Aggressive Growth
Fund
Annual Report
August 31, 1998
<PAGE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
Dreyfus Aggressive Growth Fund (a Dreyfus Growth and Value Fund) completed its
latest fiscal year August 31, 1998. It so happened that August 31, 1998 was the
date of one of the steepest drops in stock price averages in recent years.
Inevitably, this was a factor in the Fund's annual performance.
The Fund's total return for the 12 months ended August 31, 1998 was -57.30%,*
compared with a total return of 8.12% for the Standard & Poor's 500 Composite
Stock Price Index.**
As shareowners were informed last spring, I have been managing the Fund since
early April, 1998. I took over at a time when small capitalization stocks, which
were the Fund's principal holdings at that time, had already started to weaken.
Since then, I have changed most of the Fund's holdings, placing emphasis on
mid-cap stocks. However, in the declining market we have experienced, the new
holdings have not as yet had a chance to show how they could perform in more
favorable market conditions.
Economic Review
So far in 1998, the main regions of the world have had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year. The U.S. economy cooled enough over the months that the Fed decided to
stand pat. Evidence of economic cooling continued to accumulate and worries
about the world economy intensified. World economic weakness has shifted
expectations towards monetary easing. After many years of subpar economic
growth, continental Europe moved into a better economic expansion. Unlike the
U.S., Europe has substantial excess capacity of productive plant and labor. In
Asia, weak economies were pervasive as a result of the Asian financial crisis.
The Latin American economies weakened as the financial stresses spread
throughout that region.
A main influence on the U.S. economy this year was the foreign financial
crisis and cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The fall
in inflation helped the consumer sector as more of the growth in consumer income
was left over after inflation to buy goods and services. Consumers benefited
from a combination of good growth in income after inflation, a strong labor
market and past increases in the prices of assets they owned.
The negative effect of Asian weakness was directed towards the industrial
sector more than the consumer sector. Corporate profits weakened, especially in
sectors sensitive to Asia such as world-traded commodities (oil, metals and
paper) and exporters. One result of the industrial weakness was to cool off a
U.S. economy that had been growing rapidly.
The major change in the economic outlook over recent months has been a
downward shift in expectations for world economic growth. A credit crunch
developed in emerging countries and former communist countries, sharply reducing
the economic outlook for Asia and Latin America as well as for commodity
exporting countries throughout the world. The effect on Europe and the U.S. has
been to lower expectations of profit growth and drive down bond yields.
Market sentiment has shifted towards expectations of monetary ease in the U.S.
and other industrial countries as the evidence of a weaker world economy has
accumulated. The prospects for world economic weakness and monetary ease in the
major countries will be powerfully changed by whether foreign financial stresses
calm down or intensify in the coming months. There appears to be a shift in the
priorities of key policy makers from fighting potential inflation to
restimulating future world economic growth.
<PAGE>
Market Overview
The 12 months ended August 31, 1998 encompassed some very different market
phases with stock market strength during much of the period followed by a sharp
decline towards the end, especially in August 1998, the final month of the
fiscal year. Over the 12-month period, the total return on the Standard and
Poor' s 500 Composite Stock Price Index was 8.12% despite a negative return of
- -14.45% in August 1998. Returns on mid-cap and small-cap stock indices tended to
be weaker, with a negative total return on small-cap indices.
Three key trends influenced stock market behavior during the fiscal year.
First, the Federal Reserve kept the Federal Funds rate flat at 5.5% for the
entire period. Sentiment shifted from expectations of a possible Fed Funds rate
increase to expectations of a cut by the end of the period. Second, weakness in
emerging country economies contributed to declining commodity prices and a drop
in long-term Treasury bond yields to multi-decade lows. Third, expectations for
corporate profits dropped, first in the sectors sensitive to Asian developments
such as oil, basic materials and exporters and then for a broader list of
stocks.
The trigger for the sharp decline in stocks at the end of the period appeared
to be the Russian default. This resulted in deepening concerns about weaker
economic growth and corporate profits. There were also global margin calls on
risky assets held by hedge funds and financial institutions. This raised the
cost of debt financing for many corporations and many emerging countries.
Expectations for economic activity in emerging countries in Asia and Latin
America shifted down sharply while expectations for U.S. corporate profits
weakened somewhat. Despite the fall in Treasury bond yields to multi-decade
lows, financial stocks led the summer sell-off due to concerns about financial
contagion among emerging countries and potential loan losses by financial
institutions.
During the past year, investors had more confidence in the prospect for strong
persistent earnings growth for the largest capitalized growth companies than for
the broad market. Value stocks, which often have greater cyclical sensitivity to
earnings fluctuations, lagged behind these stocks. In addition, many of the
financial stocks which fall into the value category fell sharply following the
Russian default in mid-July 1998.
The fiscal year ended August 1998 was characterized by very different
performances of the various market sectors. As stated above, the largest cap
growth stocks did best, followed by large-cap stocks in general with mid-cap and
small-cap stocks lagging behind. For example, the total return for the fiscal
year on the Russell 1000 Index with a heavy large-cap representation was 6.10%,
with the Russell 1000 Growth Index returning 8.26% while the Russell 1000 Value
Index returned 3.89% . The return on the Russell Midcap Index was -6.69% while
the small-cap Russell 2000 Index return was -19.40%.
Portfolio Focus
The dominant factor in the Fund's total return over the past year has been the
dramatic underperformance of small and mid capitalization stocks relative to the
S& P 500 Index. As investors shifted into large cap issues, which they believed
offered less risk, the smaller and medium cap stocks came under added pressure.
Small and mid-cap growth stocks, which comprised most of the Fund's holdings,
were particularly hard hit as the market decline continued.
During the first three quarters of the fiscal year, the Fund's investment
focus centered on small capitalization stocks. In April, when I was appointed
portfolio manager, I began shifting, under then current market conditions, the
Fund's emphasis to mid-cap stocks. However, this group also fell into a decline,
nearly as much as the small cap issues.
<PAGE>
In general, my investment style is grounded in the firm belief that a
diversified portfolio of rapidly growing companies with sustainable growth
prospects will outperform the market averages over a period of years through
various market conditions. Currently, the Fund is concentrating on mid-cap
companies that range from $1 to $5 billion in asset size. I use a "bottom up"
approach, which means that I focus on individual stock selection before
considering economic trends. I also factor into the mix the Fund's sector
weightings versus its peer group.
More specifically, when evaluating new prospects for the Fund, I typically
screen for companies with innovative products and services and earnings growth
rates of approximately 20% or better. When such companies are identified, I
evaluate the sustainability of growth vis-a-vis the company's competitive
position within its industry. I seek to maintain close relationships with
company management, often meeting with them directly to evaluate their ability
to manage and deliver high levels of growth.
I generally sell securities from the Fund when there is an expected or actual
change in growth prospects, when valuation levels have become extreme or when I
believe there are superior alternative investments. During recent months I
repositioned the Fund by eliminating several poorly performing stocks, as well
as stocks where the risk of future disappointment was deemed to be high.
In addition, since April, approximately three quarters of the Fund's assets
have been invested in companies that are new to the Fund. Many of these
companies are in the mid-cap range, which I believe provided buying
opportunities due to the weakness in the mid-cap market this year. Some examples
of new investments included Nationwide Financial Services, Total Renal Care
Holdings, and Uniphase.
While the Fund is more diversified by sector and industry, having added
investments in financial services, commercial services, and consumer growth
companies, the median-market capitalization of the Fund has increased
substantially with aggressive growth remaining its focus. The Fund continues to
be designed for those investors with a tolerance for high risk and a long-term
investment horizon.
Thank you for remaining a valued Dreyfus shareholder. Please be assured that I
will continue to exert my best efforts on your behalf.
Sincerely,
[Paul A. LaRocco signature logo]
Paul A. LaRocco
Portfolio Manager
September 15, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC.--Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The Standard
& Poor's 500 Composite Stock Price Index is a widely accepted unmanaged index of
U.S. stock market performance.
<PAGE>
DREYFUS AGGRESSIVE GROWTH FUND AUGUST 31, 1998
- -----------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS AGGRESSIVE GROWTH
FUND AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A:
Dollars
$17,320
Standard & Poor's 500 Composite Stock Price Index*
$6,856
Dreyfus Aggressive Growth Fund
*Source: Lipper Analytical Services, Inc. ]
Average Annual Total Returns
- -----------------------------------------------------------------------------
One Year Ended From Inception (9/29/95)
August 31, 1998 to August 31, 1998
____________________ ___________________________
(57.30%) (12.13%)
- ---------------
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Aggressive Growth
Fund on 9/29/95 (Inception Date) to a $10,000 investment made in the Standard &
Poor' s 500 Composite Stock Price Index on that date. All dividends and capital
gain distributions are reinvested.
The Fund's performance shown in the line graph takes into account all applicable
fees and expenses. The Standard & Poor's 500 Composite Stock Price Index is a
widely accepted, unmanaged index of overall stock market performance which does
not take into account charges, fees and other expenses. Further information
relating to Fund performance, including expense reimbursements, if applicable,
is contained in the Financial Highlights section of the Prospectus and elsewhere
in this report.
<PAGE>
<TABLE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTSAUGUST 31, 1998
Common Stocks--97.8% Shares Value
- ------------------------------------------------------- ____________ ____________
<S> <C> <C>
Agriculture--.1% Eco Soil Systems. . . . . . . . . . . . . . . . . . 3,600 (a) $ 19,35
____________
Apparel--1.2% Jones Apparel Group . . . . . . . . . . . . . . . 11,400 (a) 220,875
Tommy Hilfiger . . . . . . . . . . . . . . . . . . 3,000 (a) 140,250
____________
361,125
____________
Banking--2.3% Downey Financial . . . . . . . . . . . . . . . . . 31,500 726,469
____________
Biotechnology--.8% Atlantic Pharmaceuticals . . . . . . . . . . . . . 100,000 (a) 250,000
____________
Business Services--12.4% Affiliated Computer Services, Cl. A . . . . . . . 10,000 (a) 326,875
Cambridge Technology Partners . . . . . . . . . . 13,075 (a) 424,937
Fiserv . . . . . . . . . . . . . . . . . . . . . . 20,500 (a) 799,500
Gartner Group, Cl. A . . . . . . . . . . . . . . . 14,000 (a) 323,750
Renaissance Worldwide . . . . . . . . . . . . . . 39,500 (a) 395,000
Sterling Commerce . . . . . . . . . . . . . . . . 19,000 (a) 627,000
SunGard Data Systems . . . . . . . . . . . . . . . 9,000 (a) 285,188
Young & Rubicam . . . . . . . . . . . . . . . . . 21,600 (a) 660,150
____________
3,842,400
____________
Chemicals--2.0% CCA Cos. . . . . . . . . . . . . . . . . . . . . . 315,675 631,350
____________
Computer Equipment--.7% Compaq Computer . . . . . . . . . . . . . . . . . 8,000 223,500
TSL Holdings . . . . . . . . . . . . . . . . . . . 10 (a) ------
____________
223,500
____________
Computer Products--2.0% Blyth Industries . . . . . . . . . . . . . . . . . 26,700 (a) 612,431
____________
Computer Software/Services--14.9% AXENT Technologies . . . . . . . . . . . . . . . . 42,700 (a) 667,187
Aspen Technology . . . . . . . . . . . . . . . . . 12,300 291,356
CBT Group, A.D.S. . . . . . . . . . . . . . . . . 10,225 (a) 480,575
Citrix Systems . . . . . . . . . . . . . . . . . . 3,000 (a) 172,875
Compuware . . . . . . . . . . . . . . . . . . . . 11,500 (a) 522,531
JDA Software Group . . . . . . . . . . . . . . . . 46,225 (a) 554,700
Microsoft . . . . . . . . . . . . . . . . . . . . 1,000 (a) 95,938
Network Associates . . . . . . . . . . . . . . . . 21,000 (a) 677,250
Patient Infosystems . . . . . . . . . . . . . . . 117,200 (a) 278,350
Saville Systems, A.D.S. . . . . . . . . . . . . . 44,000 (a) 720,500
Visio . . . . . . . . . . . . . . . . . . . . . . 8,000 (a) 168,000
____________
4,629,262
____________
Consumer Services--.7% Cendant . . . . . . . . . . . . . . . . . . . . . 18,000 (a) 208,125
____________
Electronics--.3% Image Processing Systems . . . . . . . . . . . . . 158,950 (a) 75,980
____________
Environmental Services--1.3% Waste Management . . . . . . . . . . . . . . . . . 9,000 397,125
____________
Financial Services--6.9% Associates First Capital, Cl. A . . . . . . . . . 11,000 650,375
FINOVA Group . . . . . . . . . . . . . . . . . . . 13,500 602,438
Nationwide Financial Services, Cl. A . . . . . . . 12,500 558,594
Resource America, Cl. A . . . . . . . . . . . . . 23,000 320,562
____________
2,131,969
____________
Healthcare Services--12.6% Cardinal Health . . . . . . . . . . . . . . . . . . 3,000 262,500
Concentra Managed Care . . . . . . . . . . . . . . 36,000 (a) 461,250
<PAGE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ____________ ____________
Healthcare Services (continued) HEALTHSOUTH . . . . . . . . . . . . . . . . . . . . 37,500 (a) $ 710,156
HemaCare . . . . . . . . . . . . . . . . . . . . . 313,175 (a) 107,654
Omega Orthodontics . . . . . . . . . . . . . . . . 50,275 (a) 58,130
Omega Orthodontics (Warrants) . . . . . . . . . . 66,250 (a) 9,316
OncorMed . . . . . . . . . . . . . . . . . . . . . 325,500 (a) 508,594
PAREXEL International . . . . . . . . . . . . . . 12,000 (a) 298,500
Quintiles Transnational . . . . . . . . . . . . . 16,175 (a) 578,256
Total Renal Care Holdings . . . . . . . . . . . . 48,500 (a) 921,500
____________
3,915,856
____________
Information Services--1.2% Chromatics Color Science International . . . . . . 118,500 (a) 359,203
____________
Insurance--2.0% Conseco . . . . . . . . . . . . . . . . . . . . . 22,521 622,143
____________
Leisure & Entertainment--6.7% American Classic Voyages . . . . . . . . . . . . . 150,600 2,089,575
____________
Manufacturing--1.6% Tyco International . . . . . . . . . . . . . . . . 9,000 499,500
____________
Medical Supplies--1.2% ONCOR . . . . . . . . . . . . . . . . . . . . . . 1,204,400 (a) 376,375
OnGard Systems . . . . . . . . . . . . . . . . . . 320,000 (a) ------
____________
376,375
____________
Mining & Metals--.9% STELAX Industries . . . . . . . . . . . . . . . . 767,025 (a) 276,129
____________
Oil Services--1.0% Halliburton . . . . . . . . . . . . . . . . . . . 7,500 199,219
Stolt Comex Seaway . . . . . . . . . . . . . . . . 12,000 99,000
____________
298,219
____________
Paper & Forest Products--.5% TST / Impreso . . . . . . . . . . . . . . . . . . 53,800 (a) 147,950
____________
Pharmaceuticals--4.5% Bentley Pharmaceuticals . . . . . . . . . . . . . 141,975 (a) 124,228
Medicis Pharmaceuticals, Cl. A . . . . . . . . . . 12,000 (a) 393,000
Mylan Laboratories . . . . . . . . . . . . . . . . 26,000 594,750
Teva Pharmaceuticals, A.D.R. . . . . . . . . . . . 6,000 214,875
Transcend Therapeutics . . . . . . . . . . . . . . 81,200 (a) 60,900
____________
1,387,753
____________
Publishing & Broadcasting--5.0% Applied Graphics Technologies . . . . . . . . . . 9,325 (a) 190,580
Cinar Films, Cl. B . . . . . . . . . . . . . . . . 46,000 761,875
MediaOne Group . . . . . . . . . . . . . . . . . . 14,000 (a) 574,000
Tele-Communications TCI Group, Cl. A . . . . . . . 1,009 (a) 33,297
____________
1,559,752
____________
Restaurants--3.6% CKE Restaurants . . . . . . . . . . . . . . . . . . 18,000 558,000
Outback Steakhouse . . . . . . . . . . . . . . . . 18,500 556,156
____________
1,114,156
____________
Retail--3.6% Intellicell . . . . . . . . . . . . . . . . . . . 55,775 (a) 13,944
Intellicell (Warrants) . . . . . . . . . . . . . . 76,250 (a) ------
K mart . . . . . . . . . . . . . . . . . . . . . . 6,000 76,500
Meyer (Fred) . . . . . . . . . . . . . . . . . . . 9,000 (a) 353,813
Pier 1 Imports . . . . . . . . . . . . . . . . . . 29,300 291,169
Rental Service . . . . . . . . . . . . . . . . . . 8,000 (a) 192,500
US Rentals . . . . . . . . . . . . . . . . . . . . 11,000 (a) 198,000
____________
1,125,926
____________
<PAGE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1998
Common Stocks (continued) Shares Value
- ------------------------------------------------------- ____________ ____________
Semiconductors & Equipment--4.1% Amkor Technology . . . . . . . . . . . . . . . . . 67,150 (a) $ 310,569
Uniphase . . . . . . . . . . . . . . . . . . . . . 11,500 (a) 459,281
Vitesse Semiconductor . . . . . . . . . . . . . . 18,000 (a) 488,250
____________
1,258,100
____________
Telecommunication Equipment--2.0% NewCom . . . . . . . . . . . . . . . . . . . . . . 52,450 (a) 321,256
NewCom (Warrants) . . . . . . . . . . . . . . . . 43,920 (a) 54,900
Premisys Communications . . . . . . . . . . . . . 3,750 (a) 31,875
Tellabs . . . . . . . . . . . . . . . . . . . . . 5,000 (a) 211,250
____________
619,281
____________
Telecommunication Services--1.7% MetroNet Communications, Cl. B . . . . . . . . . . 8,575 (a) 154,350
Pacific Gateway Exchange . . . . . . . . . . . . . 6,000 (a) 211,125
Winstar Communications . . . . . . . . . . . . . . 9,000 (a) 164,250
____________
529,725
____________
TOTAL COMMON STOCKS
(cost $57,247,856) . . . . . . . . . . . . . . $30,288,729
____________
Principal
Short-Term Investments--1.5% Amount
- ------------------------------------------------------------------------------------------ ____________
U.S. Treasury Bills: 4.83%, 10/22/98 . . . . . . . . . . . . . . . . . $ 24,000 $ 23,837
4.92%, 11/12/98 . . . . . . . . . . . . . . . . . 443,000 438,721
____________
TOTAL SHORT-TERM INVESTMENTS
(cost $462,477) . . . . . . . . . . . . . . . . $ 462,558
____________
TOTAL INVESTMENTS (cost $57,710,333) . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.3% $30,751,287
_______ ____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7% $ 217,074
_______ ____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $30,968,361
_______ ____________
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Non-income producing.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
</TABLE>
<TABLE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1998
Cost Value
____________ ____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $57,710,333 $30,751,287
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 52,090
Receivable for investment securities sold . . . . . . . . 261,430
Receivable for shares of Common Stock subscribed . . . . 11,700
Dividends receivable . . . . . . . . . . . . . . . . . . 3,749
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 26,572
____________
31,106,828
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 9,028
Due to Distributor . . . . . . . . . . . . . . . . . . . 8,312
Payable for investment securities purchased . . . . . . . 59,500
Payable for shares of Common Stock redeemed . . . . . . . 6,316
Accrued expenses . . . . . . . . . . . . . . . . . . . . 55,311
____________
138,467
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,968,361
____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $99,950,727
Accumulated net realized gain (loss) on investments . . . (42,023,320)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . (26,959,046)
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,968,361
____________
SHARES OUTSTANDING
(100 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED). . . . . . . . . . . . . . 3,615,521
NET ASSET VALUE, offering and redemption price per share--Note 3(d). . . . . . . . . . . . $8.57
_____
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED AUGUST 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME: Interest . . . . . . . . . . . . . . . . . . . $ 247,713
Cash dividends . . . . . . . . . . . . . . . . . 21,702
_____________
Total Income . . . . . . . . . . . . . $ 269,415
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . 636,709
Shareholder servicing costs--Note 3(b) . . . . . 458,387
Registration fees . . . . . . . . . . . . . . . . 58,292
Professional fees . . . . . . . . . . . . . . . . 57,877
Prospectus and shareholders' reports . . . . . . 44,943
Custodian fees--Note 3(b) . . . . . . . . . . . . 21,512
Directors' fees and expenses--Note 3(c) . . . . . 11,031
Interest expense--Note 2 . . . . . . . . . . . . 1,290
Miscellaneous . . . . . . . . . . . . . . . . . . 33,650
_____________
Total Expenses . . . . . . . . . . . . 1,323,691
Less--reduction in management fee due to
undertaking--Note 3(a) . . . . . . . . . . . . (247,049)
_____________
Net Expenses . . . . . . . . . . . . . 1,076,642
_____________
INVESTMENT (LOSS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (807,227)
_____________
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments:
Unaffiliated issuers . . . . . . . . . . . . . (31,898,803)
Affiliated issuers . . . . . . . . . . . . . . (627,734) ----
_____________
Net Realized Gain (Loss) . . . . . . . (32,526,537)
Net unrealized appreciation (depreciation)
on investments:
Unaffiliated issuers . . . . . . . . . (17,594,993)
Affiliated issuers . . . . . . . . . . (1,544,195)
_____________
(19,139,188)
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . (51,665,725)
_____________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . $ (52,472,952)
_____________
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
August 31, 1998 August 31, 1997
______________ ______________
OPERATIONS:
<S> <C> <C>
Investment (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (807,227) $ (1,839,502)
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . (32,526,537) (7,342,197)
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . (19,139,188) 1,493,689
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . (52,472,952) (7,688,010)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . 32,766,191 158,318,662
Net assets received in connection with reorganization--Note 1 . . . . . . . . . . ------ 44,129,796
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80,928,451) (182,497,411)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . . (48,162,260) 19,951,047
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . (100,635,212) 12,263,037
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131,603,573 119,340,536
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,968,361 $131,603,573
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,927,600 7,696,328
Shares issued in connection with reorganization--Note 1 . . . . . . . . . . . . . ------ 2,636,188
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,870,650) (9,030,023)
_____________ _____________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . . (2,943,050) 1,302,493
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
DREYFUS AGGRESSIVE GROWTH 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.
Year Ended August 31,
___________________________________
PER SHARE DATA: 1998 1997 1996(1)
_______ _______ _______
<S> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . $20.07 $22.71 $12.50
_______ _______ _______
Investment Operations:
Investment (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.16)(2) (.26) (.10)
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . (11.34) (2.38) 10.31
_______ _______ _______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . . . . . . . . (11.50) (2.64) 10.21
_______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8.57 $20.07 $22.71
_______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (57.30%) (11.63%) 81.68%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets . . . . . . . . . . . . . . . . . . 1.27% 1.34% 1.16%(3)
Ratio of interest expense and loan commitment fees to average net assets . . . . . . .00%(4) .39% .24%(3)
Ratio of investment (loss) to average net assets . . . . . . . . . . . . . . . . . . (.95%) (1.62%) (1.04%)(3)
Decrease reflected in above expense ratios due to undertakings by the Manager . . . . .29% .09% .17%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86.53% 76.45% 125.17%(3)
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . . $30,968 $131,604 $119,341
- -----------------------------
(1) From September 29, 1995 (commencement of operations) to August 31, 1996.
(2) Based on average shares outstanding at each month end.
(3) Not annualized.
(4) Amount represents less than .01%.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Aggressive Growth Fund (the "Fund") is a separate diversified series
of Dreyfus Growth and Value Funds, Inc. (the "Company") which is registered
under the Investment Company Act of 1940, as amended (the "Act") as an 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 (the "Manager") serves as the
Fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. (" Mellon"). 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.
On November 6, 1996 the Board of Directors of the Fund approved, subject to
approval by the shareholders of the Dreyfus Special Growth Fund ("DSGF"), an
Agreement and Plan of Reorganization providing for the transfer of all or
substantially all of the DSGF's assets and liabilities to the Fund in a tax free
exchange for shares of Common Stock of the Fund at net asset value and the
assumption of stated liabilities (the "Exchange"). The Exchange was approved by
the shareholders of DSGF on April 7, 1997, and was consummated after the close
of business on April 18, 1997 at which time 2,965,625 Institutional shares
valued at $13.60 per share, and 274,371 Retail shares valued at $13.84 per
share, representing combined net assets of $44,129,796, [including ($1,260,489)
net unrealized (depreciation) on investments] were exchanged by DSGF for the
respective number of 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. Securities for which there are no such
valuations are valued at fair value as determined in good faith under the
direction of the Board of Directors. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of exchange.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custodian agreement, the Fund received net
earnings credits of $866 during the period ended August 31, 1998 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(C) AFFILIATED ISSUERS: Issuers in which the Fund held 5% or more of the
outstanding voting securities are defined as "affiliated" in the Act. The
following summarizes affiliated issuers during the period ended August 31, 1998
Shares
___________________________________________
<TABLE>
Beginning End of Dividend Market
Name of Issuer of Period Purchases Sales Period Income Value
____________ __________ ________ _______ ________ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C>
ONCOR* 1,525,000 -- 320,600 1,204,400 -- $376,375
OncorMed* 475,000 45,000 194,500 325,500 -- 508,594
-----------------
*No longer affiliated at August 31, 1998.
</TABLE>
<PAGE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (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, if any, 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 of 1986, as amended (the "Code").To
the extent that net realized capital gain can be offset by capital loss
carryovers, 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 Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $7,605,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to August 31, 1998. The
carryover does not include net realized securities losses from November 1, 1997
through August 31, 1998 which are treated, for Federal income tax purposes, as
arising in fiscal 1999. If not applied, $33,000 of the carryover expires in
fiscal 2004, $5,794,000 expires in fiscal 2005 and $1,778,000 expires in fiscal
2006.
During the period ended August 31, 1998, the Fund reclassified $2,646,729 from
accumulated investment (loss) to paid-in capital. Net assets were not affected
by this reclassification.
NOTE 2--BANK LINE OF CREDIT:
The Fund 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.
The average daily amount of borrowings outstanding during the period ended
August 31, 1998 was approximately $21,900 with a related weighted average
annualized interest rate of 5.89%.
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
September 1, 1997 through April 18, 1999 to reduce the management fee paid by
the Fund, to the extent that the Fund's aggregate expenses, exclusive of taxes,
brokerage and extraordinary expenses, exceed an annual rate of 1.20% of the
value of the Fund's average daily net assets. The reduction in management fee,
pursuant to the undertaking, amounted to $247,049 during the period ended August
31, 1998.
(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 professionals) in respect of these services. The Distributor
determines the amounts to be paid to Service Agents. During the period ended
August 31, 1998, the Fund was charged $212,236 pursuant to the Shareholder
Services Plan.
<PAGE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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. During the period
ended August 31, 1998, the Fund was charged $155,531 pursuant to the transfer
agency agreement.
The Fund compensates Mellon under a custody agreement for providing custodial
services for the Fund. During the period ended August 31, 1998, the Fund was
charged $21,512 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) A 1% redemption fee is charged and retained by the Fund on certain
redemptions of Fund shares (including redemption through use of the Fund
Exchange Service) where the redemption or exchange occurs less than fifteen days
following the date of issuance.
NOTE 4--SECURITIES TRANSACTIONS:
The following summarizes the aggregate amount of purchases and sales of
investment securities, excluding short-term securities, during the period ended
August 31, 1998:
<TABLE>
Purchases Sales
___________ ___________
<S> <C> <C>
Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,518,360 $114,878,352
Affiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314,356 304,404
___________ ___________
TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,832,716 $115,182,756
___________ ___________
At August 31, 1998, accumulated net unrealized depreciation on investments was
$26,959,046, consisting of $253,833 gross unrealized appreciation and
$27,212,879 gross unrealized depreciation.
At August 31, 1998, 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).
</TABLE>
<PAGE>
DREYFUS AGGRESSIVE GROWTH FUND
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus Aggressive Growth Fund
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Aggressive Growth Fund (one
of the Series constituting Dreyfus Growth and Value Funds, Inc.), as of August
31, 1998, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and financial highlights for each of the years indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund' s management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included verification by
examination of securities held as of August 31, 1998 and confirmation of
securities not held by the custodian by correspondence with others. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Aggressive Growth Fund at August 31, 1998, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the indicated
years, in conformity with generally accepted accounting principles.
New York, New York
October 5, 1998
<PAGE>
(reg.tm)
[Dreyfus lion "d" logo]
DREYFUS AGGRESSIVE 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
(reg.tm)
[Dreyfus logo]
Printed in U.S.A. 256AR988
Dreyfus Aggressive Growth Fund August 31, 1998
Comparison of change in value of $10,000 investment in Dreyfus Aggressive
Growth Fund and the Standard & Poor's 500 Composite Stock Price Index
EXHIBIT A
Dreyfus Standard & Poor's
Aggressive 500 Composite
Period Growth Stock Price
Fund Index
- ----------------------------------------------------------------------------
9/29/95 10,000 10,000
8/31/96 18,168 11,391
8/31/97 16,056 16,019
8/31/98 6,856 17,320
- ----------------------------------------------------------------------------
* Source: Lipper Analytical Services, Inc.
