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DREYFUS
Large Company
Growth Fund
Semi-Annual
Report
April 30, 1997
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Dreyfus Large Company Growth Fund
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Letter to Shareholders
Dear Shareholder:
Dreyfus Large Company Growth Fund posted a negative return of -2.90% for its
semi-annual reporting period ended April 30, 1997.* For the same period, the
Standard & Poor's 500 Composite Stock Index had a total return of 14.71%.**
ECONOMIC REVIEW
The Federal Reserve Board (the "Fed") decision in March to tighten credit
already has been vindicated by the reported 5.6% rise in first quarter real
Gross Domestic Product and by the drop to 4.9% in April's unemployment rate.
Generally, the economic debate is now splintered into 1) those who believe that
softer incoming economic data for the second quarter can keep Fed policy on
hold, and 2) those who believe the economy is fundamentally too strong,
warranting higher rates irrespective of short-term economic fluctuations. Views
on the risk of inflation clearly distinguish these camps. To date, a strong
dollar has helped mute price inflation, preventing a follow-through from rising
wages. Market interest rates are likewise treading water until the policy
outlook becomes clearer.
First quarter real GDP grew an annualized 5.6% on the quarter and by 4.0%
since the first quarter of 1996, both growth rates unseen since 1987/88.
Virtually every major economic sector contributed positively to growth. In the
early evidence for the second quarter, rising new orders portend continued
strength in exports and capital spending. By contrast, retail spending weakened
in April and the housing sector slowed. However, real disposable income grew
3.8% in the last year, a pace which, if sustained, could support the upward
cycle in consumer spending, while mortgage rates have not yet risen
substantially.
Alongside the recent evidence of slowing consumer demand is the report of the
drop in unemployment in April. With this, the labor market is becoming tight.
This has raised fears of future inflation even though actual inflation remains
modest and despite signs of a slower second quarter economy. Hence, bond yields
remain down only slightly from their recent highs, largely ignoring the bullish
news of a Washington agreement to balance the Federal budget. Short-term rates
still contain some built-in expectations for another Fed rate hike in coming
weeks.
If inflation should stay subdued, then the larger risk from the combination
of slower economic growth and a tightening labor market is to corporate
profits. Through the first quarter, however, profits continued to surprise on
the upside.
The economy is now embarked on the seventh year for this business cycle.
Economic growth is proving stronger than seen since the late 1980s while
inflation is still subdued. More Fed tightening would indicate a willingness to
err on the side of caution and would thus help sustain the expansion.
MARKET OVERVIEW
Stock market activity during the six-month period under review included two
very different phases. First, the market rallied for three months into late
January, as interest rates remained stable, reversing the summertime 1996 fear
of sharply rising rates. At the same time, moderate economic growth and solid
earnings growth continued. During February, March and early April, however,
stronger economic growth and fears of higher future inflation led to another
period of rising interest rates which coincided with another sharp decline in
share prices similar to the correction in mid-1996.
As April progressed, some evidence of slower economic growth contributed to
a modest decline in interest rates. As March quarterly earnings reports were
released, the optimistic earnings growth outlook fostered the start of a strong
stock market rally during the April-May period, bringing many market indices to
new record high levels. The recent market rebound has begun to reverse the
underperformance of the volatile technology, health care and financial service
stocks which had dropped more than the market during the February to early
April market decline when interest rates were rising. As market sentiment
improved during April, the combination of now-stable interest rates and solid
earnings growth over the intermediate term maintained a bullish stock market
environment.
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PORTFOLIO FOCUS
The portfolio's heaviest weighting is in technology, a sector which has
tended to outperform during the sustained market rallies but sometimes sharply
underperforms as during the volatile decline in February and March. The Fund's
heavy weighting in finance also penalized performance during the period of
rising interest rates. The upside market reversal that began in April was led
by technology and finance stocks, which contributed to improved portfolio
performance for that period. The Fund continues to hold only a small cash
position.
Technology, finance, health care and consumer growth holdings represent
over 75% of the Fund's assets. The eleven largest positions represent 50% of
the Fund's assets and reflect strong 1997-1998 earnings growth expectations in
selected technology (Intel, McAfee Associates, Applied Materials, Perkin-Elmer,
Gateway 2000), health care (Teva Pharmaceutical Industries, A.D.R.), financial
(Conseco, American States Financial), consumer (Sunbeam), and industrial
companies (AES Corporation, Crompton & Knowles).
Please know that we appreciate your investment in Dreyfus Large Company
Growth Fund.
Sincerely,
Michael Schonberg
Portfolio Manager
May 21, 1997
New York, NY
* 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
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market perfomance.
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Dreyfus Large Company Growth Fund
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Statement of Investments April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks--100.2% Shares Value
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<S> <C> <C>
Consumer Durables--4.1% Sunbeam.................................. 13,000 $ 412,750
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Consumer Non-Durables--7.4% Coca-Cola................................ 4,000 254,500
Tommy Hilfiger........................(a) 8,000 318,000
Warnaco Group, Cl. A..................... 6,000 171,000
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743,500
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Consumer Services--6.5% Host Marriott.........................(a) 15,000 260,625
Sun International Hotels..............(a) 13,000 394,875
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655,500
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Electronic Technology--22.1% Applied Materials.....................(a) 8,000 439,000
Cisco Systems.........................(a) 6,000 310,500
Gateway 2000..........................(a) 7,500 411,563
Hewlett-Packard.......................... 2,000 105,000
Intel.................................... 3,500 535,937
Perkin-Elmer............................. 6,000 435,750
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2,237,750
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Finance--18.8% American International Group............. 1,000 128,500
American States Financial................ 14,000 469,000
Associates First Capital, Cl. A.......... 2,500 128,125
Conseco.................................. 12,000 496,500
Green Tree Financial..................... 11,000 325,875
Starwood Lodging......................... 9,000 346,500
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1,894,500
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Health Technology--13.7% Biogen................................(a) 8,000 256,000
Interneuron Pharmaceuticals...........(a) 20,000 262,500
Mylan Laboratories....................... 30,000 360,000
Teva Pharmaceutical Industries, A.D.R. .. 10,000 507,500
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1,386,000
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Industrial Services--8.3% AES...................................(a) 7,000 456,750
ENSCO International...................(a) 8,000 380,000
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836,750
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Process Industries--4.3% Crompton & Knowles....................... 20,000 435,000
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Producer Manufacturing--4.1% Corporate Express.....................(a) 30,000 300,000
General Electric......................... 1,000 110,875
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410,875
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</TABLE>
<TABLE>
<CAPTION>
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<Dreyfus Large Company Growth Fund
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Statement of Investments April 30, 1997 (Unaudited)
Common Stocks (Continued) Shares Value
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<S> <C> <C> <C>
Retail--2.3% Nine West Group.......................(a) 6,000 $ 237,750
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Technology Services--8.6% McAfee Associates.....................(a) 9,000 501,750
Microsoft.............................(a) 3,000 364,500
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866,250
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TOTAL INVESTMENTS (cost $8,821,927)............................................. 100.2% $10,116,625
====== ===========
LIABILITIES, LESS CASH AND RECEIVABLES............................................. (.2%) $ (15,817)
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NET ASSETS....................................................................... 100.0% $10,100,808
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<FN>
Notes to Statement of Investments:
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(a) Non-income producing.
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
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Dreyfus Large Company Growth Fund
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Statement of Assets and Liabilities April 30, 1997 (Unaudited)
Cost Value
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<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments.. $8,821,927 $10,116,625
Receivable for investment securities sold............... 219,943
Receivable for shares of Common Stock subscribed........ 2,500
Dividends and interest receivable....................... 2,494
Prepaid expenses....................................... 25,779
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10,367,341
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LIABILITIES: Due to The Dreyfus Corporation and affiliates........... 6,110
Due to Distributor...................................... 2,015
Cash overdraft due to Custodian......................... 36,053
Payable for investment securities purchased............. 206,609
Accrued expenses........................................ 15,746
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266,533
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NET ASSETS...................................................................... $10,100,808
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REPRESENTED BY: Paid-in capital........................................ $ 8,634,555
Accumulated investment (loss).......................... (37,857)
Accumulated net realized gain (loss) on investments.... 209,412
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4............................... 1,294,698
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NET ASSETS..................................................................... $10,100,808
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SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized)................. 617,304
NET ASSET VALUE, offering and redemption price per share........................ $16.36
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</TABLE>
See notes to financial statements.
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<TABLE>
<CAPTION>
Dreyfus Large Company Growth Fund
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Statement of Operations Six Months Ended April 30, 1997 (Unaudited)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $345 foreign taxes
withheld at source)............................ $ 17,404
Interest......................................... 6,908
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Total Income................................ $ 24,312
EXPENSES: Management fee--Note 3(a)......................... 37,111
Shareholder servicing costs--Note 3(b)............ 16,549
Auditing fees.................................... 13,773
Registration fees................................ 10,110
Prospectus and shareholders' reports............ 3,999
Custodian fees--Note 3(b)......................... 2,151
Legal fees....................................... 1,330
Directors' fees and expenses--Note 3(c).......... 987
Miscellaneous.................................... 3,842
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Total Expenses.............................. 89,852
Less--reduction in management fee due to
undertaking--Note 3(a).......................... (27,683)
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Net Expenses................................ 62,169
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INVESTMENT (LOSS)............................................................. (37,857)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments.......... $ 212,358
Net unrealized appreciation (depreciation) on investments (511,125)
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NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS......................... (298,767)
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NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $(336,624)
=========
</TABLE>
See notes to financial statements.
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<TABLE>
<CAPTION>
Dreyfus Large Company Growth Fund
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Statement of Changes in Net Assets
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
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<S> <C> <C>
OPERATIONS:
Investment (loss).................................................... $ (37,857) $ (41,852)
Net realized gain (loss) on investments.............................. 212,358 733,358
Net unrealized appreciation (depreciation) on investments............ (511,125) 807,517
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Net Increase (Decrease) in Net Assets Resulting from Operations.. (336,624) 1,499,023
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DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................ -- (19,280)
Net realized gain on investments..................................... (676,051) --
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Total Dividends.................................................. (676,051) (19,280)
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CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 2,486,710 1,970,510
Dividends reinvested................................................. 674,094 19,280
Cost of shares redeemed.............................................. (1,119,893) (584,373)
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Increase (Decrease) in Net Assets from Capital Stock Transactions 2,040,911 1,405,417
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Total Increase (Decrease) in Net Assets........................ 1,028,236 2,885,160
NET ASSETS:
Beginning of Period.................................................. 9,072,572 6,187,412
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End of Period........................................................ $10,100,808 $ 9,072,572
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Undistributed investment (loss)........................................ $ (37,857) --
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Shares Shares
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CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 142,076 114,424
Shares issued for dividends reinvested............................... 41,078 1,246
Shares redeemed...................................................... (63,867) (35,949)
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Net Increase (Decrease) in Shares Outstanding.................... 119,287 79,721
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</TABLE>
See notes to financial statements.
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Dreyfus Large Company Growth Fund
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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>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1997 ---------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994(1)
----------- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................. $18.22 $14.79 $13.05 $12.50
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Investment Operations:
Investment income (loss)--net........................ (.06) (.08) .07 .17
Net realized and unrealized gain (loss)
on investments.................................... (.46) 3.56 1.88 .38
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Total from Investment Operations..................... (.52) 3.48 1.95 .55
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Distributions:
Dividends from investment income--net................. -- (.05) (.21) --
Dividends from net realized gain on investments...... (1.34) -- -- --
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Total Distributions.................................. (1.34) (.05) (.21) --
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Net asset value, end of period....................... $16.36 $18.22 $14.79 $13.05
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TOTAL INVESTMENT RETURN................................. (2.90%)(2) 23.55% 15.29% 4.40%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. .62%(2) 1.26% .85% --
Ratio of net investment income (loss)
to average net assets............................. (.38%)(2) (.56%) .54% 1.37%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager................ .28%(2) .32% 1.69% 1.97%(2)
Portfolio Turnover Rate.............................. 94.80%(2) 153.78% 86.59% 12.08%(2)
Average commission rate paid(3)...................... $.0531 $.0521 -- --
Net Assets, end of period (000's Omitted)............ $10,101 $9,073 $6,187 $5,281
<FN>
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(1) From December 29, 1993 (commencement of operations) to October 31, 1994.
`(2) Not annualized.
(3) For fiscal years beginning 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 notes to financial statements.
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Dreyfus Large Company Growth Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Large Company Growth Fund (the "Fund") is a series of Dreyfus
Growth and Value Funds, Inc. (the "Company") which 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 Fund. The Fund's investment objective is capital
appreciation. The Dreyfus Corporation ("Manager") serves as the Fund's
investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
("Mellon"), which is a wholly-owned subsidiary of Mellon Bank Corporation.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the
Fund's shares, which are sold to the public without a sales charge.
As of April 30, 1997, MBIC Investment Corp., an indirect subsidiary of
Mellon Bank Corporation, held 443,490 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 funds are allocated
among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: 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.
(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 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.
(d) 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.
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Dreyfus Large Company Growth Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 2--Bank Line of Credit:
The Fund may borrow up to $2 million for leveraging purposes under a
short-term unsecured line of credit and participates with other Dreyfus-managed
funds in a $100 million unsecured line of credit primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions.
Interest is charged to the Fund at rates which are related to the Federal Funds
rate in effect at the time of borrowings. For the period ended April 30, 1997,
the Fund did not borrow under the lines of credit.
NOTE 3--Management Fee and Other Transactions with Affiliates:
(a) Pursuant to a management agreement with the Manager, 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 Manager has undertaken from
November 1, 1996 through October 31, 1997 to reduce the management fee paid by
the Fund, to the extent that the Fund's aggregate expenses, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceed an annual
rate of 1.25% of the value of the Fund's average daily net assets. The reduction
in management fee, pursuant to the undertaking, amounted to $27,683 during the
period ended April 30, 1997.
(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 period ended April 30, 1997, the Fund was charged an aggregate of
$12,370 pursuant to the Shareholder Services Plan.
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 $1,328 during the period ended April 30, 1997.
The Fund compensates Mellon under a custody agreement to provide custodial
services for the Fund. During the period ended April 30, 1997, $2,151 was
charged by Mellon pursuant to the custody agreement.
(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.
(d) Effective March 3, 1997, a 1% redemption fee is charged on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to a
specified effective date and the redemption or exchange occurs less than fifteen
days following the date of issuance.
(e) Brokerage commissions: During the period ended April 30, 1997, the Fund
incurred total brokerage commissions of $18,828, of which $2,967 was paid to
Dreyfus Investment Services Corporation, a subsidiary of Mellon.
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Dreyfus Large Company Growth Fund
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997,
amounted to $10,705,098 and $9,132,918, respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
was $1,294,698, consisting of $1,871,292 gross unrealized appreciation
and $576,594 gross unrealized depreciation.
At April 30, 1997, 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).
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[LOGO]
DREYFUS
Dreyfus Large Company
Growth Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 250SA974
