DREYFUS INTERNATIONAL VALUE FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to introduce Sandor Cseh, the portfolio manager of the
Dreyfus International Value Fund (a portfolio of Dreyfus Growth and Value
Funds, Inc.).
In 1994, Sandor joined The Boston Company. As director of International
Investments, Sandor spearheads The Boston Company's international equity
group. In this capacity, he manages Dreyfus International Value Fund on
behalf of Dreyfus and The Boston Company.
Prior to joining The Boston Company, he was president of his own money
management firm and, before that, was founder and manager of Provident
Capital Management Inc.'s International Funds Group. He started his career as
a securities analyst with several banks including Provident National and
Fleet Bank.
Sandor graduated with a B.S. in Finance from the University of Delaware
and is a Chartered Financial Analyst.
We at Dreyfus are pleased that you are one of our investors and that
Sandor Cseh will be working on your behalf.
Sincerely,
[Stephen Canter signature logo]
Stephen Canter
Chief Investment Officer
The Dreyfus Corporation
DREYFUS INTERNATIONAL VALUE FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We welcome you as an investor in Dreyfus International Value Fund, a
portfolio of the Dreyfus Growth and Value Funds, Inc. This initial report
covers the period from inception of the Fund, September 29, 1995, through the
end of its first semi-annual fiscal period, February 29, 1996.
During those five months, the Fund's total return was 4.82%,* which
compares with a total return of 3.94% for the Lipper International Fund
Index.** We believe the Fund is off to a good start.
ECONOMIC AND MARKET ENVIRONMENT
During the brief time that this new Fund has been operating, the equity
market in the U.S. has been considerably stronger than those abroad. However,
signs of strength are beginning to appear in the international markets.
At present, the markets in Europe are dealing with the uncertain
prospects for European Monetary Union. The debate among the leading powers of
Europe is becoming quite rancorous, which leads to considerable currency
volatility. This is one reason for recent strength in the dollar. It signals
us to use considerable caution in making European investments. For the same
reasons, a number of solid European investments are now attractively priced.
Japan, on the other hand, may be emerging from its recent financial
difficulties. After five or six years of economic reverses, we are beginning
to see growth in Japanese Gross Domestic Product and earnings. Accordingly,
prospects appear better for investments in consumer-related Japanese
companies as well as others that could benefit from an economic revival.
The deflation that has plagued Japan seems to be coming to an end.
Japanese interest rates may enjoy a modest rise, which would be seen as a
clear sign that deflation has ended.
The emerging markets of Asia and Latin America have recently endured a
shake-out, but the correction may be ending. Prospects in Indonesia, Hong
Kong, Singapore and Malaysia look attractive now. China and India also have
potential as investment opportunities and both warrant close investigation.
PORTFOLIO FOCUS
The Dreyfus International Value Fund follows a disciplined value-oriented
approach. The Fund will be well diversified and invested in at least fifteen
different countries. The stocks in the portfolio will have favorable value
characteristics, such as low price-to-earnings and low price-to-book ratios
relative to the country in which they are located.
Although we use quantitative screens to select the value universe in the
various countries, the emphasis is on fundamental analysis. Portfolio
managers and analysts travel abroad to visit company managements. The ideal
candidates for investment are stocks that are inexpensive relative to the
local market with solid balance sheets and favorable earnings prospects.
The portfolio is currently represented in 20 different countries. The
three largest markets-Japan, United Kingdom and Germany-account for just over
50% of the investments. The portfolio also has representation in emerging
markets, with investments in Argentina, Mexico, Portugal and Malaysia.
Looking ahead, we intend to remain well diversified and add to value
through stock selection. Markets abroad are less efficient and our
experienced team of portfolio managers and analysts intends to take advantage
of these inefficiencies. During the past two years, most foreign stock
markets have lagged the U.S. by a wide margin. We believe that now many of
those markets are attractively valued relative to U.S. equities.
It is a privilege to manage financial assets for you. I look forward to a
continuing and mutually rewarding relationship.
Sincerely,
[Sandor Cseh signature logo]
Sandor Cseh
Portfolio Manager
March 18, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES - Unlike the Fund, which can invest in
various types of securities and engage in different investment techniques,
the Lipper International Fund Index measures performance of funds which
primarily invest in equity securities with trading markets outside the U.S.
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<CAPTION>
DREYFUS INTERNATIONAL VALUE FUND
STATEMENT OF INVESTMENTS FEBRUARY 29, 1996 (UNAUDITED)
COMMON STOCKS-72.0% SHARES VALUE
_______ ______
<S> <C> <C> <C>
ARGENTINA-.7% YPF Sociedad Anonima, ADR.............. 4,000 $ 77,500
______
AUSTRALIA-2.4% Amcor.................................. 8,000 58,125
Boral.................................. 21,000 56,695
Goodman Fielder........................ 38,412 40,835
Southcorp Holdings..................... 23,000 56,641
Westpac Banking........................ 14,000 66,170
______
278,466
______
AUSTRIA-.5% Creditanstalt-Bankverein............... 400 56,205
______
DENMARK-.8% Tele Danmark, ADR...................... 3,000 88,500
______
FRANCE-6.4% Alcatel Alsthom, ADR................... 6,000 107,250
C.S.F. (Thompson)...................... 3,000 76,812
Chargeurs.............................. 375 96,535
Danone................................. 800 127,683
Elf Auitaine, ADR...................... 4,000 138,000
Guyenne & Gascogne..................... 200 65,743
Societe Generale....................... 1,000 113,861
______
725,884
______
GERMANY-5.1% Adidas AG.............................. 1,300 83,076
Bayer AG............................... 500 152,292
Deutsche Bank AG....................... 2,200 110,665
SGL Carbon AG.......................... 800 (a) 71,117
Siemens AG............................. 140 79,722
VEBA AG................................ 1,800 84,591
______
581,463
______
HONG KONG-1.7% Cheung Kong Holdings................... 12,000 83,430
HSBC Holdings.......................... 4,400 70,573
Yue Yue Industrial Holdings............ 150,000 38,223
______
192,226
______
ITALY-2.0% Fiat Spa............................... 12,000 37,890
Istituto Mobiliare Italiano, ADR....... 4,000 84,500
Stet, Di Risp.......................... 45,000 101,510
______
223,900
______
JAPAN-22.3% Canon................................. 8,000 146,837
Chudenko............................... 2,000 69,425
Credit Saison.......................... 6,000 129,529
Dai-Tokyo Fire & Marine Insurance...... 25,000 181,883
Hitachi................................ 15,000 151,213
Hitachi Koki........................... 11,000 102,939
Honda Motor............................ 3,000 63,623
Ito-Yokado............................. 2,000 111,840
Kao.................................... 12,000 150,642
Mabuchi Motor.......................... 1,800 110,414
DREYFUS INTERNATIONAL VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_____________
JAPAN (CONTINUED) Mikuni Coca Cola ...................... 13,000 $ 160,723
Mitsubishi Heavy Industries............ 20,000 161,864
Murata Manufacturing................... 5,000 165,002
Nishimatsu Construction................ 10,000 111,270
Ono Pharmaceutical..................... 4,000 147,599
Sekisui House.......................... 10,000 124,584
Toshiba................................ 15,000 115,977
Toyota Motor........................... 5,000 107,941
Yamanouchi Pharmaceutical.............. 4,000 89,396
Yamato Transport....................... 12,000 134,665
______
2,537,366
______
MALAYSIA-1.4% Affin Holdings Berhad.................. 28,000 64,835
Malaysia International Shipping........ 25,000 69,662
Pacific & Orient....................... 8,000 26,845
______
161,342
______
MEXICO-.5% Telefonos De Mexico, Series L, ADR. 2,000 61,000
______
NETHERLANDS-6.4% ABN Amro Holdings ...................... 3,000 139,174
Hollandsche Beton Groep................ 500 78,229
Hunter Douglas......................... 1,500 87,326
ING Groep.............................. 1,500 99,424
Koninklinke KNP........................ 3,000 (a) 83,505
Royal PTT Nederland, ADR............... 1,900 75,763
Stad Rotterdam CVA..................... 1,716 53,697
Unilever NV, ADR....................... 800 107,600
______
724,718
______
NEW ZEALAND-.8% Air New Zealand........................ 14,000 44,316
Brierley Investments................... 60,000 52,129
______
96,445
______
NORWAY-.4% Christiania Bank....................... 17,000 43,484
______
PORTUGAL-.6% Portugal Telecom SA, ADR .............. 3,000 (a) 69,000
______
SINGAPORE-.3% Far East Levingston Shipbuilding 6,000 35,707
______
SPAIN-2.8% Corporacion Bancaria De Espana, ADR. 4,500 101,812
Iberdrola SA........................... 7,000 68,899
Repsol SA, ADR......................... 4,000 145,000
______
315,711
______
SWEDEN-1.3% Marieberg Tidnings..................... 3,800 101,108
Volvo AB `B', ADR...................... 2,000 42,469
______
143,577
______
SWITZERLAND-4.2% Ciba-Geigy AG.......................... 100 89,288
Magazine Zum Globus.................... 150 (a) 77,532
Nestle SA.............................. 100 109,379
DREYFUS INTERNATIONAL VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
_____________
SWITZERLAND (CONTINUED) Schweizerischer Banksverein 375 $ 137,870
Zurich Versicherungs................... 250 68,153
______
482,222
______
UNITED KINGDOM-11.4% Abbey National......................... 5,000 43,901
BTR.................................... 25,000 123,437
Boots.................................. 14,100 128,119
British Airways PLC, ADR............... 1,000 77,500
British Gas, ADR....................... 4,000 145,000
Hanson, ADR............................ 8,000 118,000
Laird Group PLC........................ 25,000 155,971
National Westminster Bank.............. 12,000 126,859
Powergen............................... 18,000 148,813
RTZ.................................... 10,000 139,876
Scapa Group............................ 23,000 83,807
______
1,291,283
______
TOTAL COMMON STOCKS
(cost $7,958,503).................... $ 8,185,999
======
PREFERRED STOCKS-1.4%
GERMANY; RWE AG (Non-Voting).....................
(cost $141,950)...................... 5,000 $ 154,907
=======
PRINCIPAL
SHORT-TERM INVESTMENTS-22.6% AMOUNT
_______
U.S. TREASURY BILLS: 6.08%, 3/7/96.......................... $ 41,000 $ 40,966
5.23%, 3/14/96......................... 52,000 51,907
5.34%, 4/4/96.......................... 79,000 78,633
5.34%, 4/18/96......................... 105,000 104,297
5.25%, 4/25/96......................... 92,000 91,321
5.83%, 5/2/96.......................... 954,000 945,891
5.29%, 5/9/96.......................... 299,000 296,195
5.33%, 5/16/96......................... 976,000 965,937
______
TOTAL SHORT-TERM INVESTMENTS
(cost $2,575,664).................... $ 2,575,147
======
TOTAL INVESTMENTS (cost $10,676,117)....................... 96.0% $10,916,053
===== ======
CASH AND RECEIVABLES (NET)................. 4.0% $ 460,072
===== ======
NET ASSETS.................................................................. 100.0% $11,376,125
===== ======
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
</TABLE>
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DREYFUS INTERNATIONAL VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $10,676,117)-see statement...................................... $10,916,053
Cash.................................................................... 552,961
Dividends receivable.................................................... 10,899
Prepaid expenses........................................................ 1,379
______
11,481,292
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 2,848
Due to Distributor...................................................... 1,846
Payable for investment securities purchased............................. 77,527
Net unrealized depreciation on forward currency
exchange contracts-Note 3(a).......................................... 98
Accrued expenses........................................................ 22,848 105,167
____ ______
NET ASSETS.................................................................. $11,376,125
======
REPRESENTED BY:
Paid-in capital......................................................... $11,126,288
Accumulated undistributed investment income-net......................... 832
Accumulated undistributed net realized gain on investments.............. 9,906
Accumulated net unrealized appreciation on investments
and foreign currency transactions..................................... 239,099
______
NET ASSETS at value applicable to 873,324 outstanding shares of
Common Stock, equivalent to $13.03 per share (100 million shares
of $.001 par value authorized).......................................... $11,376,125
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL VALUE FUND
STATEMENT OF OPERATIONS
FROM SEPTEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 29, 1996 (UNA
UDITED)
<S>
INVESTMENT INCOME:
INCOME: <S> <C>
Cash dividends (net of $1,628 foreign taxes withheld at source)....... $32,693
Interest.............................................................. 24,557
____
TOTAL INCOME.................................................... $ 57,250
EXPENSES:
Management fee-Note 2(a).............................................. 26,576
Legal fees............................................................ 22,737
Custodian fees........................................................ 9,428
Shareholder servicing costs-Note 2(b)................................. 8,597
Auditing fees......................................................... 6,818
Registration fees..................................................... 3,985
Directors' fees and expenses-Note 2(c)................................ 2,052
Prospectus and shareholders' reports.................................. 1,786
Miscellaneous......................................................... 467
____
TOTAL EXPENSES.................................................. 82,446
Less-expense reimbursement from Manager
due to undertaking-Note 2(a)...................................... 42,581
____
NET EXPENSES.................................................... 39,865
____
INVESTMENT INCOME-NET........................................... 17,385
____
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments and foreign currency
transactions-Note 3(a)................................................ $ (6,838)
Net realized gain on forward currency exchange contracts................ 30,684
____
NET REALIZED GAIN..................................................... 23,846
Net unrealized appreciation on investments and foreign currency
transactions.......................................................... 239,099
____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 262,945
____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $280,330
====
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
FROM SEPTEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 29, 1996 (UNA
UDITED)
<S> <C> <C>
OPERATIONS:
Investment income-net..................................................................... $ 17,385
Net realized gain on investments.......................................................... 23,846
Net unrealized appreciation on investments for the period................................. 239,099
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................... 280,330
______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net..................................................................... (16,553)
Net realized gain on investments.......................................................... (13,940)
______
TOTAL DIVIDENDS......................................................................... (30,493)
______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold............................................................. 12,883,361
Dividends reinvested...................................................................... 30,423
Cost of shares redeemed................................................................... (1,787,496)
______
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.................................. 11,126,288
______
TOTAL INCREASE IN NET ASSETS........................................................ 11,376,125
NET ASSETS:
Beginning of period....................................................................... _______
End of period (including undistributed investment income-net;
$832 on February 29, 1996).............................................................. $11,376,125
======
SHARES
______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................................... 1,014,957
Shares issued for dividends reinvested.................................................... 2,436
Shares redeemed........................................................................... (144,069)
______
NET INCREASE IN SHARES OUTSTANDING...................................................... 873,324
======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL VALUE FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
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 period September 29, 1995
(commencement of operations) to February 29, 1996. This information has been
derived from the Fund's financial statements.
<S> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period..................................................... $12.50
___
INVESTMENT OPERATIONS:
Investment income-net.................................................................... .04
Net realized and unrealized gain on investments.......................................... .56
___
TOTAL FROM INVESTMENT OPERATIONS....................................................... .60
___
DISTRIBUTIONS:
Dividends from investment income-net..................................................... (.04)
Dividends from net realized gain on investments.......................................... (.03)
___
TOTAL DISTRIBUTIONS.................................................................... (.07)
___
Net asset value, end of period........................................................... $13.03
===
TOTAL INVESTMENT RETURN...................................................................... 4.82%*
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................................. .63%*
Ratio of net investment income to average net assets..................................... .28%*
Decrease reflected in above expense ratios due to
undertakings by the Manager............................................................ .67%*
Portfolio Turnover Rate.................................................................. 8.63%*
Average commission rate paid............................................................. $ .0362
Net Assets, end of period (000's omitted)................................................ $11,376
_________________
* Not annualized.
See notes to financial statements.
</TABLE>
DREYFUS INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Growth and Value Funds, Inc. (the "Company") 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 International Value Fund (the
"Fund") which commenced operations on September 29, 1995. The Fund's
investment objective is long term capital growth. The Dreyfus Corporation
("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a direct sub-
sidiary 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 Fund. 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 Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each Fund are
charged to that funds' operations; expenses which are applicable to all
series are allocated among them on a pro rata basis.
As of February 29, 1996, Allomon Corporation, a subsidiary of Mellon Bank
Investments Corporation, the parent company of which is Mellon Bank, held
402,242 shares of the Fund.
(A) PORTFOLIO VALUATION: The Fund's 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. Forward currency exchange contracts are
valued at the forward rate.
(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 Funds' books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains or 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.
DREYFUS INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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 Fund 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 Fund not to distribute such gain.
(E) FEDERAL INCOME TAXES: It is the policy of the Fund to qualify as a
regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the 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-MANAGEMENT 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 1% of the value of the
Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
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 Fund,
the Fund 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 Fund 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 Fund's net assets in accordance with
California "blue sky" regulations. Dreyfus has currently undertaken from
September 29, 1995 through July 31, 1996 to reduce the management fee paid by
or reimburse such excess expenses of the Fund, to the extent that the Fund's
aggregate annual expenses (exclusive of certain expenses as described above)
exceed an annual rate of 1.50 of 1% of the value of the Fund's average daily
net assets. The expense reimbursement, pursuant to the undertaking, amounted
to $42,581 for the period ended February 29, 1996.
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 .50 of 1% of the average daily value of the Fund's net assets and is
paid monthly by Dreyfus out of its fee.
DREYFUS INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a
transfer agency agreement for providing personnel and facilities to perform
transfer agency services for the Fund. Such compensation amounted to $226 for
the period from December 1, 1995 through February 29, 1996.
(B) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the Fund's 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 Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
The Distributor may make payments to Service Agents in respect of these
services. The Distributor determines the amounts to be paid to Service
Agents. During the period ended February 29, 1996, the Fund was charged an
aggregate of $6,644 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Company 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.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts,
during the period ended February 29, 1996, amounted to $8,519,260 and
$433,096, respectively.
In addition, the following summarizes open forward currency exchange
contracts at February 29, 1996:
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<CAPTION>
FOREIGN
CURRENCY U.S. DOLLAR UNREALIZED
FORWARD CURRENCY SALES CONTRACTS AMOUNT PROCEEDS VALUE (DEPRECIATION)
- --------------------------------- ______ _______ ______ _______
<S>
<C> <C> <C> <C>
British Pounds, expiring 3/7/96.............. 28,700 $43,939 $44,037 ($98)
==
</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 Fund 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 Fund realizes a gain
if the value of the contract decreases between those dates. With respect to
purchases of forward currency exchange contracts, the Fund 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 Fund realizes a
gain if the value of the contract increases between those dates. The Fund is
also
DREYFUS INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 February 29, 1996, accumulated net unrealized appreciation on
investments and foreign currency exchange contracts was $239,838, consisting
of $402,379 gross unrealized appreciation and $162,541 gross unrealized
depreciation.
At February 29, 1996, 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 lion "d" logo]
DREYFUS INTERNATIONAL VALUE FUND
200 Park Avenue
New York, NY 10166
MANAGER
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
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 254SA962
[Dreyfus logo]
International
Value Fund
Semi-Annual
Report
February 29, 1996
