Dreyfus
nternational
Value Fund
ANNUAL REPORT
August 31, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
- -------------------------------------------------------------------------------
THE FUND
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
12 Statement of Assets and Liabilities
13 Statement of Operations
14 Statement of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
21 Report of Independent Auditors
22 Important Tax Information
FOR MORE INFORMATION
Back Cover
<PAGE>
The Fund
Dreyfus
International Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus International Value
Fund, covering the 12-month period from September 1, 1998 through August 31,
1999. Inside, you' ll find valuable information about how the fund was managed
during the reporting period, including a discussion with the fund's portfolio
manager, Sandor Cseh.
When the reporting period began, much of the world was in the midst of a global
currency and credit crisis. In response, many of the world's central banks
lowered key short-term interest rates last fall to stimulate economic growth.
This strategy appears to have been effective. Soon after 1999 began, evidence
emerged that less restrictive monetary policies had helped prevent further
economic deterioration in Japan and the emerging markets of Asia, Latin America
and Eastern Europe.
These economic conditions produced generally good results for international
stocks. Stock markets in Japan and Asia began to recover in 1999, showing their
first signs of real strength in over a year. Latin America provided good results
after concerns about Brazil's currency devaluation abated. After a brief period
of currency-related weakness, developed markets in Western Europe also
rebounded.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus International Value Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
September 14, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Sandor Cseh, Portfolio Manager
How did Dreyfus International Value Fund perform relative to its benchmark?
For the 12-month period ended August 31, 1999, Dreyfus International Value Fund
produced a total return of 28.19%.(1) This compares favorably with the return
provided by the fund' s benchmark, the Morgan Stanley Capital International
Europe, Australasia, Far East ("MSCI EAFE((reg.tm))") Index, which produced a
total return of 25.67% for the same period.(2)
We attribute the fund' s strong performance to three factors: an improving
economy in Japan, a shift in market sentiment away from the long-held preference
for large-cap growth stocks to smaller and value-oriented stocks, and a wave of
global merger and acquisition activity.
What is the fund's investment approach?
The fund seeks long-term capital growth. To pursue this goal, the fund
ordinarily invests most of its assets in stocks of foreign issuers that we
consider to be "value" companies. The fund normally invests in companies in at
least three countries, and limits its investments in any single company to no
more than 5% of its assets at the time of purchase.
The fund' s investment approach is value oriented, research driven and risk
averse. When selecting stocks, we attempt to identify potential investments
through extensive quantitative and fundamental research. Emphasizing individual
stock selection over economic or industry trends, the fund focuses on three key
factors:
*Value, or how a stock is priced relative to traditional business
performance measures.
*Business health, or overall efficiency and profitability is measured by
return on assets and return on equity. The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
*Business momentum, or the presence of the catalyst (such as corporate
restructuring, changing management or spin-off) that can potentially trigger a
price increase near term to midterm.
The fund typically sells a stock when it is no longer considered a value
company, appears less likely to benefit from the current market and economic
environment, shows deteriorating fundamentals or declining momentum, or falls
short of our expectations.
What other factors influenced the fund's performance?
Many of the factors that held back the fund's performance during the first six
months of the reporting period reversed themselves during the last six months,
boosting the fund' s overall returns. Most significantly, in April, market
sentiment began to shift away from large-cap growth stocks to include a broader
group of companies. Higher global interest rates and commodity prices have
caused investors to look for new opportunities in the stock market, leading them
in many cases to the international and value-oriented stocks in which the fund
invests. In this environment, many of the stocks in our portfolio rebounded
strongly.
On a country-by-country basis, Japan and the United Kingdom (U.K.) produced the
best returns during the period. Japan is showing signs of recovery from last
fall's financial crisis. As the economy began to improve, so did its imports and
exports, which has created a more favorable outlook for companies doing business
in Japan.
In the U.K., strong growth was driven primarily by the rebound in value stocks.
In addition, many U.K. stocks flourished because of heightened merger and
acquisition activity. Stock prices had fallen to levels that were lower than
what we believed were many of these companies' actual worth, and they therefore
became attractive acquisition candidates.
What is the fund's current strategy?
We have continued to focus on a diverse group of investments in Japan. Examples
of Japanese stocks that have helped drive our overall performance include Nippon
Express, a transportation and package
<PAGE>
delivery company, Sankyo, a manufacturer of amusement equipment, and two finance
companies, Aiful and Nichiei. In the U.K., we continue to like companies such as
industrial gas producer BOC. Its stock price has benefited from a merger
speculation with two other global chemical firms, one of which is Air Liquide, a
French company that we also own. Rio Tinto, a British mining company, has
exhibited strong growth due to favorable commodity prices. In Germany, the stock
prices of VEBA and Viag, two of the fund's industrial utility holdings, rose
once they announced their intention to combine their utility businesses.
Of course, not all of our holdings showed positive results. Companies such as
Credit Saison, one of the largest issuers of credit cards in Japan, and Royal &
Sun Alliance Insurance, a large multinational insurance group based in the U.K.,
held back performance due to pressures within their respective industries
We are encouraged by the values that we have found in the international stock
market. We believe that the prevailing market environment has been an opportune
time for investing in international value stocks.
September 14, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- THE MORGAN STANLEY CAPITAL
INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST (MSCI EAFE((reg.tm))) INDEX IS A
WIDELY ACCEPTED, UNMANAGED INDEX OF FOREIGN STOCK MARKET PERFORMANCE, AND
INCLUDES NET DIVIDENDS REINVESTED.
The Fund
<PAGE>
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus International
Value Fund and the Morgan Stanley Capital International Europe, Australasia, Far
East (EAFE((reg.tm))) Index
Average Annual Total Returns AS OF 8/31/99
Inception
1 Year (9/29/95)
FUND 28.19% 12.18%
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN DREYFUS INTERNATIONAL
VALUE FUND ON 9/29/95 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE
MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST
(EAFE((reg.tm))) 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 MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA,
FAR EAST (EAFE((reg.tm))) INDEX, WHICH IS THE PROPERTY OF MORGAN STANLEY & CO.
INCORPORATED, IS AN UNMANAGED INDEX COMPOSED OF A SAMPLE OF COMPANIES
REPRESENTATIVE OF THE MARKET STRUCTURE OF EUROPEAN AND PACIFIC BASIN COUNTRIES
AND INCLUDES NET DIVIDENDS REINVESTED. THE INDEX 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
$15,690
Dreyfus International Value Fund
$14,480
Morgan Stanley Capital International Europe, Australasia, Far East
(EAFE((reg.tm)) )Index((+)
<PAGE>
<TABLE>
STATEMENT OF INVESTMENTS
August 31, 1999
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS--97.5% Shares Value ($)
<S> <C> <C>
AUSTRALIA--2.0%
Australia & New Zealand Banking 452,244 2,949,815
Goodman Fielder 1,280,850 1,180,616
Pacific Dunlop 745,187 1,111,397
5,241,828
AUSTRIA--.2%
EVN 2,932 412,883
BRAZIL--.4%
Telecomunicacoes Brasileiras, ADS 13,598 1,008,802
DENMARK--.7%
Jyske Bank 20,692 1,899,564
FINLAND--.7%
Kesko Oyj, Cl. B 139,550 1,715,622
FRANCE 11.1%
ALSTOM, ADS 33,770 1,127,074
Air Liquide 20,688 3,178,124
Assurances Generales de France 41,930 2,167,968
Banque Nationale de Paris 21,300 1,630,603
Bongrain 4,126 1,575,876
CNP Assurances 46,408 1,225,037
Compagnie Generale des Establissements
Michelin, Cl. B 29,611 1,284,779
Credit Lyonnais 24,702 (a) 757,906
Dexia France 12,474 1,627,251
Elf Aquitaine, ADS 34,000 2,994,125
Hachette Filipacchi Medias 2,750 651,728
PSA Peugeot Citroen 13,900 2,558,879
Pechiney, Cl. A 21,600 1,259,189
Societe Generale 14,425 2,827,984
Thomson CSF 58,161 2,129,088
Usinor 128,000 1,983,961
28,979,572
GERMANY--9.4%
Bayer 78,800 3,430,692
Deutsche Bank 38,721 2,650,553
Deutsche Lufthansa 132,550 2,566,354
GEA 47,400 1,755,222
Hoechst 15,450 653,844
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
CONTINUED)
STATEMENT OF INVESTMENTS (COMMON STOCKS (CONTINUED) Shares Value ($)
GERMANY (CONTINUED)
KM Europa Metal 14,000 753,931
Merck KGaA 95,700 3,260,269
Siemens 34,200 2,880,214
Tarkett Sommer 22,000 202,501
VEBA 53,500 3,413,161
Viag 66,820 1,424,516
Volkswagen 23,870 1,442,029
24,433,286
GREECE--1.2%
Hellenic Telecommunication Organization, ADS 299,555 3,089,161
HONG KONG--1.7%
HSBC 45,213 560,432
Henderson Investment 1,918,000 1,321,481
Hongkong Electric 807,300 2,656,344
4,538,257
ITALY--2.9%
Banca Popolare di Bergamo Credito Varesino 62,700 1,289,119
ENI, ADS 47,400 2,867,700
San Paulo-IMI, ADR 29,747 797,591
Telecom Italia 474,525 2,713,567
7,667,977
JAPAN--27.9%
Aiful 14,100 2,445,741
Canon 116,000 3,387,016
Credit Saison 144,200 3,249,911
Dai-Tokyo Fire & Marine Insurance 429,000 1,663,625
Fuji Machine Manufacturing 68,000 3,443,588
Honda Motor 62,000 2,489,165
Ito-Yokado 18,000 1,323,783
Mabuchi Motor 36,000 4,480,496
Marubeni 988,000 2,334,887
Matsumotokiyoshi 52,600 3,925,982
Minebea 250,000 3,011,086
Mitsubishi Heavy Industries 305,000 1,327,478
Murata Manufacturing 65,000 5,219,216
NAMCO 70,700 2,664,273
Nichiei 38,160 3,516,730
Nippon Express 339,000 2,589,014
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
JAPAN (CONTINUED)
Nishimatsu Construction 312,000 1,807,747
Rinnai 104,000 2,519,458
Rohm 20,000 3,978,284
Sankyo 52,000 3,919,157
Sankyo Company 97,000 2,699,485
Sekisui Chemical 248,000 1,380,355
Sony 33,000 4,269,720
Toyota Motor 56,000 1,650,440
Yamanouchi Pharmaceutical 76,000 3,384,096
72,680,733
MEXICO--.4%
Telefonos de Mexico, Cl. A, ADR 14,353 1,067,504
NETHERLANDS--7.7%
ABN AMRO 131,085 3,196,757
Akzo Nobel, ADS 48,200 2,253,350
Buhrmann 119,348 2,108,712
Hollandsche Beton Groep 122,129 1,447,180
Hunter Douglas 80,880 2,545,738
ING Groep 35,900 1,971,270
KPN, ADR 44,286 2,015,013
Koninklijke (Royal) Philips Electronics, ADR 12,208 1,255,135
Stork 101,427 2,194,485
Vedior 63,815 1,103,891
20,091,531
NEW ZEALAND--1.2%
Fletcher Challenge Paper 1,589,021 1,151,023
Telecom Corporation of New Zealand 436,800 1,959,423
3,110,446
NORWAY--.4%
Orkla, Cl. B 85,000 1,171,098
PERU--.4%
Telefonica del Peru, ADS 82,000 1,122,375
PHILIPPINES--.3%
Manila Electric 255,000 759,518
PORTUGAL--1.4%
Banco Pinto & Sotto Mayor 71,940 1,333,491
Portugal Telecom 55,600 2,328,874
3,662,365
The Fund
<PAGE>
(CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED)
STATEMENT OF INVESTMENTS COMMON STOCKS (CONTINUED) Shares Value ($)
SINGAPORE--1.1%
United Overseas Bank 400,000 2,968,592
SOUTH KOREA--.9%
Korea Electric Power, ADS 84,700 1,524,600
Pohang Iron & Steel, ADS 24,500 900,375
2,424,975
SPAIN--4.6%
Argentaria, ADS 36,300 1,651,650
Banco Popular Espanol 33,860 2,484,386
Endesa 231,041 4,644,386
Repsol, ADS 146,100 3,049,838
11,830,260
SWEDEN--1.0%
Autoliv 71,600 2,501,219
SWITZERLAND--4.1%
Barry Callebaut 14,246 2,446,473
Forbo 5,160 2,044,914
Sulzer 3,280 2,060,291
Swisscom 2,670 880,888
UBS 11,170 3,154,013
10,586,579
UNITED KINGDOM--15.8%
BOC 116,665 2,455,232
Barclays 73,925 2,197,069
British Aerospace 188,800 1,382,563
British Airways 164,903 1,078,873
British Airways, ADS 8,000 531,500
Bunzl 653,505 3,396,283
Laird 343,193 1,670,559
Medeva 454,467 879,772
Morgan Crucible 553,508 2,756,553
PowerGen 298,366 2,979,005
Rexam 464,400 2,189,682
Rio Tinto 146,857 2,642,369
Royal & Sun Alliance Insurance 385,356 3,206,805
Royal Bank of Scotland 123,472 2,562,782
Safeway 646,204 2,678,367
Scottish and Southern Energy 170,500 1,564,016
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
UNITED KINGDOM (CONTINUED)
Storehouse 809,375 1,488,799
Tomkins 600,056 2,622,053
Wolseley 349,800 2,787,291
41,069,573
TOTAL COMMON STOCKS
(cost $225,418,004) 254,033,720
PREFERRED STOCKS--1.1%
GERMANY:
Hugo Boss 7,623 907,328
ProSieben Media 32,600 1,458,961
Rheinmetall 35,200 560,486
TOTAL PREFERRED STOCKS
(cost $3,097,361) 2,926,775
TOTAL INVESTMENTS (cost $228,515,365) 98.6% 256,960,495
CASH AND RECEIVABLES (NET) 1.4% 3,706,907
NET ASSETS 100.0% 260,667,402
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1999
Cost Value
<S> <C> <C>
ASSETS ($):
Investments in securities--See Statement of
Investments 228,515,365 256,960,495
Cash denominated in foreign currencies 9,041,090 8,853,815
Receivable for investment securities sold 1,848,558
Dividends receivable 950,118
Receivable for shares of Common Stock subscribed 705,905
Prepaid expenses 6,951
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 209,799
Due to Distributor 53,979
Cash overdraft due to Custodian 2,276,533
Payable for investment securities purchased 5,849,105
Payable for shares of Common Stock redeemed 145,548
Net unrealized (depreciation) on forward
currency exchange contracts--Note 4(a) 3,085
Accrued expenses 120,391
8,658,440
NET ASSETS ($) 260,667,402
COMPOSITION OF NET ASSETS ($):
Paid-in capital 223,811,973
Accumulated undistributed investment income--net 1,859,320
Accumulated net realized gain (loss) on investments
and foreign currency transactions 6,791,325
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 28,204,784
NET ASSETS ($) 260,667,402
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 14,878,269
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
17.52
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year Ended August 31, 1999
INVESTMENT INCOME ($):
INCOME:
<S> <C> <C>
Cash dividends (net of $572,112 foreign taxes withheld at source) 4,365,773
Interest 426,944
TOTAL INCOME 4,792,717
EXPENSES:
Management fee--Note 3(a) 1,992,970
Shareholder servicing costs--Note 3(b) 541,816
Custodian fees 159,547
Professional fees 37,767
Registration fees 31,123
Prospectus and shareholders' reports 14,100
Directors' fees and expenses--Note 3(c) 11,119
Loan commitment fees--Note 2 779
Miscellaneous 3,432
TOTAL EXPENSES 2,792,653
INVESTMENT INCOME--NET 2,000,064
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency transactions
7,821,014
Net realized gain (loss) on forward currency exchange contracts (404,996)
NET REALIZED GAIN (LOSS) 7,416,018
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions 41,585,254
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 49,001,272
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 51,001,336
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
1999 1998
<S> <C> <C>
OPERATIONS ($):
Investment income--net 2,000,064 1,586,452
Net realized gain (loss) on investments 7,416,018 8,994,634
Net unrealized appreciation (depreciation)
on investments 41,585,254 (17,114,291)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 51,001,336 (6,533,205)
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (1,669,640) (605,725)
Net realized gain on investments (8,578,499) (2,990,766)
TOTAL DIVIDENDS (10,248,139) (3,596,491)
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 272,816,276 176,161,453
Dividends reinvested 7,975,826 2,744,488
Cost of shares redeemed (223,584,564) (102,965,527)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 57,207,538 75,940,414
TOTAL INCREASE (DECREASE) IN NET ASSETS 97,960,735 65,810,718
NET ASSETS ($):
Beginning of Period 162,706,667 96,895,949
END OF PERIOD 260,667,402 162,706,667
Undistributed investment income--net 1,859,320 1,528,896
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 17,014,785 11,143,833
Shares issued for dividends reinvested 539,272 185,941
Shares redeemed (13,897,438) (6,545,043)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 3,656,619 4,784,731
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended August 31,
1999 1998 1997 1996(a)
<S> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 14.50 15.05 13.23 12.50
Investment Operations:
Investment income--net .16(b) .13 .07 .15
Net realized and unrealized
gain (loss) on investments 3.76 (.20) 1.98 .65
Total from Investment Operations 3.92 (.07) 2.05 .80
Distributions:
<TABLE
Dividends from investment income--net (.15) (.08) (.10) (.04)
Dividends from net realized gain on investments (.75) (.40) (.13) (.03)
Total Distributions (.90) (.48) (.23) (.07)
Net asset value, end of period 17.52 14.50 15.05 13.23
TOTAL RETURN (%) 28.19 (.62) 15.72 6.43(c
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.40 1.44 1.49 1.39(c)
Ratio of net investment income
to average net assets 1.00 1.17 1.09 1.78(c)
Decrease reflected in above expense ratios
due to undertakings by the Manager -- -- .03 .51(c)
Portfolio Turnover Rate 30.68 34.46 25.35 19.14(c)
Net Assets, end of period ($ x 1,000) 260,667 162,707 96,896 25,638
(A) FROM SEPTEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus International 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, 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
long-term capital growth. The Dreyfus Corporation (the "Manager") serves as the
fund' s investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. 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 series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series 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.
Forward currency exchange contracts are valued at the forward rate.
<PAGE>
(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 amounts of
dividends, interest and foreign withholding taxes recorded on the funds' 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. Under the terms of the custody agreement, the fund received net
earnings credits of $1,487 during the period ended August 31, 1999, based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(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 of 1986, as amended (the "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.
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (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 Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of the borrowings. During the period ended
August 31, 1999, the fund did not borrow under the Facility.
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 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
August 31, 1999, the fund was charged $498,243 pursuant to the Shareholder
Services Plan.
<PAGE>
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, 1999, the fund was charged $33,618 pursuant to the transfer
agency 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 shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund's Exchange privilege.
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 August 31, 1999, amounted to $126,264,059 and $57,422,547,
respectively.
In addition, the following summarizes open forward currency exchange contracts
at August 31, 1999:
<TABLE>
FOREIGN UNREALIZED
FORWARD CURRENCY CURRENCY APPRECIATION
EXCHANGE CONTRACTS AMOUNTS COST ($) VALUE ($) (DEPRECIATION) ($)
<S> <C> <C> <C> <C>
PURCHASES:
Euro Dollars,
expiring 9/1/99 93,591 98,111 99,019 908
Euro Dollars,
expiring 9/30/99 1,140,856 1,211,019 1,207,026 (3,993)
TOTAL (3,085)
</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 and to settle foreign currency transactions. When executing
forward currency exchange contracts, the fund is obligated to buy or sell a
foreign currency at a specified rate on a The Fun
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 August 31, 1999, accumulated net unrealized appreciation on investments
and forward currency exchange contracts was $28,442,045, consisting of
$40,433,987 gross unrealized appreciation and $11,991,942 gross unrealized
depreciation.
At August 31, 1999, 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>
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus International Value Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus International Value Fund (one of the
Series constituting Dreyfus Growth and Value Funds, Inc.) as of August 31, 1999,
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 confirmation of
securities owned as of August 31, 1999 by correspondence with the custodian and
brokers. 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 International Value Fund at August 31, 1999, 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, 1999
The Fund
<PAGE>
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund elects to provide each shareholder
with their portion of the fund's foreign taxes paid and the income sourced from
foreign countries. Accordingly, the fund hereby makes the following designations
regarding its fiscal year ended August 31, 1999:
-- the total amount of taxes paid to foreign countries was $572,112
-- the total amount of income sourced from foreign countries was $3,395,62
As required by Federal tax law rules, shareholders will receive notification of
their proportionate share of foreign taxes paid and foreign sourced income for
the 1999 calendar year with form 1099-DIV which will be mailed by January 31,
2000.
For Federal tax purposes the fund hereby designates $.442 per share as a
long-term capital gain distribution of the $.890 per share paid on December 21,
1998.
The fund also designates .79% of the ordinary dividends paid during the fiscal
year ended August 31, 1999 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2000 of the
percentage applicable to the preparation of their 1999 income tax returns.
<PAGE>
NOTES
<PAGE>
For More Information
Dreyfus International Value Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
100 Church Street
New York, N.Y. 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL
Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 254AR998
<PAGE>
- -------------------------------------------------------------------------------
Dreyfus
Premier Technology Growth Fund
ANNUAL REPORT August 31, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments Year 2000 Issues (Unaudited)
and its share price.
<PAGE>
Contents
- -------------------------------------------------------------------------------
THE FUND
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
15 Financial Highlights
17 Notes to Financial Statements
23 Report of Independent Auditors
24 Important Tax Information
FOR MORE INFORMATION
Back Cover
<PAGE>
The Fund
Dreyfus Premier Technology Growth Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Technology
Growth Fund, covering the 12-month period from September 1, 1998 through August
31, 1999. Inside, you' ll find valuable information about how the fund was
managed during the reporting period, including a discussion with the fund's
portfolio manager, Mark Herskovitz.
The past year has been rewarding for most equity investors. When the reporting
period began, most sectors of the U.S. stock market were in the midst of a sharp
correction caused primarily by concerns regarding the spread of the global
financial crisis in overseas markets. Soon after 1999 began, however, those
fears abated. In fact, the U.S. economy remained strong, characterized by low
inflation and high levels of consumer spending. These conditions supported
continued strength in the stock market. Several major market indices set new
records, including the Dow Jones Industrial Average, the broader S&P 500 Index
and the technology-laden NASDAQ Index.
Beginning in April, many previously out-of-favor market sectors rallied
strongly, including value-oriented stocks. This has helped narrow the valuation
gap that had developed over the past several years between the growth and value
sectors of the stock market.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Premier Technology Growth Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
September 14, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Mark Herskovitz, Portfolio Manager
How did Dreyfus Premier Technology Growth Fund perform relative to its
benchmark?
For the 12-month period ended August 31, 1999, Dreyfus Premier Technology Growth
Fund, Class A shares, produced a total return of 167.23%.(1) In comparison, the
Morgan Stanley High Technology 35 Index provided a 149.14% total return for the
12-month period ended August 31, 1999 and the Standard & Poor's 500 Composite
Stock Price Index ("S&P 500 Index") provided a 39.81% total return for the same
period.(2)
The public offering of the fund's Class B, C and R shares commenced on April 15,
1999. From April 15, 1999 through August 31, 1999, the fund produced a total
return of 13.73% for Class B shares, 13.63% for Class C shares and 14.05% for
Class R shares.
We attribute the fund's strong relative performance to the overall strength in
the technology sector during the period, and the fund's investment strategy,
which emphasizes diversification among 10 different technology-related market
sectors. By maintaining a broadly diversified portfolio, we held a variety of
companies that are enjoying growing demand for their products and services. At
the same time, our diversification strategy helped cushion the effects of
individual disappointments on the portfolio.
Investors should note, however, that the fund's relatively small asset size,
combined with a period of high stock market performance, particularly in the
technology sector, contributed to the fund's success. Returns such as these
should not be expected over the long term.
Technology companies, especially small-cap technology companies, involve greater
risk because their earnings tend to be less predictable, their share prices to
be more volatile, and their securities to be less liquid than larger, more
established companies. Some of the fund's investments in technology companies
will rise and fall based on investor The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
perception rather than economics. Other fund investments are made in
anticipation of future products and services which, if delayed or canceled,
could cause the stock price to drop dramatically.
What is the fund's investment approach?
The fund seeks capital appreciation by investing in growth companies of any size
that we believe are leading producers or beneficiaries of technological
innovation. When choosing stocks, the fund looks for sectors within the
technology area that are expected to outperform other sectors. The most
attractive sectors are overweighted, while less appealing sectors are
underweighted. Among the sectors evaluated are those that develop, produce or
distribute products or services in the computer, semiconductor, electronics,
communications, health care, biotechnology, computer software and hardware,
electronic components systems, networking and cable broadcasting,
telecommunications, defense and aerospace, and environmental sectors. Although
the fund looks for companies with the potential for strong earnings growth
rates, some of the fund' s investments may currently be experiencing losses.
Moreover, the fund may invest in small-, mid- and large-cap securities in all
available trading markets, including initial public offerings and the
aftermarket.
What other factors influenced the fund's performance?
When the reporting period began, the stock market was in the midst of a sharp
correction caused primarily by concerns related to economic weakness in overseas
markets. When it later became clear that these international events were
unlikely to derail U.S. economic growth, the stock market, especially the
technology sector, rebounded.
During the first quarter of 1999, when investors began to recognize that
economic growth in the United States might be stronger than they had
anticipated, technology stocks advanced strongly. The sector was led by
high-flying Internet companies that attracted considerable levels of investor
attention. While we participated strongly in this rally through core holdings
such as CMGI and Yahoo!, we tended to avoid more speculative stocks that did not
meet our fundamental investment criteria.
<PAGE>
The period between April and August, 1999 was highly volatile for the technology
sector. Fears of a slowdown in the U.S. hardware market and older product lines
- -- such as PC software, semiconductors and data networking -- were negative
influences, as were Y2K-related concerns. On the other hand, positive influences
included economic growth in Europe, which is expected to provide an outlet for
many of these older products. In addition, the growth of communication-related
companies has continued in such areas as local and long-distance telephone
networks, Internet services and cable television.
What is the fund's current strategy?
We continue to evaluate investment opportunities from both a "top down" and a
" bottom up" perspective. First, we assess economic and market conditions in an
attempt to identify trends that we believe are likely to drive demand within the
various technology-related sectors.
Second, we strive to identify the companies that are most likely to benefit from
these overall trends. Typically, these companies are leaders in their market
segments, characterized by rapid earnings growth and dominant market shares. We
conduct extensive fundamental research to understand these companies'
competitive advantages and to evaluate their ability to maintain their
leadership positions over time.
This process enables us to select leading technology companies for inclusion in
the portfolio. Many of those stocks are considered core holdings that we believe
will lead their industry segments over the long term. We complement these
positions with non-core holdings that we believe will provide above-average
gains over a shorter time frame.
September 14, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE OF 5.75%
IN THE CASE OF CLASS A SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES
CHARGE IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD
THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH
THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
INCOME DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAINS DISTRIBUTIONS. THE
STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A WIDELY ACCEPTED,
UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE.
The Fund
<PAGE>
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Premier
Technology Growth Fund Class A shares with the Morgan Stanley High Technology 35
Index and the Standard & Poor's 500 Composite Stock Price Index
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) SOURCE: MORGAN STANLEY & CO. INCORPORATED
((+)(+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
THE FUND'S RELATIVELY SMALL ASSET SIZE, COMBINED WITH A PERIOD OF HIGH STOCK
MARKET PERFORMANCE, PARTICULARLY IN THE TECHNOLOGY SECTOR, CONTRIBUTED TO THE
FUND'S SUCCESS. RETURNS SUCH AS THESE SHOULD NOT BE EXPECTED OVER THE LONG TERM
EFFECTIVE APRIL 15, 1999, THE FUND CHANGED ITS NAME FROM DREYFUS TECHNOLOGY
GROWTH FUND TO DREYFUS PREMIER TECHNOLOGY GROWTH FUND, AND INTRODUCED MULTIPLE
CLASSES OF SHARES FEATURING VARIOUS SALES CHARGE STRUCTURES AND ONGOING FEES.
MOST EXISTING SHARES IN THE FUND WERE DESIGNATED CLASS A SHARES, WHICH ARE
SUBJECT TO A MAXIMUM FRONT-END SALES CHARGE OF 5.75%.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN CLASS A SHARES OF DREYFUS
PREMIER TECHNOLOGY GROWTH FUND ON 10/13/97 (INCEPTION DATE) TO A $10,000
INVESTMENT IN EACH OF THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX AND
THE MORGAN STANLEY HIGH TECHNOLOGY 35 INDEX. FOR COMPARATIVE PURPOSES, THE VALUE
OF THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX ON 9/30/97 IS USED AS
THE BEGINNING VALUE ON 10/13/97. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS
ARE REINVESTED. PERFORMANCE FOR CLASS B, CLASS C AND CLASS R SHARES WILL VARY
FROM THE PERFORMANCE OF CLASS A SHARES SHOWN ABOVE DUE TO DIFFERENCES IN CHARGES
AND EXPENSES.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT THE MAXIMUM
INITIAL SALES CHARGE ON CLASS A SHARES AND ALL OTHER APPLICABLE FEES AND
EXPENSES. THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A WIDELY
ACCEPTED UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE. THE MORGAN STANLEY
HIGH TECHNOLOGY 35 INDEX IS AN UNMANAGED, EQUAL DOLLAR-WEIGHTED INDEX FROM THE
ELECTRONICS-BASED SUBSECTORS. THE MORGAN STANLEY HIGH TECHNOLOGY 35 INDEX IS
THE PROPERTY OF MORGAN STANLEY & CO., INCORPORATED AND INCLUDES GROSS DIVIDENDS
REINVESTED. THE INDICES DO 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>
Average Annual Total Returns AS OF 8/31/99
Inception From
Date 1 Year Inception
<S> <C> <C> <C>
CLASS A SHARES
WITH SALES CHARGE (5.75%) 10/13/97 151.84% 60.73%
WITHOUT SALES CHARGE 10/13/97 167.23% 65.86%
Actual Aggregate Total Returns AS OF 8/31/99
Inception From
Date 1 Year Inception
CLASS B SHARES
WITH REDEMPTION((+)) 4/15/99 -- 19.73%
WITHOUT REDEMPTION 4/15/99 -- 13.73%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 4/15/99 -- 12.63%
WITHOUT REDEMPTION 4/15/99 -- 13.63%
CLASS R SHARES
4/15/99 -- 14.05%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+))THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4%
AND IS REDUCED TO 0% AFTER SIX YEARS.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS
1% FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE. THE
FUND'S RELATIVELY SMALL ASSET SIZE, COMBINED WITH A PERIOD OF HIGH
STOCK MARKET PERFORMANCE, PARTICULARLY IN THE TECHNOLOGY SECTOR,
CONTRIBUTED TO THE FUND'S SUCCESS. RETURNS SUCH AS THESE SHOULD NOT BE
EXPECTED OVER THE LONG TERM The Fund
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
COMMON STOCKS--93.4% Shares Value ($)
CELLULAR TELEPHONE--2.9%
<S> <C> <C>
NEXTLINK Communications, Cl. A 320,000 (a) 16,120,000
COMPUTER COMMUNICATIONS--1.6%
Aware 275,000 (a) 9,212,500
COMPUTER SOFTWARE--16.5%
Clarify 355,000 (a) 15,620,000
Legato Systems 360,000 (a) 15,502,500
Microsoft 140,000 (a) 12,958,750
PMC-Sierra 185,000 (a) 17,205,000
Rational Software 270,000 (a) 7,306,875
Synopsys 230,000 (a) 12,865,625
Yahoo! 80,000 (a) 11,800,000
93,258,750
DIVERSIFIED ELECTRONIC PRODUCT--3.3%
JDS Uniphase 130,000 (a) 13,788,125
Sawtek 150,000 (a) 4,959,375
18,747,500
ELECTRONIC COMPONENTS--2.7%
DSP Communications 220,000 (a) 5,170,000
Micrel 130,000 (a) 9,961,250
15,131,250
ELECTRONIC DATA PROCESSING--11.7%
Apple Computer 300,000 (a) 19,575,000
Dell Computer 370,000 (a) 18,060,625
Lexmark International Group, Cl. A 210,000 (a) 16,537,500
Network Appliance 180,000 (a) 11,823,750
65,996,875
ELECTRONIC DATA PROCESSING PERIPHERALS--3.0%
EMC 279,000 (a) 16,740,000
ELECTRONIC DATA PROCESSING SERVICES--2.1%
Automatic Data Processing 300,000 11,793,750
ELECTRONIC PRODUCTION EQUIPMENT--8.3%
Applied Materials 160,000 (a) 11,370,000
KLA-Tencor 200,000 (a) 12,562,500
PRI Automation 400,000 (a) 11,450,000
Teradyne 165,000 (a) 11,230,312
46,612,812
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
INTERNET--2.2%
eBay 100,000 (a) 12,556,250
OFFICE/PLANT AUTOMATION--2.4%
Cisco Systems 200,000 (a) 13,562,500
OTHER TELEPHONE/COMMUNICATIONS--10.1%
Frontier 150,000 6,290,625
MCI WorldCom 300,000 (a) 22,725,000
Metromedia Fiber Network, Cl. A 550,000 (a) 16,190,625
Qwest Communications 420,000 (a) 12,075,000
57,281,250
SEMICONDUCTORS--13.6%
Brocade Communications Systems 40,000 (a) 7,525,000
Intel 260,300 21,393,406
SDL 182,900 (a) 14,974,938
Taiwan Semiconductor Manufacturing, A.D.R. 651,900 (a) 18,864,356
Vitesse Semiconductor 210,000 (a) 14,280,000
77,037,700
TELECOMMUNICATION EQUIPMENT--10.7%
CMGI 130,000 (a) 10,911,875
Copper Mountain Networks 30,000 (a) 3,510,000
Lucent Technologies 190,000 12,171,875
Newbridge Networks 300,000 (a) 8,231,250
Nokia, A.D.R. 150,000 12,506,250
Tellabs 220,000 (a) 13,103,750
60,435,000
TELECOMMUNICATIONS--2.3%
Bell Atlantic 210,000 12,862,500
TOTAL COMMON STOCKS
(cost $420,269,819) 527,348,637
The Fund
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
U.S. TREASURY BILLS:
4.59%, 9/16/1999 40,000 39,918
4.57%, 9/23/1999 78,000 77,783
4.55%, 9/30/1999 2,807,000 2,796,847
4.53%, 10/7/1999 2,663,000 2,650,777
4.53%, 10/14/1999 1,216,000 1,209,397
4.54%, 10/21/1999 4,146,000 4,119,395
4.66%, 11/4/1999 349,000 346,121
4.71%, 11/12/1999 17,688,000 17,520,672
4.67%, 11/18/1999 3,710,000 3,671,973
4.79%, 11/26/1999 1,012,000 1,000,392
TOTAL SHORT-TERM INVESTMENTS
(cost $33,434,860) 33,433,275
TOTAL INVESTMENTS (cost $453,704,679) 99.3% 560,781,912
CASH AND RECEIVABLES (NET) .7% 3,728,586
NET ASSETS 100.0% 564,510,498
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1999
Cost Value
ASSETS ($):
Investments in securities--See Statement of
<S> <C> <C>
Investments 453,704,679 560,781,912
Cash 4,145,700
Receivable for investment securities sold 10,469,145
Receivable for shares of Common Stock subscribed 6,367,877
Dividends receivable 8,300
Prepaid expenses 123,088
581,896,022
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 366,790
Due to Distributor 111,506
Payable for investment securities purchased 15,914,538
Payable for shares of Common Stock redeemed 765,443
Accrued expenses 227,247
17,385,524
NET ASSETS ($) 564,510,498
COMPOSITON OF NET ASSETS ($):
Paid-in capital 452,748,330
Accumulated net realized gain (loss) on investments 4,684,935
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 107,077,233
NET ASSETS ($) 564,510,498
</TABLE>
<TABLE>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
Net Assets ($) 459,457,496 73,587,873 30,206,882 1,257,247 1,000
Shares Outstanding 14,265,873 2,290,009 940,931 39,015 31.05
NET ASSET VALUE
<S> <C> <C> <C> <C> <C>
PER SHARE ($) 32.21 32.13 32.10 32.22 32.21
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year Ended August 31, 1999
INVESTMENT INCOME ($):
INCOME:
<S> <C> <C>
Interest 1,072,338
Cash dividends 176,604
TOTAL INCOME 1,248,942
EXPENSES:
Management fee--Note 3(a) 1,686,120
Shareholder servicing costs--Note 3(c) 797,935
Registration fees 165,041
Distribution fees--Note 3(b) 111,316
Professional fees 51,181
Prospectus and shareholders' reports 28,338
Custodian fees--Note 3(c) 24,883
Directors' fees and expenses--Note 3(d) 13,589
Miscellaneous 8,959
TOTAL EXPENSES 2,887,362
Less--reduction in management fee due to undertaking--Note 3(a) (47,855)
NET EXPENSES 2,839,507
INVESTMENT (LOSS) (1,590,565)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 6,529,961
Net unrealized appreciation (depreciation) on investments 107,824,217
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 114,354,178
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 112,763,613
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
August 31, 1999(a) August 31, 1998(b)
OPERATIONS ($):
<S> <C> <C>
Investment (loss) (1,590,565) (71,278)
Net realized gain (loss) on investments 6,529,961 (37,885)
Net unrealized appreciation (depreciation)
on investments 107,824,217 (746,984)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 112,763,613 (856,147)
DIVIDENDS TO SHAREHOLDERS FROM ($):
From net realized gain on investments:
Class A shares (145,298) --
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 478,537,215 24,327,585
Class B shares 71,857,010 --
Class C shares 30,684,800 --
Class R shares 1,322,691 --
Class T shares 1,000 --
Dividends reinvested:
Class A shares 140,315 --
Cost of shares redeemed:
Class A shares (140,362,213) (11,101,450)
Class B shares (1,071,648) --
Class C shares (1,474,017) --
Class R shares (112,958) --
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 439,522,195 13,226,135
TOTAL INCREASE (DECREASE) IN NET ASSETS 552,140,510 12,369,988
NET ASSETS ($):
Beginning of Period 12,369,988 --
END OF PERIOD 564,510,498 12,369,988
(A) EFFECTIVE APRIL 15, 1999, SHARES OF THE FUND WERE REDESIGNATED AS CLASS A
SHARES, AND THE FUND COMMENCED SELLING CLASS B, CLASS C AND CLASS R SHARES.
EFFECTIVE AUGUST 31, 1999, THE FUND COMMENCED SELLING CLASS T SHARES.
(B) FROM OCTOBER 13, 1997 (COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended Year Ended
August 31, 1999(a) August 31, 1998(b)
CAPITAL SHARE TRANSACTIONS:
CLASS A
<S> <C> <C>
Shares sold 18,489,923 1,821,033
Shares issued for dividends reinvested 8,046 --
Shares redeemed (5,253,395) (799,734)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 13,244,574 1,021,299
CLASS B
Shares sold 2,324,739 --
Shares redeemed (34,730) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,290,009 --
CLASS C
Shares sold 988,394 --
Shares redeemed (47,463) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 940,931 --
CLASS R
Shares sold 42,515 --
Shares redeemed (3,500) --
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 39,015 --
CLASS T
Shares sold 31 --
(A) EFFECTIVE APRIL 15, 1999, SHARES OF THE FUND WERE REDESIGNATED AS CLASS A
SHARES, AND THE FUND COMMENCED SELLING CLASS B, CLASS C AND CLASS R SHARES.
EFFECTIVE AUGUST 31, 1999, THE FUND COMMENCED SELLING CLASS T SHARES.
(B) FROM OCTOBER 13, 1997 (COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. Certain information reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during each period assuming you had reinvested all
dividends and distributions. These figures have been derived from the fund's
financial statements.
<TABLE>
Year Ended August 31,
CLASS A 1999 1998(a)
PER SHARE DATA ($):
<S> <C> <C>
Net asset value, beginning of period 12.11 12.50
Investment Operations:
Investment (loss)(b) (.18) (.10)
Net realized and unrealized gain (loss)
on investments 20.36 (.29)
Total from Investment Operations 20.18 (.39)
Distributions:
Dividends from net realized gain on investments (.08) --
Net asset value, end of period 32.21 12.11
TOTAL RETURN (%) 167.23(c) (3.12)(d,e)
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to average net assets 1.20 1.12(d)
Ratio of interest expense to average net assets -- .01(d)
Ratio of net investment (loss) to average net assets (.64) (.77)(d)
Decrease reflected in above expense ratios
due to undertakings by the Manager .02 .81(d)
Portfolio Turnover Rate 78.93 291.12(d)
Net Assets, end of period ($ X 1,000) 459,457 12,370
(A) FROM OCTOBER 13, 1997 (COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 1998.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
(E) CALCULATED BASED ON NET ASSET VALUE ON THE CLOSE OF BUSINESS ON OCTOBER 14,
1997 (COMMENCEMENT OF INITIAL OFFERING) TO AUGUST 31, 1998.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
Class B Class C Class R Class T
Shares(a) Shares(a) Shares(a) Shares(b)
PER SHARE DATA ($):
<S> <C> <C> <C> <C>
Net asset value, beginning of period 28.25 28.25 28.25 32.21
Investment Operations:
Investment (loss) (c) (.16) (.16) (.07) --
Net realized and unrealized gain (loss)
on investments 4.04 4.01 4.04 --
Total from Investment Operations 3.88 3.85 3.97 --
Net asset value, end of period 32.13 32.10 32.22 32.21
TOTAL RETURN (%) 13.73(d,e) 13.63(d,e) 14.05(d) --(e)
RATIOS/SUPPLEMENTAL DATA (%)
Ratio of expenses to average net assets .81(d) .82(d) .44(d) --
Ratio of net investment income (loss)
to average net assets (.61)(d) (.62)(d) (.24)(d) --
Portfolio Turnover Rate 78.93 78.93 78.93 78.93
Net Assets, end of period ($ X 1,000) 73,588 30,207 1,257 1
(A) FROM APRIL 15, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO AUGUST 31, 1999.
(B) COMMENCED OFFERING SHARES ON AUGUST 31, 1999.
(C) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(D) NOT ANNUALIZED.
(E) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Technology 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"), 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.
On February 25, 1999, shareholders approved a reorganization, effective April
15, 1999, in which the fund's name was changed to Dreyfus Premier Technology
Growth Fund. Shares of the fund have been redesignated as Class A shares and the
fund added Class B, Class C and Class R shares. On July 27, 1999, shareholders
approved a reorganization, effective August 31, 1999, in which the fund added
Class T shares.
The fund is authorized to issue 500 million of $.001 par value Capital Stock.
The fund currently offers five classes of shares: Class A (100 million shares
authorized) , Class B (100 million shares authorized), Class C (100 million
shares authorized) , Class R (100 million shares authorized) and Class T (100
million shares authorized) . Class A and Class T shares are subject to a sales
charge imposed at the time of purchase, Class B shares are subject to a
contingent deferred sales charge ("CDSC") imposed on Class B share redemptions
made within six years of purchase, Class C shares are subject to a CDSC imposed
on Class C shares redeemed within one year of purchase and Class R shares are
sold at net asset value per share only to institutional investors. Other
differences between the classes include the services offered to and the expenses
borne by each class and certain voting rights.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are The Fun
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
charged to that series' operations; expenses which are applicable to all series
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.
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 amounts 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 and 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.
<PAGE>
(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. Under the terms of the custody agreement, the fund received net
earnings credits of $6,732 during the period ended August 31, 1999 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(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 of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the best interests
of its shareholders, by complying with the applicable provisions of the Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
During the period ended August 31, 1999, the fund reclassed $1,590,565 between
accumulated undistributed investment income-net and accumulated net realized
gain (loss) on investments. Net assets were not affected by this
reclassification.
NOTE 2--Bank Lines of Credit:
The fund may borrow up to $5 million for leverage 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 bor
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
rowings. During the period ended August 31, 1999, the fund did not borrow under
either line of credit.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .75 of 1% of the value of the fund's average
daily net assets and is payable monthly. However, the Manager had undertaken
from September 1, 1998 through August 31, 1999 to reduce the management fee paid
by or reimburse such excess expenses of the fund, to the extent that the fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings,
Distribution Plan fees, Shareholder Service Plan fees and extraordinary
expenses, exceeded an annual rate of 1.00% of the value of the fund's average
daily net assets. The reduction in management fee, pursuant to the undertaking,
amounted to $47,855 during the period ended August 31, 1999.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained
$115,900 during the period ended August 31, 1999 from commissions earned on
sales of fund shares.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B, Class C and Class T shares pay the Distributor for
distributing their shares at an annual rate of .75 of 1%, .75 of 1% and .25 of
1% of the value of the average daily net assets of Class B, Class C and Class T
shares, respectively. During the period ended August 31, 1999, Class B and Class
C shares were charged $78,928 and $32,388, respectively, pursuant to the
Distribution Plan.
(c) Under the Shareholder Service Plan, Class A, Class B, Class C and Class T
shares pay the Distributor at an annual rate of .25 of 1% of the value of their
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
<PAGE>
related to the maintenance of shareholder accounts. The Distributor may make
payments to Service Agents (a securities dealer, financial institution or
industry professional) in respect of these services. The Distributor determines
the amounts to be paid to Service Agents. During the period ended August 31,
1999, Class A, Class B and Class C shares were charged $524,394, $26,309 and
$10,796, respectively, 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 August 31, 1999, the fund was charged $170,315 pursuant to the transfer
agent agreement.
The fund compensates Mellon under a custody agreement for providing custodial
services for the fund. During the period ended August 31, 1999, the fund was
charged $24,883 pursuant to the custody agreement.
(d) 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.
(e) Prior to April 15, 1999, a 1% redemption fee was charged and retained by the
fund on shares redeemed within fifteen days following the date of issuance,
including redemptions made through the use of the fund's Exchange privilege.
(f) During the period ended August 31, 1999, the fund incurred total brokerage
commissions of $202,514, of which $28,475 was paid to Dreyfus Brokerage
Services, a wholly-owned subsidiary of Mellon Bank Corporation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended August 31, 1999, amounted to
$567,614,378 and $163,282,122, respectively.
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At August 31, 1999, accumulated net unrealized appreciation on investments was
$107,077,233, consisting of $115,790,606 gross unrealized appreciation and
$8,713,373 gross unrealized depreciation.
At August 31, 1999, 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>
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Premier Technology Growth Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Premier Technology Growth Fund (one of
the Series constituting Dreyfus Growth and Value Fund, Inc.) as of August 31,
1999, and the related statements of operations for the year 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 audit.
We conducted our audit 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 by the custodian as of August 31, 1999 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 audit provides 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 Premier Technology Growth Fund at August 31, 1999, 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, 1999
The Fund
<PAGE>
IMPORTANT TAX INFORMATION (Unaudited)
The fund designates .073% of the ordinary dividends paid during the fiscal year
ended August 31, 1999 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2000 of the
percentage applicable to the preparation of their 1999 income tax returns.
<PAGE>
For More Information
Dreyfus Premier Technology 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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE
Call your financial representative
or 1-800-554-4611
BY MAIL Write to:
The Dreyfus Premier Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
(c) 1999 Dreyfus Service Corporation 255AR998
<PAGE>
- -------------------------------------------------------------------------------
Dreyfus
Aggressive Growth Fund
ANNUAL REPORT August 31, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
- -------------------------------------------------------------------------------
THE FUND
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
14 Financial Highlights
15 Notes to Financial Statements
19 Report of Independent Auditors
FOR MORE INFORMATION
- ---------------------------------------------------------------------------
Back Cover
<PAGE>
The Fund
Dreyfus Aggressive Growth Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Aggressive Growth Fund,
covering the 12-month period from September 1, 1998 through August 31, 1999.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Paul LaRocco.
The past year has been rewarding for most equity investors. When the reporting
period began, most sectors of the U.S. stock market were in the midst of a sharp
correction caused primarily by concerns regarding the spread of the global
financial crisis in overseas markets. Soon after 1999 began, however, those
fears abated. In fact, the U.S. economy remained strong, characterized by low
inflation and high levels of consumer spending. These conditions supported
continued strength in the stock market. Several major market indices set new
records, including the Dow Jones Industrial Average, the broader S&P 500 Index
and the technology-laden NASDAQ Index.
Beginning in April, many previously out-of-favor market sectors rallied
strongly, including value-oriented stocks. This has helped narrow the valuation
gap that had developed over the past several years between the growth and value
sectors of the stock market.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Aggressive Growth Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
September 14, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Paul LaRocco, Portfolio Manager
How did Dreyfus Aggressive Growth Fund perform relative to its benchmark?
For the 12-month period ended August 31, 1999, Dreyfus Aggressive Growth Fund
produced a total return of 26.64%.(1) This compares to a total return of 39.81%
for the Standard & Poor' s 500 Composite Stock Price Index, 28.36% for the
Russell 2000 Index, and 31.81% for the Russell Midcap Index.(2)
The primary reason for the fund's underperformance relative to the S&P 500 was
our emphasis on mid- and small-cap stocks during a period in which large-cap
stocks led the market. However, the fund also underperformed the mid- and
small-cap indices for the reporting period. This is due to the fact that over
the past year the portfolio has completed a transition from its emphasis on the
lower end of the small-cap spectrum to a broader focus on both small- and
mid-cap growth companies. While we believe this broader focus will better
position the fund over the long term, the restructuring period dampened our
overall performance.
What is the fund's investment approach?
The fund seeks capital appreciation by investing in the stocks of growth
companies of any size. In choosing stocks, the fund uses a "bottom-up" approach
that emphasizes individual stock selection over economic and industry trends. In
particular, the fund looks for companies with strong management, innovative
products and services, superior industry positions and the potential for strong
earnings growth rates. Further, the fund's investments in small- and mid-cap
companies carry additional risks because their earnings are less predictable,
their share prices more volatile and their securities less liquid than larger
companies.
The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
While the fund looks for companies with the potential for strong earnings growth
rates, some of the fund' s investments currently may be experiencing losses
What other factors influenced the fund's performance?
Many of the factors that held back the fund's performance during the first six
months of the reporting period reversed themselves during the last six months,
contributing to the fund's overall returns. Most significantly, in April, market
sentiment began to shift away from domestic large-cap growth stocks to include a
broader group of companies, including small- and mid-cap names. In this
environment, many of the stocks in our portfolio provided significant gains.
In addition to a broader domestic stock market, many overseas stock markets
began to show signs that the worst of last fall's economic troubles were behind
them. As these economies began to stabilize, import and export sales began to
improve, which created a more favorable outlook for companies doing business in
these nations.
What other strategies did the fund use and how did they affect performance?
The fund was overweight in the technology sector, which proved to be beneficial.
In particular, two of our electronics manufacturing holdings, Jabil Circuit and
Sanmina, were profitable. Both of these companies are benefiting from the
outsourcing of manufacturing activities by the large global telecommunications
equipment makers. In addition, our holdings in SDL, a semiconductor
manufacturer, and Citrix Systems, a software maker, have helped boost
performance.
We were also pleased with many of our specialty retail holdings, particularly
Williams-Sonoma, a company that markets high-end cookware and household items.
The stock has performed well, primarily because of the company's decision to
expand its services to include sales over the Internet. American Eagle
Outfitters, a clothing outfitter that specializes in teen fashions, has also
performed well during the period, driven by spending from this fast growing age
group.
<PAGE>
On the other hand, some of our business services companies reported negative
returns, including two consulting firms, Navigant Consulting and U.S. Web.
Navigant Consulting offers consulting services to the electric utility industry,
but negative psychology regarding this industry dampened stock performance. U.S.
Web, a firm that develops Internet strategies and websites for companies that
want to tap into the electronic commerce market, performed poorly during the
period. This was because investors were concerned about the company's ability to
successfully handle its large number of recent acquisitions.
Thank you for your continued investment in Dreyfus Aggressive Growth Fund
September 14, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
(2) 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 RUSSELL 2000 INDEX IS A WIDELY ACCEPTED,
UNMANAGED INDEX OF SMALL-CAP STOCK PERFORMANCE. THE RUSSELL MIDCAP INDEX IS A
WIDELY ACCEPTED, UNMANAGED INDEX OF MEDIUM-CAP STOCK MARKET PERFORMANCE.
The Fund
<PAGE>
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Aggressive Growth
Fund and the Standard & Poor's 500 Composite Stock Price Index
- --------------------------------------------------------------------------------
Average Annual Total Returns AS OF 8/31/99
Inception
1 Year (9/29/95)
- --------------------------------------------------------------------------------
FUND 26.64% (3.57)%
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
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.
$24,215
Standard & Poor's 500 Composite Stock Index((+)
$8,672
Dreyfus Aggressive Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS
August 31, 1999
(CONTINUED)
<TABLE>
COMMON STOCKS--86.1% Shares Value ($)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE--1.4%
L-3 Communications Holdings 10,850 (a) 430,609
APPAREL--1.2%
Pacific Sunwear of California 15,950 (a) 370,838
BIOTECHNOLOGY--1.9%
Gilead Sciences 7,250 (a) 565,047
BUSINESS SERVICES--5.3%
Affiliated Computer Services, Cl. A 9,350 (a) 399,712
Concord EFS 19,525 (a) 724,866
Digex 6,000 199,500
USWeb 14,250 (a) 277,875
1,601,953
COMPUTER EQUIPMENT--.9%
Newbridge Networks 9,675 (a) 265,458
COMPUTER SOFTWARE/SERVICES--10.1%
Citrix Systems 11,400 (a) 649,800
Compuware 16,700 (a) 504,131
Convergys 19,625 (a) 404,765
Electronics for Imaging 3,525 (a) 206,653
Peregrine Systems 9,425 (a) 311,025
Siebel Systems 5,550 (a) 381,216
Sykes Enterprises 17,075 (a) 409,800
Verio 4,750 (a) 176,640
VerticalNet 450 (a) 15,525
3,059,555
CONSUMER SERVICES--3.8%
National Information Consortium 6,925 114,262
Navigant Consulting 20,875 (a) 915,891
Sotheby's Holdings, Cl. A 4,700 136,888
1,167,041
DISTRIBUTION--.7%
Patterson Dental 5,000 (a) 205,000
ELECTRONICS--3.2%
Celestica 7,650 (a) 330,862
Jabil Circuit 9,125 (a) 408,914
Sanmina 3,225 (a) 241,875
981,651
ENVIRONMENTAL SERVICES--1.8%
Republic Services, Cl. A 50,050 (a) 544,294
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES--1.7%
Metris Cos. 18,650 514,041
FOOD & BEVERAGES--.9%
Keebler Foods 9,200 (a) 274,275
HEALTHCARE SERVICES--5.0%
ChiRex 22,988 (a) 695,387
Pharmaceutical Product Development 10,250 (a) 207,562
Quintiles Transnational 8,575 (a) 307,092
Renal Care Group 16,925 (a) 323,691
1,533,732
INSURANCE--.7%
XL Capital, Cl. A 4,375 220,117
LEISURE & ENTERTAINMENT--3.6%
Fairfield Communities 26,575 (a) 345,475
Premier Parks 9,125 (a) 298,844
Station Casinos 9,200 (a) 186,300
Sunterra 20,000 (a) 263,750
1,094,369
MANUFACTURING--2.9%
Astec Industries 5,975 (a) 202,403
Tyco International 3,550 359,659
Zomax 14,550 (a) 331,922
893,984
MEDICAL SUPPLIES & EQUIPMENT--2.1%
CONMED 9,050 (a) 253,400
Sybron International 14,500 (a) 373,375
626,775
OIL & GAS--2.5%
Hanover Compressor 7,800 (a) 280,312
Weatherford International 13,325 (a) 474,703
755,015
OIL SERVICES--4.5%
BJ Services 15,700 (a) 537,725
Baker Hughes 10,950 372,300
Halliburton 4,950 229,556
Nabors Industries 8,325 (a) 224,775
1,364,356
PHARMACEUTICALS--1.6%
Alpharma, Cl. A 11,200 379,400
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
- ---------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS (CONTINUED)
Drugstore.com 1,750 104,781
484,181
PUBLISHING & BROADCASTING--.8%
EchoStar Communications 2,950 (a) 246,694
RESTAURANTS--2.6%
Dave & Buster's 4,575 (a) 53,756
Outback Steakhouse 12,425 (a) 368,091
Papa John's International 9,425 (a) 374,644
796,491
RETAIL--9.0%
American Eagle Outfitters 7,625 (a) 299,281
Cheap Tickets 2,650 (a) 98,050
Dollar Tree Stores 5,375 (a) 177,375
Fastenal 6,625 332,078
Intellicell (Warrants) 76,250 (a) --
Linens 'n Things 8,275 (a) 283,419
Michaels Stores 8,550 (a) 262,378
TJX Companies 10,150 293,081
United Rentals 11,962 (a) 292,321
Williams-Sonoma 11,100 (a) 432,900
Yankee Candle 15,800 281,438
2,752,321
SEMICONDUCTORS & EQUIPMENT--9.0%
ASM Lithography Holding 2,550 (a) 160,969
Atmel 4,925 (a) 193,614
Brooks Automation 16,450 (a) 357,787
Flextronics International 6,700 (a) 393,206
JDS Uniphase 3,900 (a) 413,644
Lam Research 6,825 (a) 385,186
Maxim Integrated Products 2,650 (a) 178,378
Novellus Systems 2,100 (a) 113,269
SDL 3,025 (a) 247,672
Teradyne 4,550 (a) 309,685
2,753,410
TELECOMMUNICATION EQUIPMENT--3.0%
ANTEC 7,175 (a) 326,911
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
- ---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION EQUIPMENT (CONTINUED)
CIENA 11,750 (a) 412,719
Sawtek 5,500 (a) 181,844
921,474
TELECOMMUNICATION SERVICES--4.0%
Allegiance Telecom 4,425 (a) 266,053
McLeod USA, Cl. A 8,300 (a) 277,013
Time Warner Telecom, Cl. A 5,575 150,525
WinStar Communications 10,150 (a) 515,747
1,209,338
UTILITIES--1.9%
Montana Power 8,900 275,344
Potomac Electric Power 11,700 310,050
585,394
TOTAL COMMON STOCKS
(cost $23,067,528) 26,217,413
- ------------------------------------------------------------------------------------------------------------------------------------
Principal
CONVERTIBLE NOTES--.7% Amount ($) Value ($)
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS;
Sanmina, Sub. Notes,
4.25%, 2004
(cost $174,000) 174,000 (b) 190,965
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS--13.7%
- ---------------------------------------------------------------------------------------------------------------------------------
AGENCY DISCOUNT NOTES;
Student Loan Marketing Association,
5.40%, 9/1/99
(cost $4,175,000) 4,175,000 4,175,000
TOTAL INVESTMENTS (cost $27,416,528) 100.5% 30,583,378
LIABILITIES, LESS CASH AND RECEIVABLES (.5%) (138,180)
NET ASSETS 100.0% 30,445,198
(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 AUGUST
31, 1999, THIS SECURITY AMOUNTED TO $190,965 OR APPROXIMATELY .7% OF
NET ASSETS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1999
Cost Value
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS ($):
Investments in securities--See Statement of Investments 27,416,528 30,583,378
Cash 63,741
Receivable for investment securities sold 431,805
Interest and dividends receivable 4,397
Prepaid expenses 5,873
31,089,194
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 24,606
Due to Distributor 6,592
Payable for investment securities purchased 524,771
Payable for shares of Common Stock redeemed 42,571
Accrued expenses 45,456
643,996
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 30,445,198
- ------------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 91,548,980
Accumulated net realized gain (loss) on investments (64,270,632)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 3,166,850
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($) 30,445,198
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 2,809,432
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
10.84
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year Ended August 31, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME ($):
INCOME:
Interest 89,635
Cash dividends (net of $549 foreign taxes withheld at source) 46,995
TOTAL INCOME 136,630
EXPENSES:
Management fee--Note 3(a) 241,817
Shareholder servicing costs--Note 3(b) 216,767
Prospectus and shareholders' reports 29,768
Registration fees 28,340
Custodian fees--Note 3(b) 14,580
Directors' fees and expenses--Note 3(c) 10,856
Professional fees 6,893
Miscellaneous 2,603
TOTAL EXPENSES 551,624
Less--reduction in management fee due to
undertaking--Note 3(a) (186,565)
NET EXPENSES 365,059
INVESTMENT (LOSS) (228,429)
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (22,247,312)
Net unrealized appreciation (depreciation) on investments 30,125,896
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 7,878,584
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 7,650,155
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
----------------------------------
1999 1998
- --------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS ($):
Investment (loss) (228,429) (807,227)
Net realized gain (loss) on investments (22,247,312) (32,526,537)
Net unrealized appreciation (depreciation)
on investments 30,125,896 (19,139,188)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 7,650,155 (52,472,952)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 7,769,955 32,766,191
Cost of shares redeemed (15,943,273) (80,928,451)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (8,173,318) (48,162,260)
TOTAL INCREASE (DECREASE) IN NET ASSETS (523,163) (100,635,212)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 30,968,361 131,603,573
END OF PERIOD 30,445,198 30,968,361
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 805,062 1,927,600
Shares redeemed (1,611,151) (4,870,650)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (806,089) (2,943,050)
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended August 31,
-------------------------------------
1999 1998 1997 1996(a)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 8.57 20.07 22.71 12.50
Investment Operations:
Investment (loss) (.07)(b) (.16)(b) (.26) (.10)
Net realized and unrealized
gain (loss) on investments 2.34 (11.34) (2.38) 10.31
Total from Investment Operations 2.27 (11.50) (2.64) 10.21
Net asset value, end of period 10.84 8.57 20.07 22.71
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 26.64 (57.30) (11.63) 81.68(c)
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.13 1.27 1.34 1.16(c)
Ratio of interest expense and loan
commitment fees to average net assets -- .00(d) .39 .24(c
Ratio of investment (loss)
to average net assets (.71) (.95) (1.62) (1.04)(c
Decrease reflected in above expense ratios
due to undertakings by the Manager .58 .29 .09 .17(c
Portfolio Turnover Rate 168.00 86.53 76.45 125.17(c)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 30,445 30,968 131,604 119,341
(A) FROM SEPTEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
(D) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
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.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series 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.
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 custody agreement, the fund received net
earnings credits of $2,643 during the period ended August 31, 1999 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(c) 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.
(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 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 $59,528,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to August 31, 1999. This amount
is calculated based on Federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
If not applied, $33,000 of the carryover expires in fiscal 2004, $5,794,000
expires in fiscal 2005, $1,778,000 expires in fiscal 2006 and $51,923,000
expires in fiscal 2007.
<PAGE>
During the period ended August 31, 1999, the fund reclassed $228,429 from
accumulated undistributed investment income-net 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. During the period ended August 31, 1999, the fund did not borrow
under the line of credit.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .75 of 1% of the value of the fund's average
daily net assets and is payable monthly. The Manager has undertaken, from
September 1, 1998 through August 31, 2000, 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 $186,565 during the period ended August
31, 1999.
(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
deter
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
mines the amounts to be paid to Service Agents. During the period ended August
31, 1999, the fund was charged $80,606 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 August 31, 1999, the fund was charged $94,630 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, 1999, the fund was
charged $14,580 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 shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund' s Exchange privilege.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended August 31, 1999, amounted to
$51,128,195 and $62,887,414, respectively.
At August 31, 1999, accumulated net unrealized appreciation on investments was
$3,166,850, consisting of $4,497,049 gross unrealized appreciation and
$1,330,199 gross unrealized depreciation.
At August 31, 1999, 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>
REPORT OF 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,
1999, 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, 1999 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, 1999, and 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, 1999
The Fund
<PAGE>
NOTES
<PAGE>
The Fund
<PAGE>
For More Information
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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 256AR998
<PAGE>
- -------------------------------------------------------------------------------
Dreyfus
Aggressive Value
Fund
ANNUAL REPORT
August 31, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
- -------------------------------------------------------------------------------
THE FUND
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
10 Statement of Assets and Liabilities
11 Statement of Operations
12 Statement of Changes in Net Assets
13 Financial Highlights
14 Notes to Financial Statements
18 Report of Independent Auditors
19 Important Tax Information
FOR MORE INFORMATION
Back Cover
<PAGE>
The Fund
Dreyfus
Aggressive Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Aggressive Value Fund,
covering the 12-month period from September 1, 1998 through August 31, 1999.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Timothy M. Ghriskey.
The past year has been rewarding for most equity investors. When the reporting
period began, most sectors of the U.S. stock market were in the midst of a sharp
correction caused primarily by concerns regarding the spread of the global
financial crisis in overseas markets. Soon after 1999 began, however, those
fears abated. In fact, the U.S. economy remained strong, characterized by low
inflation and high levels of consumer spending. These conditions supported
continued strength in the stock market. Several major market indices set new
records, including the Dow Jones Industrial Average, the broader S&P 500 Index
and the technology-laden NASDAQ Index.
Beginning in April, many previously out-of-favor market sectors rallied
strongly, including value-oriented stocks. This has helped narrow the valuation
gap that had developed over the past several years between the growth and value
sectors of the stock market.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Aggressive Value Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
September 14, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Timothy M. Ghriskey, Senior Portfolio Manager
How did Dreyfus Aggressive Value Fund perform relative to its benchmark?
For the 12-month period ended August 31, 1999, Dreyfus Aggressive Value Fund
produced a total return of 25.41% .(1) This compares with a total return of
30.08% for the fund's new benchmark, the Russell 1000 Value Index, for the same
period.(2) However, during most of the period, the fund's two benchmarks were
the Wilshire Large Company Value Index and the Wilshire Midcap Value Index,
which returned 22.68% and 11.71%, respectively, for the same period.(3)
We attribute our modest underperformance to the change to the Russell 1000 Value
Index as our new benchmark, which occurred late in the period and shifted the
fund' s focus away from mid- and large-cap stocks to instead focus on large-cap
stocks. Further discussion about this benchmark change follows the line-graph
comparison contained in this annual report.
What is the fund's investment approach?
When selecting stocks for the fund, we begin with a proprietary computer model
that identifies suitable candidates for the fund. We then reduce that list of
names by conducting fundamental research, and by meeting with the management
teams of the remaining candidates. Specifically, we are looking for factors that
could signal a rise in the stock's price, including new products or markets,
opportunities for gaining greater market share, more effective management teams,
or positive changes in the company's corporate structure or market perception.
What other factors influenced the fund's performance?
In many ways, the first and second halves of the fund's 12-month reporting
period experienced widely disparate market conditions. Many of the factors that
held back the fund's performance during the first six months of the reporting
period reversed themselves during the last six months, The Fun
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
boosting the fund' s overall returns. Most significantly, in April, market
sentiment began to shift away from domestic large-cap growth stocks to include a
broader group of companies. During this period, small- and mid-cap companies
were coming into favor just as the portfolio was shifting its focus to
concentrate on large-cap companies.
The fund's strongest gains during the period stemmed from the technology sector,
where we had an overweighted position relative to the Russell benchmark. In
particular, we enjoyed significant gains from our holdings in Intel, a
semiconductor company; P-E Biosystems, a company that manufactures medical
research equipment used to map the human gene; and Computer Associates
International, a computer software maker whose stock price more than doubled
during the time that we owned it. However, not all of our technology holdings
performed well. For example, our investments in Storage Technology, a data
storage and hardware equipment maker, suffered in large part because of a change
in its distribution agreement with International Business Machines.
In the healthcare sector, an increasingly restrictive regulatory environment
hurt many stocks in the sector. However, our security selection strategy within
the healthcare sector resulted in significant gains for the fund. Examples
include Biogen, a biotechnology company; Allergan, largely a biotechnology
company; and Columbia/HCA Healthcare, an owner and manager of hospitals. In the
cases of Allergan and Columbia/HCA Healthcare, both companies' stock price
benefited as a result of strong corporate restructuring efforts.
On the other hand, the fund experienced weak performance from two key value
sectors: basic materials and capital goods. In both cases, we had reduced the
fund' s positions at the beginning of the year because the sectors had been
performing poorly. As a result, when these types of stocks began to improve
during the mid-April move toward value, we failed to fully participate in those
sectors' improvements.
<PAGE>
What is the fund's current strategy?
We have been encouraged by the current stock market environment and believe it
offers many positive investment opportunities for the fund. We plan to continue
to offer investors a well-diversified portfolio of large-cap, value-oriented
stocks that we believe has the potential to outperform the Russell 1000 Value
Index.
September 14, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- REFLECTS THE REINVESTMENT OF
INCOME DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAINS DISTRIBUTIONS. THE RUSSELL
1000 VALUE INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL 1000 COMPANIES WITH
LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED GROWTH VALUES. THE RUSSELL 1000
INDEX MEASURES THE PERFORMANCE OF THE 1,000 LARGEST COMPANIES IN THE RUSSELL
3000 INDEX, WHICH REPRESENT APPROXIMATELY 89% OF THE TOTAL MARKET CAPITALIZATION
OF THE RUSSELL 3000 INDEX.
(3) SOURCE: WILSHIRE ASSOCIATES, INC. -- THE WILSHIRE LARGE COMPANY VALUE INDEX
IS AN UNMANAGED INDEX REFLECTING THE PERFORMANCE OF THE LARGEST 750 STOCKS IN
THE WILSHIRE 5000 INDEX THAT MEET CERTAIN STATISTICAL CRITERIA FOR "VALUE." THE
WILSHIRE MIDCAP VALUE INDEX CONSISTS OF THE MEDIUM-SIZED COMPANIES IN THE
WILSHIRE 5000 INDEX THAT MEET CERTAIN STATISTICAL CRITERIA FOR "VALUE."
The Fund
<PAGE>
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Aggressive Value
Fund with the Russell 1000 Value Index, the Wilshire Midcap Value Index and the
Wilshire Large Company Value Index
Average Annual Total Returns AS OF 8/31/99
Inception
1 Year (9/29/95)
FUND 25.41% 25.09%
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC..
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN DREYFUS AGGRESSIVE VALUE
FUND ON 9/29/95 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE ON THAT DATE IN
EACH OF THE RUSSELL 1000 VALUE INDEX, THE WILSHIRE MIDCAP VALUE INDEX, AND THE
WILSHIRE LARGE COMPANY VALUE INDEX. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS
ARE REINVESTED. THIS IS THE FIRST YEAR IN WHICH COMPARATIVE PERFORMANCE IS BEING
SHOWN FOR THE RUSSELL 1000 VALUE INDEX, WHICH THIS YEAR HAS BEEN SELECTED AS THE
PRIMARY INDEX FOR COMPARING THE FUND'S PERFORMANCE ON AN ONGOING BASIS, BASED ON
THE FUND'S AND THE INDEX'S VALUE ORIENTATION. THE WILSHIRE MIDCAP VALUE INDEX
AND THE WILSHIRE LARGE COMPANY VALUE INDEX, WHICH WERE USED RESPECTIVELY AS THE
FUND'S PRIMARY AND SECONDARY BENCHMARK INDICES LAST YEAR, ARE BEING REPLACED BY
THE RUSSELL 1000 VALUE INDEX BECAUSE OF THE LACK OF ADEQUATE INFORMATION MADE
AVAILABLE BY WILSHIRE TO THE FUND'S MANAGER ABOUT THE COMPONENTS OF EACH
WILSHIRE INDEX. PERFORMANCE FOR THE WILSHIRE INDICES WILL NOT BE PROVIDED WITH
THE NEXT ANNUAL REPORT, BUT IS PROVIDED HEREWITH PURSUANT TO APPLICABLE
REGULATIONS. THE RUSSELL 1000 VALUE INDEX USES COMPANY PRICE-TO-BOOK RATIOS AND
LONG-TERM GROWTH RATES TO CALCULATE A COMPOSITE RANKING WHICH IS USED TO
DETERMINE IF A STOCK IS "GROWTH" OR "VALUE." THE WILSHIRE MIDCAP VALUE INDEX IS
CONSTRUCTED BY USING A BLEND OF PRICE-TO-BOOK AND FORECAST PRICE-TO-EARNINGS
RATIOS. THE 500 STOCKS THAT RANK IN SIZE FROM THE 501ST TO THE 1000TH WITHIN THE
WILSHIRE 5000 ARE RANKED BASED ON A STYLE SCORE THAT IS 75% PRICE-TO-EARNINGS
RATIO AND 25% FORECAST P/E. THE UNIVERSE IS DIVIDED SO THAT COMPANIES THAT
REPRESENT HALF OF THE TOTAL CAPITALIZATION FALL INTO GROWTH AND THE REMAINDER
ARE PLACED INTO VALUE. THE WILSHIRE LARGE COMPANY VALUE INDEX ALSO IS
CONSTRUCTED BY USING A BLEND OF PRICE-TO-BOOK AND FORECAST PRICE-TO-EARNINGS
RATIOS. THE LARGEST 750 STOCKS IN THE WILSHIRE 5000 ARE RANKED BASED ON A STYLE
SCORE THAT IS 75% PRICE-TO-EARNINGS RATIO AND 25% FORECAST P/E. THE UNIVERSE
ALSO IS DIVIDED SO THAT COMPANIES THAT REPRESENT HALF OF THE TOTAL
CAPITALIZATION FALL INTO GROWTH AND THE REMAINDER ARE PLACED INTO VALUE. THE
FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE
FEES AND EXPENSES. NONE OF THE FOREGOING INDICES 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.
$24,053
$21,391
$19,137
$15,029
<PAGE>
<TABLE>
STATEMENT OF INVESTMENTS
August 31, 1999
COMMON STOCKS--94.4% Shares Value ($)
CONSUMER DURABLES--4.3%
<S> <C> <C>
Black & Decker 30,500 1,605,062
General Motors 23,000 1,520,875
3,125,937
CONSUMER NON-DURABLES--2.8%
PepsiCo 42,500 1,450,312
Philip Morris Cos. 15,500 580,281
2,030,593
CONSUMER SERVICES--4.5%
Cendant 60,400 (a) 1,083,425
Disney (Walt) 25,500 707,625
Viacom, Cl. B 8,700 (a) 365,944
Wendy's International 40,000 1,120,000
3,276,994
ELECTRONIC TECHNOLOGY--6.8%
Apple Computer 12,600 (a) 822,150
Hewlett-Packard 5,400 569,025
Intel 27,400 2,251,938
International Business Machines 4,500 560,531
Lockheed Martin 19,900 736,300
4,939,944
ENERGY MINERALS--10.2%
BP Amoco, A.D.S. 13,300 1,491,262
Mobil 32,800 3,357,900
Royal Dutch Petroleum (New York Shares) 17,400 1,076,625
Texaco 22,400 1,422,400
7,348,187
FINANCE--19.3%
Bank of New York 40,800 1,458,600
Chase Manhattan 28,300 2,368,356
Citigroup 70,700 3,141,731
First Tennessee National 38,200 1,222,400
Fleet Financial Group 38,700 1,540,744
Freddie Mac 18,100 932,150
Morgan (J.P.) & Co. 11,200 1,446,900
Morgan Stanley Dean Witter & Co. 10,700 918,194
Wells Fargo 23,300 927,631
13,956,706
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
HEALTH SERVICES--3.0%
Columbia/HCA Healthcare 62,600 1,541,525
Foundation Health Systems, Cl. A 51,500 (a) 656,625
2,198,150
HEALTH TECHNOLOGY--3.4%
Lilly (Eli) & Co. 23,200 1,731,300
Watson Pharmaceuticals 19,800 (a) 710,325
2,441,625
INSURANCE--6.1%
American General 21,800 1,547,800
American International Group 23,750 2,201,328
CIGNA 7,300 655,631
4,404,759
NON-ENERGY MINERALS--1.9%
Alcoa 20,700 1,336,444
PROCESS INDUSTRIES--6.1%
Dow Chemical 12,800 1,454,400
Goodrich (B.F.) 21,056 777,756
International Paper 22,500 1,058,906
Olin 52,800 749,100
Temple-Inland 5,400 334,800
4,374,962
PRODUCER MANUFACTURING--6.8%
General Electric 13,900 1,561,144
Honeywell 13,700 1,554,950
Tyco International 18,000 1,823,625
4,939,719
TECHNOLOGY SERVICES--3.4%
Computer Associates International 30,000 1,695,000
Electronic Data Systems 13,000 729,625
2,424,625
TRANSPORTATION--1.7%
CNF Transportation 32,100 1,249,894
UTILITIES--14.1%
Ameritech 30,700 1,937,938
Bell Atlantic 35,300 2,162,125
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
UTILITIES (CONTINUED)
BellSouth 31,700 1,434,425
Coastal 37,200 1,611,225
Enron 9,600 402,000
GTE 2,900 199,013
Illinova 12,000 382,500
MCI WorldCom 7,000 (a) 530,250
Sprint (PCS Group) 25,000 1,493,750
10,153,226
TOTAL COMMON STOCKS
(cost $60,880,071) 68,201,765
Principal
SHORT-TERM INVESTMENTS--1.5% Amount ($) Value ($)
U.S. TREASURY BILLS:
4.57%, 10/21/1999 10,000 9,935
4.70%, 11/4/1999 30,000 29,753
4.71%, 11/18/1999 356,000 352,351
4.81%, 11/26/1999 704,000 695,925
TOTAL SHORT-TERM INVESTMENTS
(cost $1,087,962) 1,087,964
TOTAL INVESTMENTS (cost $61,968,033) 95.9% 69,289,729
CASH AND RECEIVABLES (NET) 4.1% 2,954,226
NET ASSETS 100.0% 72,243,955
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1999
Cost Value
ASSETS ($):
<S> <C> <C>
Investments in securities--See Statement of Investments 61,968,033 69,289,729
Cash 755,547
Receivable for investment securities sold 8,391,806
Dividends receivable 136,836
Receivable for shares of Common Stock subscribed 2
Prepaid expenses 10,957
78,584,877
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 59,450
Due to Distributor 15,937
Payable for investment securities purchased 6,184,897
Payable for shares of Common Stock redeemed 35,347
Accrued expenses 45,291
6,340,922
NET ASSETS ($) 72,243,955
COMPOSITION OF NET ASSETS ($):
Paid-in capital 58,618,340
Accumulated undistributed investment income--net 197,100
Accumulated net realized gain (loss) on investments 6,106,819
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 7,321,696
NET ASSETS ($) 72,243,955
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 2,946,775
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 24.52
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year Ended August 31, 1999
INVESTMENT INCOME ($):
INCOME:
<S> <C> <C>
Cash dividends (net of $14,476 foreign taxes withheld at source) 1,358,989
Interest 61,557
TOTAL INCOME 1,420,546
EXPENSES:
Management fee--Note 3(a) 703,532
Shareholder servicing costs--Note 3(b) 387,660
Professional fees 40,917
Prospectus and shareholders' reports 36,869
Registration fees 21,899
Custodian fees--Note 3(b) 15,140
Interest expense--Note 2 4,836
Directors' fees and expenses--Note 3(c) 4,250
Miscellaneous 2,769
TOTAL EXPENSES 1,217,872
INVESTMENT INCOME--NET 202,674
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 6,127,424
Net unrealized appreciation (depreciation) on investments 17,405,513
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 23,532,937
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 23,735,611
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
1999 1998
OPERATIONS ($):
<S> <C> <C>
Investment income--net 202,674 242,141
Net realized gain (loss) on investments 6,127,424 8,680,708
Net unrealized appreciation (depreciation)
on investments 17,405,513 (27,545,197)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 23,735,611 (18,622,348)
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (187,969) (158,949)
Net realized gain on investments (4,934,176) (10,776,662)
TOTAL DIVIDENDS (5,122,145) (10,935,611)
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 27,456,779 66,660,408
Dividends reinvested 4,906,800 10,405,246
Cost of shares redeemed (70,641,639) (115,127,697)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (38,278,060) (38,062,043)
TOTAL INCREASE (DECREASE) IN NET ASSETS (19,664,594) (67,620,002)
NET ASSETS ($):
Beginning of Period 91,908,549 159,528,551
END OF PERIOD 72,243,955 91,908,549
Undistributed investment income--net 197,100 182,395
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,151,489 2,595,360
Shares issued for dividends reinvested 206,689 430,859
Shares redeemed (2,905,607) (4,573,819)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,547,429) (1,547,600)
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased
(or decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended August 31,
1999 1998 1997 1996(a)
PER SHARE DATA ($):
<S> <C> <C> <C> <C>
Net asset value, beginning of period 20.45 26.40 20.08 12.50
Investment Operations:
Investment income--net .05(b) .05 .02 .09
Net realized and unrealized
gain (loss) on investments 5.11 (4.27) 8.22 7.53
Total from Investment Operations 5.16 (4.22) 8.24 7.62
Distributions:
Dividends from investment income--net (.04) (.03) (.05) (.04)
Dividends from net realized gain
on investments (1.05) (1.70) (1.87) --
Total Distributions (1.09) (1.73) (1.92) (.04)
Net asset value, end of period 24.52 20.45 26.40 20.08
TOTAL RETURN (%) 25.41 (17.02) 43.57 61.00(c)
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 1.29 1.27 1.24 1.17(c)
Ratio of interest expense to
average net assets .01 .01 -- --
Ratio of net investment income to
average net assets .22 .16 .18 .55(c)
Decrease reflected in above expense
ratios due to undertakings by the
Manager -- -- .14 .63(c)
Portfolio Turnover Rate 225.12 170.46 120.71 260.98(c)
Net Assets, end of period
($ x 1,000) 72,244 91,909 159,529 9,711
(A) FROM SEPTEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Aggressive 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, 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.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series 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.
Forward currency exchange contracts are valued at the forward rate.
<PAGE>
(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 amounts 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. Under the terms of the custody agreement, the fund receives earnings
credits based on available cash balances left on deposit.
(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 of 1986, as amended (the "Code"). To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the fund not to distribute such gain.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as
a regulated investment company, if such qualification is in the The Fun
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
NOTE 2--Bank Lines of Credit:
The fund may borrow up to $5 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 August 31, 1999 was approximately $93,700, with a
related weighted average interest rate of 5.16%.
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
August 31, 1999, the fund was charged $234,511 pursuant to the Shareholder
Services Plan.
<PAGE>
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, 1999, the fund was charged $97,473 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, 1999, the fund was
charged $15,140 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 shares redeemed
within fifteen days following the date of issuance, including redemptions made
through use of the fund's Exchange privilege.
(e) During the period ended August 31, 1999, the fund incurred total brokerage
commissions of $547,239, of which $24,111 was paid to Dreyfus Brokerage
Services, a wholly-owned subsidiary of Mellon Bank Corporation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended August 31, 1999, amounted to
$203,904,666 and $247,126,210, respectively.
At August 31, 1999, accumulated net unrealized appreciation on investments was
$7,321,696, consisting of $8,803,775 gross unrealized appreciation and
$1,482,079 gross unrealized depreciation.
At August 31, 1999, 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).
The Fund
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Aggressive Value Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Aggressive Value Fund (one of the
Series constituting Dreyfus Growth and Value Funds, Inc.), as of August 31,
1999, 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, 1999 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 Value Fund at August 31, 1999, and 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, 1999
<PAGE>
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $1.02 per share as a
long-term capital gain distribution of the $1.09 per share paid on December 2,
1998.
The fund also designates 49.02% of the ordinary dividends paid during the fiscal
year ended August 31, 1999 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2000 of the
percentage applicable to the preparation of their 1999 income tax returns.
The Fund
<PAGE>
NOTES
<PAGE>
For More Information
Dreyfus
Aggressive 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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 257AR998
<PAGE>
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Dreyfus
Midcap Value Fund
ANNUAL REPORT August 31, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
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THE FUND
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
14 Financial Highlights
15 Notes to Financial Statements
19 Report of Independent Auditors
20 Important Tax Information
FOR MORE INFORMATION
Back Cover
<PAGE>
The Fund
Dreyfus Midcap
Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Midcap Value Fund,
covering the 12-month period from September 1, 1998 through August 31, 1999.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Peter Higgins.
The past year has been rewarding for many equity investors, including those who
own mid-capitalization stocks. When the reporting period began, most sectors of
the U.S. stock market were in the midst of a sharp correction caused primarily
by concerns regarding the spread of the global financial crisis in overseas
markets. Soon after 1999 began, however, those fears abated. In fact, the U.S.
economy remained strong, characterized by low inflation and high levels of
consumer spending.
Beginning in April, many previously out-of-favor market sectors have rallied
strongly -- including midcap stocks -- as investors became increasingly
attracted to their low prices relative to expected earnings. This has helped
narrow the valuation gap that had developed over the past several years between
the large- and mid-capitalization sectors of the stock market.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Midcap Value Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
September 14, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Peter Higgins, Portfolio Manager
How did Dreyfus Midcap Value Fund perform relative to its benchmark?
For the 12-month period ended August 31, 1999, Dreyfus Midcap Value Fund
produced a total return of 55.71%.(1) This compares favorably with the return
provided by the Russell Midcap Value Index, which produced a total return of
21.87% for the same period.(2)
We attribute the fund's strong performance to a combination of positive factors.
First, we made some very good stock selections during the period. Second, our
overall performance benefited from a shift in market sentiment away from the
long-held preference for large-cap growth stocks to smaller and value-oriented
stocks. Because the fund' s policy is to invest in a wide range of companies
across different market sectors, we were well positioned to benefit when stocks
in various industries came into favor.
What is the fund's investment approach?
The fund's goal is to surpass the performance of the Russell Midcap Value Index
by investing in the stocks of companies with total market values between $400
million and $4 billion.(3)
When selecting stocks for the fund, we emphasize three key factors: VALUE, or
how the stock is priced relative to its intrinsic worth based on a variety of
traditional measures; BUSINESS HEALTH, as defined by the company's overall
efficiency and profitability; and BUSINESS MOMENTUM, or the presence of a
catalyst -- such as corporate restructuring, change in management or a spin-off
- -- that could trigger an increase in the stock's price in the near term
We typically sell a stock when we no longer consider it attractively valued,
when it appears less likely to benefit from the current market and economic
environment, when it shows deteriorating fundamentals or declining momentum, or
when its performance falls short of our expectations.
The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
In many ways, the first and second halves of the fund's 12-month reporting
period experienced widely disparate market conditions. Many of the factors that
held back the fund's performance during the first six months of the reporting
period reversed themselves during the last six months, boosting the fund's
overall returns. Most of these changes came in March and April, when market
sentiment shifted away from large-cap growth names to include a broader group of
companies, including small- and mid-cap names. In such an environment, many of
the stocks in the portfolio reported positive earnings surprises, and their
stock prices flourished.
In addition, many overseas stock markets began to show signs that the worst of
last fall' s economic troubles were behind them. As these economies began to
rebound, import and export sales began to improve, which in turn created a more
favorable outlook for companies everywhere.
The fund' s dollar-weighted average market cap on August 31, 1999, was $2.6
billion, compared to the Russell Midcap Value Index average of $5.3 billion.
What is the fund's current strategy?
We have continued to focus on investments in technology, especially
semiconductor and semiconductor capital equipment holdings. In February, we
increased the fund' s weighting in this area primarily because we believed the
valuations of many of these companies had been knocked down considerably,
resulting in stock prices that were lower than what we believed were their
actual worth. That proved to be a wise move: as these companies' businesses
improved, they enhanced the fund' s performance considerably. Lam Research,
Cypress Semiconductor and Tech Data ranked among the portfolio's most notable
technology stocks during the period.
<PAGE>
Another contributor to positive performance was the fund's investments in energy
stocks. We increased our holdings of several energy stocks in March based on our
opinion that oil prices were artificially depressed and were likely to improve.
When oil prices rose during the period, we were able to realize gains,
particularly in two of the fund's oil and production companies, Union Pacific
Resources Group and Santa Fe Snyder.
On the other hand, several of our healthcare investments held back performance,
including Integrated Health Services, which owns nursing homes and provides
respiratory services. However, not all healthcare holdings performed poorly.
When Quest Diagnostics, one of our laboratory companies, merged with SmithKline
Beecham, the new firm was able to realize tremendous cost-cutting opportunities,
which ultimately drove its stock price higher.
We have been encouraged by the values that we are finding in the midcap stock
market. Low prices relative to key valuation measures, combined with positive
earnings surprises, have left us enthusiastic about the potential opportunities
for midcap investors.
September 14, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC. -- THE RUSSELL MIDCAP VALUE INDEX
IS A WIDELY ACCEPTED, UNMANAGED INDEX OF MEDIUM-CAP STOCK MARKET PERFORMANCE.
(3) ON AUGUST 1, 1999, THE FUND CHANGED ITS BENCHMARK FROM THE RUSSELL MIDCAP
INDEX, WHICH IS STYLE NEUTRAL, TO THE RUSSELL MIDCAP VALUE INDEX, WHICH MEASURES
THE PERFORMANCE OF THOSE RUSSELL MIDCAP COMPANIES WITH LOWER PRICE-TO-BOOK
RATIOS AND LOWER FORECASTED GROWTH VALUES.
The Fund
<PAGE>
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Midcap Value Fund
with the Russell Midcap Index and the Russell Midcap Value Index
Average Annual Total Returns AS OF 8/31/99
Inception
1 Year (9/29/95)
FUND 55.71% 22.73%
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN DREYFUS MIDCAP VALUE FUND
ON 9/29/95 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN EACH OF THE RUSSELL
MIDCAP VALUE INDEX AND THE RUSSELL MIDCAP INDEX ON THAT DATE. ALL DIVIDENDS AND
CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
THIS IS THE FIRST YEAR IN WHICH COMPARATIVE PERFORMANCE IS BEING SHOWN FOR THE
RUSSELL MIDCAP VALUE INDEX, WHICH HAS BEEN SELECTED AS THE PRIMARY INDEX FOR
COMPARING THE FUND'S PERFORMANCE BASED ON THE FUND'S AND THE INDEX'S MIDCAP
VALUE ORIENTATION. THE RUSSELL MIDCAP INDEX WAS USED AS THE FUND'S BENCHMARK
INDEX LAST YEAR. PERFORMANCE FOR THIS INDEX WILL NOT BE PROVIDED WITH THE NEXT
ANNUAL REPORT, BUT IS PROVIDED HEREWITH PURSUANT TO APPLICABLE REGULATIONS.
THE RUSSELL MIDCAP VALUE INDEX IS AN UNMANAGED INDEX OF THE PERFORMANCE OF
THOSE RUSSELL MIDCAP COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER
FORECASTED GROWTH VALUES. THE RUSSELL MIDCAP INDEX IS A WIDELY ACCEPTED,
UNMANAGED INDEX OF MEDIUM-CAP STOCK MARKET PERFORMANCE. THE FUND'S PERFORMANCE
SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE FEES AND EXPENSES.
NEITHER OF THE FOREGOING INDICES 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.
$22,321
Dreyfus Midcap Value Fund
$18,237
Russell Midcap Index((+)
$17,999
Russell Midcap Value Index((+)
<PAGE>
CONTINUED)
August 31, 1999
<TABLE>
STATEMENT OF INVESTMENTS
COMMON STOCKS--100.3% Shares Value ($)
BASIC INDUSTRIES--10.6%
<S> <C> <C>
Arch Chemicals 17,900 352,406
Armco 173,200 (a) 1,190,750
FMC 13,500 (a) 786,375
Geon 45,200 1,350,350
Hercules 47,500 1,546,719
IMC Global 23,000 366,562
Jefferson Smurfit Group, A.D.R. 48,100 1,436,988
Louisiana-Pacific 39,400 728,900
RPM 72,300 962,494
Safety-Kleen 94,275 (a) 1,202,006
UCAR International 20,800 (a) 507,000
10,430,550
CAPITAL GOODS--7.4%
AGCO 62,700 646,594
Federal-Mogul 30,500 1,391,562
Millipore 8,100 305,775
Republic Services, Cl. A 71,600 (a) 778,650
Thermo Electron 128,200 (a) 2,035,175
Waste Management 94,800 2,067,825
7,225,581
CONSTRUCTION & HOUSING--1.0%
Fluor 24,700 1,021,962
CONSUMER DURABLES--2.4%
Applied Power, Cl. A 24,600 753,375
Callaway Golf 83,500 829,781
Kaufman & Broad Home 33,100 676,481
Polaris Industries 1,300 46,719
2,306,356
CONSUMER NON-DURABLES--9.9%
American National Can Group 44,500 728,687
Harcourt General 35,400 1,550,962
International Home Foods 45,700 (a) 914,000
Jones Apparel Group 77,200 (a) 2,002,375
Liz Claiborne 38,800 1,425,900
Rexall Sundown 1,400 (a) 17,500
Suiza Foods 30,200 (a) 962,625
Ziff-Davis 135,800 (a) 2,096,412
9,698,461
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
CONSUMER SERVICES--14.5%
Allied Waste Industries 100,100 (a) 1,276,275
Burlington Coat Factory 52,700 869,550
Consolidated Stores 96,300 (a) 1,552,838
InaCom 17,000 (a) 165,750
K mart 116,800 (a) 1,467,300
Manpower 37,900 1,023,300
OfficeMax 135,600 (a) 1,025,475
Paging Network 41,300 (a) 127,772
Park Place Entertainment 146,900 1,661,806
Payless ShoeSource 17,600 (a) 877,800
Polo Ralph Lauren, Cl. A 21,000 (a) 406,875
Saks 96,600 (a) 1,624,087
Shopko Stores 35,800 (a) 1,024,775
Snyder Communications 54,000 (a) 1,100,250
14,203,853
ENERGY--13.5%
Burlington Resources 34,000 1,421,625
EEX 52,766 (a) 250,639
Enron Oil & Gas 39,400 940,675
Noble Affiliates 51,100 1,584,100
Ocean Energy 74,500 (a) 754,312
Santa Fe International 41,300 1,089,288
Santa Fe Snyder 182,600 1,780,350
Tosco 32,100 818,550
Transocean Offshore 40,300 1,370,200
Union Pacific Resources Group 98,400 1,765,050
Weatherford International 39,825 (a) 1,418,766
13,193,555
FINANCE--5.7%
Affiliated Managers Group 16,700 (a) 445,681
Bowne & Co. 50,900 706,238
Everest Reinsurance Holdings 53,100 1,473,525
Heller Financial 73,800 1,688,175
St. Paul Companies 41,100 1,317,769
5,631,388
HEALTH CARE--7.3%
Beckman Coulter 6,800 322,150
Bergen Brunswig, Cl. A 59,200 913,900
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
HEALTH CARE (CONTINUED)
Health Management Associates, Cl. A 155,500 (a) 1,244,000
Quest Diagnostics 108,900 (a) 2,879,044
STERIS 81,000 (a) 1,017,562
Schein (Henry) 45,600 (a) 778,050
7,154,706
INDUSTRIAL COMPONENTS--.1%
Lennox International 6,800 129,200
LEISURE & ENTERTAINMENT--.5%
Mandalay Resort Group 23,500 (a) 481,750
MERCHANDISING--3.4%
Toys R Us 98,400 (a) 1,359,150
Venator Group 282,500 (a) 2,012,812
3,371,962
RECREATION--1.5%
Polaroid 54,600 1,481,025
TECHNOLOGY--21.4%
Amkor Technology 52,500 (a) 925,312
Arrow Electronics 49,900 (a) 991,762
Autodesk 48,200 1,108,600
Cadence Design System 55,900 (a) 761,638
Cambridge Technology Partners 40,500 (a) 554,344
Cypress Semiconductor 55,800 (a) 1,290,375
Electroglas 800 (a) 15,400
Etec Systems 25,600 (a) 1,126,400
Hyperion Solutions 59,900 (a) 917,219
Keane 58,400 (a) 1,262,900
Maxtor 217,200 (a) 1,391,438
Micron Technology 20,400 (a) 1,521,075
Parametric Technology 84,700 (a) 1,185,800
Quantum--Hard Disk Drive Group 150,700 (a) 1,073,738
Sterling Commerce 109,300 (a) 2,090,363
Sterling Software 17,200 (a) 346,150
Sybase 128,100 (a) 1,601,250
Tech Data 77,400 (a) 2,868,638
21,032,402
TRANSPORTATION--1.1%
Yellow 70,300 (a) 1,116,013
TOTAL COMMON STOCKS
(cost $96,550,398) 98,478,764
The Fund
<PAGE>
(CONTINUED)
STATEMENT OF INVESTMENTS (CONTINUED)
STATEMENT OF INVESTMENTS Principal
SHORT-TERM INVESTMENTS--.3% Amount ($) Value ($)
U.S. TREASURY BILLS:
4.60%, 11/18/1999 110,000 108,872
4.85%, 11/26/1999 172,000 170,024
TOTAL SHORT-TERM INVESTMENTS
(cost $278,907) 278,896
TOTAL INVESTMENTS (cost $96,829,305) 100.6% 98,757,660
LIABILITIES, LESS CASH AND RECEIVABLES (.6%) (589,606)
NET ASSETS 100.0% 98,168,054
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1999
Cost Value
ASSETS ($):
<S> <C> <C>
Investments in securities--See Statement of Investments 96,829,305 98,757,660
Cash 35,165
Receivable for investment securities sold 1,230,538
Receivable for shares of Common Stock subscribed 991,447
Dividends receivable 46,868
Prepaid expenses 3,666
101,065,344
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 78,340
Due to Distributor 21,854
Payable for investment securities purchased 1,613,546
Payable for shares of Common Stock redeemed 1,134,783
Interest payable--Note 2 12,306
Accrued expenses 36,461
2,897,290
NET ASSETS ($) 98,168,054
COMPOSITION OF NET ASSETS ($):
Paid-in capital 97,681,345
Accumulated net realized gain (loss) on investments (1,441,646)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 1,928,355
NET ASSETS ($) 98,168,054
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 4,523,453
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
21.70
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year Ended August 31, 1999
INVESTMENT INCOME ($):
INCOME:
<S> <C> <C>
Cash dividends (net of $486 foreign taxes withheld at source) 435,069
Interest 31,027
TOTAL INCOME 466,096
EXPENSES:
Management fee--Note 3(a) 689,558
Shareholder servicing costs--Note 3(b) 379,661
Interest expense--Note 2 57,772
Registration fees 43,809
Custodian fees--Note 3(b) 41,925
Professional fees 30,576
Prospectus and shareholders' reports 28,243
Directors' fees and expenses--Note 3(c) 2,864
Miscellaneous 11,522
TOTAL EXPENSES 1,285,930
INVESTMENT (LOSS) (819,834)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 785,434
Net unrealized appreciation (depreciation) on investments 37,439,588
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 38,225,022
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 37,405,188
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
1999 1998
OPERATIONS ($):
<S> <C> <C>
Investment (loss) (819,834) (320,040)
Net realized gain (loss) on investments 785,434 9,569,664
Net unrealized appreciation (depreciation)
on investments 37,439,588 (41,688,800)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 37,405,188 (32,439,176)
DIVIDENDS TO SHAREHOLDERS FROM ($):
NET REALIZED GAIN ON INVESTMENTS (9,344,038) (6,040,421)
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 72,861,853 126,448,114
Dividends reinvested 9,051,684 5,763,416
Cost of shares redeemed (92,106,895) (94,925,810)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (10,193,358) 37,285,720
TOTAL INCREASE (DECREASE) IN NET ASSETS 17,867,792 (1,193,877)
NET ASSETS ($):
Beginning of Period 80,300,262 81,494,139
END OF PERIOD 98,168,054 80,300,262
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 3,574,897 5,669,980
Shares issued for dividends reinvested 529,959 274,710
Shares redeemed (4,798,775) (4,393,602)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (693,919) 1,551,088
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended August 31,
1999 1998 1997 1996(a)
PER SHARE DATA ($):
<S> <C> <C> <C> <C>
Net asset value, beginning of period 15.39 22.23 15.80 12.50
Investment Operations:
Investment income (loss)--net (.17)(b) (.06)(b) (.01) .08
Net realized and unrealized
gain (loss) on investments 8.26 (5.73) 8.23 3.28
Total from Investment Operations 8.09 (5.79) 8.22 3.36
Distributions:
Dividends from investment income--net -- -- (.04) (.04)
Dividends from net realized gain on investments (1.78) (1.05) (1.75) (.02)
Total Distributions (1.78) (1.05) (1.79) (.06)
Net asset value, end of period 21.70 15.39 22.23 15.80
TOTAL RETURN (%) 55.71 (27.32) 55.45 26.88(c)
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to average net assets 1.34 1.29 1.25 1.18(c)
Ratio of interest expense and loan commitment fees
to average net assets .06 .01 .01 .01(c)
Ratio of net investment income (loss)
to average net assets (.89) (.25) (.14) .56(c)
Decrease reflected in above expense ratios
due to undertakings by the Manager -- -- .26 1.13(c)
Portfolio Turnover Rate 257.23 168.72 154.92 266.80(c)
Net Assets, end of period ($ x 1,000) 98,168 80,300 81,494 3,591
(A) FROM SEPTEMBER 29, 1995 (COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Midcap 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, 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 to
surpass the performance of the Russell Midcap Value Index. 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.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses which are applicable to all series 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.
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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 custody agreement, the fund receives net
earnings credits based on available cash balances left on deposit.
(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 of 1986, as amended (the "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 Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
During the period ended August 31, 1999, the fund reclassed $819,834 between
accumulated undistributed investment income-net and accumulated net realized
gain (loss) on investments. Net assets were not affected by this
reclassification.
NOTE 2--Bank Lines of Credit:
The fund may borrow up to $10 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>
The average daily amount of borrowings outstanding under both arrangements
during the period ended August 31, 1999 was approximately $1,091,700, with a
related weighted average annualized interest rate of 5.29%.
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
August 31, 1999, the fund was charged $229,853 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 August 31, 1999, the fund was charged $82,807 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, 1999, the fund was
charged $41,925 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.
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(d) A 1% redemption fee is charged and retained by the fund on shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund's Exchange privilege.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended August 31, 1999, amounted to
$236,073,928 and $255,798,747, respectively.
At August 31, 1999, accumulated net unrealized appreciation on investments was
$1,928,355, consisting of $9,672,297 gross unrealized appreciation and
$7,743,942 gross unrealized depreciation.
At August 31, 1999, 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>
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus Midcap Value Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Midcap Value Fund (one of the Series
constituting Dreyfus Growth and Value Funds, Inc.) as of August 31, 1999, 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 by the custodian as of August 31, 1999 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 Midcap Value Fund at August 31, 1999, 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, 1999
The Fund
<PAGE>
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes, the fund hereby designates $.092 per share as a
long-term capital gain distribution of the $1.782 per share paid on December 4,
1998.
The fund also designates 11.49% of the ordinary dividends paid during the fiscal
year ended August 31, 1999 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2000 of the
percentage applicable to the preparation of their 1999 income tax returns.
<PAGE>
<PAGE>
For More Information
Dreyfus Midcap 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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 258AR998
<PAGE>
Dreyfus
Emerging Leaders Fund
ANNUAL REPORT
August 31, 1999
(reg.tm)
<PAGE>
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured
* Not Bank-Guaranteed
* May Lose Value
Year 2000 Issues (Unaudited)
The fund could be adversely affected if the computer systems used by The Dreyfus
Corporation and the fund's other service providers do not properly process and
calculate date-related information from and after January 1, 2000. The Dreyfus
Corporation is working to avoid Year 2000-related problems in its systems and to
obtain assurances from other service providers that they are taking similar
steps. In addition, issuers of securities in which the fund invests may be
adversely affected by Year 2000-related problems. This could have an impact on
the value of the fund's investments and its share price.
<PAGE>
Contents
- -------------------------------------------------------------------------------
THE FUND
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
7 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
14 Financial Highlights
15 Notes to Financial Statements
19 Report of Independent Auditors
20 Important Tax Information
FOR MORE INFORMATION
Back Cover
<PAGE>
The Fund
Dreyfus
Emerging Leaders Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Emerging Leaders Fund,
covering the 12-month period from September 1, 1998 through August 31, 1999.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio managers,
Hilary Woods and Paul Kandel.
The past year has been rewarding for many equity investors, including those who
own small-cap stocks. When the reporting period began, most sectors of the U.S.
stock market were in the midst of a sharp correction caused primarily by
concerns regarding the spread of the global financial crisis in overseas
markets. Soon after 1999 began, however, those fears abated. In fact, the U.S.
economy remained strong, characterized by low inflation and high levels of
consumer spending. As a result, several major U.S. market indices set new
records, including the technology-laden NASDAQ Index.
Beginning in April, many previously out-of-favor market sectors began to rally
strongly, including small-cap stocks, as investors became increasingly attracted
to their high growth rates. This has helped narrow the valuation gap that had
developed over the past several years between the large- and
small-capitalization sectors of the stock market.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Emerging Leaders Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
September 14, 1999
<PAGE>
DISCUSSION OF FUND PERFORMANCE
Hilary Woods and Paul Kandel, Portfolio Managers
How did Dreyfus Emerging Leaders Fund perform relative to its benchmark?
For the 12-month period ended August 31, 1999, Dreyfus Emerging Leaders Fund
produced a total return of 50.54%.(1) This compares favorably with the return
provided by the fund's benchmark, the Russell 2000 Index, which produced a total
return of 28.36% for the same period.(2)
We attribute the fund' s strong relative performance to our success in
identifying attractive individual investment opportunities among a diverse range
of sectors, industries and investment styles. In addition, the fund benefited
from the broadening of market strength that occurred during the second half of
the reporting period.
What is the fund's investment approach?
The fund invests in a diversified portfolio of approximately 70 small-cap
companies with total market values of $1.5 billion or less at the time of
purchase. To create that portfolio, we focus primarily on emerging leaders in
their respective industries. The leaders in which we invest offer products or
services that we believe enhance their prospects for future earnings growth.
Using fundamental research, we seek stocks with dominant positions in major
product lines, sustained achievement records and strong financial conditions. We
also base investment decisions on the expected impact of changes in a company's
management or organizational structure.
Our investment approach targets both growth-oriented stocks (those companies
with earnings that are expected to grow faster than the overall market),
value-oriented stocks (those that appear underpriced according to a number of
financial measurements) and stocks that exhibit both growth and value
characteristics. We typically sell a stock when the reasons for buying it no
longer apply or when the company begins to show deteriorating fundamentals or
poor relative performance.
The Fund
<PAGE>
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
The fund entered this fiscal year in a cautious posture warranted by the turmoil
in the markets following the Russian, Asian and Long Term Capital crises. We
changed course quickly as global events stabilized, and the fund benefited from
the ensuing strong rebound in growth issues. We further benefited when, in
April, market sentiment began to shift away from domestic large-cap growth
stocks to include a broader group of companies, including small and midcap
companies. In such an environment, many of the more cyclical stocks in our
portfolio flourished.
It' s important to remember that this fund is well diversified across many
sectors, which tends to minimize risk in any one area. In addition,
diversification across a broad range of market sectors helps the fund
participate in gains when more than one group of companies moves into favor
among investors.
What is the fund's current strategy?
Throughout the period we have emphasized technology stocks, especially those
within the semiconductor and Internet-related segments. That focus move proved
beneficial: the fund's largest gains relative to the benchmark stemmed from this
area. Specifically, our holdings in semiconductor companies such as PMC-Sierra,
Applied Micro Circuits and TranSwitch drove performance. Knight/Trimark, a
leading market maker for NASDAQ securities, was the fund's single largest
contributor to returns during the reporting period, benefiting from a surge in
online trading. We have since sold the stock at a substantial profit.
Within the healthcare sector, three of the fund' s holdings -- IDEC
Pharmaceuticals, Andrx and Millennium Pharmaceuticals -- have experienced rapid
sales growth as a result of newly-released products. Stocks within the specialty
retail industry also performed very well, with Tiffany & Co., the luxury
jeweler, taking the gold as the leader in this area, followed by SFX
Entertainment, Cl.A, a company that is creating the nation's first integrated
live entertainment network.
<PAGE>
On the other hand, a couple of the fund' s equipment producers held back
performance, including Milacron, Inc. and MagneTek. In other instances, we were
able to enjoy gains from companies within that sector -- including Case and
Aeroquip Vickers, two firms that were acquired during the period for substantial
premiums. Finally, our de-emphasis on stocks in the utility sector hurt our
overall performance, because the utility index exhibited strong performance
during the period.
We currently remain positive and have continued to maintain a healthy weighting
to the energy sector. When commodity prices rose dramatically during the period,
our stock selections gushed. Furthermore, we believe this area of the market has
the potential to appreciate even further. On the other hand, we remain cautious
with respect to financial and utility stocks, and we have limited our exposure
relative to their weightings in our benchmark index. That position is based on
our belief that a rising interest rate environment is generally unfavorable for
these types of stocks.
We believe the current market environment poses many opportunities for investing
within the small-cap arena. We want to assure investors that we are directing
resources into those companies and industries that we believe are well poised to
propel the fund going forward.
September 14, 1999
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT
RETURN FLUCTUATE SUCH THAT UPON REDEMPTION FUND SHARES MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.-- REFLECTS THE REINVESTMENT OF
INCOME DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAINS DISTRIBUTIONS. THE RUSSELL
2000 INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF SMALL-CAP STOCK PERFORMANCE
The Fund
<PAGE>
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Emerging Leaders
Fund and the Russell 2000 Index
Average Annual Total Returns AS OF 8/31/99
Inception
1 Year (9/29/95)
FUND 50.54% 30.43%
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
THE ABOVE GRAPH COMPARES A $10,000 INVESTMENT MADE IN DREYFUS EMERGING LEADERS
FUND ON 9/29/95 (INCEPTION DATE) TO A $10,000 INVESTMENT MADE IN THE RUSSELL
2000 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 RUSSELL 2000 INDEX IS AN UNMANAGED INDEX AND IS COMPOSED
OF THE 2,000 SMALLEST COMPANIES IN THE RUSSELL 3000 INDEX. THE RUSSELL 3000
INDEX IS COMPOSED OF 3,000 OF THE LARGEST U.S. COMPANIES BY MARKET
CAPITALIZATION. THE INDEX 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.
$28,333
Dreyfus Emerging Leaders Fund
$14,527
Russell 2000 Index((+)
<PAGE>
August 31, 1999
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
STATEMENT OF INVESTMENTS
COMMON STOCKS--92.1% Shares Value ($)
COMMERCIAL SERVICES--2.4%
<S> <C> <C>
Lamar Advertising, Cl. A 105,000 (a) 4,383,750
True North Communications 125,000 (a) 4,117,188
8,500,938
CONSUMER DURABLES--2.3%
Carlisle Cos. 100,000 4,000,000
Mohawk Industries 193,500 (a) 4,377,938
8,377,938
CONSUMER NON-DURABLES--2.6%
Church & Dwight 100,000 4,650,000
Movado Group 175,000 4,659,375
9,309,375
CONSUMER SERVICES--8.5%
Cinar Films, Cl. B 190,000 (a) 4,750,000
Emmis Communications, Cl. A 87,000 (a) 4,915,500
Entercom Communications 110,000 4,015,000
Harte-Hanks 200,000 4,487,500
Meredith 125,000 4,335,937
SFX Entertainment 105,000 (a) 4,324,688
Sun International Hotels 125,000 (a) 3,640,625
30,469,250
ELECTRONIC TECHNOLOGY--10.3%
Applied Micro Circuits 70,000 (a) 6,457,500
Atmel 175,000 (a) 6,879,688
C-Cube Microsystems 140,000 (a) 3,893,750
Cordant Technologies 85,000 3,516,875
Lattice Semiconductor 80,000 (a) 4,930,000
Newport News Shipbuilding 145,000 4,558,438
TranSwitch 135,500 (a) 6,732,656
36,968,907
ENERGY MINERALS--1.7%
Devon Energy 160,000 6,180,000
FINANCE--12.1%
Annuity and Life Re 200,000 4,425,000
Bank United, Cl. A 125,000 4,289,063
CNB Bancshares 70,000 3,998,750
Commerce Bancorp 100,000 4,300,000
Doral Financial 210,000 2,913,750
First Midwest Bancorp 100,000 3,987,500
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
FINANCE (CONTINUED)
Horace Mann Educators 145,000 4,368,125
RenaissanceRe Holdings 155,000 5,599,375
Terra Nova Holdings, Cl. A 156,600 5,011,200
XL Capital, Cl. A 90,000 4,528,125
43,420,888
HEALTH SERVICES--2.4%
Oxford Health Plans 300,000 (a) 4,650,000
Total Renal Care Holdings 500,000 (a) 4,031,250
8,681,250
HEALTH TECHNOLOGY--8.1%
Andrx 84,000 (a) 6,037,500
Cephalon 250,000 (a) 4,734,375
IDEC Pharmaceuticals 55,000 (a) 6,988,437
JONES PHARMA 168,750 4,566,797
Millennium Pharmaceuticals 115,000 (a) 6,777,812
29,104,921
INDUSTRIAL SERVICES--6.6%
BJ Services 200,000 (a) 6,850,000
Global Industries 500,000 (a) 5,593,750
Granite Construction 185,000 4,625,000
Varco International 535,000 (a) 6,620,625
23,689,375
NON-ENERGY MINERALS--3.6%
MacMillan Bloedel 245,000 3,701,426
Minerals Technologies 85,000 4,207,500
Steel Dynamics 280,000 (a) 5,040,000
12,948,926
PROCESS INDUSTRIES--5.2%
AptarGroup 155,000 3,991,250
Casella Waste Systems, Cl.A 155,000 (a) 2,635,000
Ivex Packaging 245,000 (a) 3,797,500
MacDermid 115,000 3,809,375
Smurfit-Stone Container 200,000 (a) 4,237,500
18,470,625
PRODUCER MANUFACTURING--7.4%
AGCO 359,000 3,702,187
Advanced Energy Industries 135,000 (a) 4,640,625
Case 100,000 4,937,500
<PAGE>
COMMON STOCKS (CONTINUED) Shares Value ($)
PRODUCER MANUFACTURING (CONTINUED)
IDEX 157,000 4,641,313
MagneTek 380,000 (a) 3,515,000
Terex 185,000 (a) 4,971,875
26,408,500
RETAIL TRADE--4.3%
Great Atlantic & Pacific Tea 128,000 4,496,000
Tiffany & Co. 100,000 5,287,500
Whitehall Jewellers 200,000 (a) 5,625,000
15,408,500
TECHNOLOGY SERVICES--9.1%
Legato Systems 180,000 (a) 7,751,250
National Data 155,000 5,928,750
PMC-Sierra 85,000 (a) 7,905,000
Primus Knowledge Solutions 270,000 6,665,625
Security Dynamics Technologies 185,000 (a) 4,370,625
32,621,250
TRANSPORTATION--1.4%
Expeditors International of Washington 150,000 4,846,875
UTILITIES--4.1%
AGL Resources 150,000 2,709,375
K N Energy 225,000 4,584,375
Questar 150,000 2,831,250
Time Warner Telecom, Cl. A 175,000 4,725,000
14,850,000
TOTAL COMMON STOCKS
(cost $268,733,072) 330,257,518
The Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--5.3% Amount ($) Value ($)
U.S. TREASURY BILLS:
4.63%, 9/16/1999 89,000 88,818
4.57%, 10/21/1999 297,000 295,076
4.65%, 11/4/1999 4,444,000 4,407,337
4.66%, 11/12/1999 8,071,000 7,994,648
4.66%, 11/18/1999 3,039,000 3,007,850
4.82%, 11/26/1999 3,427,000 3,387,692
TOTAL SHORT-TERM INVESTMENTS
(cost $19,182,848) 19,181,421
TOTAL INVESTMENTS (cost $287,915,920) 97.4% 349,438,939
CASH AND RECEIVABLES (NET) 2.6% 9,185,089
NET ASSETS 100.0% 358,624,028
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1999
Cost Value
ASSETS ($):
Investments in securities--See Statement of
Investments 287,915,920 349,438,939
Cash 9,698,365
Receivable for shares of Common Stock subscribed 599,421
Dividends receivable 179,568
Prepaid expenses 11,699
359,927,992
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 283,184
Due to Distributor 73,854
Payable for investment securities purchased 706,000
Payable for shares of Common Stock redeemed 140,013
Accrued expenses 100,913
1,303,964
NET ASSETS ($) 358,624,028
COMPOSITION OF NET ASSETS ($):
Paid-in capital 296,238,112
Accumulated net realized gain (loss) on investments 862,897
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 61,523,019
NET ASSETS ($) 358,624,028
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 11,816,505
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
30.35
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Year Ended August 31, 1999
INVESTMENT INCOME ($):
INCOME:
<S> <C> <C>
Cash dividends (net of $2,007 foreign taxes withheld at source) 1,166,600
Interest 602,026
TOTAL INCOME 1,768,626
EXPENSES:
Management fee--Note 3(a) 1,784,765
Shareholder servicing costs--Note 3(b) 738,729
Registration fees 81,711
Prospectus and shareholders' reports 48,870
Professional fees 48,689
Custodian fees--Note 3(b) 22,568
Directors' fees and expenses--Note 3(c) 8,091
Loan commitment fees--Note 2 643
Miscellaneous 3,971
TOTAL EXPENSES 2,738,037
INVESTMENT (LOSS) (969,411)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 1,833,877
Net unrealized appreciation (depreciation) on investments 61,874,481
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 63,708,358
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 62,738,947
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
1999 1998
OPERATIONS ($):
Investment (loss) (969,411) (852,258)
Net realized gain (loss) on investments 1,833,877 6,365,294
Net unrealized appreciation (depreciation)
on investments 61,874,481 (21,012,854)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 62,738,947 (15,499,818)
DIVIDENDS TO SHAREHOLDERS FROM ($):
NET REALIZED GAIN ON INVESTMENTS (274,922) (12,996,733)
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 292,925,430 120,019,743
Dividends reinvested 264,081 12,657,352
Cost of shares redeemed (102,579,858) (103,111,271)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 190,609,653 29,565,824
TOTAL INCREASE (DECREASE) IN NET ASSETS 253,073,678 1,069,273
NET ASSETS ($):
Beginning of Period 105,550,350 104,481,077
END OF PERIOD 358,624,028 105,550,350
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 10,381,885 4,551,838
Shares issued for dividends reinvested 11,045 528,270
Shares redeemed (3,800,869) (4,007,309)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 6,592,061 1,072,799
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
<PAGE>
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended August 31,
1999 1998 1997 1996(a)
PER SHARE DATA ($):
<S> <C> <C> <C> <C>
Net asset value, beginning of period 20.20 25.17 18.67 12.50
Investment Operations:
Investment income (loss)--net (.13)(b) (.16)(b) (.11) .03
Net realized and unrealized
gain (loss) on investments 10.33 (2.14) 8.02 6.17
Total from Investment Operations 10.20 (2.30) 7.91 6.20
Distributions:
Dividends from investment income--net -- -- -- (.03)
Dividends from net realized gain on investments (.05) (2.67) (1.41) --
Total Distributions (.05) (2.67) (1.41) (.03)
Net asset value, end of period 30.35 20.20 25.17 18.67
TOTAL RETURN (%) 50.54 (10.82) 44.45 46.09(c,d)
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.38 1.39 1.39 1.16(c)
Ratio of net investment income (loss)
to average net assets (.49) (.63) (.62) .09(c)
Decrease reflected in above expense ratios
due to undertakings by the Manager -- -- .09 .36(c)
Portfolio Turnover Rate 100.40 199.08 197.99 203.66(c)
Net Assets, end of period ($ x 1,000) 358,624 105,550 104,481 37,206
(A) FROM SEPTEMBER 28, 1995 (COMMENCEMENT OF OPERATIONS) TO AUGUST 31, 1996.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
(D) CALCULATED BASED ON NET ASSET VALUE ON THE CLOSE OF BUSINESS ON SEPTEMBER
29, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO AUGUST 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Emerging Leaders 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 growth. 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.
The Company accounts separately for the assets, liabilities and operations of
each series. Expenses directly attributable to each series are charged to that
series' operations; expenses, which are applicable to all series 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 The Fun
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 custody agreement, the fund received net
earnings credits of $7,294 during the period ended August 31, 1999 based on
available cash balances left on deposit. Income earned under this arrangement is
included in interest income.
(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 of 1986, as amended (the "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 Code,
and to make distributions of taxable income sufficient to relieve it from
substantially all Federal income and excise taxes.
During the period ended August 31, 1999, the fund reclassed $969,411 between
accumulated undistributed investment income-net and accumulated net realized
gain (loss) on investments. Net assets were not affected by the
reclassification.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the fund has agreed to pay commitment fees on its pro rata portion of
the Facility. Interest is charged to the fund at rates based on prevailing
market rates in effect at the time of the borrowings. During the period ended
August 31, 1999, the fund did not borrow under the Facility.
<PAGE>
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 .90 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
August 31, 1999 the fund was charged $495,768 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 August 31, 1999, the fund was charged $130,290 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, 1999, the fund was
charged $22,568 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 shares redeemed
within fifteen days following the date of issuance, including redemptions made
through the use of the fund's Exchange privilege.
The Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(e) During the period ended August 31, 1999, the fund incurred total brokerage
commissions of $621,306, of which $2,825 was paid to Dreyfus Brokerage Services,
a wholly-owned subsidiary of Mellon Bank Corporation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended August 31, 1999, amounted to
$367,624,874 and $187,207,061, respectively.
At August 31, 1999, accumulated net unrealized appreciation on investments was
$61,523,019, consisting of $73,024,926 gross unrealized appreciation and
$11,501,907 gross unrealized depreciation.
At August 31, 1999, 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>
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Emerging Leaders Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Emerging Leaders Fund (one of the
Series constituting Dreyfus Growth and Value Funds, Inc.) as of August 31, 1999,
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, 1999 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 Emerging Leaders Fund at August 31, 1999, 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, 1999
The Fund
<PAGE>
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes the fund hereby designates $.0472 per share as a
long-term capital gain distribution paid on December 3, 1998.
<PAGE>
<PAGE>
For More Information
Dreyfus Emerging Leaders 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
Distributor
Premier Mutual Fund Services, Inc.
60 State Street
Boston, MA 02109
To obtain information:
BY TELEPHONE Call 1-800-645-6561
BY MAIL Write to:
The Dreyfus Family of Funds
144 Glenn Curtiss Boulevard
Uniondale, NY 11556-0144
BY E-MAIL Send your request
to [email protected]
ON THE INTERNET Information can be viewed online or downloaded from:
http://www.dreyfus.com
(c) 1999 Dreyfus Service Corporation 259AR998
<PAGE>
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS INTERNATIONAL VALUE FUND AND THE MORGAN
STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR
EAST (EAFE(R)) INDEX
EXHIBIT A:
MORGAN STANLEY
DREYFUS CAPITAL
PERIOD INTERNATIONAL INTERNATIONAL EUROPE,
VALUE AUSTRALASIA, FAR EAST
FUND (EAFE(R)) INDEX *
9/29/95 10,000 10,000
8/31/96 10,643 10,580
8/31/97 12,317 11,538
8/31/98 12,240 11,522
8/31/99 15,690 14,480
* Source: Lipper Analytical Services, Inc.
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS PREMIER TECHNOLOGY GROWTH FUND CLASS A SHARES
WITH THE MORGAN STANLEY HIGH TECHNOLOGY 35 INDEX AND
THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
STANDARD
DREYFUS PREMIER MORGAN & POOR'S 500
PERIOD TECHNOLOGY STANLEY COMPOSITE
GROWTH HIGH STOCK
FUND TECHNOLOGY PRICE
(CLASS A SHARES) 35 INDEX * INDEX **
10/13/97 9,427 10,000 10,000
11/30/97 8,258 8,498 10,114
2/28/98 9,955 9,997 11,151
5/31/98 10,053 10,157 11,638
8/31/98 9,133 9,018 10,251
11/30/98 13,024 13,636 12,508
2/28/99 17,783 17,552 13,353
5/31/99 21,344 19,162 14,085
8/31/99 24,405 22,465 14,332
* Source: Morgan Stanley & Co. Incorporated
**Source: Lipper Analytical Services, Inc.
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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:
STANDARD DREYFUS
& POOR'S 500 AGGRESSIVE
PERIOD COMPOSITE STOCK GROWTH
PRICE INDEX* FUND
9/29/95 10,000 10,000
8/31/96 11,391 18,168
8/31/97 16,019 16,056
8/31/98 17,320 6,848
8/31/99 24,215 8,672
*Source: Lipper Analytical Services, Inc.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN DREYFUS MIDCAP VALUE FUND
WITH THE RUSSELL MIDCAP INDEX AND THE
RUSSELL MIDCAP VALUE INDEX
EXHIBIT A:
PERIOD
RUSSELL DREYFUS
MIDCAP RUSSELL MIDCAP
VALUE MIDCAP VALUE
INDEX* INDEX * FUND
9/29/95 10,000 10,000 10,000
8/31/96 11,165 11,058 12,688
8/31/97 15,285 14,827 19,724
8/31/98 14,770 13,835 14,335
8/31/99 17,999 18,237 22,321
*Source: Lipper Analytical Services, Inc.
IN DREYFUS AGGRESSIVE VALUE FUND WITH THE WILSHIRE
MIDCAP VALUE INDEX, THE WILSHIRE LARGE COMPANY VALUE
INDEX AND THE RUSSELL 1000 VALUE INDEX
EXHIBIT A:
WILSHIRE
DREYFUS WILSHIRE LARGE RUSSELL
AGGRESSIVE MIDCAP COMPANY 1000
PERIOD VALUE VALUE VALUE VALUE
FUND INDEX* INDEX* INDEX*
9/29/95 10,000 10,000 10,000 10,000
8/31/96 16,100 10,793 11,259 11,344
8/31/97 23,114 14,436 15,264 15,829
8/31/98 19,180 13,453 15,599 16,445
8/31/99 24,053 15,029 19,137 21,391
*Source: Lipper Analytical Services, Inc.
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN DREYFUS EMERGING LEADERS FUND
AND THE RUSSELL 2000 INDEX
EXHIBIT A:
DREYFUS
PERIOD RUSSELL 2000 EMERGING LEADERS
INDEX * FUND
9/29/95 10,000 10,000
8/31/96 10,888 14,609
8/31/97 14,041 21,103
8/31/98 11,317 18,820
8/31/99 14,527 28,333
*Source: Lipper Analytical Services, Inc.
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