------------------------------------------------------------------------
Investor Shares 6.35% 7.78%
Restricted Shares 6.74%
In addition, the total returns for the Growth Portfolio and the Growth and
Income Portfolio compare with a 13.27% total return for the Standard & Poor's
500 Composite Stock Price Index ("S&P 500 Index"). The total return for the
Income Portfolio compares with a 6.25% total return for the Lehman Brothers
Intermediate Government/Credit Bond Index.(3)
We attribute the underperformance of the Growth Portfolio and the Growth and
Income Portfolio to our relatively light allocation to stocks during the period
and the underperformance of individual stock selection. While this strategy
helped manage risk, it constrained our performance, especially during the first
six months of the reporting period. The Income Portfolio's returns also
reflected our attempts to manage volatility through diversification.
What are the portfolios' investment approaches?
Dreyfus LifeTime Portfolios, Inc. consists of three separate portfolios offering
a range of investment approaches: Income Portfolio, the most
The Portfolio
DISCUSSION OF PERFORMANCE (CONTINUED)
conservative of the three; Growth and Income Portfolio, a more moderate fund;
and Growth Portfolio, the most aggressive of the three. While the portfolios are
managed using the same basic investment philosophy, each varies according to its
own investment goals and risk tolerance levels.
All three portfolios typically invest in stocks and bonds. However, each
allocates its assets between those two investment classes in a different way.
While the actual makeup of the Growth Portfolio and the Growth and Income
Portfolio will vary over time according to our view of prevailing market
conditions, typical portfolio allocations are as follows: Income Portfolio --
67.5% bonds, 22.5% stocks and 10% cash; Growth and Income Portfolio -- 50% bonds
and 50% stocks; Growth Portfolio -- 20% bonds and 80% stocks. The allowable
minimum equity positions for the Growth Portfolio and Growth and Income
Portfolio are 65% and 35%, respectively.
The allowable maximum equity positions for the Growth Portfolio and the Growth
and Income Portfolio are 100% and 65%, respectively. In addition, we use
proprietary computer models that assess the relative values of stock and bond
prices across different markets using variables such as price-to-earnings
ratios, interest-rate levels and the shape of the yield curve.
What other factors influenced the performance of the portfolios?
Our underweighted equity position had the greatest impact on the portfolios'
performance. During the first half of the reporting period, the portfolios'
underweighted equity position detracted from the overall performance, as
equities rallied in relation to bonds. However, the overvaluation of equities
has since been borne out, as stocks generally underperformed bonds in the second
half of the reporting period.
During the first half of the reporting period, the technology sector captured
the lion's share of the stock market's gains and stock returns were narrowly
driven. Stock selection detracted from performance from November 1999 through
May 2000, but recovered modestly from June through the end of the reporting
period. While we main-
tained sector weightings that are similar to those of the S&P 500 Index, we
sought to own better stocks than the Index within those sectors. However, many
technology companies failed to meet our broad-based criteria of being
attractively priced relative to their earnings growth prospects. As a result, we
were unable to hold many of the highly valued stocks that drove the S&P 500
Index's returns, and our relative performance suffered.
Within the fixed-income component, the portfolios are managed in a structured
manner and closely emulate the characteristics of the benchmark. To achieve this
goal, we maintained neutral characteristics to the benchmark in terms of
interest-rate sensitivity, sector allocation and bond quality distributions
during the period.
What is the current strategy for the portfolios?
For the Income Portfolio, our asset mix is approximately 67.5% bonds, 22.5%
stocks and 10% cash as of September 30, 2000.
Our strategy for the Growth Portfolio and the Growth and Income Portfolio can be
divided into two components: asset allocation and stock selection. As for our
current asset allocation strategy, we have maintained limited exposure to the
stock market because we believe that stocks remain overvalued relative to bonds,
albeit to a lesser degree than they were at the start of the reporting period.
With regard to our stock selection strategy, we believe that our long-term
success depends on our ability to view many different influences on stock
valuations and earnings growth. Through this broad-based approach, we believe we
can uncover stocks that have solid potential going forward.
October 16, 2000
The Portfolios
DISCUSSION OF PERFORMANCE (CONTINUED)
ASSET CLASS EXPOSURE AS OF SEPTEMBER 30, 2000
Growth and Income Portfolio
Fixed Income - 65.52%
Large Cap Domestic Equity - 22.98%
Small Cap Domestic Equity 5.98%
Foreign Equity - 3.54%
Growth Portfolio
Large Cap Domestic Equity - 42.66%
Fixed Income - 32.54%
Foreign Equity - 13.05%
Small Cap Domestic Equity - 10.98%
Short Term and Net Cash - 0.77%
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND
INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, PORTFOLIO SHARES MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
(2) FOR THE GROWTH PORTFOLIO, THE CUSTOMIZED BLENDED INDEX HAS BEEN PREPARED BY
THE PORTFOLIO FOR PURPOSES OF MORE ACCURATE COMPARISON TO THE GROWTH
PORTFOLIO'S OVERALL PORTFOLIO COMPOSITION. WE HAVE COMBINED THE PERFORMANCE
OF UNMANAGED INDICES REFLECTING THE BASELINE PERCENTAGE 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%; DOMESTIC BONDS -- 17%; AND FOREIGN BONDS
-- 3%. THE CUSTOMIZED BLENDED INDEX COMBINES RETURNS FROM THE STANDARD
& POOR'S 500 COMPOSITE STOCK PRICE INDEX, THE RUSSELL 2000 INDEX, THE
MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (FREE)
INDEX -- HEDGED $U.S. (MSCI EAFE), THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CREDIT BOND INDEX ("LEHMAN 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 S&P 500
INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF U.S.STOCK MARKET
PERFORMANCE.THE RUSSELL 2000 INDEX IS AN UNMANAGED INDEX OF SMALL-CAP STOCK
PERFORMANCE AND IS COMPOSED OF THE 2,000 SMALLEST COMPANIES IN THE RUSSELL
3000 INDEX. THE RUSSELL 3000 INDEX IS COMPOSED OF THE 3,000 LARGEST U.S.
COMPANIES BASED ON TOTAL MARKET CAPITALIZATION. THE MSCI EAFE IS AN
UNMANAGED INDEX COMPOSED OF A SAMPLE OF COMPANIES REPRESENTATIVE OF THE
MARKET STRUCTURE OF EUROPEAN AND PACIFIC BASIN COUNTRIES AND INCLUDES NET
DIVIDENDS REINVESTED. THE LEHMAN 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 THAT MEASURES
RETURN ON BONDS FROM 12 WORLD MARKETS, HEDGED INTO U.S. DOLLARS. THIS
INDEX DOES NOT INCLUDE A U.S. BOND 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%. THE CUSTOMIZED BLENDED INDEX COMBINES RETURNS FROM THE S&P 500
INDEX, THE RUSSELL 2000 INDEX, THE MSCI EAFE, THE LEHMAN 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 INDEX, THE S&P 500 INDEX
(BOTH DESCRIBED ABOVE) AND THE 90-DAY TREASURY BILL RATE, AS IT CHANGES
FROM TIME TO TIME, AND IS WEIGHTED TO THE AFOREMENTIONED BASELINE
PERCENTAGES.
(3) SOURCE: LIPPER INC. -- REFLECTS THE REINVESTMENT OF INCOME DIVIDENDS AND,
WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE S&P 500 INDEX AND THE
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX ARE DESCRIBED
ABOVE.
The Portfolios
PORTFOLIO PERFORMANCE
Comparison of change in value of $10,000 investment in the Investor shares and
Restricted shares of Dreyfus Lifetime Portfolios, Inc., Growth and Income
Portfolio with the Standard & Poor's 500 Composite Stock Price Index and a
Customized Blended Index
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) SOURCE: LIPPER INC.
((+)(+)) SOURCE: LIPPER INC., MORGAN STANLEY & CO. INCORPORATED AND J.P. MORGAN
& CO. INCORPORATED
<TABLE>
Average Annual Total Returns AS OF 9/30/00
Inception From
Date 1 Year 5 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR SHARES 3/31/95 7.16% 13.40% 14.84%
RESTRICTED SHARES 3/31/95 7.39% 13.32% 14.80%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE INVESTOR
SHARES AND RESTRICTED SHARES OF THE GROWTH AND INCOME PORTFOLIO ON 3/31/95
(INCEPTION DATE) TO A $10,000 INVESTMENT MADE ON THAT DATE IN THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX ("S&P 500 INDEX") AS WELL AS TO A
CUSTOMIZED BLENDED INDEX REFLECTING THE PORTFOLIO'S ASSET ALLOCATION BASELINE
PERCENTAGES ("BASELINE") WHICH ARE DESCRIBED BELOW AND IN THE FUND'S PROSPECTUS.
THE CUSTOMIZED BLENDED INDEX IS CALCULATED ON A YEAR-TO-YEAR BASIS. ALL
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
THE GROWTH AND INCOME PORTFOLIO ALLOCATES YOUR MONEY AMONG DOMESTIC AND
FOREIGN STOCKS AND BONDS. THE PORTFOLIO'S PERFORMANCE SHOWN IN THE LINE GRAPH
TAKES INTO ACCOUNT ALL APPLICABLE FEES AND EXPENSES. THE S&P 500 INDEX IS A
WIDELY ACCEPTED, UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE. THE S&P 500
INDEX WAS SELECTED BECAUSE (1) DOMESTIC COMMON STOCKS REPRESENT A SIGNIFICANT
PORTION OF THE BASELINE AND (2) THE MAJORITY OF THE STOCK PORTION OF THE
PORTFOLIO IS INVESTED IN STOCKS INCLUDED IN THE S&P 500 INDEX. BECAUSE THE
PORTFOLIO HAS SIGNIFICANT FIXED-INCOME HOLDINGS, THOUGH, IT CAN UNDERPERFORM AN
EQUITY-ONLY INDEX. THE CUSTOMIZED BLENDED INDEX HAS BEEN PREPARED BY THE
PORTFOLIO 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 - 36%; DOMESTIC SMALL COMPANY STOCKS - 9%; FOREIGN STOCKS - 5%; DOMESTIC
BONDS - 45%; FOREIGN BONDS - 5%. 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 INDEX-HEDGED, $U.S. ("EAFE INDEX"),
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX ("LEHMAN 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 3,000 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 EUROPEAN AND
PACIFIC BASIN COUNTRIES AND INCLUDES NET DIVIDENDS REINVESTED. EFFECTIVE AS OF
JULY 1, 2000, THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX
REVISED ITS NAME TO LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX.
THE LEHMAN INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF GOVERNMENT AND CREDIT
BOND MARKET PERFORMANCE COMPOSED OF U.S. GOVERNMENT, TREASURY AND AGENCY
SECURITIES, FIXED-INCOME SECURITIES AND NONCONVERTIBLE INVESTMENT-GRADE CREDIT
DEBT, WITH AN AVERAGE MATURITY OF 1-10 YEARS. THE J.P. MORGAN GLOBAL INDEX IS AN
INDEX 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 TAKE INTO ACCOUNT CHARGES, FEES OR OTHER EXPENSES. FURTHER
INFORMATION RELATING TO THE PORTFOLIO'S PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
The Portfolios
PORTFOLIO PERFORMANCE
Comparison of change in value of $10,000 investment in the Investor shares and
Restricted shares of Dreyfus Lifetime Portfolios, Inc., Income Portfolio with
the Lehman Brothers Intermediate Government/Credit Bond Index and a Customized
Blended Index
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) SOURCE: LIPPER INC.
Average Annual Total Returns AS OF 9/30/00
<TABLE>
Inception From
Date 1 Year 5 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR SHARES 3/31/95 6.35% 8.16% 8.90%
RESTRICTED SHARES 3/31/95 6.74% 8.44% 9.18%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE INVESTOR
SHARES AND RESTRICTED SHARES OF THE INCOME PORTFOLIO ON 3/31/95 (INCEPTION DATE)
TO A $10,000 INVESTMENT MADE ON THAT DATE IN THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CREDIT BOND INDEX ("LEHMAN INDEX") AS WELL AS TO A CUSTOMIZED BLENDED
INDEX REFLECTING THE PORTFOLIO'S ASSET ALLOCATION BASELINE PERCENTAGES
("BASELINE") WHICH ARE DESCRIBED BELOW AND IN THE FUND'S PROSPECTUS. THE
CUSTOMIZED BLENDED INDEX IS CALCULATED ON A YEAR-TO-YEAR BASIS. ALL DIVIDENDS
AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
EFFECTIVE AS OF JULY 1, 2000, THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CORPORATE BOND INDEX REVISED ITS NAME TO LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CREDIT BOND INDEX.
THE INCOME PORTFOLIO ALLOCATES YOUR MONEY AMONG DOMESTIC BONDS AND STOCKS AND
MONEY MARKET INSTRUMENTS. THE PORTFOLIO'S PERFORMANCE SHOWN IN THE LINE GRAPH
TAKES INTO ACCOUNT ALL APPLICABLE FEES AND EXPENSES. THE LEHMAN INDEX DOES NOT
TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. THE LEHMAN INDEX WAS
SELECTED BECAUSE (1) GOVERNMENT AND CORPORATE BONDS REPRESENT THE HIGHEST
BASELINE PERCENTAGE OF THE PORTFOLIO AND (2) THE FIXED-INCOME PORTION OF THE
PORTFOLIO IS INVESTED TO REPRESENT THE LEHMAN INDEX. THE CUSTOMIZED BLENDED
INDEX HAS BEEN PREPARED BY THE PORTFOLIO 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: BONDS - 67.5%; STOCKS - 22.5%; AND TREASURY BILLS - 10%.
THE CUSTOMIZED BLENDED INDEX COMBINES RETURNS FROM THE LEHMAN INDEX, THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX ("S&P 500 INDEX") AND THE
90-DAY TREASURY BILL RATE, AS IT CHANGES FROM TIME TO TIME, AND IS WEIGHTED TO
THE AFOREMENTIONED BASELINE PERCENTAGES. THE LEHMAN INDEX IS A WIDELY ACCEPTED,
UNMANAGED INDEX OF GOVERNMENT AND CREDIT BOND MARKET PERFORMANCE COMPOSED OF
U.S. GOVERNMENT, TREASURY AND AGENCY SECURITIES, FIXED-INCOME SECURITIES AND
NONCONVERTIBLE INVESTMENT-GRADE CREDIT DEBT, WITH AN AVERAGE MATURITY OF 1-10
YEARS. THE S&P 500 INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF U.S. STOCK
MARKET PERFORMANCE. NONE OF THE FOREGOING INDICES TAKE INTO ACCOUNT CHARGES,
FEES OR OTHER EXPENSES. FURTHER INFORMATION RELATING TO THE PORTFOLIO'S
PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN
THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT
The Portfolios
PORTFOLIO PERFORMANCE
Comparison of change in value of $10,000 investment in the Investor shares and
Restricted shares of Dreyfus Lifetime Portfolios, Inc., Growth Portfolio with
the Standard & Poor's 500 Composite Stock Price Index and a Customized Blended
Index
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) SOURCE: LIPPER INC.
((+)(+)) SOURCE: LIPPER INC., MORGAN STANLEY & CO. INCORPORATED AND J.P. MORGAN
& CO. INCORPORATED
Average Annual Total Returns AS OF 9/30/00
<TABLE>
Inception From
Date 1 Year 5 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR SHARES 3/31/95 8.85% 17.33% 19.23%
RESTRICTED SHARES 3/31/95 9.13% 17.61% 19.52%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN EACH OF THE INVESTOR
SHARES AND RESTRICTED SHARES OF THE GROWTH PORTFOLIO ON 3/31/95 (INCEPTION DATE)
TO A $10,000 INVESTMENT MADE ON THAT DATE IN THE STANDARD & POOR'S 500 COMPOSITE
STOCK PRICE INDEX ("S&P 500 INDEX") AS WELL AS TO A CUSTOMIZED BLENDED INDEX
REFLECTING THE PORTFOLIO'S ASSET ALLOCATION BASELINE PERCENTAGES ("BASELINE")
WHICH ARE DESCRIBED BELOW AND IN THE FUND'S PROSPECTUS. THE CUSTOMIZED BLENDED
INDEX IS CALCULATED ON A YEAR-TO-YEAR BASIS. ALL DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ARE REINVESTED.
THE GROWTH PORTFOLIO ALLOCATES YOUR MONEY AMONG DOMESTIC AND FOREIGN STOCKS AND
BONDS. THE PORTFOLIO'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT
ALL APPLICABLE FEES AND EXPENSES. THE S&P 500 INDEX IS A WIDELY ACCEPTED,
UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE. THE S&P 500 INDEX WAS SELECTED
BECAUSE (1) DOMESTIC COMMON STOCKS REPRESENT THE HIGHEST BASELINE PERCENTAGE OF
THE PORTFOLIO'S ASSETS AND (2) THE MAJORITY OF THE STOCK PORTION OF THE
PORTFOLIO IS INVESTED IN STOCKS INCLUDED IN THE S&P 500 INDEX. THE CUSTOMIZED
BLENDED INDEX HAS BEEN PREPARED BY THE PORTFOLIO 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 INDEX-HEDGED, $U.S. ("EAFE INDEX"), THE LEHMAN
BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX ("LEHMAN INDEX") AND THE J.P.
MORGAN NON-U.S. GOVERNMENT BOND INDEX-HEDGED ("J.P. MORGAN GLOBAL INDEX") AND IS
WEIGHTED TO THE AFOREMENTIONED BASELINE PERCENTAGES. THE RUSSELL 2000 INDEX IS
AN UNMANAGED INDEX AND IS COMPOSED OF THE 2,000 SMALLEST COMPANIES IN THE
RUSSELL 3000 INDEX. THE RUSSELL 3000 INDEX IS COMPOSED OF 3,000 OF THE LARGEST
U.S. COMPANIES BY MARKET CAPITALIZATION. THE EAFE INDEX, WHICH IS THE PROPERTY
OF MORGAN STANLEY & CO. INCORPORATED, IS AN UNMANAGED INDEX COMPOSED OF A SAMPLE
OF COMPANIES REPRESENTATIVE OF THE MARKET STRUCTURE OF EUROPEAN AND PACIFIC
BASIN COUNTRIES AND INCLUDES NET DIVIDENDS REINVESTED. EFFECTIVE AS OF JULY 1,
2000, THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX REVISED
ITS NAME TO LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT BOND INDEX. THE
LEHMAN INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF GOVERNMENT AND CREDIT BOND
MARKET PERFORMANCE COMPOSED OF U.S. GOVERNMENT, TREASURY AND AGENCY SECURITIES,
FIXED-INCOME SECURITIES AND NONCONVERTIBLE INVESTMENT-GRADE CREDIT DEBT, WITH AN
AVERAGE MATURITY OF 1-10 YEARS. THE J.P. MORGAN GLOBAL INDEX IS AN INDEX THAT
MEASURES RETURNS ON BONDS FROM 12 WORLD MARKETS, HEDGED INTO U.S. DOLLARS. THIS
INDEX DOES NOT INCLUDE A U.S. BONDS COMPONENT. NONE OF THE FOREGOING INDICES
TAKE INTO ACCOUNT CHARGES, FEES OR OTHER EXPENSES. FURTHER INFORMATION RELATING
TO THE PORTFOLIO'S PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE,
IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE
IN THIS REPORT.
The Portfolios
STATEMENT OF INVESTMENTS
September 30, 2000
<TABLE>
STATEMENT OF INVESTMENTS
INCOME PORTFOLIO
Principal
BONDS AND NOTES--65.7% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL--13.8%
AMVESCAP PLC, Gtd. Notes,
6.60%, 2005 200,000 192,133
American Express Credit Account Master Trust,
Asset Backed Ctfs., Ser. 1997-1, Cl. A,
6.40%, 2005 1,000,000 996,715
Atlantic Richfield, Notes,
5.55%, 2003 500,000 489,434
Australia & New Zealand Banking Group, Sub. Notes,
7.55%, 2006 150,000 152,357
Bank One, Sub. Notes,
6%, 2009 300,000 273,654
Bank of America, Sub. Notes:
7.875%, 2002 200,000 203,805
7.80%, 2010 250,000 257,730
CIT Group, Sr. Notes,
6.15%, 2002 200,000 196,802
Deutsche Telekom, Bonds,
8%, 2010 200,000 205,614
Diageo Capital PLC, Gtd. Notes,
7.25%, 2009 185,000 183,203
Fairfax Financial Holdings, Notes,
7.375%, 2006 150,000 132,370
Fleet Boston, Notes,
7.375%, 2009 135,000 133,547
Ford Motor Credit, Sr. Notes,
5.75%, 2004 800,000 763,727
General Motors Acceptance Corp., Notes,
5.63%, 2003 800,000 778,915
HSBC Holding PLC, Sub. Notes,
7.50%, 2009 100,000 99,803
Hellenic Republic, Notes,
6.95%, 2008 150,000 147,996
Household Finance, Sr. Unsub. Notes,
5.875%, 2009 500,000 449,719
INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL (CONTINUED)
Inter-American Development Bank,
Bonds,
6.125%, 2002 300,000 298,102
Sr. Unsub. Notes,
6.50%, 2004 200,000 199,876
Kingdom of Spain, Notes,
7%, 2005 150,000 151,865
Lehman Brothers, Sr. Sub. Notes,
6.625%, 2008 100,000 94,528
MBNA America Bank, Sr. Notes,
7.75%, 2005 250,000 252,197
Malaysia, Bonds,
8.75%, 2009 150,000 157,818
Merrill Lynch, Notes,
6%, 2009 500,000 458,617
Norwest, Sr. Notes,
6.75%, 2006 400,000 395,049
Ontario (Province Of), Bonds,
7.625%, 2004 250,000 257,881
Republic of Italy, Deb.,
6%, 2003 250,000 246,333
Republic of Korea, Unsub. Notes,
8.875%, 2008 200,000 210,000
Salomon Smith Barney Holdings, Notes,
6.25%, 2003 250,000 245,918
Sanwa Finance Aruba, Gtd. Notes,
8.35%, 2009 100,000 99,856
Sumitomo Bank International Finance, Notes,
8.50%, 2009 150,000 153,348
Transamerica Financial, Notes,
7.25%, 2002 300,000 300,684
US Bank, Notes,
5.70%, 2008 300,000 268,972
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL (CONTINUED)
United Mexican States, Notes,
9.875%, 2010 150,000 159,825
Wells Fargo, Notes,
6.50%, 2002 275,000 273,649
Westpac Banking, Sub. Deb.,
7.875%, 2002 400,000 407,685
10,289,727
INDUSTRIAL--5.6%
Carter Holt Harvey, Sr. Notes,
8.875%, 2004 200,000 208,689
Comcast Cable Communications, Notes,
6.20%, 2008 250,000 231,337
DaimlerChrysler, Gtd. Notes,
8%, 2010 150,000 154,848
duPont(EI)deNemours, Notes,
6.50%, 2002 500,000 498,978
Electronic Data Systems, Notes,
7.125%, 2009 100,000 99,000
Federated Department Stores, Sr. Notes,
8.125%, 2002 300,000 302,509
Hertz, Sr. Notes,
8.25%, 2005 200,000 206,063
Hewlett-Packard, Notes,
7.15%, 2005 200,000 203,023
Marconi, Notes,
7.75%, 2010 100,000 99,115
Monsanto, Notes,
5.375%, 2001 500,000 (a) 489,086
Nordstrom, Sr. Notes,
5.625%, 2009 200,000 170,658
Norfolk Southern, Sr. Notes,
6.20%, 2009 250,000 228,416
Petro Geo-Services, Sr. Notes,
6.625%, 2008 180,000 166,501
Phillips Petroleum, Notes,
8.75%, 2010 135,000 147,351
Safeway, Notes,
7.50%, 2009 200,000 196,750
INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL (CONTINUED)
Time Warner, Notes,
7.75%, 2005 250,000 255,715
Viacom, Sr. Notes,
7.75%, 2005 175,000 179,423
Wal-Mart Stores, Sr. Notes,
6.875%, 2009 300,000 296,985
4,134,447
UTILITIES--5.1%
AT&T Canada, Sr. Notes,
7.65%, 2006 150,000 150,614
MCI Worldcom, Sr. Notes,
6.40%, 2005 500,000 484,884
National Rural Utilities Cooperative Finance,
Collateral Trust,
5.50%, 2005 500,000 472,475
New Jersey Bell Telephone, Deb.,
5.875%, 2006 300,000 278,745
Niagara Mohawk Power, First Mortgage,
7.75%, 2006 200,000 204,221
Philadelphia Electric, First Refunding Mortgage,
6.625%, 2003 500,000 493,906
Sempra Energy, Notes
7.95%, 2010 150,000 149,860
Southern New England Telecommunications, Notes,
6.50%, 2002 1,000,000 996,127
Sprint Capital, Gtd. Notes,
5.70%, 2003 300,000 289,024
Telefonica Europe, Gtd. Notes,
7.75%, 2010 145,000 146,132
Vodafone Group, Unsub. Notes,
7.75%, 2010 135,000 (a) 137,821
3,803,809
U.S. GOVERNMENT & AGENCIES--41.2%
Federal Home Loan Bank, Bonds,
Ser. 121, 5.25%, 4/25/2002 1,830,000 1,797,604
Federal Home Loan Bank, Notes,
Ser. 114, 5.125%, 2/26/2002 1,000,000 982,500
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES (CONTINUED)
Federal Home Loan Mortgage Corp., Notes:
5.50%, 5/15/2002 500,000 492,725
5.75%, 4/15/2008 500,000 471,601
Federal National Mortgage Association:
5.25%, 1/15/2003 1,400,000 1,363,972
5.125%, 2/13/2004 1,500,000 1,442,435
5.75%, 6/15/2005 500,000 484,366
5.25%, 1/15/2009 2,505,000 2,265,823
U.S. Treasury Bonds:
11.625%, 11/15/2004 1,750,000 2,108,750
7.625%, 2/15/2007 500,000 508,590
U.S. Treasury Notes:
7.875%, 8/15/2001 805,000 816,069
7.50%, 11/15/2001 1,810,000 1,834,308
6.375%, 8/15/2002 2,370,000 2,384,812
5.75%, 11/30/2002 600,000 597,186
5.375%, 6/30/2003 300,000 295,779
5.75%, 8/15/2003 2,425,000 2,412,875
7.25%, 8/15/2004 1,770,000 1,851,296
5.875%, 11/15/2004 155,000 154,902
7.875%, 11/15/2004 1,910,000 2,044,292
6.50%, 8/15/2005 1,000,000 1,025,620
6.875%, 5/15/2006 160,000 167,250
7%, 7/15/2006 1,085,000 1,141,279
6.625%, 5/15/2007 2,025,000 2,099,662
4.75%, 11/15/2008 400,000 370,248
6%, 8/15/2009 1,550,000 1,556,773
30,670,717
TOTAL BONDS AND NOTES
(cost $49,310,387) 48,898,700
INCOME PORTFOLIO (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--34.3% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--13.1%
Greenwich Capital Markets,
Repurchase Agreement, 6.50%
dated 9/29/2000 to be repurchased
at $9,735,270 on 10/2/2000,
collateralized by $9,980,000
Federal Home Loan Bank Bonds,
4.985% due 12/21/2001, value $9,792,875 9,730,000 9,730,000
U.S. TREASURY BILLS--21.2%
5.97%, 11/24/2000 15,000,000 14,868,750
5.985%, 12/14/2000 1,000,000 (b) 987,500
15,856,250
TOTAL SHORT-TERM INVESTMENTS
(cost $25,583,537) 25,586,250
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $74,893,924) 100.0% 74,484,950
CASH AND RECEIVABLES (NET) .0% 5,996
NET ASSETS 100.0% 74,490,946
(a) SECURITIES EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION, NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER 30,
2000, THESE SECURITIES AMOUNTED TO $626,907 OR APPROXIMATELY .8% OF NET
ASSETS.
(b) HELD BY BROKER IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN FINANCIAL
FUTURES POSITIONS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
STATEMENT OF FINANCIAL FUTURES
September 30, 2000
Market Value Unrealized
Covered (Depreciation)
Contracts by Contracts ($) Expiration at 9/30/00 ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL FUTURES PURCHASED
Standard & Poor's 500 44 15,990,700 December 2000 (830,640)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
<TABLE>
STATEMENT OF INVESTMENTS
September 30, 2000
GROWTH AND INCOME PORTFOLIO
COMMON STOCKS--23.8% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICAL--1.7%
Bed Bath & Beyond 12,100 (a) 295,127
Best Buy 3,000 (a) 190,875
Delphi Automotive Systems 12,800 193,600
Delta Air Lines 4,800 213,000
General Motors 9,300 604,500
Home Depot 10,000 530,625
Limited 10,300 227,243
RadioShack 3,600 232,650
Safeway 6,300 (a) 294,131
Sears, Roebuck & Co. 16,200 525,204
Southwest Airlines 8,300 201,275
Tiffany & Co. 5,200 200,525
Wal-Mart Stores 27,100 1,304,188
5,012,943
CONSUMER STAPLES--1.2%
Avon Products 7,600 310,650
Coca-Cola 6,000 330,750
Colgate-Palmolive 6,500 306,800
ConAgra Foods 12,500 250,781
Estee Lauder, Cl. A 4,400 161,150
PepsiCo 17,400 800,400
Procter & Gamble 3,900 261,300
Ralston-Purina Group 12,900 305,569
SYSCO 7,500 347,344
Sara Lee 14,200 288,437
3,363,181
ENERGY--1.6%
BJ Services 4,700 (a) 287,288
Conoco, Cl. B. 8,300 223,581
Exxon Mobil 21,200 1,889,450
Kerr-McGee 3,400 225,250
KeySpan 6,000 240,750
Noble Drilling 3,800 (a) 190,950
Occidental Petroleum 16,000 349,000
Royal Dutch Petroleum, ADR 15,100 905,056
Sunoco 6,300 169,706
GROWTH AND INCOME PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ENERGY (CONTINUED)
USX-Marathon Group 8,900 252,538
4,733,569
HEALTH CARE--2.7%
Amgen 2,900 (a) 202,501
Andrx Group 3,200 (a) 298,800
Bristol-Myers Squibb 7,900 451,288
Cardinal Health 4,900 432,119
Johnson & Johnson 12,700 1,193,006
Lilly (Eli) & Co. 3,300 267,713
Merck & Co. 18,800 1,399,425
Pfizer 42,300 1,900,856
Pharmacia 6,900 415,294
Schering-Plough 15,300 711,450
Waters 2,600 (a) 231,400
Wellpoint Health Networks 2,200 (a) 211,200
7,715,052
INTEREST SENSITIVE--4.9%
Ambac Financial Group 4,100 300,325
American Express 14,200 862,650
American International Group 13,800 1,320,488
Bank of America 9,100 476,612
CIGNA 4,500 469,800
Citigroup 34,700 1,875,969
FleetBoston Financial 16,900 659,100
General Electric 55,900 3,224,731
MBNA 18,100 696,850
MGIC Investment 4,200 256,725
Marsh & McLennan Cos. 4,500 597,375
Merrill Lynch & Co. 9,000 594,000
Morgan (JP) & Co. 3,600 588,150
Morgan Stanley Dean Witter & Co. 9,400 859,513
St. Paul Cos. 7,400 364,912
UnitedHealth Group 3,200 316,000
Wells Fargo 13,500 620,156
14,083,356
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
GROWTH AND INCOME PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INTERNET RELATED--.4%
America Online 9,800 (a) 526,750
Ariba 800 (a) 114,612
Juniper Networks 1,400 (a) 306,513
VeriSign 900 (a) 182,306
1,130,181
PRODUCER GOODS & SERVICES--1.5%
Air Products & Chemicals 6,100 219,600
Boeing 8,600 541,800
Canadian Pacific 7,100 184,600
Deere & Co. 7,400 246,050
Eastman Chemical 4,100 151,444
Emerson Electric 6,200 415,400
FedEx 5,900 (a) 261,606
Kimberly-Clark 6,700 373,944
Minnesota Mining & Manufacturing 4,500 410,063
Tyco International 18,000 933,750
Union Carbide 3,000 113,250
United Parcel Service, Cl. B 2,700 152,212
United Technologies 3,300 228,525
4,232,244
SERVICES--1.3%
Automatic Data Processing 8,300 555,063
Clear Channel Communications 2,700 (a) 152,550
Comcast, Cl. A 8,700 (a) 356,156
Disney (Walt) 22,800 872,100
Fox Entertainment Group, Cl. A 14,500 (a) 384,250
Infinity Broadcasting, Cl. A 5,600 (a) 184,800
Paychex 5,100 267,750
SunGuard Data Systems 7,000 (a) 299,687
United States Cellular 3,300 (a) 231,000
Viacom, Cl. B 4,600 (a) 269,100
3,572,456
TECHNOLOGY--6.7%
ADC Telecommunications 5,100 (a) 137,142
Adobe Systems 2,100 326,025
GROWTH AND INCOME PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
Altera 6,000 (a) 286,500
Analog Devices 2,800 (a) 231,175
Applied Materials 2,200 (a) 130,487
Brocade Communications Systems 1,100 (a) 259,600
Broadcom, Cl. A 1,600 (a) 390,000
CIENA 1,500 (a) 184,219
Cisco Systems 41,600 (a) 2,298,400
Comverse Technology 2,600 (a) 280,800
Corning 2,200 653,400
Cybear Group 461 (a) 606
Dell Computer 15,900 (a) 489,919
EMC 14,100 (a) 1,397,663
Hewlett-Packard 7,000 679,000
Intel 31,100 1,292,594
International Business Machines 2,800 315,000
JDS Uniphase 2,300 (a) 217,781
KLA-Tencor 6,300 (a) 259,481
Micron Technology 6,400 (a) 294,400
Microsoft 25,400 (a) 1,530,350
NVIDIA 2,900 (a) 237,438
National Semiconductor 4,900 (a) 197,225
Network Appliance 3,800 (a) 484,025
Nortel Networks 20,800 1,238,900
Oracle 20,900 (a) 1,645,875
PMC-Sierra 1,000 (a) 215,250
QLogic 2,300 (a) 202,400
Rational Software 2,700 (a) 187,312
Redback Networks 1,100 (a) 180,331
SDL 400 (a) 123,200
Sanmina 2,600 (a) 243,425
Siebel Systems 4,600 (a) 512,038
Solectron 6,000 (a) 276,750
Sun Microsystems 7,000 (a) 817,250
Teradyne 4,300 (a) 150,500
TIBCO Software 1,600 (a) 135,100
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
GROWTH AND INCOME PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
VERITAS Software 3,100 (a) 440,200
Vishay Intertechnology 5,500 (a) 169,125
19,110,886
UTILITIES--1.8%
AT&T 13,000 381,875
Ameren 6,100 255,438
BellSouth 22,200 893,550
FPL Group 3,800 249,850
PG&E 7,600 183,825
Pinnacle West Capital 5,000 254,375
Qwest Communications 12,100 (a) 581,556
SBC Communications 29,200 1,460,000
Sempra Energy 9,300 193,556
TXU 5,200 206,050
Williams Communications Group 4,900 98,000
WorldCom 15,600 (a) 473,850
5,231,925
TOTAL COMMON STOCKS
(cost $54,048,023) 68,185,793
------------------------------------------------------------------------------------------------------------------------------------
Principal
BONDS AND NOTES--65.6% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--16.3%
American Express Credit Account Master Trust,
Asset Backed Ctfs., Ser. 1997-1, Cl. A,
6.40%, 2005 3,000,000 2,990,145
American General, Notes,
7.75%, 2005 500,000 510,113
Associates N.A., Sr. Notes:
7.50%, 2002 550,000 555,435
5.75%, 2003 2,100,000 2,035,045
Atlantic Richfield, Notes,
5.55%, 2003 3,500,000 3,426,035
Banco Santander Central Hispano Issuances,
Gtd. Notes,
7.625%, 2009 750,000 750,077
Bank of America, Sub. Notes,
7.80%, 2010 1,300,000 1,340,198
GROWTH AND INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL (CONTINUED)
CIT Group, Sr. Notes,
7.125%, 2004 1,700,000 1,696,967
Citigroup, Sr. Notes,
5.80%, 2004 3,000,000 2,917,074
Ford Motor Credit, Notes,
7.50%, 2005 5,500,000 5,534,711
Frank Russell, Notes,
5.625%, 2009 750,000 (b) 670,419
General Electric Capital, Notes,
7.50%, 2003 3,500,000 3,571,614
General Motors Acceptance Corp.,
Medium-Term Notes,
5.63%, 2003 1,500,000 1,460,466
Hellenic Republic, Notes,
6.95%, 2008 665,000 656,116
Household Finance, Notes,
8%, 2010 550,000 567,806
International Lease Finance, Notes,
5.625%, 2002 500,000 491,618
Kingdom of Spain, Notes,
7%, 2005 1,000,000 1,012,433
Lehman Brothers Holdings, Notes,
7.50%, 2006 2,000,000 1,995,796
MBNA America Bank, Sr. Notes,
7.75%, 2005 1,000,000 1,008,787
Merrill Lynch & Co., Notes,
6%, 2009 1,000,000 917,235
Norwest, Sr. Notes,
6.75%, 2006 1,500,000 1,481,435
Ontario (Province of), Bonds,
7.75%, 2002 2,000,000 2,034,742
Ontario (Province of), Sr. Unsub. Notes,
7.375%, 2003 5,000,000 5,078,750
Republic of Korea, Unsub. Notes,
8.875%, 2008 700,000 735,000
TXU Eastern Funding Co., Gtd. Notes,
6.75%, 2009 600,000 543,621
Textron Financial, Notes,
7.125%, 2004 2,000,000 2,011,852
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
GROWTH AND INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL (CONTINUED)
United Mexican States, Notes,
9.875%, 2010 600,000 639,300
46,632,790
INDUSTRIAL--7.2%
BP Amoco, Notes,
6.25%, 2004 2,000,000 1,982,920
Compaq Computer, Notes,
7.45%, 2002 1,500,000 1,506,482
Conoco, Sr. Notes,
6.35%, 2009 700,000 664,581
DaimlerChrysler, Gtd. Notes,
8%, 2010 1,500,000 1,548,483
Delphi Auto Systems, Notes,
6.125%, 2004 1,000,000 955,145
duPont(EI)deNemours, Notes,
6.50%, 2002 3,000,000 2,993,865
Kroger, Gtd. Notes,
8.05%, 2010 575,000 580,552
Lockheed Martin, Gtd. Notes,
7.45%, 2004 825,000 826,977
Marconi, Gtd. Notes,
7.75%, 2010 400,000 396,461
Monsanto, Notes,
5.375%, 2001 1,500,000 1,467,260
PPG Industries, Notes,
6.75%, 2004 3,000,000 2,991,654
Phillips Petroleum, Notes,
8.75%, 2010 575,000 627,608
USX, Notes,
7.20%, 2004 1,350,000 1,345,158
Viacom, Gtd. Notes,
7.70%, 2010 550,000 562,121
Wal-Mart Stores, Sr. Notes,
6.875%, 2009 2,100,000 2,078,895
20,528,162
TRANSPORTATION--.2%
Norfolk Southern, Sr. Notes,
8.625%, 2010 575,000 614,906
GROWTH AND INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES--4.0%
AT&T, Notes,
5.625%, 2004 3,000,000 2,868,873
Dominion Resources, Sr. Notes,
8.125%, 2010 550,000 569,382
Niagara Mohawk Power, Sr. Notes,
7.75%, 2008 900,000 906,683
Peco Energy Transition Trust, Notes,
Ser. 1999-A, Cl. A2,
5.63%, 2005 500,000 486,942
Philadelphia Electric, First Mortgage,
6.625%, 2003 2,000,000 1,975,622
Public Service Electric and Gas, First Mortgage,
8.875%, 2003 500,000 522,669
Sprint Capital, Gtd. Notes,
5.70%, 2003 1,350,000 1,300,608
Telefonica Europe B.V., Gtd. Notes,
7.75%, 2010 500,000 503,904
Teco Energy, Notes,
5.54%, 2001 300,000 296,272
Wisconsin Electric Power, First Mortgage,
7.25%, 2004 500,000 502,903
WorldCom, Notes,
8%, 2006 1,500,000 1,554,618
11,488,476
U.S. GOVERNMENT & AGENCIES--37.9%
Federal Home Loan Bank, Bonds:
6.75%, 2/1/2002 4,000,000 4,015,000
5.25%, 4/25/2002 8,100,000 7,956,606
Federal Home Loan Bank, Notes:
5.125%, 2/26/2002 1,350,000 1,326,375
5.125%, 9/15/2003 2,450,000 2,361,114
Federal Home Loan Bank, Sr. Notes,
5.80%, 9/2/2008 500,000 470,555
Federal Home Loan Mortgage Corp., Notes:
5.75%, 7/15/2003 4,550,000 4,464,961
6.875%, 1/15/2005 900,000 911,574
5.125%, 10/15/2008 1,550,000 1,392,179
5.75%, 3/15/2009 2,000,000 1,865,000
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
GROWTH AND INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES (CONTINUED)
Federal National Mortgage Association, Notes:
5.375%, 3/15/2002 500,000 492,500
4.75%, 11/14/2003 3,100,000 2,949,138
5.625%, 5/14/2004 1,000,000 971,915
7.125%, 2/15/2005 1,000,000 1,022,384
7.125%, 3/15/2007 3,250,000 3,336,297
6.50%, 4/29/2009 4,500,000 4,282,961
7.25%, 1/15/2010 7,500,000 7,747,305
Tennessee Valley Authority, Bonds,
6.375%, 6/15/2005 1,950,000 1,928,499
5.375%, 11/13/2008 6,000,000 5,453,520
U.S. Treasury Bonds:
11.125%, 8/15/2003 5,400,000 6,122,250
11.625%, 11/15/2004 170,000 204,850
U.S. Treasury Notes:
5.50%, 7/31/2001 3,000,000 2,981,250
6.25%, 10/31/2001 1,600,000 1,600,000
6.125%, 12/31/2001 2,600,000 2,597,556
6.625%, 4/30/2002 3,700,000 3,730,044
7.50%, 5/15/2002 3,200,000 3,270,976
6.375%, 8/15/2002 2,725,000 2,742,031
5.875%, 9/30/2002 1,400,000 1,396,934
5.75%, 10/31/2002 1,300,000 1,294,306
5.625%, 12/31/2002 1,500,000 1,489,215
6.25%, 2/15/2003 1,625,000 1,635,156
5.50%, 5/31/2003 600,000 593,436
5.25%, 8/15/2003 200,000 196,312
5.75%, 8/15/2003 850,000 845,750
7.50%, 2/15/2005 6,000,000 6,367,500
6.875%, 5/15/2006 1,080,000 1,128,935
6.50%, 10/15/2006 2,950,000 3,032,039
6.25%, 2/15/2007 3,500,000 3,557,960
6.625%, 5/15/2007 5,500,000 5,702,785
5.625%, 5/15/2008 1,600,000 1,570,000
6%, 8/15/2009 3,500,000 3,515,295
108,522,463
TOTAL BONDS AND NOTES
(cost $188,148,646) 187,786,797
GROWTH AND INCOME PORTFOLIO (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--10.3% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--4.1%
Greenwich Capital Markets,
Repurchase Agreement, 6.50%
dated 9/29/2000 to be repurchased
at $11,730,876 on 10/2/2000,
collateralized by $12,025,000
Federal Home Loan Bank Bonds,
4.985% due 12/21/2001, value $11,799,531 11,724,525 11,724,525
U.S. TREASURY BILLS--6.2%
5.25%, 10/5/2000 3,000,000 (c) 2,998,590
5.985%, 12/14/2000 15,000,000 14,812,500
17,811,090
TOTAL SHORT-TERM INVESTMENTS
(cost $29,537,947) 29,535,615
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $271,734,616) 99.7% 285,508,205
CASH AND RECEIVABLES (NET) .3% 689,586
NET ASSETS 100.0% 286,197,791
(a) NON-INCOME PRODUCING.
(b) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THIS SECURITY MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION,
NORMALLY TO QUALIFIED INSTITUTIONAL BUYERS. AT SEPTEMBER 30, 2000, THIS
SECURITY AMOUNTED TO $670,419, OR APPROXIMATELY .2% OF NET ASSETS.
(c) PARTIALLY HELD BY A BROKER IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN
FINANCIAL FUTURES POSITIONS.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
STATEMENT OF FINANCIAL FUTURES
September 30, 2000
<TABLE>
GROWTH AND INCOME PORTFOLIO
Unrealized
Market Value Appreciation
Covered (Depreciation)
Contracts by Contracts ($) Expiration at 9/30/00 ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL FUTURES PURCHASED:
Australian All Ordinaries 15 698,080 December 2000 (3,488)
CAC 40 49 2,683,382 December 2000 (142,712)
Deutsche Akteinindex 14 2,071,412 December 2000 (92,380)
Financial Times 42 3,789,589 December 2000 (107,133)
Hang Seng 3 301,980 October 2000 10,767
Nikkei 300 154 4,224,486 December 2000 (30,140)
Russell 2000 64 16,876,800 December 2000 (670,977)
(1,036,063)
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
STATEMENT OF INVESTMENTS
September 30, 2000
GROWTH PORTFOLIO
COMMON STOCKS--41.9% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICAL--3.0%
Bed Bath & Beyond 8,400 ( a) 204,881
Best Buy 2,100 ( a) 133,613
Delphi Automotive Systems 8,900 134,612
Delta Air Lines 3,400 150,875
Ford Motor 1 22
General Motors 6,500 422,500
Home Depot 5,600 297,150
Limited 7,200 158,850
RadioShack 2,500 161,563
Safeway 4,400 ( a) 205,425
Sears, Roebuck & Co. 11,300 366,346
Southwest Airlines 5,800 140,650
Tiffany & Co. 3,600 138,825
Wal-Mart Stores 18,900 909,562
3,424,874
CONSUMER STAPLES--2.1%
Avon Products 5,300 216,637
Coca-Cola 4,200 231,525
Colgate-Palmolive 4,500 212,400
ConAgra Foods 8,700 174,544
Estee Lauder, Cl. A 3,100 113,537
PepsiCo 12,100 556,600
Procter & Gamble 2,700 180,900
Ralston-Purina Group 9,000 213,188
SYSCO 5,200 240,825
Sara Lee 9,900 201,094
2,341,250
ENERGY--2.9%
BJ Services 3,300 ( a) 201,713
Conoco, Cl. B 5,800 156,237
Exxon Mobil 14,800 1,319,050
Kerr-McGee 2,400 159,000
KeySpan 4,100 164,513
Noble Drilling 2,600 ( a) 130,650
Occidental Petroleum 11,100 242,119
Royal Dutch Petroleum, ADR 10,500 629,344
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
GROWTH PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ENERGY (CONTINUED)
Sunoco 4,400 118,525
USX-Marathon Group 6,200 175,925
3,297,076
HEALTH CARE--4.8%
Amgen 2,100 ( a) 146,639
Andrx Group 2,200 ( a) 205,425
Bristol-Myers Squibb 5,500 314,187
Cardinal Health 3,400 299,838
Johnson & Johnson 8,800 826,650
Lilly (Eli) & Co. 2,300 186,588
Merck & Co. 13,100 975,131
Pfizer 29,500 1,325,656
Pharmacia 4,800 288,900
Schering-Plough 10,600 492,900
Waters 1,800 ( a) 160,200
Wellpoint Health Networks 1,500 ( a) 144,000
5,366,114
INTEREST SENSITIVE--8.7%
Ambac Financial Group 2,800 205,100
American Express 9,900 601,425
American International Group 9,600 918,600
Bank of America 6,400 335,200
CIGNA 3,100 323,640
Citigroup 24,200 1,308,313
FleetBoston Financial 11,700 456,300
General Electric 38,900 2,244,044
MBNA 12,600 485,100
MGIC Investment 3,000 183,375
Marsh & McLennan Cos. 3,100 411,525
Merrill Lynch & Co. 6,200 409,200
Morgan (JP) & Co. 2,500 408,437
Morgan Stanley Dean Witter & Co. 6,600 603,488
St. Paul Cos. 5,200 256,425
UnitedHealth Group 2,200 217,250
Wells Fargo 9,400 431,812
9,799,234
GROWTH PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INTERNET RELATED--.7%
America Online 6,800 ( a) 365,500
Ariba 600 ( a) 85,959
Juniper Networks 900 ( a) 197,044
VeriSign 600 ( a) 121,537
770,040
PRODUCER GOODS & SERVICES--2.6%
Air Products & Chemicals 4,200 151,200
Boeing 6,000 378,000
Canadian Pacific 5,000 130,000
Deere & Co. 5,100 169,575
Eastman Chemical 2,900 107,119
Emerson Electric 4,300 288,100
FedEx 4,100 ( a) 181,794
Kimberly-Clark 4,700 262,319
Minnesota Mining & Manufacturing 3,100 282,487
Tyco International 12,600 653,625
Union Carbide 2,100 79,275
United Parcel Service, Cl. B 1,900 107,113
United Technologies 2,300 159,275
2,949,882
SERVICES--2.2%
Automatic Data Processing 5,800 387,875
Clear Channel Communications 1,900 ( a) 107,350
Comcast, Cl. A 6,100 ( a) 249,719
Disney (Walt) 15,800 604,350
Fox Entertainment Group, Cl. A 10,100 ( a) 267,650
Infinity Broadcasting, Cl. A 3,200 ( a) 105,600
Paychex 3,600 189,000
SunGard Data Systems 4,900 ( a) 209,781
United States Cellular 2,300 ( a) 161,000
Viacom, Cl. B 3,200 ( a) 187,200
2,469,525
TECHNOLOGY--11.7%
ADC Telecommunications 3,500 ( a) 94,117
Adobe Systems 1,500 232,875
Altera 4,200 ( a) 200,550
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
GROWTH PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
Analog Devices 1,900 ( a) 156,869
Applied Materials 1,500 ( a) 88,969
Brocade Communications Systems 800 ( a) 188,800
Broadcom, Cl. A 1,100 ( a) 268,125
CIENA 1,100 ( a) 135,094
Cisco Systems 29,000 ( a) 1,602,250
Comverse Technology 1,800 ( a) 194,400
Corning 1,500 445,500
Cybear Group 268 ( a) 352
Dell Computer 11,100 ( a) 342,019
EMC 9,800 ( a) 971,425
Hewlett-Packard 4,900 475,300
Intel 21,700 901,906
International Business Machines 1,900 213,750
JDS Uniphase 1,600 ( a) 151,500
KLA-Tencor 4,400 ( a) 181,225
Micron Technology 4,400 ( a) 202,400
Microsoft 17,700 ( a) 1,066,425
NVIDIA 2,000 ( a) 163,750
National Semiconductor 3,400 ( a) 136,850
Network Appliance 2,600 ( a) 331,175
Nortel Networks 14,500 863,656
Oracle 14,600 ( a) 1,149,750
PMC-Sierra 700 ( a) 150,675
QLogic 1,300 ( a) 114,400
Rational Software 1,500 ( a) 104,062
Redback Networks 800 ( a) 131,150
SDL 300 ( a) 92,400
Sanmina 1,800 ( a) 168,525
Siebel Systems 3,200 ( a) 356,200
Solectron 4,200 ( a) 193,725
Sun Microsystems 4,900 ( a) 572,075
TIBCO Software 1,100 ( a) 92,881
Teradyne 3,000 ( a) 105,000
GROWTH PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
VERITAS Software 2,100 ( a) 298,200
Vishay Intertechnology 3,800 ( a) 116,850
13,255,175
UTILITIES--3.2%
AT&T 9,100 267,312
Ameren 4,200 175,875
BellSouth 15,500 623,875
FPL Group 2,700 177,525
PG&E 5,300 128,194
Pinnacle West Capital 3,500 178,063
Qwest Communications 8,400 ( a) 403,725
SBC Communications 20,300 1,015,000
Sempra Energy 6,500 135,281
TXU 3,700 146,612
Williams Communications Group 3,400 68,000
WorldCom 8,900 ( a) 270,337
3,589,799
TOTAL COMMON STOCKS
(cost $38,844,251) 47,262,969
------------------------------------------------------------------------------------------------------------------------------------
Principal
BONDS AND NOTES--32.5% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--5.7%
Bank of America, Sub. Notes,
7.80%, 2010 200,000 206,184
CIT Group, Sr. Notes,
7.125%, 2004 300,000 299,465
Canada-Government, Bonds,
6.375%, 2005 700,000 693,836
Citigroup, Sr. Notes,
5.80%, 2004 700,000 680,651
Ford Motor Credit, Notes,
7.50%, 2005 1,000,000 1,006,311
General Electric Capital,
Medium-Term Notes,
7.50%, 2003 700,000 714,323
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
GROWTH PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL (CONTINUED)
General Motors Acceptance Corp., Notes,
5.63%, 2003 1,000,000 973,644
HSBC Holding PLC, Sub. Notes,
7.50%, 2009 100,000 99,803
Hellenic Republic, Notes,
6.95%, 2008 135,000 133,196
Household Finance, Notes,
8%, 2010 100,000 103,237
Kingdom of Spain, Notes,
7%, 2005 200,000 202,487
Lehman Brothers Holdings, Notes,
7.50%, 2006 500,000 498,949
MBNA America Bank, Sr. Notes,
7.75%, 2005 200,000 201,757
Merrill Lynch & Co., Notes,
6%, 2009 200,000 183,447
National Australia Bank, Sub. Notes,
8.60%, 2010 100,000 107,037
Republic of Korea, Unsub. Notes,
8.875%, 2008 125,000 131,250
TXU Eastern Funding Co., Gtd. Notes,
6.75%, 2009 100,000 90,604
United Mexican States, Notes,
9.875%, 2010 100,000 106,550
6,432,731
INDUSTRIAL--4.1%
Compaq Computer, Notes,
7.45%, 2002 300,000 301,296
Conoco, Sr. Notes,
5.90%, 2004 1,000,000 968,781
DaimlerChrysler, Gtd. Notes,
8%, 2010 200,000 206,464
duPont(EI)deNemours, Notes,
6.875%, 2009 700,000 689,250
Kroger, Gtd. Notes,
8.05%, 2010 125,000 126,207
Lockheed Martin, Gtd. Notes,
7.45%, 2004 175,000 175,420
GROWTH PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL (CONTINUED)
Marconi, Gtd. Notes,
7.75%, 2010 75,000 74,337
Norfolk Southern, Sr. Notes,
8.625%, 2010 100,000 106,940
Phillips Petroleum, Notes,
8.75%, 2010 100,000 109,149
Proctor & Gamble, Unsub. Notes,
6.60%, 2004 700,000 698,242
USX, Notes,
7.20%, 2004 100,000 99,641
Viacom, Gtd. Notes,
7.70%, 2010 100,000 102,204
Wal-Mart Stores, Notes,
7.50%, 2004 1,000,000 1,027,649
4,685,580
UTILITIES--1.3%
AT&T, Notes,
5.625%, 2004 700,000 669,404
Dominion Resources, Sr. Notes,
8.125%, 2010 100,000 103,524
Sprint Capital, Gtd. Notes,
5.70%, 2003 250,000 240,853
Telefonica Europe, Gtd. Notes,
7.75%, 2010 100,000 100,781
WorldCom, Notes,
8%, 2006 300,000 310,924
1,425,486
U.S. GOVERNMENT & AGENCIES--21.4%
Federal Home Loan Bank, Bonds,
5.25%, 4/25/2002 2,000,000 1,964,594
Federal Home Loan Bank, Notes,
6.75%, 2/1/2002 1,000,000 1,003,750
Federal Home Loan Mortgage Corp., Notes:
5.75%, 7/15/2003 300,000 294,393
6.875%, 1/15/2005 1,000,000 1,012,860
Federal National Mortgage Association, Notes:
6.50%, 8/15/2004 300,000 299,861
5.75%, 6/15/2005 1,000,000 968,732
The Portfolios
STATEMENT OF INVESTMENTS (CONTINUED)
GROWTH PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES (CONTINUED)
Federal National Mortgage Association, Notes: (continued)
7.25%, 1/15/2010 1,000,000 1,032,974
Tennessee Valley Authority, Bonds,
5.375%, 11/13/2008 1,000,000 908,920
U.S. Treasury Bonds,
11.125%, 8/15/2003 1,000,000 1,133,750
U.S. Treasury Notes:
7.50% ,11/15/2001 200,000 202,686
5.875%, 11/30/2001 140,000 139,430
6.125%, 12/31/2001 1,000,000 999,060
6.25%, 2/28/2002 500,000 500,935
6.625%, 4/30/2002 1,500,000 1,512,180
7.50%, 5/15/2002 975,000 996,626
6.375%, 8/15/2002 925,000 930,781
5.875%, 9/30/2002 480,000 478,949
5.75%, 10/31/2002 90,000 89,606
5.625%, 12/31/2002 550,000 546,046
5.50%, 1/31/2003 230,000 227,700
6.25%, 2/15/2003 500,000 503,125
5.50%, 2/28/2003 500,000 494,685
5.50%, 5/31/2003 400,000 395,624
5.75%, 8/15/2003 460,000 457,700
7.25%, 8/15/2004 1,300,000 1,359,709
6.50%, 8/15/2005 1,100,000 1,128,182
6.50%, 10/15/2006 1,255,000 1,289,902
6.625%, 5/15/2007 250,000 259,217
5.625%, 5/15/2008 1,800,000 1,766,250
6%, 8/15/2009 1,300,000 1,305,681
24,203,908
TOTAL BONDS AND NOTES
(cost $36,608,164) 36,747,705
GROWTH PORTFOLIO (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--33.5% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--13.2%
Greenwich Capital Markets,
Repurchase Agreement, 6.50%
dated 9/29/2000 to be repurchased
at $14,874,403 on 10/2/2000,
collateralized by $4,745,000
Federal Home Loan Bank Bonds,
6.47% due 10/27/2000, value $4,721,275 and by
$10,500,000 Federal Home Loan Bank Bonds,
4.985% due 12/21/2001, value $10,303,125 14,866,350 14,866,350
U.S. TREASURY BILLS--20.3%
5.925%, 10/26/2000 3,200,000 (b) 3,187,904
5.97%, 11/24/2000 10,000,000 9,912,500
5.985%, 12/14/2000 10,000,000 9,875,000
22,975,404
TOTAL SHORT-TERM INVESTMENTS
(cost $37,841,058) 37,841,754
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $113,293,473) 107.9% 121,852,428
LIABILITIES, LESS CASH AND RECEIVABLES (7.9%) (8,927,107)
NET ASSETS 100.0% 112,925,321
(a) NON-INCOME PRODUCING.
(b) PARTIALLY HELD BY A BROKER IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN
FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Portfolios
STATEMENT OF FINANCIAL FUTURES
September 30, 2000
<TABLE>
GROWTH PORTFOLIO
Unrealized
Market Value Appreciation
Covered (Depreciation)
Contracts by Contracts ($) Expiration at 9/30/00 ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL FUTURES PURCHASED:
Australian All Ordinaries 14 648,924 December 2000 (114)
CAC 40 47 2,575,659 December 2000 (128,798)
Deutsche Akteinindex 13 1,925,391 December 2000 (78,544)
Financial Times 40 3,599,757 December 2000 (117,169)
Hang Seng 3 301,980 October 2000 10,812
Nikkei 300 148 4,059,841 December 2000 (29,027)
Russell 2000 47 12,393,900 December 2000 (484,323)
Standard & Poor's 500 7 2,543,975 December 2000 (101,043)
(928,206)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2000
Growth and
Income Income Growth
Portfolio Portfolio Portfolio
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--
See Statement of Investments--Note 2(c)
(including Repurchase Agreements of
$9,730,000, $11,724,525 and $14,866,350, for the
Income Portfolio, the Growth and Income Portfolio
and the Growth Portfolio,
respectively) [cost--Note 5(b)] 74,484,950 285,508,205 121,852,428
Cash 124,633 237,315 --
Dividends and interest receivable 803,103 3,110,160 672,533
Receivable for investment securities sold 307,007 4,162,054 1,717,269
Receivable for futures variation margin--Note 5(a) -- 57,235 440,887
Receivable for shares of Common Stock subscribed 1,053 -- --
Prepaid expenses 6,942 12,893 5,409
75,727,688 293,087,862 124,688,526
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 41,046 199,719 75,520
Cash overdraft due to Custodian -- -- 119,228
Payable for shares of Common Stock redeemed 511,750 589,708 223,291
Payable for investment securities purchased 399,991 6,037,697 11,300,327
Payable for futures variation margin--Note 5(a) 245,300 -- --
Accrued expenses 38,655 62,947 44,839
1,236,742 6,890,071 11,763,205
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 74,490,946 286,197,791 112,925,321
------------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 72,720,482 259,263,986 98,548,266
Accumulated undistributed investment
income--net 2,834,820 9,263,931 3,036,452
Accumulated net realized gain (loss)
on investments 175,258 4,932,348 3,709,854
Accumulated net unrealized appreciation
(depreciation) on investments [including
($830,640), ($1,036,063) and ($928,206)
net unrealized (depreciation) on financial futures
for the Income Portfolio, the Growth and
Income Portfolio and the Growth Portfolio,
respectively]--Note 5(b) (1,239,614) 12,737,526 7,630,749
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 74,490,946 286,197,791 112,925,321
The Portfolios
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
Growth and
Income Income Growth
NET ASSET VALUE PER SHARE Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
RESTRICTED CLASS SHARES
Net Assets ($) 56,461,176 212,581,678 90,857,841
Shares Outstanding 4,210,353 12,397,758 5,110,742
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 13.41 17.15 17.78
------------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES
Net Assets ($) 18,029,770 73,616,113 22,067,480
Shares Outstanding 1,348,177 4,112,420 1,237,264
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 13.37 17.90 17.84
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended September 30, 2000
Growth and
Income Income Growth
Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 4,289,279 14,140,462 4,324,905
Cash dividends (net of $4,962 and $2,797
foreign taxes withheld at source for the
Growth and Income Portfolio and the
Growth Portfolio, respectively) -- 755,199 422,315
TOTAL INCOME 4,289,279 14,895,661 4,747,220
EXPENSES--NOTE 2(D):
Investment advisory fee--Note 4(a) 402,727 2,111,789 797,564
Shareholder servicing costs--Note 4(b) 63,316 276,269 94,151
Auditing fees 26,880 31,155 26,993
Registration fees 26,504 36,671 26,475
Custodian fees--Note 4(b) 7,832 40,590 21,188
Prospectus and shareholders' reports 7,014 27,765 5,206
Legal fees 4,683 73,651 9,452
Directors' fees and expenses--Note 4(c) 3,157 14,302 5,235
Loan commitment fees--Note 3 586 3,208 849
Miscellaneous 13,878 26,612 5,606
TOTAL EXPENSES 556,577 2,642,012 992,719
INVESTMENT INCOME--NET 3,732,702 12,253,649 3,754,501
The Portfolios
STATEMENT OF OPERATIONS (CONTINUED)
Growth and
Income Income Growth
Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS--NOTE 5 ($):
Net realized gain (loss) on investments (603,171) 157,761 1,263,581
Net realized gain (loss) on financial futures 980,593 4,617,089 2,783,699
NET REALIZED GAIN (LOSS) 377,422 4,774,850 4,047,280
Net unrealized appreciation (depreciation)
on investments [including ($207,887),
($382,280) and ($330,106) net unrealized
(depreciation) on financial futures for the
Income Portfolio, the Growth and Income
Portfolio and the Growth Portfolio, respectively] 130,141 2,768,704 319,171
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS 507,563 7,543,554 4,366,451
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 4,240,265 19,797,203 8,120,952
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
Year Ended September 30,
---------------------------------
INCOME PORTFOLIO 2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 3,732,702 2,671,877
Net realized gain (loss) on investments 377,422 2,499,116
Net unrealized appreciation
(depreciation) on investments 130,141 (2,406,310)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 4,240,265 2,764,683
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Restricted Class shares (2,217,948) (1,893,485)
Investor Class shares (736,854) (342,649)
Net realized gain on investments:
Restricted Class shares (1,337,810) (946,742)
Investor Class shares (466,674) (185,368)
TOTAL DIVIDENDS (4,759,286) (3,368,244)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Restricted Class shares 21,394,890 34,163,058
Investor Class shares 9,627,368 17,711,187
Dividends reinvested:
Restricted Class shares 3,527,887 2,836,547
Investor Class shares 1,098,516 522,995
Cost of shares redeemed:
Restricted Class shares (13,375,082) (31,820,840)
Investor Class shares (8,438,055) (14,079,208)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 13,835,524 9,333,739
TOTAL INCREASE (DECREASE) IN NET ASSETS 13,316,503 8,730,178
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 61,174,443 52,444,265
END OF PERIOD 74,490,946 61,174,443
Undistributed investment income--net 2,834,820 2,056,920
The Portfolios
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
Year Ended September 30,
---------------------------------
INCOME PORTFOLIO (CONTINUED) 2000 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (SHARES)
RESTRICTED CLASS SHARES
Shares sold 1,618,890 2,502,527
Shares issued for dividends reinvested 274,544 213,596
Shares redeemed (1,019,262) (2,325,407)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 874,172 390,716
--------------------------------------------------------------------------------
INVESTOR CLASS SHARES
Shares sold 730,314 1,307,028
Shares issued for dividends reinvested 85,488 39,382
Shares redeemed (646,947) (1,030,673)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 168,855 315,737
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended September 30,
---------------------------------
GROWTH AND INCOME PORTFOLIO 2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 12,253,649 7,773,185
Net realized gain (loss) on investments 4,774,850 19,627,022
Net unrealized appreciation (depreciation)
on investments 2,768,704 298,845
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 19,797,203 27,699,052
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Restricted Class shares (7,058,207) (7,141,044)
Investor Class shares (2,195,261) (145,634)
Net realized gain on investments:
Restricted Class shares (13,611,437) (5,112,081)
Investor Class shares (4,412,846) (111,323)
TOTAL DIVIDENDS (27,277,751) (12,510,082)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Restricted Class shares 37,244,638 49,284,067
Investor Class shares 21,288,984 10,805,692
Dividends reinvested:
Restricted Class shares 20,666,969 12,251,329
Investor Class shares 6,416,254 256,461
Cost of shares redeemed:
Restricted Class shares (43,581,845) (58,520,579)
Investor Class shares (21,291,271) (1,262,237)
Net assets received in connection
with reorganization--Note 1
Investor Class shares -- 54,557,437
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 20,743,729 67,372,170
TOTAL INCREASE (DECREASE) IN NET ASSETS 13,263,181 82,561,140
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 272,934,610 190,373,470
END OF PERIOD 286,197,791 272,934,610
Undistributed investment income--net 9,263,931 6,263,750
The Portfolios
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended September 30,
---------------------------------
GROWTH AND INCOME PORTFOLIO (CONTINUED) 2000 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (SHARES)
RESTRICTED CLASS SHARES
Shares sold 2,206,346 2,787,679
Shares issued for dividends reinvested 1,257,880 728,812
Shares redeemed (2,591,663) (3,312,365)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 872,563 204,126
--------------------------------------------------------------------------------
INVESTOR CLASS SHARES
Shares sold 1,207,985 585,101
Shares issued for dividends reinvested 373,255 14,621
Shares redeemed (1,203,460) (67,897)
Shares issued in connection with
reorganization--Note 1 -- 2,970,357
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 377,780 3,502,182
SEE NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
Year Ended September 30,
---------------------------------
GROWTH PORTFOLIO 2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 3,754,501 1,781,597
Net realized gain (loss) on investments 4,047,280 9,208,431
Net unrealized appreciation
(depreciation) on investments 319,171 3,485,618
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 8,120,952 14,475,646
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Restricted Class shares (1,997,818) (1,457,071)
Investor Class shares (223,624) (73,161)
Net realized gain on investments:
Restricted Class shares (7,926,825) (2,589,945)
Investor Class shares (970,791) (152,993)
TOTAL DIVIDENDS (11,119,058) (4,273,170)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Restricted Class shares 20,991,936 52,573,276
Investor Class shares 19,771,904 6,501,470
Dividends reinvested:
Restricted Class shares 9,816,463 3,995,453
Investor Class shares 1,192,173 225,768
Cost of shares redeemed:
Restricted Class shares (15,793,975) (44,050,777)
Investor Class shares (8,264,788) (1,414,942)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 27,713,713 17,830,248
TOTAL INCREASE (DECREASE) IN NET ASSETS 24,715,607 28,032,724
-------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 88,209,714 60,176,990
END OF PERIOD 112,925,321 88,209,714
Undistributed investment income--net 3,036,452 1,503,393
The Portfolios
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
Year Ended September 30,
---------------------------------
GROWTH PORTFOLIO (CONTINUED) 2000 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (SHARES)
RESTRICTED CLASS SHARES
Shares sold 1,174,005 2,899,690
Shares issued for dividends reinvested 567,754 237,966
Shares redeemed (884,898) (2,434,295)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 856,861 703,361
--------------------------------------------------------------------------------
INVESTOR CLASS SHARES
Shares sold 1,108,334 351,259
Shares issued for dividends reinvested 68,595 13,375
Shares redeemed (460,981) (78,498)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 715,948 286,136
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single portfolio share. Total return shows how
much your investment in each portfolio would have increased (or decreased)
during each period, assuming you had reinvested all dividends and distributions.
These figures have been derived from the portfolios' financial statements.
<TABLE>
RESTRICTED CLASS SHARES
----------------------------------------------
Year Ended September 30,
--------------------------------------------------------------------
INCOME PORTFOLIO 2000 1999 1998 1997(a) 1996(b)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 13.55 13.78 14.04 13.42 13.52
Investment Operations:
Investment income--net .74(c) .65(c) .61 .71 .64
Net realized and unrealized gain (loss)
on investments .13 .11 .57 .99 .31
Total from Investment Operations .87 .76 1.18 1.70 .95
Distributions:
Dividends from investment income--net (.63) (.66) (.73) (.65) (.62)
Dividends from net realized gain
on investments (.38) (.33) (.71) (.43) (.43)
Total Distributions (1.01) (.99) (1.44) (1.08) (1.05)
Net asset value, end of period 13.41 13.55 13.78 14.04 13.42
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 6.74 5.66 9.14 13.50 7.30
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .76 .79 .88 .68 .60
Ratio of net investment income
to average net assets 5.64 4.84 5.15 5.87 5.75
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- -- -- .14 .61
Portfolio Turnover Rate 41.96 158.10 64.58 72.08 32.95
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 56,461 45,221 40,582 22,727 12,889
(a) EFFECTIVE AUGUST 7, 1997, RETAIL SHARES WERE REDESIGNATED AS RESTRICTED
CLASS SHARES.
(b) EFFECTIVE JULY 15, 1996, CLASS R SHARES WERE REDESIGNATED AS RETAIL SHARES.
(c) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTOR CLASS SHARES
----------------------------------------------
Year Ended September 30,
--------------------------------------------------------------------
INCOME PORTFOLIO (CONTINUED) 2000 1999 1998 1997(a) 1996(b)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 13.53 13.74 14.01 13.39 13.51
Investment Operations:
Investment income--net .70(c) .60(c) .65 .72 .73
Net realized and unrealized gain (loss)
on investments .12 .13 .49 .95 .18
Total from Investment Operations .82 .73 1.14 1.67 .91
Distributions:
Dividends from investment income--net (.60) (.61) (.70) (.62) (.60)
Dividends from net realized gain
on investments (.38) (.33) (.71) (.43) (.43)
Total Distributions (.98) (.94) (1.41) (1.05) (1.03)
Net asset value, end of period 13.37 13.53 13.74 14.01 13.39
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 6.35 5.44 8.92 13.19 7.07
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.05 1.07 1.13 .97 .85
Ratio of net investment income
to average net assets 5.33 4.59 4.92 5.52 5.50
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- -- -- .15 .61
Portfolio Turnover Rate 41.96 158.10 64.58 72.08 32.95
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 18,030 15,953 11,862 10,136 8,701
(a) EFFECTIVE AUGUST 7, 1997, INSTITUTIONAL SHARES WERE REDESIGNATED AS
INVESTOR CLASS SHARES.
(b) EFFECTIVE JULY 15, 1996, INVESTOR CLASS SHARES WERE REDESIGNATED AS
INSTITUTIONAL SHARES.
(c) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
RESTRICTED CLASS SHARES
----------------------------------------------
Year Ended September 30,
--------------------------------------------------------------------
GROWTH AND INCOME PORTFOLIO 2000 1999 1998 1997(a) 1996(b)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 17.71 16.46 18.43 15.34 14.31
Investment Operations:
Investment income--net .76(c) .64(c) .70 .58 .33
Net realized and unrealized gain (loss)
on investments .48 1.69 .30 3.16 1.60
Total from Investment Operations 1.24 2.33 1.00 3.74 1.93
Distributions:
Dividends from investment income--net (.61) (.63) (.63) (.34) (.42)
Dividends from net realized gain
on investments (1.19) (.45) (2.34) (.31) (.48)
Total Distributions (1.80) (1.08) (2.97) (.65) (.90)
Net asset value, end of period 17.15 17.71 16.46 18.43 15.34
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 7.39 14.51 6.28 25.22 14.17
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .86 .84 .84 .78 .75
Ratio of net investment income
to average net assets 4.43 3.65 4.06 3.52 3.60
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- .01 -- .06 .39
Portfolio Turnover Rate 87.49 142.50 76.78 107.85 122.52
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 212,582 204,096 186,397 172,705 124,677
(a) EFFECTIVE AUGUST 7, 1997, RETAIL SHARES WERE REDESIGNATED AS RESTRICTED CLASS SHARES.
(b) EFFECTIVE JULY 15, 1996, CLASS R SHARES WERE REDESIGNATED AS RETAIL SHARES.
(c) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTOR CLASS SHARES
----------------------------------------------
GROWTH AND Year Ended September 30,
--------------------------------------------------------------------
INCOME PORTFOLIO (CONTINUED) 2000 1999 1998 1997(a) 1996(b)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 18.43 17.10 19.05 15.43 14.29
Investment Operations:
Investment income--net .74(c) .45(c) .72(c) .57(c) .90(c)
Net realized and unrealized gain (loss)
on investments .51 1.92 .28 3.36 1.12
Total from Investment Operations 1.25 2.37 1.00 3.93 2.02
Distributions:
Dividends from investment income--net (.59) (.59) (.61) -- (.40)
Dividends from net realized gain
on investments (1.19) (.45) (2.34) (.31) (.48)
Total Distributions (1.78) (1.04) (2.95) (.31) (.88)
Net asset value, end of period 17.90 18.43 17.10 19.05 15.43
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 7.16 14.17 6.04 25.85 14.84
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.15 1.35 1.08 1.00 1.00
Ratio of net investment income
to average net assets 4.14 3.37 3.81 3.58 3.35
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- .06 -- .05 .39
Portfolio Turnover Rate 87.49 142.50 76.78 107.85 122.52
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 73,616 68,839 3,976 683 160
(a) EFFECTIVE AUGUST 7, 1997, INSTITUTIONAL SHARES WERE REDESIGNATED AS
INVESTOR CLASS SHARES.
(b) EFFECTIVE JULY 15, 1996, INVESTOR CLASS SHARES WERE REDESIGNATED AS
INSTITUTIONAL SHARES.
(c) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
RESTRICTED CLASS SHARES
----------------------------------------------
Year Ended September 30,
---------------------------------------------------------------------
GROWTH PORTFOLIO 2000 1999 1998 1997(a) 1996(b)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 18.47 15.89 20.52 16.59 14.84
Investment Operations:
Investment income--net .64(c) .42(c) .52 .41 .28
Net realized and unrealized gain (loss)
on investments .99 3.27 (.02) 4.94 2.48
Total from Investment Operations 1.63 3.69 .50 5.35 2.76
Distributions:
Dividends from investment income--net (.47) (.40) (.55) (.30) (.31)
Dividends from net realized gain
on investments (1.85) (.71) (4.58) (1.12) (.70)
Total Distributions (2.32) (1.11) (5.13) (1.42) (1.01)
Net asset value, end of period 17.78 18.47 15.89 20.52 16.59
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 9.13 23.93 3.17 34.70 19.73
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .89 .96 .94 .83 .75
Ratio of net investment income
to average net assets 3.56 2.33 2.84 2.38 2.38
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- -- -- .20 .53
Portfolio Turnover Rate 97.16 95.42 89.23 118.49 77.83
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 90,858 78,554 56,431 46,960 28,143
(a) EFFECTIVE AUGUST 7, 1997, RETAIL SHARES WERE REDESIGNATED AS RESTRICTED
CLASS SHARES.
(b) EFFECTIVE JULY 15, 1996, CLASS R SHARES WERE REDESIGNATED AS RETAIL SHARES.
(c) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
FINANCIAL HIGHLIGHTS (CONTINUED)
INVESTOR CLASS SHARES
----------------------------------------------
Year Ended September 30,
-------------------------------------------------------------------
GROWTH PORTFOLIO (CONTINUED) 2000 1999 1998 1997(a) 1996(b)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 18.52 15.93 20.50 16.58 14.82
Investment Operations:
Investment income--net .60(c) .39(c) .44(c) .62 .32
Net realized and unrealized gain (loss)
on investments 1.00 3.25 .03 4.68 2.42
Total from Investment Operations 1.60 3.64 .47 5.30 2.74
Distributions:
Dividends from investment income--net (.43) (.34) (.46) (.26) (.28)
Dividends from net realized gain
on investments (1.85) (.71) (4.58) (1.12) (.70)
Total Distributions (2.28) (1.05) (5.04) (1.38) (.98)
Net asset value, end of period 17.84 18.52 15.93 20.50 16.58
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 8.85 23.50 2.97 34.32 19.58
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.15 1.24 1.18 1.06 1.00
Ratio of net investment income
to average net assets 3.38 2.14 2.65 2.05 2.08
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- -- -- .27 .53
Portfolio Turnover Rate 97.16 95.42 89.23 118.49 77.83
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 22,067 9,656 3,746 8,662 14,458
(a) EFFECTIVE AUGUST 7, 1997, INSTITUTIONAL SHARES WERE REDESIGNATED AS
INVESTOR CLASS SHARES.
(b) EFFECTIVE JULY 15, 1996, INVESTOR CLASS SHARES WERE REDESIGNATED AS
INSTITUTIONAL SHARES.
(c) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1--General:
Dreyfus LifeTime Portfolios, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company and operates as a series company currently
offering three diversified Portfolios: the Income Portfolio, the primary
investment objective of which is to maximize current income and the secondary
investment objective of which is capital appreciation, the Growth and Income
Portfolio, the investment objective of which is to maximize total return,
consisting of capital appreciation and current income and the Growth Portfolio,
the investment objective of which is capital appreciation. The fund accounts
separately for the assets, liabilities and operations of each portfolio. The
Dreyfus Corporation ("Dreyfus") serves as each Portfolio's investment adviser.
Dreyfus is a direct subsidiary of Mellon Bank, N.A. ("Mellon"), which is a
wholly-owned subsidiary of Mellon Financial Corporation. Mellon Equity
Associates ("Mellon Equity"), an indirect wholly-owned subsidiary of Mellon
Financial Corporation, serves as each Portfolio's sub-investment adviser.
On September 23, 1999, pursuant to an Agreement and Plan of Reorganization
previously approved by the fund's Board of Directors, Dreyfus Asset Allocation
Fund' s assets and liabilities were transferred to the Growth and Income
Portfolio in a tax free exchange for Investor Class shares of the Growth and
Income Portfolio at net asset value. 4,291,269 shares valued at $12.71 per
share, representing net assets of $54,557,437 (including $147,484 net unrealized
appreciation on investments) were exchanged by Dreyfus Asset Allocation Fund for
2,970,357 Investor Class shares of the Growth and Income Portfolio.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of Dreyfus, became the distributor of the fund's shares, which are
sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor. The fund is authorized to issue
50 million shares of $.001 par value Common Stock in each of the following
classes of shares: Restricted and Investor. Investor Class shares are offered to
any
The Portfolios
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
investor and Restricted Class shares are offered only to clients of certain
banks, securities brokers or dealers and other financial institutions
(collectively, Service Agents) that have entered into selling agreements with
the distributor. Other differences between the classes include the services
offered to and the expenses borne by each class.
The fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
NOTE 2--Significant Accounting Policies:
(a) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures), but excluding most debt securities 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.
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.
Most debt securities 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: Each Portfolio does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in the market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss on investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and the difference between the amount of
dividends, interest and foreign withholding taxes recorded on the Portfolio's
books and the U.S. dollar equivalent of the amounts actually received or paid.
Net unrealized foreign exchange gains and losses arise from changes in the value
of assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
(c) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, each Portfolio receives
net earnings credits based on available cash balances left on deposit. During
the period ended September 30, 2000, the Income Portfolio, the Growth and Income
Portfolio and the Growth Portfolio received net earnings credits of $1,534,
$7,098 and $11,326, respectively. Income earned under this arrangement is
included in interest income.
The fund may enter into repurchase agreements with financial institutions,
deemed to be creditworthy by the fund's Manager, subject to the seller's
agreement to repurchase and the fund's agreement to resell such securities at a
mutually agreed upon price. Securities purchased subject to repurchase
agreements are deposited with the fund's custodian and, pursuant to the terms of
the repurchase agreement, must have an aggregate market value greater than or
equal to the repurchase price
The Portfolios
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
plus accrued interest at all times. If the value of the underlying securities
falls below the value of the repurchase price plus accrued interest, the fund
will require the seller to deposit additional collateral by the next business
day. If the request for additional collateral is not met, or the seller defaults
on its repurchase obligation, the fund maintains the right to sell the
underlying securities at market value and may claim any resulting loss against
the seller.
(d) EXPENSES: Expenses directly attributable to each Portfolio are charged to
that Portfolio's operations; expenses which are applicable to all Portfolios are
allocated among them on a pro rata basis.
(e) DIVIDENDS TO SHAREHOLDERS: Dividends 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
of 1986, as amended (the "Code"). To the extent that a net realized capital gain
of a Portfolio can be offset by a capital loss carryover of that Portfolio, such
gain will not be distributed.
(f) FEDERAL INCOME TAXES: It is the policy of each 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 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--Bank Line of Credit:
Each Portfolio participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, each Portfolio has agreed to pay commitment fees on its pro rata
portion of the Facility. Interest is
charged to a Portfolio at rates based on prevailing market rates in effect
at the time of borrowings. During the period ended September 30, 2000, none of
the Portfolios borrowed under the Facility.
NOTE 4--Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions with Affiliates:
(a) Pursuant to an investment advisory agreement (the "Agreement") with Dreyfus,
the Investment Advisory 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.
Dreyfus had undertaken from October 1, 1999 through December 31, 1999, that, if
the aggregate expenses of the Growth & Income Portfolio, exclusive of taxes,
brokerage commissions, extraordinary expenses, interest expense and commitment
fees on borrowings, cause the expenses of its Investor Class to exceed 1.13% of
the value of the average daily net assets of the Investor Class, the Growth &
Income Portfolio may deduct from the payment to be made to Dreyfus under the
Agreement, or Dreyfus will bear such excess expense. No expense reimbursement
was required pursuant to the undertaking during the period ended September 30,
2000.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Mellon
Equity, Dreyfus has agreed to pay Mellon Equity a monthly sub-advisory fee for
each Portfolio, computed at the following annual rates:
ANNUAL FEE AS A PERCENTAGE OF
TOTAL PORTFOLIO NET ASSETS AVERAGE DAILY NET ASSETS OF EACH PORTFOLIO
--------------------------------------------------------------------------------
0 to $600 million .35 of 1%
$600 million up to $1.2 billion .25 of 1%
$1.2 billion up to $1.8 billion .20 of 1%
In excess of $1.8 billion .15 of 1%
(b) Under the Shareholder Services Plan, each Portfolio pays the distributor, at
an annual rate of .25 of 1% of the value of the average daily net assets of each
Portfolio's Investor Class shares for the provision of
The Portfolios
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
certain services. The services provided may include personal services relating
to shareholder accounts, such as answering shareholder inquiries regarding each
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.
During the period ended September 30, 2000, each Portfolio's Investor Class was
charged the following pursuant to the Shareholder Services Plan:
<TABLE>
TOTAL PAID TO DSC
-------------------------------------------------------------------
<S> <C> <C>
Income Portfolio $ 40,919 $ 23,350
Growth and Income Portfolio 186,906 111,188
Growth Portfolio 48,234 32,493
</TABLE>
Each Portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
Dreyfus, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for each Portfolio. During the
period ended September 30, 2000, each Portfolio was charged the following
pursuant to the transfer agency agreement:
Income Portfolio $ 9,672
Growth and Income Portfolio 44,684
Growth Portfolio 8,003
Each Portfolio compensates Mellon under a custody agreement for providing
custodial services for each Portfolio. During the period ended September 30,
2000, each Portfolio was charged the following pursuant to the custody
agreement:
Income Portfolio $ 7,832
Growth and Income Portfolio 40,590
Growth Portfolio 21,188
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective August 3, 2000, each
Board member who is not an "affiliated person" as defined in the Act receives an
annual fee of $45,000 and an atten-
dance fee of $5,000 for each in person meeting and $500 for telephone meetings.
These fees are allocated among the funds in the Fund Group. The Chairman of the
Board receives an additional 25% of such compensation. Prior to August 3, 2000,
each Board member who was not an "affiliated person" as defined in the Act
received from the fund an annual fee of $1,000 and an attendance fee of $250 per
meeting. The Chairman of the Board received an additional 25% of such
compensation. Subject to the fund's Emeritus Program Guidelines, Emeritus Board
members, if any, receive 50% of the fund's annual retainer fee and per meeting
fee paid at the time the Board member achieves emeritus status.
NOTE 5--Securities Transactions:
(a) The following summarizes the aggregate amount of purchases and sales of
investment securities, excluding short-term securities and financial futures,
during the period ended September 30, 2000:
<TABLE>
PURCHASES ($) SALES ($)
----------------------------------------------------------------
<S> <C> <C>
Income Portfolio 26,405,328 18,637,645
Growth and Income Portfolio 223,929,584 215,388,254
Growth Portfolio 87,526,146 70,198,378
</TABLE>
Each Portfolio may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. A Portfolio is exposed to
market risk as a result of changes in the value of the underlying financial
instruments. Investments in financial futures require a portfolio to "mark to
market" on a daily basis, which reflects the change in the market value of the
contract at the close of each day's trading. Typically, variation margin
payments are received or made to reflect daily unrealized gains or losses. When
the contracts are closed, a Portfolio recognizes a realized gain or loss. These
investments require initial margin deposits with a custodian or broker, which
consist of cash or cash equivalents, up to approximately 10% of the contract
amount. The amount of these deposits is determined by the exchange or Board of
Trade on which the contract is traded and is subject to change. Contracts open
at September 30, 2000, are set forth in the Statements of Financial Futures.
The Portfolios
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(b) The following summarizes accumulated net unrealized appreciation
(depreciation) on investments and financial futures for each Portfolio at
September 30, 2000:
<TABLE>
GROSS GROSS
APPRECIATION ($) (DEPRECIATION) ($) NET ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Income Portfolio 241,556 (1,481,170) (1,239,614)
Growth and
Income Portfolio 17,862,159 (5,124,633) 12,737,526
Growth Portfolio 10,053,867 (2,423,118) 7,630,749
</TABLE>
At September 30, 2000, 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 September 30, 2000 was as follows:
Income Portfolio $ 74,893,924
Growth and Income Portfolio 271,734,616
Growth Portfolio 113,293,473
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus LifeTime Portfolios, Inc.
We have audited the accompanying statement of assets and liabilities, including
the statements of investments and financial futures, of Dreyfus LifeTime
Portfolios, Inc., (comprising, respectively, the Income Portfolio, the Growth
and Income Portfolio and the Growth Portfolio) as of September 30, 2000, and the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended, and
financial highlights for each of the years indicated therein. 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 audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. 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 and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of September
30, 2000 and confirmation of securities not held by the custodian by
correspondence with others. 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
audits provide 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 each
of the respective portfolios constituting Dreyfus LifeTime Portfolios, Inc., at
September 30, 2000, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for each of the indicated years, in conformity with
accounting principles generally accepted in the United States.
Ernst & Young LLP
New York, New York
November 9, 2000
The Portfolios
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal and State (where applicable) tax law, Dreyfus
LifeTime Portfolios, Inc. (Income Portfolio, Growth and Income Portfolio and
Growth Portfolio) hereby make the following designations of dividends and
distributions paid during the fiscal year ended September 30, 2000:
<TABLE>
LONG-TERM
CAPITAL
GAINS QUALIFYING INTEREST FROM
DISTRIBUTION PAYABLE ORDINARY U.S. GOVERNMENT
NAME OF ISSUER PER SHARE ($) PERIOD DIVIDENDS OBLIGATIONS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Income Portfolio .286 12/02/99 Not Applicable Not Applicable
Growth & Income
Portfolio .376 12/01/99 3.77% Not Applicable
Growth Portfolio .520 12/08/99 5.51% Not Applicable
</TABLE>
The percentage of qualifying ordinary dividends shown qualify for the corporate
dividends received deduction. Shareholders will receive notification in January
2001 of the percentage applicable to the preparation of their 2000 income tax
returns.
NOTES
For More Information
Dreyfus LifeTime
Portfolios, Inc.
200 Park Avenue
New York, NY 10166
Investment Adviser
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Sub-Investment Adviser
Mellon Equity
500 Grant Street
Pittsburgh, PA 15258
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE
Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 2000 Dreyfus Service Corporation DRPAR009
