Dreyfus
Large Company
Value Fund
SEMIANNUAL REPORT April 30, 2000
(reg.tm)
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
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Statement of Investments
9 Statement of Assets and Liabilities
10 Statement of Operations
11 Statement of Changes in Net Assets
12 Financial Highlights
13 Notes to Financial Statements
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus
Large Company Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Large Company Value
Fund, covering the six-month period from November 1, 1999 through April 30,
2000. 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 six months have been highly volatile -- but generally rewarding -- for
investors in large-cap U.S. stocks. While the market's advance during the last
two months of 1999 was led primarily by technology stocks and large-cap growth
stocks in a fast-growing economy, the large-cap sector of the stock market
corrected substantially during the first quarter of 2000, causing large-cap
stocks to generally underperform small- and mid-cap stocks during those three
months.
In mid-March, investor sentiment appeared to shift once more. Faced with
evidence that inflationary pressures were building, the Nasdaq Composite Index,
a major measure of technology stock performance, fell substantially between
mid-March and the end of April, including a considerably large single-day drop
on April 14. Many "old economy" stocks declined less severely, and some
value-oriented stocks gained ground amid renewed investor interest. While it is
too soon to determine whether this broadening of the market is likely to
persist, we believe that it may be a positive sign for the stock market overall
We appreciate your confidence over the past six months, and we look forward to
your continued participation in Dreyfus Large Company Value Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Timothy M. Ghriskey, Senior Portfolio Manager
How did Dreyfus Large Company Value Fund perform relative to its benchmark?
For the six-month period ended April 30, 2000, the fund produced a total return
of 1.35% .(1) For the same period, the Russell 1000 Value Index, the fund's
benchmark, produced a total return of -0.99%.(2)
We attribute the fund's ability to achieve a positive return in this market and
its performance relative to its benchmark largely to our technology holdings.
Much of the market's advance during the period was driven by strong performance
among technology-related stocks. Since the fund held a greater concentration of
technology stocks than its benchmark, the fund enjoyed slightly greater returns.
However, the fund's holdings in technology stocks were scaled back shortly after
the reporting period ended, now reflecting those of its benchmark.
What is the fund's investment approach?
The fund invests primarily in large-capitalization, value-oriented companies. We
select investments one stock and one company at a time. Our investment process
starts with computerized, quantitative analysis of the universe of stocks, first
to identify those that appear underpriced in relation to their intrinsic values
and then to focus on those value stocks we believe are best positioned to grow
in the prevailing market environment. Our team of experienced analysts examines
the fundamentals of each top-ranked candidate, providing additional information
to help the portfolio manager decide which to purchase or sell.
In addition to identifying attractive investment opportunities, our approach is
designed to limit the risks associated with exposure to individual market
sectors. Instead of attempting to predict which industries or sectors are likely
to perform best in the near future, we allocate the fund's resources among
sectors in roughly the same proportions as our benchmark. However, we may choose
to emphasize
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
certain sectors that we believe offer greater long-term growth prospects than
the overall market. During the reporting period, we chose to emphasize
value-oriented companies in the rapidly growing technology sector.
What other factors influenced the fund's performance?
As stated earlier, the fund's performance during the reporting period was
largely driven by the rise of our technology-related holdings. Although many
technology- and Internet-related stocks failed to meet our value-oriented
investment criteria, we identified and invested in several large,
well-established technology companies that did meet our standards. We allocated
an average of approximately 13.7% of the fund's assets in technology stocks
during the period, compared with an average of approximately 6.6% for the
Russell 1000 Value Index. Our diversified technology holdings included computer
companies, such as Apple Computer; semiconductor manufacturers, such as Intel;
and software vendors, such as Computer Associates International. Although many
technology stocks suffered sharp declines in March and April 2000, the fund's
value-oriented technology holdings preserved a significant percentage of the
gains they had achieved earlier in the period.
The fund's performance was also strongly influenced by higher prices for several
individual stocks among our non-technology holdings. Our best performers
included well-known consumer staples companies, such as General Motors, as well
as less familiar names in the utility sector, such as Dynegy. Our value
discipline prompted us to reduce holdings in stocks of some companies, such as
Cendant, that climbed higher than we believed to be justified by company
fundamentals.
Our diversified holdings also included significant positions in many other
industries, most notably the traditional value sectors of energy, basic
materials, and producer manufacturing. While none of these sectors made strong
contributions to the fund' s positive performance, neither did they detract
substantially.
What is the fund's current strategy?
As of April 30, 2000, we have continued to allocate a relatively high percentage
of the fund' s assets to value-oriented technology stocks, as compared to the
Russell 1000 Value Index. As mentioned earlier, the fund's technology holdings
have since been scaled back to reflect those of its benchmark. However, we
believe that technology remains a driving force behind U.S. economic growth,
delivering products that stimulate consumer spending and productivity
enhancements that enable businesses to grow earnings while limiting price
increases. Although many technology stocks appear overpriced to us in relation
to their intrinsic value, we have continued to find attractive investment
opportunities that meet our value-oriented investment criteria.
We have also continued to allocate a significant percentage of the fund's assets
to the financial sector. Although prices of financial stocks have remained under
pressure from rising interest rates, we believe the sector' s underlying
fundamentals are strong and that shares of many leading companies offer
attractive long-term investment opportunities.
We continue to believe that value investing remains an important part of a
diversified portfolio, and we continue to maintain our strict commitment to
value investing.
May 15, 2000
(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
DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE RUSSELL 1000
VALUE INDEX IS AN UNMANAGED INDEX WHICH MEASURES THE PERFORMANCE OF THOSE
RUSSELL 1000 COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED
GROWTH VALUES..
The Fund
April 30, 2000 (Unaudited)
STATEMENT OF INVESTMENTS
<TABLE>
STATEMENT OF INVESTMENTS
COMMON STOCKS--96.3% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BANKING--9.6%
Bank of America 35,400 1,734,600
Bank of New York 34,900 1,433,081
Chase Manhattan 17,000 1,225,062
Fleet 52,800 1,871,100
Morgan (J.P.) 8,800 1,129,700
Wells Fargo 47,000 1,929,938
9,323,481
CONSUMER DURABLES--2.4%
Ford Motor 22,100 1,208,594
General Motors 12,000 1,123,500
2,332,094
CONSUMER NON-DURABLES--2.2%
Nabisco Holdings, Cl. A 13,500 507,094
PepsiCo 31,000 1,137,312
Philip Morris Cos. 21,600 472,500
2,116,906
CONSUMER SERVICES--6.8%
Cendant 25,300 (a) 390,569
Disney (Walt) 49,700 2,152,631
MediaOne Group 54,000 (a) 4,083,750
6,626,950
ELECTRONIC TECHNOLOGY--10.6%
Apple Computer 3,400 (a) 421,813
Boeing 17,100 678,656
Compaq Computer 23,800 696,150
Cypress Semiconductor 20,500 (a) 1,064,719
Dell Computer 30,400 (a) 1,523,800
Hewlett-Packard 4,200 567,000
Intel 12,300 1,559,794
International Business Machines 9,400 1,049,275
Micron Technology 4,700 (a) 654,475
Motorola 8,600 1,023,937
Unisys 29,700 (a) 688,669
Xircom 7,100 (a) 280,006
10,208,294
ENERGY MINERALS--10.4%
BP Amoco, ADS 20,924 1,067,124
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ENERGY MINERALS (CONTINUED)
Chevron 5,700 485,213
Conoco, Cl. B 12,885 320,514
Exxon Mobile 71,921 5,587,363
Royal Dutch Petroleum, A.D.R. 14,600 837,675
Santa Fe International 34,800 1,196,250
Texaco 10,800 534,600
10,028,739
FINANCE--19.7%
American Express 5,900 885,369
American General 5,200 291,200
American International 22,100 2,424,094
Associates First Capital 45,900 1,018,406
Citigroup 98,500 5,854,594
Federal National Mortgage Association 10,200 615,188
First Union 56,900 1,813,687
Goldman Sachs Group 10,300 960,475
Merrill Lynch 10,900 1,111,119
Morgan Stanley Dean Witter & Co. 38,600 2,962,550
XL Capital, Class A 23,300 1,109,662
19,046,344
HEALTH SERVICES--1.5%
Columbia/HCA Healthcare 52,700 1,498,656
HEALTH TECHNOLOGY--4.4%
Bristol-Myers Squibb 3,500 183,531
Guidant 8,800 (a) 504,900
Pharmacia 13,209 659,624
Schering-Plough 37,400 1,507,688
Watson Pharmaceuticals 31,700 (a) 1,424,519
4,280,262
NON-ENERGY MINERALS--1.0%
Alcoa 15,400 999,075
PROCESS INDUSTRIES--2.2%
Dow Chemical 5,000 565,000
International Paper 8,000 294,000
PPG Industries 3,600 195,750
Union Carbide 17,900 1,056,100
2,110,850
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
PRODUCER MANUFACTURING--5.0%
Caterpillar 7,500 295,781
Emerson Electric 9,800 537,775
General Electric 10,400 1,635,400
Honeywell International 11,312 633,472
Minnesota Mining & Manufacturing 8,400 726,600
Tyco International 22,200 1,019,812
4,848,840
TECHNOLOGY SERVICES--1.9%
Computer Associates International 14,100 786,956
Electronic Data Systems 15,100 1,038,125
1,825,081
UTILITIES--18.6%
AT&T - Liberty Media Group, Cl. A 28,000 (a) 1,398,250
AES 9,200 (a) 827,425
BellSouth 42,900 2,088,694
Coastal 20,400 1,023,825
Duke Energy 7,300 419,750
Dynegy, Cl. A 32,100 2,100,544
Enron 14,200 989,562
GTE 44,100 2,987,775
MCI WorldCom 14,900 (a) 677,019
SBC Communications 56,558 2,477,947
Sprint (Fon Group) 16,100 990,150
US West 27,700 1,971,894
17,952,835
TOTAL COMMON STOCKS
(cost $76,932,781) 93,198,407
------------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--3.5% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS;
5.62%, 7/13/2000
(cost $3,366,276) 3,405,000 3,366,251
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $80,299,057) 99.8% 96,564,658
CASH AND RECEIVABLES (NET) .2% 207,857
NET ASSETS 100.0% 96,772,515
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 80,299,057 96,564,658
Cash 116,289
Receivable for investment securities sold 256,913
Dividends receivable 81,723
Receivable for shares of Common Stock subscribed 10,240
Prepaid expenses 13,191
97,043,014
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 93,895
Payable for shares of Common Stock redeemed 140,241
Interest payable--Note 2 215
Accrued expenses 36,148
270,499
--------------------------------------------------------------------------------
NET ASSETS ($) 96,772,515
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 75,951,037
Accumulated undistributed investment income--net 222,626
Accumulated net realized gain (loss) on investments 4,333,251
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 16,265,601
--------------------------------------------------------------------------------
NET ASSETS ($) 96,772,515
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 4,544,504
NET ASSETS VALUE, offering an redemption price per share--Note 3(d) ($)
21.29
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $2,855 foreign taxes withheld at source) 832,904
Interest 21,875
TOTAL INCOME 854,779
EXPENSES:
Management fee--Note 3(a) 400,723
Shareholder servicing costs--Note 3(b) 193,367
Professional fees 15,203
Prospectus and shareholders' reports 13,313
Custodian fees--Note 3(b) 7,402
Registration fees 6,709
Interest expense--Note 2 5,264
Directors' fees and expenses--Note 3(c) 2,586
Miscellaneous 2,087
TOTAL EXPENSES 646,654
INVESTMENT INCOME--NET 208,125
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 4,880,596
Net unrealized appreciation (depreciation) on investments (3,996,471)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 884,125
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,092,250
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 208,125 772,415
Net realized gain (loss) on investments 4,880,596 14,049,725
Net unrealized appreciation (depreciation)
on investments (3,996,471) 4,265,714
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,092,250 19,087,854
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (635,497) (575,758)
Net realized gain on investments (14,240,000) --
TOTAL DIVIDENDS (14,875,497) (575,758)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 8,525,652 45,354,543
Dividends reinvested 14,415,522 548,869
Cost of shares redeemed (34,246,001) (78,366,773)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (11,304,827) (32,463,361)
TOTAL INCREASE (DECREASE) IN NET ASSETS (25,088,074) (13,951,265)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 121,860,589 135,811,854
END OF PERIOD 96,772,515 121,860,589
Undistributed investment income--net 222,626 649,998
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 395,867 1,953,625
Shares issued for dividends reinvested 681,585 25,040
Shares redeemed (1,602,279) (3,307,066)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (524,827) (1,328,401)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
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>
Six Months Ended
April 30, 2000 Year Ended October 31,
-----------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 24.04 21.23 21.35 18.05 15.46 12.63
Investment Operations:
Investment income--net .04(a) .13(a) .09 .07 .12 .22
Net realized and unrealized
gain (loss) on investments .25 2.77 .91 4.33 4.68 2.93
Total from Investment Operations .29 2.90 1.00 4.40 4.80 3.15
Distributions:
Dividends from investment
income--net (.13) (.09) (.06) (.11) (.21) (.32)
Dividends from net realized gain
on investments (2.91) -- (1.06) (.99) (2.00) --
Total Distributions (3.04) (.09) (1.12) (1.10) (2.21) (.32)
Net asset value, end of period 21.29 24.04 21.23 21.35 18.05 15.46
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 1.35(b) 13.71 4.83 25.29 34.35 25.73
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets .60(b) 1.25 1.24 1.22 1.25 .83
Ratio of interest expense to
average net assets .01(b) .01 -- -- -- --
Ratio of net investment income
to average net assets .19(b) .55 .36 .41 .93 1.64
Decrease reflected in above
expense ratios due to
undertakings by The Dreyfus
Corporation -- -- -- .06 .32 1.76
Portfolio Turnover Rate 67.47(b) 141.99 156.72 110.14 186.39 143.61
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 96,773 121,861 135,812 161,960 34,187 6,687
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Large Company Value Fund (the "fund") is a separate diversified series
of Dreyfus Growth and Value Funds, Inc. (the "Company") which is registered
under the Investment Company Act of 1940, 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 Financial
Corporation. Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a
wholly-owned subsidiary of the Manager, became the distributor of the fund's
shares. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was the
distributor. Shares of the fund 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
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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 amount of
dividends, interest and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains or losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
(c) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund received net
earnings credits of $204 during the period ended April 30, 2000 based on
available cash balances left on deposit. Interest 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.
NOTE 2--Bank Line of Credit:
The fund may borrow up to $2 million for leveraging purposes under a short-term
unsecured line of credit and participates with other Dreyfus-managed funds in a
$100 million unsecured line of credit primarily to be utilized for temporary or
emergency purposes, including the financing of redemptions. Interest is charged
to the fund at rates which are related to the Federal Funds rate in effect at
the time of borrowings.
The average daily amount of borrowings outstanding under both arrangements
during the period ended April 30, 2000 was approximately $172,200, with a
related weighted average annualized interest rate of 6.15%.
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,
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
such as answering shareholder inquiries regarding the fund and providing reports
and other information, and services related to the maintenance of shareholder
accounts. The distributor may make payments to Service Agents (a securities
dealer, financial institution or other industry professional) in respect of
these services. The distributor determines the amounts to be paid to Service
Agents. During the period ended April 30, 2000, the fund was charged $133,574
pursuant to the Shareholder Services Plan, of which $26,966 was paid to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2000, the fund was charged $83,590 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 April 30, 2000, the fund was
charged $7,402 pursuant to the custody agreement.
(c) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 25, 2000, each
Board member receives an annual fee of $25,000 and a fee of $4,000 for each
meeting held in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 25, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the
Company an annual fee of $5,000 and an attendance fee of $500 per meeting. The
Chairman of the Board received an additional 25% of such compensation. Subject
to the fund's Director Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the Company's annual retainer fee and per meeting fee paid
at the time the Board member achieved emeritus status.
(d) A 1% redemption fee is charged and retained by the fund on shares redeemed
within fifteen days following the date of their issuance, including redemptions
made through the use of the fund's exchange privilege. Effective June 1, 2000,
this fee will be chargeable within thirty days following the date of issuance of
such shares.
(e) During the period ended April 30, 2000, the fund incurred total brokerage
commissions of $176,208, of which $9,728 was paid to Dreyfus Brokerage Services,
a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended April 30, 2000, amounted to
$72,158,530 and $100,608,878, respectively.
At April 30, 2000, accumulated net unrealized appreciation on investments was
$16,265,601, consisting of $17,989,678 gross unrealized appreciation and
$1,724,077 gross unrealized depreciation.
At April 30, 2000, 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
For More Information
Dreyfus Large Company Value Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 251SA004
================================================================================
Dreyfus
Small Company
Value Fund
SEMIANNUAL REPORT April 30, 2000
(reg.tm)
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
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 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
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus
Small Company Value Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this semiannual report for Dreyfus Small Company Value
Fund, covering the six-month period from November 1, 1999 through April 30,
2000. 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 six months have been favorable for small-cap stocks, which, as measured
by the Russell 2000 Index, outpaced the performance of large-cap stocks, as
measured by the Standard & Poor's 500 Composite Stock Price Index. However, a
closer look reveals that small-cap stocks experienced heightened volatility
during the reporting period, rising and falling sharply in response to shifting
investor preferences.
For example, during the last two months of 1999, small-cap stocks were generally
outpaced by large-cap growth stocks -- particularly technology stocks -- in a
fast-growing economy. Then, during the first two months of 2000, the
large-capitalization sector of the stock market corrected sharply while
small-cap stocks generally rose. In March and April, investor sentiment shifted
once more, and large-cap companies generally provided higher returns than
small-cap companies. In fact, small-cap stocks had their best performance ever
in February followed, in March, by their worst performance relative to large-cap
stocks since the small-cap market's benchmark was created in January 1979.
We appreciate your confidence over the past six months and we look forward to
your continued participation in Dreyfus Small Company Value Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Peter Higgins, Portfolio Manager
How did Dreyfus Small Company Value Fund perform relative to its benchmark?
For the six-month period ended April 30, 2000, the fund produced a total return
of 26.15% .(1) In comparison, the Russell 2000 Value Index produced a total
return of 8.20% for the same period.(2)
We attribute the fund' s strong performance during the past six months to our
ability to uncover numerous value-oriented technology companies that later
appreciated in price. Although growth stocks dominated the performance of the
stock market during the first four months of the reporting period, the final two
months, March and April 2000, could be characterized as a value investor's
market.
What is the fund's investment approach?
Our focus is to identify inexpensive stocks with solid long-term fundamentals
and improving prospects. The process includes searching for companies with low
price-to-earnings (" P/E" ) ratios, defined as low stock prices in relation to
expected earnings. To do this, we compare a company's P/E ratio to its own
historical averages as well as to other companies in the same industry. We then
develop an earnings estimate for each investment candidate, and focus on those
companies that we think can do better than the average expectations of Wall
Street analysts. Our approach includes meeting with corporate management,
competitors and suppliers of these companies to identify positive trends before
they become widely known in the investment community.
What other factors influenced the fund's performance?
Even with the sharp sell-off in March and April of technology stocks, our
technology holdings, which represented about 25% of the portfolio, were still
the top performers for the fund during the six-month period. That's primarily
because we continued to find technology
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
companies selling at reasonable prices, which accounted for a significant amount
of the fund's superior return.
For example, we purchased shares in Maxtor and Quantum, two disk drive
manufacturers, at a time when their businesses were challenged. The valuations
of both companies were compelling and we anticipated that business conditions
would improve due to a rebound in demand and a more rational supply environment.
Beginning in December 1999, both companies began reporting earnings that
substantially beat expectations of Wall Street analysts who follow the stocks.
The result has been very rewarding for the fund, as both stocks have roughly
doubled in price during the period.
Aside from technology, many other areas of the marketplace offered significant
value opportunities. For example, the energy services area was especially
intriguing because, generally speaking, the industry's stock prices did not
reflect soaring oil and natural gas prices. Therefore, we increased our
weighting in energy services, which allowed us to take advantage of bargain
investment opportunities. Since that time, many of the stocks, particularly oil
drillers, have begun to perform very well. Examples include Santa Fe Snyder,
which was trading at just three times the projected cash flow, and Ocean Energy,
a company that explores for oil in such diverse areas as the Gulf of Mexico, the
Rocky Mountains and West Africa.
In addition, we continued to emphasize "old economy" basic industry stocks, such
as chemicals, paper and steel -- that were extremely depressed in 1999 as
investors seemed to focus single-mindedly on technology. We also concentrated on
" bricks and mortar" retailers that investors had brushed aside in favor of the
Internet. During the reporting period, many traditional retailers rebounded as
" dot.com" companies fell out of favor. For instance, Venator Group, the company
that owns Foot Locker, recently saw an increase in demand for sneakers after a
few years of depressed sales.
What is the fund's current strategy?
We have continued to implement our strategy of seeking companies that we believe
are inexpensive, have improving businesses and have recorded profits that, in
our view, are likely to increase. Recently, we have found this set of conditions
most evident in the technology, energy, basic industries and retailing areas.
While the general consensus is that the stock market is expensive, we remain
optimistic that good value opportunities are still plentiful.
In addition, while macroeconomic factors such as inflation, interest rates and
economic growth can have an impact on the fund's performance, our strategy is to
avoid forecasting the economy or Federal Reserve Board policy. Instead, we
select stocks for the fund on an individual, company-by-company basis. Then,
once those stocks reach certain targets, we sell them, maintaining our
time-proven investment discipline, even when it is temporarily out of favor. By
doing so, we believe we are able to successfully navigate the portfolio during
all investment climates.
May 15, 2000
(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
DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE RUSSELL 2000
VALUE INDEX IS AN UNMANAGED INDEX WHICH MEASURES THE PERFORMANCE OF THOSE
RUSSELL 2000 COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED
GROWTH VALUES.
The Fund
STATEMENT OF INVESTMENTS
<TABLE>
STATEMENT OF INVESTMENTS
April 30, 2000 (Unaudited)
COMMON STOCKS--101.6% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BASIC INDUSTRIES--13.3%
AK Steel Holding 236,100 2,611,856
Agrium 139,100 1,304,063
Arch Chemicals 148,200 2,926,950
CK Witco 484,400 5,691,700
Gaylord Container, Cl. A 432,900 (a) 2,218,613
Geon 169,500 3,707,812
Georgia Gulf 98,400 2,367,750
Hanna (M.A.) 402,900 4,633,350
National Steel, Cl. B 86,200 538,750
Olin 118,600 2,105,150
Solutia 265,800 3,621,525
TETRA Technologies 89,100 (a) 1,269,675
Timken 22,500 416,250
UCAR International 282,200 (a) 3,721,512
Wellman 236,400 5,053,050
42,188,006
CAPITAL GOODS--8.1%
AGCO 199,300 2,366,687
Albany International, Cl. A 227,414 (a) 3,453,850
Allen Telecom 243,500 (a) 4,322,125
Belden 103,300 3,066,719
DONCASTERS, ADS 201,900 (a) 1,930,669
Digi International 181,100 (a) 984,731
Flowserve 72,900 1,029,712
Foster Wheeler 456,900 4,197,769
Nordson 100 4,469
Thomas & Betts 73,900 2,277,044
Wolverine Tube 145,900 (a) 2,188,500
25,822,275
CONSUMER DURABLES--2.2%
Applied Power, Cl. A 119,100 3,409,237
Fossil 92,800 (a) 1,925,600
Polaris Industries 55,700 1,705,813
7,040,650
CONSUMER NON-DURABLES--8.8%
Alberto-Culver, Cl. A 149,700 3,386,963
Burlington Industries 39,600 (a) 173,250
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-DURABLES (CONTINUED)
Dean Foods 119,000 2,915,500
Nautica Enterprises 216,600 (a) 2,436,750
Oakley 222,100 (a) 2,554,150
Phillips-Van Heusen 225,100 1,899,281
Polaroid 161,000 3,250,187
Rock-Tenn, Cl. A 158,600 1,457,137
Russell 58,400 1,146,100
Tommy Hilfiger 339,200 (a) 2,989,200
Vans 159,000 (a) 2,404,875
Wolverine World Wide 269,200 3,230,400
27,843,793
CONSUMER SERVICES--19.5%
Abercrombie & Fitch, Cl. A 197,200 (a) 2,169,200
AnnTaylor Stores 164,100 (a) 3,394,819
Brown Shoe 277,100 2,840,275
Burlington Coat Factory Warehouse 234,600 3,519,000
CDI 45,000 (a) 1,012,500
Cumulus Media, Cl. A 174,500 (a) 2,290,313
Discount Auto Parts 165,400 (a) 1,767,713
Finlay Enterprises 159,600 (a) 1,615,950
Fleming Cos. 131,000 2,153,313
Hall, Kinion & Associates 63,100 (a) 1,549,894
Heilig-Meyers 669,700 2,050,956
Information Resources 135,500 (a) 855,344
Interim Services 108,600 (a) 1,859,775
Landry's Seafood Restaurants 172,500 1,487,813
Neiman Marcus Group, Cl. A 45,300 (a) 1,166,475
Neiman Marcus Group, Cl. B 59,400 1,503,562
OfficeMax 715,500 (a) 4,024,687
School Specialty 183,700 (a) 3,421,413
ShopKo Stores 148,600 (a) 2,656,225
Sunglass Hut International 355,000 (a) 2,662,500
Sykes Enterprises 147,800 (a) 2,956,000
Sylvan Learning Systems 217,600 (a) 3,277,600
Venator Group 708,700 (a) 8,415,812
Wet Seal, Cl. A 187,900 (a) 3,335,225
61,986,364
The Fund
STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
ENERGY--12.0%
Giant Industries 210,400 (a) 1,880,450
Global Industries 239,100 (a) 3,407,175
Key Energy Services 501,300 (a) 4,887,675
NS Group 139,500 (a) 2,214,563
National-Oilwell 172,300 (a) 4,124,431
Newpark Resources 503,400 (a) 4,153,050
Ocean Energy 490,600 (a) 6,347,137
Offshore Logistics 220,000 (a) 2,667,500
Range Resources 225,800 338,700
Santa Fe Snyder 651,400 (a) 5,984,738
Seitel 313,700 (a) 1,960,625
37,966,044
FINANCIAL SERVICES--5.5%
BARRA 114,800 (a) 4,835,950
Berkley (W.R.) 51,900 1,096,387
Blanch (E.W.) Holdings 94,800 2,109,300
Bowne & Co. 193,800 2,228,700
Everest Re Group 123,300 3,606,525
FINOVA Group 68,600 878,938
MONY Group 90,500 2,799,844
17,555,644
HEALTH CARE--3.5%
AmeriPath 199,800 (a) 1,560,937
AmeriSource Health, Cl. A 110,000 (a) 2,200,000
Omnicare 218,200 3,313,913
Sierra Health Services 21,200 (a) 75,525
Spacelabs Medical 72,800 (a) 864,500
Superior Consultant Holdings 82,800 (a) 1,174,725
Ventiv Health 168,500 1,779,781
10,969,381
SEMICONDUCTORS--4.3%
Actel 173,700 (a) 6,394,331
CFM Technologies 14,800 (a) 133,200
General Semiconductor 359,300 (a) 7,186,000
13,713,531
TECHNOLOGY--22.8%
Alternative Resources 272,700 (a) 647,663
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
Artesyn Technologies 293,200 (a) 7,110,100
Avnet 87,100 6,848,238
General DataComm Industries 220,600 (a) 1,585,563
Hypercom 257,900 (a) 3,771,787
Informix 617,250 (a) 6,789,750
Maxtor 438,900 (a) 5,239,369
Mentor Graphics 146,900 (a) 1,928,063
Modis Professional Services 511,300 (a) 3,866,706
Pioneer--Standard Electronics 384,200 5,883,062
Quantum - Hard Disk Drive 685,900 8,016,456
Renaissance Worldwide 458,600 (a) 1,719,750
Structural Dynamics Research 505,500 (a) 6,761,063
Systems & Computer Technology 216,100 (a) 5,091,856
Tech Data 127,100 (a) 5,330,256
Technology Solutions 241,800 (a) 1,586,812
72,176,494
TRANSPORTATION--1.6%
Arkansas Best 195,500 (a) 2,529,281
Yellow 131,700 (a) 2,510,531
5,039,812
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $298,158,546) 101.6% 322,301,994
LIABILITIES, LESS CASH AND RECEIVABLES (1.6%) (5,194,807)
NET ASSETS 100.0% 317,107,187
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 298,158,546 322,301,994
Cash 60,947
Receivable for investment securities sold 9,535,268
Receivable for shares of Common Stock subscribed 256,443
Dividends receivable 73,576
Prepaid expenses 20,794
332,249,022
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 303,298
Bank loan payable--Note 2 6,375,000
Payable for investment securities purchased 5,708,150
Payable for shares of Common Stock redeemed 2,617,360
Interest payable--Note 2 12,295
Accrued expenses 125,732
15,141,835
--------------------------------------------------------------------------------
NET ASSETS ($) 317,107,187
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 276,508,435
Accumulated investment (loss) (726,390)
Accumulated net realized gain (loss) on investments 17,181,694
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 24,143,448
--------------------------------------------------------------------------------
NET ASSETS ($) 317,107,187
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED) 12,947,074
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
24.49
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends 1,064,469
Interest 21,774
TOTAL INCOME 1,086,243
EXPENSES:
Management fee--Note 3(a) 1,110,496
Shareholder servicing costs--Note 3(b) 569,757
Interest expense--Note 2 37,429
Prospectus and shareholders' reports 34,337
Custodian fees--Note 3(b) 27,144
Professional fees 18,906
Registration fees 8,275
Directors' fees and expenses--Note 3(c) 3,649
Miscellaneous 2,640
TOTAL EXPENSES 1,812,633
INVESTMENT (LOSS) (726,390)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 26,838,436
Net unrealized appreciation (depreciation) on investments 42,142,270
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 68,980,706
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 68,254,316
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (726,390) (2,365,649)
Net realized gain (loss) on investments 26,838,436 16,860,336
Net unrealized appreciation (depreciation)
on investments 42,142,270 46,041,133
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 68,254,316 60,535,820
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
NET REALIZED GAIN ON INVESTMENTS (18,245,312) --
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 33,848,034 79,672,928
Dividends reinvested 17,817,025 --
Cost of shares redeemed (54,199,314) (171,484,720)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS (2,534,255) (91,811,792)
TOTAL INCREASE (DECREASE) IN NET ASSETS 47,474,749 (31,275,972)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 269,632,438 300,908,410
END OF PERIOD 317,107,187 269,632,438
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 1,503,063 3,923,980
Shares issued for dividends reinvested 850,455 --
Shares redeemed (2,421,195) (8,550,678)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (67,677) (4,626,698)
SEE NOTES TO FINANCIAL STATEMENTS.
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>
Six Months Ended
April 30, 2000 Year Ended October 31,
-----------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value,
beginning of period 20.72 17.06 21.95 17.66 14.00 12.43
Investment Operations:
Investment income (loss)--net (.06)(a) (.16)(a) (.09)(a) -- .07 .10
Net realized and unrealized
gain (loss) on investments 5.24 3.82 (4.39) 6.43 4.69 2.33
Total from Investment Operations 5.18 3.66 (4.48) 6.43 4.76 2.43
Distributions:
Dividends from investment
income--net -- -- (.02) (.04) (.09) (.33)
Dividends from net realized gain
on investments (1.41) -- (.39) (2.10) (1.01) (.53)
Total Distributions (1.41) -- (.41) (2.14) (1.10) (.86)
Net asset value, end of period 24.49 20.72 17.06 21.95 17.66 14.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 26.15(b) 21.45 (20.83) 40.22 35.99 21.30
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets .60(b) 1.23 1.21 1.23 1.27 .84
Ratio of interest expense and
dividends on securities sold short
to average net assets .01(b) .05 .01 .02 .02 .07
Ratio of net investment income
(loss) to average net assets (.24)(b) (.78) (.44) .22 .62 .79
Decrease reflected in above
expense ratios due to
undertakings by The Dreyfus
Corporation -- -- -- .05 .41 1.80
Portfolio Turnover Rate 82.24(b) 170.38 132.38 76.11 183.58 161.01
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period
($ x 1,000) 317,107 269,632 300,908 376,738 16,852 6,404
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus Small Company Value Fund (the "fund") is a separate diversified series
of Dreyfus Growth and Value Funds, Inc. (the "Company") which is registered
under the Investment Company Act of 1940, 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 Financial
Corporation. Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a
wholly-owned subsidiary of the Manager, became the distributor of the fund's
shares. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was the
distributor. Shares of the fund 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.
(B) FOREIGN CURRENCY TRANSACTIONS: The fund does not isolate that portion of the
results of the operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and maturities of
short-term securities, sales of foreign currencies, currency gains or losses
realized on securities transactions, and the difference between the amount of
dividends, interest and foreign withholding taxes recorded on the fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains or losses arise from changes in the value of
assets and liabilities other than investments in securities, resulting from
changes in exchange rates. Such gains and losses are included with net realized
and unrealized gain or loss on investments.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund receives net
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,
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
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.
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.
The average daily amount of borrowings outstanding under both arrangements
during the period ended April 30, 2000 was approximately $1,238,900, with a
related weighted average annualized interest rate of 6.08%.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .75 of 1% of the value of the fund's average
daily net assets and is payable monthly.
(B) Under the Shareholder Services Plan, the fund pays the distributor at an
annual rate of .25 of 1% of the value of the fund's average daily net assets for
the provision of certain services. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. The distributor may
make payments to Service Agents (a securities dealer, financial institution or
other industry professional) in respect of these services. The distributor
determines the amounts to be paid to Service Agents. During the period ended
April 30, 2000, the fund was charged $370,165 pursuant to the Shareholder
Services Plan, of which $85,323 was paid to DSC.
The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the fund. During the period
ended April 30, 2000, the fund was charged $90,416 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 April 30, 2000, the fund was
charged $27,144 pursuant to the custody agreement.
(C) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 25, 2000, each
Board member receives an annual fee of $25,000 and a fee of $4,000 for each
meeting held in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 25, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the
Company an annual fee of $5,000 and an attendance fee of $500 per meeting. The
Chairman of the Board received an additional 25% of such compensation. Subject
to the fund's Director Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the Company's annual retainer fee and per meeting fee paid
at the time the Board member achieved emeritus status.
The Fund
NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED)
(D) A 1% redemption fee is charged and retained by the fund on shares redeemed
within fifteen days following the date of their issuance, including redemptions
made through the use of the fund's exchange privilege. Effective June 1, 2000,
this fee will be chargeable within thirty days following the date of issuance of
such shares.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended April 30, 2000, amounted to
$245,307,883 and $252,982,920, respectively.
At April 30, 2000, accumulated net unrealized appreciation on investments was
$24,143,448, consisting of $54,419,270 gross unrealized appreciation and
$30,275,822 gross unrealized depreciation.
At April 30, 2000, 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).
NOTES
For More Information
Dreyfus
Small Company Value Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 253SA004