Dreyfus
LifeTime
Portfolios, Inc.
SEMIANNUAL REPORT
March 31, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's 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
Statement of Investments
8 Income Portfolio
13 Growth & Income Portfolio
23 Growth Portfolio
Statement of Financial Futures
12 Income Portfolio
22 Growth & Income Portfolio
29 Growth Portfolio
30 Statement of Assets and Liabilities
32 Statement of Operations
Statement of Changes in Net Assets
34 Income Portfolio
36 Growth & Income Portfolio
38 Growth Portfolio
Financial Highlights
40 Income Portfolio
42 Growth & Income Portfolio
44 Growth Portfolio
46 Notes to Financial Statements
FOR MORE INFORMATION
--------------------------------------------------------------------------------
Back Cover
The Portfolios
Dreyfus LifeTime
Portfolios, Inc.
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus LifeTime
Portfolios, Inc., covering the six-month period from October 1, 1999 through
March 31, 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.
The past six months have been highly volatile for investors in stocks and bonds.
While the stock market's advance through the fourth quarter of 1999 was led
primarily by technology stocks and large-cap growth stocks in a fast-growing
economy, the large-capitalization market sector corrected substantially during
the first two months of 2000. In March, investor sentiment appeared to shift
once more, and large companies provided strong returns overall. However,
technology stocks, which had dominated the stock market as a group during most
of the reporting period, provided high levels of volatility and relatively
modest returns during the final month of the reporting period.
Most sectors of the bond market declined over the past six months. This was
primarily a response to efforts by the Federal Reserve Board to forestall a
potential re-emergence of inflationary pressures. The Federal Reserve raised
short-term interest rates three times during the reporting period, following two
rate hikes in the months before the reporting period began.
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus LifeTime Portfolios, Inc.
Sincerely,
/s/Stephen E. Canter
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
April 12, 2000
DISCUSSION OF PERFORMANCE
Steven A. Falci, Portfolio Manager
How did Dreyfus LifeTime Portfolios, Inc. perform relative to its benchmarks?
For the six-month period ended March 31, 2000, Dreyfus LifeTime Portfolios, Inc.
produced the following total returns:(1)
GROWTH PORTFOLIO CUSTOMIZED BLENDED INDEX(2)
--------------------------------------------------------------------------------
Investor Shares 11.11% 16.33%
Restricted Shares 11.21%
GROWTH AND INCOME PORTFOLIO
--------------------------------------------------------------------------------
Investor Shares 6.08% 10.75%
Restricted Shares 6.20%
INCOME PORTFOLIO
--------------------------------------------------------------------------------
Investor Shares 4.44% 5.27%
Restricted Shares 4.68%
The total returns for the Growth Portfolio and the Growth and Income Portfolio
compare with a 17.50% total return for the Standard & Poor's 500 Composite Stock
Price Index ("S&P 500"). The total return for the Income Portfolio compares with
a 1.56% for the Lehman Brothers Intermediate Government/Corporate Bond Index.(3)
We attribute the underperformance of the Growth and Growth and Income portfolios
to our underexposure to stocks during the period. While this helped to reduce
risk in the portfolios, it held back our performance. The Income Portfolio's
returns also reflect our attempts to limit volatility by offsetting stock market
risk through diversification.
What are the portfolios' investment approaches?
Dreyfus LifeTime Portfolios, Inc., consist of three separate portfolios offering
a range of investment approaches: Income Portfolio, the most conservative;
Growth and Income Portfolio, a more moderate fund; and Growth Portfolio, the
most aggressive of the three. While the port
The Portfolio
DISCUSSION OF PERFORMANCE (CONTINUED)
folios 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 and Growth and Income Portfolios 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 and Growth and Income Portfolios are 65% and 35%,
respectively. The allowable maximum equity positions for the Growth and Growth
and Income Portfolios 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.
When selecting securities for each portfolio, we generally attempt to mirror the
sector weightings of the benchmark indices. However, we seek to produce returns
that exceed the benchmarks by using a highly disciplined security selection
process that considers a company's stock price as well as its growth and
earnings prospects and the quality of those earnings prospects.
What other factors influenced the performance of the portfolios?
Our underexposure to stocks had the greatest impact on the portfolios'
performances during the reporting period. In what turned out to be an especially
volatile period for stocks, we believe that our limited equity exposure was a
prudent move because it enabled us to reduce risk in the portfolios.
The largest stock market gains during the period stemmed from the highly
volatile technology sector. Many of these companies failed to meet our criteria
of being attractively priced relative to their earnings growth prospects. That's
because even though their stock prices continued to rise, their earnings failed
to keep pace. We were unable to hold many of these stocks in our portfolios and
as a result, our performance suffered. However, during the period we maintained
a technology weighting neutral to the S&P 500, which allowed us to capture a
portion of the sector's gains.
What is the current strategy for the portfolios?
For the Income Portfolio, our asset allocation strategy is a constant asset mix
of approximately 67.5% bonds, 22.5% stocks and 10% cash as of March 31, 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 are maintaining limited exposure to the
stock market because we believe that the risks continue to outweigh the
potential rewards and that equities remain overvalued relative to bonds. With
regard to our stock selection strategy, we continue to implement our time-tested
method of considering the valuations of companies, while also placing a great
deal of emphasis on earnings growth, sustainability of earnings and quality of
earnings. By doing so, we hope to find investment opportunities -- beyond
today' s popular "hyper-growth companies" -- that have solid growth potential
going forward.
April 12, 2000
The Portfolios
DISCUSSION OF PERFORMANCE (CONTINUED)
ASSET CLASS EXPOSURE AS OF MARCH 31, 2000
(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
<PAGE>
COMBINES RETURNS FROM THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
("S&P 500 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/CORPORATE 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 3000 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 BROTHERS
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 BROTHERS 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 BROTHERS
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 ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
INCOME DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE S&P
500 INDEX AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND
INDEX ARE DESCRIBED ABOVE.
The Portfolios
STATEMENT OF INVESTMENTS
<TABLE>
March 31, 2000 (Unaudited)
INCOME PORTFOLIO
Principal
BONDS AND NOTES--65.5% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL--12.7%
AMVESCAP PLC, Gtd. Notes,
6.60%, 2005 200,000 187,052
American Express Credit Account Master Trust,
Asset Backed Ctfs., Ser. 1997-1, Cl. A,
6.40%, 2005 1,000,000 984,815
Atlantic Richfield, Notes,
5.55%, 2003 500,000 478,744
Australia & New Zealand Banking Group, Sub. Notes,
7.55%, 2006 150,000 150,800
Bank One, Sub. Notes,
6%, 2009 300,000 271,222
Bank of America, Sub. Notes,
7.875%, 2002 200,000 202,062
CIT Group, Sr. Notes,
6.15%, 2002 200,000 193,525
Conseco, Notes,
9%, 2006 300,000 286,908
Diageo Capital PLC, Gtd. Notes,
7.25%, 2009 185,000 183,096
Fairfax Financial Holdings, Notes,
7.375%, 2006 150,000 135,367
General Motors Acceptance Corp., Notes,
5.63%, 2003 800,000 763,760
HSBC Holding PLC, Sub. Notes,
7.50%, 2009 100,000 98,534
Hellenic Republic, Notes,
6.95%, 2008 150,000 147,119
Household Finance, Sr. Unsub. Notes,
5.875%, 2009 500,000 440,864
Inter-American Development Bank:
Bonds,
6.125%, 2002 300,000 293,929
Sr. Unsub. Notes,
6.50%, 2004 200,000 195,646
Lehman Brothers, Sr. Sub. Notes,
6.625%, 2008 100,000 92,035
Malaysia, Bonds,
8.75%, 2009 150,000 154,708
Merrill Lynch, Notes,
6%, 2009 500,000 446,277
INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL (CONTINUED)
Norwest, Sr. Notes,
6.75%, 2006 400,000 386,268
Ontario (Province Of), Bonds,
7.625%, 2004 250,000 253,882
Republic Of Korea, Unsub. Notes,
8.875%, 2008 200,000 207,500
Salomon Smith Barney Holdings, Notes,
6.25%, 2003 250,000 241,421
Sanwa Finance Aruba, Gtd. Notes,
8.35%, 2009 100,000 99,661
Sumitomo Bank International Finance, Notes,
8.50%, 2009 150,000 152,410
Transamerica Financial, Notes,
7.25%, 2002 300,000 298,556
US Bank, Notes,
5.70%, 2008 300,000 262,619
United Mexican States, Notes,
9.875%, 2010 150,000 159,000
Wells Fargo, Notes,
6.50%, 2002 275,000 270,280
Westpac Banking, Sub. Deb.,
7.875%,2002 400,000 400,748
8,438,808
INDUSTRIAL--7.2%
Carter Holt Harvey, Sr. Notes,
8.875%, 2004 200,000 207,187
Comcast Cable Communications, Notes,
6.20%, 2008 250,000 223,045
Comdisco, Notes,
6.375%, 2001 500,000 489,777
duPont (EI)deNemours, Notes,
6.50%, 2002 500,000 493,059
Electronic Data Systems, Notes,
7.125%, 2009 100,000 98,406
Exxon Mobil, Deb.,
8.375%, 2001 1,000,000 1,011,159
Federated Department Stores, Sr. Notes,
8.125%, 2002 300,000 303,259
The Portfolios
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL (CONTINUED)
Monsanto, Notes,
5.625%, 2001 500,000 (a) 484,962
Nordstrom, Sr. Notes,
5.625%, 2009 200,000 175,431
Norfolk Southern, Sr. Notes,
6.20%, 2009 250,000 224,398
Petro Geo-Services, Sr. Notes,
6.625%, 2008 180,000 162,431
Safeway, Notes,
7.50%, 2009 200,000 200,500
Time Warner, Notes,
7.75%, 2005 250,000 251,644
Viacom, Sr. Notes,
7.75%, 2005 175,000 175,645
Wal-Mart Stores, Sr. Notes,
6.875%, 2009 300,000 292,800
4,793,703
UTILITIES--4.8%
MCI Worldcom, Sr. Notes,
6.40%, 2005 500,000 477,928
National Rural Utilities Cooperative Finance,
Collateral Trust,
5.50%, 2005 500,000 463,427
New Jersey Bell Telephone, Deb.,
5.875%, 2006 300,000 275,765
Niagara Mohawk Power, First Mortgage,
7.75%, 2006 200,000 201,786
Philadelphia Electric, First Refunding Mortgage,
6.625%, 2003 500,000 486,418
Southern New England Telecommunications, Notes,
6.50%, 2002 1,000,000 988,211
Sprint Capital, Gtd. Notes,
5.70%, 2003 300,000 284,465
3,178,000
INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES--40.8%
Federal Home Loan Bank, Bonds,
Ser. 121, 5.25%, 4/25/2002 830,000 803,887
Federal Home Loan Bank, Notes:
Ser. 98, 5.50%, 8/13/2001 1,000,000 982,670
Ser. 114, 5.125%, 2/26/2002 1,000,000 967,500
Federal Home Loan Mortgage Corp., Notes:
5.50%, 5/15/2002 500,000 485,699
5.75%, 4/15/2008 500,000 457,162
Federal National Mortgage Association:
5.25%, 1/15/2003 1,400,000 1,337,974
5.125%, 2/13/2004 1,500,000 1,402,032
5.75%, 6/15/2005 500,000 471,865
5.25%, 1/15/2009 1,275,000 1,115,242
U.S. Treasury Bonds:
11.625%, 11/15/2004 950,000 1,144,683
7.625%, 2/15/2007 500,000 508,635
U.S. Treasury Notes:
6.375%, 3/31/2001 1,815,000 1,814,710
8%, 5/15/2001 1,000,000 1,016,740
7.875%, 8/15/2001 1,905,000 1,939,519
7.50%, 11/15/2001 1,385,000 1,405,969
6.375%, 8/15/2002 370,000 369,282
5.375%, 6/30/2003 600,000 582,012
5.75%, 8/15/2003 1,885,000 1,847,658
7.25%, 8/15/2004 2,220,000 2,293,238
5.875%, 11/15/2004 200,000 196,468
7.875%, 11/15/2004 260,000 275,301
6.50%, 8/15/2005 1,000,000 1,007,080
6.875%, 5/15/2006 160,000 164,349
7%, 7/15/2006 1,085,000 1,122,053
6.625%, 5/15/2007 1,625,000 1,655,680
5.625%, 5/15/2008 1,060,000 1,019,540
4.75%, 11/15/2008 900,000 813,276
27,200,224
TOTAL BONDS AND NOTES
(cost $44,964,179) 43,610,735
The Portfolios
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
INCOME PORTFOLIO (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--33.6% Amount ($) Value ($)
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REPURCHASE AGREEMENTS--17.3%
Greenwich Capital Markets,
Repurchase Agreement, 6.09%
dated 3/31/2000 to be repurchased
at $11,480,824 on 4/3/2000,
collateralized by 2,420,000
Federal Home Loan Bank Bonds,
5.31% due 12/22/2003, $5,000,000
Federal Home Loan Mortgage Corp. Notes, 5.20% due
10/14/2003, $3,900,000
Federal Home Loan Mortgage Corp. Notes, 5% due
10/20/2003 and $750,000
Federal Home Loan Mortgage Corp. Notes, 5% due
1/15/2004 11,475,000 11,475,000
U.S. TREASURY BILLS--16.3%
5.35%, 4/13/2000 900,000 (b) 898,704
5.90%, 4/20/2000 10,000,000 9,971,900
10,870,604
TOTAL SHORT-TERM INVESTMENTS
(cost $22,341,939) 22,345,604
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TOTAL INVESTMENTS (cost $67,306,118) 99.1% 65,956,339
CASH AND RECEIVABLES (NET) .9% 601,513
NET ASSETS 100.0% 66,557,852
(a) 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 MARCH 31, 2000, THIS
SECURITY AMOUNTED TO $484,962 OR APPROXIMATELY .7% OF NET ASSETS.
(b) PARTIALLY HELD BY THE BROKER IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN
FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
STATEMENT OF FINANCIAL FUTURES
March 31, 2000 (Unaudited)
Market Value Unrealized
Covered Appreciation
Contracts by Contracts ($) Expiration at 3/31/00 ($)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL FUTURES PURCHASED
Standard & Poor's 500 41 15,531,825 June 2000 962,160
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
STATEMENT OF INVESTMENTS
March 31, 2000 (Unaudited)
GROWTH AND INCOME PORTFOLIO
COMMON STOCKS--24.9% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICAL--2.0%
Bed Bath & Beyond 5,800 (a) 228,375
Delphi Automotive Systems 3,400 54,400
Delta Air Lines 4,700 250,275
Federated Department Stores 5,500 (a) 229,625
Ford Motor 17,300 794,719
Gap 2,500 124,531
General Motors 5,000 414,062
Home Depot 13,300 857,850
Limited 5,000 210,625
Office Depot 15,800 (a) 182,687
Sears, Roebuck & Co. 11,500 355,063
TJX Cos. 19,700 437,094
Target 4,000 299,000
Wal-Mart Stores 21,300 1,182,150
5,620,456
CONSUMER STAPLES--1.0%
Coca-Cola 10,400 488,150
Estee Lauder, Cl. A 4,300 215,269
Fortune Brands 10,400 260,000
PepsiCo 8,200 283,412
Procter & Gamble 6,900 388,125
Ralston-Purina Group 12,500 342,188
Sara Lee 28,200 507,600
Unilever, ADR 8,000 385,000
2,869,744
ENERGY--1.6%
Amerada Hess 5,600 361,900
Atlantic Richfield 7,400 629,000
Chevron 3,400 314,287
Diamond Offshore Drilling 5,200 207,675
Duke Energy 6,800 357,000
Exxon Mobil 14,800 1,151,625
Global Marine 1,000 (a) 25,375
Kerr-Mcgee 3,300 190,575
Keyspan 5,800 160,225
The Portfolios
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
GROWTH AND INCOME PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ENERGY (CONTINUED)
Royal Dutch Petroleum, ADR 17,900 1,030,369
4,428,031
HEALTH CARE--2.1%
Allergan 2,700 135,000
Amgen 2,800 (a) 171,850
Bausch & Lomb 3,000 156,562
Biogen 4,400 (a) 307,450
Biomet 6,400 232,800
Bristol-Myers Squibb 7,600 438,900
Johnson & Johnson 8,000 560,500
Merck & Co. 18,100 1,124,463
Pfizer 24,500 895,781
Schering-Plough 19,400 712,950
United HealthCare 3,100 184,837
Warner-Lambert 7,100 692,250
Wellpoint Health Networks 3,900 (a) 272,513
5,885,856
INTEREST SENSITIVE--4.2%
Ambac Financial Group 3,900 196,462
American Express 3,200 476,600
American International Group 2,900 317,550
Bank of America 12,200 639,738
CIGNA 4,300 325,725
Chase Manhattan 11,800 1,028,813
Citigroup 25,200 1,494,675
Conseco 5,100 58,331
Fannie Mae 3,500 197,531
FleetBoston Financial 10,800 394,200
General Electric 18,000 2,793,375
MBNA 17,500 446,250
MGIC Investment 4,100 178,863
Marsh & McLennan Cos. 4,400 485,375
Merrill Lynch & Co. 2,100 220,500
Morgan (JP) & Co. 2,100 276,675
Morgan Stanley Dean Witter & Co. 9,200 750,375
SLM Holding 6,100 203,206
GROWTH AND INCOME PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INTEREST SENSITIVE (CONTINUED)
St. Paul Cos. 10,100 344,663
State Street 2,600 251,875
SunTrust Banks 2,900 167,475
UnionBanCal 4,500 124,031
XL Capital, Cl. A 6,000 332,250
11,704,538
PRODUCER GOODS & SERVICES--1.7%
American Power Conversion 10,500 (a) 450,187
Boeing 8,300 314,881
Deere & Co. 7,100 269,800
Dow Chemical 4,000 456,000
duPont(EI)deNemours 3,200 169,200
General Dynamics 6,500 323,375
Georgia Pacific Group 10,800 427,275
International Paper 6,200 265,050
Kimberly-Clark 3,300 184,800
Minnesota Mining & Manufacturing 2,200 194,838
PPG Industries 3,200 167,400
Rohm & Haas 6,900 307,913
Tyco International 11,900 593,513
USG 2,700 113,231
Union Carbide 2,900 169,106
United Technologies 3,200 202,200
4,608,769
SERVICES--2.0%
ALLTEL 4,800 302,700
America Online 17,400 (a) 1,170,150
CBS 5,900 (a) 334,087
Dow Jones & Co. 2,900 208,256
Fox Entertainment Group, Cl. A 14,000 (a) 419,125
Gannett 3,200 225,200
IMS Health 10,000 169,375
Infinity Broadcasting, Cl. A 15,500 (a) 501,813
Nextel Communications, Cl. A 2,200 (a) 326,150
Tribune 5,600 204,750
United States Cellular 1,900 (a) 134,900
The Portfolios
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
GROWTH AND INCOME PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
SERVICES (CONTINUED)
VeriSign 900 (a) 134,550
Walt Disney 8,800 364,100
Yahoo! 5,200 (a) 891,150
5,386,306
TECHNOLOGY--8.0%
ADC Telecommunications 8,200 (a) 441,775
Agilent Technologies 1,800 (a) 187,200
Analog Devices 2,400 (a) 193,350
Apple Computer 3,100 (a) 421,019
Applied Materials 9,000 (a) 848,250
Brocade Communications Systems 1,500 (a) 268,969
Cisco Systems 37,400 (a) 2,891,487
Computer Associates International 6,000 355,125
Compuware 800 (a) 16,850
Corning 1,300 252,200
Dell Computer 15,400 (a) 830,638
EMC 2,700 (a) 337,500
Eaton 3,500 273,000
Gateway 5,900 (a) 312,700
Hewlett-Packard 2,600 344,662
Intel 20,900 2,757,494
International Business Machines 6,600 778,800
Juniper Networks 700 (a) 184,494
Lexmark International Group, Cl. A 4,200 (a) 444,150
Lucent Technologies 5,600 340,200
Micron Technology 300 (a) 37,800
Microsoft 30,700 (a) 3,261,875
Motorola 4,700 669,162
NCR 5,200 (a) 208,650
Network Appliance 2,600 (a) 215,150
Nokia, ADR 1,300 282,425
Nortel Networks 6,400 806,400
Oracle 15,000 (a) 1,170,938
Portal Software 2,200 (a) 125,263
QualComm 5,200 (a) 776,425
RealNetworks 1,200 (a) 68,325
GROWTH AND INCOME PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
Sun Microsystems 6,200 (a) 580,959
Tellabs 6,900 (a) 434,592
Teradyne 2,600 (a) 213,850
Texas Instruments 3,700 592,000
21,923,677
TOBACCO--.1%
Philip Morris Cos. 8,600 181,675
UTILITIES--2.2%
AT&T 18,900 1,063,125
Ameren 5,900 182,531
BellSouth 21,500 1,010,500
Consolidated Edison 7,200 208,800
FPL Group 10,500 483,656
GTE 14,200 1,008,200
MCI WorldCom 26,300 (a) 1,191,719
SBC Communications 16,500 693,000
Sempra Energy 9,000 150,750
5,992,281
TOTAL COMMON STOCKS
(cost $51,317,413) 68,601,333
------------------------------------------------------------------------------------------------------------------------------------
Principal
BONDS AND NOTES--62.4% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--11.7%
American Express Credit Account Master Trust,
Asset Backed Ctfs., Ser. 1997-1, Cl. A,
6.40%, 2005 3,000,000 2,954,445
American General, Notes,
7.75%, 2005 500,000 502,237
Associates N.A., Sr. Notes:
7.50%, 2002 550,000 549,845
5.75%, 2003 2,100,000 1,989,677
Atlantic Richfield, Notes,
5.55%, 2003 3,500,000 3,351,208
Banco Santander Central Hispano Issuance,
Gtd. Notes,
7.625%, 2009 1,750,000 1,730,375
The Portfolios
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
GROWTH AND INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL (CONTINUED)
BankAmerica, Sub. Notes,
7.875%, 2002 1,000,000 1,010,309
DaimlerChrysler N.A. Holdings, Gtd. Notes,
7.20%, 2009 1,500,000 1,466,805
Ford Motor Credit, Notes,
7.50%, 2005 500,000 498,882
Frank Russell, Notes,
5.625%, 2009 750,000 (b) 655,102
General Motors Acceptance Corp.,
Medium-Term Notes,
5.63%, 2003 1,500,000 1,432,050
Hyatt Equities, Notes, Series MTN,
6.80%, 2000 500,000 (b) 499,534
International Lease Finance, Notes,
5.625%, 2002 500,000 482,476
Lehman Brothers:
Notes,
7.50%, 2006 2,500,000 2,451,525
Sr. Sub. Notes,
7.625%, 2006 1,000,000 982,702
Merrill Lynch & Co., Notes,
6%, 2009 6,500,000 5,801,601
NationsBank Credit Card Master Trust, Notes,
Ser. 1995-1, Cl. A,
6.45%, 2003 500,000 500,068
Norwest, Sr. Notes,
6.75%, 2006 1,500,000 1,448,504
Ontario (Province of), Bonds,
7.75%, 2002 2,000,000 2,020,586
Textron Financial, Notes,
7.125%, 2004 2,000,000 1,970,260
32,298,191
INDUSTRIAL--10.5%
Albertson's, Sr. Notes,
6.95%, 2009 2,000,000 1,917,862
BP Amoco, Notes,
6.25%, 2004 2,000,000 1,950,236
Comcast Cable Communications, Notes,
6.20%, 2008 2,000,000 1,784,360
GROWTH AND INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL (CONTINUED)
Delphi Auto Systems, Notes,
6.125%, 2004 1,000,000 936,503
duPont(EI)deNemours, Notes,
6.50%, 2002 3,000,000 2,958,354
Federated Department Stores, Notes,
6.30%, 2009 2,000,000 1,818,064
Lockheed Martin, Notes,
8.20%, 2009 1,500,000 1,500,820
Monsanto, Notes,
5.375%, 2001 1,500,000 1,454,886
Norfolk Southern, Notes,
6.20%, 2009 5,250,000 4,712,353
PPG Industries, Notes,
6.75%, 2004 5,000,000 4,890,255
Philip Morris, Notes:
7.625%, 2002 1,000,000 976,966
6.95%, 2006 500,000 492,040
Viacom, Sr. Notes,
7.75%, 2005 500,000 501,842
Wal-Mart Stores, Sr. Notes,
6.875%, 2009 3,000,000 2,928,000
28,822,541
UTILITIES--3.1%
AT&T, Notes,
5.625%, 2004 3,000,000 2,827,554
K N Energy, Sr. Notes,
6.65%, 2005 500,000 477,877
MCI Worldcom, Sr. Notes,
6.40%, 2005 1,500,000 1,433,783
Peco Energy Transition Trust, Notes,
Ser. 1999-A, Cl. A2,
5.63%, 2005 500,000 484,023
Philadelphia Electric, First Mortgage,
6.625%, 2003 2,000,000 1,945,672
Public Service Electric and Gas, First Mortgage,
8.875%, 2003 500,000 516,985
Teco Energy, Notes,
5.54%, 2001 300,000 293,427
The Portfolios
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
GROWTH AND INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (CONTINUED)
Wisconsin Electric Power, First Mortgage,
7.25%, 2004 500,000 498,595
8,477,916
U.S. GOVERNMENT & AGENCIES--37.1%
Federal Home Loan Bank, Bonds:
5.625%, 3/19/2001 4,800,000 4,756,800
6.75%, 2/1/2002 4,000,000 3,985,000
5.25%, 4/25/2002 13,100,000 12,687,861
Federal Home Loan Bank, Notes:
4.875%, 1/22/2002 2,300,000 2,220,553
5.125%, 2/26/2002 1,350,000 1,306,125
5.125%, 9/15/2003 2,450,000 2,309,468
Federal Home Loan Bank, Sr. Notes,
5.80%, 9/2/2008 500,000 456,653
Federal Home Loan Mortgage Corp., Notes:
5.75%, 7/15/2003 800,000 770,552
6.875%, 1/15/2005 900,000 892,935
5.125%, 10/15/2008 1,550,000 1,348,996
5.75%, 3/15/2009 2,000,000 1,812,500
Federal National Mortgage Association, Notes:
5.375%, 3/15/2002 500,000 485,625
5.25%, 1/15/2003 4,900,000 4,682,910
4.75%, 11/14/2003 6,100,000 5,661,855
5.625%, 5/14/2004 1,000,000 948,883
6.50%, 4/29/2009 4,500,000 4,187,678
Tennessee Valley Authority, Bonds,
6.375%, 6/15/2005 1,950,000 1,884,954
5.375%, 11/13/2008 6,000,000 5,442,120
U.S. Treasury Bonds:
11.125%, 8/15/2003 5,400,000 6,143,742
11.625%, 11/15/2004 170,000 204,838
U.S. Treasury Notes:
5.625%, 11/30/2000 1,500,000 1,493,415
5.25%, 1/31/2001 6,000,000 5,946,600
5.375%, 2/15/2001 1,150,000 1,140,478
8%, 5/15/2001 4,300,000 4,371,982
5.75%, 6/30/2001 600,000 595,062
6.25%, 10/31/2001 1,600,000 1,594,224
6.125%, 12/31/2001 2,600,000 2,584,270
7.50%, 5/15/2002 3,200,000 3,263,200
6.375%, 8/15/2002 2,725,000 2,719,713
GROWTH AND INCOME PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES (CONTINUED)
U.S. Treasury Notes (continued)
5.875%, 9/30/2002 1,400,000 1,381,408
5.75%, 10/31/2002 1,300,000 1,278,342
5.625%, 12/31/2002 1,500,000 1,469,175
6.25%, 2/15/2003 1,625,000 1,616,453
5.50%, 5/31/2003 600,000 584,220
5.25%, 8/15/2003 200,000 193,112
5.75%, 8/15/2003 850,000 833,162
7.50%, 2/15/2005 1,500,000 1,569,180
6.875%, 5/15/2006 1,080,000 1,109,354
6.50%, 10/15/2006 2,950,000 2,977,966
6.25%, 2/15/2007 3,500,000 3,495,800
102,407,164
TOTAL BONDS AND NOTES
(cost $176,811,898) 172,005,812
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--11.7%
------------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--5.6%
Greenwich Capital Markets, Repurchase Agreement, 6.09%
dated 3/31/2000 to be repurchased at $15,522,874
on 4/3/2000, collateralized by $2,765,000 Federal Home
Loan Bank Bonds, 6% due 8/15/2002, $2,580,000
Federal Home Loan Bank Bonds, 5.31% due 12/22/2003,
$5,000,000 Federal Home Loan Bank Bonds, 6.01% due
1/28/2005 and $5,784,000 Federal Home Loan Mortgage
Corp. Notes, 6.875% due 1/15/2005 15,515,000 15,515,000
U.S. TREASURY BILLS--6.1%
5.35%, 4/13/2000 1,000,000 998,560
5.82%, 4/27/2000 15,800,000 (c) 15,738,064
16,736,624
TOTAL SHORT-TERM INVESTMENTS
(cost $32,247,042) 32,251,624
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $260,376,353) 99.0% 272,858,769
CASH AND RECEIVABLES (NET) 1.0% 2,884,265
NET ASSETS 100.0% 275,743,034
(a) NON-INCOME PRODUCING.
(b) 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 MARCH 31,
2000, THESE SECURITIES AMOUNTED TO $1,154,636, OR APPROXIMATELY .4% OF NET
ASSETS.
(c) PARTIALLY HELD BY THE BROKER IN A SEGREGATED ACCOUNT AS COLLATERAL FOR OPEN
FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
</TABLE>
<TABLE>
STATEMENT OF FINANCIAL FUTURES
March 31, 2000 (Unaudited)
GROWTH AND INCOME PORTFOLIO
Unrealized
Market Value Appreciation
Covered (Depreciation)
Contracts by Contracts ($) Expiration at 3/31/00 ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL FUTURES PURCHASED:
Australian All Ordinaries 8 391,556 June 2000 (8,128)
CAC 40 37 2,216,498 June 2000 (98,107)
Deutsche Akteinindex 14 2,549,466 June 2000 (163,195)
Financial Times 31 3,218,231 June 2000 (6,378)
Hang Seng 6 672,883 April 2000 (16,967)
Nikkei 300 137 4,134,563 June 2000 179,216
Russell 2000 55 14,997,125 June 2000 (1,698,620)
Standard & Poor's 500 5 1,894,125 June 2000 118,760
(1,693,419)
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
STATEMENT OF INVESTMENTS
March 31, 2000 (Unaudited)
GROWTH PORTFOLIO
COMMON STOCKS--34.8% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICAL--2.9%
Bed Bath & Beyond 3,300 (a) 129,938
Delphi Automotive Systems 1,900 30,400
Delta Air Lines 2,700 143,775
Federated Department Stores 3,100 (a) 129,425
Ford Motor 9,900 454,781
Gap 1,400 69,737
General Motors 2,800 231,875
Home Depot 7,500 483,750
Limited 2,800 117,950
Office Depot 9,000 (a) 104,062
Sears, Roebuck & Co. 6,500 200,687
TJX Cos. 11,200 248,500
Target 2,300 171,925
Wal-Mart Stores 12,100 671,550
3,188,355
CONSUMER STAPLES--1.5%
Coca-Cola 5,900 276,931
Estee Lauder, Cl. A 2,400 120,150
Fortune Brands 5,900 147,500
PepsiCo 4,600 158,987
Procter & Gamble 3,900 219,375
Ralston-Purina Group 7,100 194,363
Sara Lee 16,000 288,000
Unilever, ADR 4,500 216,563
1,621,869
ENERGY--2.3%
Amerada Hess 3,200 206,800
Atlantic Richfield 4,200 357,000
Chevron 1,900 175,631
Diamond Offshore Drilling 3,000 119,813
Duke Energy 3,900 204,750
Exxon Mobil 8,400 653,625
Global Marine 600 (a) 15,225
Kerr-McGee 1,900 109,725
KeySpan 3,300 91,163
Royal Dutch Petroleum, ADR 10,200 587,137
2,520,869
The Portfolios
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
GROWTH PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE--3.0%
Allergan 1,600 80,000
Amgen 1,600 (a) 98,200
Bausch & Lomb 1,700 88,719
Biogen 2,500 (a) 174,687
Biomet 3,600 130,950
Bristol-Myers Squibb 4,300 248,325
Johnson & Johnson 4,500 315,281
Merck & Co. 10,300 639,887
Pfizer 14,000 511,875
Schering-Plough 11,000 404,250
United HealthCare 1,800 107,325
Warner-Lambert 4,100 399,750
Wellpoint Health Networks 2,200 (a) 153,725
3,352,974
INTEREST SENSITIVE--5.9%
Ambac Financial Group 2,200 110,825
American Express 1,800 268,087
American International Group 1,700 186,150
Bank of America 6,900 361,819
CIGNA 2,500 189,375
Chase Manhattan 6,700 584,156
Citigroup 14,300 848,169
Conseco 2,900 33,169
Fannie Mae 2,000 112,875
FleetBoston Financial 6,200 226,300
General Electric 10,200 1,582,913
MBNA 9,900 252,450
MGIC Investment 2,300 100,337
Marsh & McLennan Cos. 2,500 275,781
Merrill Lynch & Co. 1,200 126,000
Morgan (J.P.) & Co. 1,200 158,100
Morgan Stanley Dean Witter & Co. 5,200 424,125
SLM Holding 3,500 116,594
St. Paul Cos. 5,700 194,513
State Street 1,500 145,313
SunTrust Banks 1,700 98,175
GROWTH PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
INTEREST SENSITIVE (CONTINUED)
UnionBanCal 2,600 71,663
XL Capital, Cl. A 3,200 177,200
6,644,089
PRODUCER GOODS & SERVICES--2.3%
American Power Conversion 5,800 (a) 248,675
Boeing 4,700 178,306
Deere & Co. 4,100 155,800
Dow Chemical 2,300 262,200
duPont(EI)deNemours 1,800 95,175
General Dynamics 3,700 184,075
Georgia Pacific Group 6,100 241,331
International Paper 3,500 149,625
Kimberly-Clark 1,900 106,400
Minnesota Mining & Manufacturing 1,300 115,131
PPG Industries 1,800 94,163
Rohm & Haas 3,900 174,038
Tyco International 6,800 339,150
USG 1,600 67,100
Union Carbide 1,700 99,131
United Technologies 1,800 113,738
2,624,038
SERVICES--2.7%
ALLTEL 2,700 170,269
America Online 9,800 (a) 659,050
CBS 3,400 (a) 192,525
Dow Jones & Co. 1,700 122,081
Fox Entertainment Group, Cl. A 7,900 (a) 236,506
Gannett 1,800 126,675
IMS Health 5,700 96,544
Infinity Broadcasting, Cl. A 8,800 (a) 284,900
Nextel Communications, Cl. A 1,200 (a) 177,900
Tribune 3,200 117,000
United States Cellular 1,100 (a) 78,100
VeriSign 500 (a) 74,750
Walt Disney 5,000 206,875
Yahoo! 3,000 (a) 514,125
3,057,300
The Portfolios
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
GROWTH PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--11.1%
ADC Telecommunications 4,600 (a) 247,825
Agilent Technologies 1,000 (a) 104,000
Analog Devices 1,400 (a) 112,787
Apple Computer 1,800 (a) 244,462
Applied Materials 5,000 (a) 471,250
Brocade Communications Systems 900 (a) 161,381
Cisco Systems 21,200 (a) 1,639,025
Computer Associates International 3,400 201,237
Compuware 400 (a) 8,425
Corning 700 135,800
Dell Computer 8,700 (a) 469,256
EMC 1,500 (a) 187,500
Eaton 2,000 156,000
Gateway 3,300 (a) 174,900
Hewlett-Packard 1,500 198,844
Intel 11,900 1,570,056
International Business Machines 3,700 436,600
Juniper Networks 400 (a) 105,425
Lexmark International Group, Cl. A 2,400 (a) 253,800
Lucent Technologies 3,200 194,400
Micron Technology 100 (a) 12,600
Microsoft 17,500 (a) 1,859,375
Motorola 2,700 384,412
NCR 2,900 (a) 116,363
Network Appliance 1,400 (a) 115,850
Nokia, ADR 700 152,075
Nortel Networks 3,600 453,600
Oracle 8,600 (a) 671,338
Portal Software 1,300 (a) 74,019
QUALCOMM 3,000 (a) 447,938
RealNetworks 700 (a) 39,856
Sun Microsystems 3,500 (a) 327,961
Tellabs 3,900 (a) 245,639
Teradyne 1,500 (a) 123,375
Texas Instruments 2,100 336,000
12,433,374
GROWTH PORTFOLIO (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TOBACCO--.1%
Philip Morris Cos. 4,900 103,513
UTILITIES--3.0%
AT&T 10,700 601,875
Ameren 3,400 105,187
BellSouth 12,200 573,400
Consolidated Edison 4,100 118,900
FPL Group 6,000 276,375
GTE 8,100 575,100
MCI WorldCom 15,000 (a) 679,688
SBC Communications 9,400 394,800
Sempra Energy 5,100 85,425
3,410,750
TOTAL COMMON STOCKS
(cost $28,813,291) 38,957,131
------------------------------------------------------------------------------------------------------------------------------------
Principal
BONDS AND NOTES--31.4% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BONDS:
11.125%, 8/15/2003 2,800,000 3,185,644
9.375%, 2/15/2006 600,000 685,476
U.S. TREASURY NOTES:
6.25%, 4/30/2001 1,050,000 1,048,320
6.625%, 6/30/2001 490,000 491,000
7.875%, 8/15/2001 280,000 285,074
6.25%, 10/31/2001 500,000 498,195
7.50%, 11/15/2001 460,000 466,964
5.875%, 11/30/2001 490,000 485,203
6.125%, 12/31/2001 2,065,000 2,052,507
6.25%, 2/28/2002 500,000 497,840
6.625%, 4/30/2002 1,000,000 1,002,700
7.50%, 5/15/2002 975,000 994,256
6.375%, 8/15/2002 925,000 923,206
5.875%, 9/30/2002 480,000 473,626
5.75%, 10/31/2002 90,000 88,501
5.625%, 12/31/2002 550,000 538,697
5.50%, 1/31/2003 230,000 224,411
6.25%, 2/15/2003 910,000 905,213
5.50%, 2/28/2003 500,000 487,425
5.50%, 5/31/2003 1,000,000 973,700
The Portfolios
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
GROWTH PORTFOLIO (CONTINUED)
Principal
BONDS AND NOTES (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY NOTES (CONTINUED)
5.375%, 6/30/2003 1,030,000 999,121
5.25%, 8/15/2003 250,000 241,390
5.75%, 8/15/2003 460,000 450,887
5.875%, 2/15/2004 500,000 491,920
7.25%, 5/15/2004 2,300,000 2,371,185
7.25%, 8/15/2004 1,300,000 1,342,887
7.875%, 11/15/2004 1,685,000 1,784,162
6.875%, 5/15/2006 570,000 585,493
7%, 7/15/2006 1,500,000 1,551,225
6.50%, 10/15/2006 6,755,000 6,819,037
6.625%, 5/15/2007 450,000 458,496
6.125%, 8/15/2007 1,170,000 1,159,996
5.50%, 5/15/2009 600,000 570,656
TOTAL BONDS AND NOTES
(cost $36,082,250) 35,134,413
-----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--32.6%
-----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--7.7%
Greenwich Capital Markets, Repurchase Agreement,
6.09% dated 3/31/2000 to be repurchased at
$8,629,377 on 4/3/2000, collateralized by
$7,990,000 Federal Home Loan Bank Bonds,
5.695% due 12/23/2002 and by $1,020,000
Federal Home Loan Mortgage Corp.,
6.54% due 8/26/2008 8,625,000 8,625,000
U.S. TREASURY BILLS--24.9%
5.35%, 4/13/2000 1,250,000 1,248,200
5.82%, 4/27/2000 26,700,000 (b) 26,595,336
27,843,536
TOTAL SHORT-TERM INVESTMENTS
(cost $36,459,387) 36,468,536
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $101,354,928) 98.8% 110,560,080
CASH AND RECEIVABLES (NET) 1.2% 1,380,944
NET ASSETS 100.0% 111,941,024
(a) NON-INCOME PRODUCING.
(b) PARTIALLY HELD BY THE CUSTODIAN/BROKER IN A SEGREGATED ACCOUNT AS
COLLATERAL FOR OPEN FINANCIAL FUTURES POSITIONS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
STATEMENT OF FINANCIAL FUTURES
March 31, 2000 (Unaudited)
GROWTH PORTFOLIO
Unrealized
Market Value Appreciation
Covered (Depreciation)
Contracts by Contracts ($) Expiration at 3/31/00 ($)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL FUTURES PURCHASED:
Australian All Ordinaries 6 293,674 June 2000 (6,700)
CAC 40 33 1,976,877 June 2000 (87,501)
Deutsche Akteinindex 12 2,185,256 June 2000 (139,882)
Financial Times 30 3,114,417 June 2000 (6,172)
Hang Seng 4 448,589 April 2000 (10,026)
Nikkei 300 117 3,530,977 June 2000 153,053
Russell 2000 45 12,270,375 June 2000 (1,389,780)
Standard & Poor's 500 30 11,364,750 June 2000 704,510
(782,498)
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 2000 (Unaudited)
Growth and
Income Income Growth
Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS ($):
Investments in securities--
See Statement of Investments
[cost--Note 5(b)] 65,956,339 272,858,769 110,560,080
Cash 104,422 240,093 217,673
Dividends and interest receivable 701,682 2,973,743 721,052
Receivable for futures variation margin--Note 5(a) 112,750 764,337 713,839
Receivable for shares of Common Stock subscribed 14 1,000 1,000
Receivable for investment securities sold -- 6,989,523 3,007,927
Prepaid expenses 13,179 13,160 14,444
66,888,386 283,840,625 115,236,015
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 34,504 180,946 71,037
Due to Distributor 3,311 15,991 4,637
Payable for shares of Common Stock redeemed 149,458 563,421 177,019
Payable for investment securities purchased 122,567 7,292,337 3,014,376
Accrued expenses 20,694 44,896 27,922
330,534 8,097,591 3,294,991
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 66,557,852 275,743,034 111,941,024
------------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 66,180,814 252,196,901 95,506,451
Accumulated undistributed investment
income--net 827,183 2,767,282 910,331
Accumulated net realized gain (loss)
on investments (62,526) 9,989,854 7,101,588
Accumulated net unrealized appreciation
(depreciation) on investments [including
$962,160, ($1,693,419) and ($782,498) net
unrealized appreciation (depreciation) on
financial futures for the Income Portfolio,
the Growth and Income Portfolio and the
Growth Portfolio, respectively]--Note 5(b) (387,619) 10,788,997 8,422,654
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 66,557,852 275,743,034 111,941,024
Growth and
Income Income Growth
NET ASSET VALUE PER SHARE Portfolio Portfolio Portfolio
-----------------------------------------------------------------------------------------------------------------------------------
RESTRICTED CLASS SHARES
Net Assets ($) 50,868,438 199,649,185 89,745,569
Shares Outstanding 3,869,771 11,780,476 4,953,745
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 13.15 16.95 18.12
-----------------------------------------------------------------------------------------------------------------------------------
INVESTOR CLASS SHARES
Net Assets ($) 15,689,414 76,093,849 22,195,455
Shares Outstanding 1,195,083 4,294,505 1,219,569
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 13.13 17.72 18.20
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
STATEMENT OF OPERATIONS
Six Months Ended March 31, 2000 (Unaudited)
Growth and
Income Income Growth
Portfolio Portfolio Portfolio
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 1,998,575 6,709,762 1,883,393
Cash dividends (net of $658 and $351
foreign taxes withheld at source for the
Growth and Income Portfolio and the
Growth Portfolio, respectively) -- 389,708 213,248
TOTAL INCOME 1,998,575 7,099,470 2,096,641
EXPENSES--NOTE 2(D):
Investment advisory fee--Note 4(a) 194,904 1,046,363 378,045
Shareholder servicing costs--Note 4(b) 31,984 138,236 41,419
Auditing fees 14,199 16,665 15,049
Registration fees 13,595 21,256 12,914
Custodian fees--Note 4(b) 3,579 22,320 9,536
Prospectus and shareholders' reports 3,303 15,554 1,747
Directors' fees and expenses--Note 4(c) 1,809 9,591 2,721
Legal fees 1,019 53,552 2,952
Loan commitment fees--Note 3 475 2,347 685
Miscellaneous 8,643 16,586 3,193
TOTAL EXPENSES 273,510 1,342,470 468,261
INVESTMENT INCOME--NET 1,725,065 5,757,000 1,628,380
Growth and
Income Income Growth
Portfolio Portfolio Portfolio
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS--NOTE 5 ($):
Net realized gain (loss) on investments (160,302) 2,771,565 2,248,209
Net realized gain (loss) on financial futures 299,940 7,060,791 5,190,804
NET REALIZED GAIN (LOSS) 139,638 9,832,356 7,439,013
Net unrealized appreciation (depreciation)
on investments [including $1,584,913,
($1,039,636) and ($184,398) net unrealized
appreciation (depreciation) on financial futures
for the Income Portfolio, the Growth and
Income Portfolio and the Growth Portfolio,
respectively] 982,136 820,175 1,111,076
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS 1,121,774 10,652,531 8,550,089
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 2,846,839 16,409,531 10,178,469
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 2000 Year Ended
INCOME PORTFOLIO (Unaudited) September 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 1,725,065 2,671,877
Net realized gain (loss) on investments 139,638 2,499,116
Net unrealized appreciation
(depreciation) on investments 982,136 (2,406,310)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 2,846,839 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 11,855,349 34,163,058
Investor Class shares 4,909,041 17,711,187
Dividends reinvested:
Restricted Class shares 3,527,886 2,836,547
Investor Class shares 1,098,516 522,995
Cost of shares redeemed:
Restricted Class shares (8,333,938) (31,820,840)
Investor Class shares (5,760,998) (14,079,208)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 7,295,856 9,333,739
TOTAL INCREASE (DECREASE) IN NET ASSETS 5,383,409 8,730,178
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 61,174,443 52,444,265
END OF PERIOD 66,557,852 61,174,443
Undistributed investment income--net 827,183 2,056,920
Six Months Ended
March 31, 2000 Year Ended
INCOME PORTFOLIO (CONTINUED) (Unaudited) September 30, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (SHARES)
RESTRICTED CLASS SHARES
Shares sold 897,017 2,502,527
Shares issued for dividends reinvested 274,544 213,596
Shares redeemed (637,971) (2,325,407)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 533,590 390,716
--------------------------------------------------------------------------------
INVESTOR CLASS SHARES
Shares sold 374,012 1,307,028
Shares issued for dividends reinvested 85,488 39,382
Shares redeemed (443,739) (1,030,673)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 15,761 315,737
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
March 31, 2000 Year Ended
GROWTH AND INCOME PORTFOLIO (Unaudited) September 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 5,757,000 7,773,185
Net realized gain (loss) on investments 9,832,356 19,627,022
Net unrealized appreciation (depreciation)
on investments 820,175 298,845
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 16,409,531 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 11,762,010 49,284,067
Investor Class shares 15,240,204 10,805,692
Dividends reinvested:
Restricted Class shares 20,666,969 12,251,329
Investor Class shares 6,416,255 256,461
Cost of shares redeemed:
Restricted Class shares (28,424,916) (58,520,579)
Investor Class shares (11,983,878) (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 13,676,644 67,372,170
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,808,424 82,561,140
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 272,934,610 190,373,470
END OF PERIOD 275,743,034 272,934,610
Undistributed investment income--net 2,767,282 6,263,750
Six Months Ended
March 31, 2000 Year Ended
GROWTH AND INCOME PORTFOLIO (CONTINUED) (Unaudited) September 30, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (SHARES)
RESTRICTED CLASS SHARES
Shares sold 694,884 2,787,679
Shares issued for dividends reinvested 1,257,880 728,812
Shares redeemed (1,697,483) (3,312,365)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 255,281 204,126
--------------------------------------------------------------------------------
INVESTOR CLASS SHARES
Shares sold 865,585 585,101
Shares issued for dividends reinvested 373,255 14,621
Shares redeemed (678,975) (67,897)
Shares issued in connection
with reorganization--Note 1 -- 2,970,357
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 559,865 3,502,182
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Six Months Ended
March 31, 2000 Year Ended
GROWTH PORTFOLIO (Unaudited) September 30, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 1,628,380 1,781,597
Net realized gain (loss) on investments 7,439,013 9,208,431
Net unrealized appreciation
(depreciation) on investments 1,111,076 3,485,618
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 10,178,469 14,475,646
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Restricted Class shares (1,997,818) (1,457,071)
Investor Class shares (223,624) (73,161)
Net realized gain on investments:
Restricted Class shares (7,926,825) (2,589,945)
Investor Class shares (970,790) (152,993)
TOTAL DIVIDENDS (11,119,057) (4,273,170)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Restricted Class shares 11,489,230 52,573,276
Investor Class shares 16,248,937 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 (9,036,235) (44,050,777)
Investor Class shares (5,038,670) (1,414,942)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 24,671,898 17,830,248
TOTAL INCREASE (DECREASE) IN NET ASSETS 23,731,310 28,032,724
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 88,209,714 60,176,990
END OF PERIOD 111,941,024 88,209,714
Undistributed investment income--net 910,331 1,503,393
Six Months Ended
March 31, 2000 Year Ended
GROWTH PORTFOLIO (CONTINUED) (Unaudited) September 30, 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (SHARES)
RESTRICTED CLASS SHARES
Shares sold 638,734 2,899,690
Shares issued for dividends reinvested 567,754 237,966
Shares redeemed (506,624) (2,434,295)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 699,864 703,361
--------------------------------------------------------------------------------
INVESTOR CLASS SHARES
Shares sold 910,890 351,259
Shares issued for dividends reinvested 68,594 13,375
Shares redeemed (281,231) (78,498)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 698,253 286,136
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single portfolio share. Total return shows how
much your investment in each portfolio would have increased (or decreased)
during each period, assuming you had reinvested all dividends and distributions.
These figures have been derived from the portfolios' financial statements.
<TABLE>
Six Months Ended RESTRICTED CLASS SHARES
-----------------------------------------
March 31, 2000 Year Ended September 30,
-----------------------------------------
INCOME PORTFOLIO (Unaudited) 1999 1998 1997(a) 1996(b) 1995(c)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 13.55 13.78 14.04 13.42 13.52 12.50
Investment Operations:
Investment income--net .35(d) .65(d) .61 .71 .64 .40
Net realized and unrealized
gain (loss) on investments .26 .11 .57 .99 .31 .62
Total from
Investment Operations .61 .76 1.18 1.70 .95 1.02
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 13.15 13.55 13.78 14.04 13.42 13.52
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 4.68(e) 5.66 9.14 13.50 7.30 8.24(e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .39(e) .79 .88 .68 .60 .30(e)
Ratio of net investment income
to average net assets 2.69(e) 4.84 5.15 5.87 5.75 3.08(e)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation -- -- -- .14 .61 .26(e)
Portfolio Turnover Rate 20.66(e) 158.10 64.58 72.08 32.95 5.66(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 50,868 45,221 40,582 22,727 12,889 8,141
(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) FROM MARCH 31, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1995.
(d) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(e) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended INVESTOR CLASS SHARES
-----------------------------------------
INCOME March 31, 2000 Year Ended September 30,
-----------------------------------------
PORTFOLIO (CONTINUED) (Unaudited) 1999 1998 1997(a) 1996(b) 1995(c)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 13.53 13.74 14.01 13.39 13.51 12.50
Investment Operations:
Investment income--net .34(d) .60(d) .65 .72 .73 .39
Net realized and unrealized
gain (loss) on investments .24 .13 .49 .95 .18 .62
Total from
Investment Operations .58 .73 1.14 1.67 .91 1.01
Distributions:
Dividends from
investment income--net (.60) (.61) (.70) (.62) (.60) --
Dividends from net realized
gain on investments (.38) (.33) (.71) (.43) (.43) --
Total Distributions (.98) (.94) (1.41) (1.05) (1.03) --
Net asset value, end of period 13.13 13.53 13.74 14.01 13.39 13.51
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 4.44(e) 5.44 8.92 13.19 7.07 8.08(e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .52(e) 1.07 1.13 .97 .85 .43(e)
Ratio of net investment
income to average net assets 2.55(e) 4.59 4.92 5.52 5.50 2.95(e)
Decrease reflected in above
expense ratios due to
undertakings by The
Dreyfus Corporation -- -- -- .15 .61 .26(e)
Portfolio Turnover Rate 20.66(e) 158.10 64.58 72.08 32.95 5.66(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 15,689 15,953 11,862 10,136 8,701 8,122
(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) FROM MARCH 31, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1995.
(d) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(e) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended RESTRICTED CLASS SHARES
-----------------------------------------
GROWTH AND March 31, 2000 Year Ended September 30,
-----------------------------------------
INCOME PORTFOLIO (Unaudited) 1999 1998 1997(a) 1996(b) 1995(c)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 17.71 16.46 18.43 15.34 14.31 12.50
Investment Operations:
Investment income--net .36(d) .64(d) .70 .58 .33 .27
Net realized and unrealized
gain (loss) on investments .69 1.69 .30 3.16 1.60 1.54
Total from Investment Operations 1.05 2.33 1.00 3.74 1.93 1.81
Distributions:
Dividends from
investment income--net (.62) (.63) (.63) (.34) (.42) --
Dividends from net realized
gain on investments (1.19) (.45) (2.34) (.31) (.48) --
Total Distributions (1.81) (1.08) (2.97) (.65) (.90) --
Net asset value,
end of period 16.95 17.71 16.46 18.43 15.34 14.31
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 6.20(e) 14.51 6.28 25.22 14.17 14.48(e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .44(e) .84 .84 .78 .75 .38(e)
Ratio of net investment income
to average net assets 2.10(e) 3.65 4.06 3.52 3.60 2.10(e)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation -- .01 -- .06 .39 .33(e)
Portfolio Turnover Rate 31.76(e) 142.50 76.78 107.85 122.52 33.55(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 199,649 204,096 186,397 172,705 124,677 9,248
(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) FROM MARCH 31, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1995.
(d) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(e) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended INVESTOR CLASS SHARES
-----------------------------------------
GROWTH AND INCOME March 31, 2000 Year Ended September 30,
-----------------------------------------
PORTFOLIO (CONTINUED) (Unaudited) 1999 1998 1997(a) 1996(b) 1995(c)
-----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 18.43 17.10 19.05 15.43 14.29 12.50
Investment Operations:
Investment income--net .35(d) .45(d) .72(d) .57(d) .90(d) .27
Net realized and unrealized
gain (loss) on investments .72 1.92 .28 3.36 1.12 1.52
Total from Investment Operations 1.07 2.37 1.00 3.93 2.02 1.79
Distributions:
Dividends from
investment income--net (.59) (.59) (.61) -- (.40) --
Dividends from net realized
gain on investments (1.19) (.45) (2.34) (.31) (.48) --
Total Distributions (1.78) (1.04) (2.95) (.31) (.88) --
Net asset value,
end of period 17.72 18.43 17.10 19.05 15.43 14.29
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 6.08(e) 14.17 6.04 25.85 14.84 14.32(e)
-----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .59(e) 1.35 1.08 1.00 1.00 .51(e)
Ratio of net investment income
to average net assets 1.96(e) 3.37 3.81 3.58 3.35 1.98(e)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation -- .06 -- .05 .39 .33(e)
Portfolio Turnover Rate 31.76(e) 142.50 76.78 107.85 122.52 33.55(e)
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 76,094 68,839 3,976 683 160 8,602
(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) FROM MARCH 31, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1995.
(d) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(e) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
FINANCIAL HIGHLIGHTS (CONTINUED)
Six Months Ended RESTRICTED CLASS SHARES
-----------------------------------------
March 31, 2000 Year Ended September 30,
-----------------------------------------
GROWTH PORTFOLIO (Unaudited) 1999 1998 1997(a) 1996(b) 1995(c)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 18.47 15.89 20.52 16.59 14.84 12.50
Investment Operations:
Investment income--net .30(d) .42(d) .52 .41 .28 .21
Net realized and unrealized
gain (loss) on investments 1.67 3.27 (.02) 4.94 2.48 2.13
Total from Investment Operations 1.97 3.69 .50 5.35 2.76 2.34
Distributions:
Dividends from
investment income--net (.47) (.40) (.55) (.30) (.31) --
Dividends from net realized
gain on investments (1.85) (.71) (4.58) (1.12) (.70) --
Total Distributions (2.32) (1.11) (5.13) (1.42) (1.01) --
Net asset value,
end of period 18.12 18.47 15.89 20.52 16.59 14.84
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 11.21(e) 23.93 3.17 34.70 19.73 18.72(e)
-----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .44(e) .96 .94 .83 .75 .38(e)
Ratio of net investment income
to average net assets 1.63(e) 2.33 2.84 2.38 2.38 1.51(e)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation -- -- -- .20 .53 .26(e)
Portfolio Turnover Rate 31.98(e) 95.42 89.23 118.49 77.83 52.86(e)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period ($ x 1,000) 89,746 78,554 56,431 46,960 28,143 11,898
(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) FROM MARCH 31, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1995.
(d) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(e) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Six Months Ended INVESTOR CLASS SHARES
-----------------------------------------
GROWTH March 31, 2000 Year Ended September 30,
-----------------------------------------
PORTFOLIO (CONTINUED) (Unaudited) 1999 1998 1997(a) 1996(b) 1995(c)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value,
beginning of period 18.52 15.93 20.50 16.58 14.82 12.50
Investment Operations:
Investment income--net .27(d) .39(d) .44(d) .62 .32 .19
Net realized and unrealized
gain (loss) on investments 1.69 3.25 .03 4.68 2.42 2.13
Total from Investment Operations 1.96 3.64 .47 5.30 2.74 2.32
Distributions:
Dividends from
investment income--net (.43) (.34) (.46) (.26) (.28) --
Dividends from net realized
gain on investments (1.85) (.71) (4.58) (1.12) (.70) --
Total Distributions (2.28) (1.05) (5.04) (1.38) (.98) --
Net asset value,
end of period 18.20 18.52 15.93 20.50 16.58 14.82
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 11.11(e) 23.50 2.97 34.32 19.58 18.56(e)
-----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets .58(e) 1.24 1.18 1.06 1.00 .51(e)
Ratio of net investment income
to average net assets 1.55(e) 2.14 2.65 2.05 2.08 1.39(e)
Decrease reflected in above
expense ratios due to
undertakings by
The Dreyfus Corporation -- -- -- .27 .53 .26(e)
Portfolio Turnover Rate 31.98(e) 95.42 89.23 118.49 77.83 52.86(e)
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets,
end of period ($ x 1,000) 22,195 9,656 3,746 8,662 14,458 11,939
(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) FROM MARCH 31, 1995 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1995.
(d) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(e) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Portfolios
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--General:
Dreyfus LifeTime Portfolios, Inc. (the "fund") is registered under the
Investment Company Act of 1940, as amended (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, all or substantially all
of the 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 & Income
Portfolio.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of Dreyfus, is 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 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
The Portfolios
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions 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 March 31, 2000, the Income Portfolio, the Growth and Income
Portfolio and the Growth Portfolio received net earnings credits of $1,687,
$2,412 and $2,840, respectively. Income earned under this arrangement is
included in interest income.
(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.
The Growth and Income Portfolio has an unused capital loss carryover of
approximately $164,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to September
30, 1999. The amount of this loss which can be utilized in subsequent years is
subject to an annual limitation due to the portfolio's merger with Dreyfus Asset
Allocation Fund. If not applied, the carryover expires in fiscal 2007.
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 March 31, 2000, no Portfolios borrowed under the Facility.
The Portfolios
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
NOTE 4-Investment Advisory Fee, Sub-Investment Advisory Fee and Other
Transactions with Affiliates:
(a) Pursuant to an investment advisory agreement "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 September 24, 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 March 31, 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 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 March 31, 2000, each Portfolio's Investor Class was
charged the following pursuant to the Shareholder Services Plan:
Income Portfolio $ 20,880
Growth and Income Portfolio 91,709
Growth Portfolio 20,377
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 March 31, 2000, each Portfolio was charged the following pursuant
to the transfer agency agreement:
Income Portfolio $ 4,798
Growth and Income Portfolio 22,068
Growth Portfolio 3,882
Each Portfolio compensates Mellon under a custody agreement for providing
custodial services for each Portfolio. During the period ended March 31, 2000,
each Portfolio was charged the following pursuant to the custody agreement:
Income Portfolio $ 3,579
Growth and Income Portfolio 22,320
Growth Portfolio 9,536
(c) Each director who is not an "affiliated person" as defined in the Act
receives from the fund an annual fee of $1,000 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 5--Securities Transactions:
(a) The following summarizes the aggregate amount of purchases and sales of
investment securities, excluding short-term securities and financial futures,
during the period ended March 31, 2000:
<TABLE>
PURCHASES ($) SALES ($)
-------------------------------------------------------------------
<S> <C> <C>
Income Portfolio 11,949,395 8,913,301
Growth and Income Portfolio 77,853,598 87,285,517
Growth Portfolio 33,549,242 22,266,339
The Portfolios
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
Each Portfolio may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. A Portfolio is exposed to
market risk as a result of changes in the value of the underlying financial
instruments. Investments in financial futures require a portfolio to "mark to
market" on a daily basis, which reflects the change in the market value of the
contract at the close of each day's trading. Typically, variation margin
payments are received or made to reflect daily unrealized gains or losses. When
the contracts are closed, a Portfolio recognizes a realized gain or loss. These
investments require initial margin deposits with a custodian or broker, which
consist of cash or cash equivalents, up to approximately 10% of the contract
amount. The amount of these deposits is determined by the exchange or Board of
Trade on which the contract is traded and is subject to change. Contracts open
at March 31, 2000, are set forth in the Statements of Financial Futures.
(b) The following summarizes accumulated net unrealized appreciation
(depreciation) on investments and financial futures for each Portfolio at March
31, 2000:
<TABLE>
GROSS GROSS
APPRECIATION ($) (DEPRECIATION) ($) NET ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Income Portfolio 988,188 (1,375,807) (387,619)
Growth and
Income Portfolio 20,374,582 (9,585,585) 10,788,997
Growth Portfolio 12,602,752 (4,180,098) 8,422,654
</TABLE>
At March 31, 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 March 31, 2000 was as follows:
Income Portfolio $ 67,306,118
Growth and Income Portfolio 260,376,353
Growth Portfolio 101,354,928
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 DRPSA003
