DREYFUS LARGE COMPANY GROWTH FUND
(FORMERLY DREYFUS LARGE COMPANY GROWTH PORTFOLIO)--SEE NOTE 1
LETTER TO SHAREHOLDERS
Dear Shareholder:
Management of Dreyfus Large Company Growth Fund of Dreyfus Growth & Value
Funds, Inc. (formerly Dreyfus Focus Funds, Inc.) changed last September.
Starting at that time, we made a number of changes in the Fund. This letter
explains our current approach and gives the results for the fiscal year that
ended October 31, 1995. To place the Fund's operations in a broader setting,
we also outline the economic and securities market conditions that prevailed
during the reporting period.
ECONOMIC ENVIRONMENT
The much-desired soft landing for the U.S. economy that the Federal
Reserve Board has been striving to attain appears to have occurred. This is
the result of more than a year of moves by the Fed to tighten interest rates,
followed by a token loosening of the reins last summer.
Now that the economy is no longer as overactive, the central bank must
concern itself with the possibility that the economy might slow down more
than would be desirable.
In the meantime, the rate of inflation appears to be under firm control.
Consumer prices have advanced only at a very moderate pace, and average wages
have barely inched ahead. Unemployment has not gotten out of hand, and hovers
near the so-called full employment level.
Retail spending has settled down, we believe in part because consumers
are carrying large debit balances in mortgage and credit card debts. To what
extent this will affect holiday shopping remains to be seen.
MARKET ENVIRONMENT
As your Fund reached the end of its fiscal year, October 31, 1995, stocks
were not far below the record levels they had reached earlier in the fall.
Among the factors accounting for this market strength were good corporate
profits and low interest rates. Third quarter profit reports from leading
corporations, while not universally favorable, were better than earlier
quarters. The extensive lean and mean corporate reorganizations of the past
few years appear to be paying off. Even though the pricing environment for
most corporate products is extremely competitive, manufacturers and service
providers appear able to squeeze out improved profits.
How long that continuing improvement will last is an open question. Many
economists think that profit levels may flatten out over the coming months.
The recent record on that score, however, has been encouraging.
Interest rates also have buoyed stock prices and sustained the bond
market. As the cost of borrowing has steadily decreased, many corporations
have benefited. This advantage has been particularly notable with public
utilities.
Another factor in market strength has been the relentless advance of
technology, which has virtually forced corporations _ and now individual
households as well _ to reequip in order to keep up with technical progress.
The obvious result has been seen in record prices commanded during the year
by high technology stocks. While some disillusionment may set in, the market
appears to have taken a very optimistic view of the long-range outlook for
these companies.
In addition, many equities have been favorably affected by the very large
inflow of investment money, on a regular basis, from 401(k) and other
retirement plans. To be sure, money managers could at some point turn off the
spigot, and divert this cash flow into bonds or money market instruments.
During the past year, however, equity purchases by pension funds and other
retirement investors have provided a supportive background for stock prices.
However, there are some concerns. Perhaps the most significant has been
the wrangling between Congress and the White House over how to reduce
Government spending and cut the burden of the Government's perennial deficit.
Hopefully, this impasse will be settled soon, perhaps by the time this letter
reaches its readers. In the meantime, the uncertainties in Washington have
been a source of worry to investors.
The fading value of the U.S. dollar has also been a question mark. Yet,
after hitting a low last spring, the dollar has gradually recovered some lost
ground. This dollar rebound reflects weakness in the economies of Western
Europe and Japan, but also the strengthening of economic activity here at
home.
PORTFOLIO OVERVIEW
For the fiscal year that ended October 31, 1995, the Fund's total return
was 15.29%.* For the same period, the total return for the Standard & Poor's
500 Composite Stock Price Index was 26.41%.**
Early in the fiscal year, the Fund was more conservatively positioned
than its benchmark index. This was a period in which such groups as
technology, health care and consumer nondurables were particularly strong.
However, the Fund was underrepresented in these areas, consequently
performance was penalized. Also, holdings at that time in foreign stocks and
in domestic cable-related enterprises detracted from performance.
Since the change in portfolio management two months ago, we have shifted
sector emphasis. The holdings in cable companies have been reduced, while
increasing the exposure to high technology companies. Within various sectors,
changes have been made in specific company investments.
As we see it, global economic growth is slowing due to the long-lagged
effect of the dramatic interest rate rise in the U.S. in 1994. U.S. economic
growth is weak, as the consumer sector is hampered by slow employment and
income growth while the industrial sector continues to make necessary
inventory adjustments. We anticipate below-average growth in 1996, with 1997
poised for a more sustained economic and earnings growth phase, if the
liquidity background improves further.
As for the investment outlook, we believe that the financial markets have
a continued positive background as increased monetary liquidity and lower
interest rates should occur in the current slow growth, low inflation
environment. However, the risk of selected 1996 earnings disappointments has
increased.
The themes we are pursuing are as follows:
Companies which we believe may have continued solid earnings growth in
1996. Among the sectors involved are computer networking, computers and
software, semiconductors, insurance and consumer growth.
New products and services, including companies in biotechnology and
pharmaceuticals, oil and gas and hospital products.
Earnings recovery plays and restructuring: This would include certain
computer hardware manufacturers and specialty chemicals.
We plan to avoid most industrial and commodity cyclical areas where stock
prices and earnings expectations are vulnerable to disappointments resulting
from overly optimistic 1996 earnings forecasts. Currently, our heaviest
industry overweightings are in health care and technology.
We thank you for your confidence in the Large Company Growth Fund. In the
months ahead we will be working diligently to translate our new investment
approach into rewarding returns for our investors.
Sincerely,
(Michael L. Schonberg Signature Logo)
Michael L. Schonberg
Portfolio Manager
November 20, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. _ Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. Unlike
the Fund, which can engage in a variety of investment techniques, the
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of stock market performance, which is composed only of equity
securities.
<TABLE>
<CAPTION>
Dreyfus Large Company Growth Fund October 31, 1995
(formerly Dreyfus Large Company Growth Portfolio)_See Note 1
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS LARGE COMPANY
GROWTH FUND, A SERIES OF THE DREYFUS GROWTH AND VALUE FUNDS, INC. AND THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
(Exhibit A)
*Source: Lipper Analytical Services, Inc.
Average Annual Total Returns
One Year Ended From Inception (12/29/93)
October 31, 1995 to October 31, 1995
------------------- ----------------------------
<S> <C> <C>
15.29% 10.59%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Large Company
Growth Fund on 12/29/93 (Inception Date) to a $10,000 investment made in the
Standard & Poor's 500 Composite Stock Price Index on that date. For
comparative purposes, the value of the Index on 12/31/93 is used as the
beginning value on 12/29/93. All dividends and capital gain distributions are
reinvested.
The Fund's performance shown in the line graph takes into account all
applicable fees and expenses. The Standard & Poor's 500 Composite Stock Price
Index is a widely accepted, unmanaged index of overall stock market
performance, which does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Condensed Financial
Information section of the Prospectus and elsewhere in this report.
$13,096
Standard & Poor's 500
Composite Stock
Price Index*
$12,036
Dreyfus Large Company
Growth Fund
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY GROWTH FUND
(FORMERLY DREYFUS LARGE COMPANY GROWTH PORTFOLIO)--SEE NOTE 1
STATEMENT OF INVESTMENTS OCTOBER 31, 1995
COMMON STOCKS--97.6% SHARES VALUE
---------------- -----------------
<S> <C> <C> <C>
CONSUMER DURABLES--1.6% Fuji Photo Film, A.D.R...................... 2,000 $ 98,500
------------------
CONSUMER NON-DURABLES--5.0% Coca-Cola................................... 2,200 158,125
Gillette.................................... 2,000 96,750
International Flavors & Fragrances.......... 1,200 57,900
------------------
312,775
------------------
CONSUMER SERVICES--4.1% Spelling Entertainment Group.............(a) 17,000 221,000
Tele-Communications Liberty Media, Cl. A.(a) 1,250 30,781
------------------
251,781
------------------
ELECTRONIC TECHNOLOGY--23.7% Applied Materials........................(a) 2,400 120,300
Cisco Systems............................(a) 3,000 232,500
Compaq Computer........... ..............(a) 2,400 133,800
Ericsson (LM) Telephone, Cl. B, A.D.R........ 9,600 205,050
Hewlett-Packard............................. 2,200 203,775
LSI Logic................................(a) 4,000 188,500
Micron Technology........................... 4,000 282,500
Storage Technology.......................(a) 4,000 98,500
------------------
1,464,925
------------------
ENERGY--5.9% Anadarko Petroleum.......................... 3,100 134,463
Triton Energy............................... 5,000 233,125
------------------
367,588
------------------
FINANCE--6.7%. American International Group Leaders 2,100 177,188
MGIC Investment............................. 3,100 176,312
Progressive Corp, Ohio...................... 1,500 62,250
------------------
415,750
------------------
HEALTH SERVICES--1.2% United Healthcare........................... 1,400 74,375
------------------
HEALTH TECHNOLOGY--24.4% Abbott Laboratories......................... 3,000 119,250
Amgen....................................(a) 2,400 115,200
Boston Scientific........................(a) 2,800 117,950
Forest Laboratories......................(a) 7,000 289,625
Genzyme-General Division.................(a) 4,200 244,650
Guidant..................................... 6,600 211,200
Roche Holdings, A.D.R....................... 1,900 137,987
Teva Pharmaceutical Industries, A.D.R....... 7,000 274,750
------------------
1,510,612
------------------
INDUSTRIAL SERVICES--1.5% Schlumberger................................ 1,500 93,375
------------------
PROCESS INDUSTRIES--4.5% Grace (W.R.)................................ 5,000 278,750
------------------
PRODUCER MANUFACTURING--4.8% General Electric............................ 1,800 113,850
Raychem..................................... 4,000 185,500
------------------
299,350
------------------
DREYFUS LARGE COMPANY GROWTH FUND
(FORMERLY DREYFUS LARGE COMPANY GROWTH PORTFOLIO)--SEE NOTE 1
STATEMENT OF INVESTMENTS (continued) OCTOBER 31, 1995
COMMON STOCKS (continued) SHARES VALUE
---------------- ------------------
TECHNOLOGY SERVICES--3.6% Microsoft................................(a) 2,200 $ 220,000
------------------
TRANSPORTATION--5.4% Delta Air Lines............................. 1,500 98,438
Kansas City Southern Industries............. 5,000 233,125
------------------
331,563
------------------
UTILITIES--5.2% MFS Communications.......................(a) 2,000 80,750
Telecomunicacoes Brasileiras S.A., A.D.R.... 2,300 93,150
Vodafone Group, A.D.R....................... 3,600 147,150
------------------
321,050
------------------
TOTAL COMMON STOCKS
(cost $5,042,082)........................... $6,040,394
==================
PRINCIPAL
SHORT-TERM INVESTMENTS--1.6% AMOUNT
----------------
U.S. TREASURY BILLS: 5.15%, 12/14/95............................. $ 80,000 $ 79,502
5.23%, 12/21/95............................. 16,000 15,884
------------------
TOTAL SHORT-TERM INVESTMENTS
(cost $95,392).............................. $ 95,386
==================
TOTAL INVESTMENTS (cost $5,137,474)................................................ 99.2% $6,135,780
================ ==================
CASH AND RECEIVABLES (NET)......................................................... .8% $ 51,632
================ ==================
NET ASSETS......................................................................... 100.0% $6,187,412
================ ==================
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY GROWTH FUND
(FORMERLY DREYFUS LARGE COMPANY GROWTH PORTFOLIO)--SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $5,137,474)--see statement............................................ $6,135,780
Cash.......................................................................... 272
Receivable for investment securities sold..................................... 54,591
Dividends and interest receivable............................................. 3,098
Prepaid expenses.............................................................. 22,681
Due from The Dreyfus Corporation.............................................. 4,864
------------------
6,221,286
LIABILITIES:
Due to Distributor............................................................ $ 1,306
Accrued expenses.............................................................. 32,568 33,874
-------------- ------------------
NET ASSETS ...................................................................... $6,187,412
==================
REPRESENTED BY:
Paid-in capital............................................................... $5,235,525
Accumulated undistributed investment income_net............................... 13,834
Accumulated net realized (loss) on investments................................ (60,253)
Accumulated net unrealized appreciation on investments_Note 4................. 998,306
------------------
NET ASSETS at value applicable to 418,296 shares outstanding
(100 million shares of $.001 par value Common Stock authorized)............... $6,187,412
==================
NET ASSET VALUE per share ($6,187,412 / 418,296 shares)........................... $14.79
==================
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY GROWTH FUND
(FORMERLY DREYFUS LARGE COMPANY GROWTH PORTFOLIO)--SEE NOTE 1
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $3,167 foreign taxes withheld at source)............. $ 58,885
Interest.................................................................... 18,305
--------------
TOTAL INCOME.......................................................... $ 77,190
EXPENSES:
Management fee--Note 3(a)................................................... $ 41,416
Shareholder servicing costs_Note 3(b,c)..................................... 42,456
Legal fees.................................................................. 18,727
Auditing fees............................................................... 13,516
Registration fees........................................................... 8,564
Organization expenses....................................................... 5,796
Directors' fees and expenses_Note 3(d)................................... 4,126
Prospectus and shareholders' reports_Note 3(b)........................... 2,203
Custodian fees........................................................... 2,103
Miscellaneous............................................................ 1,354
----------------
140,261
Less_expense reimbursement from Manager
due to undertakings_Note 3(a)........................................ 93,057
----------------
TOTAL EXPENSES..................................................... 47,204
------------------
INVESTMENT INCOME--NET............................................. 29,986
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 4................................. $ 57,631
Net unrealized appreciation on investments............................... 729,269
----------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.................... 786,900
------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $816,886
==================
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY GROWTH FUND
(FORMERLY DREYFUS LARGE COMPANY GROWTH PORTFOLIO)--SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
------------------------------------
1994* 1995
---------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net...................................................... $ 68,916 $ 29,986
Net realized gain (loss) on investments.................................... (117,884) 57,631
Net unrealized appreciation on investments for the year.................... 269,037 729,269
---------------- ------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... 220,069 816,886
---------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income--net..................................................... ---- (85,068)
---------------- ------------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.............................................. 5,053,200 93,703
Dividends reinvested....................................................... ---- 85,068
Cost of shares redeemed.................................................... (17,313) (4,133)
---------------- ------------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................... 5,035,887 174,638
---------------- ------------------
TOTAL INCREASE IN NET ASSETS......................................... 5,255,956 906,456
NET ASSETS:
Beginning of year.......................................................... 25,000 5,280,956
---------------- ------------------
End of year (including undistributed investment income--net
of $68,916 in 1994 and $13,834 in 1995).................................. $5,280,956 $6,187,412
================ ==================
SHARES SHARES
---------------- ------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold................................................................ 404,190 6,814
Shares issued for dividends reinvested..................................... ---- 6,990
Shares redeemed............................................................ (1,367) (331)
---------------- ------------------
NET INCREASE IN SHARES OUTSTANDING....................................... 402,823 13,473
================ ==================
* From December 29, 1993 (commencement of operations) to October 31, 1994.
</TABLE>
See notes to financial statements.
DREYFUS LARGE COMPANY GROWTH FUND
(FORMERLY DREYFUS LARGE COMPANY GROWTH PORTFOLIO)--SEE NOTE 1
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 year indicated. This information
has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
------------------------------------
PER SHARE DATA: 1994(1) 1995
---------------- -----------------
<S> <C> <C>
Net asset value, beginning of year......................................... $12.50 $13.05
---------------- ------------------
INVESTMENT OPERATIONS:
Investment income--net..................................................... .17 .07
Net realized and unrealized gain on investments............................ .38 1.88
---------------- ------------------
TOTAL FROM INVESTMENT OPERATIONS......................................... .55 1.95
---------------- ------------------
DISTRIBUTIONS;
Dividends from investment income--net...................................... _ (.21)
---------------- ------------------
Net asset value, end of year............................................... $13.05 $14.79
================ ==================
TOTAL INVESTMENT RETURN........................................................ 4.40%(2) 15.29%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................... - .85%
Ratio of net investment income to average net assets....................... 1.37%(2) .54%
Decrease reflected in above expense ratios due to
undertakings by the Manager.............................................. 1.97%(2) 1.69%
Portfolio Turnover Rate.................................................... 12.08%(2) 86.59%
Net Assets, end of year (000's omitted).................................... $5,281 $6,187
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS LARGE COMPANY GROWTH FUND
(FORMERLY DREYFUS LARGE COMPANY GROWTH PORTFOLIO)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Growth and Value Funds, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company and operates as a series company currently offering eight
classes of shares of Common Stock, including the Dreyfus Large Company Growth
Fund (the "Series"). Premier Mutual Fund Services, Inc. (the "Distributor")
acts as the distributor of the Fund's shares, which are sold to the public
without a sales charge. The Distributor, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.
On September 14, 1995, the Fund's Directors approved a change of the
Fund's name, effective October 1, 1995, from "Dreyfus Focus Funds, Inc." to
"Dreyfus Growth and Value Funds, Inc." and the Series was renamed Dreyfus
Large Company Growth Fund.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
As of October 31, 1995, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, the parent company of which is Mellon Bank,
held 408,937 shares of Dreyfus Large Company Growth Fund.
(A) PORTFOLIO VALUATION: The 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. Bid price is used when no
asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, it is the policy of
the Series not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Series to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
Dreyfus Large Company Growth Fund
(formerly Dreyfus Large Company Growth Portfolio)_See Note 1
NOTES TO FINANCIAL STATEMENTS (continued)
The Series has an unused capital loss carryover of approximately $60,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1995. If not
applied, the carryover expires in fiscal 2002.
NOTE 2--BANK LINE OF CREDIT:
In accordance with an agreement with a bank, the Series may borrow up to
$2 million under a short-term unsecured line of credit. Interest on
borrowings is charged at rates which are related to Federal Funds rates in
effect from time to time.
During the year ended October 31, 1995, there were no borrowings under
the line of credit.
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 the Series' net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the
Series, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the 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 (exclusive of certain expenses as
described above) exceed 2 1/2% of the first $30 million, 2% of the next $70
million and 1 1/2% of the excess over $100 million of the average value of
the Series' net assets in accordance with California "blue sky" regulations.
However, the Manager had undertaken from November 1, 1994 through December
31, 1994, to assume all expenses of the Series (exclusive of certain expenses
as described above) and thereafter had undertaken through July 10, 1995 to
waive receipt of the management, service and distribution fees. The Manager
has currently undertaken from July 11, 1995 through October 31, 1996 to
reduce the management fee paid by or reimburse such excess expenses of the
Series, to the extent that the Series' aggregate annual expenses (exclusive
of certain expenses as described above) exceed an annual rate of 1.25 of 1%
of the average daily value of the Series' net assets. The expense
reimbursement, pursuant to the undertakings, amounted to $93,057 for the year
ended October 31, 1995.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the agreement.
(B) Prior to October 1, 1995, the Fund had a Distribution Plan (the
"Plan") adopted pursuant to Rule 12b-1 under the Act, which provided that the
Fund (a) reimburse the Distributor for payments to certain Service Agents for
distributing the Series' shares and (b) pay the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and any affiliate of
either of them for advertising and marketing relating to the Series, at an
aggregate annual rate of .50 of 1% of the value of the Series' average daily
net assets. The Distributor paid one or more Service Agents in respect of
distribution services. The Distributor determined the amounts, if any, to be
paid to Service Agents under the Plan and the basis on which such payments
are made. The fees payable under the Plan are payable without regard to
actual expenses incurred. The Plan also separately provided for the Fund to
bear the costs of preparing, printing Dreyfus Large Company Growth Fund
(formerly Dreyfus Large Company Growth Portfolio)_See Note 1
NOTES TO FINANCIAL STATEMENTS (continued)
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 the Series'
average daily net assets for any full fiscal year. For the period from
November 1, 1994 to September 30, 1995, the Series was charged $26,416 pur-
suant to the Plan. Effective October 1, 1995, the Fund's Plan was terminated.
(C) Under the Shareholder Services Plan, the Series pays the Distributor
at an annual rate of .25 of 1% of the value of the Series' average daily net
assets for the provision of certain services. 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 amounts to be paid to Service
Agents. During the year ended October 31, 1995, the Series was charged an
aggregate of $13,805 pursuant to the Shareholder Services Plan.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $5,000 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation. Prior to September 14, 1995, the annual fee was $3,000 and the
attendance fee was $250.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
other than short-term securities, during the year ended October 31, 1995,
amounted to $4,634,959 and $4,503,725, respectively.
At October 31, 1995, accumulated net unrealized appreciation on
investments was $998,306, consisting of $1,136,114 gross unrealized
appreciation and $137,808 gross unrealized depreciation.
At October 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS LARGE COMPANY GROWTH FUND
(FORMERLY DREYFUS LARGE COMPANY GROWTH PORTFOLIO)--SEE NOTE 1
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS LARGE COMPANY GROWTH FUND
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Large Company Growth Fund
(formerly Dreyfus Large Company Growth Portfolio), one of the Series
constituting Dreyfus Growth and Value Funds, Inc., as of October 31, 1995,
and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended, and financial highlights for each of the years indicated therein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1995 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Large Company Growth Fund at October 31, 1995, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
(Ernst & Young, LLP signature logo)
New York, New York
December 7, 1995
[Dreyfus lion "d" logo]
DREYFUS LARGE COMPANY GROWTH FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
First Data Investor Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 250AR9510
[Dreyfus logo]
LARGE COMPANY
GROWTH FUND
ANNUAL REPORT
OCTOBER 31, 1995
DREYFUS LARGE COMPANY VALUE FUND
(FORMERLY DREYFUS LARGE COMPANY VALUE PORTFOLIO)--SEE NOTE 1
LETTER TO SHAREHOLDERS
Dear Shareholder:
As your new portfolio manager, in this letter I describe the changes that
have been made in the way your Fund is now managed, along with a report on
the results for the latest fiscal year. To place these changes in their
proper setting, the general economic and market events of recent months are
also discussed.
ECONOMIC ENVIRONMENT
The much-desired soft landing for the U.S. economy that the Federal
Reserve Board has been striving to attain appears to have occurred. This is
the result of more than a year of moves by the Fed to tighten interest rates,
followed by a token loosening of the reins last summer.
Now that the economy is no longer overactive, the central bank must
concern itself with the possibility that the economy might slow down more
than would be desirable. However, the latest economic statistics do not
contain convincing evidence of that happening. The housing industry is doing
well. Industrial orders continue to expand and gross domestic product keeps
on growing, albeit at a reduced rate.
In the meantime, the rate of inflation appears to be under firm control.
Consumer prices have advanced only at a very moderate pace, and average wages
have barely inched ahead.
Retail spending has settled down, in part because consumers are carrying
large debit balances in mortgage and credit card debts. To what extent this
will affect holiday shopping remains to be seen. The industrial sector of the
economy, however, appears to be forging ahead.
MARKET ENVIRONMENT
As your Fund reached the end of its fiscal year, October 31, 1995, stocks
were not far below the record levels they had reached earlier in the fall.
Among the factors accounting for this market strength were good corporate
profits and low interest rates. Third quarter profit reports from leading
corporations, while not universally favorable, were better than earlier
quarters. The extensive lean and mean corporate reorganizations of the past
few years appear to be paying off. Even though the pricing environment for
most corporate products is extremely competitive, manufacturers and service
providers appear able to squeeze out improved profits.
How long that continuing improvement will last is an open question. Many
economists think that profit levels may flatten out over the coming months.
The recent record on that score, however, has been encouraging.
Interest rates also have buoyed stock prices and sustained the bond
market. As the cost of borrowing has steadily decreased, many corporations
have benefited. This advantage has been particularly notable with public
utilities.
Another factor in market strength has been the relentless advance of
technology, which has virtually forced corporations -- and now individual
households as well -- to reequip in order to keep up with technical progress.
The obvious result has been seen in the record prices commanded during the
year by high technology stocks. While some disillusionment may set in, the
market clearly takes a very optimistic view of the long-range outlook for
these companies.
In addition, many equities have been favorably affected by the very large
inflow of investment money, on a regular basis, from 401(k) and other
retirement plans. To be sure, money managers could at some point turn off the
spigot, and divert this cash flow into bonds or money market instruments.
During the past year, however, equity purchases by pension funds and other
retirement investors have provided a supportive background for stock prices.
Of course, there are some concerns. Perhaps the biggest has been the
struggle between Congress and the White House over how to reduce Government
spending and cut the burden of the Government's perennial deficit. Hopefully,
this impasse will be settled soon, perhaps by the time this letter reaches
its readers. In the meantime, the uncertainties in Washington have been a
source of worry to investors.
The fading value of the U.S. dollar has also been a question mark. Yet,
after hitting a low last spring, the dollar has gradually recovered some lost
ground. This dollar rebound reflects weakness in the economies of Western
Europe and Japan, but also the strengthening of economic activity here at
home.
PORTFOLIO OVERVIEW
Dreyfus Large Company Value seeks unusual values in common stocks within
a large capitalization universe ($900 million and greater in company value).
Value stock investors look for undervalued opportunities: they want to
buy growing companies but they don't want to pay much for them. Among the
reasons that value stocks may appreciate in value are: typically higher
dividends; reliance on more known (as contrasted with projected) data for
evaluation; the fact that low valuations tend to rise over time; and the
concept of contrarian investing: buying stocks that other investors do not
like yet. The fact that value stocks are selling at comparatively low prices
relative to specific measures should, we believe, lessen the downside risk in
these securities if bad news is encountered. Of course, these investments are
subject to the risk that their prices never recover or drift lower.
Our approach to the selection of value stocks starts with our analysts
who are an integral part of our investment team. We work exclusively with
securities that our analysts know and follow closely.
Using the analysts' work as a starting point, we then screen stocks by
computer according to two principal methods. First, we screen for high
projected earnings yield (the inverse of the price-to-earnings ratio). Then
we apply our own proprietary screen which dynamically analyzes 21 fundamental
factors that have historically affected stock prices. These factors include
the growth outlook over various time horizons, several relative value
measures, company size, earnings revisions and surprises, cash flow,
financial and foreign leverage, price momentum and a qualitative evaluation
of the potential for positive change to occur at each company.
Combining this data with our analysts' knowledge of individual companies,
we then construct a core portfolio of 40 to 50 names that is adequately
diversified without overly diluting the potential impact of good investment
ideas.
Selling is also a major part of our discipline. Here again we use
specific criteria for determining when selling out a position is required.
We believe in owning good, value-oriented companies in the Fund. We do
not believe, however, that guessing which economic sectors will be favored by
the market over the near term adds value. The economy itself has already
identified the relative size of each economic sector, and we believe in
managing the Fund to these established levels. Economic sector weights in the
Fund, therefore, are not varied significantly from the weight of these
sectors in the overall market. This strategy is designed to reduce the
overall risk of the Fund, defined as the volatility of its returns.
RECENT DEVELOPMENTS
The Fund's latest fiscal year, which ended October 31, 1995, includes
only a short period that fully reflects the new management approach.
For the full 12 months, the Fund's total return was 25.73%*. This return
compares with a return of 26.41% for the Standard & Poor's 500 Composite
Stock Price Index.** The slight short-fall relative to the overall market can
be traced to the conservative nature of the Fund and to the fact that value
stocks underperformed growth stocks during the measurement period. The Fund's
total return compared quite favorably with the S&P/Barra Value Index's total
return of 22.99%.***
As the fiscal year ended, our primary investment themes included:
Depressed high-growth securities: Sensormatic Electronics, Creative
Technologies and McCormick & Co..
Asset restructuring potential: Ford Motor, Amerada Hess, Dean Witter
Discover & Co., Sandoz AG, Schering /Plough, Monsanto and James River.
Neglected or misunderstood companies: Eastman Kodak, First Brands,
Philips Electronics N.V., AT&T and Ameritech.
Companies with new, unappreciated growth opportunities: Grand Casinos,
Wendy's International, Texaco, Guidant, Praxair and Citicorp.
It is a pleasure to have to been named to manage your assets in this
portfolio. I will endeavor to serve you to the best of my abilities.
Sincerely,
(Timothy M. Ghriskey signature logo)
Timothy M. Ghriskey
Portfolio Manager
November 15, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES _ The Standard & Poor's 500 Composite
Stock Price Index is a widely accepted unmanaged index of U.S. stock market
performance.
***SOURCE: BLOOMBERG, L.P._The Standard & Poor's Barra Value Index is a
capitalization-weighted index of all the stocks in the Standard & Poor's 500
Composite Stock Price Index that have low price-to-book ratios. It is
designed so that approximately 50% of the SPX market capitalization is in the
Value Index.
Dreyfus Large Company Value Fund October 31, 1995
(formerly Dreyfus Large Company Value Portfolio)_See Note 1
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS LARGE COMPANY
VALUE FUND,
A SERIES OF THE DREYFUS GROWTH AND VALUE FUNDS, INC. AND THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
Exhibit A
*Source: Lipper Analytical Services, Inc.
Average Annual Total Returns
One Year Ended From Inception (12/29/93)
October 31, 1995 to October 31, 1995
--------------------- ---------------------------
25.73% 13.88%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Large Company
Value Fund on 12/29/93 (Inception Date) to a $10,000 investment made in the
Standard & Poor's 500 Composite Stock Price Index on that date. For
comparative purposes, the value of the Index on 12/31/93 is used as the
beginning value on 12/29/93. All dividends and capital gain distributions are
reinvested.
The Fund's performance shown in the line graph takes into account all
applicable fees and expenses. The Standard & Poor's 500 Composite Stock Price
Index is a widely accepted, unmanaged index of overall stock market
performance, which does not take into account charges, fees and other
expenses. Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Condensed Financial
Information section of the Prospectus and elsewhere in this report.
$13,096
Standard & Poor's 500
Composite Stock
Price Index*
$12,704
Dreyfus Large Company
Value Fund
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY VALUE FUND
(FORMERLY DREYFUS LARGE COMPANY VALUE PORTFOLIO)--SEE NOTE 1
STATEMENT OF INVESTMENTS OCTOBER 31, 1995
COMMON STOCKS--100.1% SHARES VALUE
------------ ------------
<S> <C> <C> <C>
COMMERCIAL SERVICES--1.5% Sensormatic Electronics..................... 4,800 $ 102,600
----------
CONSUMER CYCLICAL--1.9% Fila Holding S.P.A., A.D.R.................. 3,000 129,375
----------
CONSUMER DURABLES--3.4% Eastman Kodak .............................. 1,800 112,725
Ford Motor.............................. 4,000 115,000
----------
227,725
----------
CONSUMER NON-DURABLES--9.5% First Brands............................ 2,500 114,375
Jones Apparel Group...................(a) 3,400 116,450
McCormick & Co. (non-voting)............ 4,900 121,275
Philip Morris Cos. ..................... 2,200 185,900
RJR Nabisco Holdings.................... 3,040 93,480
----------
631,480
----------
CONSUMER SERVICES--3.2% Grand Casinos............................(a) 2,800 111,300
Wendy's International................... 5,100 101,363
----------
212,663
----------
CREDIT CYCLICAL--1.6% Masco 3,900 109,688
----------
ELECTRICAL EQUIPMENT--1.7% Westinghouse Electric 8,000 113,000
----------
ELECTRONIC TECHNOLOGY--12.5% Amdahl...............................(a) 11,600 107,300
Applied Materials (a) 2,200 110,275
Creative Technologies.................(a) 8,500 98,813
Digital Equipment.....................(a) 2,100 113,662
EMC..................................(a) 6,500 100,750
International Business Machines......... 2,000 194,500
Texas Instruments....................... 1,600 109,200
----------
834,500
----------
ENERGY MINERALS--7.5% Amerada Hess 2,300 103,788
Exxon.................................. 1,500 114,562
Mobil.................................. 1,100 110,825
Repsol, S.A., A.D.R. ................... 1,900 56,287
Texaco.................................. 1,700 115,812
----------
501,274
----------
FINANCE--11.9% ACE........................... 3,300 112,200
Beneficial.............................. 2,200 107,800
Citicorp................................ 1,700 110,288
Dean Witter, Discover & Co.............. 2,000 99,500
Finova Group............................ 2,500 113,125
PMI Group............................... 2,300 110,400
Prudential Reinsurance Holding.......... 7,000 142,625
----------
795,938
----------
HEALTH TECHNOLOGY--11.6% Bristol-Myers Squibb..................... 3,900 297,375
Guidant.............................. ... 5,291 169,312
Dreyfus Large Company Value Fund
(formerly Dreyfus Large Company Value Portfolio)_See Note 1
Statement of Investments (continued) October 31, 1995
Common Stocks (continued) Shares Value
------------ ------------
HEALTH TECHNOLOGY (CONTINUED) Rhone Poulenc Rorer......................... 2,400 $ 113,100
Sandoz AG, A.D.R............................ 146 120,477
Schering-Plough............................. 1,400 75,075
----------
775,339
----------
HEALTH SERVICES--2.2% Total Renal Care Holdings.................... 7,100 144,663
----------
INDUSTRIAL SERVICES--1.6% ENSCO International......................(a) 6,200 104,625
----------
NON-ENERGY MINERALS--1.7% Phelps Dodge................................ 1,800 114,075
----------
PROCESS INDUSTRIES--5.1% James River................................. 3,500 112,437
Monsanto.................................... 1,100 115,225
Praxair..................................... 4,300 116,100
----------
343,762
----------
PRODUCER MANUFACTURING--3.5% Olin........................................ 1,700 108,800
Philips Electronics, N.V.................... 3,300 127,462
----------
236,262
----------
RETAIL TRADE--4.6% Intimate Brands, Cl. A...................... 6,500 108,875
Price/Costco.......................... (a) 6,500 110,500
Tandy................................... 1,800 88,875
----------
308,250
----------
TRANSPORTATION--2.1% Illinois Central, Ser. A................ 700 26,775
Tidewater............................... 4,200 110,775
----------
137,550
----------
UTILITIES--13.0% AT&T....................... 1,000 64,000
Ameritech............................... 2,100 113,400
Century Telephone Enterprises........... 3,700 107,300
Entergy................................. 4,100 116,850
GTE..................................... 2,500 103,125
Public Service Company of Colorado...... 3,300 112,613
SBC Communications...................... 1,900 106,162
Texas Utilities......................... 3,100 113,925
TransCanada Pipelines................... 2,500 33,438
----------
870,813
----------
TOTAL INVESTMENTS (cost $6,373,158)............................................ 100.1% $6,693,582
======= ==========
LIABILITIES, LESS CASH AND RECEIVABLES......................................... (.1%) $ (6,479)
======= ==========
NET ASSETS..................................................................... 100.0% $6,687,103
======= ==========
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY VALUE FUND
(FORMERLY DREYFUS LARGE COMPANY VALUE PORTFOLIO)--SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $6,373,158)--see statement...................................... $6,693,582
Cash.................................................................... 267,631
Receivable for investment securities sold............................... 478,108
Dividends and interest receivable....................................... 5,261
Prepaid expenses........................................................ 22,018
Due from The Dreyfus Corporation........................................ 5,026
----------
7,471,626
LIABILITIES:
Payable for investment securities purchased............................. $746,280
Net unrealized depreciation on foward currency
exchange contracts_Note 4(a).......................................... 1,330
Accrued expenses........................................................ 36,913 784,523
--------- ----------
NET ASSETS ................................................................ $6,687,103
==========
REPRESENTED BY:
Paid-in capital......................................................... $5,428,829
Accumulated undistributed investment income_net......................... 70,159
Accumulated undistributed net realized gain on investments.............. 869,021
Accumulated net unrealized appreciation on investments and
foreign currency transactions_Note 4(b)............................... 319,094
----------
NET ASSETS at value applicable to 432,494 shares outstanding
(100 million shares of $.001 par value Common Stock authorized)......... $6,687,103
==========
NET ASSET VALUE per share ($6,687,103 / 432,494 shares)..................... $15.46
=======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY VALUE FUND
(FORMERLY DREYFUS LARGE COMPANY VALUE PORTFOLIO)--SEE NOTE 1
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $1,891 foreign taxes withheld at source)....... $130,029
Interest.............................................................. 12,241
--------
TOTAL INCOME.................................................... $ 142,270
EXPENSES:
Management fee--Note 3(a)............................................. 43,242
Shareholder servicing costs_Note 3(b,c)............................... 44,105
Legal fees............................................................ 19,747
Auditing fees......................................................... 15,282
Registration fees..................................................... 9,739
Organization expenses................................................. 5,425
Directors' fees and expenses_Note 3(d)................................ 4,384
Prospectus and shareholders' reports.................................. 3,310
Custodian fees........................................................ 2,753
Miscellaneous......................................................... 1,315
--------
149,302
Less_expense reimbursement from Manager
due to undertakings_Note 3(a)..................................... 101,479
--------
TOTAL EXPENSES.................................................. 47,823
---------
INVESTMENT INCOME--NET.......................................... 94,447
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments--Note 4(a)........................... $924,046
Net unrealized appreciation on investments and foreign currency transactions 318,810
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 1,242,856
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,337,303
==========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS LARGE COMPANY VALUE FUND
(FORMERLY DREYFUS LARGE COMPANY VALUE PORTFOLIO)--SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
----------------------------
1994* 1995
------------ ------------
<S> <C> <C>
OPERATIONS:
Investment income--net.................................................. $ 106,661 $ 94,447
Net realized gain (loss) on investments................................. (55,025) 924,046
Net unrealized appreciation on investments for the year................. 284 318,810
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 51,920 1,337,303
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... -- (130,949)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 5,101,555 224,848
Dividends reinvested.................................................... -- 130,949
Cost of shares redeemed................................................. (10,077) (43,446)
------------ ------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................ 5,091,478 312,351
------------ ------------
TOTAL INCREASE IN NET ASSETS...................................... 5,143,398 1,518,705
NET ASSETS:
Beginning of year....................................................... 25,000 5,168,398
------------ ------------
End of year (including undistributed investment income_net:
$106,661 in 1994 and $70,159 in 1995)................................. $5,168,398 $6,687,103
============ ============
SHARES SHARES
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 407,991 15,585
Shares issued for dividends reinvested.................................. -- 11,116
Shares redeemed......................................................... (774) (3,424)
------------ ------------
NET INCREASE IN SHARES OUTSTANDING.................................... 407,217 23,277
============ ============
*From December 29, 1993 (commencement of operations) to October 31, 1994.
</TABLE>
See notes to financial statements.
DREYFUS LARGE COMPANY VALUE FUND
(FORMERLY DREYFUS LARGE COMPANY VALUE PORTFOLIO)--SEE NOTE 1
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 year indicated. This information
has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
-------------------------
1994(1) 1995
------ ------
<S> <C> <C>
PER SHARE DATA:
Net asset value, beginning of year......................................... $12.50 $12.63
------ ------
INVESTMENT OPERATIONS:
Investment income--net..................................................... .26 .22
Net realized and unrealized gain (loss) on investments..................... (.13) 2.93
------ ------
TOTAL FROM INVESTMENT OPERATIONS......................................... .13 3.15
------ ------
DISTRIBUTIONS:
Dividends from investment income--net...................................... -- (.32)
------ ------
Net asset value, end of year............................................... $12.63 $15.46
====== ======
TOTAL INVESTMENT RETURN........................................................ 1.04%(2) 25.73%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................... -- .83%
Ratio of net investment income to average net assets....................... 2.08%(2) 1.64%
Decrease reflected in above expense ratios
due to undertakings by the Manager....................................... 2.01%(2) 1.76%
Portfolio Turnover Rate.................................................... 48.35%(2) 143.61%
Net Assets, end of year (000's omitted).................................... $5,168 $6,687
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS LARGE COMPANY VALUE FUND
(FORMERLY DREYFUS LARGE COMPANY VALUE PORTFOLIO)--SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Growth and Value Funds, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company and operates as a series company currently offering eight
series, including the Dreyfus Large Company Value Fund (the "Series").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor, located at One Exchange Place, Boston,
Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.
On September 14, 1995, the Fund's Directors approved a change of the
Fund's name, effective October 1, 1995, from "Dreyfus Focus Funds, Inc." to
"Dreyfus Growth and Value Funds, Inc." and the Series was renamed Dreyfus
Large Company Value Fund.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
As of October 31, 1995, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, the parent company of which is Mellon Bank,
held 412,920 shares of Dreyfus Large Company Value Fund.
(A) PORTFOLIO VALUATION: The Series' investments in securities (including
options and financial futures) are valued at the last sales price on the
securities exchange on which such securities are primarily traded or at the
last sales price on the national securities market. Securities not listed on
an exchange or the national securities market, or securities for which there
were no transactions, are valued at the average of the most recent bid and
asked prices, except for open short positions, where the asked price is used
for valuation purposes. Bid price is used when no asked price is available.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Series not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Series to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2--BANK LINE OF CREDIT:
In accordance with an agreement with a bank, the Series may borrow up to
$2 million under a short-term unsecured line of credit. Interest on
borrowings is charged at rates which are related to Federal Funds rates in
effect from time to time.
During the year ended October 31, 1995, there were no borrowings under
the line of credit.
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 the Series' net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the
Series, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the 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 (exclusive of certain expenses as
described above) exceed 2 1/2% of the first $30 million, 2% of the next $70
million and 1 1/2% of the excess over $100 million of the average value of the
Series' net assets in accordance with California "blue sky" regulations.
However, the Manager had undertaken from November 1, 1994 through December
31, 1994, to assume all expenses of the Series (exclusive of certain expenses
as described above) and thereafter had undertaken through July 10, 1995 to
waive receipt of the management, service and distribution fees. The Manager
has currently undertaken from July 11, 1995 through October 31, 1996 to
reduce the management fee paid by or reimburse such excess expenses of the
Series, to the extent that the Series' aggregate annual expenses (exclusive
of certain expenses as described above) exceed an annual rate of 1.25 of 1%
of the average daily value of the Series' net assets. The expense
reimbursement, pursuant to the undertakings, amounted to $101,479 for the
year ended October 31, 1995.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the agreement.
(B) Prior to September 30, 1995, the Fund had a Distribution Plan (the
"Plan") adopted pursuant to Rule 12b-1 under the Act, which provided that the
Fund (a) reimburse the Distributor for payments to certain Service Agents for
distributing the Series' shares and (b) pay the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and any affiliate of
either of them for advertising and marketing relating to the Series, at an
aggregate annual rate of .50 of 1% of the value of the Series' average daily
net assets. Under the Plan, the Distributor was permitted to pay one or more
Service Agents in respect of distribution services. The Distributor
determined the amounts, if any, to be paid to Service Agents under the Plan
and the basis on which such payments were made. The fees payable under the
Plan were payable without regard to actual expenses incurred. The Plan also
separately provided 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 the Series' average
daily net assets for any full fiscal year. For the period from November 1,
1994 to September 30, 1995, the Series was charged $27,726 pursuant to the
Plan. Effective September 30, 1995, the Fund's Plan was terminated.
(C) Under the Shareholder Services Plan, the Series pays the Distributor
at an annual rate of .25 of 1% of the value of the Series' average daily net
assets for the provision of certain services. 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 amounts to be paid to Service
Agents. During the year ended October 31, 1995, the Series was charged an
aggregate of $14,414 pursuant to the Shareholder Services Plan.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $5,000 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation. Prior to September 14, 1995, the annual fee was $3,000 and the
attendance fee was $250.
NOTE 4--SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
other than short-term securities, during the year ended October 31, 1995,
amounted to $8,474,209 and $7,967,832, respectively.
The following summarizes open forward currency contracts at October 31, 1995;
<TABLE>
<CAPTION>
U.S. DOLLAR UNREALIZED
FORWARD CURRENCY SALE CONTRACTS PROCEEDS VALUE (DEPRECIATION)
- ----------------------------------- ---------- ---------- -------------
<S> <C> <C> <C>
Swiss Francs, expiring 12/18/95......................... $90,000 $91,330 ($1,330)
=========
</TABLE>
The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings. When executing forward currency exchange contracts, the
Series is obligated to buy or sell a foreign currency at a specified rate on a
certain date in the future. With respect to sales of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The Series realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the Series would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The Series realizes a gain if the value of the
contract increases between those dates. The Series is also exposed to credit
risk associated with counter party nonperformance on these forward currency
exchange contracts which is typically limited to the unrealized gains on such
contracts that are recognized in the Statement of Assets and Liabilities.
(B) At October 31, 1995, accumulated net unrealized appreciation on
investments was $319,094, consisting of $457,296 gross unrealized
appreciation and $138,202 gross unrealized depreciation.
At October 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS LARGE COMPANY VALUE FUND
(FORMERLY DREYFUS LARGE COMPANY VALUE PORTFOLIO)--SEE NOTE 1
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS LARGE COMPANY VALUE FUND
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Large Company Value Fund
(formerly Dreyfus Large Company Value Portfolio), one of the Series
constituting Dreyfus Growth and Value Funds, Inc., as of October 31, 1995,
and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended, and financial highlights for each of the years indicated therein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Large Company Value Fund at October 31, 1995, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights
for each of the indicated years, in conformity with generally accepted
accounting principles.
(Ernst & Young LLP signature logo)
New York, New York
December 7, 1995
[Dreyfus lion "d" logo]
THE DREYFUS CORPORATION
200 PARK AVENUE
NEW YORK, NY 10166
Custodian
THE BANK OF NEW YORK
90 WASHINGTON STREET
NEW YORK, NY 10286
Transfer Agent &
Dividend Disbursing Agent
FIRST DATA INVESTOR SERVICES GROUP, INC.
P.O. BOX 9671
PROVIDENCE, RI 02940
FURTHER INFORMATION IS CONTAINED
IN THE PROSPECTUS, WHICH MUST
PRECEDE OR ACCOMPANY THIS REPORT.
PRINTED IN U.S.A. 251AR9510
[Dreyfus logo]
Large Company
Value Fund
Annual Report
OCTOBER 31, 1995
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to send you this annual report for Dreyfus Small Company
Value Fund, a series of Dreyfus Growth & Value Funds (formerly Dreyfus Focus
Funds, Inc.) This letter covers the fiscal year ended October 31, 1995. It
provides the Portfolio's results as well as describes the Fund's significant
investment strategies. To place the Fund's operations in a broader setting,
we also discuss the economic and market environments during the period under
review.
ECONOMIC ENVIRONMENT
The much-desired soft landing for the U.S. economy that the Federal
Reserve Board has been striving to attain appears to have occurred. This is
the result of more than a year of moves by the Fed to tighten interest rates,
followed by a token loosening of the reins last summer. Now that the economy
is no longer as overactive, the central bank must concern itself with the
possibility that the economy might slow down more than would be desirable.
In the meantime, the rate of inflation appears to be under firm control.
Consumer prices have advanced only at a very moderate pace, and average wages
have barely inched ahead. Unemployment has not gotten out of hand, and hovers
near the so-called full employment level.
Retail spending has settled down, we believe in part because consumers
are carrying large debit balances in mortgage and credit card debts. To what
extent this will affect holiday shopping remains to be seen. The industrial
sector of the economy, however, appears to be forging ahead.
MARKET ENVIRONMENT
As your Fund reached the end of its fiscal year, October 31, 1995, stocks
were not far below the record levels they had reached earlier in the fall.
Among the factors accounting for this market strength were good corporate
profits and low interest rates. Third quarter profit reports from leading
corporations, while not universally favorable, were better than earlier
quarters. The extensive lean and mean corporate reorganizations of the past
few years appear to be paying off. Even though the pricing environment for
most corporate products is extremely competitive, manufacturers and service
providers appear able to squeeze out improved profits.
How long that continuing improvement will last is an open question. Many
economists think that profit levels may flatten out over the coming months.
The recent record on that score, however, has been encouraging.
Interest rates also have buoyed stock prices and sustained the bond
market. As the cost of borrowing has steadily decreased, many corporations
have benefitted. This advantage has been particularly notable with public
utilities.
Another factor in market strength has been the relentless advance of
technology, which has virtually forced corporations - and now individual
households as well - to reequip in order to keep up with technical progress.
The obvious result has been seen in record prices commanded during the year
by high technology stocks. While some disillusionment may set in, the market
appears to have taken a very optimistic view of the long-range outlook for
these companies.
In addition, many equities have been favorably affected by the very large
inflow of investment money, on a regular basis, from 401(k) and other
retirement plans. To be sure, money managers could at some point turn off the
spigot, and divert this cash flow into bonds or money market instruments.
During the past year, however, equity purchases by pension funds and other
retirement investors have provided a supportive background for stock prices.
However, there are some concerns. One of the most significant has been
the wrangling between Congress and the White House over how to reduce
Government spending and cut the burden of the Government's perennial deficit.
Hopefully, this impasse will be settled soon, perhaps by the time this letter
reaches its readers. In the meantime, the uncertainties in Washington have
been a source of worry to investors.
The fading value of the U.S. dollar has also been a question mark. Yet,
after hitting a low last spring, the dollar has gradually recovered some lost
ground. This dollar rebound reflects weakness in the economies of Western
Europe and Japan, but also the strengthening of economic activity here at
home.
PORTFOLIO OVERVIEW
For the year ended October 31, 1995, the Fund's total return was 21.30%*
compared to 18.35% for its benchmark, the Russell 2000 Index.** The Portfolio
enjoyed the benefits of the restructuring and merger themes pervading the
equity markets today. The Fund's holdings in technology stocks, including
Megatest, Microtec Research and Conner Peripherals, benefitted from the
merger activity. Our investment strategy is to seek out companies evidencing
value characteristics, good and improving business fundamentals and positive
business momentum. The search for value is not narrowly defined with rigid
criteria but centers around those situations where the price/earnings and
price/book value ratios are low. The focus on momentum can come via financial
clues, restructurings, or positive insider buying trends.
We believe value in the stock market is not hard to find. However, with a
slowing economic environment, finding the combination of value and improving
or accelerating business trends is more difficult. There is a considerable
amount of uncertainty as to the sustainability of the positive economic
environment we have seen over the last two years. This is causing companies
to report signs of slowdown in demand and to report earnings reflecting this.
However, investors are willing to sell securities on any hint of bad news.
This is causing a high degree of volatility in the stock market with equities
being traded like commodities. We are employing a strategy to moderate the
Fund's economic sensitivity and repositioning cash in companies exhibiting
consistent patterns of earnings growth and earnings stability.
With the increased market volatility comes opportunity and we shall seek
to capitalize on this. The Fund is positioned to seek to capitalize on the
themes of bank and savings & loan consolidation. We have considerable
weightings in two geographic markets - New York and California. We also
believe the trend is positive in the oil service industry and that this group
will also enjoy continued consolidation.
In the domestic housing market orders, backlogs, and profit margins are
accelerating for most builders. Your Fund has exposure to this trend in
various geographic markets throughout the U.S. The Fund was positively
affected by its holdings in Continental Homes Holding, Beazer Homes USA and
U.S. Home, which appreciated in value.
The retail environment appears very weak; the consumer is extended and
the level of consumer debt in default is increasing. This being so, the Fund
has kept retail exposure to a small percentage of assets though the stock
valuations are compelling. However, the Fund's retail stock holdings,
including Hi-Lo Automotive, and Egghead, lagged the broad market advance.
Because the portfolio is focused on valuation, the electronic technology
weighting is under 20% of assets. The Fund was negatively affected by this
underweighting since technology was one of the best performing sectors of the
year.
In closing, we are optimistic about the future. We find no shortage of
value in individual companies. However, we are concerned that the stock
market, as a whole, is high on most measures of value. It looks more
reasonable on earnings than on any other historical measure. We feel the
economy is slow, however, and the risk to earnings is above average today.
Thus, we feel there is reason to be cautious.
Sincerely,
[David Diamond signature logo]
David Diamond
Portfolio Manager
November 21, 1995
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Russell 2000 Index is a widely accepted unmanaged index of small cap stock
performance.
DREYFUS SMALL COMPANY VALUE FUND OCTOBER 31, 1995
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS SMALL COMPANY
VALUE FUND,
A SERIES OF THE DREYFUS GROWTH AND VALUE FUNDS, INC. AND THE RUSSELL 2000
INDEX
Dollars
$12,062
Dreyfus Small Company
Value Fund
$11,791
Russell 2000 Index*
*Source: Lipper Analytical Services, Inc.
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (12/29/93)
OCTOBER 31, 1995 TO OCTOBER 31, 1995
------------------- -----------------------------
21.30% 10.72%
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Small Company
Value Fund on 12/29/93 (Inception Date) to a $10,000 investment made in the
Russell 2000 Index on that date. For comparative purposes, the value of the
Index on 12/31/93 is used as the beginning value on 12/29/93. All dividends
and capital gain distributions are reinvested.
The Fund's performance shown in the line graph takes into account all
applicable fees and expenses. The Russell 2000 Index is an unmanaged index
and is composed of the 2,000 smallest companies in the Russell 3000 Index.
The Russell 3000 Index is composed of 3,000 of the largest U.S. companies by
market capitalization. The Index does not take into account charges, fees and
other expenses. Further information relating to Fund performance, including
expense reimbursements, if applicable, is contained in the Condensed
Financial Information section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
STATEMENT OF INVESTMENTS OCTOBER 31, 1995
COMMON STOCKS-90.1% SHARES VALUE
------------ ------------
<S> <C> <C> <C>
COMMERCIAL SERVICES-3.7% Bowne & Co................................. 4,500 $ 83,813
Graphic Industries......................... 3,600 35,100
Hughes Supply.............................. 1,000 24,125
Nash Finch................................. 1,000 17,875
True North Communications.................. 3,700 74,925
------------
235,838
------------
CONSUMER DURABLES-6.6% Bally Gaming International..............(a) 4,900 51,450
Beazer Homes USA........................(a) 4,200 73,500
Continental Homes Holding.................. 3,100 63,550
De Rigo S.P.A., A.D.R. .................... 1,000 20,625
La-Z-Boy Chair............................. 2,000 59,500
Lifetime Hoan...........................(a) 1,400 13,300
SPX........................................ 3,200 49,600
Scotts, Cl. A...........................(a) 1,500 29,813
U.S. Home...............................(a) 2,200 59,125
------------
420,463
------------
CONSUMER NON-DURABLES-4.3% Alberto-Culver, Cl. A...................... 3,300 89,100
Block Drug, Cl. A (non-voting)............. 1,000 38,500
Jones Apparel Group......................(a) 900 30,825
Maybelline................................. 2,000 47,250
Paragon Trade Brands....................(a) 3,600 57,150
Tultex..................................(a) 3,000 14,250
-------------
277,075
-------------
CONSUMER SERVICES-7.0% Chris-Craft Industries..................(a) 2,797 111,530
Evergreen Media, Cl. A..................(a) 1,840 50,140
Hollinger International, Cl. A............. 6,000 69,000
Price Communications....................(a) 2,000 16,375
Ryan's Family Steak House...............(a) 5,100 39,525
SFX Broadcasting, Cl. A.................(a) 3,400 91,800
ShowBiz Pizza Time......................(a) 5,500 67,375
------------
445,745
------------
ELECTRONIC TECHNOLOGY-14.5% Ade........................................ 5,000 75,000
Banyan Systems..........................(a) 3,500 27,344
BE Aerospace............................(a) 9,200 72,450
Conner Peripherals......................(a) 3,600 64,800
Dynatech................................(a) 1,500 22,500
ESS Technology............................. 700 21,000
Etec Systems............................... 15,000 165,000
GTI....................................(a) 2,000 34,000
Measurex................................... 1,600 49,200
Megatest................................(a) 2,500 73,750
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
------------ ---------------
ELECTRONIC TECHNOLOGY (CONTINUED) Microtec Research.......................... 5,000 $ 69,687
Tegal...................................... 9,000 114,750
Truevision..............................(a) 8,500 65,875
Zoom Telephonics........................(a) 4,600 74,750
---------------
930,106
---------------
ENERGY MINERALS-2.2% Cross Timbers Oil.......................... 2,000 29,000
Diamond Shamrock........................... 800 20,600
Santa Fe Energy Resources...............(a) 6,000 53,250
Swift Energy............................(a) 4,000 35,500
---------------
138,350
---------------
FINANCE-15.5% Allmerica Property & Casualty Cos.......... 800 18,200
Astoria Financial.......................... 1,000 42,875
Bay Ridge Bancorp.......................(a) 1,800 38,475
Bay View Capital........................... 2,500 66,250
Brooklyn Bancorp........................(a) 1,200 47,250
Citizens................................... 1,000 18,125
City National.............................. 3,000 39,750
Community Bank System...................... 2,300 72,450
Downey Financial........................... 2,900 59,088
First Palm Beach Bancorp................... 2,600 59,150
Fleet Financial Group...................... 1,713 66,379
Fleet Financial Group (Warrants)........(a) 224 2,268
Fremont General........................... 1,000 29,000
Glendale Federal Bank FSB...............(a) 2,000 32,000
Greater New York Savings Bank...........(a) 2,000 24,000
Horace Mann Educators...................... 1,700 45,262
Interpool...............................(a) 2,000 32,000
Long Island Bancorp........................ 2,500 57,187
MLF Bancorp................................ 1,700 38,250
PXRE....................................... 800 20,400
Patriot American Hospitality............... 1,000 24,375
SFFed...................................... 1,500 45,750
Security-Connecticut.................... 1,500 39,000
Standard Financial......................(a) 2,400 33,000
Summit Properties.......................... 900 16,650
Transnational Re, Cl. A.................(a) 1,200 26,850
--------------
993,984
--------------
HEALTH SERVICES-1.6% Enterprise Systems......................... 500 11,688
Pediatrix Medical Group.................... 2,000 43,250
Sterling Heathcare Group................(a) 2,000 27,500
Total Renal Care Holdings.................. 1,000 20,375
--------------
102,813
---------------
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
--------------- ---------------
HEALTH TECHNOLOGY-1.5% Advanced Technology Laboratories........(a) 2,300 $ 41,400
Kinetic Concepts.......................... 5,000 55,625
---------------
97,025
---------------
INDUSTRIAL SERVICES-5.1% Hornbeck Offshore Services..............(a) 4,500 65,813
Lufkin Industries.......................... 2,500 46,250
Marine Drilling Cos. ...................(a) 2,500 9,375
Noble Drilling..........................(a) 5,800 40,600
Rowan Cos. .............................(a) 8,000 53,000
Stolt Comex Seaway, S.A. ...............(a) 5,000 44,063
Tuboscope Vetco International...........(a) 7,100 41,712
Weatherford Enterra.....................(a) 1,200 28,950
---------------
329,763
---------------
NON-ENERGY MINERALS-.8% Texas Industries........................... 1,000 52,625
---------------
PROCESS INDUSTRIES-3.6% Applied Extrusion Technologies..........(a) 2,000 30,750
Calgon Carbon.............................. 5,000 56,875
Dexter..................................... 2,000 47,750
Fuller (H.B.) ............................. 900 28,350
International Specialty Products........... 1,500 12,937
Slocan Forest Products..................... 2,108 20,209
Stepan..................................... 2,000 31,500
---------------
228,371
---------------
PRODUCER MANUFACTURING-7.8% General Scanning........................... 4,000 48,000
Handy & Harman............................. 2,100 29,663
INDRESCO................................(a) 3,600 61,650
Oakley..................................... 500 17,250
Talley Industries.......................(a) 6,500 56,875
Triarc Cos., Cl. A......................(a) 3,000 28,500
UNR Industries............................. 7,500 62,812
U.S. Industries............................ 5,100 76,500
Zero....................................... 2,700 41,175
Zurn Industries............................ 1,000 25,000
Zycon....................................... 4,000 50,000
---------------
497,425
---------------
RETAIL TRADE-6.8% CPI........................................ 2,500 45,625
Carr-Gottstein Foods....................(a) 3,000 24,000
Egghead.................................(a) 1,500 10,313
Fay's...................................... 5,000 40,000
Finish Line, Cl. A.................... .(a) 6,000 53,250
Hi-Lo Automotive........................(a) 3,600 21,150
Neiman-Marcus Group........................ 3,000 51,375
Pier 1 Imports............................. 6,380 61,408
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1995
COMMON STOCKS (CONTINUED) SHARES VALUE
-------------- --------------
RETAIL TRADE (CONTINUED) Venture Stores............................ 300 $ 1,125
Waban..................................(a) 4,100 64,062
Younkers................................(a) 3,000 65,625
---------------
437,933
---------------
TECHNOLOGY SERVICES-2.7% Cooper & Chyan Technology.................. 500 7,062
Health Payment Review...................... 3,000 78,000
Legato Systems.......................... 500 18,250
Logic Works................................ 500 7,625
Premenos Technology........................ 800 31,400
Smith Micro Software....................... 2,500 30,625
---------------
172,962
---------------
TRANSPORTATION-5.3% Harper Group............................... 3,500 63,000
Midwest Express Holdings................... 2,500 62,812
Sea Containers, Cl. A...................... 5,000 91,250
Stolt-Nielsen, S.A. ....................... 3,000 90,000
Teekay Shipping............................ 1,500 34,875
---------------
341,937
---------------
UTILITIES-1.1% Central Maine Power........................ 2,700 37,462
NGC........................................ 2,232 20,088
Tel-Save Holdings.......................... 1,000 13,875
---------------
71,425
---------------
TOTAL COMMON STOCKS
(cost $5,475,604).......................... $5,773,840
===============
PRINCIPAL
SHORT-TERM INVESTMENTS-9.6% AMOUNT
---------------
U.S. TREASURY BILLS: 5.37%, 11/2/95..........................(b) $ 236,000 $ 235,965
5.16%, 11/9/95............................. 33,000 32,962
5.13%, 12/7/95............................. 101,000 100,490
5.28%, 12/14/95.........................(b) 245,000 243,474
---------------
TOTAL SHORT-TERM INVESTMENTS
(cost $612,864)............................ $ 612,891
===============
TOTAL INVESTMENTS(cost $6,088,468)............................................. 99.7% $6,386,731
============= ==============
CASH AND RECEIVABLES (NET)..................................................... .3% $ 17,221
============= ==============
NET ASSETS..................................................................... 100.0% $6,403,952
============= ==============
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Partially held by broker as collateral for open short positions.
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
STATEMENT OF SECURITIES SOLD SHORT OCTOBER 31, 1995
COMMON STOCK-6.3% SHARES VALUE
--------------- --------------
<S> <C> <C>
Availl......................................................................... 5,000 $ 41,875
C-COR Electronics.............................................................. 2,200 50,600
Champion Industries............................................................ 1,100 23,100
Elcor.......................................................................... 1,500 31,500
Electronics For Imaging........................................................ 300 24,675
Fritz Cos. .................................................................... 2,070 72,450
Lance.......................................................................... 1,600 27,000
Presstek....................................................................... 1,000 47,500
Semtech........................................................................ 1,000 25,625
Symbol Technologies............................................................ 1,100 38,363
WMS Industries................................................................. 40 785
Williams-Sonoma................................................................ 1,000 17,375
---------------
TOTAL SECURITIES SOLD SHORT
(proceeds $348,375)........................................................ $400,848
===============
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $6,088,468)-see statement....................................... $6,386,731
Cash.................................................................... 184,850
Receivable for investment securities sold............................... 67,962
Dividends and interest receivable....................................... 991
Receivable from brokers for proceeds on securities sold short........... 348,375
Prepaid expenses........................................................ 22,735
Due from The Dreyfus Corporation........................................ 8,325
------------------
7,019,969
LIABILITIES:
Due to Distributor...................................................... $ 1,360
Payable for investment securities purchased............................. 175,875
Securities sold short, at value (proceeds $348,375)-see statement....... 400,848
Accrued expenses........................................................ 37,934 616,017
--------------- ------------------
NET ASSETS.................................................................. $6,403,952
==================
REPRESENTED BY:
Paid-in capital......................................................... $5,682,016
Accumulated undistributed investment income-net......................... 30,658
Accumulated undistributed net realized gain on investments,
securities sold short and foreign currency transactions............... 445,486
Accumulated net unrealized appreciation on investments, securities
sold short and foreign currency transactions-Note 4(b)................ 245,792
------------------
NET ASSETS at value applicable to 457,389 shares outstanding
(100 million shares of $.001 par value Common Stock authorized)......... $6,403,952
==================
NET ASSET VALUE per share ($6,403,952 / 457,389 shares)..................... $14.00
==================
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $182 foreign taxes withheld at source)........ $ 44,754
Interest............................................................. 51,585
---------------
TOTAL INCOME................................................... $ 96,339
EXPENSES:
Management fee-Note 3(a)............................................. 42,383
Shareholder servicing costs-Note 3(b,c).............................. 43,258
Legal fees........................................................... 19,163
Auditing fees........................................................ 15,831
Registration fees.................................................... 8,795
Organization expenses................................................ 5,359
Custodian fees....................................................... 5,505
Directors' fees and expenses-Note 3(d)............................... 4,203
Prospectus and shareholders' reports-Note 3(b)....................... 3,302
Interest-Note 2...................................................... 2,822
Dividends on securities sold short................................... 1,286
Miscellaneous........................................................ 1,312
--------------
153,219
Less-expense reimbursement from Manager
due to undertaking-Note 3(a)..................................... 101,524
--------------
TOTAL EXPENSES................................................. 51,695
----------------
INVESTMENT INCOME-NET.......................................... 44,644
----------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on investments-Note 4(a):
Long transactions (including foreign currency transactions)...... $474,892
Short sale transactions.......................................... (10,036)
--------------
NET REALIZED GAIN................................................ 464,856
Net unrealized appreciation on investments, securities sold
short and foreign currency transactions.......................... 601,439
-----------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................ 1,066,295
-----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... $1,110,939
=================
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
----------------------------------
1994* 1995
--------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 123,146 $ 44,644
Net realized gain on investments........................................ 200,873 464,856
Net unrealized appreciation (depreciation) on investments............... (355,647) 601,439
--------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (31,628) 1,110,939
--------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... --- (137,132)
Net realized gain on investments........................................ --- (220,243)
--------------- --------------
TOTAL DIVIDENDS....................................................... --- (357,375)
--------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 5,174,759 343,498
Dividends reinvested.................................................... --- 357,374
Cost of shares redeemed................................................. (2,340) (216,275)
--------------- --------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................ 5,172,419 484,597
--------------- --------------
TOTAL INCREASE IN NET ASSETS...................................... 5,140,791 1,238,161
NET ASSETS:
Beginning of year....................................................... 25,000 5,165,791
--------------- --------------
End of year (including undistributed investment income-net:
$123,146 in 1994 and $30,658 in 1995)................................. $5,165,791 $6,403,952
=============== ==============
SHARES SHARES
--------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 413,701 27,757
Shares issued for dividends reinvested.................................. --- 31,966
Shares redeemed......................................................... (191) (17,844)
--------------- --------------
NET INCREASE IN SHARES OUTSTANDING.................................... 413,510 41,879
=============== ==============
* From December 29, 1993 (commencement of operations) to October 31, 1994.
</TABLE>
See notes to financial statements.
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
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 year indicated. This information
has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
--------------------------------
PER SHARE DATA: 1994(1) 1995
-------------- ---------------
<S> <C> <C>
Net asset value, beginning of year............................................. $12.50 $12.43
-------------- ---------------
INVESTMENT OPERATIONS:
Investment income-net.......................................................... .30 .10
Net realized and unrealized gain (loss) on investments......................... (.37) 2.33
-------------- ---------------
TOTAL FROM INVESTMENT OPERATIONS............................................. (.07) 2.43
-------------- ---------------
DISTRIBUTIONS:
Dividends from investment income-net........................................... -- (.33)
Dividends from net realized gain on investments................................ -- (.53)
-------------- ---------------
TOTAL DISTRIBUTIONS.......................................................... -- (.86)
-------------- ---------------
Net asset value, end of year................................................... $12.43 $14.00
============== ================
TOTAL INVESTMENT RETURN............................................................ (.56%)(2) 21.30%
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets.............................. -- .84%
Ratio of interest expense and dividends on securities
sold short to average net assets............................................. .01%(2) .07%
Ratio of net investment income to average net assets........................... 2.39%(2) .79%
Decrease reflected in above expense ratios due to
undertakings by the Manager.................................................. 2.07%(2) 1.80%
Portfolio Turnover Rate........................................................ 219.63%(2) 161.01%
Net Assets, end of year (000's omitted)........................................ $5,166 $6,404
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Growth and Value Funds, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company and operates as a series company currently offering eight
series, including the Dreyfus Small Company Value Fund (the "Series").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor, located at One Exchange Place, Boston,
Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc. The Dreyfus Corporation
("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a direct
subsidiary of Mellon Bank, N.A. On September 29, 1995, the Fund's
shareholders approved a sub-investment advisory agreement between Dreyfus and
The Boston Company Asset Management, Inc. ("TBC Asset Management"), an
indirect subsidiary of Mellon Bank, N.A. and an affiliate of Dreyfus, with
respect to the Series.
On September 14, 1995, the Fund's Directors approved a change of the
Fund's name, effective October 1, 1995, from "Dreyfus Focus Funds, Inc." to
"Dreyfus Growth and Value Funds, Inc." and the Series was renamed Dreyfus
Small Company Value Fund.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
As of October 31, 1995, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, the parent company of which is Mellon Bank,
held 439,186 shares of Dreyfus Small Company Value Fund.
(A) PORTFOLIO VALUATION: The Series' investments in securities (including
options and financial futures) are valued at the last sales price on the
securities exchange on which such securities are primarily traded or at the
last sales price on the national securities market. Securities not listed on
an exchange or the national securities market, or securities for which there
were no transactions, are valued at the average of the most recent bid and
asked prices, except for open short positions, where the asked price is used
for valuation purposes. Bid price is used when no asked price is available.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(B) FOREIGN CURRENCY TRANSACTIONS: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
in securities, resulting from changes in exchange rates. Such gains and
losses are included with net realized and unrealized gain or loss on
investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, if any, it is the
policy of the Series not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Series to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-BANK LINE OF CREDIT:
In accordance with an agreement with a bank, the Series may borrow up to
$2 million under a short-term unsecured line of credit. Interest on
borrowings is charged at rates which are related to Federal Funds rates in
effect from time to time.
At October 31, 1995, there were no outstanding borrowings under the line
of credit. The average daily amount of short-term debt outstanding during the
year ended October 31, 1995 was approximately $39,532, with a related
weighted average annualized interest rate of 7.14%. The maximum amount of
such debt outstanding at any time during the year ended October 31, 1995, was
$268,000.
NOTE 3-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with Dreyfus, the
management fee is computed at the annual rate of .75
of 1% of the average daily value of the Series' net assets and is payable
monthly. The Agreement provides that if in any full fiscal year the aggregate
expenses of the Series, exclusive of taxes, brokerage, interest on borrowings
(which, in the view of Stroock & Stroock & Lavan, counsel to the Fund, also
contemplates dividends and interest accrued on securities sold short) and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the Series may deduct from payments to be made
to Dreyfus, or Dreyfus 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 (exclusive of certain expenses as described above)
exceed 21\2% of the first $30 million, 2% of the next $70 million and 11\2%
of the excess over $100 million of the average value of the Series' net
assets in accordance with California "blue sky" regulations. However, Dreyfus
had undertaken from November 1, 1994 through December 31, 1994, to
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
assume all expenses of the Series (exclusive of certain expenses as described
above) and thereafter had undertaken through July 10, 1995 to waive receipt
of the management, service and distribution fees. Dreyfus has currently
undertaken from July 11, 1995 through October 31, 1996 to reduce the
management fee paid by or reimburse such excess expenses of the Series, to
the extent that the Series' aggregate annual expenses (exclusive of certain
expenses as described above) exceed an annual rate of 1.25 of 1% of the
average daily value of the Series' net assets. The expense reimbursement,
pursuant to the undertakings, amounted to $101,524 for the year ended October
31, 1995.
The undertaking may be modified by Dreyfus from time to time, provided
that the resulting expense reimbursement would not be less than the amount
required pursuant to the agreement.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and TBC
Asset Management, the sub-investment advisory fee is computed at the annual
rate of .375 of 1% of the average daily value of the Series' net assets and
is payable monthly by Dreyfus.
(B) Prior to September 30, 1995, the Fund had a Distribution Plan (the
"Plan") adopted pursuant to Rule 12b-1 under the Act, which provided that the
Fund (a) reimburse the Distributor for payments to certain Service Agents for
distributing the Series' shares and (b) pay Dreyfus, Dreyfus Service
Corporation, a wholly-owned subsidiary of Dreyfus, and any affiliate of
either of them for advertising and marketing relating to the Series, at an
aggregate annual rate of .50 of 1% of the value of the Series' average daily
net assets. Under the Plan, the Distributor was permitted to pay one or more
Service Agents in respect of distribution services. The Distributor
determined the amounts, if any, to be paid to Service Agents under the Plan
and the basis on which such payments were made. The fees payable under the
Plan were payable without regard to actual expenses incurred. The Plan also
separately provided 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 the Series' average
daily net assets for any full fiscal year. For the period from November 1,
1994 to September 30, 1995 the Series was charged $27,483 pursuant to the Plan.
Effective September 30, 1995, the Fund's Plan was terminated.
(C) Under the Shareholder Services Plan, the Series pays the Distributor
at an annual rate of .25 of 1% of the value of the Series' average daily net
assets for the provision of certain services. 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 amounts to be paid to Service
Agents. During the year ended October 31, 1995, the Series was charged an
aggregate of $14,128 pursuant to the Shareholder Services Plan.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $5,000 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation. Prior to September 14, 1995, the annual fee was $3,000 and the
attendance fee was $250.
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities
and securities sold short, excluding short-term securities, during the year
ended October 31, 1995 is summarized as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------- --------------
<S> <C> <C>
Long transactions................................................ $7,954,518 $7,778,145
Short sale transactions.......................................... 483,691 722,731
-------------- --------------
TOTAL.......................................................... $8,438,209 $8,500,876
============== ==============
</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/or custodian, of cash and/or U.S. Government securities sufficient to
cover its short position. Securities sold short at October 31, 1995 and their
related market values and proceeds are set forth in the Statement of Securities
Sold Short.
(B) At October 31, 1995, accumulated net unrealized appreciation on
investments was $245,792, consisting of $521,273 gross unrealized
appreciation and $275,481 gross unrealized depreciation.
At October 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS SMALL COMPANY VALUE FUND
(FORMERLY DREYFUS SMALL COMPANY VALUE PORTFOLIO)-SEE NOTE 1
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS SMALL COMPANY VALUE FUND
We have audited the accompanying statement of assets and liabilities,
including the statement of investments and securities sold short, of Dreyfus
Small Company Value Fund (formerly Dreyfus Small Company Value Portfolio),
one of the Series constituting Dreyfus Growth and Value Funds, Inc., as of
October 31, 1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Small Company Value Fund at October 31, 1995, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights
for each of the indicated years, in conformity with generally accepted
accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
December 7, 1995
[Dreyfus lion "d" logo]
DREYFUS SMALL COMPANY VALUE FUND
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
The Boston Company
Asset Management, Inc.
One Boston Place
Boston, MA 02108
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
First Data Investor Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 253AR9510
[Dreyfus logo]
Small Company
Value Fund
Annual Report
October 31, 1995
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
LETTER TO SHAREHOLDERS
THIS PAGE RESERVED FOR LETTER TO SHAREHOLDERS
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO OCTOBER 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS SMALL COMPANY
GROWTH PORTFOLIO OF THE DREYFUS FOCUS FUNDS, INC. AND THE RUSSELL 2000 INDEX
[Exhibit A
Dollars
$11,791
Russell 2000 Index*
$11,462
Focus Small Company
Growth Portfolio
*Source: Lipper Analytical Services, Inc.]
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (12/29/93)
OCTOBER 31, 1995 TO OCTOBER 31, 1995
--------------------- ---------------------------
<S> <C> <C>
16.77% 7.70%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Small Company
Growth Portfolio of the Dreyfus Focus Funds, Inc. on 12/29/93 (Inception
Date) to a $10,000 investment made in the Russell 2000 Index on that date.
For comparative purposes, the value of the Index on 12/31/93 is used as the
beginning value on 12/29/93. All dividends and capital gain distributions are
reinvested.
The Portfolio's performance shown in the line graph takes into account all
applicable fees and expenses. The Russell 2000 Index is an unmanaged index
and is composed of the 2,000 smallest companies in the Russell 3000 Index.
The Russell 3000 Index is composed of 3,000 of the largest U.S. companies by
market capitalization. The Index does not take into account charges, fees and
other expenses. Further information relating to Portfolio performance,
including expense reimbursements, if applicable, is contained in the
Condensed Financial Information section of the Prospectus and elsewhere in
this report.
<TABLE>
<CAPTION>
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS OCTOBER 31, 1995
COMMON STOCKS-96.3% SHARES VALUE
----------- -----------
<S> <C> <C> <C>
COMMERCIAL SERVICES-1.3%....... Catalina Marketing (a) 1,500 $ 75,750
----------
CONSUMER DURABLES-1.8%......... Oakwood Homes 2,800 105,000
----------
CONSUMER NON-DURABLES-1.9%..... Nature's Sunshine Products 4,400 108,900
----------
CONSUMER SERVICES-2.4%......... People's Choice TV (a) 2,700 56,025
United International Holdings, Cl. A.........(a) 5,200 81,900
----------
137,925
----------
ELECTRONIC
TECHNOLOGY- 25.4%................ Altera .............................. (a) 4,800 290,400
Andrew .............................. (a) 3,600 152,100
Auspex Systems....................... (a) 8,600 121,475
Avid Technology...................... (a) 2,800 122,500
Lam Research......................... (a) 2,000 121,750
Network Equipment Technologies....... (a) 3,400 110,925
Novellus Systems..................... (a) 1,800 123,975
3Com................................. (a) 4,134 194,298
Tracor............................... (a) 5,000 80,000
Zilog................................ (a) 4,200 149,100
----------
1,466,523
----------
ENERGY-2.1%....................... Brown (Tom) (a) 6,700 74,537
Unit (a) 12,200 47,275
----------
121,812
----------
FINANCE-8.3%..................... NAC Re 2,500 87,813
PXRE................................... 3,000 76,500
Trenwick Group......................... 1,800 90,000
United Companies Financial............. 4,400 124,300
Vesta Insurance Group.................. 2,500 100,937
----------
479,550
----------
HEALTH SERVICES-1.6%............... GMIS (a) 4,400 50,600
Mariner Health Group................. (a) 4,000 39,000
----------
89,600
----------
HEALTH TECHNOLOGY-11.8%....... BioChem Pharma (a) 5,000 191,250
COR Therapeutics..................... (a) 6,500 67,438
Centocor............................. (a) 5,500 61,875
Ethical Holdings, A.D.R. ............ (a) 7,500 67,500
Immune Response...................... (a) 8,000 39,000
Liposome............................. (a) 6,800 104,550
Noven Pharmaceuticals................ (a) 4,300 44,075
Rexall Sundown....................... (a) 7,000 105,000
----------
680,688
----------
INDUSTRIAL SERVICES-18.8%...... Global Marine (a) 32,300 209,950
Helmerich & Payne...................... 2,800 72,450
Hornbeck Offshore Services........... (a) 4,900 71,663
Noble Drilling....................... (a) 8,500 59,500
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF INVESTMENTS OCTOBER 31, 1995
COMMON STOCKS-(CONTINUED) SHARES VALUE
----------- -----------
INDUSTRIAL SERVICES (CONTINUED) Parker Drilling (a) 15,100 $ 79,275
Reading & Bates...................... (a) 8,300 95,450
Rowan................................ (a) 15,900 105,338
Sonat Offshore Drilling................ 5,000 158,750
Varco International.................. (a) 11,900 108,587
Weatherford Enterra.................. (a) 5,250 126,656
----------
1,087,619
----------
NON-ENERGY MINERALS-1.3%.... Cleveland Cliffs 2,000 74,750
----------
PROCESS INDUSTRIES-2.1% Albany International, Cl. A 3,700 76,775
Seda Speciality Packaging............ (a) 4,000 44,500
----------
121,275
----------
TECHNOLOGY SERVICES-7.9%.... Aspen Technology (a) 4,500 123,750
Keane................................ (a) 3,300 89,100
McAfee Associates.................... (a) 2,700 157,275
Softkey International................ (a) 2,800 88,200
---------
458,325
----------
TRANSPORTATION-4.1%.......... Comair Holdings 4,800 134,700
SkyWest................................ 3,000 51,375
Werner Enterprises..................... 2,700 50,625
----------
236,700
----------
UTILITIES-5.5%....... Associated Group, Cl. A 800 14,800
Associated Group, Cl. B................ 800 14,200
C-TEC, Cl. B......................... (a) 2,400 51,300
Cellular Communications, Cl. A................(a) 2,800 150,150
Grupo Iusacell, S.A. de C.V., Cl. L, A.D.R...(a) 2,500 29,687
Rogers Cantel Mobile Communications, Cl. B....(a) 2,800 58,100
----------
318,237
----------
TOTAL COMMON STOCKS
(cost $ 4,644,278)................... $5,562,654
==========
PRINCIPAL
SHORT-TERM INVESTMENTS-1.5% AMOUNT
------------
U.S. Treasury Bills: 5.39%, 11/2/95.... $ 45,000 $ 44,994
5.28%, 11/16/95...................... 43,000 42,907
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $ 87,899)...................... $ 87,901
==========
TOTAL INVESTMENTS (cost $4,732,177)..................................... 97.8% $5,650,555
======= ==========
CASH AND RECEIVABLES (NET).................................................. 2.2% $ 124,785
======= ==========
NET ASSETS.................................................................. 100.0% $5,775,340
======= ==========
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $4,732,177)-see statement....................................... $5,650,555
Cash.................................................................... 130,294
Dividends and interest receivable....................................... 439
Prepaid expenses........................................................ 21,158
Due from The Dreyfus Corporation........................................ 4,583
----------
5,807,029
LIABILITIES:
Due to Distributor...................................................... $ 1,258
Accrued expenses........................................................ 30,431 31,689
---------- ----------
NET ASSETS ................................................................ $5,775,340
==========
REPRESENTED BY:
Paid-in capital......................................................... $5,036,545
Accumulated undistributed investment income--net-Note 1(c).............. 610
Accumulated net realized (loss) on investments.......................... (180,193)
Accumulated net unrealized appreciation on investments-Note 4........... 918,378
----------
NET ASSETS at value applicable to 407,274 shares outstanding
(100 million shares of $.001 par value Common Stock authorized)......... $5,775,340
==========
NET ASSET VALUE per share ($5,775,340 / 407,274 shares)..................... $14.18
==========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF OPERATIONS YEAR ENDED OCTOBER 31, 1995
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.............................................................. $ 41,415
Cash dividends........................................................ 15,239
--------
TOTAL INCOME...................................................... $ 56,654
EXPENSES:
Management fee-Note 3(a).............................................. $ 40,507
Shareholder servicing costs-Note 3(b,c)............................... 40,130
Legal fees............................................................ 18,564
Auditing fees......................................................... 13,685
Registration fees..................................................... 9,033
Organization expenses................................................. 5,910
Prospectus and shareholders' reports-Note 3(b)........................ 4,650
Directors' fees and expenses-Note 3(d)................................ 4,058
Custodian fees........................................................ 1,729
Miscellaneous......................................................... 1,316
--------
139,582
Less-expense reimbursement from Manager
due to undertakings-Note 3(a)..................................... 91,293
--------
TOTAL EXPENSES.................................................. 48,289
--------
INVESTMENT INCOME-NET........................................... 8,365
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 4............................... $216,750
Net unrealized appreciation on investments............................ 652,140
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS............................. 868,890
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $877,255
==========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
------------------------------
1994* 1995
------------ ------------
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 38,622 $ 8,365
Net realized gain (loss) on investments................................. (396,943) 216,750
Net unrealized appreciation on investments for the year................. 266,238 652,140
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... (92,083) 877,255
---------- ----------
DIVIDENDS TO SHAREHOLDERS;
From investment income-net.............................................. -- (51,302)
---------- ----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 5,286,073 728,509
Dividends reinvested.................................................... -- 51,302
Cost of shares redeemed................................................. (179,625) (869,789)
---------- ----------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS..... 5,106,448 (89,978)
---------- ----------
TOTAL INCREASE IN NET ASSETS...................................... 5,014,365 735,975
NET ASSETS:
Beginning of year....................................................... 25,000 5,039,365
---------- ----------
End of year (Including undistributed investment income-net
of $38,622 in 1994 and $610 in 1995).................................. $5,039,365 $5,775,340
========== ==========
................................................................ Shares Shares
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 424,287 56,917
Shares issued for dividends reinvested.................................. -- 4,465
Shares redeemed......................................................... (15,425) (64,970)
---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING......................... 408,862 (3,588)
========== ==========
* From December 29, 1993 (commencement of operations) to October 31, 1994.
</TABLE>
See notes to financial statements.
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for the Series for each year indicated.
This information has been derived from the Series' financial statements.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------
PER SHARE DATA: 1994(1) 1995
-------- -------
<S> <C> <C>
Net asset value, beginning of year............................................... $12.50 $12.27
------ ------
Investment Operations:
Investment income-net............................................................ .09 .02
Net realized and unrealized gain (loss) on investments........................... (.32) 2.01
------ ------
TOTAL FROM INVESTMENT OPERATIONS........................................... (.23) 2.03
------ ------
DISTRIBUTIONS;
Dividends from investment income-net............................................. -- (.12)
------ ------
Net asset value, end of year..................................................... $12.27 $14.18
====== ======
TOTAL INVESTMENT RETURN.............................................................. (1.84%)(2) 16.77%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.......................................... -- .89%
Ratio of net investment income to average net assets............................. .79%(2) .15%
Decrease reflected in above expense ratios due to
undertakings by the Manager.................................................... 1.96%(2) 1.69%
Portfolio Turnover Rate.......................................................... 25.95%(2) 14.43%
Net Assets, end of year (000's omitted).......................................... $5,039 $5,775
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Small Company Growth Portfolio (the "Series") is a Series of Dreyfus
Focus Funds, Inc. (the "Fund") a diversified open-end management investment
company registered under the Investment Company Act of 1940 (the "Act").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales charge. The Distributor, located at One Exchange Place, Boston,
Massachusetts 02109, is a wholly-owned subsidiary of FDI Distribution
Services, Inc., a provider of mutual fund administration services, which in
turn is a wholly-owned subsidiary of FDI Holdings, Inc., the parent company
of which is Boston Institutional Group, Inc. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.
As of October 31, 1995, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, the parent company of which is Mellon Bank,
N.A. held 406,198 shares of Dreyfus Small Company Growth Portfolio.
The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
(A) PORTFOLIO VALUATION: The Series' investments in securities (including
options and financial futures) are valued at the last sales price on the
securities exchange on which such securities are primarily traded or at the
last sales price on the national securities market. Securities not listed on
an exchange or the national securities market, or securities for which there
were no transactions, are valued at the average of the most recent bid and
asked prices, except for open short positions, where the asked price is used
for valuation purposes. Bid price is used when no asked price is available.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain are normally declared and paid annually, but the Series may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. To the extent that net realized
capital gain can be offset by capital loss carryovers, it is the policy of
the Series not to distribute such gain.
During the year ended October 31, 1995, the Series reclassified $4,925
charged to undistributed income--net in prior years to paid-in capital.
(D) FEDERAL INCOME TAXES: It is the policy of the Series to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Series has an unused capital loss carryover of approximately $180,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1995. If not
applied, the carryover expires in fiscal 2002.
NOTE 2-BANK LINE OF CREDIT;
In accordance with an agreement with a bank, the Series may borrow up to
$2 million under a short-term unsecured line of credit. Interest on
borrowings is charged at rates which are related to Federal Funds rates in
effect from time to time.
During the year ended October 31, 1995, there were no borrowings under
the line of credit.
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 the Series' net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the
Series, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series, the 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 (exclusive of certain expenses as
described above) exceed 2 1/2% of the first $30 million, 2% of the next $70
million and 1 1/2% of the excess over $100 million of the average value of
the Series' net assets in accordance with California "blue sky" regulations.
However, the Manager had undertaken from November 1, 1994 through December
31, 1994, to assume all expenses of the Series (exclusive of certain expenses
as described above) and thereafter had undertaken through July 10, 1995 to
waive receipt of the management, service and distribution fees. The Manager
has currently undertaken from July 11, 1995 through December 31, 1995 to
reduce the management fee paid by the Series to the extent that the Series'
aggregate annual expenses (exclusive of certain expenses as described above)
exceed an annual rate of 1.25 of 1% of the average daily value of the Series'
net assets. The expense reimbursement, pursuant to the undertakings, amounted
to $91,293 for the year ended October 31, 1995.
The undertaking may be modified by the Manager from time to time,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the agreement.
(B) Prior to October 1, 1995, the Fund had a Distribution Plan (the
"Plan") adopted pursuant to Rule 12b-1 under the Act, which provided that the
Fund (a) reimburse the Distributor for payments to certain Service Agents for
distributing the Series' shares and (b) pay the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager and any affiliate of
either of them for advertising and marketing relating to the Series, at an
aggregate annual rate of .50 of 1% of the value of the Series' average daily
net assets. Under the Plan the Distributor was permitted to pay one or more
Service Agents in respect of distribution services. The Distributor
determined the amounts, if any, to be paid to Service Agents under the Plan
and the basis on which such payments were made. The fees payable under the
Plan were payable without regard to actual expenses incurred. The Plan also
separately provided 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 the Series' average
daily net assets for any full fiscal year. For the period from
November 1, 1994 to September 30, 1995, the Series was charged $27,166
pursuant to the Plan. Effective October 1, 1995, the Fund's Plan
was terminated.
(C) Under the Shareholder Services Plan, the Series pays the Distributor
at an annual rate of .25 of 1% of the value of the Series' average daily net
assets for the provision of certain services. 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 amounts to be paid to Service
Agents. During the year ended October 31, 1995, the Series was charged an
aggregate of $13,502 pursuant to the Shareholder Services Plan.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $5,000 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation. Prior to September 14, 1995, the annual fee was $3,000 and the
attendance fee was $250.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
other than short-term securities, during the year ended October 31, 1995,
amounted to $1,142,110 and $669,315, respectively.
At October 31, 1995, accumulated net unrealized appreciation on
investments was $918,378, consisting of $1,425,291 gross unrealized
appreciation and $506,913 gross unrealized depreciation.
At October 31, 1995, the cost of investments for federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
NOTE 5-SUBSEQUENT EVENT;
On September 14, 1995 the Board of Director's approved a plan to
liquidate the Fund as of November 3, 1995 and the Fund commenced the
liquidation shortly thereafter.
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS FOCUS FUNDS, INC., SMALL COMPANY GROWTH PORTFOLIO
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Small Company Growth
Portfolio (one of the Series constituting Dreyfus Focus Funds, Inc.), as of
October 31, 1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended, and financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1995 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Small Company Growth Portfolio at October 31, 1995, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated periods, in conformity with generally
accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
December 7, 1995
[Dreyfus lion "d" logo]
DREYFUS FOCUS FUNDS-
SMALL COMPANY GROWTH
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 252AR9510
[Dreyfus logo]
Focus Funds-
Small Company
Growth
Annual Report
October 31, 1995
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
LARGE COMPANY GROWTH FUND OF THE DREYFUS GROWTH AND VALUE FUNDS,
INC. AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
_________________________________________________
| | LARGE | STANDARD & POOR'S |
| | COMPANY | 500 COMPOSITE |
| PERIOD | GROWTH | STOCK PRICE |
| | FUND | INDEX* |
|-------- | --------- | ----------------- |
|12/29/93 | 10,000 | 10,000 |
|1/31/94 | 10,360 | 10,340 |
|4/30/94 | 9,608 | 9,745 |
|7/31/94 | 9,848 | 9,979 |
|10/31/94 | 10,440 | 10,360 |
|1/31/95 | 9,928 | 10,393 |
|4/30/95 | 10,636 | 11,443 |
|7/31/95 | 11,727 | 12,579 |
|10/31/95 | 12,036 | 13,096 |
|_________________________________________________|
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
LARGE COMPANY VALUE FUND OF THE DREYFUS GROWTH AND VALUE FUNDS,
INC. AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
________________________________________________
| | LARGE | STANDARD & POOR'S |
| | COMPANY | 500 COMPOSITE |
| PERIOD | VALUE | STOCK PRICE |
| | FUND | INDEX* |
|-------- | --------- | ----------------- |
|12/29/93 | 10,000 | 10,000 |
|1/31/94 | 10,440 | 10,340 |
|4/30/94 | 9,968 | 9,745 |
|7/31/94 | 10,040 | 9,979 |
|10/31/94 | 10,104 | 10,360 |
|1/31/95 | 10,009 | 10,393 |
|4/30/95 | 11,151 | 11,443 |
|7/31/95 | 12,244 | 12,579 |
|10/31/95 | 12,704 | 13,096 |
|----------------------------------------------- |
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
SMALL COMPANY VALUE FUND OF THE DREYFUS GROWTH AND VALUE FUNDS,
INC. AND THE RUSSELL 2000 INDEX
EXHIBIT A:
___________________________________________
| | SMALL | |
| | COMPANY | |
| PERIOD | VALUE | RUSSELL 2000 |
| | FUND | INDEX* |
|-------- | --------- | ------------ |
|12/29/93 | 10,000 | 10,000 |
|1/31/94 | 10,528 | 10,313 |
|4/30/94 | 9,976 | 9,792 |
|7/31/94 | 9,736 | 9,509 |
|10/31/94 | 9,944 | 9,965 |
|1/31/95 | 9,813 | 9,696 |
|4/30/95 | 10,519 | 10,502 |
|7/31/95 | 11,657 | 11,884 |
|10/31/95 | 12,062 | 11,791 |
|------------------------------------------ |
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
SMALL COMPANY GROWTH PORTFOLIO OF THE DREYFUS FOCUS FUNDS, INC.
AND THE RUSSELL 2000 INDEX
EXHIBIT A:
___________________________________________
| | SMALL | |
| | COMPANY | |
| PERIOD | GROWTH | RUSSELL 2000 |
| | PORTFOLIO | INDEX* |
|-------- | --------- | ------------ |
|12/29/93 | 10,000 | 10,000 |
|1/31/94 | 10,120 | 10,313 |
|4/30/94 | 9,480 | 9,792 |
|7/31/94 | 9,200 | 9,509 |
|10/31/94 | 9,816 | 9,965 |
|1/31/95 | 9,094 | 9,696 |
|4/30/95 | 10,104 | 10,502 |
|7/31/95 | 11,454 | 11,884 |
|10/31/95 | 11,462 | 11,791 |
|------------------------------------------ |
*Source: Lipper Analytical Services, Inc.
