<PAGE>
Dreyfus
Large Company
Value Fund
Semi-Annual
Report
April 30, 1998
<PAGE>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this semi-annual report for Dreyfus Large
Company Value Fund for the six-month period ended April 30, 1998. Over this
period, your Fund produced a total return of 13.13%* which compares with a total
return of 22.50% for the Standard & Poor's 500 Composite Stock Price Index (the
"S&P 500")** and 19.78% for the Standard & Poor's Barra Value Index.***
The performance of the Fund during this period was certainly below our
expectations compared to these indices. Given that we position the Fund for
where we believe the market is going and not where it has been, it can take some
time for the market to realize the value of our investments. Value investing can
require some patience. Regardless, we have made changes in the holdings, and
hope to look back on this period as one of abnormality.
Performance during these past six months was somewhat restrained by our
disciplined value investing approach. We believed that the valuation of most
major market benchmarks and many of the largest securities had become excessive
during this period and constructed an investment portfolio with a relatively low
correlation to the S&P 500 Index. In doing so, we believed that the risk level
of the Fund was significantly lower than that of this and other major
benchmarks, and that the values we uncovered would eventually be realized.
Unfortunately, during the fall months, the Fund was negatively impacted by the
Asian economic crisis. Many of the same companies and sectors that had done so
well earlier in 1997 were penalized during the fourth calendar quarter due to
either export exposure to Asian countries or commodity exposure that might hurt
selling prices in a weaker global marketplace. Late in the calendar year, we
restructured the Fund's security holdings for this new economic environment,
favoring domestically oriented companies and businesses with less economic
cyclicality.
Economic Review
Although real Gross Domestic Product (GDP) sustained a growth trend
approaching 4% into the first quarter, incoming evidence suggests a shift to
somewhat slower economic growth in coming months. Aggregate profit margins have
already begun to narrow in some sectors. The conflicting pressures of a
softening economy and a still tightening labor market have kept the Federal
Reserve Board in neutral, although a bias favoring higher interest rates was
resumed recently. Market interest rates have likewise stayed within a narrow
range in recent months.
While manufacturing has turned appreciably sluggish since year-end, this was
overshadowed in the first quarter by a strong rebound in domestic demand. The
industrial sector has been slowed by the strong dollar and by weak exports.
However, with Asian economies still in turmoil, competition from Asian-made
imports has emerged only gradually. The first quarter rebound in domestic
demand was fueled primarily by strong housing market conditions and rising real
household incomes, but additionally by several short-lived influences.
<PAGE>
Market Overview
Equity prices during the six months ended April 30, 1998 continued to display
some volatility, most of the time on the upside. The U.S. equity markets quickly
rebounded from the financial crisis in Asia.
Occasionally, there are temporary setbacks due to worries about inflation and
concern about the corporate profit outlook. During the first calendar quarter,
however, the markets resumed their upward surge. As the markets entered the
second quarter, interest rate fears have held prices in a fairly narrow trading
range.
Value Investing and Our Investment Process
While there are other investment disciplines practiced at Dreyfus, the
Dreyfus Equity Value Team passionately believes in value investing. Paying
attention to the value of securities has proven in numerous industry and
academic studies to result in superior, more consistent long-term investment
returns. As value investors, we want to buy growing companies, but we want to
pay as little for them as we can. In this sense, it is a lower-risk, more
conservative style of equity investing.
Our approach to the selection of securities starts and ends with our
analysts, who are an integral part of our investment team. Our Dreyfus analysts
contribute their proprietary forecasts to our computer models, their analysis
and opinions to our decision-making process, and their constant flow of
information to our ongoing assessment of securities owned. We screen the
universe of stocks by computer according to two principal methods. The first
computer screen determines value by calculating each security's earnings yield
(our forecast for earnings divided by the security price) which, to justify
purchase, must be greater than the risk-free yield available on reasonably
long-term U.S. Treasury securities. Being paid more than this risk-free rate for
the risk inherent in equity investing is central to our value discipline. The
second computer screen looks at 19 other factors that have historically
influenced stock returns. We input into this model the current economic and
stock market trends, and the computer calculates each security's exposure to
this environment. Combining all of this data with our analysts' in-depth
knowledge of the individual companies, we then construct a portfolio of
approximately 60 securities. We use the same disciplined criteria and several
other factors to determine when selling a security is in our shareholders' best
interest.
Summary
Investment results during this period benefited from holdings such as
Equitable, Storage Technology, Warnaco Group Cl.A, Xerox, Travelers Group, Shaw
Industries, Biogen, and Ceridian. Relative performance during the fiscal year
was penalized by holdings including Adaptec, Cabletron Systems, Reebok
International, Ikon Office Solutions, Micron Electronics, and Georgia Pacific.
<PAGE>
We will continue to manage your investments with dedication and discipline.
Sincerely,
/s/Timothy M. Ghriskey
Timothy M. Ghriskey
Portfolio Manager
May 18, 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.
*** The Standard & Poor's Barra Value Index is a
capitalization-weighted index of all the stocks in the Standard & Poor's
500 Composite Stock Price Index that have low price-to-book ratios. It is
designed so that approximately 50% of the S&P 500's market capitalization
is in the Value Index.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
Statement of Investments April 30, 1998 (Unaudited)
Common Stocks--96.6% Shares Value
- ------------------------------------------------------------------------------- ------------ --------------
<S> <C> <C> <C>
Commercial Services--1.2% Ikon Office Solutions......................... 85,000 $ 2,055,937
--------------
Consumer Durables--3.1% General Motors................................ 37,200 2,506,350
Shaw Industries............................... 176,000 2,849,000
--------------
5,355,350
--------------
Consumer Non-Durables--9.6% ConAgra....................................... 93,000 2,714,438
Kimberly-Clark................................ 57,400 2,913,050
Philip Morris................................. 65,000 2,425,313
Reebok International.......................(a) 99,000 2,908,125
RJR Nabisco Holdings.......................... 75,700 2,105,406
Warnaco Group, Cl. A.......................... 79,000 3,337,750
--------------
16,404,082
--------------
Consumer Services--3.9% La Quinta Inns................................ 142,000 3,124,000
McDonald's.................................... 58,000 3,588,750
--------------
6,712,750
--------------
Electronic Technology--14.2% Ceridian...................................(a) 53,000 2,997,812
Digital Equipment..........................(a) 59,000 3,281,875
Gateway 2000...............................(a) 63,000 3,697,313
International Business Machines............... 29,300 3,395,137
Lockheed Martin............................... 28,000 3,118,500
Storage Technology.........................(a) 55,600 4,694,725
Sun Microsystems...........................(a) 75,000 3,089,063
--------------
24,274,425
--------------
Energy Minerals--7.9% British Petroleum, A.D.S...................... 32,000 3,024,000
Mobil......................................... 29,500 2,330,500
Phillips Petroleum............................ 52,900 2,621,856
Tosco......................................... 77,700 2,768,063
USX-Marathon Group............................ 76,000 2,721,750
--------------
13,466,169
--------------
Finance--17.4% BankAmerica................................... 31,700 2,694,500
Bankers Trust New York........................ 21,200 2,737,450
Chase Manhattan............................... 20,500 2,840,531
CIGNA ........................................ 14,000 2,897,125
Citicorp...................................... 17,700 2,663,850
Equitable..................................... 49,900 3,062,613
Fleet Financial Group......................... 33,800 2,919,475
Morgan (J.P.)................................. 22,200 2,913,750
NationsBank................................... 35,000 2,651,250
St. Paul Companies............................ 23,300 1,974,675
Travelers Group............................... 38,800 2,374,075
-------------
29,729,294
-------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1998 (Unaudited)
Common Stocks (continued) Shares Value
- ------------------------------------------------------------------------------- ------------ --------------
<S> <C> <C> <C>
Health Services--1.8% Tenet Healthcare...........................(a) 80,000 $ 2,995,000
------------
Health Technology--9.6% Allergan...................................... 82,000 3,408,125
American Home Products........................ 32,500 3,026,562
Amgen .....................................(a) 55,500 3,309,187
Biogen.....................................(a) 81,800 3,629,875
Genzyme....................................(a) 99,500 3,078,281
------------
16,452,030
------------
Industrial Services--1.4% Cooper Cameron.............................(a) 35,000 2,325,312
------------
Non-Energy Minerals--1.6% Lafarge....................................... 70,000 2,800,000
------------
Process Industries--4.8% Crown Cork & Seal............................. 53,000 2,759,312
Owens-Illinois.............................(a) 67,000 2,650,688
Premark International......................... 84,500 2,820,188
------------
8,230,188
------------
Producer Manufacturing--3.6% Georgia Pacific............................... 38,800 2,994,875
Masco ........................................ 54,000 3,132,000
------------
6,126,875
------------
Retail Trade--5.1% American Stores............................... 120,000 2,880,000
Federated Department Stores................(a) 56,600 2,784,013
Sears, Roebuck & Co........................... 52,000 3,084,250
------------
8,748,263
------------
Transportation--1.7% Union Pacific.................................. 53,000 2,901,750
------------
Utilities--9.7% Ameritech...................................... 68,000 2,894,250
AT&T........................................... 50,000 3,003,125
Coastal........................................ 44,000 3,143,250
Empresa Nacional Electricidad, A.D.R........... 98,800 1,722,825
Telefonos de Mexico, Cl. L, A.D.S.............. 54,600 3,091,725
Texas Utilities................................ 70,000 2,800,000
------------
16,655,175
------------
TOTAL COMMON STOCKS
(cost $137,736,713)........................ $165,232,600
============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1998 (Unaudited)
Preferred Stocks--1.6% Shares Value
- ------------------------------------------------------------------------------- -------------- --------------
<S> <C> <C> <C>
Finance; Sanwa International Finance (Bermuda) Trust
(cost $2,983,768).......................(b) 3,750,000 $ 2,735,991
============
TOTAL INVESTMENTS (cost $140,720,481).......................................... 98.2% $167,968,591
======= ============
CASH AND RECEIVABLES (NET)..................................................... 1.8% $ 3,062,141
======= ============
NET ASSETS..................................................................... 100.0% $171,030,732
======= ============
<FN>
Notes to Statement of Investments:
- -------------------------------------------------------------------------------
(a) Non-income producing.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At April 30, 1998, this
security amounted to $2,735,991 or approximately 1.6% of net assets.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1998 (Unaudited)
Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement
of Investments $140,720,481 $167,968,591
Cash............................................. 192,723
Receivable for investment securities sold........ 6,825,149
Dividends and interest receivable................ 144,965
Receivable for shares of Common Stock subscribed. 141,570
Net unrealized appreciation on forward currency
exchange contracts--Note 4(a).................. 116,063
Prepaid expenses................................. 48,649
------------
175,437,710
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 142,784
Due to Distributor............................... 35,922
Payable for shares of Common Stock redeemed...... 2,378,847
Payable for investment securities purchased...... 1,131,869
Bank loan payable................................ 700,000
Accrued expenses................................. 17,556
-------------
4,406,978
-------------
NET ASSETS..................................................................... $171,030,732
============
REPRESENTED BY: Paid-in capital.................................. $142,131,781
Accumulated undistributed investment income--net. 93,547
Accumulated net realized gain (loss) on investments,
forward currency exchange contracts and
foreign currency transactions.................. 1,441,231
Accumulated net unrealized appreciation (depreciation)
on investments and forward currency exchange
contracts--Note 4(b)........................... 27,364,173
------------
NET ASSETS..................................................................... $171,030,732
============
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized)................ 7,465,410
NET ASSET VALUE, offering and redemption price per share--Note 3(d)............ $22.91
======
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1998 (Unaudited)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME: Cash dividends (net of $6,211 foreign taxes
withheld at source)...................... $ 1,154,177
Interest................................... 105,386
-----------
Total Income............................. $ 1,259,563
EXPENSES: Management fee--Note 3(a).................. 627,435
Shareholder servicing costs--Note 3(b)..... 331,054
Registration fees.......................... 26,624
Custodian fees--Note 3(b).................. 17,820
Professional fees.......................... 16,449
Prospectus and shareholders' reports....... 9,475
Directors' fees and expenses--Note 3(c).... 4,608
Interest expense--Note 2................... 128
Miscellaneous.............................. 3,932
-----------
Total Expenses........................... 1,037,525
-----------
INVESTMENT INCOME--NET................................................... 222,038
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments
and foreign currency transactions........ $ 1,512,329
Net unrealized appreciation (depreciation) on
investments, forward currency exchange
contracts and foreign currency transactions 19,567,810
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 21,080,139
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $21,302,177
===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
Six Months Ended
April 30, 1998 Year Ended
(Unaudited) October 31, 1997
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................. $ 222,038 $ 408,170
Net realized gain (loss) on investments................................ 1,512,329 7,983,595
Net unrealized appreciation (depreciation) on investments.............. 19,567,810 5,923,746
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations..... 21,302,177 14,315,511
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................. (419,872) (262,874)
Net realized gain on investments....................................... (8,053,887) (2,353,920)
------------ ------------
Total Dividends..................................................... (8,473,759) (2,616,794)
------------ ------------
CAPITALSTOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 36,643,366 172,616,707
Dividends reinvested................................................... 8,047,123 2,254,119
Cost of shares redeemed................................................ (48,447,949) (58,796,553)
------------ ------------
Increase (Decrease) in Net Assets from Capital Stock Transactions... (3,757,460) 116,074,273
------------ ------------
Total Increase (Decrease) in Net Assets.......................... 9,070,958 127,772,990
NET ASSETS:
Beginning of Period.................................................... 161,959,774 34,186,784
------------ ------------
End of Period.......................................................... $171,030,732 $161,959,774
============ ============
Undistributed investment income--net...................................... $ 93,547 $ 291,381
------------ ------------
Shares Shares
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 1,742,185 8,530,858
Shares issued for dividends reinvested................................. 393,503 121,976
Shares redeemed........................................................ (2,254,627) (2,962,260)
------------ ------------
Net Increase (Decrease) in Shares Outstanding....................... (118,939) 5,690,574
============ ============
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large 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.
Six Months Ended Year Ended October 31,
April 30, 1998 -------------------------------------------
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994(1)
----------- ------ ------ ------ --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period............. $21.35 $18.05 $15.46 $12.63 $12.50
------ ------ ------ ------ ------
Investment Operations:
Investment income--net........................... .03 .07 .12 .22 .26
Net realized and unrealized gain (loss)
on investments................................ 2.65 4.33 4.68 2.93 (.13)
------ ------ ------ ------ ------
Total from Investment Operations................. 2.68 4.40 4.80 3.15 .13
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net............ (.06) (.11) (.21) (.32) --
Dividends from net realized gain
on investments................................ (1.06) (.99) (2.00) -- --
------ ------ ------ ------ ------
Total Distributions.............................. (1.12) (1.10) (2.21) (.32) --
------ ------ ------ ------ ------
Net asset value, end of period................... $22.91 $21.35 $18.05 $15.46 $12.63
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN............................. 13.13%(2) 25.29% 34.35% 25.73% 1.04%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.......... .62%(2) 1.22% 1.25% .83% --
Ratio of net investment income to average
net assets.................................... .13%(2) .41% .93% 1.64% 2.08%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager............ -- .06% .32% 1.76% 2.01%(2)
Portfolio Turnover Rate.......................... 68.05%(2) 110.14% 186.39% 143.61% 48.35%(2)
Average commission rate paid (3)................. $.0490 $.0471 $.0471 -- --
Net assets, end of period (000's Omitted)........ $171,031 $161,960 $34,187 $6,687 $5,168
<FN>
- --------------------------
(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.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Large Company Value 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 ("Act") as an open-end
management investment company and operates as a series company currently
offering nine 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"). 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.
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. Investments denominated in foreign
currencies are translated to U.S. dollars at the prevailing rates of exchange.
Forward currency exchange contracts are valued at the forward rate.
(b) Foreign currency transactions: The Fund does not isolate that portion of
the results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities
of short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions and 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.
(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.
<PAGE>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(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 Lines 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.
The average daily amount of borrowings outstanding under both arrangements
during the period ended April 30, 1998 was approximately $3,900, with a related
weighted average annualized interest rate of 6.68%.
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.
(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, 1998, the Fund was charged $209,145 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. During the period
ended April 30, 1998, the Fund was charged $79,225 pursuant to the transfer
agency agreement.
The Fund compensates Mellon under a custody agreement to provide custodial
services for the Fund. During the period ended April 30, 1998, the Fund was
charged $17,820 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 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) During the period ended April 30, 1998, the Fund incurred total
brokerage commissions of $328,815, of which $456 was paid
to Dreyfus Investment Services Corporation, a subsidiary of Mellon.
<PAGE>
Dreyfus Large Company Value Fund
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 4--Securities Transactions:
(a) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities and forward currency exchange contracts, during
the period ended April 30, 1998 amounted to $113,149,620 and $119,707,542,
respectively.
In addition, the following summarizes open forward currency exchange
contracts at April 30, 1998:
<TABLE>
<CAPTION>
Foreign
Currency Unrealized
Forward Currency Exchange Contracts Amount Proceeds Value Appreciation
- ----------------------------------- -------- -------- ------ ------------
Sales:
- -----
<S> <C> <C> <C> <C>
Japanese Yen, expiring 5/18/98 375,000,000 $2,946,839 $2,830,776 $116,063
========
</TABLE>
The Fund enters into forward currency exchange contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings. When executing forward currency exchange contracts, the Fund
is obligated to buy or sell a foreign currency at a specified rate on a certain
date in the future. With respect to sales of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract increases
between the date the forward contract is opened and the date the forward
contract is closed. The Fund realizes a gain if the value of the contract
decreases between those dates. With respect to purchases of forward currency
exchange contracts, the Fund would incur a loss if the value of the contract
decreases between the date the forward contract is opened and the date the
forward contract is closed. The Fund realizes a gain if the value of the
contract increases between those dates. The Fund is also exposed to credit risk
associated with counter party nonperformance on these forward currency exchange
contracts which is typically limited to the unrealized gain on each open
contract.
(b) At April 30, 1998, accumulated net unrealized appreciation on investments
and forward currency exchange contracts was $27,364,173, consisting of
$30,204,200 gross unrealized appreciation and $2,840,027 gross unrealized
depreciation.
At April 30, 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).
<PAGE>
Dreyfus Large Company
Value 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. 251SA984
