DREYFUS SMALL COMPANY VALUE FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report that the Dreyfus Small Company Value Fund
achieved strong results in its latest semi-annual fiscal period, the six
months ended April 30, 1996.
While the stock market set a series of records during that time frame,
the U.S. economy sent out mixed signals.
ECONOMIC ENVIRONMENT
Conflicting data with lack of firm direction is the best way to describe
the economic data that has recently been reported. While only two months ago
the consensus opinion that the Fed would cut interest rates prevailed, today
that seems a distant hope. A stronger economy, rising auto production, high
oil prices and record levels of commodity pricing are currently in place.
Inflation appears controlled; however, prices are rising in the energy,
grain, and metals markets. Wage inflation seems contained as layoffs
continue; this is the result of corporate America's restructuring. The
consumer seems on the one hand heavily in debt, but on the other stimulating
retail consumption.
MARKET ENVIRONMENT
The stock market started 1996 with small companies lagging the
performance of large capitalization stocks. As we write, that has reversed
itself. Interest rates are rising and corporate profits are slowing down in
many sectors. The dollar seems to be rising in value. The stock market
drivers over the last six months are twofold: profits and liquidity. With the
broader equity markets at historically high levels of value, individuals
continue to fuel the advance of equity values by pumping record levels of
money into U.S. mutual funds. Money managers have been putting this cash flow
to work in both equities and bonds, driving equity values to unusually high
levels. An important share of this new money has gone into small
capitalization stocks.
Cyclical companies are showing high secular operating margins which could
diminish with this economy. Financial companies, in particular banks, are
experiencing a deterioration in credit quality, especially in the area of
credit card delinquencies. Technology companies have retrenched in value as a
PC slowdown in the early part of 1996 is working its way through and
inventory levels come down. The market has been buoyed by strong earnings
growth in the energy sector, especially the oil service sector. The latter
group is showing the highest level of profits in a decade.
PORTFOLIO OVERVIEW
For the six months ended April 30, 1996, the Fund's total return was
27.37%* compared to the Fund's benchmark, the Russell 2000 Index's return of
18.42%.** The portfolio enjoyed the benefit of a strong energy market with
large gains from our holdings of Tuboscope Vetco International, Rowan, Dreco
Energy Services, Cl. A and Arethusa Offshore; the latter is being acquired by
Diamond Offshore. The big increases in operating profits have brought
investor attention to the group and values reflect the discovery of the turn
in the group's fortunes.
We took advantage of the pullback in technology and added a considerable
number of companies to the portfolio. Top 10 holdings now include HMT
Technology and Symantec. Both have appreciated considerably in value since
purchased. We believe there is significant value to be found in technology
stocks, and are focusing a considerable amount of research time in this area.
While we recognize that interest rates could rise, we continue to believe
in the secular consolidation of the banking industry and remain steadfast in
our ownership of savings and loans. This includes Bay View Capital, City
National, and Flushing Financial. However, the interest-rate impact on the
Fund's insurance holdings has been negative. These stocks have not had a
positive influence on the portfolio over the last six months.
In closing, we are both positive and cautious. We are positive on small
capitalization valuation and earnings growth compared to similar large
capitalization, yet cautious on the high level of the overall stock market.
We expect interest rates to be volatile in the short run and this could have
a destabilizing impact on equities. However, we continue to find value in the
small-capitalization area and are optimistic that the stock market will
recognize this value over time.
Sincerely,
[David L. Diamond signature logo]
David L. Diamond
Portfolio Manager
May 15, 1996
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 may invest in various types of securities and engage in
different investment techniques, the Russell 2000 Index is a widely accepted
unmanaged index of small cap stock performance.
<TABLE>
DREYFUS SMALL COMPANY VALUE FUND
STATEMENT OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS-96.6% SHARES VALUE
______ ______
<S> <C> <C> <C>
BASIC INDUSTRIES-8.0% Apogee Enterprises..................... 3,000 $ 78,750
BWay................................... 4,000 69,000
Bowne & Co............................. 2,000 36,000
Calgon Carbon.......................... 7,200 90,000
CalMat................................. 4,000 69,500
Century Aluminum....................... 3,500 51,625
Dexter................................. 1,500 40,312
Dravo.................................. (a) 2,000 27,500
Fuller (H.B.).......................... 1,300 42,575
Gundle/SLT Environmental............... (a) 8,000 54,000
Handy & Harman......................... 2,100 35,700
Mosinee Paper.......................... 2,200 71,225
Rock Tennessee, Cl. A.................. 2,500 43,750
_____
709,937
_____
CAPITAL GOODS-6.8% Avondale Industries.................... (a) 5,000 95,625
Chart Industries....................... 11,500 133,688
Daniel Industries...................... 4,000 62,000
Elsag Baily Process Auto, N.V. ........ (a) 3,000 67,500
Giddings & Lewis....................... 2,800 51,975
Global Industrial Technologies......... (a) 1,600 29,400
UNR Industries......................... 10,000 93,125
Zurn Industries........................ 3,400 69,275
_____
602,588
_____
CONSUMER DURABLES-6.5% Arctco................................. 3,000 28,875
BE Aerospace........................... (a) 2,500 38,437
Bassett Furniture Industries........... 1,500 38,625
Chris Craft Industries................. (a) 1,850 79,087
Ethan Allen Interiors.................. (a) 1,200 31,200
Juno Lighting.......................... 4,500 66,656
Kaufman & Broad Home................... 7,000 98,875
La-Z Boy Chair......................... 1,500 44,438
O'Sullivan Industries Holdings......... (a) 2,500 17,813
Polaris Industries..................... 2,000 69,750
Standard Products...................... 2,700 68,512
_____
582,268
_____
CONSUMER
NON-DURABLES-6.2% Alberto-Culver, Cl. A.................. 2,000 67,500
Bally Gaming International............. (a) 4,900 36,750
Fieldcrest Cannon...................... (a) 3,000 64,125
Graphic Industries..................... 3,000 33,000
Guilford Mills......................... 2,800 67,900
Hollinger International, Cl. A......... 5,900 70,063
DREYFUS SMALL COMPANY VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
CONSUMER NON-DURABLES
(CONTINUED) International Specialty Products..... 4,500 $ 56,250
U.S. Industries...................... 4,400 92,400
Westpoint Stevens.................... (a) 3,000 63,000
_____
550,988
_____
CONSUMER SERVICES-14.6% Chancellor Broadcasting, Cl. A......... 4,000 102,000
Claire's Stores........................ 3,500 76,125
Fay's.................................. 5,000 43,125
Finish Line, Cl. A..................... (a) 4,000 83,000
International Family Entertainment, Cl. B (a) 3,000 45,750
Meyer (Fred)........................... (a) 3,100 89,125
Morningstar Group...................... (a) 5,000 50,000
Nash Finch............................. 2,500 43,750
Neiman Marcus Group.................... 2,500 60,000
Pier 1 Imports......................... 5,500 73,562
Red Lion Hotels........................ 3,600 79,200
SFX Broadcasting, Cl. A................ (a) 2,000 69,000
ShowBiz Pizza Time..................... (a) 7,000 152,250
Starter................................ (a) 5,000 48,125
True North Communications.............. 6,300 166,163
Waban.................................. (a) 2,600 63,700
York Group............................. 3,000 55,125
_____
1,300,000
_____
ENERGY-14.4% Aquila Gas Pipeline.................... 6,000 83,250
Arethusa (Off-Shore)................... 2,100 95,025
BW/IP.................................. 2,500 51,562
Carbo Ceramics......................... 9,000 193,500
Coflexip, A.D.R. ...................... 1,400 26,950
Cross Timbers Oil...................... 4,500 90,000
Dreco Energy Services, Cl. A........... (a) 2,000 50,500
Marine Drilling........................ (a) 2,500 24,688
NGC.................................... 2,232 33,480
Noble Drilling......................... (a) 1,800 27,000
Oceaneering International.............. (a) 4,000 63,000
Petroleum Geo-Services, A.D.R. ........ (a) 2,300 72,737
RPC.................................... (a) 7,000 80,500
Rowan.................................. (a) 5,000 73,750
Santa Fe Energy Resources.............. (a) 4,200 50,400
Stolt Comex Seaway, SA................. (a) 6,000 81,000
Swift Energy........................... (a) 5,100 79,050
Tuboscope Vetco International.......... (a) 8,100 105,300
_____
1,281,692
_____
DREYFUS SMALL COMPANY VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
FINANCIAL SERVICES-17.1% ALBANK Financial....................... 2,500 $ 66,875
Allmerica Property & Casualty Cos. .... 2,800 73,850
Astoria Financial...................... 500 26,625
Bay View Capital....................... 3,000 99,000
Bell Bancorp........................... 2,500 93,125
Berkley (W.R.)......................... 1,200 51,600
Citizens............................... 3,600 70,200
City National.......................... 4,000 56,500
Community Bank Systems................. 2,300 72,450
Downey Financial....................... 3,045 65,848
First Palm Beach Bancorp............... 2,600 55,900
First Savings Bank of Washington Bancorp 3,000 45,375
First USA Paymentech................... 500 21,750
FirstFed Financial..................... 3,000 48,375
Fleet Financial Group.................. 1,713 73,659
Fleet Financial Group (warrants)....... (a) 224 2,492
Flushing Financial..................... 4,000 63,000
GCR Holdings........................... 1,000 25,500
Glendale Federal Bank FSB.............. (a) 5,000 87,500
Greater New York Savings Bank.......... (a) 5,200 57,850
Guarantee Life Cos. ................... 5,500 94,188
Home Financial......................... 3,600 49,950
Klamath First Bancorp.................. 5,000 68,750
MLF Bancorp............................ 1,700 41,012
PXRE................................... 1,400 35,700
Security-Connecticut................... 500 13,125
Standard Financial..................... 2,400 35,700
Transnational Re, Cl. A................ 1,200 25,200
_____
1,521,099
_____
HEALTH CARE-2.2% Arterial Vascular Engineering.......... 500 22,000
Block Drug, Cl. A (non-voting)......... 1,030 38,883
Maxxim Medical......................... (a) 4,000 71,000
SpaceLabs Medical...................... (a) 1,500 33,375
Sterling Healthcare Group.............. (a) 2,000 34,500
_____
199,758
_____
TECHNOLOGY-16.1% Advanced Energy Industries............. 4,000 35,000
Berg Electronics....................... 4,100 109,162
Caere.................................. (a) 8,600 82,775
Crosscomm.............................. (a) 5,000 52,500
Data General........................... (a) 3,000 46,125
Dynatech............................... (a) 4,000 103,000
Egghead................................ (a) 2,500 24,375
Forte Software......................... 500 30,875
DREYFUS SMALL COMPANY VALUE FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
TECHNOLOGY (CONTINUED) HMT Technology....................... 9,000 $ 199,125
Mentor Graphics...................... (a) 5,544 88,704
Metatec, Cl. A....................... (a) 4,000 48,500
Micro Linear......................... (a) 4,000 47,500
Polycom.............................. 4,000 35,500
Quickturn Design System.............. (a) 5,600 82,600
Segue Software....................... 500 14,750
Sequent Computer Systems............. (a) 3,000 43,875
Symantec............................. (a) 10,000 161,250
ThermoQuest.......................... 500 8,250
Truevision........................... (a) 8,100 68,850
Viewlogic Systems.................... (a) 6,000 82,500
Xircom............................... (a) 4,600 74,175
_____
1,439,391
_____
TRANSPORTATION-4.7% American Freightways................... (a) 4,000 60,500
Cronos Group........................... 3,000 26,250
Harper Group........................... 5,500 106,563
Interpool.............................. 3,400 61,200
Sea Containers, Cl. A.................. 2,500 46,875
Stolt-Nielsen, SA...................... 2,000 41,094
TNT Freightways........................ 1,400 31,675
Werner Enterprises..................... 2,000 48,500
_____
422,657
_____
TOTAL COMMON STOCKS
(cost $7,752,247).................... $8,610,378
=====
PRINCIPAL
SHORT-TERM INVESTMENTS-8.9% AMOUNT
______
U.S. TREASURY BILLS; 4.95%, 7/5/96 (cost $794,832)............(b) $ 802,000 $ 794,798
=====
TOTAL INVESTMENTS (cost $8,547,079)......................................... 105.5% $9,405,176
====== =====
LIABILITIES, LESS CASH AND RECEIVABLES...................................... (5.5%) $ (487,898)
====== =====
NET ASSETS.................................................................. 100.0% $8,917,278
====== =====
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Partially held by broker as collateral for open short positions.
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
DREYFUS SMALL COMPANY VALUE FUND
STATEMENT OF SECURITIES SOLD SHORT APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS SHARES VALUE
_____ _____
<S> <C> <C>
ACX Technologies............................................................ 2,000 $ 38,750
Champion Industries......................................................... 1,375 25,437
Electronics for Imaging..................................................... 400 24,400
Fritz Cos................................................................... 2,070 76,073
Olympic Financial........................................................... 1,800 40,050
Presstek.................................................................... 1,000 138,750
Quanex...................................................................... 2,700 59,400
_____
TOTAL SECURITIES SOLD SHORT
(proceeds $235,998)..................................................... $402,860
=====
</TABLE>
See independent accountants' review report and notes to financial statments.
<TABLE>
DREYFUS SMALL COMPANY VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $8,547,079)-see statement....................................... $9,405,176
Cash.................................................................... 154,155
Receivable from brokers for proceeds on securities sold short........... 235,998
Receivable for investment securities sold............................... 192,774
Dividends and interest receivable....................................... 1,746
Prepaid expenses........................................................ 16,290
_____
10,006,139
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 30,273
Due to Distributor...................................................... 1,708
Securities sold short, at value
(proceeds $235,998)-see statement..................................... 402,860
Payable for investment securities purchased............................. 394,592
Payable for Common Stock redeemed....................................... 241,271
Accrued expenses........................................................ 18,157 1,088,861
____ _____
NET ASSETS.................................................................. $8,917,278
=====
REPRESENTED BY:
Paid-in capital......................................................... $6,885,818
Accumulated undistributed investment income-net......................... 66,300
Accumulated undistributed net realized gain on investments,
securities sold short and foreign currency transactions............... 1,273,925
Accumulated net unrealized appreciation on investments and
securities sold short-Note 4(b)....................................... 691,235
_____
NET ASSETS at value applicable to 539,156 outstanding shares of
Common Stock, equivalent to $16.54 per share
(100 million shares of $.001 par value authorized)...................... $8,917,278
=====
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
DREYFUS SMALL COMPANY VALUE FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $17 foreign taxes withheld at source).......... $ 99,567
Interest.............................................................. 24,508
______
TOTAL INCOME.................................................... $ 124,075
EXPENSES:
Management fee-Note 3(a).............................................. 27,138
Shareholder servicing costs-Note 3(b)................................. 10,920
Custodian fees........................................................ 6,302
Prospectus and shareholders' reports.................................. 5,971
Registration fees..................................................... 5,204
Organization expenses................................................. 2,800
Directors' fees and expenses-Note 3(c)................................ 1,917
Dividends on securities sold short.................................... 1,136
Professional fees..................................................... 968
Interest-Note 2....................................................... 190
Miscellaneous......................................................... 916
______
TOTAL EXPENSES.................................................. 63,462
Less-reduction in management fee
due to undertaking-Note 3(a)...................................... 16,153
______
NET EXPENSES.................................................... 47,309
______
INVESTMENT INCOME-NET........................................... 76,766
______
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on investments-Note 4(a):
Long transactions (including foreign currency transactions)........... $1,329,248
Short sale transactions............................................... (39,299)
______
NET REALIZED GAIN..................................................... 1,289,949
Net unrealized appreciation on investments and
securities sold short................................................. 445,443
______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 1,735,392
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,812,158
=====
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
DREYFUS SMALL COMPANY VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1996
1995 (UNAUDITED)
______ __________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................... $ 44,644 $ 76,766
Net realized gain on investments........................................ 464,856 1,289,949
Net unrealized appreciation on investments for the period............... 601,439 445,443
_____ _____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 1,110,939 1,812,158
_____ _____
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (137,132) (41,124)
Net realized gain on investments........................................ (220,243) (461,510)
_____ _____
TOTAL DIVIDENDS....................................................... (357,375) (502,634)
_____ _____
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 343,498 1,375,886
Dividends reinvested.................................................... 357,374 502,014
Cost of shares redeemed................................................. (216,275) (674,098)
_____ _____
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................ 484,597 1,203,802
_____ _____
TOTAL INCREASE IN NET ASSETS...................................... 1,238,161 2,513,326
NET ASSETS:
Beginning of period..................................................... 5,165,791 6,403,952
_____ _____
End of period (including undistributed investment income-net
of $30,658 in 1995 and $66,300 in 1996)............................... $6,403,952 $8,917,278
===== =====
SHARES SHARES
_____ _____
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 27,757 88,962
Shares issued for dividends reinvested.................................. 31,966 35,629
Shares redeemed......................................................... (17,844) (42,824)
_____ _____
NET INCREASE IN SHARES OUTSTANDING.................................... 41,879 81,767
===== =====
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS SMALL COMPANY VALUE FUND
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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
SIX MONTHS ENDED
YEAR ENDED OCTOBER 31, APRIL 30, 1996
__________________________
PER SHARE DATA: 1994(1) 1995 (UNAUDITED)
____ ____ ______
<S> <C> <C> <C>
Net asset value, beginning of period....................... $12.50 $12.43 $14.00
___ ___ ___
INVESTMENT OPERATIONS:
Investment income-net...................................... .30 .10 .15
Net realized and unrealized gain (loss)
on investments........................................... (.37) 2.33 3.49
___ ___ ___
TOTAL FROM INVESTMENT OPERATIONS......................... (.07) 2.43 3.64
___ ___ ___
DISTRIBUTIONS:
Dividends from investment income-net....................... - (.33) (.09)
Dividends from net realized gain
on investments........................................... - (.53) (1.01)
___ ___ ___
TOTAL DISTRIBUTIONS...................................... - (.86) (1.10)
___ ___ ___
Net asset value, end of period............................. $12.43 $14.00 $16.54
=== === ===
TOTAL INVESTMENT RETURN........................................ (.56%)(2) 21.30% 27.37%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to
average net assets....................................... - .84% .63%(2)
Ratio of interest expense and dividends on
securities sold short to average net assets.............. .01%(2) .07% .02%(2)
Ratio of net investment income to
average net assets....................................... 2.39%(2) .79% 1.05%(2)
Decrease reflected in above expense ratios
due to undertakings by Dreyfus........................... 2.07%(2) 1.80% .22%(2)
Portfolio Turnover Rate................................ .... 219.63%(2) 161.01% 133.23%(2)
Average commission rate paid(3)............................ - - $.0511
Net Assets, end of period (000's omitted)................. $5,166 $6,404 $8,917
(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
(2) Not annualized.
(3) For fiscal years beginning on or after November 1, 1995, the Fund is
required to disclose its average commission rate paid per share for
purchases and sales of investment securities.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS SMALL COMPANY 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 Small Company Value Fund (the
"Fund"). The Fund's investment objective is capital appreciation. The Dreyfus
Corporation ("Dreyfus") serves as the Fund's investment adviser. Dreyfus is a
direct subsidiary of Mellon Bank, N.A. ("Mellon"). The Boston Company Asset
Management, Inc. ("TBC Asset Management"), an indirect subsidiary of Mellon
and an affiliate of Dreyfus, serves as the Fund's sub-investment adviser.
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.
As of April 30, 1996, Major Trading Corporation, a subsidiary of Mellon
Bank Investments Corporation, the parent company of which is Mellon Bank
Corporation, held 473,473 shares of the Fund.
The Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all
series are allocated among them on a pro rata basis.
(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 the 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 amount 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 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.
(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.
DREYFUS SMALL COMPANY VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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 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 Fund 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 April 30, 1996, there were no outstanding borrowings under the line of
credit. The average daily amount of short-term debt outstanding during the
six months ended April 30, 1996 was approximately $6,044, with a related
weighted average annualized interest rate of 6.33%. The maximum amount of
such debt outstanding at any time during the six months ended April 30, 1996,
was $300,000.
NOTE 3-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER TRANSAC
TIONS 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 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
November 1, 1995 through October 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 1.25 of 1% of the value of the Fund's average
daily net assets. The reduction in management fee, pursuant to the
undertaking, amounted to $16,153 for the six months ended April 30, 1996.
The undertaking may be extended, modified or terminated by Dreyfus,
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 value of the Fund's average daily net assets and is
payable monthly by Dreyfus.
DREYFUS SMALL COMPANY VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(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 (a securities dealer,
financial institution or other industry professional) in respect of these
services. The Distributor determines the amounts to be paid to Service
Agents. During the six months ended April 30, 1996, the Fund was charged an
aggregate of $9,046 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for
providing personnel and facilities to perform transfer agency services for
the Fund. Such compensation amounted to $250 for the period from December 1,
1995 through April 30, 1996.
Effective May 10, 1996, the Fund entered into a Custody Agreement with
Mellon to provide custodial services for the Fund.
(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 4-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities
and securities sold short, excluding short-term securities, during the six
months ended April 30, 1996 is summarized as follows:
<TABLE>
PURCHASES SALES
________ ________
<S> <C> <C>
Long transactions................................................ $ 9,962,920 $ 9,015,534
Short sale transactions.......................................... 528,870 377,194
_______ _______
TOTAL.......................................................... $10,491,790 $ 9,392,728
======= =======
</TABLE>
The Fund is engaged in short-selling which obligates the Fund to replace
the security borrowed by purchasing the security at current market value.
The Fund would incur a loss if the price of the security increases between
the date of the short sale and the date on which the Fund replaces the
borrowed security. The Fund would realize a gain if the price of the security
declines between those dates. Until the Fund replaces the borrowed security,
the Fund 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 April 30, 1996 and their related
market values and proceeds are set forth in the Statement of Securities Sold
Short.
(B) At April 30, 1996, accumulated net unrealized appreciation on
investments was $691,235, consisting of $1,002,463 gross unrealized
appreciation and $311,228 gross unrealized depreciation.
At April 30, 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 SMALL COMPANY VALUE FUND
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS SMALL COMPANY VALUE FUND
We have reviewed the accompanying statement of assets and liabilities,
including the statements of investments and securities sold short, of Dreyfus
Small Company Value Fund (one of the Funds constituting Dreyfus Growth and
Value Funds, Inc.) as of April 30, 1996, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended April 30, 1996. These financial statements and financial
highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
October 31, 1995 and financial highlights for each of the two years in the
period ended October 31, 1995 and in our report dated December 7, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst and Young LLP signature logo]
New York, New York
May 30, 1996
[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
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
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. 253SA964
[Dreyfus logo]
Small Company
Value Fund
Semi-Annual
Report
April 30, 1996
