File No. 33-51061
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 1 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 1 [X]
(Check appropriate box or boxes.)
DREYFUS FOCUS FUNDS, INC.
(Exact Name of Registrant as Specified in Charter)
c/o The Dreyfus Corporation
200 Park Avenue, New York, New York 10166
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (212) 922-6000
Daniel C. Maclean III, Esq.
200 Park Avenue
New York, New York 10166
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box)
immediately upon filing pursuant to paragraph (b) of Rule 485
----
X on July 1, 1994 pursuant to paragraph (b) of Rule 485
----
60 days after filing pursuant to paragraph (a) of Rule 485
----
on (date) pursuant to paragraph (a) of Rule 485
----
Registrant has registered an indefinite number of shares of its common
stock under the Securities Act of 1933 pursuant to Section 24(f) of the
Investment Company Act of 1940. Registrant's Rule 24f-2 Notice for the
fiscal year ending October 31, 1994 will be filed on or about December 31,
1994.
DREYFUS FOCUS FUNDS, INC.
Cross-Reference Sheet Pursuant to Rule 495(a)
Items in
Part A of
Form N-1A Caption Page
_________ _______ ____
1 Cover Page Cover
2 Synopsis 2
3 Condensed Financial Information 3
4 General Description of Registrant 3, 25
5 Management of the Fund 14
5(a) Management's Discussion of Fund's Performance *
6 Capital Stock and Other Securities 25
7 Purchase of Securities Being Offered 15
8 Redemption or Repurchase 20
9 Pending Legal Proceedings *
Items in
Part B of
Form N-1A
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10 Cover Page Cover
11 Table of Contents Cover
12 General Information and History B-26
13 Investment Objectives and Policies B-2
14 Management of the Fund B-9
15 Control Persons and Principal B-11
Holders of Securities
16 Investment Advisory and Other B-12
Services
_____________________________________
NOTE: * Omitted since answer is negative or inapplicable.
DREYFUS FOCUS FUNDS, INC.
Cross-Reference Sheet Pursuant to Rule 495(a) (continued)
Items in
Part B of
Form N-1A Caption Page
_________ _______ _____
17 Brokerage Allocation B-24
18 Capital Stock and Other Securities B-26
19 Purchase, Redemption and Pricing B-14,16,21
of Securities Being Offered
20 Tax Status *
21 Underwriters B-1, 12
22 Calculations of Performance Data B-26
23 Financial Statements B-28
Items in
Part C of
Form N-1A
_________
24 Financial Statements and Exhibits C-1
25 Persons Controlled by or Under C-4
Common Control with Registrant
26 Number of Holders of Securities C-4
27 Indemnification C-4
28 Business and Other Connections of C-5
Investment Adviser
29 Principal Underwriters C-29
30 Location of Accounts and Records C-38
31 Management Services C-38
32 Undertakings C-38
_____________________________________
NOTE: * Omitted since answer is negative or inapplicable.
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PROSPECTUS JULY 1, 1994
DREYFUS FOCUS FUNDS, INC.
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DREYFUS FOCUS FUNDS, INC. (THE "FUND") IS AN OPEN-END, MANAGEMENT INVE
STMENT COMPANY, KNOWN AS A MUTUAL FUND. THE FUND PERMITS YOU TO INVEST IN FOUR
SEPARATE DIVERSIFIED PORTFOLIOS (EACH, A "PORTFOLIO"): DREYFUS LARGE COMPANY
GROWTH; DREYFUS LARGE COMPANY VALUE; DREYFUS SMALL COMPANY GROWTH; AND DREYFUS
SMALL COMPANY VALUE. EACH PORTFOLIO'S INVESTMENT OBJECTIVE IS CAPITAL APPRECI
ATION. EACH PORTFOLIO SEEKS TO ACHIEVE ITS INVESTMENT OBJECTIVE BY INVESTING
IN A PORTFOLIO OF PUBLICLY-TRADED COMMON STOCKS IN ONE OF FOUR SUB-CATEGORIES
OF COMPANIES WHICH MEET CERTAIN CRITERIA ESTABLISHED BY THE DREYFUS
CORPORATION. IN ADDITION TO USUAL INVESTMENT PRACTICES, EACH PORTFOLIO USES
SPECULATIVE INVESTMENT TECHNIQUES SUCH AS SHORT-SELLING, BORROWING FOR
INVESTMENT PURPOSES, AND FUTURES AND OPTIONS TRANSACTIONS.
THE DREYFUS CORPORATION PROFESSIONALLY MANAGES EACH PORTFOLIO.
SHARES OF EACH PORTFOLIO BEAR CERTAIN COSTS PURSUANT TO A DISTRIBUTION
PLAN ADOPTED IN ACCORDANCE WITH RULE 12B-1 UNDER THE INVESTMENT COMPANY ACT
OF 1940 AND A SHAREHOLDER SERVICES PLAN.
YOU CAN PURCHASE OR REDEEM SHARES BY TELEPHONE USING DREYFUS TELETRANS
FER.
THIS PROSPECTUS SETS FORTH CONCISELY INFORMATION ABOUT THE FUND THAT
YOU SHOULD KNOW BEFORE INVESTING. IT SHOULD BE READ AND RETAINED FOR FUTURE
REFERENCE.
PART B (ALSO KNOWN AS THE STATEMENT OF ADDITIONAL INFORMATION), DATED
JULY 1, 1994, WHICH MAY BE REVISED FROM TIME TO TIME, PROVIDES A FURTHER DISCU
SSION OF CERTAIN AREAS IN THIS PROSPECTUS AND OTHER MATTERS WHICH MAY BE OF IN
TEREST TO SOME INVESTORS. IT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION AND IS INCORPORATED HEREIN BY REFERENCE. FOR A FREE COPY, WRITE TO
THE FUND AT 144 GLENN CURTISS BOULEVARD, UNIONDALE, NEW YORK 11556-0144, OR
CALL 1-800-645-6561. WHEN TELEPHONING, ASK FOR OPERATOR 666.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED O
R ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. THE NET
ASSET VALUE OF FUNDS OF THIS TYPE WILL FLUCTUATE FROM TIME TO TIME.
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TABLE OF CONTENTS
PAGE
ANNUAL FUND OPERATING EXPENSES.................... 2
CONDENSED FINANCIAL INFORMATION................... 3
DESCRIPTION OF THE FUND........................... 3
MANAGEMENT OF THE FUND............................ 15
HOW TO BUY FUND SHARES............................ 16
SHAREHOLDER SERVICES.............................. 17
HOW TO REDEEM FUND SHARES......................... 20
DISTRIBUTION PLAN AND SHAREHOLDER SERVICES PLAN... 23
DIVIDENDS, DISTRIBUTIONS AND TAXES................ 23
PERFORMANCE INFORMATION........................... 24
GENERAL INFORMATION............................... 25
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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ANNUAL FUND OPERATING EXPENSES
(as a percentage of average daily net assets)
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
<S> <C> <C> <C> <C>
Management Fees.................... .75% .75% .75% .75%
12b-1 Fees......................... .50% .50% .50% .50%
Other Expenses..................... 1.21% 1.25% 1.18% 1.26%
Total Portfolio Operating Expenses. 2.46% 2.50% 2.43% 2.51%
</TABLE>
EXAMPLE:
An investor would pay the
following expenses on a $1,000
investment, assuming (1) 5%
annual return and (2) redemption
at the end of each time period:
1 YEAR............................. $25 $25 $25 $25
3 YEARS............................ $77 $78 $76 $78
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THE AMOUNTS LISTED IN THE EXAMPLE SHOULD NOT BE CONSIDERED AS
REPRESENTATIVE OF PAST OR FUTURE EXPENSES AND ACTUAL EXPENSES MAY BE GREATER
OR LESS THAN THOSE INDICATED. MOREOVER, WHILE THE EXAMPLE
ASSUMES A 5% ANNUAL RETURN, EACH PORTFOLIO'S ACTUAL PER
FORMANCE WILL VARY AND MAY RESULT IN AN ACTUAL RETURN GREATER OR LESS THAN 5%.
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The purpose of the foregoing table is to assist you in understanding
the various costs and expenses borne by the Fund, and therefore indirectly by
investors, the payment of which will reduce investors' return on an annual
basis. Other Expenses and Total Portfolio Operating Expenses are based on
estimated amounts for the current fiscal year. The information in the foregoing
table does not reflect any fee waivers or expense reimbursement arrangements
that may be in effect. Certain Service Agents (as defined below) may charge
their clients direct fees for effecting transactions in Fund shares; such fees
are not reflected in the foregoing table. Long-term investors could pay more in
12b-1 fees than the economic equivalent of paying a front-end sales charge. For
a further description of the various costs and expenses incurred in the
operation of the Fund, as well as expense reimbursement or waiver arrangements,
see "Management of the Fund," "How to Buy Fund Shares" and "Distribution Plan
and Shareholder Services Plan."
Page 2
CONDENSED FINANCIAL INFORMATION
The table below sets forth certain information covering the Fund's
investment results for the period indicated. Further financial data and
related notes are included in the Statement of Additional Information,
available upon request.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share
of Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each Portfolio for the period December
29, 1993 (commencement of operations) through April 30, 1994 (unaudited).
This information has been derived from information provided in the Fund's
financial statements.
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period..... $12.50 $12.50 $12.50 $12.50
------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net .................. .07 .10 .04 .13
Net realized and unrealized (loss) on investments..... (.56) (.14) (.69) (.16)
------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS......... (.49) (.04) (.65) (.03)
------- ------- ------- -------
Net asset value, end of period........... $12.01 $12.46 $11.85 $12.47
======= ======= ======= ======
TOTAL INVESTMENT RETURN*................... (3.92%) (.32%) (5.20%) (.24%)
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets*. -- -- -- --
Ratio of dividends on securities sold short to
average net assets*..................... -- -- -- .01%
Ratio of net investment income to average net assets *..... .55% .77% .29% 1.02%
Decrease reflected in above expense ratio due to
undertaking by The Dreyfus Corporation*.... .83% .85% .82% .86%
Portfolio Turnover Rate*................. 2.92% 9.37% 12.59% 23.27%
Net Assets, end of period (000's omitted).... $4,873 $5,069 $4,819 $5,131
- ----------------
*Not annualized.
</TABLE>
DESCRIPTION OF THE FUND
GENERAL - The Fund is a "series fund," which is a mutual fund divided into
separate portfolios. Each Portfolio is treated as a separate entity for
certain matters under the Investment Company Act of 1940 and for other
purposes, and a shareholder of one Portfolio is not deemed to be a
shareholder of any other Portfolio. As described below, for certain matters
Fund shareholders vote together as a group; as to others they vote separately
by Portfolio.
INVESTMENT OBJECTIVE - Each Portfolio's goal is capital appreciation. Each
Portfolio's investment objective cannot be changed without approval by the
holders of a majority (as defined in the Investment Company Act of 1940) of
such Portfolio's outstanding voting shares. There can be no assurance that a
Portfolio's investment objective will be achieved.
MANAGEMENT POLICIES - DREYFUS LARGE COMPANY GROWTH invests, under normal
market conditions, substantially all of its assets in equity securities of
issuers with market capitalizations of between $900 million and $90 billion
identified by The Dreyfus Corporation as growth companies.
Page 3
DREYFUS LARGE COMPANY VALUE invests, under normal market conditions,
substantially all of its assets in equity securities of issuers with market
capitalizations of between $900 million and $90 billion identified by The
Dreyfus Corporation as value companies.
DREYFUS SMALL COMPANY GROWTH invests, under normal market conditions,
substantially all of its assets in equity securities of issuers with market
capitalizations of between $90 million and $900 million identified by The
Dreyfus Corporation as growth companies.
DREYFUS SMALL COMPANY VALUE invests, under normal market conditions,
substantially all of its assets in equity securities of issuers with market
capitalizations of between $90 million and $900 million identified by The
Dreyfus Corporation as value companies.
To determine whether a company's stock falls within the growth or
value classification, The Dreyfus Corporation analyzes each company based on
fundamental factors such as price to book value ratios, price to earnings
ratios, earnings growth, dividend payout ratios, return on equity, and the
company's beta (a measure of stock price volatility relative to the market
generally). In general, The Dreyfus Corporation believes that companies with
relatively low price to book ratios, low price to earnings ratios and higher
than average dividend payments in relation to price should be classified as
value companies. Alternatively, companies which have above average earnings
or sales growth and retention of earnings and command higher price to
earnings ratios fit the more classic growth description.
The Dreyfus Corporation anticipates that at least 65% of the value of
each Portfolio's total assets (except when maintaining a temporary defensive
position) will be invested in equity securities of domestic and foreign
issuers. Equity securities consist of common stocks, convertible securities
and preferred stocks. Each Portfolio may invest, in anticipation of investing
cash positions, in money market instruments consisting of U.S. Government
securities, certificates of deposit, time deposits, bankers' acceptances,
short-term investment grade corporate bonds and other short-term debt
instruments, and repurchase agreements, as set forth under "Certain Portfolio
Securities" below. Under normal market conditions, the Fund does not expect
to have a substantial portion of its assets invested in money market
instruments. However, when The Dreyfus Corporation determines that adverse
market conditions exist, each Portfolio may adopt a temporary defensive
posture and invest all of its assets in money market instruments.
In an effort to increase each Portfolio's returns, the Fund may
engage in various investment techniques which, if successful, would produce
short-term capital gains. The use of investment techniques such as
short-selling, borrowing for investment purposes, engaging in foreign
exchange transactions, engaging in options and futures transactions and
lending of portfolio securities involves greater risk than that incurred by
many other funds. Options and futures transactions involve so-called
"derivative securities." You should purchase shares of a Portfolio only as a
supplement to an overall investment program and only if you are willing to
undertake the risks involved.
INVESTMENT TECHNIQUES
LEVERAGE THROUGH BORROWING - Each Portfolio may borrow for investment
purposes. This borrowing, which is known as leveraging, generally will be
unsecured, except to the extent a Portfolio enters into reverse repurchase
agreements described below. The Investment Company Act of 1940 requires each
Portfolio to maintain continuous asset coverage (that is, total assets
including borrowings, less liabilities exclusive of borrowings) of 300% of
the amount borrowed. If the 300% asset coverage should decline as a result of
market fluctuations or other reasons, a Portfolio may be required to sell
some of its portfolio holdings within three days to reduce the debt and
restore the 300% asset coverage, even though it may be disadvantageous from
an investment standpoint to sell securities at that time. Leveraging may
exaggerate the effect on net asset value of any increase or decrease in the
market value of the Portfolio's investment securities. Money borrowed for
leveraging will be subject to interest costs that may or may not be recovered
by appreciation of the securities purchased; in certain cases, interest costs
may exceed the return received on the securities purchased. Each Portfolio
also may be required to maintain minimum average balances in connection with
such borrowing or to pay a commitment or other fee to maintain a line of
credit; either of these requirements would increase the cost of borrowing
over the stated interest rate.
Among the forms of borrowing in which each Portfolio may engage is
the entry into reverse repurchase agreements with banks, brokers or dealers.
These transactions involve the transfer by a Portfolio of an underlying
Page 4
debt
instrument in return for cash proceeds based on a percentage of the value of
the security. The Portfolio retains the right to receive interest and
principal payments on the security. At an agreed upon future date, the
Portfolio repurchases the security at principal, plus accrued interest. In
certain types of agreements, there is no agreed upon repurchase date and
interest payments are calculated daily, often based on the prevailing
overnight repurchase rate. Each Portfolio will maintain in a segregated
custodial account cash or U.S. Government securities or other high quality
liquid debt securities at least equal to the aggregate amount of its reverse
repurchase obligations, plus accrued interest, in certain cases, in
accordance with releases promulgated by the Securities and Exchange
Commission. The Securities and Exchange Commission views reverse repurchase
transactions as collateralized borrowings by the relevant Portfolio. These
agreements, which are treated as if reestablished each day, are expected to
provide the Portfolios with a flexible borrowing tool.
SHORT-SELLING - Each Portfolio may make short sales, which are transactions
in which the Portfolio sells a security it does not own in anticipation of a
decline in the market value of that security. To complete such a transaction,
the Portfolio must borrow the security to make delivery to the buyer. The
Portfolio then is obligated to replace the security borrowed by purchasing it
at the market price at the time of replacement. The price at such time may be
more or less than the price at which the security was sold by the Portfolio.
Until the security is replaced, the Portfolio is required to pay to the
lender amounts equal to any dividends, interest or other distributions which
accrue during the period of the loan. To borrow the security, the Portfolio
also may be required to pay a premium, which would increase the cost of the
security sold. The proceeds of the short sale will be retained by the broker,
to the extent necessary to meet margin requirements, until the short position
is closed out.
Until a Portfolio closes its short position or replaces the borrowed
security, the Portfolio will: (a) maintain a segregated account, containing
cash or U.S. Government securities, at such a level that (i) the amount
deposited in the account plus the amount deposited with the broker as
collateral will equal the current value of the security sold short and (ii)
the amount deposited in the segregated account plus the amount deposited with
the broker as collateral will not be less than the market value of the
security at the time it was sold short; or (b) otherwise cover its short
position.
A Portfolio will incur a loss as a result of the short sale if the
price of the security increases between the date of the short sale and the
date on which the Portfolio replaces the borrowed security. A Portfolio will
realize a gain if the security declines in price between those dates. This
result is the opposite of what one would expect from a cash purchase of a
long position in a security. The amount of any gain will be decreased, and
the amount of any loss increased, by the amount of any premium or amounts in
lieu of dividends, interest or other distributions the Portfolio may be
required to pay in connection with a short sale.
Each Portfolio may purchase call options to provide a hedge against
an increase in the price of a security sold short by the Portfolio. When a
Portfolio purchases a call option it has to pay a premium to the person
writing the option and a commission to the broker selling the option. If the
option is exercised by the Portfolio, the premium and the commission paid may
be more than the amount of the brokerage commission charged if the security
were to be purchased directly. See "Call and Put Options on Specific
Securities" below.
The Fund anticipates that the frequency of short sales on behalf of a
Portfolio will vary substantially under different market conditions, and it
does not intend that any specified portion of a Portfolio's assets, as a
matter of practice, will be invested in short sales. However, no securities
will be sold short if, after effect is given to any such short sale, the
total market value of all securities sold short by a Portfolio would exceed
25% of the value of such Portfolio's net assets. A Portfolio may not sell
short the securities of any single issuer listed on a national securities
exchange to the extent of more than 5% of the value of such Portfolio's net
assets. A Portfolio may not sell short the securities of any class of an
issuer to the extent, at the time of the transaction, of more than 5% of the
outstanding securities of that class.
In addition to the short sales discussed above, each Portfolio may
make short sales "against the box," a transaction in which the Portfolio
enters into a short sale of a security which such Portfolio owns. The
proceeds of the short sale will be held by a broker until the settlement date
at which time the Portfolio delivers the security to close the short
position. The Portfolio receives the net proceeds from the short sale. The
Fund at no time will have more than 15% of the value of a Portfolio's net asse
ts in deposits on short sales against the box.
Page 5
FOREIGN CURRENCY TRANSACTIONS - Each Portfolio may engage in currency
exchange transactions to the extent consistent with its investment objective
or to hedge its portfolio. Each Portfolio will conduct its currency exchange
transactions either on a spot (i.e., cash) basis at the rate prevailing in
the currency exchange market, or through entering into forward contracts to
purchase or sell currencies. A forward currency exchange contract involves an
obligation to purchase or sell a specific currency at a future date, which
must be more than two days from the date of the contract, at a price set at
the time of the contract. Forward currency exchange contracts are entered
into in the interbank market conducted directly between currency traders
(typically commercial banks or other financial institutions) and their
customers. Each Portfolio also may combine forward currency exchange
contracts with investments in securities denominated in other currencies.
Each Portfolio also may maintain short positions in forward currency
exchange transactions, which would involve the Portfolio agreeing to exchange
an amount of a currency it did not currently own for another currency at a
future date in anticipation of a decline in the value of the currency sold
relative to the currency the Portfolio contracted to receive in the exchange.
The Portfolio will maintain in a segregated custodial account cash or U.S.
Government securities or other high quality liquid debt securities at least
equal to the aggregate amount of its short positions, plus accrued interest,
in certain cases, in accordance with releases promulgated by the Securities
and Exchange Commission.
OPTIONS ON FOREIGN CURRENCY - Each Portfolio may purchase and sell call and
put options on foreign currency for the purpose of hedging against changes in
future currency exchange rates. Call options convey the right to buy the
underlying currency at a price which is expected to be lower than the spot
price of the currency at the time the option expires. Put options convey the
right to sell the underlying currency at a price which is anticipated to be
higher than the spot prices of the currency at the time the option expires.
Each Portfolio may use foreign currency options for the same purposes as
forward currency exchange and futures transactions, as described herein. See
also "Call and Put Options on Specific Securities" and "Currency Futures and
Options on Currency Futures" below.
CALL AND PUT OPTIONS ON SPECIFIC SECURITIES - Each Portfolio may invest up to
5% of its assets, represented by the premium paid, in the purchase of call
and put options in respect of specific securities (or groups or "baskets" of
specific securities) in which the Portfolio may invest. Each Portfolio may
write covered call and put option contracts to the extent of 20% of the value
of its net assets at the time such option contracts are written. A call
option gives the purchaser of the option the right to buy, and obligates the
writer to sell, the underlying security or securities at the exercise price
at any time during the option period. Conversely, a put option gives the
purchaser of the option the right to sell, and obligates the writer to buy,
the underlying security or securities at the exercise price at any time
during the option period. A covered call option sold by a Portfolio, which is
a call option with respect to which the Portfolio owns the underlying
security or securities, exposes the Portfolio during the term of the option
to possible loss of opportunity to realize appreciation in the market price
of the underlying security or securities or to possible continued holding of
a security or securities which might otherwise have been sold to protect
against depreciation in the market price thereof. A covered put option sold
by a Portfolio exposes the Portfolio during the term of the option to a
decline in price of the underlying security or securities. A put option sold
by a Portfolio is covered when, among other things, cash or liquid securities
are placed in a segregated account with the Fund's custodian to fulfill the
obligation undertaken.
To close out a position when writing covered options, a Portfolio may
make a "closing purchase transaction," which involves purchasing an option on
the same security or securities with the same exercise price and expiration
date as the option which it has previously written. To close out a position
as a purchaser of an option, a Portfolio may make a "closing sale
transaction," which involves liquidating the Portfolio's position by selling
the option previously purchased. A Portfolio will realize a profit or loss
from a closing purchase or sale transaction depending upon the difference
between the amount paid to purchase an option and the amount received from
the sale thereof.
The Fund intends to treat options in respect of specific securities
that are not traded on a national securities exchange and the securities
underlying covered call options written by the Portfolios as illiquid
securities. See "Certain Portfolio Securities - Illiquid Securities" below.
Page 6
Each Portfolio will purchase options only to the extent permitted by
the policies of state securities authorities in states where shares of the
Portfolio are qualified for offer and sale.
STOCK INDEX OPTIONS - Each Portfolio may purchase and write put and call
options on stock indexes listed on U.S. securities exchanges or traded in the
over-the-counter market. A stock index fluctuates with changes in the market
values of the stocks included in the index.
The effectiveness of purchasing or writing stock index options will
depend upon the extent to which price movements in the Portfolio's
investments correlate with price movements of the stock index selected.
Because the value of an index option depends upon movements in the level of
the index rather than the price of a particular stock, whether a Portfolio
will realize a gain or loss from the purchase or writing of options on an
index depends upon movements in the level of stock prices in the stock market
generally or, in the case of certain indexes, in an industry or market
segment, rather than movements in the price of a particular stock.
Accordingly, successful use by each Portfolio of options on stock indexes
will be subject to The Dreyfus Corporation's ability to predict correctly
movements in the direction of the stock market generally or of a particular
industry. This requires different skills and techniques than predicting
changes in the price of individual stocks.
When a Portfolio writes an option on a stock index, the Portfolio
will place in a segregated account with the Fund's custodian or sub-custodian
cash or liquid securities in an amount at least equal to the market value of
the underlying stock index and will maintain the account while the option is
open or otherwise will cover the transaction.
FUTURES TRANSACTIONS - IN GENERAL - The Fund is not a commodity pool.
However, as a substitute for a comparable market position in the underlying
securities and for hedging purposes, each Portfolio may engage in futures
and options on futures transactions as described below.
Each Portfolio may trade futures contracts and options on futures
contracts in U.S. domestic markets, such as the Chicago Board of Trade and
the International Monetary Market of the Chicago Mercantile Exchange, or, to
the extent permitted under applicable law, on exchanges located outside the
United States, such as the London International Financial Futures Exchange
and the Sydney Futures Exchange Limited. Foreign markets may offer
advantages, such as trading in commodities that are not currently traded in
the United States or arbitrage possibilities, not available in the United
States. Foreign markets, however, may have greater risk potential than
domestic markets. See "Risk Factors - Foreign Commodity Transactions" below.
Each Portfolio's commodities transactions must constitute bona fide
hedging or other permissible transactions pursuant to regulations promulgated
by the Commodity Futures Trading Commission (the "CFTC"). In addition, a
Portfolio may not engage in such transactions if the sum of the amount of
initial margin deposits and premiums paid for unexpired commodity options,
other than for bona fide hedging transactions, would exceed 5% of the
liquidation value of the Portfolio's assets, after taking into account
unrealized profits and unrealized losses on such contracts it has entered
into; provided, however, that in the case of an option that is in-the-money
at the time of purchase, the in-the money amount may be excluded in
calculating the 5%. Pursuant to regulations and/or published positions of the
Securities and Exchange Commission, each Portfolio may be required to
segregate cash or high quality money market instruments in connection with
its commodities transactions in an amount generally equal to the value of the
underlying commodity.
Initially, when purchasing or selling futures contracts a Portfolio
will be required to deposit with the Fund's custodian in the broker's name an
amount of cash or cash equivalents up to approximately 10% of the contract
amount. This amount is subject to change by the exchange or board of trade on
which the contract is traded and members of such exchange or board of trade
may impose their own higher requirements. This amount is known as "initial
margin" and is in the nature of a performance bond or good faith deposit on
the contract which is returned to the Portfolio upon termination of the
futures position, assuming all contractual obligations have been satisfied.
Subsequent payments, known as "variation margin," to and from the broker will
be made daily as the price of the index or securities underlying the futures
contract fluctuates, making the long and short positions in the futures
contract more or less valuable, a process known as "marking-to-market." At
any time prior to the expiration of a futures contract, the Portfolio may
elect to close the position by
Page 7
taking an opposite position at the then
prevailing price, which will operate to terminate the Portfolio's existing
position in the contract.
Although each Portfolio intends to purchase or sell futures contracts
only if there is an active market for such contracts, no assurance can be
given that a liquid market will exist for any particular contract at any
particular time. Many futures exchanges and boards of trade limit the amount
of fluctuation permitted in futures contract prices during a single trading
day. Once the daily limit has been reached in a particular contract, no
trades may be made that day at a price beyond the limit or trading may be
suspended for specified periods during the trading day. Futures contract
prices could move to the limit for several consecutive trading days with
little or no trading, thereby preventing prompt liquidation of futures
positions and potentially subjecting a Portfolio to substantial losses. If it
is not possible or the Portfolio determines not to close a futures position
in anticipation of adverse price movements, the Portfolio will be required to
make daily cash payments of variation margin. In such circumstances, an
increase in the value of the portion of a Portfolio's securities being
hedged, if any, may offset partially or completely losses on the futures
contract. However, no assurance can be given that the price of the securities
being hedged will correlate with the price movements in a futures contract
and thus provide an offset to losses on the futures contract.
In addition, to the extent a Portfolio is engaging in a futures
transaction as a hedging device, due to the risk of an imperfect correlation
between securities owned by the Portfolio that are the subject of a hedging
transaction and the futures contract used as a hedging device, it is possible
that the hedge will not be fully effective in that, for example, losses on
the portfolio securities may be in excess of gains on the futures contract or
losses on the futures contract may be in excess of gains on the portfolio
securities that were the subject of the hedge. In futures contracts based on
indexes, the risk of imperfect correlation increases as the composition of a
Portfolio's securities vary from the composition of the index. In an effort
to compensate for the imperfect correlation of movements in the price of the
securities being hedged and movements in the price of futures contracts, the
Portfolio may buy or sell futures contracts in a greater or lesser dollar
amount than the dollar amount of the securities being hedged if the
historical volatility of the futures contract has been less or greater than
that of the securities. Such "over hedging" or "under hedging" may adversely
affect a Portfolio's net investment results if market movements are not as
anticipated when the hedge is established.
Successful use of futures by a Portfolio also is subject to The
Dreyfus Corporation's ability to predict correctly movements in the direction
of the market or interest rates. For example, if a Portfolio has hedged
against the possibility of a decline in the market adversely affecting the
value of securities held in its portfolio and prices increase instead, the
Portfolio will lose part or all of the benefit of the increased value of
securities which it has hedged because it will have offsetting losses in its
futures positions. In addition, in such situations, if the Portfolio has
insufficient cash, it may have to sell securities to meet daily variation
margin requirements. Such sales of securities may, but will not necessarily,
be at increased prices which reflect the rising market. The Portfolio may
have to sell securities at a time when it may be disadvantageous to do so.
An option on a futures contract gives the purchaser the right, in
return for the premium paid, to assume a position in a futures contract (a
long position if the option is a call and a short position if the option is a
put) at a specified exercise price at any time during the option exercise
period. The writer of the option is required upon exercise to assume an
offsetting futures position (a short position if the option is a call and a
long position if the option is a put). Upon exercise of the option, the
assumption of offsetting futures positions by the writer and holder of the
option will be accompanied by delivery of the accumulated cash balance in the
writer's futures margin account which represents the amount by which the
market price of the futures contract, at exercise, exceeds, in the case of a
call, or is less than, in the case of a put, the exercise price of the option
on the futures contract.
Call options sold by a Portfolio with respect to futures contracts
will be covered by, among other things, entering into a long position in the
same contract at a price no higher than the strike price of the call option,
or by ownership of the instruments underlying, or instruments the prices of
which are expected to move relatively consistently with the instruments
underlying, the futures contract. Put options sold by a Portfolio with
Page 8
respect to futures contracts will be covered in the same manner as put
options on specific securities as described above.
STOCK INDEX FUTURES AND OPTIONS ON STOCK INDEX FUTURES - Each Portfolio may
purchase and sell stock index futures contracts and options on stock index
futures contracts.
A stock index future obligates the seller to deliver (and the
purchaser to take) an amount of cash equal to a specific dollar amount times
the difference between the value of a specific stock index at the close of
the last trading day of the contract and the price at which the agreement is
made. No physical delivery of the underlying stocks in the index is made.
With respect to stock indexes that are permitted investments, each Portfolio
intends to purchase and sell futures contracts on the stock index for which
it can obtain the best price with consideration also given to liquidity.
The price of stock index futures may not correlate perfectly with the
movement in the stock index because of certain market distortions. First, all
participants in the futures market are subject to margin deposit and
maintenance requirements. Rather than meeting additional margin deposit
requirements, investors may close futures contracts through offsetting
transactions which would distort the normal relationship between the index
and futures markets. Secondly, from the point of view of speculators, the
deposit requirements in the futures market are less onerous than margin
requirements in the securities market. Therefore, increased participation by
speculators in the futures market also may cause temporary price distortions.
INTEREST RATE FUTURES CONTRACTS AND OPTIONS ON INTEREST RATE FUTURES CONTRACTS
- Each Portfolio may invest in interest rate futures contracts and options
on interest rate futures contracts as a substitute for a comparable market
position and to hedge against adverse movements in interest rates.
To the extent a Portfolio has invested in interest rate futures
contracts or options on interest rate futures contracts as a substitute for a
comparable market position, the Portfolio will be subject to the investment
risks of having purchased the securities underlying the contract.
Each Portfolio may purchase call options on interest rate futures
contracts to hedge against a decline in interest rates and may purchase put
options on interest rate futures contracts to hedge its portfolio securities
against the risk of rising interest rates.
Each Portfolio may sell call options on interest rate futures
contracts to partially hedge against declining prices of its portfolio
securities. If the futures price at expiration of the option is below the
exercise price, the Portfolio will retain the full amount of the option
premium which provides a partial hedge against any decline that may have
occurred in such Portfolio's holdings. Each Portfolio may sell put options on
interest rate futures contracts to hedge against increasing prices of the secu
rities which are deliverable upon exercise of the futures contract. If the
futures price at expiration of the option is higher than the exercise price,
the Portfolio will retain the full amount of the option premium which
provides a partial hedge against any increase in the price of securities
which the Portfolio intends to purchase. If a put or call option sold by a
Portfolio is exercised, the Portfolio will incur a loss which will be reduced
by the amount of the premium it receives. Depending on the degree of
correlation between changes in the value of its portfolio securities and
changes in the value of its futures positions, a Portfolio's losses from
existing options on futures may to some extent be reduced or increased by
changes in the value of its portfolio securities.
Each Portfolio also may sell options on interest rate futures
contracts as part of closing purchase transactions to terminate its options
positions. No assurance can be given that such closing transactions can be
effected or that there will be a correlation between price movements in the
options on interest rate futures and price movements in a Portfolio's
securities which are the subject of the hedge. In addition, a Portfolio's
purchase of such options will be based upon predictions as to anticipated inte
rest rate trends, which could prove to be inaccurate.
CURRENCY FUTURES AND OPTIONS ON CURRENCY FUTURES - Each Portfolio may
purchase and sell currency futures contracts and options thereon. See "Call
and Put Options on Specific Securities" above. By selling foreign currency
futures, the Portfolio can establish the number of U.S. dollars it will receiv
e in the delivery month for a certain amount of a foreign currency. In this
way, if the Portfolio anticipates a decline of a foreign
Page 9
currency against the
U.S. dollar, the Portfolio can attempt to fix the U.S. dollar value of some
or all of its securities that are denominated in that currency. By purchasing
foreign currency futures, the Portfolio can establish the number of U.S.
dollars it will be required to pay for a specified amount of a foreign
currency in the delivery month. Thus, if the Portfolio intends to buy
securities in the future and expects the U.S. dollar to decline against the
relevant foreign currency during the period before the purchase is effected,
the Portfolio, for the price of the currency future, can attempt to fix the
price in U.S. dollars of the securities it intends to acquire.
The purchase of options on currency futures will allow each
Portfolio, for the price of the premium it must pay for the option, to decide
whether or not to buy (in the case of a call option) or to sell (in the case
of a put option) a futures contract at a specified price at any time during
the period before the option expires. If the Portfolio, in purchasing an
option, has been correct in its judgment concerning the direction in which
the price of a foreign currency would move as against the U.S. dollar, it may
exercise the option and thereby take a futures position to hedge against the
risk it had correctly anticipated or close out the option position at a gain
that will offset, to some extent, currency exchange losses otherwise suffered
by the Portfolio. If exchange rates move in a way the Portfolio did not
anticipate, the Portfolio will have incurred the expense of the option
without obtaining the expected benefit. As a result, the Portfolio's profits
on the underlying securities transactions may be reduced or overall losses
incurred.
OPTIONS ON SWAPS - Each Portfolio may purchase cash-settled options on equity
index swaps in pursuit of its investment objective. Equity index swaps
involve the exchange by a Portfolio with another party of cash flows based
upon the performance of an index or a portion of an index of securities which
usually include dividends. A cash-settled option on a swap gives the
purchaser the right, but not the obligation, in return for the premium paid,
to receive an amount of cash equal to the value of the underlying swap as of
the exercise date. These options typically are purchased in privately
negotiated transactions from financial institutions, including securities
brokerage firms.
A Portfolio usually will enter into swap transactions on a net basis.
In so doing, the two payment streams are netted out, with the Portfolio
receiving or paying, as the case may be, only the net amount of the two
payments. If a Portfolio enters into a swap, it would maintain a segregated
account in the full amount accrued on a daily basis of the Portfolio's
obligations with respect to the swap. If there is a default by the other
party to such a transaction, the Portfolio will have contractual remedies
pursuant to the agreements related to the transaction.
The use of swaps is a highly specialized activity which involves
investment techniques and risks different from those associated with ordinary
portfolio security transactions. There is no limit on the amount of swap
transactions that may be entered into by a Portfolio. These transactions do
not involve the delivery of securities or other underlying assets or
principal. Accordingly, the risk of loss with respect to swaps is limited to
the net amount of payments that a Portfolio is contractually obligated to
make. If the other party to a swap defaults, the Portfolio's risk of loss
consists of the net amount of payments that the Fund contractually is
entitled to receive.
FUTURE DEVELOPMENTS - Each Portfolio may take advantage of opportunities in
the area of options and futures contracts and options on futures contracts
and any other derivative investments which are not presently contemplated for
use by the Portfolios or which are not currently available but which may be
developed, to the extent such opportunities are both consistent with the
Portfolio's investment objective and legally permissible for the Portfolio.
Before entering into such transactions or making any such investment on
behalf of a Portfolio, the Fund will provide appropriate disclosure in its
prospectus.
LENDING PORTFOLIO SECURITIES - From time to time, each Portfolio may lend
securities from its portfolio to brokers, dealers and other financial
institutions needing to borrow securities to complete certain transactions.
Such loans may not exceed 33-1/3% of the value of such Portfolio's total
assets. In connection with such loans, the Portfolio will receive collateral
consisting of cash, U.S. Government securities or irrevocable letters of
credit which will be maintained at all times in an amount equal to at least
100% of the current market value of the loaned securities. Each Portfolio can
increase its income through the investment of such collateral. The Portfolio
engaging in the portfolio loan transaction continues to be entitled to
payments in amounts equal to the interest, dividends or other distributions
payable on the loaned security and receives interest on the amount of the
loan.
Page 10
Such loans will be terminable at any time upon specified notice. A
Portfolio might experience risk of loss if the institution with which it has
engaged in a portfolio loan transaction breaches its agreement with the
Portfolio.
CERTAIN PORTFOLIO SECURITIES
CONVERTIBLE SECURITIES - Each Portfolio may purchase convertible securities,
which are fixed-income securities, such as bonds or preferred stock, which
may be converted at a stated price within a specified period of time into a
specified number of shares of common stock of the same or a different issuer.
Convertible securities are senior to common stock in a corporation's capital
structure, but usually are subordinated to non-convertible debt securities.
While providing a fixed-income stream (generally higher in yield than the
income derivable from a common stock, but lower than that afforded by a
non-convertible debt security), a convertible security also affords an
investor the opportunity, through its conversion feature, to participate in
the capital appreciation of the common stock into which it is convertible.
The convertible securities in which each Portfolio may invest must be rated
at least Baa by Moody's Investors Service, Inc. ("Moody's") or at least BBB
by Standard & Poor's Corporation ("S&P") or, if unrated, deemed to be of
comparable quality by The Dreyfus Corporation. Convertible securities rated
Baa by Moody's or BBB by S&P are considered investment grade obligations
which lack outstanding investment characteristics and have speculative
characteristics as well.
In general, the market value of a convertible security is the higher
of its "investment value" (i.e., its value as a fixed-income security) or its
"conversion value" (i.e., the value of the underlying shares of common stock
if the security is converted). As a fixed-income security, the market value
of a convertible security generally increases when interest rates decline and
generally decreases when interest rates rise. However, the price of a
convertible security also is influenced by the market value of the security's
underlying common stock. Thus, the price of a convertible security generally
increases as the market value of the underlying stock increases, and
generally decreases as the market value of the underlying stock declines.
Investments in convertible securities generally entail less risk than
investments in the common stock of the same issuer.
U.S. GOVERNMENT SECURITIES - Each Portfolio may purchase securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities, which
include U.S. Treasury securities that differ in their interest rates,
maturities and times of issuance. Treasury Bills have initial maturities of
one year or less; Treasury Notes have initial maturities of one to ten years;
and Treasury Bonds generally have initial maturities of greater than ten
years. Some obligations issued or guaranteed by U.S. Government agencies and
instrumentalities, for example, Government National Mortgage Association
pass-through certificates, are supported by the full faith and credit of the
U.S. Treasury; others, such as those of the Federal Home Loan Banks, by the
right of the issuer to borrow from the U.S. Treasury; others, such as those
issued by the Federal National Mortgage Association, by discretionary
authority of the U.S. Government to purchase certain obligations of the
agency or instrumentality; and others, such as those issued by the Student
Loan Marketing Association, only by the credit of the agency or
instrumentality. These securities bear fixed, floating or variable rates of
interest. Principal and interest may fluctuate based on generally recognized
reference rates or the relationship of rates. While the U.S. Government
provides financial support to such U.S. Government-sponsored agencies or
instrumentalities, no assurance can be given that it will always do so,
because the U.S. Government is not obligated to do so by law.
ZERO COUPON SECURITIES - Each Portfolio may invest in zero coupon U.S.
Treasury securities, which are Treasury Notes and Bonds that have been
stripped of their unmatured interest coupons, the coupons themselves and
receipts or certificates representing interests in such stripped debt
obligations and coupons. Each Portfolio also may invest in zero coupon
securities issued by corporations and financial institutions which constitute
a proportionate ownership of the issuer's pool of underlying U.S. Treasury
securities. A zero coupon security pays no interest to its holder during its
life and is sold at a discount to its face value at maturity. The amount of
the discount fluctuates with the market price of the security. The market
prices of zero coupon securities generally are more volatile than the market
prices of securities that pay interest periodically and are likely to respond
to a greater degree to changes in interest rates than non-zero coupon
securities having similar maturities and credit qualities.
Page 11
BANK OBLIGATIONS - Each Portfolio may purchase certificates of deposit, time
deposits, bankers' acceptances and other short-term obligations of domestic
banks, foreign subsidiaries of domestic banks, foreign branches of domestic
banks, and domestic and foreign branches of foreign banks, domestic savings
and loan associations and other banking institutions. With respect to such
securities issued by foreign branches of domestic banks, foreign subsidiaries
of domestic banks, and domestic and foreign branches of foreign banks, the
Fund may be subject to additional investment risks that are different in some
respects from those incurred by a fund which invests only in debt obligations
of U.S. domestic issuers. Such risks include possible future political and
economic developments, the possible imposition of foreign withholding taxes
on interest income payable on the securities, the possible establishment of
exchange controls or the adoption of other foreign governmental restrictions
which might adversely affect the payment of principal and interest on these
securities and the possible seizure or nationalization of foreign deposits.
See "Risk Factors -- Investing in Foreign Securities" below.
Certificates of deposit are negotiable certificates evidencing the
obligation of a bank to repay funds deposited with it for a specified period
of time.
Time deposits are non-negotiable deposits maintained in a banking
institution for a specified period of time at a stated interest rate. Time
deposits which may be held by each Portfolio will not benefit from insurance
from the Bank Insurance Fund or the Savings Association Insurance Fund
administered by the Federal Deposit Insurance Corporation. No Portfolio will
invest more than 15% of the value of its net assets in time deposits that are
illiquid and in other illiquid securities.
Bankers' acceptances are credit instruments evidencing the obligation
of a bank to pay a draft drawn on it by a customer. These instruments reflect
the obligation both of the bank and of the drawer to pay the face amount of
the instrument upon maturity. The other short-term obligations may include
uninsured, direct obligations bearing fixed, floating or variable interest
rates.
REPURCHASE AGREEMENTS - Repurchase agreements involve the acquisition by a
Portfolio of an underlying debt instrument, subject to an obligation of the
seller to repurchase, and the Portfolio to resell, the instrument at a fixed
price, usually not more than one week after its purchase. Certain costs may
be incurred in connection with the sale of the securities if the seller does
not repurchase them in accordance with the repurchase agreement. In addition,
if bankruptcy proceedings are commenced with respect to the seller of the
securities, realization on the securities by the Fund may be delayed or
limited.
COMMERCIAL PAPER AND OTHER SHORT-TERM CORPORATE OBLIGATIONS - Commercial
paper consists of short-term, unsecured promissory notes issued to finance
short-term credit needs. The commercial paper purchased by a Portfolio will
consist only of direct obligations which, at the time of their purchase, are
(a) rated not lower than Prime-1 by Moody's, A-1 by S&P, F-1 by Fitch
Investors Service, Inc. ("Fitch") or Duff-1 by Duff & Phelps, Inc. ("Duff"),
(b) issued by companies having an outstanding unsecured debt issue currently
rated not lower than Aa3 by Moody's or AA- by S&P, Fitch or Duff, or (c) if
unrated, determined by The Dreyfus Corporation to be of comparable quality to
those rated obligations which may be purchased by the Portfolio. Each
Portfolio may purchase floating and variable rate demand notes and bonds,
which are obligations ordinarily having stated maturities in excess of one
year, but which permit the holder to demand payment of principal at any time
or at specified intervals.
WARRANTS - Each Portfolio may invest up to 5% of its net assets in warrants,
except that this limitation does not apply to warrants acquired in units or
attached to securities. Included within that amount, but not to exceed 2% of
the of the value of the Fund's net assets, may be warrants which are not
listed on the New York Stock Exchange or American Stock Exchange. A warrant
is an instrument issued by a corporation which gives the holder the right to
subscribe to a specified amount of the corporation's capital stock at a set
price for a specified period of time.
ILLIQUID SECURITIES - Each Portfolio may invest up to 15% of the value of its
net assets in securities as to which a liquid trading market does not exist,
provided such investments are consistent with the Portfolio's investment
objective. Such securities may include securities that are not readily
marketable, such as certain securities that are subject to legal or
contractual restrictions on resale and repurchase agreements providing
Page 12
for settlement in more than seven days after notice. As to these securities, a
Portfolio is subject to a risk that should the Fund desire to sell them when
a ready buyer is not available at a price the Fund deems representative of
their value, the value of the Portfolio's net assets could be adversely
affected.
CERTAIN FUNDAMENTAL POLICIES
Each Portfolio may (i) borrow money to the extent permitted under the
Investment Company Act of 1940; (ii) invest up to 5% of its total assets in
the obligations of any issuer, except that up to 25% of the value of its
total assets may be invested, and securities issued or guaranteed by the U.S.
Government, its agencies or instrumentalities may be purchased, without
regard to any such limitation; and (iii) invest up to 25% of its total assets
in the securities of issuers in a single industry, provided that there shall
be no such limitation on investments in securities issued or guaranteed by
the U.S. Government, its agencies or instrumentalities. This paragraph
describes fundamental policies that cannot be changed as to a Portfolio
without approval by the holders of a majority (as defined in the Investment
Company Act of 1940) of such Portfolio's outstanding voting shares. See
"Investment Objective and Management Policies - Investment Restrictions" in
the Fund's Statement of Additional Information.
CERTAIN ADDITIONAL NON-FUNDAMENTAL POLICIES
Each Portfolio may (i) purchase securities of any company having less
than three years' continuous operation (including operations of any
predecessors) if such purchase does not cause the value of such Portfolio's
investments in all such companies to exceed 5% of the value of its total
assets; (ii) pledge, hypothecate, mortgage or otherwise encumber its assets,
but only to secure permitted borrowings; and (iii) invest up to 15% of the
value of its net assets in repurchase agreements providing for settlement in
more than seven days after notice and in other illiquid securities. See
"Investment Objective and Management Policies - Investment Restrictions" in
the Fund's Statement of Additional Information.
RISK FACTORS
INVESTING IN FOREIGN SECURITIES - Foreign securities markets generally are
not as developed or efficient as those in the United States. Securities of
some foreign issuers are less liquid and more volatile than securities of
comparable U.S. issuers. Similarly, volume and liquidity in most foreign
securities markets are less than in the United States and, at times,
volatility of price can be greater than in the United States. The issuers of
some of these securities, such as foreign bank obligations, may be subject to
less stringent or different regulations than are U.S. issuers. In addition,
there may be less publicly available information about a non-U.S. issuer, and
non-U.S. issuers generally are not subject to uniform accounting and
financial reporting standards, practices and requirements comparable to those
applicable to U.S. issuers.
Because stock certificates and other evidences of ownership of such
securities usually are held outside the United States, each Portfolio will be
subject to additional risks which include possible adverse political and
economic developments, possible seizure or nationalization of foreign
deposits and possible adoption of governmental restrictions that might
adversely affect the payment of principal, interest and dividends on the
foreign securities or might restrict the payment of principal, interest and
dividends to investors located outside the country of the issuers, whether
from currency blockage or otherwise. Custodial expenses for a portfolio of
non-U.S. securities generally are higher than for a portfolio of U.S.
securities.
Since foreign securities often are purchased with and payable in
currencies of foreign countries, the value of these assets as measured in
U.S. dollars may be affected favorably or unfavorably by changes in currency
rates and exchange control regulations. Some currency exchange costs may be
incurred when the Portfolios change investments from one country to another.
Furthermore, some of these securities may be subject to brokerage
taxes levied by foreign governments, which have the effect of increasing the
cost of such investment and reducing the realized gain or increasing the
realized loss on such securities at the time of sale. Income received by the
Portfolios from sources within foreign countries may be reduced by
withholding or other taxes imposed by such countries. Tax conventions between
certain countries and the United States, however, may reduce or eliminate
such taxes. All such taxes paid by a Portfolio will reduce its net income
available for distribution to investors.
Page 13
FOREIGN CURRENCY EXCHANGE - Currency exchange rates may fluctuate
significantly over short periods of time. They generally are determined by
the forces of supply and demand in the foreign exchange markets and the
relative merits of investments in different countries, actual or perceived
changes in interest rates and other complex factors, as seen from an
international perspective. Currency exchange rates also can be affected
unpredictably by intervention by U.S. or foreign governments or central
banks, or the failure to intervene, or by currency controls or political
developments in the United States or abroad.
The foreign currency market offers less protection against defaults
in the forward trading of currencies than is available when trading in
currencies occurs on an exchange. Since a forward currency contract is not
guaranteed by an exchange or clearinghouse, a default on the contract would
deprive a Portfolio of unrealized profits or force a Portfolio to cover its
commitments for purchase or resale, if any, at the current market price.
FOREIGN COMMODITY TRANSACTIONS - Unlike trading on domestic commodity
exchanges, trading on foreign commodity exchanges is not regulated by the
CFTC and may be subject to greater risks than trading on domestic exchanges.
For example, some foreign exchanges are principal markets so that no common
clearing facility exists and a trader may look only to the broker for
performance of the contract. In addition, unless a Portfolio hedges against
fluctuations in the exchange rate between the U.S. dollar and the currencies
in which trading is done on foreign exchanges, any profits that the Portfolio
might realize in trading could be eliminated by adverse changes in the
exchange rate, or the Portfolio could incur losses as a result of those
changes. Transactions on foreign exchanges may include both commodities which
are traded on domestic exchanges and those which are not.
OTHER INVESTMENT CONSIDERATIONS - Each Portfolio's net asset value is not
fixed and should be expected to fluctuate. You should purchase Portfolio
shares only as a supplement to an overall investment program and only if you
are willing to undertake the risks involved.
Investors should be aware that equity securities fluctuate in value,
often based on factors unrelated to the value of the issuer of the
securities, and that fluctuations can be pronounced. Changes in the value of
a Portfolio's securities will result in changes in the value of such
Portfolio's shares and thus the Portfolio's yield and total return to
investors.
The use of investment techniques such as leveraging, short-selling,
engaging in financial futures and options transactions, entering into equity
index swaps and options on swaps and lending portfolio securities involves
greater risk than that incurred by many other funds with similar objectives.
Using these techniques may produce higher than normal portfolio turnover
which usually generates additional brokerage commissions and expenses. In
addition, short-term gains realized from portfolio transactions are taxable
to shareholders as ordinary income. The Fund's ability to engage in certain
short-term transactions may be limited by the requirement that, to qualify as
a regulated investment company, each Portfolio must earn less than 30% of its
gross income from the disposition of securities held for less than three
months. This 30% test limits the extent to which a Portfolio may sell
securities held for less than three months, write options expiring in less
than three months and invest in certain futures contracts, among other
strategies. With exception of the above requirement, the amount of investment
activity will not be a limiting factor when making investment decisions.
Under normal market conditions, a Portfolio's turnover rate generally will not
exceed 150%. See "Portfolio Transactions" in the Statement of Additional
Information.
Investment decisions for each Portfolio are made independently from
those of other investment companies advised by The Dreyfus Corporation.
However, if such other investment companies are prepared to invest in, or
desire to dispose of, securities of the type in which a Portfolio invests at
the same time as such Portfolio, available investments or opportunities for
sales will be allocated equitably to each. In some cases, this procedure may
adversely affect the size of the position obtained for or disposed of by the
Portfolio or the price paid or received by the Portfolio.
page 14
MANAGEMENT OF THE FUND
The Dreyfus Corporation, located at 200 Park Avenue, New York, New
York 10166, was formed in 1947 and serves as the Fund's investment adviser.
As of May 31, 1994, The Dreyfus Corporation managed or administered
approximately $72 billion in assets for more than 1.9 million investor
accounts nationwide.
The Dreyfus Corporation supervises and assists in the overall
management of the Fund's affairs under a Management Agreement with the Fund,
subject to the overall authority of the Fund's Board of Directors in
accordance with Maryland law. The primary investment officer of Dreyfus Large
Company Growth and Dreyfus Small Company Growth is Howard Stein. He has held
that position since the Fund's inception and has been Chief Executive Officer
of The Dreyfus Corporation since 1965. The primary investment officer of
Dreyfus Large Company Value and Dreyfus Small Company Value is Ernest G.
Wiggins, Jr. He has held that position since the Fund's inception and has
been an employee of The Dreyfus Corporation since December 1993. From 1992 to
December 1993, Mr. Wiggins was President of Gabelli International and, prior
thereto, he held various positions with Fidelity Management and
ResearchCompany. The Fund's other investment officers are identified under
"Management of the Fund" in the Fund's Statement of Additional Information.
The Dreyfus Corporation also provides research services for the Fund as well
as for other funds advised by The Dreyfus Corporation through a professional
staff of portfolio managers and security analysts.
Under the terms of the Management Agreement, the Fund has agreed to
pay The Dreyfus Corporation a monthly fee at the annual rate of .75 of 1% of
the value of each Portfolio's average daily net assets. The management fee is
higher than that paid by most other investment companies. From time to time,
The Dreyfus Corporation may waive receipt of its fees and/or voluntarily
assume certain expenses of a Portfolio, which would have the effect of
lowering the overall expense ratio of that Portfolio and increasing yield to
investors at the time such amounts are waived or assumed, as the case may be.
The Fund will not pay The Dreyfus Corporation at a later time for any amounts
it may waive, nor will the Fund reimburse The Dreyfus Corporation for any
amounts it may assume. For the period December 29, 1993 (commencement of
operations) through April 30, 1994, no management fee was paid by the Fund
pursuant to an undertaking by The Dreyfus Corporation.
All expenses incurred in the operation of the Fund are borne by the
Fund, except to the extent specifically assumed by The Dreyfus Corporation.
The expenses borne by the Fund include: organizational costs, taxes,
interest, loan commitment fees, dividends and interest paid on securities
sold short, brokerage fees and commissions, if any, fees of Directors who are
not officers, directors, employees or holders of 5% or more of the
outstanding voting securities of The Dreyfus Corporation, Securities and
Exchange Commission fees, state Blue Sky qualification fees, advisory fees,
charges of custodians, transfer and dividend disbursing agents' fees, certain
insurance premiums, industry association fees, outside auditing and legal
expenses, costs of maintaining corporate existence, costs of independent
pricing services, costs attributable to investor services (including, without
limitation, telephone and personnel expenses), costs of shareholders' reports
and corporate meetings, costs of preparing and printing certain prospectuses
and statements of additional information, and any extraordinary expenses.
Expenses attributable to a particular Portfolio are charged against the
assets of that Portfolio; other expenses of the Fund are allocated among the
Portfolios on the basis determined by the Board of Directors, including, but
not limited to, proportionately in relation to the net assets of each
Portfolio.
In addition, the Fund is subject to an annual distribution fee for
advertising, marketing and distributing Portfolio shares and an annual
service fee for ongoing personal services relating to shareholder accounts
and services related to the maintenance of shareholder accounts. See
"Distribution Plan and Shareholder Services Plan."
The Dreyfus Corporation may pay Dreyfus Service Corporation for
shareholder and distribution services from The Dreyfus Corporation's own
assets, including past profits but not including the management fee paid by
the Fund. Dreyfus Service Corporation may use part or all of such payments to
pay Service Agents in respect of these services.
The Shareholder Services Group, Inc., a subsidiary of First Data
Corporation, P.O. Box 9671, Providence, Rhode Island 02940-9671, is the
Fund's Transfer and Dividend Disbursing Agent (the "Transfer Agent"). The
Bank of New York, 110 Washington Street, New York, New York 10286, is the
Fund's Custodian.
Page 15
HOW TO BUY FUND SHARES
The Fund's distributor is Dreyfus Service Corporation, a wholly-owned
subsidiary of The Dreyfus Corporation located at 200 Park Avenue, New York,
New York 10166. The shares it distributes are not deposits or obligations of
The Dreyfus Security Savings Bank, F.S.B. and therefore are not insured by
the Federal Deposit Insurance Corporation.
You can purchase Portfolio shares through Dreyfus Service Corporation
or certain financial institutions, securities dealers and other industry
professionals (collectively, "Service Agents") that have entered into
agreements with Dreyfus Service Corporation. Stock certificates are issued
only upon your written request. No certificates are issued for fractional
shares. The Fund reserves the right to reject any purchase order.
Management understands that some Service Agents may impose certain
conditions on their clients which are different from those described in this
Prospectus, and, to the extent permitted by applicable regulatory authority,
may charge their clients direct fees which would be in addition to any
amounts which might be received under the Distribution Plan or Shareholder
Services Plan. Each Service Agent has agreed to transmit to its clients a
schedule of such fees. You should consult your Service Agent in this regard.
The minimum initial investment is $2,500, or $1,000 if you are a
client of a Service Agent which has made an aggregate minimum initial
purchase for its customers of $2,500. Subsequent investments must be at least
$100. The initial investment must be accompanied by the Fund's Account
Application. For full-time or part-time employees of The Dreyfus Corporation
or any of its affiliates or subsidiaries, directors of The Dreyfus
Corporation, Board members of a fund advised by The Dreyfus Corporation,
including members of the Fund's Board, or the spouse or minor child of any of
the foregoing, the minimum initial investment is $1,000. For full-time or
part-time employees of The Dreyfus Corporation or any of its affiliates or
subsidiaries who elect to have a portion of their pay directly deposited into
their Fund account, the minimum initial investment is $50. The Fund reserves
the right to offer Portfolio shares without regard to minimum purchase
requirements to employees participating in certain qualified or non-qualified
employee benefit plans or other programs where contributions or account
information can be transmitted in a manner and form acceptable to the Fund.
The Fund reserves the right to vary further the initial and subsequent
investment minimum requirements at any time.
You may purchase Portfolio shares by check or wire, or through the
Dreyfus TELETRANSFER Privilege described below. Checks should be made payable
to "The Dreyfus Family of Funds," or, if for Dreyfus retirement plan
accounts, to "The Dreyfus Trust Company, Custodian" and should specify the
Portfolio in which you are investing. Payments to open new accounts which are
mailed should be sent to The Dreyfus Family of Funds, P.O. Box 9387,
Providence, Rhode Island 02940-9387, together with your Account Application.
For subsequent investments, your Fund account number should appear on the
check and an investment slip should be enclosed and sent to The Dreyfus
Family of Funds, P.O. Box 105, Newark, New Jersey 07101-0105. For Dreyfus
retirement plan accounts, both initial and subsequent investments should be
sent to The Dreyfus Trust Company, Custodian, P.O. Box 6427, Providence,
Rhode Island 02940-6427. Neither initial nor subsequent investments should be
made by third party check. Purchase orders may be delivered in person only to
a Dreyfus Financial Center. THESE ORDERS WILL BE FORWARDED TO THE FUND AND
WILL BE PROCESSED ONLY UPON RECEIPT THEREBY. For the location of the nearest
Dreyfus Financial Center, please call one of the telephone numbers listed
under "General Information."
Wire payments may be made if your bank account is in a commercial
bank that is a member of the Federal Reserve System or any other bank having
a correspondent bank in New York City. Immediately available funds may be
transmitted by wire to The Bank of New York, together with the applicable
Portfolio's DDA# as shown below, for purchase of shares in your name:
DDA# 8900088125/Dreyfus Focus Funds, Inc./Dreyfus Large Company Growth
DDA# 8900088133/Dreyfus Focus Funds, Inc./Dreyfus Large Company Value
DDA# 8900088141/Dreyfus Focus Funds, Inc./Dreyfus Small Company Growth
DDA# 8900088168/Dreyfus Focus Funds, Inc./Dreyfus Small Company Value
Page 16
The wire must include your Fund account number (for new accounts, your
Taxpayer Identification Number ("TIN") should be included instead), account
registration and dealer number, if applicable. If your initial purchase of
Portfolio shares is by wire, please call 1-800-645-6561 after completing your
wire payment to obtain your Fund account number. Please include your Fund
account number on the Fund's Account Application and promptly mail the
Account Application to the Fund, as no redemptions will be permitted until
the Account Application is received. You may obtain further information about
remitting funds in this manner from your bank. All payments should be made in
U.S. dollars and, to avoid fees and delays, should be drawn only on U.S.
banks. A charge will be imposed if any check used for investment in your
account does not clear. The Fund makes available to certain large
institutions the ability to issue purchase instructions through compatible
computer facilities.
Subsequent investments also may be made by electronic transfer of
funds from an account maintained in a bank or other domestic financial
institution that is an Automated Clearing House member. You must direct the
institution to transmit immediately available funds through the Automated
Clearing House to The Bank of New York with instructions to credit your Fund
account. The instructions must specify your Fund account registration and
your Fund account number PRECEDED BY THE DIGITS "1111."
Shares of each Portfolio are sold on a continuous basis at net asset
value per share next determined after an order in proper form is received by
the Transfer Agent or other agent. Net asset value per share is determined as
of the close of trading on the floor of the New York Stock Exchange
(currently 4:00 p.m., New York time), on each day the New York Stock Exchange
is open for business. For purposes of determining net asset value, options
and futures contracts will be valued 15 minutes after the close of trading on
the floor of the New York Stock Exchange. Net asset value per share is
computed by dividing the value of the Portfolio's net assets (i.e., the value
of its assets less liabilities) by the total number of such Portfolio's
shares outstanding. Each Portfolio's investments are valued based on market
value or, where market quotations are not readily available, based on fair
value as determined in good faith by the Fund's Board of Directors. For
further information regarding the methods employed in valuing the Portfolios'
investments, see "Determination of Net Asset Value" in the Fund's Statement
of Additional Information.
Federal regulations require that you provide a certified TIN upon
opening or reopening an account. See "Dividends, Distributions and Taxes" and
the Fund's Account Application for further information concerning this
requirement. Failure to furnish a certified TIN to the Fund could subject you
to a $50 penalty imposed by the Internal Revenue Service (the "IRS").
DREYFUS TeleTransfer PRIVILEGE
You may purchase Portfolio shares (minimum $500, maximum $150,000 per
day) by telephone if you have checked the appropriate box and supplied the
necessary information on the Fund's Account Application or have filed a
Shareholder Services Form with the Transfer Agent. The proceeds will be
transferred between the bank account designated in one of these documents and
your Fund account. Only a bank account maintained in a domestic financial
institution which is an Automated Clearing House member may be so designated.
The Fund may modify or terminate this Privilege at any time or charge a
service fee upon notice to shareholders. No such fee currently is
contemplated.
If you have selected the Dreyfus TELETRANSFER Privilege, you may
request a Dreyfus TELETRANSFER purchase of Portfolio shares by calling
1-800-221-4060 or, if you are calling from overseas, call 1-401-455-3306.
SHAREHOLDER SERVICES
The services and privileges described under this heading may not be
available to clients of certain Service Agents and some Service Agents may
impose certain conditions on their clients which are different from those in
this Prospectus. You should consult your Service Agent in this regard.
EXCHANGE PRIVILEGE
The Exchange Privilege enables you to purchase, in exchange for
shares of a Portfolio, shares in one of the other Portfolios or shares of
certain other funds managed or administered by The Dreyfus Corporation, to
Page 17
the extent such shares are offered for sale in your state of residence. These
funds have different investment objectives which may be of interest to you.
The exchange privilege may be exercised twice during the calendar year as
described below. If you desire to use this Privilege, you should consult your
Service Agent or Dreyfus Service Corporation to determine if it is available
and whether any other conditions are imposed on its use.
To use this Privilege, you, or your Service Agent acting on your
behalf, must give exchange instructions to the Transfer Agent in writing, by
wire or by telephone. If you previously have established the Telephone
Exchange Privilege, you may telephone exchange instructions by calling
1-800-221-4060 or, if you are calling from overseas, call 1-401-455-3306. See
"How to Redeem Fund Shares - Procedures." Before any exchange, you must
obtain and should review a copy of the current prospectus of the fund into
which the exchange is being made. Prospectuses may be obtained from Dreyfus
Service Corporation. Except in the case of Personal Retirement Plans, the
shares being exchanged must have a current value of at least $500;
furthermore, when establishing a new account by exchange, the shares being
exchanged must have a value of at least the minimum initial investment
required for the fund into which the exchange is being made. Telephone
exchanges may be made only if the appropriate "YES" box has been checked on
the Account Application, or a separate signed Shareholder Services Form is on
file with the Transfer Agent. Upon an exchange into a new account, the
following shareholder services and privileges, as applicable and where
available, will be automatically carried over to the fund into which the
exchange is made: Exchange Privilege, Wire Redemption Privilege, Telephone
Redemption Privilege, Dreyfus TELETRANSFER Privilege and the dividend/capital
gain distribution option (except for Dreyfus Dividend Sweep) selected by the
investor.
Shares will be exchanged at the next determined net asset value;
however, a sales load may be charged with respect to exchanges into funds
sold with a sales load. If you are exchanging into a fund that charges a
sales load, you may qualify for share prices which do not include the sales
load or which reflect a reduced sales load, if the shares of the fund from
which you are exchanging were: (a) purchased with a sales load, (b) acquired
by a previous exchange from shares of the Fund purchased with a sales load,
or (c) acquired through reinvestment of dividends or distributions paid with
respect to the foregoing categories of shares. To qualify, at the time of
your exchange you must notify the Transfer Agent or your Service Agent must
notify Dreyfus Service Corporation. Any such qualification is subject to
confirmation of your holdings through a check of appropriate records. See
"Shareholder Services" in the Statement of Additional Information. No fees
currently are charged shareholders directly in connection with exchanges,
although the Fund reserves the right, upon not less than 60 days' written
notice, to charge shareholders a nominal fee in accordance with rules
promulgated by the Securities and Exchange Commission. The Fund reserves the
right to reject any exchange request in whole or in part. The Exchange
Privilege may be modified or terminated at any time upon notice to
shareholders.
The exchange of shares of one fund for shares of another is treated
for Federal income tax purposes as a sale of the shares given in exchange by
the shareholder and, therefore, an exchanging shareholder may realize a
taxable gain or loss.
DREYFUS AUTO-EXCHANGE PRIVILEGE
Dreyfus Auto-Exchange Privilege enables you to invest regularly (on a
semi-monthly, monthly, quarterly or annual basis), in exchange for shares of
a Portfolio, in shares of one of the other Portfolios or shares of certain
other funds in the Dreyfus Family of Funds of which you are currently an
investor. The amount you designate, which can be expressed either in terms of
a specific dollar or share amount ($100 minimum), will be exchanged
automatically on the first and/or fifteenth day of the month according to the
schedule you have selected. Shares will be exchanged at the then-current net
asset value; however, a sales load may be charged with respect to exchanges
into funds sold with a sales load. See "Shareholder Services" in the
Statement of Additional Information. The right to exercise this Privilege may
be modified or canceled by the Fund or the Transfer Agent. You may modify or
cancel your exercise of this Privilege at any time by mailing written
notification to The Dreyfus Family of Funds, P.O. Box 9671, Providence, Rhode
Island 02940-9671. The Fund may charge a service fee for the use of this
Privilege. No such fee currently is contemplated. The exchange of shares of
one fund for shares of another is treated for Federal income tax purposes as
a sale of the shares given in exchange by
Page 18
the shareholder and, therefore, an
exchanging shareholder may realize a taxable gain or loss. For more
information concerning this Privilege and the funds in the Dreyfus Family of
Funds eligible to participate in this Privilege, or to obtain a Dreyfus
Auto-Exchange Authorization Form, please call toll free 1-800-645-6561.
DREYFUS-AUTOMATIC ASSET BUILDER
Dreyfus-AUTOMATIC Asset Builder permits you to purchase Portfolio
shares (minimum of $100 and maximum of $150,000 per transaction) at regular
intervals selected by you. Portfolio shares are purchased by transferring
funds from the bank account designated by you. At your option, the account
designated by you will be debited in the specified amount, and Portfolio
shares will be purchased, once a month, on either the first or fifteenth day,
or twice a month, on both days. Only an account maintained at a domestic
financial institution which is an Automated Clearing House member may be so
designated. To establish a Dreyfus-AUTOMATIC Asset Builder account, you must
file an authorization form with the Transfer Agent. You may obtain the
necessary authorization form from Dreyfus Service Corporation. You may cancel
your participation in this Privilege or change the amount of purchase at any
time by mailing written notification to The Dreyfus Family of Funds, P.O. Box
9671, Providence, Rhode Island 02940-9671, or, if for Dreyfus retirement plan
accounts, to The Dreyfus Trust Company, Custodian, P.O. Box 6427, Providence,
Rhode Island 02940-6427, and the notification will be effective three
business days following receipt. The Fund may modify or terminate this
Privilege at any time or charge a service fee. No such fee currently is
contemplated.
DREYFUS GOVERNMENT DIRECT DEPOSIT PRIVILEGE
Dreyfus Government Direct Deposit Privilege enables you to purchase
Portfolio shares (minimum of $100 and maximum of $50,000 per transaction) by
having Federal salary, Social Security, or certain veterans', military or
other payments from the Federal government automatically deposited into your
Fund account. You may deposit as much of such payments as you elect. To
enroll in Dreyfus Government Direct Deposit, you must file with the Transfer
Agent a completed Direct Deposit Sign-Up Form for each type of payment that
you desire to include in the Privilege. The appropriate form may be obtained
from Dreyfus Service Corporation. Death or legal incapacity will terminate
your participation in this Privilege. You may elect at any time to terminate
your participation by notifying in writing the appropriate Federal agency.
Further, the Fund may terminate your participation upon 30 days' notice to
you.
DREYFUS DIVIDEND OPTIONS
Dreyfus Dividend Sweep enables you to invest automatically dividends
or dividends and capital gain distributions, if any, paid by a Portfolio in
shares of another Portfolio of the Fund or shares of another fund in the
Dreyfus Family of Funds of which you are a shareholder. Shares of the other
fund will be purchased at the then-current net asset value; however, a sales
load may be charged with respect to investments in shares of a fund sold with
a sales load. If you are investing in a fund that charges a sales load, you
may qualify for share prices which do not include the sales load or which
reflect a reduced sales load. If you are investing in a fund that charges a
contingent deferred sales charge, the shares purchased will be subject on
redemption to the contingent deferred sales charge, if any, applicable to the
purchased shares. See "Shareholder Services" in the Statement of Additional
Information. Dreyfus Dividend ACH permits you to transfer electronically on
the payment date dividends or dividends and capital gain distributions, if
any, from a Portfolio to a designated bank account. Only an account
maintained at a domestic financial institution which is an Automated Clearing
House member may be so designated. Banks may charge a fee for this service.
For more information concerning these privileges, or to request a
Dividend Options Form, please call toll free 1-800-645-6561. You may cancel
these privileges by mailing written notification to The Dreyfus Family of
Funds, P.O. Box 9671, Providence, Rhode Island 02940-9671. To select a new
fund after cancellation you must submit a new Dividend Options Form.
Enrollment in or cancellation of these privileges is effective three business
days following receipt. These privileges are available only for existing
accounts and may not be used to open new accounts. Minimum subsequent
investments do not apply for Dreyfus Dividend Sweep. The Fund
Page 19
may modify or terminate these privileges at any time or charge a service
fee. No such fee currently is contemplated. Shares held under Keogh Plans,
IRAs or other retirement plans are not eligible for Dreyfus Dividend Sweep.
DREYFUS PAYROLL SAVINGS PLAN
Dreyfus Payroll Savings Plan permits you to purchase Portfolio shares
(minimum of $100 per transaction) automatically on a regular basis. Depending
upon your employer's direct deposit program, you may have part or all of your
paycheck transferred to your existing Dreyfus account electronically through
the Automated Clearing House system at each pay period. To establish a
Dreyfus Payroll Savings Plan account, you must file an authorization form
with your employer's payroll department. Your employer must complete the
reverse side of the form and return it to The Dreyfus Family of Funds, P.O.
Box 9671, Providence, Rhode Island 02940-9671. You may obtain the necessary
authorization form from Dreyfus Service Corporation. You may change the
amount of purchase or cancel the authorization only by written notification
to your employer. It is the sole responsibility of your employer, not Dreyfus
Service Corporation, The Dreyfus Corporation, the Fund, the Transfer Agent or
any other person, to arrange for transactions under the Dreyfus Payroll
Savings Plan. The Fund may modify or terminate this Privilege at any time or
charge a service fee. No such fee currently is contemplated.
AUTOMATIC WITHDRAWAL PLAN
The Automatic Withdrawal Plan permits you to request withdrawal of a
specified dollar amount (minimum of $50) on either a monthly or quarterly
basis if you have a $5,000 minimum account. An application for the Automatic
Withdrawal Plan can be obtained from Dreyfus Service Corporation. There is a
service charge of 50 cents for each withdrawal check. The Automatic
Withdrawal Plan may be ended at any time by you, the Fund or the Transfer
Agent. Shares for which certificates have been issued may not be redeemed
through the Automatic Withdrawal Plan.
RETIREMENT PLANS
The Fund offers a variety of pension and profit-sharing plans,
including Keogh Plans, IRAs, SEP-IRAs and IRA "Rollover Accounts," 401(k)
Salary Reduction Plans and 403(b)(7) Plans. Plan support services also are
available. You can obtain details on the various plans by calling the
following numbers toll free: for Keogh Plans, please call 1-800-358-5566; for
IRAs and IRA "Rollover Accounts," please call 1-800-645-6561; for SEP-IRAs,
401(k) Salary Reduction Plans and 403(b)(7) Plans, please call 1-800-322-7880.
HOW TO REDEEM FUND SHARES
GENERAL
You may request redemption of your shares at any time. Redemption
requests should be transmitted to the Transfer Agent as described below. When
a request is received in proper form, the Fund will redeem the shares at the
next determined net asset value.
The Fund imposes no charges when shares are redeemed directly through
Dreyfus Service Corporation. Service Agents may charge a nominal fee for
effecting redemptions of Portfolio shares. Any certificates representing
Portfolio shares being redeemed must be submitted with the redemption
request. The value of the shares redeemed may be more or less than their
original cost, depending upon the Portfolio's then-current net asset value.
The Fund ordinarily will make payment for all shares redeemed within
seven days after receipt by the Transfer Agent of a redemption request in
proper form, except as provided by the rules of the Securities and Exchange
Commission. HOWEVER, IF YOU HAVE PURCHASED FUND SHARES BY CHECK, BY DREYFUS
TELETRANSFER PRIVILEGE OR THROUGH DREYFUS-AUTOMATIC ASSET BUILDER AND
SUBSEQUENTLY SUBMIT A WRITTEN REDEMPTION REQUEST TO THE TRANSFER AGENT,
THE REDEMPTION PROCEEDS WILL BE TRANSMITTED TO YOU PROMPTLY UPON BANK
CLEARANCE OF YOUR PURCHASE CHECK, DREYFUS TELETRANSFER PURCHASE OR
DREYFUS-AUTOMATIC ASSET BUILDER ORDER, WHICH MAY TAKE UP TO EIGHT BUSINESS
DAYS OR MORE. IN
Page 20
ADDITION, THE FUND WILL REJECT REQUESTS TO REDEEM SHARES BY WIRE OR TELEPHONE
OR PURSUANT TO THE DREYFUS TELETRANSFER PRIVILEGE FOR A PERIOD OF EIGHT
BUSINESS DAYS AFTER RECEIPT BY THE TRANSFER AGENT OF THE PURCHASE CHECK, THE
DREYFUS TELETRANSFER PURCHASE OR THE DREYFUS-AUTOMATIC ASSET BUILDER ORDER
AGAINST WHICH SUCH REDEMPTION IS REQUESTED. THESE PROCEDURES WILL NOT APPLY IF
YOUR SHARES WERE PURCHASED BY WIRE PAYMENT, OR IF YOU OTHERWISE HAVE A
SUFFICIENT COLLECTED BALANCE IN YOUR ACCOUNT TO COVER THE REDEMPTION REQUEST.
PRIOR TO THE TIME ANY REDEMPTION IS EFFECTIVE, DIVIDENDS ON SUCH SHARES WILL
ACCRUE AND BE PAYABLE, AND YOU WILL BE ENTITLED TO EXERCISE ALL OTHER RIGHTS
OF BENEFICIAL OWNERSHIP. Fund shares will not be redeemed until the Transfer
Agent has received your Account Application.
The Fund reserves the right to redeem your account at its option upon
not less than 45 days' written notice if your account's net asset value is
$500 or less and remains so during the notice period.
PROCEDURES
You may redeem shares by using the regular redemption procedure
through the Transfer Agent, the Wire Redemption Privilege, the Telephone
Redemption Privilege, or the Dreyfus TELETRANSFER Privilege. Other redemption
procedures may be in effect for clients of certain Service Agents. The Fund
makes available to certain large institutions the ability to issue redemption
instructions through compatible computer facilities.
In addition, Dreyfus Service Corporation will accept orders from
dealers with which it has sales agreements for the repurchase of shares held
by investors. Repurchase orders received by the dealer prior to the close of
trading on the floor of the New York Stock Exchange on any business day and
transmitted to Dreyfus Service Corporation prior to the close of its business
day (normally 5:15 p.m., New York time) are effected at the price determined
as of the close of trading on the floor of the New York Stock Exchange on
that day. Otherwise, the shares will be redeemed at the next determined net
asset value. It is the responsibility of the dealer to transmit orders on a
timely basis. The dealer may charge the investor a fee for executing the
order. This repurchase arrangement is discretionary and may be withdrawn at
any time.
You may redeem or exchange shares by telephone if you have checked
the appropriate box on the Fund's Account Application or have filed a
Shareholder Services Form with the Transfer Agent. If you select a telephone
redemption or exchange privilege, you authorize the Transfer Agent to act on
telephone instructions from any person representing himself or herself to be
you, or a representative of your Service Agent, and reasonably believed by
the Transfer Agent to be genuine. The Fund will require the Transfer Agent to
employ reasonable procedures, such as requiring a form of personal
identification, to confirm that instructions are genuine and, if it does not
follow such procedures, the Fund or the Transfer Agent may be liable for any
losses due to unauthorized or fraudulent instructions. Neither the Fund nor
the Transfer Agent will be liable for following telephone instructions
reasonably believed to be genuine.
During times of drastic economic or market conditions, you may
experience difficulty in contacting the Transfer Agent by telephone to
request a redemption or exchange of a Portfolio's shares. In such cases, you
should consider using the other redemption procedures described herein. Use
of these other redemption procedures may result in your redemption request
being processed at a later time than it would have been if telephone
redemption had been used. During the delay, such Portfolio's net asset value
may fluctuate.
REGULAR REDEMPTION - Under the regular redemption procedure, you may redeem
shares by written request mailed to The Dreyfus Family of Funds, P.O. Box
9671, Providence, Rhode Island 02940-9671. Redemption requests may be
delivered in person only to a Dreyfus Financial Center. THESE REQUESTS WILL BE
FORWARDED TO THE FUND AND WILL BE PROCESSED ONLY UPON RECEIPT THEREBY. For
the location of the nearest Dreyfus Financial Center, please call one of the
telephone numbers listed under "General Information." Redemption requests
must be signed by each shareholder, including each owner of a joint account,
and each signature must be guaranteed. The Transfer Agent has adopted
standards and procedures pursuant to which signature-guarantees in proper
form generally will be accepted from domestic banks, brokers, dealers, credit
unions, national securities exchanges, registered securities associations,
clearing agencies and savings associations, as well as from participants in
the New York Stock Exchange Medallion Signature Program, the
Page 21
Securities Transfer Agents Medallion Program ("STAMP") and the Stock
Exchanges Medallion Program. If you have any questions with respect to
signature-guarantees, please call one of the telephone numbers listed under
"General Information."
Redemption proceeds of at least $1,000 will be wired to any member
bank of the Federal Reserve System in accordance with a written
signature-guaranteed request.
WIRE REDEMPTION PRIVILEGE - You may request by wire or telephone that
redemption proceeds (minimum $1,000) be wired to your account at a bank which
is a member of the Federal Reserve System, or a correspondent bank if your
bank is not a member. To establish the Wire Redemption Privilege, you must
check the appropriate box and supply the necessary information on the Fund's
Account Application or file a Shareholder Services Form with the Transfer
Agent. You may direct that redemption proceeds be paid by check (maximum
$150,000 per day) made out to the owners of record and mailed to your
address. Redemption proceeds of less than $1,000 will be paid automatically
by check. Holders of jointly registered Fund or bank accounts may have
redemption proceeds of only up to $250,000 wired within any 30-day period.
You may telephone redemption requests by calling 1-800-221-4060 or, if you
are calling from overseas, call 1-401-455-3306. The Fund reserves the right
to refuse any redemption request, including requests made shortly after a
change of address, and may limit the amount involved or the number of such
requests. This Privilege may be modified or terminated at any time by the
Transfer Agent or the Fund. The Fund's Statement of Additional Information
sets forth instructions for transmitting redemption requests by wire. Shares
held under Keogh Plans, IRAs or other retirement plans, and shares for which
certificates have been issued, are not eligible for this Privilege.
TELEPHONE REDEMPTION PRIVILEGE - You may redeem shares (maximum $150,000 per
day) by telephone if you have checked the appropriate box on the Fund's
Account Application or have filed a Shareholder Services Form with the
Transfer Agent. The redemption proceeds will be paid by check and mailed to
your address. You may telephone redemption instructions by calling
1-800-221-4060 or, if you are calling from overseas, call 1-401-455-3306. The
Fund reserves the right to refuse any request made by telephone, including
requests made shortly after a change of address, and may limit the amount
involved or the number of telephone redemption requests. This Privilege may
be modified or terminated at any time by the Transfer Agent or the Fund.
Shares held under Keogh Plans, IRAs or other retirement plans, and shares for
which certificates have been issued, are not eligible for this Privilege.
DREYFUS TELETRANSFER PRIVILEGE - You may redeem shares (minimum $500 per day)
by telephone if you have checked the appropriate box and supplied the
necessary information on the Fund's Account Application or have filed a
Shareholder Services Form with the Transfer Agent. The proceeds will be
transferred between your Fund account and the bank account designated in one
of these documents. Only such an account maintained in a domestic financial
institution which is an Automated Clearing House member may be so designated.
Redemption proceeds will be on deposit in your account at an Automated
Clearing House member bank ordinarily two days after receipt of the
redemption request or, at your request, paid by check (maximum $150,000 per
day) and mailed to your address. Holders of jointly registered Fund or bank
accounts may redeem through the Dreyfus TELETRANSFER Privilege for transfer
to their bank account only up to $250,000 within any 30-day period. The Fund
reserves the right to refuse any request made by telephone, including
requests made shortly after a change of address, and may limit the amount
involved or the number of such requests. The Fund may modify or terminate
this Privilege at any time or charge a service fee upon notice to
shareholders. No such fee currently is contemplated.
If you have selected the Dreyfus TELETRANSFER Privilege, you may
request a Dreyfus TELETRANSFER redemption of Portfolio shares by calling
1-800-221-4060 or, if you are calling from overseas, call 1-401-455-3306.
Shares held under Keogh Plans, IRAs or other retirement plans, and shares
issued in certificate form, are not eligible for this Privilege.
Page 22
DISTRIBUTION PLAN AND SHAREHOLDER SERVICES PLAN
Portfolio shares are subject to a Distribution Plan and a Shareholder
Services Plan.
DISTRIBUTION PLAN - Under the Distribution Plan, adopted pursuant to Rule
12b-1 under the Investment Company Act of 1940, the Fund pays Dreyfus Service
Corporation for advertising, marketing and distributing Portfolio shares at
an annual rate of .50 of 1% of the value of each Portfolio's average daily
net assets. Under the Distribution Plan, Dreyfus Service Corporation may make
payments to Service Agents in respect of these services. Dreyfus Service
Corporation determines the amounts to be paid to Service Agents. Service
Agents receive such fees in respect of the average daily value of Portfolio
shares owned by their clients. From time to time, Dreyfus Service Corporation
may defer or waive receipt of fees under the Distribution Plan while
retaining the ability to be paid by the Fund under the Distribution Plan
thereafter. The fees payable to Dreyfus Service Corporation under the
Distribution Plan for advertising, marketing and distributing Portfolio
shares and for payments to Service Agents are payable without regard to
actual expenses incurred.
The Fund bears the costs of preparing and printing prospectuses and
statements of additional information used for regulatory purposes and for
distribution to existing Fund shareholders. Under the Distribution Plan, the
Fund bears (a) the costs of preparing, printing and distributing prospectuses
and statements of additional information used for other purposes and (b) the
costs associated with implementing and operating the Distribution Plan, the
aggregate of such amounts not to exceed in any fiscal year of the Fund the
greater of $100,000 or .005 of 1% of the value of each Portfolio's average
daily net assets for such fiscal year.
SHAREHOLDER SERVICES PLAN - Under the Shareholder Services Plan, the Fund
pays Dreyfus Service Corporation for the provision of certain services to
Portfolio shareholders a fee at the annual rate of .25 of 1% of the value of
each Portfolio's average daily net assets. The services provided may include
personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
Dreyfus Service Corporation may make payments to Service Agents in respect of
these services. Dreyfus Service Corporation determines the amounts to be paid
to Service Agents. Each Service Agent is required to disclose to its clients
any compensation payable to it by the Fund pursuant to the Shareholder
Services Plan and any other compensation payable by their clients in
connection with the investment of their assets in Portfolio shares.
DIVIDENDS, DISTRIBUTIONS AND TAXES
Under the Internal Revenue Code of 1986, as amended (the "Code"),
each Portfolio of the Fund is treated as a separate corporation for purposes
of qualification and taxation as a regulated investment company. Each
Portfolio ordinarily pays dividends from its net investment income and
distributes net realized securities gains, if any, once a year, but it may
make distributions on a more frequent basis to comply with the distribution
requirements of the Code, in all events in a manner consistent with the
provisions of the Investment Company Act of 1940. The Fund will not make
distributions from net realized securities gains unless capital loss
carryovers, if any, have been utilized or have expired. You may choose
whether to receive dividends and distributions in cash or to reinvest in
additional shares at net asset value. All expenses are accrued daily and
deducted before declaration of dividends to investors.
Dividends derived from net investment income, together with
distributions from net realized short-term securities gains and all or a
portion of any gains realized from the sale or other disposition of certain
market discount bonds, paid by the Portfolios will be taxable to U.S.
shareholders as ordinary income whether received in cash or reinvested in
additional shares. Distributions from net realized long-term securities gains
of the Portfolios will be taxable to U.S. shareholders as long-term capital
gains for Federal income tax purposes, regardless of how long shareholders
have held their Portfolio shares and whether such distributions are received
in cash or reinvested in Fund shares. The Code provides that the net capital
gain of an individual generally will not be subject to Federal income tax at
a rate in excess of 28%. Dividends and distributions may be subject to state
and local taxes.
Page 23
Dividends derived from net investment income, together with
distributions from net realized short-term securities gains and all or a
portion of any gains realized from the sale or other disposition of certain
market discount bonds, paid by the Portfolios to a foreign investor generally
are subject to U.S. nonresident withholding taxes at the rate of 30%, unless
the foreign investor claims the benefit of a lower rate specified in a tax
treaty. Distributions from net realized long-term securities gains paid by
the Portfolios to a foreign investor as well as the proceeds of any
redemptions from a foreign investor's account, regardless of the extent to
which gain or loss may be realized, generally will not be subject to U.S.
nonresident withholding tax. However, such distributions may be subject to
backup withholding, as described below, unless the foreign investor certifies
his non-U.S. residency status.
Notice as to the tax status of your dividends and distributions will
be mailed to you annually. You also will receive periodic summaries of your
account which will include information as to dividends and distributions from
securities gains, if any, paid during the year.
Federal regulations generally require the Fund to withhold ("backup
withholding") and remit to the U.S. Treasury 31% of dividends, distributions
from net realized securities gains and the proceeds of any redemption,
regardless of the extent to which gain or loss may be realized, paid to a
shareholder if such shareholder fails to certify either that the TIN
furnished in connection with opening an account is correct or that such
shareholder has not received notice from the IRS of being subject to backup
withholding as a result of a failure to properly report taxable dividend or
interest income on a Federal income tax return. Furthermore, the IRS may
notify the Fund to institute backup withholding if the IRS determines a
shareholder's TIN is incorrect or if a shareholder has failed to properly
report taxable dividend and interest income on a Federal income tax return.
A TIN is either the Social Security number or employer identification
number of the record owner of the account. Any tax withheld as a result of
backup withholding does not constitute an additional tax imposed on the
record owner of the account, and may be claimed as a credit on the record
owner's Federal income tax return.
It is expected that each Portfolio will qualify as a "regulated
investment company" under the Code so long as such qualification is in the
best interests of its shareholders. Such qualification relieves the Portfolio
of any liability for Federal income tax to the extent its earnings are
distributed in accordance with applicable provisions of the Code. In
addition, each Portfolio is subject to a non-deductible 4% excise tax,
measured with respect to certain undistributed amounts of taxable investment
income and capital gains.
You should consult your tax adviser regarding specific questions as
to Federal, state or local taxes, if any.
PERFORMANCE INFORMATION
For purposes of advertising, performance will be calculated on the
basis of average annual total return. Advertisements also may include
performance calculated on the basis of total return.
Average annual total return is calculated pursuant to a standardized
formula which assumes that an investment in the Portfolios was purchased with
an initial payment of $1,000 and that the investment was redeemed at the end
of a stated period of time, after giving effect to the reinvestment of
dividends and distributions during the period. The return is expressed as a
percentage rate which, if applied on a compounded annual basis, would result
in the redeemable value of the investment at the end of the period.
Advertisements of each Portfolio's performance will include such Portfolio's
average annual total return for one, five and ten year periods, or for
shorter periods depending upon the length of time during which the Portfolio
has operated. Computations of average annual total return for periods of less
than one year represent an annualization of the Portfolio's actual total
return for the applicable period.
Total return is computed on a per share basis and assumes the
reinvestment of dividends and distributions. Total return generally is
expressed as a percentage rate which is calculated by combining the income
and principal changes for a specified period and dividing by the net asset
value per share at the beginning of the period. Advertisements may include
the percentage rate of total return or may include the value of a
hypothetical investment at the end of the period which assumes the
application of the percentage rate of total return.
Performance will vary from time to time and past results are not
necessarily representative of future results. You should remember that
performance is a function of portfolio management in selecting the type
Page 24
and
quality of portfolio securities and is affected by operating expenses.
Performance information, such as that described above, may not provide a
basis for comparison with other investments or other investment companies
using a different method of calculating performance.
Comparative performance information may be used from time to time in
advertising or marketing the Fund's shares, including data from Lipper
Analytical Services, Inc., Standard & Poor's 500 Composite Stock Price Index,
Wilshire 5000 Index, the Dow Jones Industrial Average, MONEY MAGAZINE,
Morningstar, Inc. and other industry publications.
GENERAL INFORMATION
The Fund was incorporated under Maryland law on November 16, 1993,
and commenced operations on December 29, 1993. The Fund is authorized to
issue 400 million shares of Common Stock (with 100 million allocated to each
Portfolio), par value $.001 per share. Each share has one vote.
Unless otherwise required by the Investment Company Act of 1940,
ordinarily it will not be necessary for the Fund to hold annual meetings of
shareholders. As a result, Fund shareholders may not consider each year the
election of Directors or the appointment of auditors. However, pursuant to
the Fund's By-Laws, the holders of at least 10% of the shares outstanding and
entitled to vote may require the Fund to hold a special meeting of
shareholders for purposes of removing a Director from office or for any other
purpose. Fund shareholders may remove a Director by the affirmative vote of a
majority of the Fund's outstanding voting shares. In addition, the Board of
Directors will call a meeting of shareholders for the purpose of electing
Directors if, at any time, less than a majority of the Directors then holding
office have been elected by shareholders.
To date, the Board of Directors has authorized the creation of four
series of shares. All consideration received by the Fund for shares of one of
the Portfolios and all assets in which such consideration is invested will
belong to that Portfolio (subject only to the rights of creditors of the
Fund) and will be subject to the liabilities related thereto. The income
attributable to, and the expenses of, one Portfolio are treated separately
from those of the other Portfolios. The Fund has the ability to create, from
time to time, new series without shareholder approval.
Rule 18f-2 under the Investment Company Act of 1940 provides that any
matter required to be submitted under the provisions of the Investment
Company Act of 1940 or applicable state law or otherwise to the holders of
the outstanding voting securities of an investment company, such as the Fund,
will not be deemed to have been effectively acted upon unless approved by the
holders of a majority of the outstanding shares of each Portfolio affected by
such matter. Rule 18f-2 further provides that a Portfolio shall be deemed to
be affected by a matter unless it is clear that the interests of each
Portfolio in the matter are identical or that the matter does not affect any
interest of such Portfolio. However, the Rule exempts the selection of
independent accountants and the election of Directors from the separate
voting requirements of the Rule.
The Transfer Agent maintains a record of your ownership and sends you
confirmations and statements of account.
Shareholder inquires may be made to your Service Agent or by writing
to the Fund at 144 Glenn Curtiss Boulevard, Uniondale, New York 11556-0144,
or by calling toll free, 1-800-645-6561. In New York City, call
1-718-895-1206; on Long Island, call 794-5452.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND IN THE
FUND'S OFFICIAL SALES LITERATURE IN CONNECTION WITH THE OFFER OF THE FUND'S
SHARES, AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS
MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. THIS PROSPECTUS
DOES NOT CONSTITUTE AN OFFER IN ANY STATE IN WHICH, OR TO ANY PERSON TO WHOM,
SUCH OFFERING MAY NOT LAWFULLY BE MADE.
Page 25
Focus
Funds, Inc.
Prospectus
(Dreyfus Lion Logo)
Copy Rights Dreyfus Service Corporation, 1994
Distributor
DREYFUS FOCUS FUNDS, INC.
PART B
(STATEMENT OF ADDITIONAL INFORMATION)
JULY 1, 1994
This Statement of Additional Information, which is not a prospectus,
supplements and should be read in conjunction with the current Prospectus of
Dreyfus Focus Funds, Inc. (the "Fund"), dated July 1, 1994, as it may be
revised from time to time. To obtain a copy of the Fund's Prospectus,
please write to the Fund at 144 Glenn Curtiss Boulevard, Uniondale, New York
11556-0144, or call the following numbers:
Call Toll Free 1-800-645-6561
In New York City -- Call 1-718-895-1206
On Long Island -- Call 794-5452
The Dreyfus Corporation (the "Manager") serves as the Fund's investment
adviser.
Dreyfus Service Corporation (the "Distributor"), a wholly-owned
subsidiary of Dreyfus, is the distributor of the Fund's shares.
TABLE OF CONTENTS
Page
Investment Objective and Management Policies. . . . B-2
Management of the Fund. . . . . . . . . . . . . . . B-9
Management Agreement. . . . . . . . . . . . . . . . B-12
Purchase of Fund Shares . . . . . . . . . . . . . . B-14
Distribution Plan and Shareholder Services Plan . . B-14
Redemption of Fund Shares . . . . . . . . . . . . . B-16
Shareholder Services. . . . . . . . . . . . . . . . B-18
Determination of Net Asset Value. . . . . . . . . . B-21
Dividends, Distributions and Taxes. . . . . . . . . B-22
Portfolio Transactions. . . . . . . . . . . . . . . B-24
Performance Information . . . . . . . . . . . . . . B-26
Information About the Fund. . . . . . . . . . . . . B-26
Custodian, Transfer and Dividend Disbursing Agent,
Counsel and Independent Auditors. . . . . . . . . B-26
Financial Statements (audited). . . . . . . . . . . B-28
Report of Independent Auditors. . . . . . . . . . . B-32
Financial Statements (unaudited). . . . . . . . . . B-33
INVESTMENT OBJECTIVE AND MANAGEMENT POLICIES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Description
of the Fund."
Portfolio Securities
Bank Obligations. Domestic commercial banks organized under Federal law are
supervised and examined by the Comptroller of the Currency and are required
to be members of the Federal Reserve System and to have their deposits
insured by the Federal Deposit Insurance Corporation (the "FDIC"). Domestic
banks organized under state law are supervised and examined by state banking
authorities but are members of the Federal Reserve System only if they elect
to join. In addition, state banks whose certificates of deposit ("CDs") may
be purchased by each Portfolio are insured by the FDIC (although such
insurance may not be of material benefit to the Fund, depending on the
principal amount of the Cds of each bank held by the Fund) and are subject
to Federal examination and to a substantial body of Federal law and
regulation. As a result of Federal or state laws and regulations, domestic
branches of domestic banks whose Cds may be purchased by the Portfolios
generally are required, among other things, to maintain specified levels of
reserves, are limited in the amounts which they can loan to a single
borrower and are subject to other regulation designed to promote financial
soundness. However, not all of such laws and regulations apply to the
foreign branches of domestic banks.
Obligations of foreign branches of domestic banks, foreign
subsidiaries of domestic banks and domestic and foreign branches of foreign
banks, such as CDs and time deposits ("TDs"), may be general obligations of
the parent banks in addition to the issuing branch, or may be limited by the
terms of a specific obligation and governmental regulation. Such
obligations are subject to different risks than are those of domestic banks.
These risks include foreign economic and political developments, foreign
governmental restrictions that may adversely affect payment of principal and
interest on the obligations, foreign exchange controls and foreign
withholding and other taxes on interest income. These foreign branches and
subsidiaries are not necessarily subject to the same or similar regulatory
requirements that apply to domestic banks, such as mandatory reserve
requirements, loan limitations, and accounting, auditing and financial
record keeping requirements. In addition, less information may be publicly
available about a foreign branch of a domestic bank or about a foreign bank
than about a domestic bank.
Obligations of United States branches of foreign banks may be general
obligations of the parent bank in addition to the issuing branch, or may be
limited by the terms of a specific obligation or by Federal or state
regulation as well as governmental action in the country in which the
foreign bank has its head office. A domestic branch of a foreign bank with
assets in excess of $1 billion may be subject to reserve requirements
imposed by the Federal Reserve System or by the state in which the branch is
located if the branch is licensed in that state.
In addition, Federal branches licensed by the Comptroller of the
Currency and branches licensed by certain states ("State Branches") may be
required to: (1) pledge to the regulator, by depositing assets with a
designated bank within the state, a certain percentage of their assets as
fixed from time to time by the appropriate regulatory authority; and (2)
maintain assets within the state in an amount equal to a specified
percentage of the aggregate amount of liabilities of the foreign bank
payable at or through all of its agencies or branches within the state. The
deposits of Federal and State Branches generally must be insured by the FDIC
if such branches take deposits of less than $100,000.
In view of the foregoing factors associated with the purchase of CDs
and TDs issued by foreign branches of domestic banks, by foreign
subsidiaries of domestic banks, by foreign branches of foreign banks or by
domestic branches of foreign banks, the Manager carefully evaluates such
investments on a case-by-case basis.
Repurchase Agreements. The Fund's custodian or subcustodian will have
custody of, and will hold in a segregated account, securities acquired by a
Portfolio under a repurchase agreement. Repurchase agreements are
considered by the staff of the Securities and Exchange Commission to be
loans by the Portfolio which enters into them. In an attempt to reduce the
risk of incurring a loss on a repurchase agreement, a Portfolio will enter
into repurchase agreements only with domestic banks with total assets in
excess of $1 billion or primary government securities dealers reporting to
the Federal Reserve Bank of New York, with respect to securities of the type
in which the Portfolio may invest, and will require that additional
securities be deposited with it if the value of the securities purchased
should be decreased below resale price. The Manager will monitor on an
ongoing basis the value of the collateral to assure that it always equals or
exceeds the repurchase price. The Fund will consider on an ongoing basis,
the creditworthiness of the institutions with which a Portfolio enters into
repurchase agreements.
Commercial Paper and Other Short-Term Corporate Obligations. Variable
rate demand notes include variable amount master demand notes, which are
obligations that permit the Portfolios to invest fluctuating amounts at
varying rates of interest pursuant to direct arrangements between the Fund,
as lender, and the borrower. These notes permit daily changes in the
amounts borrowed. As mutually agreed between the parties, the Fund may
increase the amount under the notes at any time up to the full amount
provided by the note agreement, or decrease the amount, and the borrower may
repay up to the full amount of the note without penalty. Because these
obligations are direct lending arrangements between the lender and borrower,
it is not contemplated that such instruments generally will be traded, and
there generally is no established secondary market for these obligations,
although they are redeemable at face value, plus accrued interest, at any
time. Accordingly, where these obligations are not secured by letters of
credit or other credit support arrangements, the Fund's right to redeem is
dependent on the ability of the borrower to pay principal and interest on
demand. In connection with floating and variable rate demand obligations,
the Manager will consider, on an ongoing basis, earning power, cash flow and
other liquidity ratios of the borrower, and the borrower's ability to pay
principal and interest on demand. Such obligations frequently are not rated
by credit rating agencies, and the Portfolios may invest in them only if at
the time of an investment the borrower meets the criteria set forth in the
Fund's Prospectus for other commercial paper issuers.
Illiquid Securities. When purchasing securities that have not been
registered under the Securities Act of 1933, as amended, and are not readily
marketable, the Fund will endeavor to obtain the right to registration at
the expense of the issuer. Generally, there will be a lapse of time between
the Fund's decision to sell any such security and the registration of the
security permitting sale. During any such period, the price of the
securities will be subject to market fluctuations. However, if a
substantial market of qualified institutional buyers develops pursuant to
Rule 144A under the Securities Act of 1933, as amended, for certain of these
securities held by the Fund, the Fund intends to treat such securities as
liquid securities in accordance with procedures approved by the Fund's Board
of Directors. Because it is not possible to predict with assurance how the
market for restricted securities pursuant to Rule 144A will develop, the
Fund's Board of Directors has directed the Manager to monitor carefully each
Portfolio's investments in such securities with particular regard to trading
activity, availability of reliable price information and other relevant
information. To the extent that, for a period of time, qualified
institutional buyers cease purchasing restricted securities pursuant to Rule
144A, a Portfolio's investing in such securities may have the effect of
increasing the level of illiquidity in such Portfolio's investments during
such period.
Management Policies
Each Portfolio may engage in the following practices in furtherance of
its objective.
Options Transactions. Each Portfolio may engage in options
transactions, such as purchasing or writing covered call or put options.
The principal reason for writing covered call options is to realize, through
the receipt of premiums, a greater return than would be realized on the
Portfolio's securities alone. In return for a premium, the writer of a
covered call option forfeits the right to any appreciation in the value of
the underlying security above the strike price for the life of the option
(or until a closing purchase transaction can be effected). Nevertheless,
the call writer retains the risk of a decline in the price of the underlying
security. Similarly, the principal reason for writing covered put options
is to realize income in the form of premiums. The writer of a covered put
option accepts the risk of a decline in the price of the underlying
security. The size of the premiums that the Portfolios may receive may be
adversely affected as new or existing institutions, including other
investment companies, engage in or increase their option-writing activities.
Options written ordinarily will have expiration dates between one and
nine months from the date written. The exercise price of the options may be
below, equal to or above the market values of the underlying securities at
the time the options are written. In the case of call options, these
exercise prices are referred to as "in-the-money," "at-the-money" and "out-
of-the-money," respectively. Each Portfolio may write (a) in-the-money call
options when the Manager expects that the price of the underlying security
will remain stable or decline moderately during the option period, (b) at-
the-money call options when the Manager expects that the price of the
underlying security will remain stable or advance moderately during the
option period and (c) out-of-the-money call options when the Manager expects
that the premiums received from writing the call option plus the
appreciation in market price of the underlying security up to the exercise
price will be greater than the appreciation in the price of the underlying
security alone. In these circumstances, if the market price of the
underlying security declines and the security is sold at this lower price,
the amount of any realized loss will be offset wholly or in part by the
premium received. Out-of-the-money, at-the-money and in-the-money put
options (the reverse of call options as to the relation of exercise price to
market price) may be utilized in the same market environments that such call
options are used in equivalent transactions.
So long as the Portfolio's obligation as the writer of an option
continues, the Portfolio may be assigned an exercise notice by the broker-
dealer through which the option was sold, requiring the Portfolio to
deliver, in the case of a call, or take delivery of, in the case of a put,
the underlying security against payment of the exercise price. This
obligation terminates when the option expires or the Portfolio effects a
closing purchase transaction. The Portfolio can no longer effect a closing
purchase transaction with respect to an option once it has been assigned an
exercise notice.
While it may choose to do otherwise, each Portfolio generally will
purchase or write only those options for which the Manager believes there is
an active secondary market so as to facilitate closing transactions. There
is no assurance that sufficient trading interest to create a liquid
secondary market on a securities exchange will exist for any particular
option or at any particular time, and for some options no such secondary
market may exist. A liquid secondary market in an option may cease to exist
for a variety of reasons. In the past, for example, higher than anticipated
trading activity or order flow, or other unforeseen events, at times have
rendered certain clearing facilities inadequate and resulted in the
institution of special procedures, such as trading rotations, restrictions
on certain types of orders or trading halts or suspensions in one or more
options. There can be no assurance that similar events, or events that
otherwise may interfere with the timely execution of customers' orders, will
not recur. In such event, it might not be possible to effect closing
transactions in particular options. If as a covered call option writer a
Portfolio is unable to effect a closing purchase transaction in a secondary
market, it will not be able to sell the underlying security until the option
expires or it delivers the underlying security upon exercise or it otherwise
covers its position.
Stock Index Options. Each Portfolio may purchase and write put and
call options on stock indexes listed on U.S. or foreign securities exchanges
or traded in the over-the-counter market. A stock index fluctuates with
changes in the market values of the stocks included in the index.
Options on stock indexes are similar to options on stock except that
(a) the expiration cycles of stock index options are generally monthly,
while those of stock options are currently quarterly, and (b) the delivery
requirements are different. Instead of giving the right to take or make
delivery of a stock at a specified price, an option on a stock index gives
the holder the right to receive a cash "exercise settlement amount" equal to
(i) the amount, if any, by which the fixed exercise price of the option
exceeds (in the case of a put) or is less than (in the case of a call) the
closing value of the underlying index on the date of exercise, multiplied by
(ii) a fixed "index multiplier." Receipt of this cash amount will depend
upon the closing level of the stock index upon which the option is based
being greater than, in the case of a call, or less than, in the case of a
put, the exercise price of the option. The amount of cash received will be
equal to such difference between the closing price of the index and the
exercise price of the option expressed in dollars times a specified
multiple. The writer of the option is obligated, in return for the premium
received, to make delivery of this amount. The writer may offset its
position in stock index options prior to expiration by entering into a
closing transaction on an exchange or it may let the option expire
unexercised.
Futures Contracts and Options on Futures Contracts. Upon exercise of
an option, the writer of the option will deliver to the holder of the option
the futures position and the accumulated balance in the writer's futures
margin account, which represents the amount by which the market price of the
futures contract exceeds, in the case of a call, or is less than, in the
case of a put, the exercise price of the option on the futures contract.
The potential loss related to the purchase of options on futures contracts
is limited to the premium paid for the option (plus transaction costs).
Because the value of the option is fixed at the time of sale, there are no
daily cash payments to reflect changes in the value of the underlying
contract; however, the value of the option does change daily and that change
would be reflected in the net asset value of the Portfolio.
Foreign Currency Transactions. If a Portfolio enters into a currency
transaction, it will deposit, if so required by applicable regulations, with
its custodian cash or readily marketable securities in a segregated account
of the Portfolio in an amount at least equal to the value of the Portfolio's
total assets committed to the consummation of the forward contract. If the
value of the securities placed in the segregated account declines,
additional cash or securities will be placed in the account so that the
value of the account will equal the amount of the Portfolio's commitment
with respect to the contract.
At or before the maturity of a forward contract, the Portfolio either
may sell a security and make delivery of the currency, or retain the
security and offset its contractual obligation to deliver the currency by
purchasing a second contract pursuant to which the Portfolio will obtain, on
the same maturity date, the same amount of the currency which it is
obligated to deliver. If the Portfolio retains the portfolio security and
engages in an offsetting transaction, the Portfolio, at the time of
execution of the offsetting transaction, will incur a gain or loss to the
extent movement has occurred in forward contract prices. Should forward
prices decline during the period between the Portfolio's entering into a
forward contract for the sale of a currency and the date it enters into an
offsetting contract for the purchase of the currency, the Portfolio will
realize a gain to the extent the price of the currency it has agreed to sell
exceeds the price of the currency it has agreed to purchase. Should forward
prices increase, the Portfolio will suffer a loss to the extent the price of
the currency it has agreed to purchase exceeds the price of the currency it
has agreed to sell.
The cost to a Portfolio of engaging in currency transactions varies
with factors such as the currency involved, the length of the contract
period and the market conditions then prevailing. Because transactions in
currency exchange usually are conducted on a principal basis, no fees or
commissions are involved. The use of forward currency exchange contracts
does not eliminate fluctuations in the underlying prices of the securities,
but it does establish a rate of exchange that can be achieved in the future.
If a devaluation generally is anticipated, the Portfolio may not be able to
contract to sell the currency at a price above the devaluation level it
anticipates. The requirements for qualification as a regulated investment
company under the Internal Revenue Code of 1986, as amended (the "Code"),
may cause the Portfolios to restrict the degree to which they engage in
currency transactions. See "Dividends, Distributions and Taxes."
Lending Portfolio Securities. To a limited extent, each Portfolio may
lend its portfolio securities to brokers, dealers and other financial
institutions, provided it receives cash collateral which at all times is
maintained in an amount equal to at least 100% of the current market value
of the securities loaned. By lending its securities, the Portfolio can
increase its income through the investment of the cash collateral. For
purposes of this policy, the Fund considers collateral consisting of U.S.
Government securities or irrevocable letters of credit issued by banks whose
securities meet the standards for investment by the Portfolio to be the
equivalent of cash. From time to time, the Fund may return to the borrower
or a third party which is unaffiliated with the Fund, and which is acting as
a "placing broker," a part of the interest earned from the investment of
collateral received for securities loaned.
The Securities and Exchange Commission currently requires that the
following conditions must be met whenever portfolio securities are loaned:
(1) the Portfolio must receive at least 100% cash collateral from the
borrower; (2) the borrower must increase such collateral whenever the market
value of the securities rises above the level of such collateral; (3) the
Portfolio must be able to terminate the loan at any time; (4) the Portfolio
must receive reasonable interest on the loan, as well as any dividends,
interest or other distributions payable on the loaned securities, and any
increase in market value; (5) the Portfolio may pay only reasonable
custodian fees in connection with the loan; and (6) while voting rights on
the loaned securities may pass to the borrower, the Fund's Board of
Directors must terminate the loan and regain the right to vote the
securities if a material event adversely affecting the investment occurs.
These conditions may be subject to future modification.
Investment Restrictions. Each Portfolio has adopted investment
restrictions numbered 1 through 10 as fundamental policies. These
restrictions cannot be changed, as to a Portfolio, without approval by the
holders of a majority (as defined in the Investment Company Act of 1940, as
amended (the "Act")) of such Portfolio's outstanding voting shares.
Investment restrictions numbered 11 through 16 are not fundamental policies
and may be changed by vote of a majority of the Fund's Directors at any
time. No Portfolio may:
1. Invest more than 5% of its assets in the obligations of any single
issuer, except that up to 25% of the value of the Portfolio's total assets
may be invested, and securities issued or guaranteed by the U.S. Government,
or its agencies or instrumentalities may be purchased, without regard to any
such limitation.
2. Hold more than 10% of the outstanding voting securities of any
single issuer. This Investment Restriction applies only with respect to 75%
of the Portfolio's total assets.
3. Invest more than 25% of the value of its total assets in the
securities of issuers in any single industry, provided that there shall be
no limitation on the purchase of obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities.
4. Invest in commodities, except that the Portfolio may purchase and
sell options, forward contracts, futures contracts, including those relating
to indexes, and options on futures contracts or indexes.
5. Purchase, hold or deal in real estate, or oil, gas or other
mineral leases or exploration or development programs, but the Portfolio may
purchase and sell securities that are secured by real estate or issued by
companies that invest or deal in real estate or real estate investment
trusts.
6. Borrow money, except to the extent permitted under the Act. For
purposes of this Investment Restriction, the entry into options, forward
contracts, futures contracts, including those relating to indexes, and
options on futures contracts or indexes shall not constitute borrowing.
7. Make loans to others, except through the purchase of debt
obligations and the entry into repurchase agreements. However, the
Portfolio may lend its portfolio securities in an amount not to exceed 33-
1/3% of the value of its total assets. Any loans of portfolio securities
will be made according to guidelines established by the Securities and
Exchange Commission and the Fund's Board of Directors.
8. Act as an underwriter of securities of other issuers, except to
the extent the Portfolio may be deemed an underwriter under the Securities
Act of 1933, as amended, by virtue of disposing of portfolio securities.
9. Issue any senior security (as such term is defined in Section
18(f) of the Act), except to the extent the activities permitted in
Investment Restriction Nos. 4, 6, 13 and 14 may be deemed to give rise to a
senior security.
10. Purchase securities on margin, but the Portfolio may make margin
deposits in connection with transactions in options, forward contracts,
futures contracts, including those relating to indexes, and options on
futures contracts or indexes.
11. Purchase securities of any company having less than three years'
continuous operations (including operations of any predecessor) if such
purchase would cause the value of the Portfolio's investments in all such
companies to exceed 5% of the value of its total assets.
12. Invest in the securities of a company for the purpose of
exercising management or control, but the Portfolio will vote the securities
it owns in its portfolio as a shareholder in accordance with its views.
13. Pledge, mortgage or hypothecate its assets, except to the extent
necessary to secure permitted borrowings and to the extent related to the
purchase of securities on a when-issued or forward commitment basis and the
deposit of assets in escrow in connection with writing covered put and call
options and collateral and initial or variation margin arrangements with
respect to options, forward contracts, futures contracts, including those
relating to indexes, and options on futures contracts or indexes.
14. Purchase, sell or write puts, calls or combinations thereof,
except as described in the Fund's Prospectus and Statement of Additional
Information.
15. Enter into repurchase agreements providing for settlement in more
than seven days after notice or purchase securities which are illiquid, if,
in the aggregate, more than 15% of the value of the Portfolio's net assets
would be so invested.
16. Purchase securities of other investment companies, except to the
extent permitted under the Act.
If a percentage restriction is adhered to at the time of investment, a
later change in percentage resulting from a change in values or assets will
not constitute a violation of such restriction.
Each Portfolio may invest, notwithstanding any other investment
restriction (whether or not fundamental), all of its assets in the
securities of a single open-end management investment company with
substantially the same fundamental investment objective, policies and
restrictions as the Portfolio.
The Fund may make commitments more restrictive than the restrictions
listed above so as to permit the sale of Portfolio shares in certain states.
Should the Fund determine that a commitment is no longer in the best
interest of the Portfolio and its shareholders, the Fund reserves the right
to revoke the commitment by terminating the sale of such Portfolio's shares
in the state involved.
MANAGEMENT OF THE FUND
Directors and officers of the Fund, together with information as to
their principal business occupations during at least the last five years,
are shown below. Each Director who is deemed to be an "interested person"
of the Fund, as defined in the Act, is indicated by an asterisk.
Directors and Officers of the Fund
*HOWARD STEIN, President, Investment Officer and Director. Chairman of the
Board and Chief Executive Officer of the Manager, Chairman of the
Board of the Distributor and an officer, director, general partner or
trustee of other investment companies advised and administered by the
Manager. His address is 200 Park Avenue, New York, New York 10166.
JOHN M. FRASER, JR., Director, President of Fraser Associates, a service
company for planning and arranging corporate meetings and other
events. From September 1975 to June 1978, he was Executive Vice
President of Flagship Cruises, Ltd. Prior thereto, he was Senior Vice
President and Resident Director of the Swedish-American Line for the
United States and Canada. His address is 133 East 64th Street, New
York, New York 10021.
EHUD HOUMINER, Director. Since July 1991, Professor and Executive-in
-Residence at the Columbia Business School, Columbia University and,
since February 1992, a Consultant to Bear, Stearns & Co. Inc.,
investment bankers. He was President and Chief Executive Officer of
Philip Morris USA, manufacturers of consumer products, from December
1988 to September 1990. He also is a Director of Avnet Inc. His
address is c/o Columbia Business School, Columbia University, Uris
Hall, Room 526, New York, New York 10027.
GLORIA MESSINGER, Director. From 1981 to 1993, Managing Director and Chief
Executive Officer of ASCAP (American Society of Composers, Authors and
Publishers). She is a member of the Board of Directors of the Yale
Law School Fund, Theatre for a New Audience, Inc. and was secretary of
the ASCAP Foundation and served as a Trustee of the Copyright Society
of the United States. She is also a member of numerous professional
and civic organizations. Her address is 747 Third Avenue, 11th Floor,
New York, New York 10017.
Mr. Houminer is also a director of Dreyfus Capital Value (A Premier
Fund), Dreyfus Municipal Bond Fund, Inc., Dreyfus Insured Municipal Bond
Fund, Inc., Dreyfus Strategic Municipals, Inc., Dreyfus Strategic Municipal
Bond Fund, Inc. and Dreyfus Municipal Money Market Fund, Inc., and a trustee
of Dreyfus California Tax Exempt Money Market Fund.
For so long as the Fund's plans described in the section captioned
"Distribution Plan and Shareholder Services Plan" remain in effect, the
Directors of the Fund who are not "interested persons" of the Fund, as
defined in the Act, will be selected and nominated by the Directors who are
not "interested persons" of the Fund.
The Fund does not pay any remuneration to its officers and Directors
other than fees and expenses to Directors who are not officers, directors,
employees or holders of 5% or more of the outstanding voting securities of
the Manager, which totalled $2,722 for the period December 29, 1993
(commencement of operations) through April 30, 1994 for all such Directors
as a group.
Officers of the Fund Not Listed Above
ERNEST G. WIGGINS, JR., Executive Vice President and Investment Officer. An
employee of the Manager since December 1993, and an officer of other
investment companies advised and administered by the Manager. From
August 1993 to December 1993, he was Senior Vice President of GAMCO
Investors, Inc. He was President of Gabelli International, Inc. from
September 1992 through July 1993. From January 1980 through August
1992, he was employed by Fidelity Management and Research Company in
various capacities, including Director of Training and Development and
Fund Manager of Fidelity Value Fund.
DANIEL C. MACLEAN, Vice President. Vice President and General Counsel of the
Manager, Secretary of the Distributor and an officer of other
investment companies advised or administered by the Manager.
MARK N. JACOBS, Vice President. Secretary and Deputy General Counsel of the
Manager and an officer of other investment companies advised or
administered by the Manager.
JEFFREY N. NACHMAN, Vice President and Treasurer. Vice President-Mutual Fund
Accounting of the Manager and an officer of other investment companies
advised or administered by the Manager.
THOMAS J. DURANTE, Controller. Senior Accounting Manager in the Fund
Accounting Department of the Manager and an officer of other
investment companies advised or administered by the Manager.
STEVEN F. NEWMAN, Secretary. Associate General Counsel of the Manager and an
officer of other investment companies advised or administered by the
Manager.
MICHAEL A. ROSENBERG, Assistant Secretary. Assistant General Counsel since
March 1994 and, from October 1991 to March 1994, staff attorney in the
legal department of the Manager and since December 1993 an officer of
other investment companies advised or administered by the Manager.
From October 1990 to October 1991, Associate with Shereff, Friedman,
Hoffman & Goodman. From 1986 to September 1989, Financial Analyst
with the Securities and Exchange Commission, Division of Investment
Management.
CHRISTINE PAVALOS, Assistant Secretary. Assistant Secretary of the Manager,
the Distributor and other investment companies advised or administered
by the Manager.
The address of each officer of the Fund is 200 Park Avenue, New York,
New York 10166.
Directors and officers of the Fund, as a group, owned less than 1% of
each Portfolio's shares of common stock outstanding on June 15, 1994.
The following persons are known by the Fund to own of record or
beneficially 5% or more of the Fund's outstanding voting securities as of June
15, 1994: The Dreyfus Corporation, attn. Maurice Bendrihem, 200 Park Avenue,
New York, New York 10166 - 98.60% of the outstanding shares of Dreyfus Large
Company Growth Portfolio, 97.90% of the outstanding shares of Dreyfus Large
Company Value Portfolio, 98.00% of the outstanding shares of Dreyfus Small
Company Growth Portfolio and 98.20% of the outstanding shares of Dreyfus Small
Company Value Portfolio. A shareholder who beneficially owns, directly or
indirectly, more than 25% of the Fund's voting securities may be deemed a
"control person" (as defined in the Act) of the Fund.
The following persons are also officers and/or directors of the
Manager: Julian M. Smerling, Vice Chairman of the Board of Directors; Joseph
S. DiMartino, President, Chief Operating Officer and a director; Alan M.
Eisner, Vice President and Chief Financial Officer; David W. Burke, Vice
President and Chief Administrative Officer; Robert F. Dubuss, Vice
President; Peter A. Santoriello, Vice President; Vice President; Kirk V.
Stumpp, Vice President--New Product Development; Philip L. Toia, Vice
President; John J. Pyburn, Assistant Vice President; Katherine C. Wickham,
Assistant Vice President--Human Resources; Maurice Bendrihem, Controller;
and Mandell L. Berman, Alvin S. Friedman, Lawrence M. Greene, Abigail Q.
McCarthy and David B. Truman, directors.
MANAGEMENT AGREEMENT
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Management
of the Fund."
The Manager provides management services pursuant to the Management
Agreement (the "Agreement") dated December 17, 1993, with the Fund. As to
each Portfolio, the Agreement is subject to annual approval by (i) the
Fund's Board of Directors or (ii) vote of a majority (as defined in the Act)
of the outstanding voting securities of such Portfolio, provided that in
either event the continuance also is approved by a majority of the Directors
who are not "interested persons" (as defined in the Act) of the Fund or the
Manager, by vote cast in person at a meeting called for the purpose of
voting on such approval. As to each Portfolio, the Agreement is terminable
without penalty, on 60 days' notice, by the Fund's Board of Directors or by
vote of the holders of a majority of such Portfolio's shares, or, on not
less than 90 days' notice, by the Manager. The Agreement will terminate
automatically, as to the relevant Portfolio, in the event of its assignment
(as defined in the Act).
The Manager manages each Portfolio's investments in accordance with
the stated policies of such Portfolio, subject to the approval of the Fund's
Board of Directors. The Manager is responsible for investment decisions,
and provides the Fund with Investment Officers who are authorized by the
Board of Directors to execute purchases and sales of securities. The Fund's
Investment Officers are Howard Stein, Richard B. Hoey, Jeffrey F. Friedman
and Ernest G. Wiggins, Jr. The Manager also maintains a research department
with a professional staff of portfolio managers and securities analysts who
provide research services for the Fund as well as for other funds advised by
the Manager. All purchases and sales are reported for the Directors' review
at the meeting subsequent to such transactions.
All expenses incurred in the operation of the Fund are borne by the
Fund, except to the extent specifically assumed by the Manager. The
expenses borne by the Fund include: organizational costs, taxes, interest,
loan commitment fees, interest and distributions paid on securities sold
short, brokerage fees and commissions, if any, fees of Directors who are not
officers, directors, employees or holders of 5% or more of the outstanding
voting securities of the Manager, Securities and Exchange Commission fees,
state Blue Sky qualification fees, advisory fees, charges of custodians,
transfer and dividend disbursing agents' fees, certain insurance premiums,
industry association fees, outside auditing and legal expenses, costs of
maintaining the Fund's existence, costs of independent pricing services,
costs attributable to investor services (including, without limitation,
telephone and personnel expenses), costs of shareholders' reports and
corporate meetings, costs of preparing and printing certain prospectuses and
statements of additional information, and any extraordinary expenses. In
addition, the Fund is subject to an annual distribution fee for advertising,
marketing and distributing Portfolio shares and an annual service fee for
ongoing personal services relating to shareholder accounts and services
related to the maintenance of shareholder accounts. See "Distribution Plan
and Shareholder Services Plan." Expenses attributable to a particular
Portfolio are charged against the assets of that Portfolio; other expenses
of the Fund are allocated between the Portfolios on the basis determined by
the Board of Directors, including, but not limited to, proportionately in
relation to the net assets of each Portfolio.
The Manager pays the salaries of all officers and employees employed
by both it and the Fund, maintains office facilities, and furnishes
statistical and research data, clerical help, accounting, data processing,
bookkeeping and internal auditing and certain other required services. The
Manager also may make such advertising and promotional expenditures, using
its own resources, as it from time to time deems appropriate.
As compensation for the Manager's services to the Fund, the Fund has
agreed to pay the Manager a monthly fee at the annual rate of .75 of 1% of
the value of each Portfolio's average daily net assets. For the period
December 29, 1993 (commencement of operations) through April 30, 1994, the
management fee payable, and amounts waived by the Manager, for each
Portfolio were as follows:
Reduction Net Fee
Portfolio Management Fee Payable in Fee Paid
Dreyfus Large Company $12,669 $12,669 $0
Growth
Dreyfus Large Company $12,937 $12,937 $0
Value
Dreyfus Small Company $12,655 $12,655 $0
Growth
Dreyfus Small Company $13,263 $13,263 $0
Value
As to each Portfolio, the Manager has agreed that if in any fiscal
year the aggregate expenses of the Portfolio, exclusive of taxes, brokerage,
interest on borrowings and (with the prior written consent of the necessary
state securities commissions) extraordinary expenses, but including the
management fee, exceed the expense limitation of any state having
jurisdiction over the Fund, the Fund may deduct from the payment to be made
to the Manager under the Agreement, or the Manager will bear, such excess
expense to the extent required by state law. Such deduction or payment, if
any, will be estimated daily, and reconciled and effected or paid, as the
case may be, on a monthly basis.
The aggregate of the fees payable to the Manager is not subject to
reduction as the value of a Portfolio's net assets increases.
PURCHASE OF FUND SHARES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "How to Buy
Fund Shares."
The Distributor. The Distributor serves as the Fund's distributor
pursuant to an agreement which is renewable annually. The Distributor also
acts as distributor for the other funds in the Dreyfus Family of Funds and
for certain other investment companies.
Dreyfus TeleTransfer Privilege. Dreyfus TeleTransfer purchase orders
may be made between the hours of 8:00 a.m. and 4:00 p.m., New York time, on
any business day that The Shareholder Services Group, Inc., the Fund's
transfer and dividend disbursing agent (the "Transfer Agent"), and the New
York Stock Exchange are open. Such purchases will be credited to the
shareholder's Fund account on the next bank business day. To qualify to use
the Dreyfus TeleTransfer Privilege, the initial payment for purchase of Fund
shares must be drawn on, and redemption proceeds paid to, the same bank and
account as are designated on the Account Application or Shareholder Services
Form on file. If the proceeds of a particular redemption are to be wired to
an account at any other bank, the request must be in writing and signature-
guaranteed. See "Redemption of Fund Shares--Dreyfus TeleTransfer
Privilege."
Reopening an Account. An investor may reopen an account with a
minimum investment of $100 without filing a new Account Application during
the calendar year, provided the information on the old Account Application
is still applicable.
DISTRIBUTION PLAN AND SHAREHOLDER SERVICES PLAN
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Distribution
Plan and Shareholder Services Plan."
Portfolio shares are subject to a Distribution Plan and a Shareholder
Services Plan.
Distribution Plan. Rule 12b-1 (the "Rule") adopted by the Securities
and Exchange Commission under the Act provides, among other things, that an
investment company may bear expenses of distributing its shares only
pursuant to a plan adopted in accordance with the Rule. The Fund's Board of
Directors has adopted such a plan (the "Distribution Plan") with respect to
the Portfolios' shares, pursuant to which the Fund pays the Distributor for
advertising, marketing and distributing Portfolio shares. Under the
Distribution Plan, the Distributor may make payments to certain financial
institutions, securities dealers and other financial industry professionals
(collectively, "Service Agents") in respect to these services. The Fund's
Board of Directors believes that there is a reasonable likelihood that the
Distribution Plan will benefit each Portfolio and its shareholders. In some
states, certain financial institutions effecting transactions in Portfolio
shares may be required to register as dealers pursuant to state law.
A quarterly report of the amounts expended under the Distribution
Plan, and the purposes for which such expenditures were incurred, must be
made to the Directors for their review. In addition, the Distribution Plan
provides that it may not be amended to increase materially the costs which
Portfolio shareholders may bear for distribution pursuant to the
Distribution Plan without shareholder approval and that other material
amendments of the Distribution Plan must be approved by the Board of
Directors, and by the Directors who are not "interested persons" (as defined
in the Act) of the Fund and have no direct or indirect financial interest in
the operation of the Distribution Plan or in any agreements entered into in
connection with the Distribution Plan, by vote cast in person at a meeting
called for the purpose of considering such amendments. The Distribution
Plan is subject to annual approval by such vote of the Directors cast in
person at a meeting called for the purpose of voting on the Distribution
Plan. The Distribution Plan may be terminated at any time with respect to
each Portfolio by vote of a majority of the Directors who are not
"interested persons" and have no direct or indirect financial interest in
the operation of the Distribution Plan or in any agreements entered into in
connection with the Distribution Plan or by vote of the holders of a
majority of the Portfolio's shares.
For the period December 29, 1993 (commencement of operations) through
April 30, 1994, the amounts payable by each Portfolio pursuant to the
Distribution Plan were as follows:
Prospectus and
Advertising, statement of
marketing and additional
distribution information Reductions
expenses expenses due to Net amount
Portfolio payable payable undertakings paid
Dreyfus Large $8,446 $0 $8,446 $0
Company Growth
Dreyfus Large $8,625 $0 $8,625 $0
Company Value
Dreyfus Small $8,437 $0 $8,437 $0
Company Growth
Dreyfus Small $8,842 $0 $8,842 $0
Company Value
Shareholder Services Plan. The Fund has adopted a Shareholder
Services Plan, pursuant to which the Fund pays the Distributor for the
provision of certain services to each Portfolio's shareholders.
A quarterly report of the amounts expended under the Shareholder
Services Plan, and the purposes for which such expenditures were incurred,
must be made to the Directors for their review. In addition, the
Shareholder Services Plan provides that it may not be amended without
approval of the Directors, and by the Directors who are not "interested
persons" (as defined in the Act) of the Fund and have no direct or indirect
financial interest in the operation of the Shareholder Services Plan or in
any agreements entered into in connection with the Shareholder Services
Plan, by vote cast in person at a meeting called for the purpose of
considering such amendments. The Shareholder Services Plan is subject to
annual approval by such vote of the Directors cast in person at a meeting
called for the purpose of voting on the Shareholder Services Plan. The
Shareholder Services Plan is terminable at any time with respect to each
Portfolio by vote of a majority of the Directors who are not "interested
persons" and have no direct or indirect financial interest in the operation
of the Shareholder Services Plan or in any agreements entered into in
connection with the Shareholder Services Plan.
For the period December 29, 1993 (commencement of operations) through
April 30, 1994, the amounts charged to each Portfolio pursuant to the
Shareholder Services Plan were as follows:
Portfolio Amount Charged
Dreyfus Large Company Growth $4,223
Dreyfus Large Company Value $4,312
Dreyfus Small Company Growth $4,218
Dreyfus Small Company Value $4,421
REDEMPTION OF FUND SHARES
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "How to
Redeem Fund Shares."
Wire Redemption Privilege. By using this Privilege, the investor
authorizes the Transfer Agent to act on wire or telephone redemption
instructions from any person representing himself or herself to be the
investor, or a representative of the investor's Service Agent, and
reasonably believed by the Transfer Agent to be genuine. Ordinarily, the
Fund will initiate payment for shares redeemed pursuant to this Privilege on
the next business day after receipt if the Transfer Agent receives the
redemption request in proper form. Redemption proceeds will be transferred
by Federal Reserve wire only to the commercial bank account specified by the
investor on the Account Application or Shareholder Services Form.
Redemption proceeds, if wired, must be in the amount of $1,000 or more and
will be wired to the investor's account at the bank of record designated in
the investor's file at the Transfer Agent, if the investor's bank is a
member of the Federal Reserve System, or to a correspondent bank if the
investor's bank is not a member. Fees ordinarily are imposed by such bank
and usually are borne by the investor. Immediate notification by the
correspondent bank to the investor's bank is necessary to avoid a delay in
crediting the funds to the investor's bank account.
Investors with access to telegraphic equipment may wire redemption
requests to the Transfer Agent by employing the following transmittal code
which may be used for domestic or overseas transmissions:
Transfer Agent's
Transmittal Code Answer Back Sign
144295 144295 TSSG PREP
Investors who do not have direct access to telegraphic equipment may
have the wire transmitted by contacting a TRT Cables operator at 1-800-654-
7171, toll free. Investors should advise the operator that the above
transmittal code must be used and should also inform the operator of the
Transfer Agent's answer back sign.
To change the commercial bank or account designated to receive
redemption proceeds, a written request must be sent to the Transfer Agent.
This request must be signed by each shareholder, with each signature
guaranteed as described below under "Stock Certificates; Signatures."
Dreyfus TeleTransfer Privilege. Investors should be aware that if they
have selected the Dreyfus TeleTransfer Privilege, any request for a wire
redemption will be effected as a Dreyfus TeleTransfer transaction through
the Automated Clearing House ("ACH") system unless more prompt transmittal
specifically is requested. Redemption proceeds will be on deposit in the
investor's account at an ACH member bank ordinarily two business days after
receipt of the redemption request. See "Purchase of Fund Shares--Dreyfus
TeleTransfer Privilege."
Stock Certificates; Signatures. Any certificates representing Fund
shares to be redeemed must be submitted with the redemption request.
Written redemption requests must be signed by each shareholder, including
each holder of a joint account, and each signature must be guaranteed.
Signatures on endorsed certificates submitted for redemption also must be
guaranteed. The Transfer Agent has adopted standards and procedures
pursuant to which signature-guarantees in proper form generally will be
accepted from domestic banks, brokers, dealers, credit unions, national
securities exchanges, registered securities associations, clearing agencies
and savings associations, as well as from participants in the New York Stock
Exchange Medallion Signature Program, the Securities Transfer Agents
Medallion Program ("STAMP") and the Stock Exchanges Medallion Program.
Guarantees must be signed by an authorized signatory of the guarantor and
"Signature-Guaranteed" must appear with the signature. The Transfer Agent
may request additional documentation from corporations, executors,
administrators, trustees or guardians, and may accept other suitable
verification arrangements from foreign investors, such as consular
verification. For more information with respect to signature-guarantees,
please call one of the telephone numbers listed on the cover.
Redemption Commitment. The Fund has committed itself to pay in cash all
redemption requests by any shareholder of record of a Portfolio, limited in
amount during any 90-day period to the lesser of $250,000 or 1% of the value
of such Portfolio's net assets at the beginning of such period. Such
commitment is irrevocable without the prior approval of the Securities and
Exchange Commission. In the case of requests for redemption in excess of
such amount, the Board of Directors reserves the right to make payments in
whole or in part in securities or other assets in case of an emergency or
any time a cash distribution would impair the liquidity of the Portfolio to
the detriment of the existing shareholders. In such event, the securities
would be valued in the same manner as the Portfolio's securities are valued.
If the recipient sold such securities, brokerage charges would be incurred.
Suspension of Redemptions. The right of redemption may be suspended or
the date of payment postponed (a) during any period when the New York Stock
Exchange is closed (other than customary weekend and holiday closings), (b)
when trading in the markets the Fund ordinarily utilizes is restricted, or
when an emergency exists as determined by the Securities and Exchange
Commission so that disposal of the Fund's investments or determination of
its net asset value is not reasonably practicable, or (c) for such other
periods as the Securities and Exchange Commission by order may permit to
protect the Fund's shareholders.
SHAREHOLDER SERVICES
The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "Shareholder Services."
Exchange Privilege. Shares of other Portfolios of the Fund or other
funds purchased by exchange will be purchased on the basis of relative net
asset value per share as follows:
A. Exchanges for shares of funds that are offered without a sales
load will be made without a sales load.
B. Shares of funds purchased without a sales load may be exchanged
for shares of other funds sold with a sales load, and the applicable
sales load will be deducted.
C. Shares of funds purchased with a sales load may be exchanged without
a sales load for shares of other funds sold without a sales load.
D. Shares of funds purchased with a sales load, shares of funds acquired
by a previous exchange from shares purchased with a sales load and
additional shares acquired through reinvestment of dividends or
distributions of any such funds (collectively referred to herein as
"Purchased Shares") may be exchanged for shares of other funds sold
with a sales load (referred to herein as "Offered Shares"), provided
that, if the sales load applicable to the Offered Shares exceeds the
maximum sales load that could have been imposed in connection with
the Purchased Shares (at the time the Purchased Shares were
acquired), without giving effect to any reduced loads, the difference
will be deducted.
To accomplish an exchange under item D above, shareholders must notify
the Transfer Agent of their prior ownership of fund shares and their account
number.
To use this Privilege, an investor or the investor's Service Agent
acting on the investor's behalf must give exchange instructions to the
Transfer Agent in writing, by wire or by telephone. Telephone exchanges may
be made only if the appropriate "YES" box has been checked on the Account
Application, or a separate signed Shareholder Services Form is on file with
the Transfer Agent. By using this Privilege, the investor authorizes the
Transfer Agent to act on telephonic, telegraphic or written exchange
instructions from any person representing himself or herself to be the
investor or a representative of the investor's Service Agent, and reasonably
believed by the Transfer Agent to be genuine. Telephone exchanges may be
subject to limitations as to the amount involved or the number of telephone
exchanges permitted. Shares issued in certificate form are not eligible for
telephone exchange.
To establish a Personal Retirement Plan by exchange, shares of the fund
being exchanged must have a value of at least the minimum initial investment
required for the fund into which the exchange is being made. For Dreyfus-
sponsored Keogh Plans, IRAs and IRAs set up under a Simplified Employee
Pension Plan ("SEP-IRAs") with only one participant, the minimum initial
investment is $750. To exchange shares held in Corporate Plans, 403(b)(7)
Plans and SEP-IRAs with more than one participant, the minimum initial
investment is $100 if the plan has at least $2,500 invested among the funds
in the Dreyfus Family of Funds. To exchange shares held in Personal
Retirement Plans, the shares exchanged must have a current value of at least
$100.
Dreyfus Auto-Exchange Privilege. Dreyfus Auto-Exchange Privilege
permits an investor to purchase, in exchange for shares of a Portfolio,
shares of one of the other Portfolios of the Fund or shares of another fund
in the Dreyfus Family of Funds. This Privilege is available only for
existing accounts. Shares will be exchanged on the basis of relative net
asset value as set forth under "Exchange Privilege" above. Enrollment in or
modification or cancellation of this Privilege is effective three business
days following notification by the investor. An investor will be notified
if his account falls below the amount designated to be exchanged under this
Privilege. In this case, an investor's account will fall to zero unless
additional investments are made in excess of the designated amount prior to
the next Auto-Exchange transaction. Shares held under IRA and other
retirement plans are eligible for this Privilege. Exchanges of IRA shares
may be made between IRA accounts and from regular accounts to IRA accounts,
but not from IRA accounts to regular accounts. With respect to all other
retirement accounts, exchanges may be made only among those accounts.
The Exchange Privilege and Dreyfus Auto-Exchange Privilege are available
to shareholders resident in any state in which shares of the fund being
acquired may legally be sold. Shares may be exchanged only between accounts
having identical names and other identifying designations.
Shareholder Services Forms and prospectuses of the other funds may be
obtained from the Distributor, 144 Glenn Curtiss Boulevard, Uniondale, New
York 11556-0144. The Fund reserves the right to reject any exchange request
in whole or in part. The Exchange Privilege or the Dreyfus Auto-Exchange
Privilege may be modified or terminated at any time upon notice to
shareholders.
Automatic Withdrawal Plan. The Automatic Withdrawal Plan permits an
investor with a $5,000 minimum account to request withdrawal of a specified
dollar amount (minimum of $50) on either a monthly or quarterly basis.
Withdrawal payments are the proceeds from sales of Fund shares, not the
yield on the shares. If withdrawal payments exceed reinvested dividends and
distributions, the investor's shares will be reduced and eventually may be
depleted. An Automatic Withdrawal Plan may be established by completing the
appropriate application available from the Distributor. There is a service
charge of $.50 for each withdrawal check. Automatic Withdrawal may be
terminated at any time by the investor, the Fund or the Transfer Agent.
Shares for which certificates have been issued may not be redeemed through
the Automatic Withdrawal Plan.
Dreyfus Dividend Sweep. Dreyfus Dividend Sweep allows investors to
invest on the payment date their dividends or dividends and capital gain
distributions, if any, from a Portfolio in shares of another Portfolio of
the Fund or shares of another fund in the Dreyfus Family of Funds of which
the investor is a shareholder. Shares of other funds purchased pursuant to
this privilege will be purchased on the basis of relative net asset value
per share as follows:
A. Dividends and distributions paid by a fund may be invested without
imposition of a sales load in shares of other funds that are offered
without a sales load.
B. Dividends and distributions paid by a fund which does not charge a
sales load may be invested in shares of other funds sold with a sales
load, and the applicable sales load will be deducted.
C. Dividends and distributions paid by a fund which charges a sales load
may be invested in shares of other funds sold with a sales load
(referred to herein as "Offered Shares"), provided that, if the sales
load applicable to the Offered Shares exceeds the maximum sales load
charged by the fund from which dividends or distributions are being
swept, without giving effect to any reduced loads, the difference will
be deducted.
D. Dividends and distributions paid by a fund may be invested in shares
of other funds that impose a contingent deferred sales charge and the
applicable contingent deferred sales charge, if any, will be imposed
upon redemption of such shares.
Personal Retirement Plans. The Fund makes available Keogh Plans and
IRAs, including SEP-IRAs and IRA "Rollover Accounts" for individuals. Plan
support services also are available. Investors can obtain details on the
various plans by calling the following numbers toll free: for Keogh Plans,
please call 1-800-358-5566; for IRAs and IRA "Rollover Accounts", please
call 1-800-645-6561; for SEP-IRAs, 401(k) Salary Reduction Plans and
403(b)(7) Plans, please call 1-800-322-7880.
Investors who wish to purchase Fund shares in conjunction with a Keogh
Plan or an IRA, including an SEP-IRA, may request from the Distributor forms
for adoption of such plans.
The entity acting as custodian for Keogh Plans or IRAs may charge a fee,
payment of which could require the liquidation of shares. All fees charged
are described in the appropriate form.
Shares may be purchased in connection with these plans only by direct
remittance to the entity acting as custodian. Purchases for these plans may
not be made in advance of receipt of funds.
The minimum initial investment for Dreyfus-sponsored Keogh Plans, IRAs
and SEP-IRAs with only one participant, is normally $750, with no minimum on
subsequent purchases. Individuals who open an IRA may also open a non-
working spousal IRA with a minimum investment of $250.
The investor should read the Prototype Retirement Plan and the
appropriate form of Custodial Agreement for further details on eligibility,
service fees and tax implications, and should consult a tax adviser.
DETERMINATION OF NET ASSET VALUE
The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "How to Buy Fund Shares."
Valuation of Portfolio Securities. Each Portfolio's securities,
including covered call options written by a Portfolio, are valued at the
last sale price on the securities exchange or national securities market on
which such securities primarily are traded. Securities not listed on an
exchange or national securities market, or securities in which there were no
transactions, are valued at the average of the most recent bid and asked
prices, except in the case of open short positions where the asked price is
used for valuation purposes. Bid price is used when no asked price is
available. Any assets or liabilities initially expressed in terms of
foreign currency will be translated into dollars at the midpoint of the New
York interbank market spot exchange rate as quoted on the day of such
translation or if no such rate is quoted on such date, such other quoted
market exchange rate as may be determined to be appropriate by the Manager.
Forward currency contracts will be valued at the current cost of offsetting
the contract. Because of the need to obtain prices as of the close of
trading on various exchanges throughout the world, the calculation of net
asset value does not take place contemporaneously with the determination of
prices of certain of the Portfolios' securities. Short-term investments are
carried at amortized cost, which approximates value. Any securities or
other assets for which recent market quotations are not readily available
are valued at fair value as determined in good faith by the Fund's Board of
Directors. Expenses and fees of the Fund, including the management fee paid
by the Fund and fees pursuant to the Distribution Plan and Shareholder
Services Plan, are accrued daily and taken into account for the purpose of
determining the net asset value of Fund shares.
Restricted securities, as well as securities or other assets for which
market quotations are not readily available, or are not valued by a pricing
service approved by the Board of Directors, are valued at fair value as
determined in good faith by the Board of Directors. The Board of Directors
will review the method of valuation on a current basis. In making their
good faith valuation of restricted securities, the Directors generally will
take the following factors into consideration: restricted securities which
are, or are convertible into, securities of the same class of securities for
which a public market exists usually will be valued at market value less the
same percentage discount at which purchased. This discount will be revised
periodically by the Board of Directors if the Directors believe that it no
longer reflects the value of the restricted securities. Restricted
securities not of the same class as securities for which a public market
exists usually will be valued initially at cost. Any subsequent adjustment
from cost will be based upon considerations deemed relevant by the Board of
Directors.
New York Stock Exchange Closings. The holidays (as observed) on which
the New York Stock Exchange is closed currently are: New Year's Day,
Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving and Christmas.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "Dividends, Distributions
and Taxes."
It is expected that each Portfolio will qualify as a "regulated
investment company" under the Code, as long as such qualification is in the
best interests of its shareholders. As a regulated investment company, the
Portfolios will pay no Federal income tax on net investment income and net
realized securities gains to the extent that such income and gains are
distributed to shareholders in accordance with applicable provisions of the
Code. To qualify as a regulated investment company, each Portfolio must
distribute at least 90% of its net income (consisting of net investment
income and net short-term capital gain) to its shareholders, must derive
less than 30% of its annual gross income from gain on the sale of securities
held for less than three months, and must meet certain asset diversification
and other requirements. Accordingly, the Portfolios may be restricted in
the selling of securities held for less than three months. The Code,
however, allows the Portfolios to net certain offsetting positions, making
it easier for the Portfolios to satisfy the 30% test. The term "regulated
investment company" does not imply the supervision of management or
investment practices or policies by any government agency.
Any dividend or distribution paid shortly after an investor's purchase
may have the effect of reducing the net asset value of the shares below the
cost of the investment. Such a dividend or distribution would be a return
of investment in an economic sense, although taxable as stated above. In
addition, the Code provides that if a shareholder holds shares of the Fund
for six months or less and has received a capital gain distribution with
respect to such shares, any loss incurred on the sale of such shares will be
treated as long-term capital loss to the extent of the capital gain
distribution received.
Depending upon the composition of a Portfolio's income, the entire
amount or a portion of the dividends paid by such Portfolio from net
investment income may qualify for the dividends received deduction allowable
to qualifying U.S. corporate shareholders ("dividends received deduction").
In general, dividend income of a Portfolio distributed to qualifying
corporate shareholders will be eligible for the dividends received deduction
only to the extent that such Portfolio's income consists of dividends paid
by U.S. corporations. However, Section 246(c) of the Code provides that if
a qualifying corporate shareholder has disposed of Portfolio shares not held
for more than 46 days and has received a dividend from net investment income
with respect to such shares, the portion designated by the Portfolio as
qualifying for the dividends received deduction will not be eligible for
such shareholder's dividends received deduction. In addition, the Code
provides other limitations with respect to the ability of a qualifying
corporate shareholder to claim the dividends received deduction in
connection with holding Portfolio shares.
A Portfolio may qualify for and may make an election permitted under
Section 853 of the Code so that shareholders may be eligible to claim a
credit or deduction on their Federal income tax returns for, and will be
required to treat as part of the amounts distributed to them, their pro rata
portion of qualified taxes paid or incurred by the Portfolio to foreign
countries (which taxes relate primarily to investment income). A Portfolio
may make an election under Section 853, provided that more than 50% of the
value of the Portfolio's total assets at the close of the taxable year
consists of securities in foreign corporations, and the Portfolio satisfies
the applicable distribution provisions of the Code. The foreign tax credit
available to shareholders is subject to certain limitations imposed by the
Code.
Ordinarily, gains and losses realized from portfolio transactions will
be treated as capital gains and losses. However, a portion of the gain or
loss realized from the disposition of foreign currencies (including foreign
currency denominated bank deposits) and non-U.S. dollar denominated
securities (including debt instruments and certain forward contracts and
options) may be treated as ordinary income or loss under Section 988 of the
Code. In addition, all or a portion of any gains realized from the sale or
other disposition of certain market discount bonds will be treated as
ordinary income under Section 1276. Finally, all or a portion of the gain
realized from engaging in "conversion transactions" may be treated as
ordinary income under Section 1258. "Conversion transactions" are defined
to include certain forward, futures, option and straddle transactions,
transactions marketed or sold to produce capital gains, or transactions
described in Treasury regulations to be issued in the future.
Under Section 1256 of the Code, any gain or loss realized by a Portfolio
from certain forward contracts and options transactions will be treated as
60% long-term capital gain or loss and 40% short-term capital gain or loss.
Gain or loss will arise upon exercise or lapse of such contracts and options
as well as from closing transactions. In addition, any such contracts or
options remaining unexercised at the end of the Portfolio's taxable year
will be treated as sold for their then fair market value, resulting in
additional gain or loss to such Portfolio characterized in the manner
described above.
Offsetting positions held by a Portfolio involving certain foreign
currency forward contracts or options may constitute "straddles."
"Straddles" are defined to include "offsetting positions" in actively traded
personal property. The tax treatment of "straddles" is governed by Sections
1092 and 1258 of the Code, which, in certain circumstances, overrides or
modifies the provisions of Section 1256 and 988. As such, all or a portion
of any short or long-term capital gain from certain "straddle" transactions
may be recharacterized to ordinary income.
If a Portfolio were treated as entering into "straddles" by reason of
its engaging in certain forward contracts or options transactions, such
"straddles" would be characterized as "mixed straddles" if the forward
contracts or options transactions comprising a part of such "straddles" were
governed by Section 1256 of the Code. A Portfolio may make one or more
elections with respect to "mixed straddles." Depending on which election is
made, if any, the results to the Portfolio may differ. If no election is
made to the extent the "straddle" rules apply to positions established by
the Portfolio, losses realized by the Portfolio will be deferred to the
extent of unrealized gain in the offsetting position. Moreover, as a result
of the "straddle" and conversion transaction rules, short-term capital loss
on "straddle" positions may be recharacterized as long-term capital loss,
and long-term capital gains may be treated as short-term capital gains or
ordinary income.
If a Portfolio acquires shares in an entity that is classified as a
"passive foreign investment company" ("PFIC") for federal income tax
purposes, the operation of certain provisions of the Code applying to PFICs
could result in the imposition of certain federal income taxes on the
Portfolio. In addition, gain realized from the sale or other disposition of
PFIC shares may be treated as ordinary income under Section 1291 of the
Code.
Investment by a Portfolio in securities issued at a discount or
providing for deferred interest or for payment of interest in the form of
additional obligations could under special tax rules affect the amount,
timing and character of distributions to shareholders by causing a Portfolio
to recognize income prior to the receipt of cash payments. For example, a
Portfolio could be required to accrue as income each year a portion of the
discount (or deemed discount) at which such securities were issued and to
distribute such income. In such case, a Portfolio may have to dispose of
securities which it might otherwise have continued to hold in order to
generate cash to satisfy these distribution requirements.
PORTFOLIO TRANSACTIONS
The Manager assumes general supervision over placing orders on behalf of
the Fund for the purchase or sale of investment securities. Allocation of
brokerage transactions, including their frequency, is made in the Manager's
best judgment and in a manner deemed fair and reasonable to shareholders.
The primary consideration is prompt execution of orders at the most
favorable net price. Subject to this consideration, the brokers selected
will include those that supplement the Manager's research facilities with
statistical data, investment information, economic facts and opinions.
Information so received is in addition to and not in lieu of services
required to be performed by the Manager and the fee of the Manager is not
reduced as a consequence of the receipt of such supplemental information.
Such information may be useful to the Manager in serving both the Fund
and other funds which it manages and, conversely, supplemental information
obtained by the placement of business of other clients may be useful to the
Manager in carrying out its obligations to the Fund. Sales of Fund shares
by a broker may be taken into consideration, and brokers also will be
selected because of their ability to handle special executions such as are
involved in large block trades or broad distributions, provided the primary
consideration is met. Large block trades may, in certain cases, result from
two or more funds advised or administered by the Manager being engaged
simultaneously in the purchase or sale of the same security.
Portfolio turnover may vary from year to year as well as within a year.
It is anticipated that in any fiscal year the turnover rate of each
Portfolio may approach the 150% level; however, in periods in which
extraordinary market conditions prevail, the Manager will not be deterred
from changing each Portfolio's investment strategy as rapidly as needed, in
which case higher turnover rates can be anticipated which would result in
greater brokerage expenses. The overall reasonableness of brokerage
commissions paid is evaluated by the Manager based upon its knowledge of
available information as to the general level of commissions paid by other
institutional investors for comparable services.
For the period December 29, 1993 (commencement of operations) through
April 30, 1994, the following amounts were paid by each Portfolio for
brokerage commissions, none of which was paid to the Distributor:
Portfolio Amount Paid
Dreyfus Large Company Growth $5,121
Dreyfus Large Company Value $8,169
Dreyfus Small Company Growth $10,829
Dreyfus Small Company Value $18,376
For the period of December 29, 1993 (commencement of operations)
through April 30, 1994, there were no gross spreads and concessions on
principal transactions.
PERFORMANCE INFORMATION
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Performance
Information."
The average annual return for the period December 29, 1993
(commencement of operations) through April 30, 1994 for each Portfolio was
as follows: Dreyfus Large Company Growth Portfolio -11.19%; Dreyfus Large
Company Value Portfolio -0.95%; Dreyfus Small Company Growth Portfolio -
14.65%; and Dreyfus Small Company Value Portfolio -0.71%. Average annual
total return is calculated by determining the ending redeemable value of an
investment purchased with a hypothetical $1,000 payment made at the
beginning of the period (assuming the reinvestment of dividends and
distributions), dividing by the amount of the initial investment, taking the
"n"th root of the quotient (where "n" is the number of years in the period)
and subtracting 1 from the result.
The Fund's total return for the period December 29, 1993 (commencement
of operations) through April 30, 1994 for each Portfolio was as follows:
Dreyfus Large Company Growth Portfolio -3.92%; Dreyfus Large Company Value
Portfolio -0.32%; Dreyfus Small Company Growth Portfolio -5.20%; and Dreyfus
Small Company Value Portfolio -0.24%. Total return is calculated by
subtracting the amount of each Portfolio's net asset value per share at the
beginning of a stated period from the net asset value per share at the end
of the period (after giving effect to the reinvestment of dividends and
distributions during the period), and dividing the result by the net asset
value per share at the beginning of the period.
From time to time, the Fund may compare its performance against
inflation with the performance of other instruments against inflation, such
as short-term Treasury Bills (which are direct obligations of the U.S.
Government) and FDIC-insured bank money market accounts.
INFORMATION ABOUT THE FUND
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "General
Information."
Each Portfolio share has one vote and, when issued and paid for in
accordance with the terms of the offering, is fully paid and non-assessable.
Portfolio shares are of one class and have equal rights as to dividends and
in liquidation. Shares have no preemptive, subscription or conversion
rights and are freely transferable.
The Fund will send annual and semi-annual financial statements to all
its shareholders.
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT, COUNSEL
AND INDEPENDENT AUDITORS
The Bank of New York, 110 Washington Street, New York, New York 10286,
is the Fund's custodian. The Shareholder Services Group, Inc., a subsidiary
of First Data Corporation, P.O. Box 9671, Providence, Rhode Island 02940-
9671, is the Fund's transfer and dividend disbursing agent. Neither The
Bank of New York nor The Shareholder Services Group, Inc. has any part in
determining the investment policies of the Fund or which securities are to
be purchased or sold by the Fund.
Stroock & Stroock & Lavan, 7 Hanover Square, New York, New York 10004-
2696, as counsel for the Fund, has rendered its opinion as to certain legal
matters regarding the due authorization and valid issuance of the shares of
Common Stock being sold pursuant to the Fund's Prospectus.
Ernst & Young, 787 Seventh Avenue, New York, New York 10019,
independent auditors, have been selected as auditors of the Fund.
DREYFUS FOCUS FUNDS, INC.
DREYFUS LARGE COMPANY GROWTH
Statement of Assets and Liabilities
December 17, 1993
ASSETS
Cash $25,000
Deferred organization expenses 25,531
Total Assets $50,531
LIABILITIES
Accrued organization expenses 25,531
NET ASSETS applicable to 2,000 shares of
common stock ($.001 par value) issued
and outstanding (100 million shares
authorized) $25,000
NET ASSET VALUE, and redemption price per
share ($25,000/2,000 shares of common
stock issued and outstanding) $12.50
NOTE - Dreyfus Focus Funds, Inc. (the "Fund") was incorporated on
November 16, 1993 and has had no operations since that date other than
matters relating to its organization and registration as an open-end
investment company under the Investment Company Act of 1940 and the
Securities Act of 1933 and the sale and issuance of 2,000 shares of common
stock of each Portfolio to The Dreyfus Corporation ("Initial Shares").
Organization expenses payable by the Fund have been deferred and will be
amortized from the date operations commence over a period which it is
expected that a benefit will be realized, not to exceed five years. If any
of the Initial Shares of any series are redeemed during the amortization
period by any holder thereof, the redemption proceeds will be reduced by any
unamortized organization expenses of that Portfolio in the same proportion
as the number of Initial Shares being redeemed bears to the number of
Initial Shares outstanding of that Portfolio at the time of the redemption.
DREYFUS FOCUS FUNDS, INC.
DREYFUS LARGE COMPANY VALUE
Statement of Assets and Liabilities
December 17, 1993
ASSETS
Cash $25,000
Deferred organization expenses 25,531
Total Assets $50,531
LIABILITIES
Accrued organization expenses 25,531
NET ASSETS applicable to 2,000 shares of
common stock ($.001 par value) issued
and outstanding (100 million shares
authorized) $25,000
NET ASSET VALUE, and redemption price per
share ($25,000/2,000 shares of common
stock issued and outstanding) $12.50
NOTE - Dreyfus Focus Funds, Inc. (the "Fund") was incorporated on
November 16, 1993 and has had no operations since that date other than
matters relating to its organization and registration as an open-end
investment company under the Investment Company Act of 1940 and the
Securities Act of 1933 and the sale and issuance of 2,000 shares of common
stock of each Portfolio to The Dreyfus Corporation ("Initial Shares").
Organization expenses payable by the Fund have been deferred and will be
amortized from the date operations commence over a period which it is
expected that a benefit will be realized, not to exceed five years. If any
of the Initial Shares of any series are redeemed during the amortization
period by any holder thereof, the redemption proceeds will be reduced by any
unamortized organization expenses of that Portfolio in the same proportion
as the number of Initial Shares being redeemed bears to the number of
Initial Shares outstanding of that Portfolio at the time of the redemption.
DREYFUS FOCUS FUNDS, INC.
DREYFUS SMALL COMPANY GROWTH
Statement of Assets and Liabilities
December 17, 1993
ASSETS
Cash $25,000
Deferred organization expenses 25,531
Total Assets $50,531
LIABILITIES
Accrued organization expenses 25,531
NET ASSETS applicable to 2,000 shares of
common stock ($.001 par value) issued
and outstanding (100 million shares
authorized) $25,000
NET ASSET VALUE, and redemption price per
share ($25,000/2,000 shares of common
stock issued and outstanding) $12.50
NOTE - Dreyfus Focus Funds, Inc. (the "Fund") was incorporated on
November 16, 1993 and has had no operations since that date other than
matters relating to its organization and registration as an open-end
investment company under the Investment Company Act of 1940 and the
Securities Act of 1933 and the sale and issuance of 2,000 shares of common
stock of each Portfolio to The Dreyfus Corporation ("Initial Shares").
Organization expenses payable by the Fund have been deferred and will be
amortized from the date operations commence over a period which it is
expected that a benefit will be realized, not to exceed five years. If any
of the Initial Shares of any series are redeemed during the amortization
period by any holder thereof, the redemption proceeds will be reduced by any
unamortized organization expenses of that Portfolio in the same proportion
as the number of Initial Shares being redeemed bears to the number of
Initial Shares outstanding of that Portfolio at the time of the redemption.
DREYFUS FOCUS FUNDS, INC.
DREYFUS SMALL COMPANY VALUE
Statement of Assets and Liabilities
December 17, 1993
ASSETS
Cash $25,000
Deferred organization expenses 25,531
Total Assets $50,531
LIABILITIES
Accrued organization expenses 25,531
NET ASSETS applicable to 2,000 shares of
common stock ($.001 par value) issued
and outstanding (100 million shares
authorized) $25,000
NET ASSET VALUE, and redemption price per
share ($25,000/2,000 shares of common
stock issued and outstanding) $12.50
NOTE - Dreyfus Focus Funds, Inc. (the "Fund") was incorporated on
November 16, 1993 and has had no operations since that date other than
matters relating to its organization and registration as a diversified,
open-end investment company under the Investment Company Act of 1940 and the
Securities Act of 1933 and the sale and issuance of 2,000 shares of common
stock of each Portfolio to The Dreyfus Corporation ("Initial Shares").
Organization expenses payable by the Fund have been deferred and will be
amortized from the date operations commence over a period which it is
expected that a benefit will be realized, not to exceed five years. If any
of the Initial Shares of any series are redeemed during the amortization
period by any holder thereof, the redemption proceeds will be reduced by any
unamortized organization expenses of that series in the same proportion as
the number of Initial Shares being redeemed bears to the number of Initial
Shares outstanding of that series at the time of the redemption.
REPORT OF INDEPENDENT AUDITORS
Shareholder and Board of Directors
Dreyfus Focus Funds, Inc.
We have audited the accompanying statements of assets and liabilities of
Dreyfus Focus Funds, Inc. (comprising Dreyfus Large Company Growth, Dreyfus
Large Company Value, Dreyfus Small Company Growth and Dreyfus Small Company
Value portfolios) as of December 17, 1993. These statements of assets and
liabilities are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these statements of assets and
liabilities based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether these statements of assets and
liabilities are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
statement of assets and liabilities. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall statement of assets and liabilities
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the statements of assets and liabilities referred to above
present fairly, in all material respects, the financial position of each of
the respective portfolios constituting the Dreyfus Focus Funds, Inc. at
December 17, 1993, in conformity with generally accepted accounting
principles.
New York, New York
December 20, 1993
Ernst & Young
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DREYFUS FOCUS FUNDS, INC., LARGE COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
COMMON STOCKS--91.2% SHARES VALUE
---------- ----------
<S> <C> <C> <C>
AIR COURIER SERVICES--1.1% Federal Express............................(a) 700 $ 53,375
----------
AIR TRANSPORT--3.2% AMR........................................(a) 1,400 84,875
Delta Air Lines............................ 1,500 71,250
----------
156,125
----------
BANKING--1.6% Morgan (J.P.) & Co......................... 1,300 79,950
----------
BEVERAGES-SOFT DRINK--1.9% Coca-Cola.................................. 2,200 91,575
----------
CABLE TELEVISION--1.4% Comcast, Cl. A............................. 2,900 45,675
Comcast, Cl. A (Non-voting)................ 1,450 22,837
----------
68,512
----------
CHEMICALS-MISCELLANEOUS-- .9% International Flavors & Fragrances......... 1,200 43,800
----------
COMMUNICATIONS EQUIPMENT--11.8% Ericsson (LM) Telephone, Cl. B, A.D.R...... 2,400 108,600
General Instrument.........................(a) 2,400 129,900
Grupo Televisa S.A.........................(a) 2,000 106,000
Motorola................................... 2,800 124,950
Newbridge Networks.........................(a) 900 45,337
Scientific-Atlanta......................... 1,800 60,300
----------
575,087
----------
COMPUTER EQUIPMENT--3.6% COMPAQ Computer............................(a) 800 88,800
Hewlett-Packard............................ 1,100 88,275
----------
177,075
----------
COMPUTER SOFTWARE/SERVICES--2.1% Microsoft..................................(a) 1,100 101,750
----------
CONSUMER PRODUCTS--1.2% Colgate-Palmolive.......................... 1,000 58,625
----------
CONSUMER STAPLES--3.5% Archer-Daniels-Midland..................... 3,200 73,600
General Mills.............................. 1,000 51,625
Wrigley, (Wm) Jr........................... 900 46,463
----------
171,688
----------
DISTRIBUTION-ENTERTAINMENT--1.5% Disney (Walt).............................. 1,700 72,037
----------
ELECTRONICS & ELECTRICAL General Electric........................... 900 85,612
EQUIPMENT--1.8%
----------
FINANCIAL SERVICES--3.4% Federal National Mortgage Association...... 1,400 116,550
Student Loan Marketing Association......... 1,300 51,025
----------
167,575
----------
HEALTH SERVICES--1.9% Amgen......................................(a) 1,200 48,600
Chiron.....................................(a) 700 45,413
----------
94,013
----------
HOUSEHOLD Gillette................................... 1,000 67,125
PRODUCTS-MISCELLANEOUS--1.4%
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY GROWTH PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
SHARES VALUE
---------- ----------
<S> <C> <C> <C>
INSURANCE--5.4% American International Group............... 1,400 $ 119,350
MGIC Investment............................ 3,100 94,162
Progressive Corp Ohio...................... 1,500 47,813
----------
261,325
----------
MACHINERY-AGRICULTURAL--1.9% Deere & Co................................. 1,200 92,100
----------
MACHINERY-INDUSTRIAL/SPECIALTY--1.6% Emerson Electric........................... 1,300 75,725
----------
MEDICAL SERVICES--2.2% U.S. HealthCare............................ 1,350 50,625
United Healthcare.......................... 1,400 58,100
----------
108,725
----------
MOBILE HOMES--.7% Clayton Homes..............................(a) 1,700 36,338
----------
NATURAL GAS--1.3% Anadarko Petroleum......................... 1,100 61,600
----------
OIL & GAS--3.7% Louisiana Land & Exploration............... 1,900 75,050
Total, Cl. B, A.D.S........................ 3,600 104,400
----------
179,450
----------
OIL REFINING--1.2% Ashland Oil................................ 1,500 58,125
----------
OIL WELL EQUIPMENT & SERVICES--3.9% Baker Hughes............................... 3,700 67,988
Schlumberger Limited....................... 2,200 121,000
----------
188,988
----------
PHARMACEUTICALS--4.5% Abbott Laboratories........................ 2,500 70,937
Genentech..................................(a) 1,200 59,850
Roche Holdings, A.D.R...................... 1,900 90,725
----------
221,512
----------
RAILROAD EQUIPMENT--1.0% Trinity Industries......................... 1,400 48,650
----------
RETAIL TRADE-DRUG STORES--1.0% Walgreen................................... 1,200 50,100
----------
RETAIL TRADE-FOOD CHAINS--1.3% Albertson's................................ 2,200 62,975
----------
RETAIL TRADE-MISCELLANEOUS--1.0% Home Shopping Network......................(a) 4,200 48,300
----------
TELECOMMUNICATIONS--17.1% Cable & Wireless, A.D.S.................... 3,100 63,550
Hong Kong Telecom, A.D.R................... 1,400 80,150
LIN Broadcasting...........................(a) 700 74,025
MCI Communications......................... 3,500 80,063
MFS Communications.........................(a) 1,500 41,250
NEXTEL Communications, Cl. A...............(a) 1,300 46,150
Telecom Corp New Zealand, A.D.S............ 1,800 83,700
Telecomunicacoes Brasileiras S.A., A.D.R... 2,300 81,650
Telefonica de Espana, A.D.S................ 2,000 81,500
Telefonos de Mexico, Cl. A, A.D.R.......... 1,500 88,312
Telephone & Data Systems................... 1,200 45,600
Vodafone Group, A.D.R...................... 800 65,600
----------
831,550
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY GROWTH PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
SHARES VALUE
---------- ----------
<S> <C> <C> <C>
UTILITIES-ELECTRIC POWER--1.1% China Light & Power, A.D.R................. 10,300 $ 54,075
----------
TOTAL COMMON STOCKS
(cost $4,654,889)........................ $4,443,462
----------
----------
- ----------------------------------------------------------------------------------- PRINCIPAL
SHORT-TERM INVESTMENTS--8.5% AMOUNT VALUE
---------- ----------
<S> <C> <C> <C>
U.S. TREASURY BILLS: 3.50%, 5/19/1994........................... $ 114,000 $ 113,801
3.56%, 7/21/1994........................... 302,000 299,581
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $413,382).......................... $ 413,382
----------
----------
TOTAL INVESTMENTS (cost $5,068,271)................................................ 99.7% $4,856,844
---------- ----------
---------- ----------
CASH AND RECEIVABLES (NET)........................................................ .3% $ 16,338
---------- ----------
---------- ----------
NET ASSETS........................................................................ 100.0% $4,873,125
---------- ----------
---------- ----------
</TABLE>
- --------------------------------------------------------------------------------
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
COMMON STOCKS--99.7% SHARES VALUE
---------- ----------
<S> <C> <C> <C>
AIR TRANSPORT--2.8% Delta Air Lines............................ 1,300 $ 61,750
KLM Royal Dutch Airlines...................(a) 2,800 79,800
----------
141,550
----------
AIRCRAFT & AEROSPACE--3.4% Lockheed................................... 300 18,413
Martin Marietta............................ 1,700 75,650
Rockwell International..................... 1,200 46,800
Textron.................................... 600 31,650
----------
172,513
----------
AUTO PARTS--4.7% Ford Motor................................. 1,200 70,050
General Motors............................. 3,000 170,250
----------
240,300
----------
AUTO RELATED--.5% Ryder System............................... 1,000 25,000
----------
AUTOMOBILES--1.6% Volkswagen A.G., A.D.R..................... 1,300 82,631
----------
BANKING--6.7% Chase Manhattan............................ 1,900 64,600
Chemical Banking........................... 700 24,325
Commerce Bancshares........................ 600 19,313
Continental Bank........................... 1,900 65,550
First Chicago.............................. 1,300 68,737
Morgan (J.P.) & Co......................... 1,100 67,650
Republic New York.......................... 600 29,625
----------
339,800
----------
BASIC INDUSTRIES--.1% Rayonier................................... 250 7,063
----------
BEVERAGES-SOFT DRINK--.8% Seagram.................................... 1,400 41,125
----------
BROADCASTING--.4% Turner Broadcasting Systems, Cl. B......... 1,100 20,763
----------
CHEMICALS--1.4% Georgia Gulf...............................(a) 800 23,100
Grace (W.R.) & Co.......................... 1,200 48,900
----------
72,000
----------
CHEMICALS-MISCELLANEOUS--.8% IMC Fertilizer Group.......................(a) 1,100 40,700
----------
COMPUTER EQUIPMENT--1.2% Conner Peripherals.........................(a) 2,300 35,938
Cray Research..............................(a) 600 12,825
Quantum....................................(a) 700 12,381
----------
61,144
----------
COMPUTER SOFTWARE/SERVICES--.5% Honeywell.................................. 800 26,100
----------
CONSUMER PRODUCTS--1.5% Dial....................................... 1,600 75,200
----------
CONSUMER STAPLES--2.4% Archer-Daniels-Midland..................... 2,600 59,800
Heinz (H.J.)............................... 700 22,925
Ralston-Purina Group....................... 1,100 39,600
----------
122,325
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
ELECTRONICS & ELECTRICAL CMS Energy................................. 2,400 $ 53,400
EQUIPMENT--7.1%
General Electric........................... 800 76,100
Philips Electronics N.V.................... 5,600 163,100
Pinnacle West Capital...................... 2,500 51,563
Tandy...................................... 500 16,562
----------
360,725
----------
FINANCIAL--1.0% Fleet Financial Group...................... 1,300 49,075
----------
FINANCIAL SERVICES--10.9% American Express........................... 3,700 109,613
Federal National Mortgage Association...... 1,400 116,550
ITT........................................ 1,600 143,600
Loews...................................... 900 80,550
Student Loan Marketing Association......... 1,100 43,175
Travelers.................................. 1,700 59,075
----------
552,563
----------
FOOD-RESTAURANT--1.6% Luby's Cafeterias.......................... 800 19,000
McDonald's................................. 800 48,000
Shoney's...................................(a) 800 15,200
----------
82,200
----------
FOODS--.1% Ralcorp Holdings........................... 366 5,856
----------
FOODS & RELATED PRODUCTS--2.5% Pet........................................ 1,500 26,625
Philip Morris Cos.......................... 1,800 98,100
----------
124,725
----------
HEALTH CARE--.6% Johnson & Johnson.......................... 700 28,963
----------
HEALTH RELATED--1.6% Columbia/HCA Healthcare.................... 840 35,595
Healthtrust-The Hospital Company...........(a) 1,600 46,800
----------
82,395
----------
HEALTH SERVICES--.2% Genetics Institute.........................(a) 200 8,750
----------
HOUSEHOLD PRODUCTS-MISCELLANEOUS--.6% Libbey..................................... 1,500 28,875
----------
INSURANCE--5.5% ACE........................................ 1,100 31,350
Aetna Life & Casualty...................... 2,200 114,400
Allmerica Property & Casualty Cos.......... 1,100 18,563
Allstate................................... 1,200 28,650
American General........................... 1,200 30,600
American International Group............... 300 25,575
Lincoln National........................... 800 30,500
----------
279,638
----------
MACHINERY-AGRICULTURAL--1.6% Deere & Co................................. 400 30,700
Tenneco.................................... 1,000 51,250
----------
81,950
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
MEDICAL INSTRUMENTATIONS--.5% SpaceLabs Medical..........................(a) 1,000 $ 22,875
----------
MEDICAL SERVICES--.9% Bausch & Lomb.............................. 600 27,900
FHP International..........................(a) 700 17,062
----------
44,962
----------
METAL FABRICATING--.7% Parker-Hannifin............................ 800 34,700
----------
NATURAL GAS--1.8% Occidental Petroleum....................... 3,300 58,575
TransCanada Pipelines...................... 2,500 33,750
----------
92,325
----------
OIL & GAS--7.0% Amoco...................................... 500 28,063
Elf Aquitaine, A.D.R....................... 400 14,550
Exxon...................................... 1,100 69,162
Mobil...................................... 900 70,425
Repsol S.A., A.D.R......................... 1,100 36,300
Royal Dutch Petroleum...................... 700 76,300
Total Petroleum N.A........................ 1,200 20,700
USX-Marathon Group......................... 2,200 37,125
----------
352,625
----------
OIL REFINING--.5% Amerada Hess............................... 500 25,125
----------
PACKAGING--1.4% Premark International...................... 900 71,100
----------
PAPER & PAPER RELATED--3.9% Federal Paper Board........................ 500 10,625
Illinois Power............................. 2,500 55,625
International Paper........................ 400 26,100
James River................................ 700 12,337
Paragon Trade Brands.......................(a) 500 14,500
Repap Enterprises..........................(a) 4,000 13,250
Scott Paper................................ 800 34,300
Stone Container............................(a) 1,000 13,500
Temple-Inland.............................. 400 18,950
----------
199,187
----------
PHARMACEUTICALS--2.2% Genentech..................................(a) 700 34,913
Warner-Lambert............................. 1,100 74,662
----------
109,575
----------
PHOTOGRAPHY--2.2% Eastman Kodak.............................. 2,000 83,000
Xerox...................................... 300 29,662
----------
112,662
----------
RAILROADS--1.2% Conrail.................................... 1,100 62,012
----------
RETAIL-APPAREL--.7% Designs....................................(a) 1,000 14,500
Dress Barn.................................(a) 800 9,200
Russell.................................... 500 14,125
----------
37,825
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., LARGE COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
RETAIL TRADE-DEPARTMENT STORES--6.4% Dillard Department Stores, Cl. A........... 900 $ 30,150
Federated Department Stores................(a) 2,300 49,163
May Department Stores...................... 1,500 62,812
Mercantile Stores.......................... 700 26,600
Penney (J.C.).............................. 800 43,400
Sears Roebuck & Co......................... 2,400 112,800
----------
324,925
----------
RETAIL TRADE-FOOD CHAINS--.2% Food Lion, Cl. A........................... 1,600 9,400
----------
RETAIL TRADE-MISCELLANEOUS--2.2% Caldor.....................................(a) 800 23,600
Dayton Hudson.............................. 700 55,300
Family Dollar Stores....................... 900 13,725
Waban......................................(a) 1,100 18,562
----------
111,187
----------
RETAIL TRADE-SHOES--.5% Melville................................... 600 23,850
----------
SAVINGS & LOAN COMPANIES--1.1% Anchor Bancorp.............................(a) 1,300 16,737
Standard Federal Bank...................... 1,500 38,063
----------
54,800
----------
STEEL--1.4% AK Steel Holding........................... 1,300 29,737
Bethlehem Steel............................(a) 2,000 40,250
----------
69,987
----------
TEXTILES--1.0% Burlington Industries......................(a) 3,400 51,850
----------
TOBACCO--1.4% American Brands............................ 800 27,100
RJR Nabisco Holdings.......................(a) 6,500 41,437
----------
68,537
----------
TRUCKING--.4% Arkansas Best.............................. 1,600 20,200
----------
TOTAL INVESTMENTS (cost $5,092,000)................................................ 99.7% $5,053,638
------ ----------
------ ----------
CASH AND RECEIVABLES (NET)......................................................... .3% $ 15,148
------ ----------
------ ----------
NET ASSETS......................................................................... 100.0% $5,068,786
------ ----------
------ ----------
</TABLE>
- --------------------------------------------------------------------------------
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
COMMON STOCKS--81.6% SHARES VALUE
---------- ----------
<S> <C> <C> <C>
ADVERTISING--1.5% Catalina Marketing.........................(a) 1,500 $ 71,625
----------
AIR TRANSPORT--5.4% Comair Holdings............................ 3,200 66,400
Mesa Airlines..............................(a) 5,500 79,750
SkyWest.................................... 3,000 115,875
----------
262,025
----------
BUILDING & CONSTRUCTION--2.8% Hovnanian Enterprises, Cl. A...............(a) 5,000 62,500
Toll Brothers..............................(a) 5,100 71,400
----------
133,900
----------
CABLE TELEVISION--2.3% People's Choice TV.........................(a) 1,700 40,375
United International Holdings, Cl. A.......(a) 5,200 68,900
----------
109,275
----------
COMMUNICATIONS EQUIPMENT--13.4% ANTEC......................................(a) 3,100 83,313
Andrew.....................................(a) 2,400 93,000
Auspex Systems.............................(a) 8,600 49,450
Chipcom....................................(a) 2,600 121,875
NetFRAME Systems...........................(a) 4,500 51,750
Octel Communications.......................(a) 3,600 73,800
Tellabs....................................(a) 2,700 172,125
----------
645,313
----------
COMPUTER SOFTWARE/SERVICES--2.8% GMIS.......................................(a) 4,400 50,600
Keane......................................(a) 2,200 85,525
----------
136,125
----------
DISTRIBUTION/ENTERTAINMENT--.8% Savoy Pictures Entertainment...............(a) 3,000 36,750
----------
HEALTH SERVICES--1.7% Mariner Health Group.......................(a) 3,500 83,562
----------
HOME FURNISHINGS--1.2% ABT Building Products......................(a) 2,600 59,800
----------
HOMEBUILDING--1.2% Southern Energy Homes......................(a) 4,500 57,375
----------
HOUSEHOLD APPLIANCES--1.3% Fedders....................................(a) 7,800 60,450
----------
INSURANCE--3.0% Phoenix Re................................. 3,000 70,500
United Companies Financial................. 2,000 72,000
----------
142,500
----------
MACHINERY/SPECIALTY--2.6% Lam Research...............................(a) 2,000 60,500
Novellus Systems...........................(a) 1,800 65,475
----------
125,975
----------
MINING & METALS--1.5% Cleveland-Cliffs........................... 2,000 74,250
----------
MOBILE HOMES--3.2% Coachmen Industries........................ 5,000 76,875
Oakwood Homes.............................. 3,600 76,950
----------
153,825
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
NATURAL GAS--.7% Unit.......................................(a) 12,200 $ 35,075
----------
OIL & GAS DRILLING--11.4% Global Marine..............................(a) 32,300 129,200
Helmerich & Payne.......................... 2,800 73,150
Noble Drilling.............................(a) 8,500 58,438
Parker Drilling............................(a) 15,100 86,825
Rowan......................................(a) 15,900 115,275
Sonat Offshore Drilling.................... 5,000 88,750
----------
551,638
----------
OIL & GAS SERVICES--2.3% Weatherford International..................(a) 10,500 112,875
----------
OIL WELL EQUIPMENT & SERVICES--1.3% Varco International........................(a) 11,900 63,963
----------
PACKAGING--2.0% Seda Speciality Packaging..................(a) 4,000 94,000
----------
PHARMACEUTICALS--1.1% Amylin Pharmaceuticals.....................(a) 4,800 52,800
----------
PHOTOGRAPHY--1.6% Avid Technology............................(a) 2,800 75,950
----------
RADIO & TV BROADCASTING--3.0% Associated Communications, Cl. B...........(a) 3,200 69,800
C-TEC......................................(a) 2,400 76,800
----------
146,600
----------
SEMICONDUCTORS--4.9% Altera.....................................(a) 2,400 93,000
Zilog......................................(a) 4,200 140,700
----------
233,700
----------
TELECOMMUNICATIONS--4.1% Cellular Communications, Cl. A.............(a) 2,800 127,400
Rogers Cantel Mobile Communications, Cl. (a)
B........................................ 2,800 68,950
----------
196,350
----------
TEXTILES-SYNTHETIC FIBERS--1.5% Albany International, Cl. A................ 3,700 70,762
----------
TRANSPORTATION--1.5% Hornbeck Offshore Services.................(a) 4,900 74,112
----------
TRUCKING--1.5% Werner Enterprises......................... 2,700 71,550
----------
TOTAL COMMON STOCKS
(cost $4,144,844)........................ $3,932,125
----------
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------- PRINCIPAL
SHORT-TERM INVESTMENTS--16.2% AMOUNT VALUE
---------- ----------
<S> <C> <C> <C>
U.S. TREASURY BILLS: 3.328%, 5/5/1994........................... $ 205,000 $ 204,924
3.50%, 5/19/1994........................... 77,000 76,866
3.56%, 7/21/1994........................... 504,000 499,962
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $781,752).......................... $ 781,752
----------
----------
TOTAL INVESTMENTS (cost $4,926,596)................................................ 97.8% $4,713,877
------ ----------
------ ----------
CASH AND RECEIVABLES (NET)......................................................... 2.2% $ 105,074
------ ----------
------ ----------
NET ASSETS......................................................................... 100.0% $4,818,951
------ ----------
------ ----------
</TABLE>
- --------------------------------------------------------------------------------
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF INVESTMENTS APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
COMMON STOCKS--88.3% SHARES VALUE
---------- ----------
<S> <C> <C> <C>
AIR TRANSPORT--.9% Alaska Air Group...........................(a) 2,000 $ 31,250
CCAIR......................................(a) 5,300 17,225
----------
48,475
----------
AUTO PARTS--1.2% Borg-Warner Automotive..................... 1,500 39,375
Defiance...................................(a) 3,400 22,950
----------
62,325
----------
BANKING--.9% City National..............................(a) 3,800 38,000
National Mercantile Bancorp................(a) 2,700 10,125
----------
48,125
----------
BIOTECHNOLOGY--1.1% Primark....................................(a) 4,200 58,800
----------
BROADCASTING--2.3% Broadcasting Partners, Cl. A............... 1,800 20,700
Chris-Craft Industries..................... 1,339 45,526
SFX Broadcasting, Cl. A.................... 3,900 49,725
----------
115,951
----------
BUILDING & CONSTRUCTION--1.8% Continental Homes Holdings................. 2,300 37,088
NVR........................................(a) 1,700 12,750
U.S. Home..................................(a) 2,000 41,750
----------
91,588
----------
BUILDING & INDUSTRIAL SUPPLIES--2.5% Elco Industries............................ 3,200 61,600
Medalist Industries........................(a) 2,600 34,450
RB&W.......................................(a) 4,700 32,313
----------
128,363
----------
CHEMICALS-MISCELLANEOUS--1.1% NCH........................................ 500 30,313
Scotts, Cl. A..............................(a) 1,500 27,375
----------
57,688
----------
COMMUNICATIONS EQUIPMENT--.6% Code-Alarm.................................(a) 2,800 29,050
----------
COMPUTER EQUIPMENT--6.4% Cherry.....................................(a) 800 23,600
Conner Peripherals.........................(a) 4,000 62,500
Cray Research..............................(a) 1,400 29,925
Evans & Sutherland Computer................(a) 1,000 16,500
PAR Technology.............................(a) 6,600 49,500
Printronix.................................(a) 2,000 16,500
QMS........................................(a) 5,000 40,000
Quantum....................................(a) 1,500 26,531
Rexon......................................(a) 10,000 61,250
----------
326,306
----------
COMPUTER SERVICES--1.2% Beamscope Canada........................... 7,000 60,127
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
CONSTRUCTION--1.8% Offshore Pipelines.........................(a) 4,000 $ 65,500
UTILX......................................(a) 5,000 25,625
----------
91,125
----------
CONSUMER GOODS--1.3% Alberto-Culver, Cl. A...................... 3,500 67,813
----------
CONSUMER PRODUCTS--.5% DeSoto.....................................(a) 3,600 24,300
----------
COSMETICS/TOILETRIES--.3% Block Drug, Cl. A (non-voting)............. 500 16,000
----------
ELECTRONICS & ELECTRICAL Read-Rite..................................(a) 3,000 37,500
EQUIPMENT--1.4%
Thomas Industries.......................... 2,400 34,800
----------
72,300
----------
FOOD-RESTAURANT--3.4% Daka International.........................(a) 5,400 63,450
Longhorn Steaks............................(a) 4,300 40,850
Luby's Cafeterias.......................... 1,900 45,125
Ryan's Family Steak House..................(a) 3,000 23,250
----------
172,675
----------
FOODS--.8% GoodMark Foods............................. 2,100 39,900
----------
FOREST PRODUCTS--.5% Slocan Forest Products..................... 1,400 27,975
----------
HEALTH SERVICES--1.6% Living Centers of America..................(a) 2,800 79,800
----------
HOME FURNISHINGS--2.6% Ameriwood Industries International.........(a) 900 10,575
LADD Furniture............................. 2,600 24,050
Lechters...................................(a) 3,500 42,875
Pier 1 Imports............................. 6,500 56,062
----------
133,562
----------
HOSPITAL RELATED--.7% OrNda Healthcorp...........................(a) 1,294 22,321
PSICOR.....................................(a) 1,300 11,700
----------
34,021
----------
HOUSEHOLD APPLIANCES--.6% Fedders....................................(a) 3,900 30,225
----------
INSURANCE--4.1% Acceptance Insurance Cos. (Warrants).......(a) 9,000 25,875
Allmerica Property & Casualty & Cos........ 1,800 30,375
Argonaut Group............................. 1,100 29,700
Capital Guaranty........................... 800 12,800
Citizens................................... 1,000 16,750
MMI Cos.................................... 3,000 38,438
Merchants Group............................ 1,300 20,068
Meridian Insurance Group................... 3,600 36,000
----------
210,006
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
MACHINERY-INDUSTRIAL/SPECIALTY--1.4% Core Industries............................ 2,400 $ 30,000
Harnischfeger Industries................... 2,000 42,000
----------
72,000
----------
MANUFACTURING--1.0% Vista Resources............................(a) 2,300 52,038
----------
MEDICAL INSTRUMENTATIONS--2.6% Advanced Technology Labs...................(a) 1,300 18,525
Datascope..................................(a) 1,500 21,375
Nellcor....................................(a) 1,500 41,437
SpaceLabs Medical..........................(a) 2,400 54,900
----------
136,237
----------
MEDICAL SERVICES--1.2% Safeguard Health Enterprises...............(a) 2,900 39,875
Wellpoint Health Networks, Cl. A...........(a) 700 22,225
----------
62,100
----------
MINING--1.7% CalMat..................................... 3,500 70,000
Miramar Mining............................. 4,000 17,360
----------
87,360
----------
MINING & METALS--1.4% Cleveland-Cliffs........................... 2,000 74,250
----------
MOBILE HOMES--.9% Coachmen Industries........................ 3,000 46,125
----------
NATURAL GAS--2.9% Plains Petroleum........................... 2,500 55,625
Santa Fe Energy Resources.................. 6,000 53,250
Trident NGL Holdings....................... 4,500 40,500
----------
149,375
----------
OFFICE EQUIPMENT--.5% Pentech International......................(a) 4,000 23,500
----------
OIL & GAS DRILLING--.2% DI Industries..............................(a) 12,000 12,000
----------
OIL & GAS EXPLORATION--.5% Grad & Walker Energy....................... 2,600 27,740
----------
OIL & GAS SERVICES--2.9% CHC Helicopter, Cl. B...................... 5,700 47,414
Enerflex Systems........................... 3,200 42,242
Western Co. of North America...............(a) 4,600 58,650
----------
148,306
----------
OIL REFINING--1.6% Total Petroleum N.A........................ 4,800 82,800
----------
PAPER & PAPER RELATED--3.5% Duplex Products............................(a) 1,000 9,750
Ennis Business Forms....................... 2,600 36,075
Gibson (C.R.).............................. 2,200 15,675
MDC, Cl. A................................. 18,500 40,814
Nashua..................................... 1,200 31,500
Paragon Trade Brands.......................(a) 1,100 31,900
Varitronic Systems.........................(a) 1,400 12,250
----------
177,964
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
PRINTING & PUBLISHING--1.6% Graphic Industries......................... 3,100 $ 29,062
Plenum Publishing.......................... 700 17,325
Pulitzer Publishing........................ 1,000 36,625
----------
83,012
----------
RETAIL-APPAREL--1.8% Designs....................................(a) 3,300 47,850
Dress Barn.................................(a) 3,700 42,550
----------
90,400
----------
RETAIL TRADE-DEPARTMENT STORES--1.1% Bon-Ton Stores.............................(a) 6,800 58,650
----------
RETAIL TRADE-MISCELLANEOUS--4.2% Blair...................................... 600 26,175
Forzani Group, Cl. A....................... 7,000 53,165
Shopko Stores.............................. 1,700 18,912
Uni-Marts.................................. 10,000 58,750
Venture Stores............................. 300 7,125
Waban......................................(a) 3,000 50,625
----------
214,752
----------
RETAIL TRADE-SPECIALTY--1.1% Johnson Worldwide Associates, Cl. A........(a) 1,500 31,500
Little Switzerland.........................(a) 3,300 23,100
----------
54,600
----------
SAVINGS & LOAN COMPANIES--7.7% Advantage Bancorp..........................(a) 700 19,075
Albank Financial........................... 2,000 41,125
AmeriFed Financial......................... 500 20,750
Anchor Bancorp.............................(a) 2,000 25,750
Astoria Financial.......................... 900 26,100
Downey Savings & Loan Association.......... 2,300 43,125
Farm & Home Financial...................... 1,100 33,137
Fidelity New York FSB...................... 2,300 43,700
First Palm Beach Bancorp................... 1,300 20,800
NBB Bancorp................................ 800 34,300
Standard Federal Bank...................... 2,000 50,750
Sterling Bancshares........................ 500 19,250
Sterling Financial......................... 1,300 15,600
----------
393,462
----------
SERVICES--.7% Kinder-Care Learning Centers...............(a) 2,800 37,100
----------
SOFTWARE--.6% Micrografx.................................(a) 4,700 30,256
----------
STEEL--2.0% Chaparral Steel............................ 3,400 34,425
Kentucky Electric Steel.................... 2,400 24,600
Schnitzer Steel Industries, Cl. A.......... 2,000 45,500
----------
104,525
----------
TELECOMMUNICATIONS--.1% Associated Communications, Cl. A...........(a) 300 6,825
----------
TRANSPORTATION-MISCELLANEOUS--.5% Alexander & Baldwin........................ 1,100 27,500
----------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1994 (UNAUDITED)
<TABLE>
<S> <C> <C> <C>
TRUCKING--2.4% Arkansas Best.............................. 2,500 $ 31,562
Builders Transport.........................(a) 3,500 49,000
Cannon Express, Cl. B......................(a) 2,100 24,150
Matlack Systems............................(a) 1,000 16,000
----------
120,712
----------
WASTE MANAGEMENT--.4% Groundwater Technology.....................(a) 1,300 18,525
----------
WHOLESALE--2.2% Allou Health & Beauty Care, Cl. A..........(a) 1,500 14,813
International Recovery..................... 5,300 76,850
Morgan Products............................(a) 3,200 19,600
----------
111,263
----------
TOTAL COMMON STOCKS
(cost $4,730,384)........................ $4,529,877
----------
----------
<CAPTION>
- ----------------------------------------------------------------------------------- PRINCIPAL
SHORT-TERM INVESTMENTS--9.3% AMOUNT
----------
<S> <C> <C> <C>
U.S. TREASURY BILLS: 3.25%, 5/5/1994............................(b) $ 60,000 $ 59,978
3.35%, 5/19/1994........................... 83,000 82,861
3.67%, 7/21/1994...........................(b) 337,000 334,220
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $477,059).......................... $ 477,059
----------
----------
TOTAL INVESTMENTS (cost $5,207,443)................................................ 97.6% $5,006,936
------ ----------
------ ----------
CASH AND RECEIVABLES (NET)......................................................... 2.4% $ 124,399
------ ----------
------ ----------
NET ASSETS......................................................................... 100.0% $5,131,335
------ ----------
------ ----------
</TABLE>
- --------------------------------------------------------------------------------
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Partially held by broker as collateral for open short positions.
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY VALUE PORTFOLIO
STATEMENT OF SECURITIES SOLD SHORT APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
COMMON STOCKS--3.4% SHARES VALUE
------- --------
<S> <C> <C>
Appliance Recycling Centers of America.................................................... 2,000 $ 24,000
Aviall.................................................................................... 1,800 27,000
Dyersburg................................................................................. 4,000 27,500
Flowers Industries........................................................................ 1,500 25,313
Lone Star Industries...................................................................... 324 5,022
Lone Star Industries (Warrants)........................................................... 1,654 11,578
Megahertz................................................................................. 1,700 19,550
Presstek.................................................................................. 800 18,300
Sodak Gaming.............................................................................. 1,200 18,150
--------
TOTAL SECURITIES SOLD SHORT (proceeds $217,804)........................................... $176,413
--------
--------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
---------- ---------- ---------- ----------
ASSETS:
Investments in securities, at value [cost--Note 4(b)]--
see statement................................................ $4,856,844 $5,053,638 $4,713,877 $5,006,936
Cash........................................................... 6,392 1,677 98,044 68,926
Dividends receivable........................................... 3,326 7,631 -- 2,709
Receivable from brokers for proceeds on securities sold
short.......................................................... -- -- -- 217,804
Receivable for investment securities sold...................... -- -- -- 6,951
Prepaid expenses--Note 2(f).................................... 27,459 27,204 28,016 26,881
Due from The Dreyfus Corporation............................... 3,241 4,220 2,629 4,062
---------- ---------- ---------- ----------
4,897,262 5,094,370 4,842,566 5,334,269
---------- ---------- ---------- ----------
LIABILITIES:
Securities sold short, at value (proceeds $217,804)............ $ -- $ -- $ -- $ 176,413
Accrued expenses and other liabilities......................... 24,080 25,584 23,615 26,521
---------- ---------- ---------- ----------
24,080 25,584 23,615 202,934
---------- ---------- ---------- ----------
NET ASSETS....................................................... $4,873,182 $5,068,786 $4,818,951 $5,131,335
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
REPRESENTED BY:
Paid-in capital................................................ $5,070,894 $5,085,000 $5,082,025 $5,147,111
Accumulated undistributed investment income--net............... 27,584 39,176 14,394 53,490
Accumulated undistributed net realized gain (loss) on
investments.................................................. (13,869) (17,028) (64,749) 89,850
Accumulated net unrealized (depreciation)
on investments--Note 4(b).................................... (211,427) (38,362) (212,719) (159,116)
---------- ---------- ---------- ----------
NET ASSETS at value.............................................. $4,873,182 $5,068,786 $4,818,951 $5,131,335
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
SHARES OF COMMON STOCK OUTSTANDING
[400 million shares (with 100 million allocated to each series)
of
$.001 par value Common Stock authorized]..................... 405,601 406,658 406,632 411,440
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
NET ASSET VALUE per share
(Net Assets / Shares Outstanding).............................. $12.01 $12.46 $11.85 $12.47
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FROM DECEMBER 29, 1993 (COMMENCEMENT OF OPERATIONS) TO
APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
--------- --------- --------- ---------
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $209, $110 and $126 foreign taxes
withheld at source for the Large Company Growth, Large Company
Value and Small Company Value Portfolios, respectively)........ $ 18,473 $ 32,160 $ 2,836 $ 44,518
INTEREST......................................................... 9,111 7,016 11,558 9,338
--------- --------- --------- ---------
TOTAL INCOME................................................. 27,584 39,176 14,394 53,856
--------- --------- --------- ---------
EXPENSES--NOTE 2(C):
Management fee--Note 3(a)........................................ $ 12,669 $ 12,937 $ 12,655 $ 13,263
Shareholder servicing costs--Note 3(b,c)......................... 13,954 14,188 13,300 14,522
Auditing fees.................................................... 4,804 5,203 4,804 5,204
Organization expenses--Note 2(f)................................. 2,462 2,473 2,496 2,444
Legal fees....................................................... 1,963 2,043 1,963 2,043
Shareholders' reports............................................ 1,920 2,080 1,920 2,080
Registration fees................................................ 1,740 1,753 1,744 1,775
Custodian fees................................................... 784 1,616 826 2,217
Directors' fees--Note 3(d)....................................... 660 697 663 702
Dividends on securities sold short............................... -- -- -- 366
Miscellaneous.................................................... 693 693 695 692
--------- --------- --------- ---------
41,649 43,683 41,066 45,308
Less--expense reimbursement from Manager
due to undertaking--Note 3(a).................................. 41,649 43,683 41,066 44,942
--------- --------- --------- ---------
TOTAL EXPENSES............................................... -- -- -- 366
--------- --------- --------- ---------
INVESTMENT INCOME--NET....................................... 27,584 39,176 14,394 53,490
--------- --------- --------- ---------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments--Note 4(a):
Long transactions................................................ $ (13,869) $ (17,028) $ (64,749) $ 83,628
Short sale transactions.......................................... -- -- -- 6,222
--------- --------- --------- ---------
NET REALIZED GAIN (LOSS)......................................... (13,869) (17,028) (64,749) 89,850
Net unrealized (depreciation) on investments
and securities sold short........................................ (211,427) (38,362) (212,719) (159,116)
--------- --------- --------- ---------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............ (225,296) (55,390) (277,468) (69,266)
--------- --------- --------- ---------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............... $(197,712) $ (16,214) $(263,074) $ (15,776)
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS FROM DECEMBER 29, 1993 (COMMENCEMENT OF
OPERATIONS) TO APRIL 30, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY
GROWTH VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
---------- ---------- ---------- ----------
OPERATIONS:
Investment income--net......................................... $ 27,584 $ 39,176 $ 14,394 $ 53,490
Net realized gain (loss) on investments........................ (13,869) (17,028) (64,749) 89,850
Net unrealized (depreciation) on investments for the period.... (211,427) (38,362) (212,719) (159,116)
---------- ---------- ---------- ----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (197,712) (16,214) (263,074) (15,776)
---------- ---------- ---------- ----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.................................. 5,053,200 5,060,000 5,096,363 5,123,611
Cost of shares redeemed........................................ (7,306) -- (39,338) (1,500)
---------- ---------- ---------- ----------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS....... 5,045,894 5,060,000 5,057,025 5,122,111
---------- ---------- ---------- ----------
TOTAL INCREASE IN NET ASSETS............................... 4,848,182 5,043,786 4,793,951 5,106,335
NET ASSETS:
Beginning of period--Note 1.................................... 25,000 25,000 25,000 25,000
---------- ---------- ---------- ----------
End of period (including undistributed investment income--net
--see Statement of Assets and Liabilities)................... $4,873,182 $5,068,786 $4,818,951 $5,131,335
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
<CAPTION>
SHARES SHARES SHARES SHARES
<S> <C> <C> <C> <C>
---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS:
Shares sold.................................................... 404,190 404,658 407,787 409,562
Shares redeemed................................................ (589) -- (3,155) (122)
---------- ---------- ---------- ----------
NET INCREASE IN SHARES OUTSTANDING........................... 403,601 404,658 404,632 409,440
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (UNAUDITED)
Reference is made to page 2 of the Prospectus dated July 1, 1994.
See notes to financial statements.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--GENERAL:
Dreyfus Focus Funds, Inc. (the "Fund") was incorporated on November 16,
1993 and operates as a series company currently issuing four classes of shares
of Common Stock: the Large Company Growth Portfolio, the Large Company Value
Portfolio, the Small Company Growth Portfolio and the Small Company Value
Portfolio. The Fund accounts separately for the assets, liabilities and
operations of each series. The Fund had no operations until December 29, 1993
(when operations commenced for all series', other than matters relating to its
organization and registration as a diversified open-end management investment
company under the Investment Company Act of 1940 ("Act") and the Securities Act
of 1933 and the sale and issuance of 2,000 shares of Common Stock ("Initial
Shares") of each series to The Dreyfus Corporation ("Manager"). Dreyfus Service
Corporation ("Distributor"), a wholly-owned subsidiary of the Manager, acts as
the distributor of the Fund's shares. The Fund's fiscal year ends on October 31.
As of April 30, 1994, the Manager held the following shares:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio 402,000 Small Company Growth Portfolio 402,000
Large Company Value Portfolio 402,000 Small Company Value Portfolio 407,800
</TABLE>
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES:
(A) PORTFOLIO VALUATION: Each series' investments in 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, except for open short positions, where the
asked price is used for valuation purposes. Bid price is used when no asked
price is available. Short-term investments are carried at amortized cost, which
approximates value. Investments denominated in foreign currencies are translated
to U.S. dollars at the prevailing rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis.
(C) EXPENSES: Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends payable to shareholders are
recorded by each series on the ex-dividend date. Dividends from investment
income-net and dividends from net realized capital gain, with respect to each
series, are normally declared and paid annually, but each series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that a net realized
capital gain of a series can be offset by a capital loss carryover, if any, of
that series, such gain will not be distributed.
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a
regulated investment company, if such qualification is in the best interests of
its shareholders, by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal Revenue
Code, and to make distributions of taxable income sufficient to relieve it from
all, or substantially all, Federal income taxes. For Federal income tax
purposes, each series is treated as a single entity for the purpose of
determining such qualification.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
(F) OTHER: Organization expenses paid by the Fund are included in prepaid
expenses and are being amortized to operations from the date operations
commenced over the period during which it is expected that a benefit will be
realized, not to exceed five years. At April 30, 1994, the unamortized balance
of such expenses for each of the respective series amounted to the following:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $27,112 Small Company Growth Portfolio $27,484
Large Company Value Portfolio 27,202 Small Company Value Portfolio 26,879
</TABLE>
In the event that any of the Initial Shares, with respect to all series,
are redeemed during the amortization period, the redemption proceeds will be
reduced by any unamortized organization expenses for that series in the same
proportion as the number of such shares being redeemed bears to the number of
such shares outstanding of that series at the time of such redemption.
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .75 of 1% of the average daily
value of each series' net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses of any series, exclusive
of taxes, brokerage, interest on borrowings (which, in the view of Stroock &
Stroock & Lavan, counsel to the Series, also contemplates dividends accrued on
securities sold short) and extraordinary expenses, exceed the expense limitation
of any state having jurisdiction over the Series, that series may deduct from
payments to be made to the Manager, or the Manager will bear the amount of such
excess to the extent required by state law. The most stringent state expense
limitation applicable to the Series presently requires reimbursement of expenses
in any full fiscal year that such expenses of a series exceed 2 1/2% of the
first $30 million, 2% of the next $70 million, and 1 1/2% of the excess over
$100 million of the average value of that series' net assets in accordance with
California "blue sky" regulations. However, the Manager has undertaken from
December 29, 1993 through June 30, 1994, or until such time as the net assets of
a series exceed $25 million, regardless of whether they remain at that level, to
assume all expenses of the Series (excluding certain expenses as described
above).
The expense reimbursements, pursuant to the undertaking amounted to the
following for the period ended April 30, 1994:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $41,649 Small Company Growth Portfolio $41,066
Large Company Value Portfolio 43,683 Small Company Value Portfolio 44,942
</TABLE>
The undertakings may be modified by the Manager from time to time, provided
that the resulting expense reimbursement would not be less than the amount
required pursuant to the agreements.
(B) Under the Distribution Plan ("the Plan") adopted pursuant to Rule 12b-1
under the Act, each Series pays the Distributor, at an annual rate of .50 of 1%
of the value of each Series' average daily net assets, for costs and expenses in
connection with advertising, marketing and distributing the Series' shares and
for servicing shareholder accounts. The Distributor may make payments to one or
more Service Agents (a securities dealer, financial institution, or other
industry professional) based on the value of the Series' shares owned by clients
of the Service Agents. The plan also separately provides for the Fund to bear
the costs of preparing, printing and distributing certain of the Fund's
prospectuses and statements of additional information and costs associated with
implementing and operating the Plan, not to exceed the greater of $100,000 or
.005 of 1% of each Series' average daily net assets for any full fiscal year.
During the period ended April 30, 1994, the following was charged to each series
pursuant to the Plan:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $8,446 Small Company Growth Portfolio $8,437
Large Company Value Portfolio 8,625 Small Company Value Portfolio 8,842
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
(C) Under the Shareholder Services Plan, each series pays the Distributor
at an annual rate of .25 of 1% of the value of a series' average daily net
assets for servicing shareholder accounts. The services provided may include
personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Series 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 amount to be paid to Service Agents.
The following summarizes the aggregate amount charged by the Distributor,
pursuant to the Shareholder Services Plan during the period ended April 30,
1994:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $4,223 Small Company Growth Portfolio $4,218
Large Company Value Portfolio 4,312 Small Company Value Portfolio 4,421
</TABLE>
(D) Certain officers and directors of the Fund are "affiliated persons," as
defined in the Act, of the Manager and/or the Distributor. Each director who is
not an "affiliated person" receives from the Fund an annual fee of $3,000 and an
attendance fee of $250 per meeting.
(E) On December 5, 1993, the Manager entered into an Agreement and Plan of
Merger (the "Merger Agreement") providing for the merger of the Manager with a
subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a number of
contingencies, including receipt of certain regulatory approvals and approvals
of the stockholders of the Manager and of Mellon. The merger is expected to
occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board and
shareholders before completion of the merger. Shareholder approval will be
solicited by a proxy statement.
NOTE 4--SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term
securities, for the period ended April 30, 1994:
LONG TRANSACTIONS:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Large Company Growth Portfolio...................................... $4,802,669 $ 133,421
Large Company Value Portfolio....................................... 5,568,316 458,858
Small Company Growth Portfolio...................................... 4,748,189 538,100
Small Company Value Portfolio....................................... 5,781,221 1,133,957
</TABLE>
SHORT SALE TRANSACTIONS;
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Small Company Value Portfolio....................................... $ 122,130 $ 346,156
</TABLE>
The Series is engaged in short-selling which obligates the Series to
replace the security borrowed by purchasing the security at current market
value. The Series would incur a loss if the price of the security increases
between the date of the short sale and the date on which the Series replaces the
borrowed security. The Series would realize a gain if the price of the security
declines between those dates. Until the Series replaces the borrowed security,
the Series will maintain daily, a segregated account with a broker and
custodian, of cash and/or U.S. Government securities sufficient to cover its
short position. Securities sold short at April 30, 1994 and their related market
values and proceeds are set forth in the Statement of Securities Sold Short.
<PAGE>
- --------------------------------------------------------------------------------
DREYFUS FOCUS FUNDS, INC.
(B) The following summarizes the gross and accumulated net unrealized
appreciation (depreciation) on investments for each series at April 30, 1994:
<TABLE>
<CAPTION>
GROSS GROSS
APPRECIATION (DEPRECIATION) NET
------------ -------------- ---------
<S> <C> <C> <C>
Large Company Growth Portfolio...................... $135,905 $ (347,332) $(211,427)
Large Company Value Portfolio....................... 201,480 (239,842) (38,362)
Small Company Growth Portfolio...................... 211,588 (424,307) (212,719)
Small Company Value Portfolio....................... 233,344 (392,460) (159,116)
</TABLE>
At April 30, 1994, the cost of investments of each series for Federal
income tax purposes was substantially the same as the cost for financial
reporting purposes. The cost of investments for each series for financial
reporting purposes as of April 30, 1994 was as follows:
<TABLE>
<S> <C> <S> <C>
Large Company Growth Portfolio $5,068,271 Small Company Growth Portfolio $4,926,596
Large Company Value Portfolio 5,092,000 Small Company Value Portfolio 5,207,443
</TABLE>
<PAGE>
DREYFUS FOCUS FUNDS, INC.
PART C. OTHER INFORMATION
_________________________
Item 24. Financial Statements and Exhibits. - List
_______ _________________________________________
(a) Financial Statements:
Included in Part A of the Registration Statement
Condensed Financial Information for the period from December
29, 1993 (commencement of operations) to April 30, 1994
(unaudited).
Included in Part B of the Registration Statement:
Statement of Investments-- April 30, 1994 (unaudited).
Statement of Securities Sold Short-- April 30, 1994
(unaudited).
Statement of Assets and Liabilities-- April 30, 1994
(unaudited).
Statement of Operations-- for the period from December
29, 1993 (commencement of operations) to April 30, 1994
(unaudited).
Statement of Changes in Net Assets--for each of the
years ended for the period from December 29, 1993
(commencement of operations) to April 30, 1994
(unaudited).
Notes to Financial Statements (unaudited).
Statement of Assets and Liabilities dated December 17,
1993 (audited).
Report of Ernst & Young, Independent Auditors, dated
December 20, 1993.
Schedules No. I through VII and other financial statement information, for
which provision is made in the applicable accounting regulations of the
Securities and Exchange Commission, are either omitted because they are not
required under the related instructions, they are inapplicable, or the
required information is presented in the financial statements or notes
thereto which are included in Part B of the Registration Statement.
Item 24. Financial Statements and Exhibits. - List (continued)
_______ _____________________________________________________
(b) Exhibits:
(1) Registrant's Articles of Incorporation and Articles of Amendment
are incorporated by reference to Exhibit (1) of Pre-Effective
Amendment No. to the Registration Statement on Form N-1A, filed on
December 22, 1993.
(2) Registrant's By-Laws, as amended, are incorporated by reference to
Exhibit (2) of Pre-Effective Amendment No. 1 to the Registration
Statement on Form N-1A, filed on December 22, 1993.
(5) Management Agreement is incorporated by reference to Exhibit (5)
of Pre-Effective Amendment No. 1 to the Registration Statement on
Form N-1A, filed on December 22, 1993.
(6) Distribution Agreement is incorporated by reference to Exhibit (6)
of Pre-Effective Amendment No. 1 to the Registration Statement on
Form N-1A, filed on December 22, 1993.
(8) Registrant's Custody Agreement is incorporated by reference to
Exhibit (8) of Pre-Effective Amendment No. 1 to the Registration
Statement on Form N-1A, filed on December 22, 1993.
(9) Registrant's Shareholder Service Plan is incorporated by reference
to Exhibit (9) of Pre-Effective Amendment No. 1 to the
Registration Statement on Form N-1A, filed on December 22, 1993.
(10) Opinion and consent of Registrant's counsel is incorporated by
reference to Exhibit (10) of Pre-Effective Amendment No. 1 to the
Registration Statement on Form N-1A, filed on December 22, 1993.
(11) Consent of Independent Auditors.
(16) Schedules of Computation of Performance Data.
Item 24. Financial Statements and Exhibits. - List (continued)
_______ _____________________________________________________
Other Exhibits
______________
(a) Power of Attorney. Powers of Attorney of the Directors
and officers are incorporated by reference to the
Signature Page of Pre-Effective Amendment No. 1 to the
Registration Statement on Form N-1A, filed on December
22, 1993.
(b) Certificate of Secretary is incorporated by reference to
Other Exhibits (b) of Pre-Effective Amendment No. 1 to
the Registration Statement on Form N-1A, filed on
December 22, 1993.
Item 25. Persons Controlled by or under Common Control with Registrant.
_______ ______________________________________________________________
Not Applicable
Item 26. Number of Holders of Securities.
_______ ________________________________
(1) (2)
Number of Record
Title of Class Holders as of June 15, 1994
______________ _____________________________
Common Stock
(Par value $.001)
Dreyfus Large Company Growth 7
Dreyfus Large Company Value 10
Dreyfus Small Company Growth 14
Dreyfus Small Company Value 10
Item 27. Indemnification
_______ _______________
The Statement as to the general effect of any contract,
arrangements or statute under which a director, officer,
underwriter or affiliated person of the Registrant is insured or
indemnified in any manner against any liability which may be
incurred in such capacity, other than insurance provided by any
director, officer, affiliated person or underwriter for their own
protection, is incorporated by reference to Item 27 of Part II of
Pre-Effective Amendment No. 1 to the Registration Statement on
Form N-1A, filed on December 22, 1993.
Reference is also made to the Distribution Agreement filed as
Exhibit (6) of Pre-Effective Amendment No. 1 to the Registration
Statement on Form N-1A, filed on December 22, 1993.
Item 28. Business and Other Connections of Investment Adviser.
_______ ____________________________________________________
The Dreyfus Corporation ("Dreyfus") and subsidiary companies
comprise a financial service organization whose business
consists primarily of providing investment management services
as the investment adviser, manager and distributor for sponsored
investment companies registered under the Investment Company Act
of 1940 and as an investment adviser to institutional and
individual accounts. Dreyfus also serves as sub-investment
adviser to and/or administrator of other investment companies.
Dreyfus Service Corporation, a wholly-owned subsidiary of
Dreyfus, serves primarily as distributor of shares of investment
companies sponsored by Dreyfus and of other investment companies
for which Dreyfus acts as investment adviser, sub-investment
adviser or administrator. Dreyfus Management, Inc., another
wholly-owned subsidiary, provides investment management services
to various pension plans, institutions and individuals.
Item 28. Business and Other Connections of Investment Adviser (continued)
________ ________________________________________________________________
Officers and Directors of Investment Adviser
____________________________________________
Name and Position
with Dreyfus Other Businesses
_________________ ________________
MANDELL L. BERMAN Real estate consultant and private investor
Director 29100 Northwestern Highway, Suite 370
Southfield, Michigan 48034;
Past Chairman of the Board of Trustees of
Skillman Foundation.
Member of The Board of Vintners Intl.
ALVIN E. FRIEDMAN Senior Adviser to Dillon, Read & Co. Inc.
Director 535 Madison Avenue
New York, New York 10022;
Director and member of the Executive
Committee of Avnet, Inc.**
ABIGAIL Q. McCARTHY Author, lecturer, columnist and educational
Director consultant
2126 Connecticut Avenue
Washington, D.C. 20008
DAVID B. TRUMAN Educational consultant;
Director Past President of the Russell Sage Foundation
230 Park Avenue
New York, New York 10017;
Past President of Mount Holyoke College
South Hadley, Massachusetts 01075;
Former Director:
Student Loan Marketing Association
1055 Thomas Jefferson Street, N.W.
Washington, D.C. 20006;
Former Trustee:
College Retirement Equities Fund
730 Third Avenue
New York, New York 10017
HOWARD STEIN Chairman of the Board, President and Investment
Chairman of the Board and Officer:
Chief Executive Officer Dreyfus Capital Growth Fund (A Premier
Fund)++;
Chairman of the Board and Investment Officer:
The Dreyfus Fund Incorporated++;
Dreyfus New Leaders Fund, Inc.++;
The Dreyfus Socially Responsible Growth
Fund, Inc. ++;
The Dreyfus Third Century Fund, Inc.++;
Chairman of the Board:
Dreyfus Acquisition Corporation*;
Dreyfus America Fund++++;
The Dreyfus Consumer Credit Corporation*;
HOWARD STEIN Dreyfus Land Development Corporation*;
(cont'd) Dreyfus Management, Inc.*;
Dreyfus Service Corporation*;
Chairman of the Board and Chief Executive
Officer:
Major Trading Corporation*;
President, Managing General Partner and
Investment Officer:
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus Strategic Growth, L.P. ++;
Director, President and Investment Officer:
Dreyfus Appreciation Fund, Inc.++;
Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Focus Funds, Inc.++;
Dreyfus Global Investing++;
Dreyfus Growth Opportunity Fund, Inc.++;
Premier Growth Fund, Inc.++;
Dreyfus Growth Allocation Fund, Inc.++
Director and Investment Officer:
Dreyfus Growth and Income Fund, Inc.++;
President:
Dreyfus Consumer Life Insurance Company*;
Director:
Avnet, Inc.**;
Comstock Partners Strategy Fund, Inc.***;
Dreyfus A Bonds Plus, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
The Dreyfus Fund International
Limited++++++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus Partnership Management,
Inc.*;
Dreyfus Personal Management, Inc.*;
Dreyfus Precious Metals, Inc.*;
Dreyfus Realty Advisors, Inc.+++;
Dreyfus Service Organization, Inc.*;
Dreyfus Strategic Governments Income,
Inc.++;
The Dreyfus Trust Company++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
HOWARD STEIN Seven Six Seven Agency, Inc.*;
(cont'd) World Balanced Fund++++;
Trustee and Investment Officer:
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Strategic Investing++;
Dreyfus Variable Investment Fund++;
Trustee:
Corporate Property Investors
New York, New York;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Institutional Short Term Treasury
Fund++;
Dreyfus Investors GNMA Fund++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Strategic Income++
JULIAN M. SMERLING Director and Executive Vice President:
Vice Chairman of the Dreyfus Service Corporation*;
Board of Directors Director and Vice President:
Dreyfus Consumer Life Insurance Company*;
Dreyfus Service Organization, Inc.*;
Vice Chairman and Director:
The Dreyfus Trust Company++;
The Dreyfus Trust Company (N.J.)++;
Director:
The Dreyfus Consumer Credit Corporation*;
Dreyfus Partnership Management, Inc.*;
Seven Six Seven Agency, Inc.*
JOSEPH S. DiMARTINO Director and Chairman of the Board:
President, Chief Operating The Dreyfus Trust Company++;
Officer and Director Director, President and Investment Officer:
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus International Equity Fund, Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
Director and President:
Dreyfus Acquisition Corporation*;
The Dreyfus Consumer Credit Corporation*;
JOSEPH S. DiMARTINO Dreyfus Edison Electric Index Fund,
(cont'd) Inc.++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Partnership Management, Inc.*;
The Dreyfus Trust Company (N.J.)++;
Dreyfus-Wilshire Target Funds, Inc.++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Trustee, President and Investment Officer:
Dreyfus Cash Management++;
Dreyfus Government Cash Management++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus Variable Investment Fund++;
Premier GNMA Fund++;
Trustee and President:
First Prairie Cash Management++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie U.S. Government Income
Fund++;
First Prairie U.S. Treasury Securities
Cash Management++;
Trustee, Vice President and Investment Officer:
Dreyfus Institutional Short Term
Treasury Fund++;
Trustee and Investment Officer:
Premier GNMA Fund++;
Director and Executive Vice President:
Dreyfus Service Corporation*;
Director, Vice President and Investment
Officer:
Dreyfus Balanced Fund, Inc.++;
Director and Vice President:
Dreyfus Service Organization, Inc.*;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
Director and Investment Officer:
Dreyfus A Bonds Plus, Inc.++;
Dreyfus Appreciation Fund, Inc.++;
Dreyfus Short-Term Income Fund, Inc.++;
Premier Growth Fund, Inc.++;
Director:
Dreyfus Management, Inc.*;
Dreyfus Personal Management, Inc.*;
Noel Group, Inc.
667 Madison Avenue
New York, New York 10021;
JOSEPH S. DiMARTINO Trustee:
(cont'd) Bucknell University
Lewisburg, Pennsylvania 17837;
President and Investment Officer:
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Vice President and former Treasurer and
Director:
National Muscular Dystrophy Association
810 Seventh Avenue
New York, New York 10019;
Vice President:
Dreyfus Consumer Life Insurance Company*;
Investment Officer:
The Dreyfus Fund Incorporated++;
Dreyfus Investors GNMA Fund++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
President, Chief Operating Officer and
Director:
Major Trading Corporation*
LAWRENCE M. GREENE Chairman of the Board:
Legal Consultant and The Dreyfus Security Savings
Director Bank, F.S.B.+;
Director and Executive Vice President:
Dreyfus Service Corporation*;
Director and Vice President:
Dreyfus Acquisition Corporation*;
Dreyfus Consumer Life Insurance Company*;
Dreyfus Service Organization, Inc.*;
Director:
Dreyfus America Fund++++;
Dreyfus BASIC Municipal Fund ++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus-Lincoln, Inc.*;
Dreyfus Management, Inc.*;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
LAWRENCE M. GREENE Dreyfus New Leaders Fund, Inc.++;
(cont'd) Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus Precious Metals, Inc.*;
Dreyfus Thrift & Commerce+++;
The Dreyfus Trust Company (N.J.)++;
Seven Six Seven Agency, Inc.*;
Vice President:
Dreyfus Growth Opportunity Fund, Inc.++;
Trustee:
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Investment Officer:
The Dreyfus Fund Incorporated++
ROBERT F. DUBUSS Director and Treasurer:
Vice President Major Trading Corporation*;
Director and Vice President:
The Dreyfus Consumer Credit Corporation*;
The Truepenny Corporation*;
Vice President:
Dreyfus Consumer Life Insurance Company*;
Treasurer:
Dreyfus Management, Inc.*;
Dreyfus Precious Metals, Inc.*;
Dreyfus Service Corporation*;
Assistant Treasurer:
The Dreyfus Fund Incorporated++;
Director:
The Dreyfus Trust Company++;
The Dreyfus Trust Company (N.J.)++;
Dreyfus Thrift & Commerce****
ALAN M. EISNER Director and President:
Vice President and Chief The Truepenny Corporation*;
Financial Officer Vice President and Chief Financial Officer:
Dreyfus Acquisition Corporation*;
Dreyfus Consumer Life Insurance Company*;
Treasurer:
Dreyfus Realty Advisors, Inc.+++;
Treasurer, Financial Officer and Director:
The Dreyfus Trust Company++;
The Dreyfus Trust Company (N.J.)++;
Director:
Dreyfus Thrift & Commerce****;
Vice President and Director:
The Dreyfus Consumer Credit Corporation*
DAVID W. BURKE Vice President and Director:
Vice President and Chief The Dreyfus Trust Company++;
Administrative Officer Formerly, President:
CBS News, a division of CBS, Inc.
524 West 57th Street
New York, New York 10019
Director:
Dreyfus BASIC Municipal Fund++;
Dreyfus California Tax Exempt Bond
Fund, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
Dreyfus Intermediate Municipal Bond
Fund, Inc.++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New York Tax Exempt Bond
Fund, Inc.++;
Dreyfus Ohio Municipal Money Market
Fund, Inc.++;
Trustee:
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus California Tax Exempt Money
Market Fund++;
Dreyfus Cash Management++;
Dreyfus Connecticut Intermediate Municipal
Bond Fund++;
Dreyfus Government Cash Management++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt
Bond Fund++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
DAVID W. BURKE Dreyfus Pennsylvania Municipal Money
(cont'd) Market Fund++;
Dreyfus Short-Intermediate Government
Fund++
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Tax Exempt Cash Management++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++
ELIE M. GENADRY President:
Vice President - Institutional Services Division of Dreyfus
Institutional Sales Service Corporation*;
Broker-Dealer Division of Dreyfus Service
Corporation*;
Group Retirement Plans Division of Dreyfus
Service Corporation;
Executive Vice President:
Dreyfus Service Corporation*;
Dreyfus Service Organization, Inc.*;
Senior Vice President:
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus Tax Exempt Cash Management++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus-Wilshire Target Funds, Inc.++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Vice President:
The Dreyfus Trust Company++;
Premier Insured Municipal Bond Fund++;
Premier California Municipal Bond Fund++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
Vice President-Sales:
The Dreyfus Trust Company (N.J.)++;
Treasurer:
Pacific American Fund+++++
DANIEL C. MACLEAN Director, Vice President and Secretary:
Vice President and General Dreyfus Precious Metals, Inc.*;
Counsel Director and Vice President:
The Dreyfus Consumer Credit Corporation*;
The Dreyfus Trust Company (N.J.)++;
Director and Secretary:
Dreyfus Partnership Management, Inc.*;
Major Trading Corporation*;
The Truepenny Corporation+;
Director:
Dreyfus America Fund++++;
Dreyfus Consumer Life Insurance Company*;
The Dreyfus Trust Company++;
Vice President:
Dreyfus Appreciation Fund, Inc.++;
Dreyfus BASIC Municipal Fund++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Florida Intermediate Municipal
Bond Fund++;
Dreyfus Focus Funds, Inc.++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth and Income Fund, Inc.++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus Investors GNMA Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
DANIEL C. MACLEAN Dreyfus New York Insured Tax Exempt Bond
(cont'd) Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
The Dreyfus Socially Responsible Growth
Fund, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus-Wilshire Target Funds, Inc.++;
First Prairie Cash Management++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
First Prairie U.S. Government Income
Fund++;
First Prairie U.S. Treasury Securities
Cash Management++;
General California Municipal Money Market
Fund++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Premier Insured Municipal Bond Fund++;
Premier California Municipal Bond Fund++;
Premier GNMA Fund++;
Premier Growth Fund, Inc.++;
Premier Municipal Bond Fund++;
DANIEL C. MACLEAN Premier New York Municipal Bond Fund++;
(cont'd) Premier State Municipal Bond Fund++;
Secretary:
Dreyfus A Bonds Plus, Inc.++;
Dreyfus Acquisition Corporation*;
Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Balanced Fund, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus California Municipal Income,
Inc.++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Connecticut Intermediate Municipal
Bond Fund++;
Dreyfus Florida Municipal Money Market
Fund++;
The Dreyfus Fund Incorporated++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus Global Investing++;
Dreyfus Growth Allocation Fund, Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus International Equity Fund, Inc.++;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Income, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus New York Municipal Income, Inc.++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
Dreyfus Service Corporation*;
Dreyfus Service Organization, Inc.*;
Dreyfus Short-Term Income Fund, Inc.++;
Dreyfus Strategic Governments Income,
Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
DANIEL C. MACLEAN Dreyfus Strategic Municipal Bond Fund,
(cont'd) Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Variable Investment Fund++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
General California Municipal Bond Fund,
Inc.++;
Seven Six Seven Agency, Inc.*;
Director and Assistant Secretary:
The Dreyfus Fund International
Limited++++++
JEFFREY N. NACHMAN Vice President-Financial:
Vice President - Mutual Dreyfus A Bonds Plus, Inc.++;
Fund Accounting Dreyfus Appreciation Fund, Inc.++;
Dreyfus California Municipal Income,
Inc.++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
The Dreyfus Fund Incorporated++;
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus Investors GNMA Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus Municipal Income, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
JEFFREY N. NACHMAN Dreyfus New Jersey Municipal Bond Fund,
(cont'd) Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
Dreyfus New York Insured Tax Exempt Bond
Fund++;
Dreyfus New York Municipal Income, Inc.++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
Dreyfus Strategic Governments Income,
Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Strategic Municipal Bond Fund,
Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus Variable Investment Fund++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie Tax Exempt Bond Fund,
Inc.++;
General California Municipal Bond Fund,
Inc.++;
General California Municipal Money Market
Fund++;
JEFFREY N. NACHMAN General Government Securities Money Market
(cont'd) Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Peoples Index Fund, Inc.++;
Premier California Municipal Bond Fund++;
Premier GNMA Fund++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
Premier State Municipal Bond Fund++;
Vice President and Treasurer:
Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Balanced Fund, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC Municipal Fund++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus Connecticut Intermediate Municipal
Bond Fund++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Florida Intermediate Municipal
Bond Fund++;
Dreyfus Florida Municipal Money Market
Fund++;
Dreyfus Focus Funds, Inc.++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus Global Investing++;
Dreyfus Growth Allocation Fund,
Inc.++;
Dreyfus Growth and Income Fund, Inc.++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus International Equity Fund, Inc.++;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
Dreyfus Short-Term Income Fund, Inc.++;
The Dreyfus Socially Responsible Growth
Fund, Inc.++;
Dreyfus-Wilshire Target Funds, Inc.++;
First Prairie Cash Management++;
First Prairie U.S. Government Income
Fund++;
JEFFREY N. NACHMAN First Prairie U.S. Treasury Securities
(Cont'd) Cash Management++;
Peoples S&P MidCap Index Fund, Inc.++;
Premier Growth Fund, Inc.++;
Premier Insured Municipal Bond Fund++;
Assistant Treasurer:
Pacific American Fund+++++
PETER A. SANTORIELLO Director, President and Investment
Vice President Officer:
Dreyfus Balanced Fund, Inc.++;
Director and President:
Dreyfus Management, Inc.*;
Vice President:
Dreyfus Personal Management, Inc.*
ROBERT H. SCHMIDT President and Director:
Vice President Dreyfus Service Corporation*;
Seven Six Seven Agency, Inc.*;
Formerly, Chairman and Chief Executive
Officer:
Levine, Huntley, Schmidt & Beaver
250 Park Avenue
New York, New York 10017
KIRK V. STUMPP Senior Vice President and
Vice President - Director of Marketing:
New Product Development Dreyfus Service Corporation*
PHILIP L. TOIA Chairman of the Board and Vice President:
Vice President and Dreyfus Thrift & Commerce****;
Director of Fixed- Director:
Income Research The Dreyfus Security Savings Bank F.S.B.+;
Senior Loan Officer and Director:
The Dreyfus Trust Company++;
Vice President:
The Dreyfus Consumer Credit Corporation*;
President and Director:
Dreyfus Personal Management, Inc.*;
Director:
Dreyfus Realty Advisors, Inc.+++;
Formerly, Senior Vice President:
The Chase Manhattan Bank, N.A. and
The Chase Manhattan Capital Markets
Corporation
One Chase Manhattan Plaza
New York, New York 10081
KATHERINE C. WICKHAM Vice President:
Assistant Vice President - Dreyfus Consumer Life Insurance
Human Resources Company++;
Formerly, Assistant Commissioner:
Department of Parks and Recreation of the
City of New York
830 Fifth Avenue
New York, New York 10022
JOHN J. PYBURN Treasurer and Assistant Secretary:
Assistant Vice President The Dreyfus Fund International
Limited++++++;
Treasurer:
Dreyfus A Bonds Plus, Inc.++;
Dreyfus Appreciation Fund, Inc.++;
Dreyfus California Municipal Income,
Inc.++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
The Dreyfus Fund Incorporated++;
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus Investors GNMA Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus Municipal Income, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
Dreyfus New York Insured Tax Exempt Bond
Fund++;
Dreyfus New York Municipal Income, Inc.++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
JOHN J. PYBURN Dreyfus New York Tax Exempt Intermediate
(cont'd) Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
Dreyfus Strategic Governments Income,
Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Strategic Municipal Bond Fund,
Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus Variable Investment Fund++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
General California Municipal Bond Fund,
Inc.++;
General California Municipal Money Market
Fund++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Peoples Index Fund, Inc.++;
JOHN J. PYBURN Premier California Municipal Bond Fund++;
(cont'd) Premier GNMA Fund++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
Premier State Municipal Bond Fund++
MAURICE BENDRIHEM Treasurer:
Controller Dreyfus Consumer Life Insurance Company*;
Dreyfus Partnership Management, Inc.*;
Dreyfus Service Organization, Inc.*;
Seven Six Seven Agency, Inc.*;
The Truepenny Corporation*;
Controller:
Dreyfus Acquisition Corporation*;
The Dreyfus Trust Company++;
The Dreyfus Trust Company (N.J.)++;
The Dreyfus Consumer Credit Corporation*;
Assistant Treasurer:
Dreyfus Precious Metals*
Formerly, Vice President-Financial Planning,
Administration and Tax:
Showtime/The Movie Channel, Inc.
1633 Broadway
New York, New York 10019
MARK N. JACOBS Vice President:
Secretary and Deputy Dreyfus A Bonds Plus, Inc.++;
General Counsel Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Balanced Fund, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Connecticut Intermediate Municipal
Bond Fund++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Florida Municipal Money Market
Fund++;
Dreyfus Focus Funds, Inc.++;
The Dreyfus Fund Incorporated++;
Dreyfus Global Bond Fund, Inc.++;
Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus Global Investing++;
Dreyfus Growth Allocation Fund,
Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus International Equity Fund, Inc.++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus Money Market Instruments, Inc.++;
MARK N. JACOBS Dreyfus Municipal Bond Fund, Inc.++;
(cont'd) Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus 100% U.S. Treasury Intermediate
Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
Dreyfus Short-Term Income Fund, Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Strategic Municipal Bond Fund,
Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Variable Investment Fund++;
Dreyfus-Wilshire Target Funds, Inc.++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
General California Municipal Bond Fund,
Inc.++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Director:
World Balanced Fund++++;
Secretary:
Dreyfus Appreciation Fund, Inc.++;
Dreyfus BASIC Municipal Fund++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Capital Value Fund (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
The Dreyfus Consumer Credit Corporation*;
Dreyfus Consumer Life Insurance Company*;
Dreyfus Florida Intermediate Municipal
Bond Fund++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth and Income Fund, Inc.++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Short Term
Treasury Fund++;
MARK N. JACOBS Dreyfus Insured Municipal Bond Fund,
(cont'd) Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus Investors GNMA Fund++;
Dreyfus Management, Inc.*;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
Dreyfus New York Insured Tax Exempt Bond
Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
The Dreyfus Socially Responsible Growth
Fund, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
First Prairie Cash Management++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Municipal Money Market
Fund++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
First Prairie U.S. Government Income
Fund++;
First Prairie U.S. Treasury Securities
Cash Management++;
General California Municipal Money Market
Fund++;
MARK N. JACOBS General Government Securities Money Market
(cont'd) Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
General Municipal Money Market Fund,
Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Pacific American Fund+++++;
Premier Insured Municipal Bond Fund++;
Premier California Municipal Bond Fund++;
Premier GNMA Fund++;
Premier Growth Fund, Inc.++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
Premier State Municipal Bond Fund++;
Assistant Secretary:
Dreyfus Service Organization, Inc.*;
Major Trading Corporation*;
The Truepenny Corporation*
CHRISTINE PAVALOS Assistant Secretary:
Assistant Secretary Dreyfus A Bonds Plus, Inc.++;
Dreyfus Acquisition Corporation*;
Dreyfus Appreciation Fund, Inc.++;
Dreyfus Asset Allocation Fund, Inc.++;
Dreyfus Balanced Fund, Inc.++;
Dreyfus BASIC Money Market Fund, Inc.++;
Dreyfus BASIC Municipal Fund++;
Dreyfus BASIC U.S. Government Money Market
Fund++;
Dreyfus California Intermediate Municipal
Bond Fund++;
Dreyfus California Municipal Income,
Inc.++;
Dreyfus California Tax Exempt Bond Fund,
Inc.++;
Dreyfus California Tax Exempt Money Market
Fund++;
Dreyfus Capital Growth Fund (A Premier
Fund)++;
Dreyfus Capital Value Fund, (A Premier
Fund)++;
Dreyfus Cash Management++;
Dreyfus Cash Management Plus, Inc.++;
Dreyfus Connecticut Intermediate
Municipal Bond Fund++;
Dreyfus Connecticut Municipal Money Market
Fund, Inc.++;
Dreyfus Edison Electric Index Fund,
Inc.++;
Dreyfus Florida Intermediate Municipal
Bond Fund++;
Dreyfus Florida Municipal Money Market
Fund++;
Dreyfus Focus Funds, Inc.++;
The Dreyfus Fund Incorporated++;
CHRISTINE PAVALOS Dreyfus Global Bond Fund, Inc.++;
(cont'd) Dreyfus Global Growth, L.P. (A Strategic
Fund)++;
Dreyfus Global Investing++;
Dreyfus GNMA Fund, Inc.++;
Dreyfus Government Cash Management++;
Dreyfus Growth Allocation Fund,
Inc.++;
Dreyfus Growth and Income, Inc.++;
Dreyfus Growth Opportunity Fund, Inc.++;
Dreyfus Institutional Money Market Fund++;
Dreyfus Institutional Short Term
Treasury Fund++;
Dreyfus Insured Municipal Bond Fund,
Inc.++;
Dreyfus Intermediate Municipal Bond Fund,
Inc.++;
Dreyfus International Equity Fund, Inc.++;
Dreyfus Investors GNMA Fund++;
Dreyfus Life and Annuity Index Fund,
Inc.++;
Dreyfus Liquid Assets, Inc.++;
Dreyfus Management, Inc.*;
Dreyfus Massachusetts Intermediate
Municipal Bond Fund++;
Dreyfus Massachusetts Municipal Money
Market Fund++;
Dreyfus Massachusetts Tax Exempt Bond
Fund++;
Dreyfus Michigan Municipal Money Market
Fund, Inc.++;
Dreyfus Money Market Instruments, Inc.++;
Dreyfus Municipal Bond Fund, Inc.++;
Dreyfus Municipal Cash Management Plus++;
Dreyfus Municipal Income, Inc.++;
Dreyfus Municipal Money Market Fund,
Inc.++;
Dreyfus New Jersey Intermediate Municipal
Bond Fund++;
Dreyfus New Jersey Municipal Bond Fund,
Inc.++;
Dreyfus New Jersey Municipal Money Market
Fund, Inc.++;
Dreyfus New Leaders Fund, Inc.++;
Dreyfus New York Insured Tax Exempt Bond
Fund++;
Dreyfus New York Municipal Cash
Management++;
Dreyfus New York Municipal Income, Inc.++;
Dreyfus New York Tax Exempt Bond Fund,
Inc.++;
Dreyfus New York Tax Exempt Intermediate
Bond Fund++;
Dreyfus New York Tax Exempt Money Market
Fund++;
Dreyfus Ohio Municipal Money Market Fund,
Inc.++;
CHRISTINE PAVALOS Dreyfus 100% U.S. Treasury Intermediate
(cont'd) Term Fund++;
Dreyfus 100% U.S. Treasury Long Term
Fund++;
Dreyfus 100% U.S. Treasury Money Market
Fund++;
Dreyfus 100% U.S. Treasury Short Term
Fund++;
Dreyfus Pennsylvania Intermediate
Municipal Bond Fund++;
Dreyfus Pennsylvania Municipal Money
Market Fund++;
Dreyfus Service Corporation*;
Dreyfus Short-Intermediate Government
Fund++;
Dreyfus Short-Intermediate Municipal Bond
Fund++;
Dreyfus Short-Term Income Fund, Inc.++;
The Dreyfus Socially Responsible Growth
Fund, Inc.++;
Dreyfus Strategic Governments Income,
Inc.++;
Dreyfus Strategic Growth, L.P.++;
Dreyfus Strategic Income++;
Dreyfus Strategic Investing++;
Dreyfus Strategic Municipal Bond Fund,
Inc.++;
Dreyfus Strategic Municipals, Inc.++;
Dreyfus Tax Exempt Cash Management++;
The Dreyfus Third Century Fund, Inc.++;
Dreyfus Treasury Cash Management++;
Dreyfus Treasury Prime Cash Management++;
Dreyfus Variable Investment Fund++;
Dreyfus-Wilshire Target Funds, Inc.++;
Dreyfus Worldwide Dollar Money Market
Fund, Inc.++;
First Prairie Cash Management++;
First Prairie Diversified Asset Fund++;
First Prairie Money Market Fund++;
First Prairie Tax Exempt Bond Fund,
Inc. ++;
First Prairie Municipal Money Market
Fund++;
First Prairie U.S. Government Income
Fund++;
First Prairie U.S. Treasury Securities
Cash Management++;
General California Municipal Bond Fund,
Inc.++;
General California Municipal Money Market
Fund++;
General Government Securities Money Market
Fund, Inc.++;
General Money Market Fund, Inc.++;
General Municipal Bond Fund, Inc.++;
CHRISTINE PAVALOS General Municipal Money Market Fund,
(cont'd) Inc.++;
General New York Municipal Bond Fund,
Inc.++;
General New York Municipal Money Market
Fund++;
Peoples Index Fund, Inc.++;
Peoples S&P MidCap Index Fund, Inc.++;
Premier Insured Municipal Bond Fund++;
Premier California Municipal Bond Fund++;
Premier GNMA Fund++;
Premier Growth Fund, Inc.++;
Premier Municipal Bond Fund++;
Premier New York Municipal Bond Fund++;
Premier State Municipal Bond Fund++;
The Truepenny Corporation*
______________________________________
* The address of the business so indicated is 200 Park Avenue, New
York, New York 10166.
** The address of the business so indicated is 80 Cutter Mill Road,
Great Neck, New York 11021.
*** The address of the business so indicated is 45 Broadway, New York,
New York 10006.
**** The address of the business so indicated is Five Triad Center, Salt
Lake City, Utah 84180.
+ The address of the business so indicated is Atrium Building, 80 Route
4 East, Paramus, New Jersey 07652.
++ The address of the business so indicated is 144 Glenn Curtiss
Boulevard, Uniondale, New York 11556-0144.
+++ The address of the business so indicated is One Rockefeller Plaza,
New York, New York 10020.
++++ The address of the business so indicated is 2 Boulevard Royal,
Luxembourg.
+++++ The address of the business so indicated is 800 West Sixth Street,
Suite 1000, Los Angeles, California 90017.
++++++ The address of the business so indicated is Nassau, Bahama Islands.
Item 29. Principal Underwriters
________ ______________________
(a) Other investment companies for which Registrant's principal
underwriter (exclusive distributor) acts as principal underwriter or
exclusive distributor:
1) Comstock Partners Strategy Fund, Inc.
2) Dreyfus A Bonds Plus, Inc.
3) Dreyfus Appreciation Fund, Inc.
4) Dreyfus Asset Allocation Fund, Inc.
5) Dreyfus Balanced Fund, Inc.
6) Dreyfus BASIC Money Market Fund, Inc.
7) Dreyfus BASIC Municipal Fund
8) Dreyfus BASIC U.S. Government Money Market Fund
9) Dreyfus California Intermediate Municipal Bond Fund
10) Dreyfus California Tax Exempt Bond Fund, Inc.
11) Dreyfus California Tax Exempt Money Market Fund
12) Dreyfus Capital Value Fund, Inc.
13) Dreyfus Cash Management
14) Dreyfus Cash Management Plus, Inc.
15) Dreyfus Connecticut Intermediate Municipal Bond Fund
16) Dreyfus Connecticut Municipal Money Market Fund, Inc.
17) The Dreyfus Convertible Securities Fund, Inc.
18) Dreyfus Edison Electric Index Fund, Inc.
19) Dreyfus Florida Intermediate Municipal Bond Fund
20) Dreyfus Florida Municipal Money Market Fund
21) Dreyfus Focus Funds, Inc.
22) The Dreyfus Fund Incorporated
23) Dreyfus Global Bond Fund, Inc.
24) Dreyfus Global Growth, L.P. (A Strategic Fund)
25) Dreyfus Global Investing, Inc.
26) Dreyfus GNMA Fund, Inc.
27) Dreyfus Government Cash Management
28) Dreyfus Growth and Income Fund, Inc.
29) Dreyfus Growth Opportunity Fund, Inc.
30) Dreyfus Institutional Money Market Fund
31) Dreyfus Institutional Short Term Treasury Fund
32) Dreyfus Insured Municipal Bond Fund, Inc.
33) Dreyfus Intermediate Municipal Bond Fund, Inc.
34) Dreyfus International Equity Fund, Inc.
35) Dreyfus Investors GNMA Fund
36) The Dreyfus Leverage Fund, Inc.
37) Dreyfus Life and Annuity Index Fund, Inc.
38) Dreyfus Liquid Assets, Inc.
39) Dreyfus Massachusetts Intermediate Municipal Bond Fund
40) Dreyfus Massachusetts Municipal Money Market Fund
41) Dreyfus Massachusetts Tax Exempt Bond Fund
42) Dreyfus Michigan Municipal Money Market Fund, Inc.
43) Dreyfus Money Market Instruments, Inc.
44) Dreyfus Municipal Bond Fund, Inc.
45) Dreyfus Municipal Cash Management Plus
46) Dreyfus Municipal Money Market Fund, Inc.
47) Dreyfus New Jersey Intermediate Municipal Bond Fund
48) Dreyfus New Jersey Municipal Bond Fund, Inc.
49) Dreyfus New Jersey Municipal Money Market Fund, Inc.
50) Dreyfus New Leaders Fund, Inc.
51) Dreyfus New York Insured Tax Exempt Bond Fund
52) Dreyfus New York Municipal Cash Management
53) Dreyfus New York Tax Exempt Bond Fund, Inc.
54) Dreyfus New York Tax Exempt Intermediate Bond Fund
55) Dreyfus New York Tax Exempt Money Market Fund
56) Dreyfus Ohio Municipal Money Market Fund, Inc.
57) Dreyfus 100% U.S. Treasury Intermediate Term Fund
58) Dreyfus 100% U.S. Treasury Long Term Fund
59) Dreyfus 100% U.S. Treasury Money Market Fund
60) Dreyfus 100% U.S. Treasury Short Term Fund
61) Dreyfus Pennsylvania Intermediate Municipal Bond Fund
62) Dreyfus Pennsylvania Municipal Money Market Fund
63) Dreyfus Short-Intermediate Government Fund
64) Dreyfus Short-Intermediate Municipal Bond Fund
65) Dreyfus Short-Term Income Fund, Inc.
66) The Dreyfus Socially Responsible Growth Fund, Inc.
67) Dreyfus Strategic Growth, L.P.
68) Dreyfus Strategic Income
69) Dreyfus Strategic Investing
70) Dreyfus Tax Exempt Cash Management
71) The Dreyfus Third Century Fund, Inc.
72) Dreyfus Treasury Cash Management
73) Dreyfus Treasury Prime Cash Management
74) Dreyfus Variable Investment Fund
75) Dreyfus-Wilshire Target Funds, Inc.
76) Dreyfus Worldwide Dollar Money Market Fund, Inc.
77) First Prairie Cash Management
78) First Prairie Diversified Asset Fund
79) First Prairie Money Market Fund
80) First Prairie Municipal Money Market Fund
81) First Prairie Tax Exempt Bond Fund, Inc.
82) First Prairie U.S. Government Income Fund
83) First Prairie U.S. Treasury Securities Cash Management
84) General California Municipal Bond Fund, Inc.
85) General California Municipal Money Market Fund
86) General Government Securities Money Market Fund, Inc.
87) General Money Market Fund, Inc.
88) General Municipal Bond Fund, Inc.
89) General Municipal Money Market Fund, Inc.
90) General New York Municipal Bond Fund, Inc.
91) General New York Municipal Money Market Fund
92) Pacific American Fund
93) Peoples Index Fund, Inc.
94) Peoples S&P MidCap Index Fund, Inc.
95) Premier Insured Municipal Bond Fund
96) Premier California Municipal Bond Fund
97) Premier GNMA Fund
98) Premier Growth Fund, Inc.
99) Premier Municipal Bond Fund
100) Premier New York Municipal Bond Fund
101) Premier State Municipal Bond Fund
(b)
Positions and
Name and principal Positions and offices with offices with
business address Dreyfus Service Corporation Registrant
__________________ ___________________________ _____________
Howard Stein* Chairman of the Board President,
Director &
Investment
Officer
Robert H. Schmidt* President and Director None
Joseph S. DiMartino* Executive Vice President and Director None
Lawrence M. Greene* Executive Vice President and Director None
Julian M. Smerling* Executive Vice President and Director None
Elie M. Genadry* Executive Vice President None
Henry D. Gottmann* Executive Vice President None
Donald A. Nanfeldt* Executive Vice President None
Kevin Flood* Senior Vice President None
Roy Gross* Senior Vice President None
Irene Papadoulis** Senior Vice President None
Kirk Stumpp* Senior Vice President and None
Director of Marketing
Diane M. Coffey* Vice President None
Walter T. Harris* Vice President None
William Harvey* Vice President None
Adwick Pinnock** Vice President None
George Pirrone* Vice President/Trading None
Karen Rubin Waldmann* Vice President None
Peter D. Schwab* Vice President/New Products None
Michael Anderson* Assistant Vice President None
Carolyn Sobering* Assistant Vice President-Trading None
Daniel C. Maclean* Secretary Vice
President
Robert F. Dubuss* Treasurer None
Maurice Bendrihem* Controller None
Michael J. Dolitsky* Assistant Controller None
Susan Verbil Goldgraben* Assistant Treasurer None
Christine Pavalos* Assistant Secretary Assistant
Secretary
Broker-Dealer Division of Dreyfus Service Corporation
=====================================================
Positions and offices with Positions and
Name and principal Broker-Dealer Division of offices with
business address Dreyfus Service Corporation Registrant
__________________ ___________________________ _____________
Elie M. Genadry* President None
Craig E. Smith* Executive Vice President None
Peter Moeller* Vice President and Sales Manager None
Kristina Williams
Pomano Beach, FL Vice President-Administration None
James Barr
Newton, MA Regional Vice President None
Mary B. Brundage
Pasadena, CA Regional Vice President None
Edward Donley
Latham, NY Regional Vice President None
Thomas Ellis
Ranchero Murietta, CA Regional Vice President None
Glenn Farinacci* Regional Vice President None
Peter S. Ferrentino
San Francisco, CA Regional Vice President None
William Frey
Hoffman Estates, IL Regional Vice President None
Suzanne Haley
Tampa, FL Regional Vice President None
Philip Jochem
Warrington, PA Regional Vice President None
Richard P. Kundracik
Waterford, MI Regional Vice President None
Michael Lane
Beaver Falls, PA Regional Vice President None
Fred Lanier
Atlanta, GA Regional Vice President None
Beth Presson
Colchester, VT Regional Vice President None
Joseph Reaves
New Orleans, LA Regional Vice President None
Christian Renninger
Germantown, MD Regional Vice President None
Robert J. Richardson
Houston, TX Regional Vice President None
Kurt Wiessner
Minneapolis, MN Regional Vice President None
Institutional Services Division of Dreyfus Service Corporation
==============================================================
Positions and offices with Positions and
Name and principal Institutional Services Division offices with
business address of Dreyfus Service Corporation Registrant
__________________ _______________________________ _____________
Elie M. Genadry* President None
Donald A. Nanfeldt* Executive Vice President None
Kathleen M. Lewis++ Vice President-Institutional None
Sales Manager
Charles Cardona** Senior Vice President- None
Institutional Services
Stacy Alexander* Vice President-Bank Wholesale None
Eric Almquist* Vice President-Eastern Regional None
Sales Manager
James E. Baskin+++++++ Vice President-Institutional Sales None
Kenneth Bernstein
Boca Raton, FL Vice President-Bank Wholesale None
Stephen Burke* Vice President-Bank Wholesaler None
Sales Manager
Laurel A. Diedrick
Burrows*** Vice President-Bank Wholesale None
Gary F. Callahan
Somerville, NJ Vice President-Bank Wholesale None
Daniel L. Clawson++++ Vice President-Institutional Sales None
Anthony T. Corallo
San Francisco, CA Vice President-Institutional Sales None
Bonnie M. Cymbryla
Brewerton, NY Vice President-Bank Wholesale None
William Davis
Bellevue, WA Vice President None
William E. Findley**** Vice President None
Mary Genet***** Vice President None
Melinda Miller Gordon* Vice President None
Christina Haydt++ Vice President-Institutional Sales None
Carol Anne Kelty* Vice President-Institutional Sales None
Gwenn Kessler***** Vice President-Bank Wholesale None
Nancy Knee++++ Vice President-Bank Wholesale None
Bradford Lange* Vice President-Bank Wholesale None
Eva Machek***** Vice President-Institutional Sales None
Bradley R. Maybury
Seattle, WA Vice President-Bank Wholesale None
Mary McCabe*** Vice President-Bank Wholesale None
James McNamara***** Vice President-Institutional Sales None
James Neiland* Vice President-Bank Wholesale- None
National Accounts Manager
Susan M. O'Connor* Vice President-Institutional
Seminars None
Andrew Pearson+++ Vice President-Institutional Sales None
Jean Heitzman Penny***** Vice President-Institutional Sales None
Dwight Pierce+ Vice President-Bank Wholesale None
Lorianne Pinto* Vice President-Bank Wholesale None
Douglas Rentschler
Grosse Point Park, MI Vice President-Bank Wholesale None
Leah Ryan**** Vice President-Institutional Sales None
Edward Sands* Vice President-Institutional
Administration None
William Schalda* Vice President-Institutional None
Administration
Sue Ann Seefeld++++ Vice President-Institutional Sales None
Brant Snavely
Charlotte, NC Vice President-Bank Wholesale None
Thomas Stallings
Richmond, VA Vice President-Institutional Sales None
Elizabeth Biordi Vice President-Institutional
Wieland* Administration None
Thomas Winnick
Malverne, PA Vice President-Bank Wholesale None
Jeanne Butler* Assistant Vice President-
Institutional Operations None
Roberta Hall***** Assistant Vice President-
Institutional Servicing None
Tracy Hopkins** Assistant Vice President-
Institutional Operations None
Lois Paterson* Assistant Vice President-
Institutional Operations None
Mary Rogers** Assistant Vice President-
Institutional Servicing None
Karen Markovic
Shpall++++++ Assistant Vice President None
Patrick Synan** Assistant Vice President-
Institutional Support None
Emilie Tongalson** Assistant Vice President-
Institutional Servicing None
Tonda Watson**** Assistant Vice President-
Institutional Sales None
Group Retirement Plans Division of Dreyfus Service Corporation
==============================================================
Positions and offices with Positions and
Name and principal Group Retirement Plans Division offices with
business address of Dreyfus Service Corporation Registrant
__________________ _______________________________ _____________
Elie M. Genadry* President None
Robert W. Stone* Executive Vice President None
Leonard Larrabee* Vice President and Senior Counsel None
George Anastasakos* Vice President None
Bart Ballinger++ Vice President-Sales None
Paula Cleary* Vice President-Marketing None
Ellen S. Dinas* Vice President-Marketing/Communications None
William Gallagher* Vice President-Sales None
Jeffrey Lejune
Dallas, TX Vice President-Sales None
Samuel Mancino** Vice President-Installation None
Joanna Morris* Vice President-Sales None
Joseph Pickert++ Vice President-Sales None
Alison Saunders** Vice President-Enrollment None
Scott Zeleznik* Vice President-Sales None
Alana Zion* Vice President-Sales None
Jeffrey Blake* Assistant Vice President-Sales None
_____________________________________________________
* The address of the offices so indicated is 200 Park Avenue, New
York, New York 10166
** The address of the offices so indicated is 144 Glenn Curtiss
Boulevard, Uniondale, New York 11556-0144.
*** The address of the offices so indicated is 580 California Street,
San Francisco, California 94104.
**** The address of the offices so indicated is 3384 Peachtree Road,
Suite 100, Atlanta, Georgia 30326-1106.
***** The address of the offices so indicated is 190 South LaSalle
Street, Suite 2850, Chicago, Illinois 60603.
+ The address of the offices so indicated is P.O. Box 1657, Duxbury,
Massachusetts 02331.
++ The address of the offices so indicated is 800 West Sixth Street,
Suite 1000, Los Angeles, California 90017.
+++ The address of the offices so indicated is 11 Berwick Lane,
Edgewood, Rhode Island 02905.
++++ The address of the offices so indicated is 1700 Lincoln Street,
Suite 3940, Denver, Colorado 80203.
+++++ The address of the offices so indicated is 6767 Forest Hill
Avenue, Richmond, Virginia 23225.
++++++ The address of the offices so indicated is 2117 Diamond Street,
San Diego, California 92109.
+++++++ The address of the offices so indicated is P.O. Box 757,
Holliston, Massachusetts 01746.
Item 30. Location of Accounts and Records
________________________________
1. The Shareholder Services Group, Inc.,
a subsidiary of First Data Corporation
P.O. Box 9671
Providence, Rhode Island 02940-9671
2. The Bank of New York
110 Washington Street
New York, New York 10286
3. The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
Item 31. Management Services
_______ ___________________
Not Applicable
Item 32. Undertakings
________ ____________
(1) To call a meeting of shareholders for the purpose of voting upon
the question of removal of a director or directors when
requested in writing to do so by the holders of at least 10% of
the Registrant's outstanding shares of common stock and in
connection with such meeting to comply with the provisions of
Section 16(c) of the Investment Company Act of 1940 relating to
shareholder communications.
(2) To furnish each person to whom a prospectus is delivered with a
copy of its latest annual report to shareholders, upon request
and without charge, beginning with the annual report to
shareholders for the fiscal year ending October 31, 1994.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Amendment to the Registration
Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has
duly caused this Amendment to the Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of New
York, and State of New York on the 22nd day of June, 1994.
DREYFUS FOCUS FUNDS, INC.
BY: /s/Howard Stein*
__________________________________________
Howard Stein, PRESIDENT
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, this Amendment to the Registration Statement
has been signed below by the following persons in the capacities and on the
dates indicated.
Signatures Title Date
__________________________ _______________________________ ________
/s/Howard Stein* President (Principal Executive 6/22/94
______________________________ Officer) and Director
Howard Stein
/s/Jeffrey N. Nachman* Vice President and Treasurer 6/22/94
______________________________ (Principal Financial and Accounting
Jeffrey N. Nachman Officer)
/s/John M. Fraser, Jr.* Director 6/22/94
______________________________
John M. Fraser, Jr.
/s/Ehud Houminer* Director 6/22/94
______________________________
Ehud Houminer
/s/Gloria Messinger* Director 6/22/94
_____________________________
Gloria Messinger
*BY: __________________________
Steven F. Newman,
Attorney-in-Fact
INDEX OF EXHIBITS
Page
(11) Consent of Ernst & Young,
Independent Auditors. . . . . . . . . . . . . .
(16) Schedules of Calculations
of Performance Data . . . . . . . . . . . . . .
Other Exhibit
(a) Power of Attorney . . . . . . . . . . . . . . .
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption "Custodian,
Transfer and Dividend Disbursing Agent, Counsel, and Independent
Auditors" and to the use of our report dated December 20, 1993, in
this Registration Statement (Form N-1A 33-51061) of Dreyfus Focus
Funds, Inc.
ERNST & YOUNG
New York, New York
June 17, 1994
DREYFUS FOCUS FUNDS, INC.
DREYFUS LARGE COMPANY GROWTH
AVERAGE ANNUAL TOTAL RETURN COMPUTATION
Average annual total return computation from inception through 4/30/94
based upon the following formula:
n
P( 1 + T ) = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value as of 4/30/94 of a $1,000
hypothetical investment made on 12/29/93 (inception)
0.337
1000( 1 + T ) = 960.80
T = -11.19%
==========
DREYFUS FOCUS FUNDS, INC.
DREYFUS LARGE COMPANY GROWTH
TOTAL RETURN COMPUTATION
Total return computation from inception through 4/30/94
based upon the following formula:
[ C + ( C x B ) ] - A
---------------------
T = A
where: A = NAV at beginning of period
B = Additional shares purchased through dividend reinvestment
C = NAV at end of period
T = Total return
T = [ 12.01 + ( 12.01 x 0.0000 ) ] - 12.50
--------------------------------------------
12.50
T = -3.92%
========
DREYFUS FOCUS FUNDS, INC.
DREYFUS LARGE COMPANY VALUE
AVERAGE ANNUAL TOTAL RETURN COMPUTATION
Average annual total return computation from inception through 4/30/94
based upon the following formula:
n
P( 1 + T ) = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value as of 4/30/94 of a $1,000
hypothetical investment made on 12/29/93 (inception)
0.337
1000( 1 + T ) = 996.80
T = -0.95%
==========
DREYFUS FOCUS FUNDS, INC.
DREYFUS LARGE COMPANY VALUE
TOTAL RETURN COMPUTATION
Total return computation from inception through 4/30/94
based upon the following formula:
[ C + ( C x B ) ] - A
---------------------
T = A
where: A = NAV at beginning of period
B = Additional shares purchased through dividend reinvestment
C = NAV at end of period
T = Total return
T = [ 12.46 + ( 12.46 x 0.0000 ) ] - 12.50
--------------------------------------------
12.50
T = -0.32%
========
DREYFUS FOCUS FUNDS, INC.
DREYFUS SMALL COMPANY GROWTH
AVERAGE ANNUAL TOTAL RETURN COMPUTATION
Average annual total return computation from inception through 4/30/94
based upon the following formula:
n
P( 1 + T ) = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value as of 4/30/94 of a $1,000
hypothetical investment made on 12/29/93 (inception)
0.337
1000( 1 + T ) = 948.00
T = -14.65%
==========
DREYFUS FOCUS FUNDS, INC.
DREYFUS SMALL COMPANY GROWTH
TOTAL RETURN COMPUTATION
Total return computation from inception through 4/30/94
based upon the following formula:
[ C + ( C x B ) ] - A
---------------------
T = A
where: A = NAV at beginning of period
B = Additional shares purchased through dividend reinvestment
C = NAV at end of period
T = Total return
T = [ 11.85 + ( 11.85 x 0.0000 ) ] - 12.50
--------------------------------------------
12.50
T = -5.20%
========
DREYFUS FOCUS FUNDS, INC.
DREYFUS SMALL COMPANY VALUE
AVERAGE ANNUAL TOTAL RETURN COMPUTATION
Average annual total return computation from inception through 4/30/94
based upon the following formula:
n
P( 1 + T ) = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value as of 4/30/94 of a $1,000
hypothetical investment made on 12/29/93 (inception)
0.337
1000( 1 + T ) = 997.60
T = -0.71%
==========
DREYFUS FOCUS FUNDS, INC.
DREYFUS SMALL COMPANY VALUE
TOTAL RETURN COMPUTATION
Total return computation from inception through 4/30/94
based upon the following formula:
[ C + ( C x B ) ] - A
---------------------
T = A
where: A = NAV at beginning of period
B = Additional shares purchased through dividend reinvestment
C = NAV at end of period
T = Total return
T = [ 12.47 + ( 12.47 x 0.0000 ) ] - 12.50
--------------------------------------------
12.50
T = -0.24%
========
Other Exhibit
POWER OF ATTORNEY
The undersigned hereby constitutes and appoints Mark N. Jacobs,
Daniel C. Maclean, Steven F. Newman and Michael A. Rosenberg, and each of
them, with full power to act without the other, his true and lawful
attorney-in-fact and agent, with full power of substitution and
resubstitution, for him and in his name, place and stead, in any and all
capacities (until revoked in writing) to sign any and all amendments to
the Registration Statement (including post-effective amendments and
amendments thereto), and to file the same, with all exhibits thereto, and
other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of
them, full power and authority to do and perform each and every act and
thing ratifying and confirming all that said attorneys-in-fact and agents
or any of them, or their or his substitute or substitutes, may lawfully do
or cause to be done by virtue hereof.
_________________________________
John M. Fraser, Jr. Director June 16, 1994
