<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
STATEMENT OF INVESTMENTS NOVEMBER 30, 1995 (UNAUDITED)
COMMON STOCKS-96.3% SHARES VALUE
______ ______
<S> <C> <C>
AUSTRALIA-3.6% Hardie (James) Industries.............. 40,000 $ 65,890
Renison Goldfields Consolidated........ 25,447 117,066
_____
182,956
_____
AUSTRIA-2.0% OEMV A.G............................... 1,250 102,775
_____
FRANCE-8.3% Credit Lyonnais........................ (a) 2,600 151,931
Nord Est............................... 5,600 130,783
Vallourec Usines a Tubes de Lorraine Escaut (a) 3,600 136,882
_____
419,596
_____
HONG KONG-3.0% Orient Overseas International.......... 260,000 152,110
_____
ITALY-4.2% Avir Finanziaria S.P.A................. 16,000 100,063
Edison S.P.A........................... 28,700 114,692
_____
214,755
_____
JAPAN-27.8% All Nippon Airways...................... 10,000 98,039
Alps Electric.......................... (a) 7,000 75,490
Asahi Organic Chemicals Industry....... 10,000 75,490
Daikin Industries...................... 10,000 90,196
Daiwa Danchi........................... (a) 16,000 79,216
Hamada Printing Press.................. (a) 12,000 83,294
Japan Central Real Estate.............. (a) 20,000 30,588
Kawasaki Steel......................... 10,000 35,392
Kioritz................................ (a) 22,000 62,333
Mitsukoshi............................. 10,000 88,039
Nikko Securities....................... 7,000 76,863
Nintendo............................... 2,000 156,863
Okamura................................ 12,000 85,647
Olympus Optical........................ 8,000 76,079
Shintom................................ (a) 12,000 52,353
Shinwa Kaiun Kaisha.................... (a) 26,000 68,824
Tosoh.................................. (a) 25,000 114,706
Unitika................................ (a) 22,000 59,961
_____
1,409,373
_____
MEXICO-2.3% Grupo Financiero Bancomer S.A., Ser. B.. (a) 130,000 35,957
Grupo Financiero Serfin S.A., A.D.R..... (a) 7,000 28,875
Transportacion Maritima Mexicana S.A., A.D.R. (a) 7,000 53,375
_____
118,207
_____
SOUTH AFRICA-0.0% Penrose Holdings....................... (a) 400,000 0
_____
SPAIN-13.2% Banco Central Hispanoamericano S.A..... 12,500 255,878
El Aguila S.A.......................... (a) 10,000 63,964
Espanola de Tubos Por Extrusion S.A.... (a) 160,002 197,165
Hullas Del Coto Cortes................. 15,000 154,439
_____
671,446
_____
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
SWITZERLAND-7.2% Compagnie Financiere Michelin.......... (a) 300 $ 135,147
Swisslog Holding A.G................... 350 102,634
Zellweger Luwa A.G..................... (a) 140 127,327
_____
365,108
_____
UNITED KINGDOM-23.4% APV PLC................................ 65,000 80,555
BET PLC................................ 50,000 96,390
BICC................................... 40,000 173,502
Booker PLC............................. 12,000 65,178
British Steel PLC...................... 45,000 116,184
Costain Group PLC...................... (a) 70,000 78,183
First Choice Holidays PLC.............. 75,000 67,702
Lucas Industries PLC................... 40,000 113,220
MTM PLC................................ 100,000 102,510
Spring Ram PLC......................... 400,000 110,160
TSB Group PLC.......................... 29,000 180,808
_____
1,184,392
_____
UNITED STATES-1.3% Amax Gold.............................. (a) 10,000 63,750
_____
TOTAL COMMON STOCKS
(cost $5,711,451).................... $4,884,468
=====
PRINCIPAL
SHORT-TERM INVESTMENTS-1.4% AMOUNT
______
U.S. TREASURY BILLS: 5.42%, 12/21/95........................ $ 21,000 $ 20,935
6.86%, 1/11/96......................... 51,000 50,687
_____
TOTAL SHORT-TERM INVESTMENTS
(cost $71,632)....................... $ 71,622
=====
TOTAL INVESTMENTS (cost $5,783,083) 97.7% $4,956,090
===== =====
CASH AND RECEIVABLES (NET).................................................. 2.3% $ 118,017
===== =====
NET ASSETS.................................................................. 100.0% $5,074,107
===== =====
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See independent accountant's review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $5,783,083)-see statement....................................... $4,956,090
Receivable for investment securities sold............................... 179,389
Dividends and interest receivable....................................... 16,968
Prepaid expenses........................................................ 60,904
Due from The Dreyfus Corporation........................................ 3,135
_____
5,216,486
LIABILITIES:
Due to the Distributor.................................................. $ 2,090
Payable for investment securities purchased............................. 112,760
Accrued expenses and other liabilities.................................. 27,529 142,379
_____ _____
NET ASSETS ................................................................ $5,074,107
=====
REPRESENTED BY:
Paid-in capital......................................................... $6,135,191
Accumulated investment (loss)_net...................................... (7,713)
Accumulated net realized (loss) on investments and
foreign currency transactions......................................... (226,030)
Accumulated net unrealized (depreciation) on investments
and foreign currency transactions..................................... (827,341)
_____
NET ASSETS at value applicable to 494,353 shares outstanding
(300 million shares of $.001 par value Common Stock authorized)......... $5,074,107
=====
NET ASSET VALUE, offering and redemption price per share
($5,074,107 / 494,353 shares)........................................... $10.26
=====
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED NOVEMBER 30, 1995 (UNAUDITED)
INVESTMENT INCOME:
<S> <C> <C>
INCOME:
Cash dividends (net of $7,201 foreign taxes withheld at source)....... $ 47,950
Interest.............................................................. 7,104
_____
TOTAL INCOME...................................................... $ 55,054
EXPENSES:
Management fee-Note 2(a).............................................. 19,545
Shareholder servicing costs-Note 2(b,c)............................... 20,093
Legal fees............................................................ 12,868
Directors' fees and expenses-Note 2(d)................................ 12,581
Registration fees..................................................... 11,030
Auditing fees......................................................... 9,019
Organization expenses................................................. 7,300
Custodian fees........................................................ 4,528
Prospectus and shareholders' reports-Note 2(b)........................ 3,819
Miscellaneous......................................................... 1,074
_____
TOTAL EXPENSES.................................................... 101,857
Less-expense reimbursement from Manager due to
undertaking-Note 2(a)............................................. 39,090
_____
NET EXPENSES...................................................... 62,767
_____
INVESTMENT (LOSS)-NET............................................. (7,713)
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments and foreign currency
transactions-Note 3(a)................................................ $ (83,814)
Net unrealized (depreciation) on investments and foreign
currency transactions................................................. (78,631)
_____
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS..................... (162,445)
_____
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $(170,158)
=====
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
MAY 31, NOVEMBER 30, 1995
1995* (UNAUDITED)
______ ___________
<S> <C> <C>
OPERATIONS:
Investment income (loss)-net........................................... $ 41,131 $ (7,713)
Net realized (loss) on investments..................................... (142,216) (83,814)
Net unrealized (depreciation) on investments for the period............ (748,710) (78,631)
_____ _____
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............... (849,795) (170,158)
_____ _____
DIVIDENDS TO SHAREHOLDERS:
From investment income-net............................................. (41,131) __
In excess of investment income-net..................................... (6,134) --
From paid-in capital................................................... (33,255) --
_____ _____
TOTAL DIVIDENDS...................................................... (80,520) --
_____ _____
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 6,000,000 --
Dividends reinvested................................................... 74,580 --
_____ _____
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS............... 6,074,580 --
_____ _____
TOTAL INCREASE (DECREASE) IN NET ASSETS.......................... 5,144,265 (170,158)
NET ASSETS:
Beginning of period-Note 1............................................. 100,000 5,244,265
_____ _____
End of period (including investment income (loss)-net; $(7,713) at
November 30, 1995)................................................... $5,244,265 $5,074,107
===== =====
SHARES SHARES
_____ _____
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 480,000 --
Shares issued for dividends reinvested................................. 6,353 --
_____ _____
TOTAL INCREASE IN SHARES OUTSTANDING................................. 486,353 --
===== =====
* From June 29, 1994 (commencement of operations) to May 31, 1995.
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED SIX MONTHS ENDED
MAY 31, NOVEMBER 30, 1995
PER SHARE DATA: 1995(1) (UNAUDITED)
______ ___________
<S> <C> <C>
Net asset value, beginning of period................................ $12.50 $10.61
___ ___
INVESTMENT OPERATIONS:
Investment income (loss)-net........................................ .09 (.02)
Net realized and unrealized (loss) on investments................... (1.81) (.33)
___ ___
TOTAL FROM INVESTMENT OPERATIONS.............................. (1.72) (.35)
___ ___
DISTRIBUTIONS:
Dividends from investment income-net................................ (.09) --
Dividends in excess of investment income-net........................ (.01) --
Dividends from paid-in capital...................................... (.07) --
___ ___
TOTAL DISTRIBUTIONS........................................... (.17) --
___ ___
Net asset value, end of period...................................... $10.61 $10.26
=== ===
TOTAL INVESTMENT RETURN................................................. (13.93%)(2) (3.30%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. .70%(2) 1.20%(2)
Ratio of net investment income (loss) to average net assets......... .72%(2) (.15)%(2)
Decrease reflected in above expense ratio due to undertaking by Dreyfus 1.98%(2) .75%(2)
Portfolio Turnover Rate............................................. 28.95%(2) 18.83%(2)
Net Assets, end of period (000's Omitted)........................... $5,244 $5,074
(1) From June 29, 1994 (commencement of operations) to May 31, 1995.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a non-diversified open-end management investment company. The Dreyfus
Corporation ("Dreyfus ") serves as the Fund's Investment adviser. M&G
Investment Management Limited ("M&G") serves as the Fund's sub investment
adviser. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Distributor, located at One Exchange
Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc.,
the parent company of which is Boston Institutional Group, Inc. Dreyfus is a
direct subsidiary of Mellon Bank, N.A.
As of November 30, 1995, Major Trading Corporation, a subsidiary of
Mellon Bank Investments Corporation and M&G, held 251,486 and 242,867 shares
of the Fund respectively. Mellon Bank Investments Corporation is a subsidiary
of Mellon Bank.
(A) PORTFOLIO VALUATION: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(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, 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.
(D) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net and dividends from net realized
capital gain, if any, are normally declared and paid annually, but the Fund
may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code. 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.
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(E) 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 Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-INVESTMENT ADVISORY FEE, SUB-INVESTMENT ADVISORY FEE AND OTHER
TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a Management Agreement with Dreyfus, the management fee
is computed at the annual rate of .75 of 1% of the average daily value of the
Fund's net assets and is payable monthly. Dreyfus and M&G have agreed that
if in any full fiscal year the Fund's aggregate expenses, exclusive of
interest, taxes, brokerage and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund, Dreyfus and M&G
will bear the excess expense in proportion to their management fee and
sub-advisory fee to the extent required by state law. The most stringent
state expense limitation applicable to the Fund presently requires
reimbursement of expenses in any full fiscal year that such expenses
(exclusive of distribution expenses and certain expenses as described above)
exceed 2 1/2% of the first $30 million, 2% of the next $70 million and 1 1/2%
of the excess over $100 million of the average value of the Fund's net assets
in accordance with California "blue sky" regulations.
Dreyfus has currently undertaken from January 1, 1995 to November 30,
1995 to waive receipt of the management, service and distribution fees. The
expense reimbursement pursuant to the undertaking amounted to $39,090 for the
six months ended November 30, 1995.
Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and M&G,
the sub advisory fee is computed at the annual rate of .30 of 1% of the
average daily value of the Fund's net assets and is payable monthly by
Dreyfus and not the Fund.
Effective December 1, 1995, Dreyfus Transfer, Inc., a wholly-owned
subsidiary of the Dreyfus Corporation, serves as the Fund's Transfer and
Dividend Disbursing Agent.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund (a) reimburses the Distributor for payments to certain Service
Agents for distributing the Fund's shares and (b) pays the Manager, Dreyfus
Service Corporation and any affiliate of either of them for advertising and
marketing relating to the Fund, at an aggregate annual rate of .50 of 1% of
the value of the Fund's average daily net assets. The Distributor may pay one
or more Service Agents in respect of distribution services. The Distributor
determines the amounts, if any, to be paid to Service Agents under the Plan
and the basis on which such payments are made. The fees payable under the
Plan are payable without regard to actual expenses incurred. The Plan also
separately provides for the Fund to bear the costs of preparing, printing and
distributing certain of the Fund's prospectuses and statements of additional
information and costs associated with implementing and operating the Plan,
not to exceed the greater of $100,000 or .005 of 1% of the Fund's average
daily net assets for any full fiscal year. During the six months ended
November 30, 1995, $13,030 was charged to the Fund pursuant to the Plan and
reimbursed by Dreyfus.
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(C) Pursuant to the Fund's Shareholder Services Plan, the Fund pays the
Distributor an annual rate of .25 of 1% of the value
of the Fund's average daily net assets for servicing shareholder accounts.
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. For the six months ended November 30,
1995, $6,515 was charged to the Fund by the Distributor pursuant to the
Shareholder Services Plan and reimbursed by Dreyfus.
(D) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short term securities, during the six months ended November 30,
1995 amounted to $1,158,353 and $919,905, respectively.
(B) At November 30, 1995, accumulated net unrealized depreciation on
investments was $826,993, consisting of $322,884 gross unrealized
appreciation and $1,149,877 gross unrealized depreciation, excluding foreign
currency transactions.
At November 30, 1995, 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).
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus International Recovery Fund, Inc., including the statement of
investments, as of November 30, 1995, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended November 30, 1995. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets and financial
highlights for the period from June 29, 1994 (commencement of operations) to
May 31, 1995 and in our report dated June 29, 1995, we expressed an
unqualified opinion on such statement of changes in net assets and financial
highlights.
[Ernst and Young LLP signature logo]
New York, New York
January 5, 1996
[Dreyfus lion "d" logo]
DREYFUS INTERNATIONAL RECOVERY FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
SUB-INVESTMENT ADVISER
M&G Investment Management Limited
7th Floor
3 Minster Court
Great Tower Street
London, EC3R 7XH, England
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 096SA9511
[Dreyfus logo]
International
Recovery
Fund, Inc.
Semi-Annual
Report
November 30, 1995
