<PAGE>
Dreyfus
Large Company
Growth Fund
Semi-Annual
Report
April 30, 1998
<PAGE>
Dreyfus Large Company Growth Fund
- --------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
Recently we mailed you a special letter informing you that Dreyfus Large
Company Growth Fund ceased offering shares as of April 27, 1998, and is in
process of being liquidated. The Fund's assets will be distributed to
shareholders, which we estimate will occur on or about June 30, 1998.
Alternatively, you may wish to redeem your shares or exchange them for shares of
another Dreyfus mutual fund prior to the date that the Fund is liquidated.
As explained in the earlier letter, the Fund has attracted fewer investors
than anticipated and, unfortunately, has not met management's expectations for
asset growth.
For its final six months, the fiscal period ended April 30, 1998, total
return for the Fund was 12.78%,* while the Standard & Poor's 500 Composite Stock
Price Index returned 22.50%.**
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
already have begun to narrow in some sectors. The conflicting pressures of a
softening economy and a tightening labor market have kept the Federal Reserve
Board (the "Fed") 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.
Rising real wages that have been such a boon to consumers in recent months
may also be taking a toll on corporate profit margins. The first sign of profit
pressure was seen last year as the dollar strengthened. This year, profit
margins have eroded further due to weak exports and falling prices in some
sectors. However, accelerating wage growth that is apparent alongside limited
pricing power may also prove a harbinger of profit margin erosion. Hence, a
shift to slower economic growth that coexists with rising wage pressures creates
a further risk to overall profit growth.
The above pressures have kept Fed policy unchanged until now. However,
policymakers are more concerned about wage growth than economic strains, as
evidenced by a recent shift towards a tightening bias. Although long-term bond
yields were below year-ago levels at the end of April, substantially lower
yields have proven difficult to attain in the absence of lower short-term rates.
This too could restrain the economic growth rate.
Market Overview
The equity market trended generally higher for the six months following the
sharp October 1997 market correction that occurred when the Asian currency and
economic crises dominated the financial news headlines. Stock prices rose during
November and early December as fears of an imminent worldwide depression
subsided and the U.S. economy continued to grow at a solid rate.
Strong U.S. economic growth led to a rise in long-term bond rates in early
January, causing another sharp but brief stock market decline as investors
feared that the Fed might raise short-term interest rates. When inflation data
remained low during the first quarter, interest rates began to trend lower. The
combination of low inflation, declining bond rates, solid economic growth and
continued optimistic forecasts for corporate earnings growth in 1998 led to a
steady climb in stock prices from mid-January into early April. Most market
indices reached record levels, well above the previous 1997 highs.
<PAGE>
Portfolio Focus
The Fund's emphasis on companies with high earnings-growth expectations for
the next 12 to 18 months included many technology, energy service, and health
care shares that responded to sector and company-specific news during the past
six months. Positive news benefited shares of America Online, Cooper Cameron,
Global Industries, AES, McKesson, Tommy Hilfiger, and Clear Channel
Communications. Underperformers that were hurt by reduced investor expectations
included Starwood Hotels & Resorts, Green Tree Financial, Check Point Software
Technologies, Etec Systems and Teva Pharmaceutical Industries, A.D.R.
The ten largest positions at April 30, representing 45% of the Fund's assets,
were America Online, Cooper Cameron, Global Industries, AES, McKesson, Tommy
Hilfiger, Starwood Hotels & Resorts, Clear Channel Communications, Fremont
General and Pharmacia & Upjohn.
Thank you for choosing Dreyfus to serve your investment needs.
Sincerely,
/s/ Michael Schonberg
Michael Schonberg
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.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company Growth Fund
- -------------------------------------------------------------------------------
Statement of Investments April 30, 1998 (Unaudited)
COMMON STOCKS-93.4% SHARES VALUE
- ------------------------------------------------------------------------------- ------------ -----------
<S> <C> <C> <C>
Commercial Services--2.0% At Home, Cl. A................................ 8,000 $ 266,500
-----------
Consumer Non-Durables--10.5% Coca-Cola..................................... 4,000 303,500
Jones Apparel Group........................(a) 4,000 239,250
Philip Morris................................. 3,000 111,937
Tommy Hilfiger.............................(a) 10,000 610,000
Warnaco Group, Cl. A.......................... 4,000 169,000
-----------
1,433,687
-----------
Consumer Services--6.2% Clear Channel Communications...............(a) 6,000 565,500
Sun International Hotels...................(a) 6,000 275,625
-----------
841,125
-----------
Electronic Technology--4.8% Applied Materials..........................(a) 6,000 216,750
Cisco Systems..............................(a) 6,000 439,500
-----------
656,250
-----------
Finance--18.8% American International Group.................. 1,500 197,344
Associates First Capital, Cl. A............... 2,500 186,875
Fremont General............................... 10,000 557,500
Green Tree Financial.......................... 6,000 244,500
Old Republic International.................... 10,000 452,500
Starwood Hotels & Resorts..................... 11,500 577,156
Vornado Realty Trust.......................... 9,000 360,563
-----------
2,576,438
-----------
Health Services--4.7% McKesson...................................... 9,000 636,187
-----------
Health Technology--7.0% Biovail International......................(a) 10,000 408,750
Pharmacia & Upjohn............................ 13,000 546,813
-----------
955,563
-----------
Industrial Services--22.8% Cooper Cameron.............................(a) 10,000 664,375
ENSCO International........................... 18,500 522,625
Global Industries..........................(a) 28,000 635,250
Rowan .....................................(a) 17,000 500,437
Smith International........................(a) 5,000 293,750
Transocean Offshore........................... 9,000 502,875
-----------
3,119,312
-----------
Producer Manufacturing--1.2% General Electric.............................. 2,000 170,250
-----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company Growth Fund
- -------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1998
(Unaudited)
COMMON STOCKS (continued) SHARES VALUE
- ------------------------------------------------------------------------------- ------------ -----------
<S> <C> <C> <C>
Technology Services--10.6% America Online.............................(a) 9,000 $ 720,000
Check Point Software Technologies..........(a) 7,000 205,625
Microsoft..................................(a) 2,000 180,250
Networks Associates........................(a) 5,000 342,500
-----------
1,448,375
-----------
Utilities--4.8% AES........................................(a) 12,000 662,250
-----------
TOTAL COMMON STOCKS
(cost $9,044,621).......................... $12,765,937
===========
Principal
Amount
------------
Short-Term Investments--6.7%
- -------------------------------------------------------------------------------
U.S. Treasury Bills: 4.95%, 5/28/98................................ $494,000 $ 492,311
4.89%, 7/2/98................................. 434,000 430,380
-----------
TOTAL SHORT-TERMINVESTMENTS
(cost $922,438)............................ $ 922,691
===========
TOTAL INVESTMENTS (cost $9,967,059)............................................ 100.1% $13,688,628
====== ===========
LIABILITIES, LESS CASH AND RECEIVABLES......................................... (.1%) $ (20,426)
====== ===========
NET ASSETS..................................................................... 100.0% $13,668,202
====== ===========
<FN>
Notes to Statement of Investments:
- ------------------------------------------------------------------------------------------------------------------------
(a) Non-income producing.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company Growth Fund
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1998 (Unaudited)
Cost Value
------------ -----------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $ 9,967,059 $13,688,628
Cash................................................... 51,577
Receivable for shares of Common Stock subscribed....... 50,000
Dividends and interest receivable...................... 4,659
Prepaid expenses....................................... 12,911
-----------
13,807,775
-----------
LIABILITIES Due to The Dreyfus Corporation and affiliates.......... 10,390
Due to Distributor..................................... 2,759
Payable for investment securities purchased............ 113,714
Accrued expenses....................................... 12,710
-----------
139,573
-----------
NET ASSETS........................................................................ $13,668,202
===========
REPRESENTED BY: Paid-in capital........................................ $ 9,592,178
Accumulated investment (loss).......................... (66,644)
Accumulated net realized gain (loss) on investments 421,099
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4............................... 3,721,569
-----------
NET ASSETS........................................................................ $13,668,202
===========
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized)................... 683,541
NET ASSET VALUE, offering and redemption price per share--Note 3(d)............... $20.00
======
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus Large Company Growth Fund
- ----------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1998 (Unaudited)
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME: Cash dividends (net of $177 foreign taxes
withheld at source)...................... $ 36,817
Interest................................... 10,147
----------
Total Income............................. $ 46,964
EXPENSES: Management fee--Note 3(a).................. 45,540
Auditing fees.............................. 23,972
Shareholder servicing costs--Note 3(b)..... 18,839
Registration fees.......................... 13,869
Prospectus and shareholders' reports....... 5,205
Custodian fees--Note 3(b).................. 1,796
Interest expense--Note 2................... 1,349
Directors' fees and expenses--Note 3(c).... 544
Legal fees................................. 461
Miscellaneous.............................. 2,033
----------
Total Expenses........................... 113,608
----------
INVESTMENT (LOSS)........................................................ (66,644)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments.... $ 449,008
Net unrealized appreciation (depreciation)
on investments........................... 1,173,035
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 1,622,043
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $1,555,399
==========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company Growth Fund
- -----------------------------------------------------------------------------
Statement Of Changes in Net Assets
SIX MONTHS ENDED
APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment (loss)...................................................... $ (66,644) $ (67,667)
Net realized gain (loss) on investments................................ 449,008 1,102,422
Net unrealized appreciation (depreciation) on investments.............. 1,173,035 742,711
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from Operations..... 1,555,399 1,777,466
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Net realized gain on investments....................................... (1,127,385) (676,051)
----------- -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 1,057,665 4,831,482
Dividends reinvested................................................... 1,118,954 674,094
Cost of shares redeemed................................................ (1,165,583) (3,450,411)
----------- -----------
Increase (Decrease) in Net Assets from Capital Stock Transactions... 1,011,036 2,055,165
----------- -----------
Total Increase (Decrease) in Net Assets.......................... 1,439,050 3,156,580
NET ASSETS:
Beginning of Period.................................................... 12,229,152 9,072,572
----------- -----------
End of Period.......................................................... $13,668,202 $12,229,152
=========== ===========
Investment (loss)......................................................... $ (66,644) --
----------- -----------
Shares Shares
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 58,088 268,164
Shares issued for dividends reinvested................................. 64,160 41,078
Shares redeemed........................................................ (62,883) (183,083)
----------- -----------
Net Increase (Decrease) in Shares Outstanding....................... 59,365 126,159
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Dreyfus Large Company 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.
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............. $19.59 $18.22 $14.79 $13.05 $12.50
------ ------ ------ ------ ------
Investment Operations:
Investment income (loss)--net.................... .01 (.11) (.08) .07 .17
Net realized and unrealized gain (loss)
on investments................................ 2.23 2.81 3.56 1.88 .38
------ ------ ------ ------ ------
Total from Investment Operations................. 2.24 2.70 3.48 1.95 .55
------ ------ ------ ------ ------
Dividends from investment income--net............ -- -- (.05) (.21) --
Dividends from net realized gain
on investments................................ (1.83) (1.33) -- -- --
------ ------ ------ ------ ------
Total Distributions.............................. (1.83) (1.33) (.05) (.21) --
------ ------ ------ ------ ------
Net asset value, end of period................... $20.00 $19.59 $18.22 $14.79 $13.05
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN............................. 12.78%(2) 16.27% 23.55% 15.29% 4.40%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets .92%(2) 1.20% 1.26% .85% --
Ratio of interest expense to average net assets.. .01%(2) -- -- -- --
Ratio of net investment income (loss) to
average net assets............................ (.54%)(2) (.58%) (.56%) .54% 1.37%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager............ -- .33% .32% 1.69% 1.97%(2)
Portfolio Turnover Rate.......................... 46.75%(2) 195.27% 153.78% 86.59% 12.08%(2)
Average commission rate paid (3)................. $.0561 $.0513 $.0521 -- --
Net assets, end of period (000's Omitted)........ $13,668 $12,229 $9,073 $6,187 $5,281
<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 Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Large Company 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 ("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"), 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, 1998, MBIC Investment Corp., an indirect subsidiary of
Mellon Bank Corporation, held 487,487 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.
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.
<PAGE>
Dreyfus Large Company Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
The average daily amount of borrowings outstanding under both arrangements
during the period ended April 30, 1998 was approximately $44,800, with a related
weighted average annualized interest rate of 6.08%.
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 an aggregate of $15,180 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 $2,362 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 $1,796 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 $14,145, of which $50 was paid to Dreyfus Investment
Services Corporation, a subsidiary of Mellon.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1998 amounted
to $5,542,990 and $6,445,786, respectively.
At April 30, 1998, accumulated net unrealized appreciation on investments was
$3,721,569, consisting of $3,820,302 gross unrealized appreciation and $98,733
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).
NOTE 5--Subsequent Event:
On April 27, 1998, the Board approved a proposal to liquidate the Fund,
distribute the Fund's assets to Fund shareholders and close out Fund shareholder
accounts. The liquidation is expected to occur on or about June 30, 1998. In
anticipation of the Fund's liquidation, effective immediately, the Fund will be
closed to any new investments.
<PAGE>
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. 250SA984
