Dreyfus
International
Value Fund
ANNUAL REPORT August 31, 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 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
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Back Cover
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, 1999 through August 31,
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, Sandor Cseh.
While international stocks generally provided modestly attractive returns on
average for U.S. investors over the past year, the period was marked by high
levels of volatility and dramatic shifts in investor sentiment. When the
reporting period began, it had become apparent that global economic growth was
substantially stronger than many analysts had expected. In fact, most global
markets had already rebounded sharply from 1998's currency and credit crises in
emerging market countries. The rally continued through the fourth quarter of
1999 and into the first quarter of 2000, before peaking in early March.
In April, many developed and emerging markets around the world experienced
heightened levels of volatility when expensively priced technology stocks began
to decline sharply in the wake of evidence that inflationary pressures were
building. This correction, combined with a strong U.S. dollar relative to many
foreign currencies, eroded much of the reporting period's earlier gains.
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 15, 2000
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, 2000, Dreyfus International Value Fund
produced a total return of 3.48%.(1) The fund's benchmark, the Morgan Stanley
Capital International Europe, Australasia, Far East (MSCI EAFE) Index (the "MSCI
EAFE Index" ), produced a total return of 9.55% for the same period.(2) The
Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE)
Value Index (the "MSCI EAFE Value Index") produced a total return of 5.47% for
the same period.(3)
We attribute the fund' s relative underperformance primarily to an especially
strong environment for growth investing during the first seven months of the
reporting period. While value investing made a strong comeback during the last
five months of the period, it was not enough to match the returns provided by
the growth-oriented investments that comprise a substantial portion of the MSCI
EAFE Index.
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 a
broad range of countries and generally 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.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
* BUSINESS HEALTH, or overall efficiency and profitability as measured by
return on assets and return on equity.
* BUSINESS MOMENTUM, or the presence of a catalyst (such as corporate
restructuring, changing management or positive earnings surprise) that can
potentially trigger a price increase near term to midterm.
The fund typically sells a stock when we no longer consider it a value company,
when it 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?
Several factors influenced the fund' s performance over the past 12 months.
First, the value style of investing was out of favor early in the period,
holding back our overall performance in spite of a later resurgence of this type
of investing. Second, the fund was both positively and adversely affected by the
way we allocated assets among industry groups. During the first half of the
period, the fund' s performance suffered from our relatively small exposure to
telecom and technology stocks, which are traditionally considered
growth-oriented investments. However, our emphasis on financial companies helped
returns during the second half of the period.
Third, as with many international funds, the strength of the U.S. dollar hurt
performance over the past year. This fund invests primarily in overseas stocks
that are denominated in local currencies. As the dollar strengthened relative to
local currencies, those investments translated into fewer dollars. Overall
during the reporting period, the U.S. dollar appreciated relative to the euro,
the British pound and the Japanese yen.
We responded to these market influences by adjusting our country allocation
strategy. For example, we trimmed our exposure to Japan, due in part to
uncertainties surrounding higher interest rates initiated by the Bank of Japan.
While we are pleased with Japan's gradual economic recovery, we believe that
Japan' s economy is not nearly as strong as the economies of the other major
industrialized countries.
Therefore, we chose to minimize our investments in this region until we see a
more positive outlook there. On the other hand, the fund benefited from strong
performance within the United Kingdom. We enjoyed attractive gains from many of
the U.K.' s financial stocks, including banks and insurance companies. Many of
these stocks rebounded sharply from depressed levels earlier in the year, and
some of the bank stocks in our portfolio were targeted for acquisition.
What is the fund's current strategy?
As always, we plan to continue to focus on value stocks. We are encouraged by
the recent recovery in value stocks after the relatively long period in which
they were out of favor among investors.
In addition, we expect to maintain broad diversification across many countries
and industries. For example, as of August 31, 2000 the portfolio's top country
holdings were as follows: Japan -- 22.7%; United Kingdom -- 15.3%; France --
9.2% ; Germany -- 8.0% ; and the Netherlands -- 6.9%. Of course, portfolio
composition is subject to change at any time.
September 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. INVESTMENTS IN FOREIGN SECURITIES INVOLVE SPECIAL
RISKS. PLEASE READ THE PROSPECTUS FOR FURTHER DISCUSSION OF THESE RISKS.
(2) SOURCE: LIPPER INC. -- THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE,
AUSTRALASIA, FAR EAST (MSCI EAFE) INDEX 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.
(3) SOURCE: LIPPER INC. -- THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE,
AUSTRALASIA, FAR EAST (MSCI EAFE) VALUE INDEX IS AN UNMANAGED INDEX COMPOSED OF
A SAMPLE OF VALUE COMPANIES REPRESENTATIVE OF THE MARKET STRUCTURE OF EUROPEAN
AND PACIFIC BASIN COUNTRIES AND INCLUDES NET DIVIDENDS REINVESTED.
The Fund
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 8/31/00
<TABLE>
Inception From
Date 1 Year Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FUND 9/29/95 3.48% 10.33%
</TABLE>
(+) SOURCE: LIPPER 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 $10,000 INVESTMENT MADE IN THE
MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST
(EAFE((reg.tm))) INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS ARE REINVESTED.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE
FEES AND EXPENSES. THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA,
FAR EAST (EAFE((reg.tm))) INDEX, WHICH IS THE PROPERTY OF MORGAN STANLEY & CO.
INCORPORATED, IS AN UNMANAGED INDEX COMPOSED OF A SAMPLE OF COMPANIES
REPRESENTATIVE OF THE MARKET STRUCTURE OF EUROPEAN AND PACIFIC BASIN COUNTRIES
AND INCLUDES NET DIVIDENDS REINVESTED. THE INDEX DOES NOT TAKE INTO ACCOUNT
CHARGES, FEES AND OTHER EXPENSES. FURTHER INFORMATION RELATING TO FUND
PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN
THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT
STATEMENT OF INVESTMENTS
<TABLE>
August 31, 2000
COMMON STOCKS--94.2% Shares Value ($)
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<S> <C> <C>
AUSTRALIA--1.5%
Australia & New Zealand Banking 620,335 4,667,912
Goodman Fielder 1,781,206 1,271,407
5,939,319
AUSTRIA--.5%
Bank Austria 40,591 2,172,034
BELGIUM--1.2%
Dexia 32,712 4,592,329
Dexia (Strips) 18,298 (a) 162
4,592,491
BRAZIL--.8%
Petroleo Brasileiro, ADR 54,815 1,688,987
Tele Norte Leste, ADR 2 51
Telecomunicacoes Brasileiras, ADS 16,567 1,520,022
3,209,060
DENMARK--.4%
Jyske Bank 99,260 1,749,387
FINLAND--.4%
Kesko, Cl. B 169,966 1,553,527
FRANCE--9.2%
Air Liquide 40,227 5,122,583
Alstom 92,405 2,070,505
Assurances Generales de France 77,369 3,899,732
Banque Nationale de Paris 56,441 5,183,874
Bongrain 4,936 1,279,458
Compagnie de Saint-Gobain 12,109 1,609,680
Compagnie Generale des Etablissments Michelin, Cl. B 114,332 3,348,121
Groupe Air France 99,695 1,910,053
Societe Generale, Cl. A 35,004 2,071,872
Suez Lyonnaise des Eaux 8,465 1,253,726
Total Fina Elf, ADS 88,404 6,586,098
Usinor 194,673 2,081,672
36,417,374
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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GERMANY--8.0%
Bayer 140,129 5,925,300
Deutsche Bank 61,536 5,367,873
Deutsche Lufthansa 123,563 2,735,763
E.On 138,367 6,630,491
MG Technologies 152,883 1,832,880
Merck KGaA 149,158 4,963,605
Volkswagen 100,069 4,351,260
31,807,172
GREECE--.9%
Hellenic Telecommunications Organization, ADS 390,128 3,608,684
HONG KONG--1.4%
ASAT, ADR 52,736 (a) 507,584
Hongkong Electric 1,569,076 4,969,187
5,476,771
INDIA--.3%
Videsh Sanchar Nigam, ADR 99,200 (b) 1,066,400
IRELAND--.8%
Bank of Ireland 505,556 2,983,392
ITALY--5.4%
Banca Popolare di Bergamo Credito Varesino 158,311 2,842,015
ENI 604,371 3,502,162
ENI, ADS 47,400 2,769,938
Finmeccanica 2,869,580 (a) 3,796,780
San Paulo--IMI 163,153 2,888,400
Telecom Italia 954,862 5,651,788
21,451,083
JAPAN--22.7%
AIFUL 25,850 2,229,284
CANON 156,000 6,975,253
Credit Saison 278,300 6,717,496
Dai-Tokyo Fire and Marine Insurance 535,000 1,895,669
FUJI MACHINE MANUFACTURING 89,400 4,164,961
HONDA MOTOR 81,000 2,961,192
KATOKICHI 58,000 1,440,757
LAWSON 14,500 751,641
COMMON STOCKS (CONTINUED) Shares Value ($)
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JAPAN (CONTINUED)
MABUCHI MOTOR 44,300 5,402,540
MINEBEA 432,000 5,588,301
Marubeni 1,503,000 4,156,215
Matsumotokiyoshi 70,000 6,299,213
Mitsubishi Heavy Industries 374,000 1,314,679
NAMCO 81,700 2,282,209
NIPPON TELEGRAPH & TELEPHONE 98 1,166,667
Nippon Express 902,000 5,064,661
Nishimatsu Construction 404,000 1,310,311
RINNAI 184,600 3,780,943
ROHM 15,500 4,409,683
SANKYO COMPANY 128,000 2,963,629
SHOHKON FUND & CO. 10,300 1,660,668
Sekisui Chemical 295,000 1,031,449
Seventy seven Bank 392,000 3,049,869
Shin-Estu Chemical 83,000 4,076,865
TDK 36,000 5,318,335
Yamanouchi Pharmaceutical 80,000 3,959,505
89,971,995
MEXICO--.3%
Telefonos de Mexico, Cl. L, ADR 24,311 1,323,430
NETHERLANDS--6.9%
ABN AMRO 197,739 4,913,260
Akzo Nobel 17,320 765,568
Akzo Nobel, ADS 69,200 3,096,700
Buhrmann 55,956 1,586,489
Fortis 183,443 5,643,836
Hunter Douglas 123,258 3,527,478
Stork 194,329 2,103,860
Vedior 179,898 2,354,712
Wolters Kluwer 172,630 3,492,775
27,484,678
NEW ZEALAND--.7%
Telecom Corporation of New Zealand 988,339 2,747,355
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
NORWAY--.7%
Norsk Hydro 68,579 2,941,427
PHILIPPINES--.3%
Manila Electric, Cl. B 813,480 1,181,309
PORTUGAL--.9%
Portugal Telecom 338,931 3,524,994
SINGAPORE--2.5%
NatSteel Electronics 682,000 2,278,485
Oversea-Chinese Banking 664,855 4,596,929
United Overseas Bank 390,167 3,060,400
9,935,814
SOUTH KOREA--1.1%
Korea Electric Power, ADR 137,064 2,312,955
Pohang Iron & Steel, ADR 86,920 1,847,050
4,160,005
SPAIN--4.5%
Banco Bilbao Vizcaya Argentaria 185,817 2,755,379
Banco Popular Espanol 114,412 3,396,152
Endesa 351,954 6,855,511
Repsol-YPF, ADR 249,788 4,948,925
17,955,967
SWEDEN--1.7%
Autoliv 163,208 3,715,754
Investor, Cl. B 209,424 2,971,654
6,687,408
SWITZERLAND--5.8%
Barry Callebaut 22,938 3,478,249
Clariant 4,305 1,471,267
Forbo 3,145 1,376,502
Novartis 4,220 (a) 6,384,538
Sulzer 3,912 (a) 2,842,435
Swisscom 6,614 1,876,689
UBS 38,850 5,656,792
23,086,472
UNITED KINGDOM--15.3%
BAE SYSTEMS 845,518 5,262,084
BOC 216,985 3,150,949
Barclays 156,433 3,903,322
COMMON STOCKS (CONTINUED) Shares Value ($)
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UNITED KINGDOM (CONTINUED)
Bunzl 932,345 5,220,854
Enterprise Oil 349,170 2,778,377
Laird 251,528 923,176
Morgan Crucible 914,228 3,183,049
PowerGen 401,048 3,397,714
Rexam 978,655 3,975,257
Rio Tinto 216,120 3,445,643
Royal & Sun Alliance Insurance 874,954 6,092,620
Royal Bank of Scotland 182,982 3,302,223
Safeway 807,428 3,092,327
Scottish & Southern Energy 290,274 2,349,741
Tomkins 416,944 1,312,548
Unilever 898,675 5,625,499
Wolseley 658,298 3,638,523
60,653,906
TOTAL COMMON STOCKS
(cost $361,785,456) 373,681,454
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Principal
SHORT-TERM INVESTMENTS--2.0% Amount ($) Value ($)
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U.S. TREASURY BILLS:
5.84%, 9/21/2000 3,032,000 3,020,630
5.67%, 9/28/2000 412,000 410,191
5.65%, 10/5/2000 2,527,000 2,512,394
6.12%, 11/9/2000 102,000 100,852
6.23%, 11/16/2000 1,930,000 1,905,142
TOTAL SHORT-TERM INVESTMENTS
(cost $7,951,335) 7,949,209
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TOTAL INVESTMENTS (cost $369,736,791) 96.2% 381,630,663
CASH AND RECEIVABLES (NET) 3.8% 15,154,938
NET ASSETS 100.0% 396,785,601
(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 31,2000, THIS
SECURITY AMOUNTED TO $1,066,400 OR APPROXIMATELY .3% OF NET ASSETS.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
Cost Value
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ASSETS ($):
Investments in securities--See Statement of
Investments 369,736,791 381,630,663
Cash 6,181,569
Cash denominated in foreign currencies 9,989,859 9,878,542
Receivable for shares of Common Stock subscribed 2,400,000
Receivable for investment securities sold 1,741,292
Dividends receivable 1,053,849
Prepaid expenses 51,668
402,937,583
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 422,378
Payable for investment securities purchased 4,916,183
Payable for shares of Common Stock redeemed 671,123
Net unrealized depreciation on forward
currency exchange contracts--Note 4(a) 4,304
Accrued expenses 137,994
6,151,982
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NET ASSETS ($) 396,785,601
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 360,894,187
Accumulated undistributed investment income -- net 2,975,231
Accumulated net realized gain (loss) on investments
and foreign currency transactions 21,154,715
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 11,761,468
--------------------------------------------------------------------------------
NET ASSETS ($) 396,785,601
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 23,050,681
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 17.21
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS
Year Ended August 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $1,133,256 foreign taxes withheld at source) 7,013,781
Interest 730,778
TOTAL INCOME 7,744,559
EXPENSES:
Management fee--Note 3(a) 3,390,598
Shareholder servicing costs--Note 3(b) 912,966
Custodian fees 285,659
Registration fees 82,976
Professional fees 31,712
Prospectus and shareholders' reports 19,339
Directors' fees and expenses--Note 3(c) 7,531
Loan commitment fees--Note 2 2,501
Miscellaneous 16,232
TOTAL EXPENSES 4,749,514
INVESTMENT INCOME--NET 2,995,045
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments and foreign currency
transactions 27,416,559
Net realized gain (loss) on forward currency exchange contracts 1,863
NET REALIZED GAIN (LOSS) 27,418,422
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions (16,443,316)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 10,975,106
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 13,970,151
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
------------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income --net 2,995,045 2,000,064
Net realized gain (loss) on investments 27,418,422 7,416,018
Net unrealized appreciation (depreciation)
on investments (16,443,316) 41,585,254
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 13,970,151 51,001,336
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (1,879,134) (1,669,640)
Net realized gain on investments (13,055,032) (8,578,499)
TOTAL DIVIDENDS (14,934,166) (10,248,139)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 1,117,024,340 272,816,276
Dividends reinvested 11,642,447 7,975,826
Cost of shares redeemed (991,584,573) (223,584,564)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 137,082,214 57,207,538
TOTAL INCREASE (DECREASE) IN NET ASSETS 136,118,199 97,960,735
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 260,667,402 162,706,667
END OF PERIOD 396,785,601 260,667,402
Undistributed investment income--net 2,975,231 1,859,320
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 65,171,993 17,014,785
Shares issued for dividends reinvested 686,870 539,272
Shares redeemed (57,686,451) (13,897,438)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 8,172,412 3,656,619
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>
Year Ended August 31,
----------------------------------------------------------------
2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 17.52 14.50 15.05 13.23 12.50
Investment Operations:
Investment income--net .15(b) .16(b) .13 .07 .15
Net realized and unrealized
gain (loss) on investments .44 3.76 (.20) 1.98 .65
Total from Investment Operations .59 3.92 (.07) 2.05 .80
Distributions:
Dividends from investment income--net (.11) (.15) (.08) (.10) (.04)
Dividends from net realized
gain on investments (.79) (.75) (.40) (.13) (.03)
Total Distributions (.90) (.90) (.48) (.23) (.07)
Net asset value, end of period 17.21 17.52 14.50 15.05 13.23
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 3.48 28.19 (.62) 15.72 6.43(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.40 1.40 1.44 1.49 1.39(c)
Ratio of net investment income
to average net assets .88 1.00 1.17 1.09 1.78(c)
Decrease reflected in above expense ratios
due to undertakings by
The Dreyfus Corporation -- -- -- .03 .51(c)
Portfolio Turnover Rate 37.64 30.68 34.46 25.35 19.14(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 396,786 260,667 162,707 96,896 25,638
(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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
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 nine 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., 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 which are
sold to the public without a sales charge. Prior to March 22, 2000, Premier
Mutual Fund Services, Inc. was the distributor.
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 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 received net
earnings credits of $2,102 during the period ended August 31, 2000 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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 participates with other Dreyfus-managed funds in a $500 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, 2000, 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, 2000, the fund was charged $847,650 pursuant to the Shareholder Services
Plan, of which $475,913 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 August 31, 2000, the fund was charged $48,304 pursuant to the transfer
agency 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 who is not an "affiliated person" as defined in the Act receives an
annual fee of $25,000 and an attendance fee of $4,000 for each in person meeting
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 fund 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 Emeritus
Program Guidelines, Emeritus Board members, if any, receive 50% of the fund's
annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
(d) A 1% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. Prior to June 1, 2000, this
fee was chargeable within fifteen days following the date of issuance of such
shares.
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, 2000, amounted to $224,129,539 and $119,047,325,
respectively.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The fund enters into forward currency exchange contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to settle foreign currency transactions. When executing forward
currency exchange contracts, the fund is obligated to buy or sell a foreign
currency at a specified rate on a certain date in the future. With respect to
sales of forward currency exchange contracts, the fund would incur a loss if the
value of the contract increases between the date the forward contract is opened
and the date the forward contract is closed. The fund realizes a gain if the
value of the contract decreases between those dates. With respect to purchases
of forward currency exchange contracts, the fund would incur a loss if the value
of the contract decreases between the date the forward contract is opened and
the date the forward contract is closed. The fund realizes a gain if the value
of the contract increases between those dates. The fund is also exposed to
credit risk associated with counter party nonperformance on these forward
currency exchange contracts which is typically limited to the unrealized gain on
each open contract. The following summarizes open forward currency exchange
contracts at August 31, 2000:
<TABLE>
Foreign
Forward Currency Currency Unrealized
Exchange Contracts Amounts Cost ($) Value ($) (Depreciation) ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES:
New Zealand Dollars,
expiring 9/1/2000 257,195 110,414 109,822 (592)
Great Britain Pounds,
expiring 9/5/2000 757,595 1,102,755 1,099,043 (3,712)
TOTAL (4,304)
</TABLE>
(b) At August 31, 2000, accumulated net unrealized appreciation on investments
and forward currency exchange contracts was $11,889,568, consisting of
$39,082,223 gross unrealized appreciation and $27,192,655 gross unrealized
depreciation.
At August 31, 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).
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, 2000,
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 auditing standards generally accepted
in the United States. 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,
2000 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 International Value Fund at August 31, 2000, 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 accounting principles generally accepted
in the United States.
New York, New York
October 6, 2000
The Fund
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, 2000:
-- the total amount of taxes paid to foreign countries was $1,133,256
-- the total amount of income sourced from foreign countries was $6,121,524
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 2000 calendar year with form 1099-DIV which will be mailed by January 31,
2001.
For Federal tax purposes the fund hereby designates $.5930 per share as a
long-term capital gain distribution of the $.9060 per share paid on December 15,
1999.
The fund also designates .40% of the ordinary dividends paid during the fiscal
year ended August 31, 2000 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2001 of the
percentage applicable to the preparation of their 2000 income tax returns.
NOTES
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
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 254AR008
================================================================================
Dreyfus
Premier Technology Growth Fund
ANNUAL REPORT August 31, 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 Fund Performance
8 Statement of Investments
11 Statement of Assets and Liabilities
12 Statement of Operations
13 Statement of Changes in Net Assets
16 Financial Highlights
21 Notes to Financial Statements
27 Report of Independent Auditors
28 Important Tax Information
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
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, 1999 through August
31, 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, Mark Herskovitz.
Although large-cap U.S. stocks generally provided attractive returns over the
past year, the reporting period was marked by high levels of volatility and
dramatic shifts in investor sentiment. Between September 1999 and March 2000,
the large-cap market advanced strongly, led by fast-growing technology stocks
that, many investors believed, would benefit most from the "new economy."
Subsequently, however, technology and other growth-oriented stocks corrected
sharply over concerns about rising interest rates and extremely high valuations.
In fact, since technology stocks declined in March and April 2000, various
investment styles and market sectors have moved in and out of favor among
investors. As a result, and in contrast to the first half of the reporting
period, investors with broadly diversified stock portfolios generally tended to
do better during the second half of the reporting period than "momentum"
investors who sought to follow market trends.
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 15, 2000
DISCUSSION OF FUND PERFORMANCE
Mark Herskovitz, Primary Portfolio Manager
How did Dreyfus Premier Technology Growth Fund perform relative to its
benchmark?
For the 12-month period ended August 31, 2000, Dreyfus Premier Technology Growth
Fund produced a total return of 110.71% for Class A shares, 109.06% for Class B
shares, 109.06% for Class C shares, 111.21% for Class R shares, and 109.93% for
Class T shares.(1) In comparison, the Morgan Stanley High Technology 35 Index
provided an 87.32%(2) return and the Standard & Poor's 500 Composite Stock Price
Index (" S& P 500 Index" ) provided a 16.31%(3) return over the same period
We attribute the fund's stellar performance to our focus on fundamentally strong
technology companies. During the first half of the reporting period, the fund
benefited from market-wide enthusiasm for the technology sector, which drove
stock prices up dramatically. During the second half of the reporting period,
however, the technology sector experienced a sharp correction. Speculative
Internet stocks with no current earnings were particularly hard hit. However,
because the fund primarily emphasized technology companies with attractive
fundamentals in growing market sub-sectors, by August 31 the fund recovered
almost all of the ground it lost during the correction. Of course, the
technology sector involves special risks and is among the most volatile sectors
of the market.
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, we look for sectors within the technology area
that we expect to outperform other sectors. We emphasize the most attractive
sectors, and de-emphasize the less appealing sectors. Among the sectors
evaluated are those that develop, produce or distribute products or services in
the computer,
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
semiconductor, electronics, communications, biotechnology, computer software and
hardware, electronic components and systems, data networking and
telecommunications equipment and services.
Typically, we look for companies that are leaders in their market segments and
are 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 leadership
positions over time. Although we look for companies with the potential for
strong earnings growth rates, some of our investments may currently be
experiencing losses. Moreover, we 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?
Over the past year, prevailing market sentiment both positively and negatively
influenced the fund' s performance. Between September 1999 and March 2000,
technology stocks that investors believed would succeed in the "new economy"
drove the stock market' s advance. However, investors were not particularly
selective during this time, driving up the prices of both fundamentally sound
companies and their more speculative counterparts.
In March and April, market sentiment shifted dramatically when investors became
concerned that the Federal Reserve Board's efforts to slow economic growth might
cause demand for new technologies to slacken. A major measure of technology
stock performance, the Nasdaq Composite Index, fell substantially. Despite this
precipitous drop, we maintained our conviction that the strong business
fundamentals of the technology businesses in our portfolio had not changed.
Indeed, the market later justified this belief, and many of the stocks in our
portfolio began to recover. However, investors had become much more selective,
rewarding stocks with strong business fundamentals and positive earnings
reports, while avoiding those without such attributes. Because of our unwavering
focus on quality, this shift toward greater selectivity benefited the fund's
performance.
What is the fund's current strategy?
We have continued to focus primarily on companies that our research indicates
are fundamentally sound and in good positions to prosper from technological
advances. These have included companies that are engaged in the development of
telecommunications technologies, including businesses that are helping to
upgrade existing land lines and those developing new wireless technologies.
Companies that we believe could benefit from telecommunications spending include
manufacturers of telecommunications equipment such as JDS Uniphase, data storage
software developers such as Veritas Software, specialized semiconductor
manufacturers such as PMC Sierra, and networking companies such as Juniper
Networks.
On the other hand, our research caused us to avoid certain technology sectors,
particularly the "pure play" Internet companies.
Because of the high valuations that characterize the stock prices of today's
technology leaders, we again caution that technology stocks are likely to
continue to experience high levels of short-term volatility, and investors
should not be surprised to see periodic and significant declines. We strive to
manage these risks by maintaining a broadly diversified portfolio and focusing
on fundamentally sound companies over the long term.
September 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID,
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A AND CLASS T 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: BLOOMBERG L.P. -- REFLECTS THE REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE MORGAN STANLEY HIGH TECHNOLOGY 35
INDEX IS AN UNMANAGED EQUAL DOLLAR-WEIGHTED INDEX OF 35 STOCKS FROM THE
ELECTRONICS-BASED SUBSECTORS.
(3) SOURCE: LIPPER INC. -- REFLECTS THE REINVESTMENT OF INCOME DIVIDENDS AND,
WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX (S&P 500 INDEX) IS A WIDELY ACCEPTED, UNMANAGED
INDEX OF U.S. STOCK MARKET PERFORMANCE.
The Fund
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
((+)) SOURCE: BLOOMBERG L.P.
((+)(+)) SOURCE: LIPPER INC.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
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 EACH 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, CLASS R AND CLASS T 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. 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
<TABLE>
Average Annual Total Returns AS OF 8/31/00
Inception From
Date 1 Year Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A SHARES
WITH SALES CHARGE (5.75%) 10/13/97 98.57% 76.23%
WITHOUT SALES CHARGE 10/13/97 110.71% 79.87%
CLASS B SHARES
WITH REDEMPTION((+)) 4/15/99 105.06% 85.02%
WITHOUT REDEMPTION 4/15/99 109.06% 87.31%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 4/15/99 108.06% 87.19%
WITHOUT REDEMPTION 4/15/99 109.06% 87.19%
CLASS R SHARES 4/15/99 111.21% 89.09%
CLASS T SHARES
WITH SALES CHARGE (4.5%) 8/31/99 100.48% 100.48%
WITHOUT SALES CHARGE 8/31/99 109.93% 109.93%
</TABLE>
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, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) 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
STATEMENT OF INVESTMENTS
<TABLE>
August 31, 2000
STATEMENT OF INVESTMENTS
COMMON STOCKS--96.1% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SERVICES--2.0%
Automatic Data Processing 1,200,000 71,550,000
DATA STORAGE--9.8%
Brocade Communications Systems 475,000 (a) 107,260,937
EMC 1,200,000 (a) 117,600,000
Network Appliance 975,000 (a) 114,075,000
338,935,937
HARDWARE--9.7%
Apple Computer 1,000,000 (a) 60,937,500
Flextronics International 1,230,000 (a) 102,474,375
Sanmina 800,000 (a) 94,400,000
Sun Microsystems 625,000 (a) 79,335,938
337,147,813
INTERNET--2.3%
VeriSign 400,000 (a) 79,550,000
NETWORKING--10.3%
Cisco Systems 1,130,000 (a) 77,405,000
Finisar 1,150,000 (a) 53,331,250
Juniper Networks 625,000 (a) 133,593,750
Sycamore Networks 685,000 (a) 94,187,500
358,517,500
SEMICONDUCTOR EQUIPMENT--6.9%
Applied Materials 750,000 (a) 64,734,375
PRI Automation 1,000,000 (a) 51,625,000
Teradyne 750,000 (a) 48,609,375
Xilinx 850,000 (a) 75,543,750
240,512,500
SEMICONDUCTORS--15.9%
Intel 1,400,000 104,825,000
Micrel 1,400,000 (a) 107,012,500
PMC-Sierra 350,000 (a) 82,600,000
Taiwan Semiconductor Manufacturing, ADR 2,300,000 (a) 80,500,000
Texas Instruments 1,250,000 83,671,875
Vitesse Semiconductor 1,050,000 (a) 93,253,125
551,862,500
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
SOFTWARE--17.1%
Ariba 450,000 (a) 70,818,750
BEA Systems 1,400,000 (a) 95,287,500
Microsoft 450,000 (a) 31,415,625
Oracle 1,000,000 (a) 90,937,500
Rational Software 677,900 (a) 87,237,256
Siebel Systems 515,000 (a) 101,873,437
Tibco Software 365,000 (a) 37,207,188
Veritas Software 650,000 (a) 78,365,625
593,142,881
TELECOMMUNICATION EQUIPMENT--17.7%
Ciena 450,000 (a) 99,759,375
GlobeSpan 690,000 (a) 83,101,875
JDS Uniphase 800,000 (a) 99,587,500
Nokia, ADR 1,700,000 76,393,750
Nortel Networks 1,200,000 97,875,000
SDL 260,000 (a) 103,301,250
Tellabs 1,000,000 (a) 56,187,500
616,206,250
TELECOMMUNICATION SERVICES--4.4%
Metromedia Fiber Network, Cl. A 2,000,000 (a) 79,875,000
NEXTLINK Communications, Cl. A 2,100,000 (a) 73,631,250
WorldCom 5 (a) 183
153,506,433
TOTAL COMMON STOCKS
(cost $1,946,889,108) 3,340,931,814
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
SHORT-TERM INVESTMENTS-4.2% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
5.92%, 9/14/2000 17,861,000 17,820,813
5.97%, 9/28/2000 32,047,000 31,906,314
5.93%, 10/12/2000 64,174,000 63,726,707
6.05%, 11/9/2000 20,579,000 20,347,486
6.04%, 11/16/2000 12,059,000 11,903,680
TOTAL SHORT-TERM INVESTMENTS
(cost $145,712,233) 145,705,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $2,092,601,341) 100.3% 3,486,636,814
LIABILITIES, LESS CASH AND RECEIVABLES (.3%) (11,414,390)
NET ASSETS 100.0% 3,475,222,424
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 2,092,601,341 3,486,636,84
Cash 5,038,602
Receivable for shares of Common Stock subscribed 10,275,490
Dividends receivable 65,158
Prepaid expenses 186,450
3,502,202,514
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 3,807,720
Payable for investment securities purchased 19,196,329
Payable for shares of Common Stock redeemed 3,338,120
Accrued expenses 637,921
26,980,090
--------------------------------------------------------------------------------
NET ASSETS ($) 3,475,222,424
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 2,233,141,58
Accumulated net realized gain (loss) on investments (151,954,632)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4(b) 1,394,035,473
--------------------------------------------------------------------------------
NET ASSETS ($) 3,475,222,424
<TABLE>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 1,659,529,767 1,107,998,187 602,842,227 85,802,797 19,049,446
Shares Outstanding 24,583,719 16,585,530 9,030,895 1,267,537 283,219
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 67.51 66.81 66.75 67.69 67.26
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
August 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 6,821,603
Cash dividends (net of $140,059 foreign taxes withheld at source) 628,443
TOTAL INCOME 7,450,046
EXPENSES:
Management fee-Note 3(a) 15,928,289
Shareholder servicing costs-Note 3(c) 7,198,466
Distribution fees-Note 3(b) 7,142,633
Registration fees 647,202
Prospectus and shareholders' reports 164,871
Custodian fees-Note 3(c) 135,505
Professional fees 58,869
Directors' fees and expenses-Note 3(d) 31,008
Miscellaneous 12,486
TOTAL EXPENSES 31,319,329
INVESTMENT (LOSS) (23,869,283)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-NOTE 4 ($):
Net realized gain (loss) on investments:
Long transactions (143,254,566)
Short sale transactions (6,345,926)
NET REALIZED GAIN (LOSS) (149,600,492)
Net unrealized appreciation (depreciation) on investments 1,286,958,24
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 1,137,357,78
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,113,488,45
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
------------------------------------
2000 1999(a)
-------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (23,869,283) (1,590,565)
Net realized gain (loss) on investments (149,600,492) 6,529,961
Net unrealized appreciation (depreciation)
on investments 1,286,958,240 107,824,217
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,113,488,465 112,763,613
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares - (145,298)
Net realized gain on investments:
Class A shares (4,549,696) -
Class B shares (1,632,030) -
Class C shares (835,469) -
Class R shares (35,716) -
Class T shares (13,621) -
TOTAL DIVIDENDS (7,066,532) (145,298)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Class A shares 1,686,181,939 478,537,215
Class B shares 830,678,301 71,857,010
Class C shares 533,172,623 30,684,800
Class R shares 80,808,421 1,322,691
Class T shares 16,601,656 1,000
Dividends reinvested:
Class A shares 4,073,371 140,315
Class B shares 1,231,955 -
Class C shares 621,255 -
Class R shares 26,207 -
Class T shares 13,470 -
(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.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Year Ended August 31,
------------------------------------
2000 1999(a)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($) (continued):
Cost of shares redeemed:
Class A shares (1,153,660,332) (140,362,213)
Class B shares (81,855,087) (1,071,648)
Class C shares (106,344,038) (1,474,017)
Class R shares (6,359,052) (112,958)
Class T shares (900,696) -
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 1,804,289,993 439,522,195
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,910,711,926 552,140,510
--------------------------------------------------------------------------------
NET ASSETS ($)
Beginning of Period 564,510,498 12,369,988
END OF PERIOD 3,475,222,424 564,510,498
(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.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended August 31,
----------------------------------
2000 1999(a)
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(B)
Shares sold 31,039,426 18,489,923
Shares issued for dividends reinvested 86,704 8,046
Shares redeemed (20,808,284) (5,253,395)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 10,317,846 13,244,574
--------------------------------------------------------------------------------
CLASS B(B)
Shares sold 15,708,144 2,324,739
Shares issued for dividends reinvested 26,346 -
Shares redeemed (1,438,969) (34,730)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 14,295,521 2,290,009
--------------------------------------------------------------------------------
CLASS C
Shares sold 9,906,575 988,394
Shares issued for dividends reinvested 13,298 -
Shares redeemed (1,829,909) (47,463)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 8,089,964 940,931
--------------------------------------------------------------------------------
CLASS R
Shares sold 1,334,225 42,515
Shares issued for dividends reinvested 557 -
Shares redeemed (106,260) (3,500)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 1,228,522 39,015
--------------------------------------------------------------------------------
CLASS T
Shares sold 298,085 31
Shares issued for dividends reinvested 287 -
Shares redeemed (15,184) -
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 283,188 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) DURING THE PERIOD ENDED AUGUST 31, 2000, 56,893 CLASS B SHARES REPRESENTING
$3,394,138 WERE AUTOMATICALLY CONVERTED TO 56,449 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
<TABLE>
Year Ended August 31,
-------------------------------------------
CLASS A SHARES 2000 1999 1998(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 32.21 12.11 12.50
Investment Operations:
Investment (loss) (.43)(b) (.18)(b) (.10)(b)
Net realized and unrealized gain (loss)
on investments 35.98 20.36 (.29)
Total from Investment Operations 35.55 20.18 (.39)
Distributions:
Dividends from net realized gain on investments (.25) (.08) --
Net asset value, end of period 67.51 32.21 12.11
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 110.71(c) 167.23(c) (3.12)(c,d,e)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to average net assets 1.12 1.20 1.12(d)
Ratio of interest expense to average net assets -- -- .01(d)
Ratio of net investment (loss)
to average net assets (.78) (.64) (.77)(d)
Decrease reflected in above expense ratios
due to undertakings by The Dreyfus Corporation -- .02 .81(d)
Portfolio Turnover Rate 112.24 78.93 291.12(d)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,659,530 459,457 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>
Year Ended August 31,
------------------------
CLASS B SHARES 2000 1999(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 32.13 28.25
Investment Operations:
Investment (loss) (.90)(b) (.16)(b)
Net realized and unrealized gain (loss)
on investments 35.83 4.04
Total from Investment Operations 34.93 3.88
Distributions:
Dividends from net realized gain on investments (.25) -
Net asset value, end of period 66.81 32.13
-------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 109.06 13.73(d)
-------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.93 .81(d)
Ratio of net investment (loss)
to average net assets (1.57) (.61)(d)
Portfolio Turnover Rate 112.24 78.93
-------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,107,998 73,588
(A) FROM APRIL 15, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO AUGUST 31, 1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended August 31,
-----------------------
CLASS C SHARES 2000 1999(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 32.10 28.25
Investment Operations:
Investment (loss) (.90)(b) (.16)(b)
Net realized and unrealized gain (loss)
on investments 35.80 4.01
Total from Investment Operations 34.90 3.85
Distributions:
Dividends from net realized gain on investments (.25) -
Net asset value, end of period 66.75 32.10
--------------------------------------------------------------------------------
TOTAL RETURN (%) (C) 109.06 13.63(d)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.91 .82(d)
Ratio of net investment (loss)
to average net assets (1.55) (.62)(d)
Portfolio Turnover Rate 112.24 78.93
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 602,842 30,207
(A) FROM APRIL 15, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO AUGUST 31, 1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended August 31,
----------------------
CLASS R SHARES 2000 1999(a)
-----------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 32.22 28.25
Investment Operations:
Investment (loss) (.30)(b) (.07)(b)
Net realized and unrealized gain (loss)
on investments 36.02 4.04
Total from Investment Operations 35.72 3.97
Distributions:
Dividends from net realized gain on investments (.25) -
Net asset value, end of period 67.69 32.22
--------------------------------------------------------------------------------
TOTAL RETURN (%) 111.21 14.05(c)
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .86 .44(c)
Ratio of net investment (loss)
to average net assets (.48) (.24)(c)
Portfolio Turnover Rate 112.24 78.93
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 85,803 1,257
(A) FROM APRIL 15, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO AUGUST 31, 1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended August 31,
----------------------
CLASS T SHARES 2000 1999(a)
--------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 32.21 32.21
Investment Operations:
Investment (loss) (.66)(b) --
Net realized and unrealized gain (loss)
on investments 35.96 --
Total from Investment Operations 35.30 --
Dividends from net realized gain on investments (.25) --
Net asset value, end of period 67.26 32.21
--------------------------------------------------------------------------------
TOTAL RETURN (%) 109.93(c) --
--------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.48 --
Ratio of net investment (loss)
to average net assets (1.11) --
Portfolio Turnover Rate 112.24 78.93
--------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 19,049 1
(A) COMMENCED OFFERING SHARES ON AUGUST 31, 1999.
(B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(C) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
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 nine 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. 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 B shares automatically convert to Class A shares
after six years), 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 service 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 charged to that
series' operations; expenses which are applicable to all series are allocated
among them on a pro rata basis.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
(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 $46,858 during the period ended August 31, 2000 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, 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, 2000, the fund reclassed $23,869,283 from
accumulated undistributed investment income-net and $27,457 from accumulated
undistributed net realized gains to paid-in capital. Net assets were not
affected by this reclassification.
The fund has an unused capital loss carryover of approximately $7,796,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to August 31, 2000. This amount
is calculated based on Federal income tax regulations which may differ from
financial reporting in accor
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
dance with generally accepted accounting principles. If not applied, the
carryover expires in fiscal 2008.
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 borrowings. During the period ended August 31, 2000, 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.
DSC retained $1,203,822 during the period ended August 31, 2000 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% of the value of the
average daily net assets of Class B and Class C shares and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
August 31, 2000, Class B, Class C and Class T shares were charged $4,618,754,
$2,500,899 and $22,980, respectively, pursuant to the Distribution Plan, of
which $3,412,123, $1,881,353 and $18,899 for Class B, Class C and Class T
shares, respectively, were paid to DSC.
(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 ser vices. 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 industry professional) in respect of these
services. The distributor determines the amounts to be paid to Service Agents.
During the period ended August 31, 2000, Class A, Class B, Class C and Class T
shares were charged $2,803,374, $1,539,584, $833,633 and $22,980, respectively,
pursuant to the Shareholder Services Plan, of which $1,770,723, $1,140,374,
$627,118 and $18,899 for Class A, Class B, Class C and Class T shares,
respectively, were 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 August 31, 2000, the fund was charged $1,286,364 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, 2000, the fund was
charged $135,505 pursuant to the custody agreement.
(d) 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 who is not an "affiliated person" as defined in the Act receives an
annual fee of $25,000 and an attendance fee of $4,000 for each meeting attended
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 receives an additional 25% of such compensation. Subject to the fund's
Emeritus Program Guidelines,
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Emeritus Board members, if any, receive 50% of the fund's annual retainer fee
and per meeting fee paid at the time the Board member achieves emeritus status.
(e) During the period ended August 31, 2000, the fund incurred total brokerage
commissions of $1,859,024, of which $60,966 was paid to Dreyfus Brokerage
Services, a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
(a) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term
securities, during the period ended August 31, 2000:
Purchases ($) Sales ($)
--------------------------------------------------------------------------------
Long transactions 3,898,404,448 2,228,609,259
Short sale transactions 856,646,725 850,300,799
TOTAL 4,755,051,173 3,078,910,058
The fund is engaged in short-selling which obligates the fund to replace the
security borrowed by purchasing the security at current market value. The fund
would incur a loss if the price of the security increases between the date of
the short sale and the date on which the fund replaces the borrowed security.
The fund would realize a gain if the price of the security declines between
those dates. Until the fund replaces the borrowed security, the fund will
maintain daily, a segregated account with a broker and custodian, of permissible
liquid assets sufficient to cover its short position. At August 31, 2000, there
were no securities sold short outstanding.
(b) At August 31, 2000, accumulated net unrealized appreciation on investments
was $1,394,035,473, consisting of $1,412,811,354 gross unrealized appreciation
and $18,775,881 gross unrealized depreciation.
At August 31, 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).
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 Funds, Inc.) as of August 31,
2000, 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 auditing standards generally accepted
in the United States. 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,
2000 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 Premier Technology Growth Fund at August 31, 2000, 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 accounting principles generally accepted
in the United States.
New York, New York
October 6, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes the fund hereby designates $.0100 per share as a
long-term capital gain distribution of the $.2510 per share paid on December 9,
1999.
The fund also designates 2.60% of the ordinary dividends paid during the fiscal
year ended August 31, 2000 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2001 of the
percentage applicable to the preparation of their 2000 income tax returns.
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
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 255AR008
================================================================================
Dreyfus
Aggressive Growth Fund
ANNUAL REPORT August 31, 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 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
20 Report of Independent Auditors
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
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, 1999 through August 31, 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,
Kevin Sonnett, CFA.
Although large-cap U.S. stocks generally provided attractive returns over the
past year, the reporting period was marked by high levels of volatility and
dramatic shifts in investor sentiment. Between September 1999 and March 2000,
the large-cap market advanced strongly, led by fast-growing technology stocks
that, many investors believed, would benefit most from the "new economy."
Subsequently, however, technology and other growth-oriented stocks corrected
sharply over concerns about rising interest rates and extremely high valuations
In fact, since technology stocks declined in March and April 2000, various
investment styles and market sectors have moved in and out of favor among
investors. As a result, and in contrast to the first half of the reporting
period, investors with broadly diversified stock portfolios generally tended to
do better during the second half of the reporting period than "momentum"
investors who sought to follow market trends.
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 15, 2000
DISCUSSION OF FUND PERFORMANCE
Kevin Sonnett, CFA, Portfolio Manager
How did Dreyfus Aggressive Growth Fund perform relative to its benchmark?
For the 12-month period ended August 31, 2000, Dreyfus Aggressive Growth Fund
produced a total return of 45.66%.(1) This return handily outperformed that
provided by the fund's benchmark, the Standard & Poor's 500 Composite Stock
Price Index ("S&P 500"), which produced a total return of 16.31% for the same
period.(2)
We attribute the fund's strong performance to our "bottom-up" stock selection
strategy. During the first half of the reporting period, the fund's performance
was fueled by our technology holdings, an area in which the fund made some very
good stock selections. While technology stocks moved in and out of favor in the
months that followed, many of these stocks made a strong comeback towards the
end of the period, which benefited the fund. In addition, our investments in the
health care and financial industry groups boosted performance.
What is the fund's investment approach?
The fund seeks capital appreciation by investing in the stocks of growth
companies of any size. Currently, the fund is focusing primarily on midcap
companies. 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
revenue and/or earnings growth rates. The fund's investments in small- and
midcap companies carry additional risks because their earnings are less
predictable, their share prices are more volatile and their securities are less
liquid than those of larger companies.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
During the first half of the reporting period, the predominant factor
influencing performance was the strong gains achieved by technology stocks
relative to the overall stock market. By mid-April, however, a broad-based
sell-off in technology stocks contributed to a decline in many major stock
market indexes. In response, we took advantage of this large-scale selling by
adding to some of our favorite technology positions. At the same time, we
reduced or eliminated our holdings of stocks in which we had less confidence. As
a result, we were able to improve the overall quality of the technology stocks
in the fund. When technology stocks rebounded during July and August, we enjoyed
attractive returns.
Health care stocks also contributed positively to the fund's performance,
particularly those within the biotechnology and specialty health care sectors.
While we added incrementally to this area during the year, which helped the
fund's overall return, our selection of individual stocks drove performance. For
example, the fund benefited from its holdings in Andrex Corporation, a
pharmaceutical company that produces and sells generic versions of currently
marketed drugs. Andrex's stock price rose during the period in response to its
generic version of Prilosec, a treatment for ulcers and reflux disease, and
currently the best-selling drug in the world.
Although financial stocks did not perform very well during the first half of the
reporting period, our limited exposure to the area helped cushion the effects of
declines in this area on overall fund performance. When financial stocks began
to gain strength during the last few months of the period, we added to our
exposure in this sector and were able to achieve attractive gains for the fund.
What is the fund's current strategy?
We have been concentrating our efforts on identifying companies that we believe
have strong growth prospects and talented management teams. Our research has led
us to sell some of the fund's media and broadcasting stocks. We believe that the
slowdown in the year-to-year growth of advertising spending has resulted in
lower valuations and lower price targets for many of these stocks.
As of the end of the reporting period, the fund's assets were allocated among
market sectors as follows: 36% to technology, 16% to health care, 14% to
business services, 10% to telecommunications services, 5% to consumer cyclicals,
4% to energy, 3% to financials, 2% to utilities, .79% to capital goods and .60%
to consumer staples, with the balance in cash and short-term investments.
September 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. RETURN FIGURES PROVIDED REFLECT THE ABSORPTION OF
FUND EXPENSES BY THE DREYFUS CORPORATION PURSUANT TO AN AGREEMENT IN EFFECT
THROUGH AUGUST 31, 2001, AT WHICH TIME IT MAY BE EXTENDED, TERMINATED OR
MODIFIED. HAD THESE EXPENSES NOT BEEN ABSORBED, THE FUND'S RETURNS WOULD HAVE
BEEN LOWER.
(2) SOURCE: LIPPER INC. -- REFLECTS THE REINVESTMENT OF INCOME DIVIDENDS AND,
WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD & POOR'S 500
COMPOSITE STOCK PRICE INDEX ("S&P 500") IS A WIDELY ACCEPTED, UNMANAGED INDEX OF
U.S. STOCK MARKET PERFORMANCE.
The Fund
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
--------------------------------------------------------------------------------
<TABLE>
Average Annual Total Returns AS OF 8/31/00
Inception From
Date 1 Year Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FUND 9/29/95 45.66% 4.85%
</TABLE>
((+)) SOURCE: LIPPER 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 $10,000 INVESTMENT MADE IN THE STANDARD &
POOR'S 500 COMPOSITE STOCK PRICE INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS ARE REINVESTED.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE
FEES AND EXPENSES. THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A
WIDELY ACCEPTED, UNMANAGED INDEX OF OVERALL STOCK MARKET PERFORMANCE WHICH DOES
NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES. FURTHER INFORMATION
RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE,
IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE
IN THIS REPORT.
STATEMENT OF INVESTMENTS
<TABLE>
August 31, 2000
COMMON STOCKS--94.0% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AUTO PARTS & EQUIPMENT--1.7%
Gentex 30,950 (a) 800,831
BIOTECHNOLOGY--3.6%
Genzyme- General Division 9,775 (a) 733,736
Maxygen 4,150 223,063
Myriad Genetics 2,900 (a) 405,638
PE Corp.-Celera Genomics 3,025 (a) 328,023
1,690,460
BUSINESS SERVICES--14.2%
Amdocs 8,675 (a) 619,720
Catalina Marketing 18,450 (a) 787,584
Convergys 14,950 (a) 584,919
Diamond Technology Partners 11,650 (a) 743,416
Digex 5,950 (a) 503,891
Exodus Communications 11,925 (a) 816,117
Scient 11,500 (a) 311,219
True North Communications 11,700 542,588
Wireless Facilities 23,950 1,796,250
6,705,704
COMPUTER NETWORKING--2.5%
Foundry Networks 6,775 630,498
Turnstone Systems 9,050 532,819
1,163,317
COMPUTER SOFTWARE/SERVICES--10.1%
CNET Networks 11,325 (a) 379,387
Interwoven 8,700 835,200
Macromedia 5,250 (a) 362,824
Macrovision 8,225 (a) 876,991
Mercury Interactive 5,650 (a) 690,359
Quest Software 9,150 472,369
Rational Software 8,675 (a) 1,116,364
4,733,494
DISTRIBUTION--.6%
Patterson Dental 11,800 (a) 280,250
ELECTRONICS--.6%
Titan 11,025 (a) 271,491
FINANCIAL SERVICES--3.0%
Metris Cos. 39,875 1,433,008
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE SERVICES--3.6%
Andrx 11,975 (a) 1,041,825
Laboratory Corporation of America Holdings 5,700 (a) 674,381
1,716,206
MANUFACTURING--.8%
Zomax 19,200 (a) 373,200
MEDICAL SUPPLIES & EQUIPMENT--.9%
MiniMed 5,900 (a) 423,602
OIL SERVICES--4.3%
BJ Services 7,675 (a) 514,225
Grant Prideco 15,450 363,075
Nabors Industries 14,475 (a) 688,467
Weatherford International 9,725 (a) 456,467
2,022,234
OTHER--.5%
Power-One 1,475 (a) 233,695
PHARMACEUTICALS--8.4%
Allergan 5,250 383,906
Celgene 16,675 (a) 1,233,950
Forest Laboratories 7,375 (a) 721,828
IVAX 26,825 (a) 928,816
King Pharmaceuticals 7,800 (a) 250,575
Regeneron Pharmaceuticals 12,575 (a) 445,627
3,964,702
PUBLISHING & BROADCASTING--2.6%
Entercom Communications 14,900 (a) 615,556
Pegasus Communications 11,975 (a) 595,756
1,211,312
RETAIL--1.0%
Men's Wearhouse 14,975 (a) 456,738
SEMICONDUCTORS--.8%
TranSwitch 6,300 (a) 379,181
SEMICONDUCTORS & EQUIPMENT--12.0%
ASM Lithography Holding 9,650 (a) 367,906
Atmel 36,250 (a) 725,000
Brooks Automation 13,425 (a) 742,570
Cree 4,975 (a) 685,306
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT (CONTINUED)
Microchip Technology 9,850 (a) 670,416
Novellus Systems 5,950 (a) 366,297
PRI Automation 6,700 (a) 345,887
SanDisk 5,600 (a) 467,600
Semtech 5,500 (a) 651,406
Silicon Storage Technology 19,425 (a) 637,383
5,659,771
TELECOMMUNICATION EQUIPMENT--10.8%
ADTRAN 10,825 (a) 579,814
CIENA 2,500 (a) 554,219
DMC Stratex Networks 37,100 (a) 948,369
Ditech Communications 7,675 (a) 452,825
Extreme Networks 8,150 (a) 758,459
Harris 29,825 896,614
Netro 2,425 200,366
Tekelec 17,375 (a) 686,313
5,076,979
TELECOMMUNICATION SERVICES--10.4%
Crown Castle International 32,450 (a) 1,125,609
Focal Communications 9,625 (a) 297,773
Focus Affiliates (Warrants-expire 12/10/2000) 76,250 (a) --
Inet Technologies 9,250 (a) 373,469
McLeodUSA, Cl. A 33,825 (a) 534,858
Partner Communications, ADR 38,700 367,650
Spectrasite Holdings 41,100 963,281
TeleCorp PCS 7,025 247,631
Time Warner Telecom, Cl. A 11,100 (a) 720,806
Tritel 9,900 258,638
4,889,715
UTILITIES--1.6%
Calpine 4,025 (a) 398,475
Dynegy, Cl. A 7,900 355,500
753,975
TOTAL COMMON STOCKS
(cost $38,680,617) 44,239,865
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--6.7% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY DISCOUNT NOTES;
Federal Home Loan Mortgage Corp.,
6.53%, 9/1/2000
(cost $3,150,000) 3,150,000 3,150,000
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $41,830,617) 100.7% 47,389,865
LIABILITIES, LESS CASH AND RECEIVABLES (.7%) (322,660)
NET ASSETS 100.0% 47,067,205
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 41,830,617 47,389,865
Cash 57,565
Receivable for investment securities sold 1,295,366
Receivable for shares of Common Stock subscribed 13,722
Dividends receivable 1,284
Prepaid expenses 7,502
48,765,304
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 32,887
Payable for investment securities purchased 1,614,686
Payable for shares of Common Stock redeemed 6,180
Accrued expenses 44,346
1,698,099
--------------------------------------------------------------------------------
NET ASSETS ($) 47,067,205
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 94,673,110
Accumulated net realized gain (loss) on investments (53,165,153)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 5,559,248
--------------------------------------------------------------------------------
NET ASSETS ($) 47,067,205
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 2,979,892
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 15.79
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended August 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 173,410
Cash dividends 29,779
TOTAL INCOME 203,189
EXPENSES:
Management fee--Note 3(a) 306,921
Shareholder servicing costs--Note 3(b) 230,621
Auditing fees 29,429
Prospectus and shareholders' reports 25,435
Custodian fees--Note 3(b) 19,465
Registration fees 19,355
Directors' fees and expenses--Note 3(c) 2,124
Legal fees 120
Miscellaneous 1,331
TOTAL EXPENSES 634,801
Less--reduction in management fee due to
undertaking--Note 3(a) (143,727)
NET EXPENSES 491,074
INVESTMENT (LOSS) (287,885)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 11,105,479
Net unrealized appreciation (depreciation) on investments 2,392,398
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 13,497,877
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 13,209,992
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
----------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (287,885) (228,429)
Net realized gain (loss) on investments 11,105,479 (22,247,312)
Net unrealized appreciation (depreciation)
on investments 2,392,398 30,125,896
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 13,209,992 7,650,155
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 35,836,387 7,769,955
Cost of shares redeemed (32,424,372) (15,943,273)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 3,412,015 (8,173,318)
TOTAL INCREASE (DECREASE) IN NET ASSETS 16,622,007 (523,163)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 30,445,198 30,968,361
END OF PERIOD 47,067,205 30,445,198
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 2,422,524 805,062
Shares redeemed (2,252,064) (1,611,151)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 170,460 (806,089)
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS
The following table describes the performance for the fiscal periods indicated.
Total return shows how much your investment in the fund would have increased (or
decreased) during each period, assuming you had reinvested all dividends and
distributions. These figures have been derived from the fund's financial
statements.
<TABLE>
Year Ended August 31,
-------------------------------------------------------------------
2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 10.84 8.57 20.07 22.71 12.50
Investment Operations:
Investment (loss) (.10)(b) (.07)(b) (.16)(b) (.26) (.10)
Net realized and unrealized
gain (loss) on investments 5.05 2.34 (11.34) (2.38) 10.31
Total from Investment Operations 4.95 2.27 (11.50) (2.64) 10.21
Net asset value, end of period 15.79 10.84 8.57 20.07 22.71
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 45.66 26.64 (57.30) (11.63) 81.68(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses to
average net assets 1.20 1.13 1.27 1.34 1.16(c)
Ratio of interest expense
to average net assets -- -- .00(d) .39 .24(c)
Ratio of investment (loss)
to average net assets (.70) (.71) (.95) (1.62) (1.04)(c)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation .35 .58 .29 .09 .17(c)
Portfolio Turnover Rate 215.99 168.00 86.53 76.45 125.17(c)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 47,067 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>
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 nine 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, which are sold to the public without a sales charge. Prior to March 22,
2000, Premier Mutual Fund Services, Inc. was the distributor.
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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
price is available. Securities for which there are no such valuations are valued
at fair value as determined in good faith under the direction of the Board of
Directors. Investments denominated in foreign currencies are translated to U.S.
dollars at the prevailing rates of exchange.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the custody agreement, the fund received net
earnings credits of $3,274 during the period ended August 31, 2000 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, 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 $54,474,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to August 31, 2000. If not
applied, $773,000 of the carryover expires in fiscal 2005, $1,778,000 expires in
fiscal 2006 and $51,923,000 expires in fiscal 2007.
During the period ended August 31, 2000, the fund reclassed $287,885 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, 2000, 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, 1999 through August 31, 2001, to reduce the management fee paid by
the fund, to the extent that the fund's aggregate expenses, exclusive of taxes,
brokerage fees 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 $143,727 during the period ended August
31, 2000.
(b) Under the Shareholder Services Plan, the fund pays the distributor at an
annual rate of .25 of 1% of the value of the fund's average daily net assets for
the provision of certain services. The services provided may include personal
services relating to shareholder accounts, such as answering shareholder
inquiries regarding the fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. The distributor may
make payments to Service Agents (a securities dealer, financial institution or
other industry professionals) in respect of these services. The distributor
determines the
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
amounts to be paid to Service Agents. During the period ended August 31, 2000,
the fund was charged $102,307 pursuant to the Shareholder Services Plan, of
which $57,454 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 August 31, 2000, the fund was charged $84,875 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, 2000, the fund was
charged $19,465 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 who is not an "affiliated person" as defined in the Act receives an
annual fee of $25,000 and an attendance fee of $4,000 for each in person meeting
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
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 achieves emeritus status.
(d) A 1% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. Prior to June 1, 2000, this
fee was chargeable within fifteen 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 August 31, 2000, amounted to
$85,932,684 and $81,438,385, respectively.
At August 31, 2000, accumulated net unrealized appreciation on investments was
$5,559,248, consisting of $8,282,681 gross unrealized appreciation and
$2,723,433 gross unrealized depreciation.
At August 31, 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
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, 2000,
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 auditing standards generally accepted
in the United States. 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,
2000 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, 2000, 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 accounting principles generally accepted
in the United States.
New York, New York
October 6, 2000
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
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 256AR008
================================================================================
Dreyfus
Aggressive Value
Fund
ANNUAL REPORT August 31, 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 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
20 Report of Independent Auditors
21 Important Tax Information
FOR MORE INFORMATION
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Back Cover
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, 1999 through August 31, 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.
While midcap stocks generally provided attractive returns on average over the
past year, the period was marked by high levels of volatility and dramatic
shifts in investor sentiment. Between September 1999 and March 2000, stocks of
all sizes continued to advance, led by fast-growing technology stocks that, many
investors believed, would benefit most from the "new economy." Subsequently,
however, technology stocks corrected sharply over concerns about rising interest
rates and extremely high valuations.
Midcap stocks generally outperformed large-cap and small-cap stocks during the
period, particularly in the growth-oriented segment of the market, which is
dominated by technology companies. In our view, these short-term swings in
investor sentiment highlight once again the importance of broad diversification
and a long-term perspective for most investors.
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 15, 2000
DISCUSSION OF FUND PERFORMANCE
Timothy M. Ghriskey, Portfolio Manager
How did Dreyfus Aggressive Value Fund perform relative to its benchmarks?
For the 12-month period ended August 31, 2000, Dreyfus Aggressive Value Fund
produced a total return of 30.88%.(1) This compares favorably with the return
provided by the Russell 1000 Value Index, which produced a total return of 4.15%
for the same period.(2) In addition, the Russell Midcap Value Index produced a
total return of 6.26% for the same period.(3)
We attribute the fund's good performance to gains achieved during two distinctly
different time periods. During the first half of the reporting period, we
benefited from our large exposure to the technology industry, an area in which
the portfolio also made some very good stock selections. During the second half
of the period, the strongest gains were achieved by our financial holdings
What is the fund's investment approach?
The fund seeks capital appreciation. To pursue this goal, we invest at least 65%
and up to 100% of the fund's total assets in the stocks of value companies of
any size. These investments may include common stocks, preferred stocks and
convertible securities of both U.S. and foreign issuers.
When selecting stocks for the fund, we begin with a proprietary computer model
that identifies suitable candidates. Working with our team of research analysts,
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.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
As "bottom-up" investors, we choose stocks based on their individual merits
rather than according to market or economic trends. However, we remain fully
cognizant of the overall economic environment and we are aware of trends that
may affect our performance.
Predominant factors positively influencing performance during the first half of
the reporting period included strong gains achieved by technology stocks
relative to the overall stock market. During that time, the fund's best returns
within the technology sector stemmed from our holdings in semiconductor and
biotechnology stocks. From mid-March through the end of June, however, a change
in investor sentiment caused many technology stocks to fall out of favor. In
response, we trimmed our technology exposure, choosing to remain cautious until
we saw signs of improving growth prospects and more reasonable valuations. Once
technology stocks made a strong comeback in August, we began increasing our
exposure to that area toward the end of the reporting period.
During the second half of the reporting period, the most influential factor in
the fund's overall performance once technology stocks had fallen out of favor
was our financial holdings. This sector has represented the largest
concentration for the fund and for both benchmarks. The fund's strongest gains
in this area stemmed from finance companies and lending institutions, and most
notably from our holdings in Associates First Capital, AmeriCredit and Fannie
Mae. In addition, we benefited from our investments in large financial
conglomerates, full-service brokerage firms and, toward the end of the reporting
period, insurance companies.
On the other hand, the fund's investments in transportation and consumer
cyclical stocks lagged. Since our exposure to both of these areas was limited,
it had a relatively minor effect on our overall returns.
What is the fund's current strategy?
Because this fund is not limited to stocks within a specific
market-capitalization range, toward the end of the period we began to reduce our
exposure to the largest stocks in favor of midcap or midsize companies. In part,
this move was made in recognition of the value and growth characteristics that
we believe smaller capitalization stocks currently offer.
In addition, we have recently begun to emphasize stocks within the consumer
staples area, including food, beverage and tobacco companies. In some cases, we
have concentrated our investments in those companies that we believe may be
candidates for acquisition. For example, we were able to enhance the fund's
returns by investing in companies like Nabisco Group Holdings and Nabisco
Holdings, which were acquired by RJ Reynolds Tobacco Holdings and Philip Morris
Companies, respectively.
Finally, we continue to favor stocks within the financial sector because we
believe they represent excellent value at this time, especially if interest
rates remain near current levels. As of August 31, 2000, we have allocated
approximately 27% of the fund's assets to this sector; however, portfolio
composition is subject to change at any time.
September 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 INC. -- REFLECTS THE REINVESTMENT OF INCOME 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.
(3) SOURCE: LIPPER INC. -- REFLECTS THE REINVESTMENT OF INCOME DIVIDENDS AND,
WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE RUSSELL MIDCAP VALUE INDEX IS
A WIDELY ACCEPTED, UNMANAGED INDEX OF MEDIUM-CAP STOCK PERFORMANCE AND MEASURES
THE PERFORMANCE OF THOSE RUSSELL MIDCAP COMPANIES WITH LOWER PRICE-TO-BOOK
RATIOS AND LOWER FORECASTED GROWTH VALUES THAN THE RUSSELL MIDCAP INDEX.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Aggressive Value
Fund with the Russell Midcap Value Index and the Russell 1000 Value Index
--------------------------------------------------------------------------------
Average Annual Total Returns AS OF 8/31/00
Inception From
Date 1 Year Inception
--------------------------------------------------------------------------------
FUND 9/29/95 30.88% 26.19%
((+)) SOURCE: LIPPER 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 $10,000 INVESTMENT MADE ON THAT DATE IN
EACH OF THE RUSSELL 1000 VALUE INDEX AND THE RUSSELL MIDCAP VALUE INDEX. ALL
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE REINVESTED.
THIS IS THE FIRST YEAR IN WHICH COMPARATIVE PERFORMANCE IS BEING SHOWN FOR THE
RUSSELL MIDCAP VALUE INDEX, WHICH HAS BEEN SELECTED AS THE NEW SECONDARY
BENCHMARK INDEX FOR COMPARING THE FUND'S PERFORMANCE BASED ON THE FUND'S AND THE
INDEX'S MIDCAP VALUE ORIENTATION.
THE RUSSELL 1000 VALUE INDEX USES COMPANY PRICE-TO-BOOK RATIOS AND LONG-TERM
GROWTH RATES TO CALCULATE A COMPOSITE RANKING WHICH IS USED TO DETERMINE IF A
STOCK IS "GROWTH" OR "VALUE." THE RUSSELL MIDCAP VALUE INDEX IS AN UNMANAGED
INDEX OF THE PERFORMANCE OF THOSE RUSSELL MIDCAP COMPANIES WITH LOWER
PRICE-TO-BOOK RATIOS AND LOWER FORECASTED GROWTH VALUES. THE FUND'S PERFORMANCE
SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE FEES AND EXPENSES. THE
FOREGOING INDICES DO NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
<TABLE>
August 31, 2000
COMMON STOCKS--98.3% Shares Value ($)
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<S> <C> <C>
BANKING--15.1%
Bank of New York 17,100 896,681
Chase Manhattan 26,550 1,483,481
Citigroup 51,867 3,027,717
Cullen/Frost Bankers 24,400 756,400
First Virginia Banks 34,300 1,466,325
FleetBoston Financial 24,200 1,033,037
Morgan (J.P.) 5,200 869,375
National Commerce Bancorporation 18,375 354,867
Webster Financial 23,000 567,094
Wells Fargo 18,200 786,012
Westamerica Bancorporation 19,100 578,969
11,819,958
COMMERCIAL SERVICES--.6%
McGraw-Hill Cos. 7,300 452,144
CONSUMER NON-DURABLES--6.3%
Anheuser-Busch Cos. 8,700 685,669
Cott 55,500 (a) 277,500
Nabisco Group Holdings 30,300 850,294
PepsiCo 15,300 652,162
Philip Morris Cos. 27,000 799,875
Procter & Gamble 14,400 890,100
UST 36,800 795,800
4,951,400
CONSUMER SERVICES--2.7%
Clear Channel Communications 9,300 (a) 673,087
Disney (Walt) 22,600 879,988
Viacom, Cl. B 7,901 (a) 531,836
2,084,911
ELECTRONIC TECHNOLOGY--8.3%
Apple Computer 13,800 (a) 840,938
Boeing 9,900 530,887
Compaq Computer 25,300 861,781
Edwards Lifesciences 32,300 847,875
Hewlett-Packard 9,400 1,135,050
International Business Machines 6,000 792,000
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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ELECTRONIC TECHNOLOGY (CONTINUED)
Litton Industries 13,300 (a) 735,656
Motorola 20,700 746,494
6,490,681
ENERGY MINERALS--6.1%
Anadarko Petroleum 28,135 1,850,439
BP Amoco, ADS 6,400 353,600
Exxon Mobil 21,049 1,718,125
Santa Fe International 20,700 813,769
4,735,933
FINANCE--8.2%
American Express 10,500 620,812
AmeriCredit 47,400 (a) 1,309,425
Associates First Capital, Cl. A 58,500 1,645,313
Goldman Sachs Group 6,500 832,406
Morgan Stanley Dean Witter & Co. 18,600 2,000,663
6,408,619
HEALTH SERVICES--2.7%
AmeriSource Health, Cl. A 29,000 (a) 1,007,750
HCA-Healthcare 10,400 358,800
Manor Care 57,000 (a) 762,375
2,128,925
HEALTH TECHNOLOGY--7.3%
ALZA 10,800 (a) 816,750
Alpharma, Cl. A 14,500 821,063
Barr Laboratories 20,600 (a) 1,462,600
Bristol-Myers Squibb 22,000 1,166,000
Forest Laboratories 8,100 (a) 792,787
Teva Pharmaceutical Industries, ADR 11,100 672,937
5,732,137
INDUSTRIAL SERVICES--1.9%
Cooper Cameron 18,900 (a) 1,470,656
INSURANCE--7.2%
American General 3,200 233,000
American International Group 21,675 1,931,784
Gallagher (Arthur J.) & Co. 20,800 1,019,200
COMMON STOCKS (CONTINUED) Shares Value ($)
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INSURANCE (CONTINUED)
Jefferson-Pilot 11,200 741,300
Lincoln National 16,000 864,000
PartnerRe 19,200 805,200
5,594,484
NON-ENERGY MINERALS--1.0%
Alcoa 22,400 744,800
PROCESS INDUSTRIES--3.2%
Methanex 112,600 (a) 675,600
Olin 67,500 1,113,750
Sealed Air 13,200 (a) 677,325
2,466,675
PRODUCER MANUFACTURING--4.5%
Emerson Electric 21,300 1,409,794
General Electric 10,200 598,612
Tyco International 26,400 1,504,800
3,513,206
RETAIL TRADE--5.4%
Abercrombie & Fitch, Cl. A 33,800 (a) 783,737
Costco Wholesale 20,100 (a) 692,194
Neiman Marcus Group, Cl. A 21,500 (a) 721,594
Venator Group 99,800 (a) 1,397,200
Williams-Sonoma 17,000 (a) 610,938
4,205,663
TECHNOLOGY SERVICES--7.4%
LifePoint Hospitals 42,400 (a) 1,277,300
SignalSoft 59,700 2,958,881
Triad Hospitals 52,400 (a) 1,513,050
5,749,231
TRANSPORTATION--.5%
Expeditors International of Washington 7,400 362,600
UTILITIES--9.9%
AES 6,600 (a) 420,750
AT&T 25,521 803,912
AT&T--Liberty Media, Cl. A 51,800 (a) 1,107,225
Coastal 10,900 750,737
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
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UTILITIES (CONTINUED)
Duke Energy 10,400 778,050
Dynegy, Cl. A 17,800 801,000
Enron 8,600 729,925
Qwest Communications International 12,227 (a) 631,219
SBC Communications 22,401 935,242
Sprint (PCS Group) 5,200 (a) 260,975
Verizon Communications 12,300 536,588
7,755,623
TOTAL COMMON STOCKS
(cost $61,661,297) 76,667,646
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Principal
SHORT-TERM INVESTMENTS--.1% Amount ($) Value ($)
-----------------------------------------------------------------------------------------------
U.S. TREASURY BILLS;
5.88%, 10/12/2000
(cost $65,557) 66,000 65,540
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $61,726,854) 98.4% 76,733,186
CASH AND RECEIVABLES (NET) 1.6% 1,238,194
NET ASSETS 100.0% 77,971,380
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
Cost Value
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ASSETS ($):
Investments in securities--See Statement of Investments 61,726,854 76,733,186
Cash 203,362
Receivable for investment securities sold 1,945,071
Dividends receivable 89,449
Receivable for shares of Common Stock subscribed 60,040
Prepaid expenses 12,905
79,044,013
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LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 71,717
Payable for investment securities purchased 937,628
Accrued expenses 63,288
1,072,633
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NET ASSETS ($) 77,971,380
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COMPOSITION OF NET ASSETS ($):
Paid-in capital 53,092,710
Accumulated undistributed investment income--net 1,126,537
Accumulated net realized gain (loss) on investments 8,745,801
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4(b) 15,006,332
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NET ASSETS ($) 77,971,380
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SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 2,706,642
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($)
28.81
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended August 31, 2000
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INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $3,931 foreign taxes withheld at source) 1,934,744
Interest 73,679
TOTAL INCOME 2,008,423
EXPENSES:
Management fee--Note 3(a) 492,537
Shareholder servicing costs--Note 3(b) 298,787
Professional fees 26,391
Prospectus and shareholders' reports 25,580
Registration fees 19,927
Custodian fees--Note 3(b) 9,800
Interest expense--Note 2 2,335
Directors' fees and expenses--Note 3(c) 1,297
Miscellaneous 2,305
TOTAL EXPENSES 878,959
INVESTMENT INCOME--NET 1,129,464
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments:
Long transactions 9,205,716
Short sale transactions 60,462
NET REALIZED GAIN (LOSS) 9,266,178
Net unrealized appreciation (depreciation) on investments 7,684,636
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 16,950,814
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 18,080,278
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
-----------------------------------
2000 1999
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OPERATIONS ($):
Investment income--net 1,129,464 202,674
Net realized gain (loss) on investments 9,266,178 6,127,424
Net unrealized appreciation
(depreciation) on investments 7,684,636 17,405,513
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 18,080,278 23,735,611
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DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net (200,027) (187,969)
Net realized gain on investments (6,627,196) (4,934,176)
TOTAL DIVIDENDS (6,827,223) (5,122,145)
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CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 19,931,331 27,456,779
Dividends reinvested 6,588,816 4,906,800
Cost of shares redeemed (32,045,777) (70,641,639)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS (5,525,630) (38,278,060)
TOTAL INCREASE (DECREASE) IN NET ASSETS 5,727,425 (19,664,594)
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NET ASSETS ($):
Beginning of Period 72,243,955 91,908,549
END OF PERIOD 77,971,380 72,243,955
Undistributed investment income--net 1,126,537 197,100
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 777,490 1,151,489
Shares issued for dividends reinvested 289,364 206,689
Shares redeemed (1,306,987) (2,905,607)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (240,133) (1,547,429)
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>
Year Ended August 31,
--------------------------------------------------------------------
2000 1999 1998 1997 1996(a)
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<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 24.52 20.45 26.40 20.08 12.50
Investment Operations:
Investment income--net .43(b) .05(b) .05 .02 .09
Net realized and unrealized
gain (loss) on investments 6.46 5.11 (4.27) 8.22 7.53
Total from Investment Operations 6.89 5.16 (4.22) 8.24 7.62
Distributions:
Dividends from investment income--net (.08) (.04) (.03) (.05) (.04)
Dividends from net realized
gain on investments (2.52) (1.05) (1.70) (1.87) --
Total Distributions (2.60) (1.09) (1.73) (1.92) (.04)
Net asset value, end of period 28.81 24.52 20.45 26.40 20.08
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TOTAL RETURN (%) 30.88 25.41 (17.02) 43.57 61.00(c)
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RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.34 1.29 1.27 1.24 1.17(c)
Ratio of interest expense
to average net assets .00(d) .01 .01 -- --
Ratio of net investment income
to average net assets 1.72 .22 .16 .18 .55(c)
Decrease reflected in above
expense ratios due to undertakings
by The Dreyfus Corporation -- -- -- .14 .63(c)
Portfolio Turnover Rate 235.16 225.12 170.46 120.71 260.98(c)
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Net Assets, end of period ($ x 1,000) 77,971 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.
(D) AMOUNT REPRESENTS LESS THAN .01%.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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 nine 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 which are sold to the public without a sales charge. Prior to March 22,
2000, Premier Mutual Fund Services, Inc. was the distributor.
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 Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 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 $1,798 during the period ended August 31, 2000 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.
NOTE 2--Bank Lines 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. Prior to April 17, 2000, the fund also was able to borrow up to
$5 million for leveraging purposes under a short-term unsecured line of credit.
The average daily amount of borrowings outstanding under both arrangements
during the period ended August 31, 2000 was approximately $39,100, with a
related weighted average annualized interest rate of 5.96%.
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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 2000,
the fund was charged $164,179 pursuant to the Shareholder Services Plan, of
which $82,638 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 August 31, 2000, the fund was charged $78,715 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, 2000, the fund was
charged $9,800 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 who is not an "affiliated person" as defined in the Act receives an
annual fee of $25,000 and an attendance fee of $4,000 for each meeting attended
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
Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the
fund's annual retainer fee and per meeting fee paid at the time the Board member
achieves emeritus status.
(d) A 1% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through use of the fund's exchange privilege. Prior to June 1, 2000, this fee
was chargeable within fifteen days following the date of issuance of such
shares.
(e) During the period ended August 31, 2000, the fund incurred total brokerage
commissions of $316,785, of which $22,636 was paid to Dreyfus Brokerage
Services, a wholly-owned subsidiary of Mellon Financial Corporation.
NOTE 4--Securities Transactions:
(a) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term
securities, during the period ended August 31, 2000:
PURCHASES ($) SALES ($)
--------------------------------------------------------------------------------
Long transactions 152,668,141 161,095,461
Short sale transactions 528,375 588,837
TOTAL 153,196,516 161,684,298
The fund is engaged in short-selling which obligates the fund to replace the
security borrowed by purchasing the security at current market value. The fund
would incur a loss if the price of the security increases between the date of
the short sale and the date on which the fund replaces the borrowed security.
The fund would realize a gain if the price of the security declines between
those dates. Until the fund replaces the borrowed security, the fund will
maintain daily, a segregated account with a broker and custodian, of permissible
liquid assets sufficient to cover its short position. At August 31, 2000, there
were no securities sold short outstanding.
(b) At August 31, 2000, accumulated net unrealized appreciation on investments
was $15,006,332, consisting of $15,502,227 gross unrealized appreciation and
$495,895 gross unrealized depreciation.
At August 31, 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
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, 2000,
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 auditing standards generally accepted
in the United States. 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,
2000 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, 2000, 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 accounting principles generally accepted
in the United States.
New York, New York
October 6, 2000
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes the fund hereby designates $2.253 per share as a
long-term capital gain distribution of the $2.594 per share paid on November 30,
1999.
The fund also designates 99.79% of the ordinary dividends paid during the fiscal
year ended August 31, 2000 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2001 of the
percentage applicable to the preparation of their 2000 income tax returns.
The Fund
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
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 257AR008
================================================================================
Dreyfus
Midcap Value Fund
ANNUAL REPORT August 31, 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 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
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, 1999 through August 31, 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.
While midcap stocks generally provided attractive returns on average over the
past year, the period was marked by high levels of volatility and dramatic
shifts in investor sentiment. Between September 1999 and March 2000, stocks of
all sizes continued to advance, led by fast-growing technology stocks that, many
investors believed, would benefit most from the "new economy." Subsequently,
however, technology stocks corrected sharply over concerns about rising interest
rates and extremely high valuations.
Midcap stocks generally outperformed large-cap and small-cap stocks during the
period, particularly in the growth-oriented segment of the market, which is
dominated by technology companies. In our view, these short-term swings in
investor sentiment highlight once again the importance of broad diversification
and a long-term perspective for most investors.
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 15, 2000
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, 2000, Dreyfus Midcap Value Fund
produced a total return of 37.60%.(1) This compares favorably with the return
provided by the fund's benchmark, the Russell Midcap Value Index, which produced
a total return of 6.26% for the same period.(2)
We attribute the fund's strong performance to our technology, financial and
energy holdings, three areas in which our security selection strategy was
particularly effective.
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 midcap companies that appear to us to be inexpensive relative to
certain financial measurements of their intrinsic worth or business prospects.
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
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
As "bottom-up" investors, we choose stocks based on their individual merits
rather than according to market or economic trends. However, we remain fully
cognizant of the overall economic environment, and we are aware of trends that
may affect our performance. That said, the three areas that contributed most to
the fund's positive performance were technology, financial and energy.
Contrary to popular belief, not every technology stock is considered a growth
stock. By making very careful stock selections, we were able to find a number of
inexpensively priced, value-oriented stocks within the technology sector. These
stocks typically also exhibited strong growth characteristics. As a result, we
were able to participate to some degree in the positive returns provided by the
technology sector early in the period. Of course, the technology sector has been
among the most volatile sectors of the market and there is no assurance that
market conditions will continue to be favorable to technology stocks.
Within the financial area, returns were driven primarily by the fund's insurance
company holdings, an industry that had been depressed for several years but made
a notable turnaround over the past six months. Once the underlying market began
to improve, it created a much healthier business environment for many of these
companies, and stock prices rose. We had anticipated this change and had been
steadily increasing our exposure to this area. While we have since taken some
profits, we still maintain a healthy weighting of financial stocks in the fund.
Within the energy group, the fund benefited from the rising price of oil. When
oil prices fell to $10 a barrel at the end of last summer, we believed that
those prices were unsustainably low, and as a result, presented excellent
investment opportunities. After oil prices began to climb, stock prices
followed, boosting the fund's overall returns.
On the other hand, the fund's performance was hindered by its holdings in
chemical and retailing companies. Rising oil prices hurt chemical stocks because
oil is an important raw material in the production of chemicals. As for
retailers, we believe unseasonable weather conditions and rising interest rates
may have slowed shopping patterns, which caused a drop in retail stock prices.
However, we took advantage of lower stock prices by adding more high quality
retail names to the portfolio.
What is the fund's current strategy?
In light of what appears to be a slower economic environment, we have begun to
increase our exposure to areas that are less economically sensitive, such as
health care. We believe that in an environment where the outlook for earnings
growth may be less optimistic than it was six months ago, health care may
represent a solid investment opportunity.
In addition, we continue to favor selected technology stocks, especially those
that, in our view, are moderately priced and possess positive earnings growth
prospects. We also remain confident regarding energy stocks. With oil and
natural gas inventories at lows going into the winter season, we believe the
fund may be poised to benefit from its energy holdings.
We are very pleased that we have continued to find numerous investment
opportunities among the midcap companies, and we remain optimistic about this
sector going forward.
September 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 INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE RUSSELL MIDCAP VALUE INDEX IS A
WIDELY ACCEPTED, UNMANAGED INDEX OF MEDIUM-CAP STOCK MARKET PERFORMANCE AND
MEASURES THE PERFORMANCE OF THOSE RUSSELL MIDCAP COMPANIES WITH LOWER
PRICE-TO-BOOK RATIOS AND LOWER FORECASTED GROWTH VALUES.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Midcap Value Fund
and the Russell Midcap Value Index
--------------------------------------------------------------------------------
<TABLE>
Average Annual Total Returns AS OF 8/31/00
Inception From
Date 1 Year Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FUND 9/29/95 37.60% 25.56%
</TABLE>
((+)) SOURCE: LIPPER 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 $10,000 INVESTMENT MADE IN THE RUSSELL MIDCAP
VALUE INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE
REINVESTED.
THE RUSSELL MIDCAP VALUE INDEX IS AN UNMANAGED INDEX OF THE PERFORMANCE OF THOSE
RUSSELL MIDCAP COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER FORECASTED
GROWTH VALUES. THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT
ALL APPLICABLE FEES AND EXPENSES. THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES,
FEES AND OTHER EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE,
INCLUDING EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL
HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
<TABLE>
August 31, 2000
COMMON STOCKS--100.2% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BASIC INDUSTRIES--8.2%
AK Steel Holding 126,318 1,373,708
Abitibi Price 148,600 1,662,463
Agrium 45,300 441,675
Eastman Chemical 34,500 1,487,812
Geon 52,600 917,212
IMC Global 256,000 3,760,000
Jefferson Smurfit Group, ADR 96,600 1,980,300
Rohm & Haas 60,100 1,739,144
Smurfit-Stone Container 159,500 (a) 2,093,438
15,455,752
CAPITAL GOODS--8.3%
Commscope 34,600 (a) 862,838
Deere & Co. 100,300 3,303,631
Eaton 18,600 1,234,575
Ingersoll-Rand 57,600 2,624,400
NCR 96,300 (a) 3,888,112
Nucor 14,400 529,200
Parker-Hannifin 34,700 1,207,994
Thermo Electron 86,000 (a) 1,999,500
15,650,250
COMPUTER SERVICES--1.1%
Keane 116,000 (a) 2,008,250
CONSTRUCTION & HOUSING--1.5%
Fluor 92,600 2,772,212
CONSUMER DURABLES--.9%
Black & Decker 30,000 1,201,875
Midway Games 61,100 (a) 526,988
1,728,863
CONSUMER NON-DURABLES--3.6%
ConAgra 113,100 2,071,144
Dial 35,300 361,825
Jones Apparel Group 96,400 (a) 2,361,800
Tommy Hilfiger 181,400 (a) 1,972,725
6,767,494
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER SERVICES--12.7%
Abercrombie & Fitch, Cl. A 52,300 (a) 1,212,706
Albertson's 63,300 1,360,950
Burlington Coat Factory 18,500 225,469
Circuit City Stores 122,300 3,172,156
Consolidated Stores 86,800 (a) 1,182,650
Emmis Communications, Cl. A 59,600 (a) 1,955,625
Federated Department Stores 54,500 (a) 1,505,562
OfficeMax 122,700 (a) 636,506
SUPERVALU 108,800 1,625,200
ShopKo Stores 46,600 (a) 532,988
Six Flags 121,400 (a) 1,813,412
Staples 104,500 (a) 1,606,688
TJX Cos. 156,500 2,944,156
Tricon Global Restaurants 61,800 (a) 1,799,925
Valassis Communications 83,900 (a) 2,422,613
23,996,606
ENERGY--13.6%
Anadarko Petroleum 63,397 4,169,621
Burlington Resources 37,500 1,474,219
Devon Energy 80,306 4,702,920
EOG Resources 40,200 1,537,650
Noble Affiliates 97,300 3,770,375
Ocean Energy 70,900 (a) 1,076,794
Petroleum Geo-Services, ADR 126,800 (a) 2,393,350
Tidewater 118,700 4,792,513
Varco International 90,600 (a) 1,828,988
25,746,430
FINANCIAL SERVICES--12.1%
Ace 77,000 2,704,625
Aetna 42,500 2,377,344
Block (H&R) 63,500 2,278,063
Everest Re Group 82,800 3,332,700
Franklin Resources 44,000 1,672,000
Heller Financial 29,800 741,275
Knight Trading Group 74,600 (a) 2,340,575
Nationwide Financial Services, Cl. A 8,400 334,950
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES (CONTINUED)
Progressive 23,600 1,789,175
Stilwell Financial 51,400 (a) 2,486,475
XL Capital, Cl. A 40,800 2,812,650
22,869,832
FOREST PRODUCTS AND PAPER--1.7%
Fort James 101,200 3,200,450
HEALTH CARE--7.5%
Bausch & Lomb 85,900 3,070,925
Boston Scientific 228,600 (a) 4,329,112
HEALTHSOUTH 276,100 (a) 1,691,112
IMS Health 113,900 2,149,862
McKesson HBOC 116,700 2,910,206
14,151,217
MERCHANDISING--.7%
Venator Group 101,900 (a) 1,426,600
RECREATION--.9%
Hasbro 50,400 620,550
Polaroid 62,700 1,065,900
1,686,450
TECHNOLOGY--24.6%
Adaptec 86,200 (a) 2,111,900
Advanced Micro Devices 81,400 (a) 3,062,675
Arrow Electronics 63,600 (a) 2,313,450
Avnet 59,200 3,544,600
BMC Software 209,100 (a) 5,645,700
Electronics For Imaging 53,300 (a) 1,385,800
Informix 595,850 (a) 3,649,581
Ingram Micro, Cl. A 186,500 (a) 2,797,500
J D Edwards 28,400 (a) 704,675
Lam Research 39,000 (a) 1,174,875
Legato Systems 37,900 (a) 459,537
MarchFirst 91,300 (a) 1,768,937
Maxtor 273,400 (a) 2,144,481
Parametric Technology 269,600 (a) 3,605,900
Quantum--DLT & Storage Systems 337,500 (a) 4,577,344
Quantum--Hard Disk Drive 203,900 (a) 1,988,025
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
Synopsys 70,000 (a) 2,594,375
Tech Data 900 (a) 46,463
Unisys 235,900 (a) 3,066,700
46,642,518
TRANSPORTATION--1.9%
AMR 50,100 (a) 1,643,906
Delta Air Lines 23,600 1,168,200
Yellow 49,100 (a) 748,775
3,560,881
UTILITIES--.9%
Edison International 84,900 1,756,369
TOTAL COMMON STOCKS
(cost $171,510,218) 189,420,174
------------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--3.1% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
5.92%, 9/14/2000 20,000 19,955
6.27%, 9/21/2000 3,227,000 3,214,899
5.96%, 9/28/2000 206,000 205,096
5.97%, 10/12/2000 1,864,000 1,851,008
6.08%, 11/9/2000 574,000 567,542
TOTAL SHORT-TERM INVESTMENTS
(cost $5,859,437) 5,858,500
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $177,369,655) 103.3% 195,278,674
LIABILITIES, LESS CASH AND RECEIVABLES (3.3%) (6,234,322)
NET ASSETS 100.0% 189,044,352
(A) NON-INCOME PRODUCING.
SEE NOTES TO THE FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 177,369,655 195,278,674
Cash 514,136
Receivable for investment securities sold 4,424,678
Receivable for shares of Common Stock subscribed 421,726
Dividends receivable 90,842
Prepaid expenses 16,306
200,746,362
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 156,776
Payable for investment securities purchased 11,442,238
Payable for shares of Common Stock redeemed 48,060
Accrued expenses 54,936
11,702,010
--------------------------------------------------------------------------------
NET ASSETS ($) 189,044,352
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 157,897,127
Accumulated net realized gain (loss) on investments 13,238,206
Accumulated net unrealized appreciation (depreciation)
on investments --Note 4 17,909,019
--------------------------------------------------------------------------------
NET ASSETS ($) 189,044,352
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 6,725,441
NET ASSET VALUE, offering and redemption price per share--Note 3(d) ($) 28.11
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended August 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $1,966 foreign taxes withheld at source) 886,189
Interest 97,184
TOTAL INCOME 983,373
EXPENSES:
Management fee--Note 3(a) 792,077
Shareholder servicing costs--Note 3(b) 403,233
Interest expense--Note 2 46,066
Custodian fees--Note 3(b) 42,551
Registration fees 34,476
Professional fees 32,031
Prospectus and shareholders' reports 30,974
Directors' fees and expenses--Note 3(c) 1,690
Miscellaneous 1,661
TOTAL EXPENSES 1,384,759
INVESTMENT (LOSS) (401,386)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 19,547,442
Net unrealized appreciation (depreciation) on investments 15,980,664
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 35,528,106
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 35,126,720
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
-----------------------------------
2000 1999
-------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (401,386) (819,834)
Net realized gain (loss) on investments 19,547,442 785,434
Net unrealized appreciation (depreciation)
on investments 15,980,664 37,439,588
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 35,126,720 37,405,188
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
NET REALIZED GAIN ON INVESTMENTS (4,867,590) (9,344,038)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 190,777,681 72,861,853
Dividends reinvested 4,649,363 9,051,684
Cost of shares redeemed (134,809,876) (92,106,895)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 60,617,168 (10,193,358)
TOTAL INCREASE (DECREASE) IN NET ASSETS 90,876,298 17,867,792
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 98,168,054 80,300,262
END OF PERIOD 189,044,352 98,168,054
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 7,858,196 3,574,897
Shares issued for dividends reinvested 233,168 529,959
Shares redeemed (5,889,376) (4,798,775)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 2,201,988 (693,919)
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>
Year Ended August 31,
-------------------------------------------------------------------
2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 21.70 15.39 22.23 15.80 12.50
Investment Operations:
Investment income (loss)-net (.09)(b) (.17)(b) (.06)(b) (.01) .08
Net realized and unrealized
gain (loss) on investments 7.74 8.26 (5.73) 8.23 3.28
Total from Investment Operations 7.65 8.09 (5.79) 8.22 3.36
Distributions:
Dividends from investment income--net -- -- -- (.04) (.04)
Dividends from net realized
gain on investments (1.24) (1.78) (1.05) (1.75) (.02)
Total Distributions (1.24) (1.78) (1.05) (1.79) (.06)
Net asset value, end of period 28.11 21.70 15.39 22.23 15.80
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 37.60 55.71 (27.32) 55.45 26.88(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of operating expenses
to average net assets 1.27 1.34 1.29 1.25 1.18(c)
Ratio of interest expense
to average net assets .04 .06 .01 .01 .01(c)
Ratio of net investment income (loss)
to average net assets (.38) (.89) (.25) (.14) .56(c)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- -- -- .26 1.13(c)
Portfolio Turnover Rate 242.27 257.23 168.72 154.92 266.80(c
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 189,044 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>
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 nine 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"), which is a wholly-owned
subsidiary of Mellon Financial Corporation. Effective March 22, 2000, Dreyfus
Service Corporation (" DSC"), a wholly-owned subsidiary of Dreyfus, became the
distributor of the fund's shares, which are sold to the public without a sales
charge. Prior to March 22, 2000, Premier Mutual Fund Services, Inc. was the
distributor.
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 Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the Board of Directors. Investments denominated in foreign currencies are
translated to U.S. dollars at the prevailing rates of exchange.
(b) Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, amortization of discount on investments, is recognized on the
accrual basis. Under the terms of the 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, 2000, the fund reclassed $401,386 between
accumulated undistributed investment income-net and paid- in capital. 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.
The average daily amount of borrowings outstanding under both arrangements
during the period ended August 31, 2000 was approximately $732,300 with a
related weighted average annualized interest rate of 6.29%.
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, 2000, the fund was charged $264,026 pursuant to the Shareholder
Services Plan, of which $155,887 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 August 31, 2000, the fund was charged $96,536 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, 2000, the fund was
charged $42,551 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 who is not an "affiliated person"
The Fund
as defined in the Act receives an annual fee of $25,000 and an attendance fee of
$4,000 for each in person meeting 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 fund 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 Emeritus Program Guidelines, Emeritus Board members, if
any, receive 50% of the fund's annual retainer fee and per meeting fee paid at
the time the Board member achieves emeritus status.
(d) A 1% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. Prior to June 1, 2000, this
fee was chargeable within fifteen 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 August 31, 2000, amounted to
$315,809,687 and $260,406,258, respectively.
At August 31, 2000, accumulated net unrealized appreciation on investments was
$17,909,019, consisting of $23,726,577, gross unrealized appreciation and
$5,817,558 gross unrealized depreciation.
At August 31, 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).
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, 2000, 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 auditing standards generally accepted
in the United States. 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,
2000 and confirmation of securities not held by the custodian by correspondence
with brokers and 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, 2000, 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 accounting principles generally accepted in the United
States.
New York, New York
October 6, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
The fund designates 9.99% of the ordinary dividends paid during the fiscal year
ended August 31, 2000 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2001 of the
percentage applicable to the preparation of their 2000 income tax returns.
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
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 258AR008
================================================================================
Dreyfus
Emerging Leaders Fund
ANNUAL REPORT August 31, 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 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
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, 1999 through August 31, 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 managers,
Paul Kandel and Hilary Woods.
While small-cap stocks generally provided attractive returns over the past year,
the period was marked by high levels of volatility and dramatic shifts in
investor sentiment. Between September 1999 and March 2000, both small- and
large-cap stocks continued to advance, led by fast-growing technology stocks
that, many investors believed, would benefit most from the "new economy."
Subsequently, however, technology stocks of all sizes corrected sharply over
concerns about rising interest rates and extremely high valuations.
Primarily because of the precipitous drop in technology stock prices,
small-capitalization stocks generally outperformed large-cap stocks during the
period, particularly in the value-oriented segment of the market, a reversal of
the trends established over the past several years. In our view, these
short-term swings in investor sentiment highlight once again the importance of
broad diversification and a long-term perspective for most investors.
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 15, 2000
DISCUSSION OF FUND PERFORMANCE
Paul Kandel and Hilary Woods, Portfolio Managers
How did Dreyfus Emerging Leaders Fund perform relative to its benchmark?
For the 12-month period ended August 31, 2000, Dreyfus Emerging Leaders Fund
produced a total return of 34.07% .(1) This exceeded the performance of the
fund's benchmark, the Russell 2000 Index, which produced a 27.15% total return
for the same period.(2)
We attribute the fund's good performance to a strong rebound in small-cap stocks
during the first half of the reporting period, especially in industry groups
that the fund emphasized. In addition, we succeeded in identifying attractive
individual investment opportunities among a diverse range of market sectors,
industries and investment styles.
What is the fund's investment approach?
The fund invests primarily in a diversified portfolio of 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 companies 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 growth-oriented stocks (those of companies with
earnings that are expected to grow faster than the overall market) ,
value-oriented stocks (those that appear under-priced according to a variety 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
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
From the beginning of the period until early March 2000, the fund's performance
generally benefited from the U.S. economy's rapid growth. Small-cap stocks --
which, in our opinion, had been undervalued relative to large-company stocks --
provided attractive gains. During the first six months of the period, the
Russell 2000 Index of small-cap stocks outperformed the Standard & Poor's 500
Composite Stock Price Index, a broader measure of overall market performance, by
a factor of nearly 9 to 1.
The fund's disciplined focus on small-cap investing positioned us to benefit
from these conditions. During the first half of the period, we maintained an
above-average exposure to the technology sector, investing primarily in
telecommunications-related utilities and semiconductor companies. We largely
avoided the interest-rate-sensitive financial services sector, as well as
industry groups most adversely affected by rising oil prices, including
automobiles, airlines and ground freight carriers. We also invested in some of
the market' s best-performing utility stocks, achieving strong gains from an
industry group that, on average, underperformed the market.
Of course, not every decision we made proved favorable during the first half of
the reporting period. Despite improving fundamentals and bargain basement
valuations, investments in the materials and processing industry group
underperformed the market because of insufficient investor interest. Several of
our holdings in the consumer sector lost value for a variety of company-specific
reasons, and the market severely punished some stocks in our portfolio that
failed to deliver expected earnings.
When the market climate shifted dramatically in March 2000, rising interest
rates began to undermine investor confidence. Technology stocks, which had
reached unprecedented valuations, fell sharply in late March and April. Although
interest rates appeared to plateau in the summer, most stock indices, including
the fund's benchmark, stood substantially lower on August 31 than they had in
early March.
Nevertheless, we succeeded in preserving most of the fund's earlier gains
throughout the second half of the period. Several factors enabled us to achieve
these results. Our disciplined investment strategy limited our exposure to the
highly speculative technology stocks that suffered the greatest losses in March
and April. We also added to the fund's holdings in health care, energy and
financial services, sectors that performed relatively well during the second
half of the period.
What is the fund's current strategy?
As of the end of the reporting period, the fund remained more heavily exposed
than our benchmark to transportation, health care and technology stocks.
Transportation companies are an industry group in which our stock selections
performed better than most. We maintained below-average positions in the
relatively weak-performing utilities, consumer products, materials and
processing and producer durables industry groups.
Although small-cap stocks outperformed large-cap stocks during the period, we
believe many small companies are still more attractively valued than their
larger counterparts. We continue to find attractive investment opportunities
among fast-growing leaders in the small-cap area.
September 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 INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE
APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE RUSSELL 2000 INDEX IS AN UNMANAGED
INDEX OF SMALL-CAP STOCK MARKET PERFORMANCE AND IS COMPOSED OF THE 2,000
SMALLEST COMPANIES IN THE RUSSELL 3000 INDEX. THE RUSSELL 3000 INDEX IS COMPOSED
OF THE 3,000 LARGEST U.S. COMPANIES BASED ON TOTAL MARKET CAPITALIZATION.
The Fund
FUND PERFORMANCE
Comparison of change in value of $10,000 investment in Dreyfus Emerging Leaders
Fund and the Russell 2000 Index
--------------------------------------------------------------------------------
<TABLE>
Average Annual Total Returns AS OF 8/31/00
Inception From
Date 1 Year Inception
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FUND 9/29/95 34.07% 31.09%
</TABLE>
((+)) SOURCE: LIPPER 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 $10,000 INVESTMENT MADE IN THE RUSSELL
2000 INDEX ON THAT DATE. ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS ARE
REINVESTED.
THE FUND'S PERFORMANCE SHOWN IN THE LINE GRAPH TAKES INTO ACCOUNT ALL APPLICABLE
FEES AND EXPENSES. THE RUSSELL 2000 INDEX IS AN UNMANAGED INDEX AND IS COMPOSED
OF THE 2,000 SMALLEST COMPANIES IN THE RUSSELL 3000 INDEX. THE RUSSELL 3000
INDEX IS COMPOSED OF 3,000 OF THE LARGEST U.S. COMPANIES BY MARKET
CAPITALIZATION. THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION
OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
STATEMENT OF INVESTMENTS
<TABLE>
August 31, 2000
COMMON STOCKS--95.1% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL SERVICES-3.4%
Lamar Advertising 285,000 (a) 13,234,688
True North Communications 400,000 18,550,000
Valassis Communications 450,000 (a) 12,993,750
44,778,438
CONSUMER NON-DURABLES-3.1%
Church & Dwight 870,000 15,605,625
Dial 1,000,000 10,250,000
Whitman 1,100,000 14,506,250
40,361,875
CONSUMER SERVICES-4.6%
Emmis Communications, Cl. A 455,000 (a) 14,929,688
Entercom Communications 300,000 (a) 12,393,750
Harte-Hanks 575,000 14,446,875
Mandalay Resort Group 705,000 (a) 19,607,812
61,378,125
ELECTRONIC TECHNOLOGY-22.1%
Advanced Energy Industries 310,000 (a) 17,708,750
Aeroflex 450,000 (a) 16,537,500
Alpha Industries 475,000 (a) 23,957,812
C-COR.net 535,000 (a) 10,432,500
C-Cube Microsystems 840,000 (a) 19,530,000
Integrated Silicon Solution 750,000 (a) 22,031,250
L-3 Communications Holdings 305,000 (a) 18,033,125
Lattice Semiconductor 280,000 (a) 21,805,000
Newport News Shipbuilding 475,000 20,187,500
PLX Technology 600,000 (a) 18,787,500
Plexus 207,000 (a) 32,033,250
QLogic 600,000 (a) 13,650,000
Tollgrade Communications 212,500 (a) 23,627,344
TranSwitch 560,000 (a) 33,705,000
292,026,531
FINANCE-15.4%
AmeriCredit 862,500 23,826,562
Annuity and Life Re Holdings 725,000 19,031,250
Bank United, Cl. A 525,000 23,625,000
City National 475,000 18,554,688
Commerce Bancorp 375,000 19,382,813
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCE (CONTINUED)
Everest Re Group 550,000 22,137,500
First Midwest Bancorp 750,000 19,359,375
First Virginia Banks 435,000 18,596,250
Protective Life 690,000 19,837,500
RenaissanceRe Holdings 400,000 19,150,000
203,500,938
HEALTH SERVICES-5.5%
AmeriSource Health, Cl. A 545,000 (a) 18,938,750
Lincare Holdings 550,000 (a) 14,025,000
Manor Care 1,500,000 (a) 20,062,500
Oxford Health Plans 650,000 (a) 19,825,000
72,851,250
HEALTH TECHNOLOGY-9.6%
Andrx 370,000 (a) 32,190,000
Barr Laboratories 390,000 (a) 27,690,000
CV Therapeutics 307,500 (a) 23,062,500
Genzyme Transgenics 690,000 (a) 25,659,375
Jones Pharma 525,000 18,768,750
127,370,625
INDUSTRIAL SERVICES-4.2%
Grant Prideco 755,000 (a) 17,742,500
Marine Drilling 700,000 (a) 19,031,250
Petroleum Geo-Services, ADR 1,000,000 (a) 18,875,000
55,648,750
NON-ENERGY MINERALS-.8%
Homestake Mining 1,970,000 10,958,125
PROCESS INDUSTRIES-4.9%
Abitibi-Consolidated 1,475,000 16,501,562
Crown Cork & Seal 700,000 9,056,250
Great Lakes Chemical 500,000 16,875,000
Pactiv 2,055,500 (a) 22,610,500
65,043,312
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
PRODUCER MANUFACTURING-3.7%
AGCO 1,350,000 14,175,000
IDEX 500,000 15,187,500
Terex 1,047,000 (a) 19,173,187
48,535,687
RETAIL TRADE-4.5%
American Eagle Outfitters 800,000 (a) 23,850,000
MSC Industrial Direct 1,000,000 (a) 16,250,000
Pacific Sunwear of California 975,000 (a) 12,979,688
Whitehall Jewellers 700,000 (a) 6,300,000
59,379,688
TECHNOLOGY SERVICES-6.2%
BackWeb Technologies 800,000 (a) 14,700,000
First Health Group 600,000 (a) 18,637,500
National Data 700,000 20,562,500
Primus Knowledge Solutions 450,000 (a) 10,603,125
RSA Security 300,000 (a) 17,718,750
82,221,875
TRANSPORTATION-4.4%
Expeditors International of Washington 375,000 18,375,000
SkyWest 385,000 19,129,687
Teekay Shipping 460,000 21,275,000
58,779,687
UTILITIES-2.7%
Kinder Morgan 450,000 16,565,625
Time Warner Telecom, Cl. A 300,000 (a) 19,481,250
36,046,875
TOTAL COMMON STOCKS
(cost $1,020,253,264) 1,258,881,781
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
SHORT-TERM INVESTMENTS--5.5% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
5.76%, 9/14/2000 32,541,000 32,467,783
6.22%, 9/21/2000 26,597,000 26,497,261
5.72%, 10/5/2000 5,065,000 5,035,724
5.69%, 10/12/2000 3,732,000 3,705,988
6.02%, 11/2/2000 833,000 824,229
6.03%, 11/16/2000 2,750,000 2,714,580
6.11%, 11/30/2000 1,371,000 1,350,092
TOTAL SHORT-TERM INVESTMENTS
(cost $72,613,186) 72,595,657
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $1,092,866,450) 100.6% 1,331,477,438
LIABILITIES, LESS CASH AND RECEIVABLES (.6%) (8,481,935)
NET ASSETS 100.0% 1,322,995,503
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 1,092,866,450 1,331,477,43
Cash 820,589
Receivable for shares of Common Stock subscribed 682,091
Dividends receivable 251,227
Prepaid expenses 31,999
1,333,263,344
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 1,286,815
Payable for investment securities purchased 8,249,233
Payable for shares of Common Stock redeemed 446,776
Accrued expenses 285,017
10,267,841
--------------------------------------------------------------------------------
NET ASSETS ($) 1,322,995,53
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 1,064,740,231
Accumulated net realized gain (loss) on investments 19,644,284
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 238,610,988
--------------------------------------------------------------------------------
NET ASSETS ($) 1,322,995,53
--------------------------------------------------------------------------------
SHARES OUTSTANDING
(100 million shares of $.001 par value Common Stock authorized) 32,580,902
NET ASSET VALUE, offering and redemption price per share-Note 3(d) ($) 40.61
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF OPERATIONS
Year Ended August 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Cash dividends (net of $52,544 foreign taxes withheld at source) 4,205,168
Interest 3,268,332
TOTAL INCOME 7,473,500
EXPENSES:
Management fee--Note 3(a) 7,604,288
Shareholder servicing costs--Note 3(b) 2,575,780
Registration fees 246,294
Custodian fees--Note 3(b) 70,917
Professional fees 45,878
Prospectus and shareholders' reports 45,115
Directors' fees and expenses--Note 3(c) 12,593
Loan commitment fees--Note 2 3,720
Miscellaneous 1,440
TOTAL EXPENSES 10,606,025
INVESTMENT (LOSS) (3,132,525)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments 19,844,723
Net unrealized appreciation (depreciation) on investments 177,087,969
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 196,932,692
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 193,800,167
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended August 31,
---------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (3,132,525) (969,411)
Net realized gain (loss) on investments 19,844,723 1,833,877
Net unrealized appreciation (depreciation)
on investments 177,087,969 61,874,481
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 193,800,167 62,738,947
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
NET REALIZED GAIN ON INVESTMENTS (1,063,336) (274,922)
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold 1,278,216,674 292,925,430
Dividends reinvested 958,679 264,081
Cost of shares redeemed (507,540,709) (102,579,858)
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS 771,634,644 190,609,653
TOTAL INCREASE (DECREASE) IN NET ASSETS 964,371,475 253,073,678
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 358,624,028 105,550,350
END OF PERIOD 1,322,995,503 358,624,028
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (SHARES):
Shares sold 34,153,129 10,381,885
Shares issued for dividends reinvested 28,600 11,045
Shares redeemed (13,417,332) (3,800,869)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 20,764,397 6,592,061
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>
Year Ended August 31,
-------------------------------------------------------------------
2000 1999 1998 1997 1996(a
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 30.35 20.20 25.17 18.67 12.50
Investment Operations:
Investment income (loss)--net (.14)(b) (.13)(b) (.16)(b) (.11) .03
Net realized and unrealized
gain (loss) on investments 10.47 10.33 (2.14) 8.02 6.17
Total from Investment Operations 10.33 10.20 (2.30) 7.91 6.20
Distributions:
Dividends from investment income--net -- -- -- -- (.03)
Dividends from net realized
gain on investments (.07) (.05) (2.67) (1.41) --
Total Distributions (.07) (.05) (2.67) (1.41) (.03)
Net asset value, end of period 40.61 30.35 20.20 25.17 18.67
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) 34.07 50.54 (10.82) 44.45 46.09(c,d)
-----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.26 1.38 1.39 1.39 1.16(c)
Ratio of net investment income (loss)
to average net assets (.37) (.49) (.63) (.62) .09(c)
Decrease reflected in above expense
ratios due to undertakings by
The Dreyfus Corporation -- -- -- .09 .36(c)
Portfolio Turnover Rate 76.00 100.40 199.08 197.99 203.66(c)
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 1,322,996 358,624 105,550 104,481 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>
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 nine 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"), 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, which
are sold to existing shareholders without a sales charge. On July 1, 2000, the
fund was closed to new investors. Prior to March 22, 2000, Premier Mutual Fund
Services, Inc. was the distributor.
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 (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.
(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 $38,481 during the period ended August 31, 2000 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, 2000, the fund reclassed $3,132,525 between
accumulated undistributed income-net and 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 $500 million
redemption credit facility (the "Facility" ) to be utilized for temporary or
emergency purposes, including the financing of redemp
tions. 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, 2000, 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 .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, 2000, the fund was charged $2,112,302 pursuant to the Shareholder
Services Plan, of which $1,418,255 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 August 31, 2000, the fund was charged $237,679 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, 2000, the fund was
charged $70,917 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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 25, 2000, each Board member who is not an "affiliated person" as defined
in the Act receives an annual fee of $25,000 and an attendance fee of $4,000 for
each in person meeting 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 fund
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 Emeritus Program Guidelines, Emeritus Board members, if any, receive 50%
of the fund's annual retainer fee and per meeting fee paid at the time the Board
member achieves emeritus status.
(d) A 1% redemption fee is charged and retained by the fund on shares redeemed
within thirty days following the date of issuance, including redemptions made
through the use of the fund's exchange privilege. Prior to June 1, 2000, this
fee was chargeable within fifteen days following the date of issuance of such
shares.
(e) During the period ended August 31, 2000, the fund incurred total brokerage
commissions of $2,292,460, of which $10,302 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 August 31, 2000, amounted to
$1,326,011,349 and $594,360,255, respectively.
At August 31, 2000, accumulated net unrealized appreciation on investments was
$238,610,988, consisting of $289,516,992 gross unrealized appreciation and
$50,906,004 gross unrealized depreciation.
At August 31, 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).
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, 2000,
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 auditing standards generally accepted
in the United States. 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,
2000 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, 2000, 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 accounting principles generally accepted in the United
States.
New York, New York
October 6, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
For Federal tax purposes the fund hereby designates $.0270 per share as a
long-term capital gain distribution of the $.0670 per share paid on December 9,
1999.
The fund also designates 100% of the ordinary dividends paid during the fiscal
year ended August 31, 2000 as qualifying for the corporate dividends received
deduction. Shareholders will receive notification in January 2001 of the
percentage applicable to the preparation of their 2000 income tax returns.
The Fund
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
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 259AR008
================================================================================
Dreyfus
Premier Future Leaders Fund
ANNUAL REPORT August 31, 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
13 Financial Highlights
14 Notes to Financial Statements
19 Report of Independent Auditors
FOR MORE INFORMATION
---------------------------------------------------------------------------
Back Cover
The Fund
Dreyfus Premier Future Leaders Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this report for Dreyfus Premier Future Leaders Fund,
covering the period from the fund's inception on June 30, 2000 through August
31, 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 managers, Paul Kandel and Hilary Woods.
In the 12-month period prior to August 31, 2000, small-cap stocks generally
provided attractive returns. However, the period was also marked by high levels
of volatility and dramatic shifts in investor sentiment. Between September 1999
and March 2000, both small- and large-cap stocks continued to advance, led by
fast-growing technology stocks that, many investors believed, would benefit most
from the "new economy." Subsequently, however, technology stocks of all sizes
corrected sharply over concerns about rising interest rates and extremely high
valuations.
Primarily because of the precipitous drop in technology stock prices,
small-capitalization stocks generally outperformed large-cap stocks during the
period, particularly in the value-oriented segment of the market, a reversal of
the trends established over the past several years. In our view, these
short-term swings in investor sentiment highlight once again the importance of
broad diversification and a long-term perspective for most investors.
We appreciate your confidence in this new fund and look forward to your
continued participation in Dreyfus Premier Future Leaders Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
September 15, 2000
DISCUSSION OF FUND PERFORMANCE
Paul Kandel and Hilary Woods, Portfolio Managers
How did Dreyfus Premier Future Leaders Fund perform relative to its benchmark?
Dreyfus Premier Future Leaders Fund got off to a quick start, providing strong
returns during the two months since its inception on June 30, 2000. Between that
date and August 31, 2000, the fund produced a total return of 14.56% for Class A
shares, 14.40% for Class B shares, 14.40% for Class C shares, 14.56% for Class R
shares, and 14.56% for Class T shares.(1) However, we do not believe the fund
has operated long enough to provide a meaningful comparison to the performance
of its benchmark, the Russell 2000 Index.(2)
We attribute the fund's performance primarily to a rebound in small-cap stocks
following a sharp sell-off in March and April 2000.
What is the fund's investment approach?
The fund invests primarily in a diversified portfolio of small-cap companies
with total market values of less than $1.5 billion 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 companies 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 growth-oriented stocks (those of companies with
earnings that are expected to grow faster than the overall market) ,
value-oriented stocks (those that appear underpriced according to a variety of
financial measurements) , and stocks that exhibit both growth and value
characteristics. We typically diversify the fund's holdings among all economic
sectors represented in the
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
Russell 2000 Index. Depending on market conditions, however, we may emphasize
investments in growth- or value-oriented stocks, or in economic sectors that
appear particularly attractive. We typically sell a stock when the reasons for
buying it no longer apply, when we believe that it has approached its full value
or when the company begins to show deteriorating fundamentals or poor relative
performance.
What other factors influenced the fund's performance?
When we launched Dreyfus Premier Future Leaders Fund, equity markets in general
-- and the small-cap market in particular -- were experiencing heightened
uncertainty and volatility. While the U.S. economy remained strong, rising
interest rates and fuel prices undermined investor confidence in future growth.
As a result, most market indices stood at substantially lower levels in July
2000 than they had at the beginning of the year.
We took advantage of these conditions by establishing positions in leading
small-cap stocks that had suffered declines earlier in the year. In the health
care sector, we found some of our best performers among fast-growing
biotechnology companies and producers of generic drugs. Many of these stocks
benefited from a sector rotation among growth investors from what had become, in
retrospect, a fully valued technology sector. We also found attractively priced
investment opportunities among beaten-down technology stocks, particularly in
the communications and semiconductor industries. These stocks contributed to the
fund's strong performance as they bounced back from the lows established earlier
in 2000. Finally, we scored successes with several investments among
manufacturers in the aerospace and transportation industries.
We enjoyed less success with our investments in the energy and consumer industry
groups. Supported by rapidly rising prices for oil and gas, many energy stocks
had already reflected strong fundamentals by
the time the fund was launched. Many of our holdings declined in July before
resuming their advance in August. Among consumer stocks, a few of our individual
holdings delivered disappointing earnings, which negatively impacted stock
prices.
What is the fund's current strategy?
As of the end of the reporting period, the fund remained more heavily exposed
than our benchmark to the health care and energy sectors. We maintained a
lighter than average position in materials and processing stocks and producer
durables.
We view Dreyfus Premier Future Leaders Fund as an "all weather" fund. By
building a diversified portfolio with exposure to both growth and value stocks,
and to all economic sectors represented in the Russell 2000 Index, we seek to
offer a broadly based small-cap investment vehicle.
September 15, 2000
(1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID
AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGE IN THE
CASE OF CLASS A AND CLASS T 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. RETURN FIGURES
PROVIDED REFLECT THE ABSORPTION OF FUND EXPENSES BY THE DREYFUS CORPORATION
PURSUANT TO AN AGREEMENT IN EFFECT THROUGH AUGUST 31, 2001, AT WHICH TIME IT MAY
BE EXTENDED, TERMINATED OR MODIFIED. HAD THESE EXPENSES NOT BEEN ABSORBED, THE
FUND'S RETURNS WOULD HAVE BEEN LOWER.
(2) REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN
DISTRIBUTIONS. THE RUSSELL 2000 INDEX IS AN UNMANAGED INDEX OF SMALL-CAP STOCK
PERFORMANCE AND IS COMPOSED OF THE 2,000 SMALLEST COMPANIES IN THE RUSSELL 3000
INDEX. THE RUSSELL 3000 INDEX IS COMPOSED OF THE 3,000 LARGEST U.S. COMPANIES
BASED ON TOTAL MARKET CAPITALIZATION.
The Fund
STATEMENT OF INVESTMENTS
STATEMENT OF INVESTMENTS
<TABLE>
August 31, 2000
COMMON STOCKS--96.1% Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL SERVICES--1.2%
Earthgrains 3,200 56,400
CONSUMER NON-DURABLES--1.4%
Kenneth Cole Productions, Cl. A 1,500 (a) 66,094
CONSUMER SERVICES--5.1%
Mandalay Resort Group 2,500 (a) 69,531
Radio One 2,300 48,444
Scholastic 1,000 (a) 64,187
Station Casinos 4,500 (a) 64,688
246,850
ELECTRONIC TECHNOLOGY--20.4%
Avocent 1,500 (a) 72,937
Aware 1,500 (a) 67,219
Catapult Communications 5,100 (a) 91,800
DDi 2,300 (a) 87,687
DONCASTERS, ADS 4,400 (a) 84,700
Elantec Semiconductor 1,000 (a) 88,500
Integrated Silicon Solution 3,000 (a) 88,125
MCK Communications 3,000 (a) 86,250
Microsemi 2,000 (a) 84,500
Robotic Vision Systems 6,100 (a) 77,394
Tollgrade Communications 700 (a) 77,831
Vicor 1,900 (a) 82,888
989,831
ENERGY MINERALS--2.8%
Newpark Resources 6,500 (a) 66,625
Unit 4,500 (a) 70,313
136,938
FINANCE--13.9%
AmeriCredit 3,000 (a) 82,875
Annuity and Life Re 2,500 65,625
Brown & Brown 2,400 64,050
Commerce Bancorp 1,500 77,531
Cullen/Frost Bankers 2,000 62,000
Everest Re Group 1,500 60,375
First Midwest Bancorp 2,500 64,531
LaSalle Re Holdings 3,500 63,438
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
FINANCE (CONTINUED)
RenaissanceRe Holdings 1,400 67,025
Southwest Bancorporation of Texas 2,200 (a) 63,938
671,388
HEALTH SERVICES--1.3%
Orthodontic Centers of America 2,000 (a) 65,500
HEALTH TECHNOLOGY--15.5%
Alpharma, Cl. A 1,200 67,950
Barr Laboratories 1,000 (a) 71,000
CIMA Labs 2,200 (a) 91,025
Cell Therapeutics 2,300 (a) 106,950
Cubist Pharmaceuticals 1,300 (a) 79,462
Dura Pharmaceuticals 2,700 (a) 74,419
Matrix Pharmaceutical 5,000 (a) 73,125
Neurocrine Biosciences 2,000 (a) 82,750
XOMA 8,500 (a) 103,063
749,744
INDUSTRIAL SERVICES--2.6%
Marine Drilling 2,700 (a) 73,406
Tetra Tech 1,900 (a) 51,538
124,944
PROCESS INDUSTRIES--5.5%
Cytec Industries 2,500 (a) 83,437
Ivex Packaging 5,500 (a) 60,500
Methanex 9,700 (a) 58,200
Olin 4,000 66,000
268,137
PRODUCER MANUFACTURING--2.5%
IDEX 1,800 54,675
Teledyne Technologies 3,300 (a) 66,413
121,088
RETAIL TRADE--6.4%
Abercrombie & Fitch, Cl. A 3,500 (a) 81,156
Bebe Stores 5,500 (a) 86,281
Men's Wearhouse 2,500 (a) 76,250
Neiman Marcus Group, Cl. A 2,000 (a) 67,125
310,812
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
COMMON STOCKS (CONTINUED) Shares Value ($)
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY SERVICES--7.5%
Aspen Technology 1,800 (a) 82,687
LifePoint Hospitals 2,500 (a) 75,312
National Data 2,500 73,438
Netegrity 800 (a) 70,400
Rightchoice Managed Care, Cl. A 3,000 (a) 59,250
361,087
TRANSPORTATION--3.2%
Atlantic Coast Airlines Holdings 2,500 79,375
OMI 10,000 (a) 75,000
154,375
UTILITIES--6.8%
Advanced Power Technology 3,000 (a) 83,250
Clarent 1,400 (a) 66,850
IPALCO Enterprises 1,500 34,969
Minnesota Power 2,000 44,375
OGE Energy 2,000 42,750
Western Gas Resources 2,700 59,231
331,425
TOTAL COMMON STOCKS
(cost $4,027,189) 4,654,613
------------------------------------------------------------------------------------------------------------------------------------
Principal
SHORT-TERM INVESTMENTS--.6% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS:
6.25%, 9/21/2000 7,000 6,974
6.03%, 11/2/2000 22,000 21,768
TOTAL SHORT-TERM INVESTMENTS
(cost $28,747) 28,742
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $4,055,936) 96.7% 4,683,355
CASH AND RECEIVABLES (NET) 3.3% 159,738
NET ASSETS 100.0% 4,843,093
(A) NON-INCOME PRODUCING.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of Investments 4,055,936 4,683,355
Cash 60,492
Receivable for shares of Common Stock subscribed 94,785
Receivable for investment securities sold 54,111
Dividends receivable 2,758
Prepaid expenses 38,881
4,934,382
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 3,472
Payable for investment securities purchased 67,925
Accrued expenses 19,892
91,289
--------------------------------------------------------------------------------
NET ASSETS ($) 4,843,093
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 4,331,322
Accumulated net realized gain (loss) on investments (115,648)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3 627,419
--------------------------------------------------------------------------------
NET ASSETS ($) 4,843,093
<TABLE>
NET ASSET VALUE PER SHARE
Class A Class B Class C Class R Class T
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets ($) 877,196 851,856 921,595 1,734,339 458,107
Shares Outstanding 61,241 59,570 64,426 121,102 32,000
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE ($) 14.32 14.30 14.30 14.32 14.32
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
From June 30, 2000 (commencement of operations) to August 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INCOME:
Interest 5,802
Cash dividends 3,128
TOTAL INCOME 8,930
EXPENSES:
Management fee--Note 2(a) 4,961
Auditing fees 15,000
Registration fees 13,938
Custodian fees--Note 2(c) 2,697
Prospectus and shareholders' reports 2,600
Distribution fees--Note 2(b) 1,810
Shareholder servicing costs--Note 2(c) 1,209
Legal fees 900
Directors' fees and expenses--Note 2(d) 106
Miscellaneous 142
TOTAL EXPENSES 43,363
Less-expense reimbursement from The Dreyfus Corporation
due to undertaking--Note 2(a) (32,251)
NET EXPENSES 11,112
INVESTMENT (LOSS) (2,182)
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 3 ($):
Net realized gain (loss) on investments (115,648)
Net unrealized appreciation (depreciation) on investments 627,419
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 511,771
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 509,589
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
From June 30, 2000 (commencement of operations) to August 31, 2000
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment (loss) (2,182)
Net realized gain (loss) on investments (115,648)
Net unrealized appreciation (depreciation) on investments 627,419
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 509,589
--------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 774,653
Class B shares 759,318
Class C shares 834,718
Class R shares 1,575,337
Class T shares 400,000
Cost of shares redeemed:
Class A shares (54)
Class C shares (10,468)
INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL STOCK TRANSACTIONS 4,333,504
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,843,093
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period --
END OF PERIOD 4,843,093
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
From June 30, 2000 (commencement of operations) to August 31, 2000
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A
Shares sold 61,245
Shares redeemed (4)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 61,241
--------------------------------------------------------------------------------
CLASS B
SHARES SOLD 59,570
--------------------------------------------------------------------------------
CLASS C
Shares sold 65,233
Shares redeemed (807)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 64,426
--------------------------------------------------------------------------------
CLASS R
SHARES SOLD 121,102
--------------------------------------------------------------------------------
CLASS T
SHARES SOLD 32,000
SEE NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
The following table describes the performance for each share class for the
period from June 30, 2000 (commencement of operations) to August 31, 2000. All
information (except portfolio turnover rate) reflects financial results for a
single fund share. Total return shows how much your investment in the fund would
have increased (or decreased) during the period. These figures have been derived
from the fund's financial statements.
<TABLE>
Class A Class B Class C Class R Class T
Shares Shares Shares Shares Shares
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA ($):
Net asset value, beginning of period 12.50 12.50 12.50 12.50 12.50
Investment Operations:
Investment (loss) (a) .00(b) (.02) (.02) .00(b) (.01)
Net realized and unrealized gain
(loss) on investments 1.82 1.82 1.82 1.82 1.83
Total from Investment Operations 1.82 1.80 1.80 1.82 1.82
Net asset value, end of period 14.32 14.30 14.30 14.32 14.32
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%) (D) 14.56(c) 14.40(c) 14.40(c) 14.56 14.56(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to
average net assets (d) .30 .43 .43 .26 .35
Ratio of net investment income (loss)
to average net assets (d) (.03) (.16) (.16) .02 (.05)
Decrease reflected in above expense
ratios due to undertaking by
The Dreyfus Corporation (d) 1.12 1.13 1.21 .62 1.12
Portfolio Turnover Rate (d) 47.50 47.50 47.50 47.50 47.50
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ X 1,000) 877 852 922 1,734 458
(A) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END.
(B) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE.
(C) EXCLUSIVE OF SALES CHARGE.
(D) NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
NOTES TO FINANCIAL STATEMENTS
NOTE 1--Significant Accounting Policies:
Dreyfus Premier Future 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 nine series, including the fund, which commenced operations
on June 30, 2000. 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"), which is a wholly-owned
subsidiary of Mellon Financial Corporation. Dreyfus Service Corporation (the
"Distributor") is the distributor of the fund's shares.
The fund is authorized to issue 500 million shares 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. Class B
shares automatically convert to Class A shares after six years. Other
differences between the classes include the services offered to and the expenses
borne by each class and certain voting rights.
As of August 31, 2000, MBIC Investment Corp., an indirect subsidiary of Mellon
Financial Corporation, held 160,000 shares of the fund.
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) 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 $1,515 during the period ended August 31, 2000 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
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 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, 2000 the fund reclassed $2,182 between
accumulated undistributed income-net and paid-in capital. Net assets were not
affected by this reclassification.
NOTE 2--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. The Manager has undertaken from June
30, 2000 through August 31, 2001 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 fees, interest on borrowings,
Distribution Plan fees, Shareholder Service Plan fees and extraordinary
expenses, exceed an annual rate of 1.50% of the value of the fund's average
daily net assets. The expense reimbursement, pursuant to the undertaking,
amounted to $32,251 during the period ended August 31, 2000.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the Distributor for distributing
their shares at an annual rate of .75 of 1% of the value of the average daily
net assets of Class B and Class C shares, respectively, and .25 of 1% of the
value of the average daily net assets of Class T shares. During the period ended
August 31, 2000, Class B, Class C and Class T shares were charged $769, $861 and
$180 respectively, pursuant to the 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 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, 2000, Class A, Class B, Class C and Class T
shares were charged $288, $256, $287 and $180, 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, 2000, the fund was charged $104 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, 2000, the fund was
charged $2,697 pursuant to the custody agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Each Board member who is not
an "affiliated person" as defined in the Act receives an annual fee of $25,000
and an attendance fee of $4,000 for each in person meeting 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.
Subject to the fund's 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 achieves emeritus status.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended August 31, 2000, amounted to
$5,900,477 and $1,758,587, respectively.
At August 31, 2000, accumulated net unrealized appreciation on investments was
$627,419, consisting of $657,543 gross unrealized appreciation and $30,124 gross
unrealized depreciation.
At August 31, 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).
REPORT OF INDEPENDENT AUDITORS
Shareholders and Board of Directors Dreyfus Premier Future Leaders Fund
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Dreyfus Premier Future Leaders Fund (one of the
Series constituting Dreyfus Growth and Value Funds, Inc.) as of August 31, 2000,
and the related statements of operations and changes in net assets and financial
highlights for the period from June 30, 2000 (commencement of operations) to
August 31, 2000. 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 auditing standards generally accepted
in the United States. 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,
2000 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 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 Premier Future Leaders Fund at August 31, 2000, and the results of its
operations, the changes in its net assets and the financial highlights for the
period from June 30, 2000 to August 31, 2000, in conformity with accounting
principles generally accepted in the United States.
New York, New York
October 6, 2000
The Fund
For More Information
Dreyfus Premier Future 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
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
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) 2000 Dreyfus Service Corporation 522AR008
